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HomeMy WebLinkAbout1995-03-15 95-139 ORDERCo .ul Action Dme Item No.95_}99_ Authorizing the City Manager to Execute a Grant Agreement with Item/Subject the U.S. Environmental Protection Agency for Sewage Sludge Management and Disposal Responsible Department Engineering Commentary: On 1/23/95, Council Order 95-91 was passed authorizing the City Manager to submit a Grant Application to DSEPA in the amount of $6 million for construction of a s€8dge management and disposal facility. On 2/27/95 an agreement document w received from EPA which requires execution by the City of Bangor. As the Council is aware, the City will be evaluating all options, including long term private disposal contracts before proceeding with construction of a w City facility. An BIT has been issued to solicit contracted disposal proposals. Proposals are due on 4/05/95. Execution of the Grant Agreement will not obligate the City to construct a new facility of expend funds, but is essential in order to preserve grant availibility. This has been confirmed by Jame Lord. who is EPA's contact person on this project. Attached is copy of the Grant Agreement and also a emorandum,from the Assistant City Solicitor regarding this issue. - MpumnmtHnd Managers Comments: -"r � _' �g dote((liip^^�/"r9" O-.-"° ,Bf�-p'fM�` j � � Tm6lEA]dd .Oddi, GA (,��UCL""Ye11�0nNMAAAI-�•ew, n n,n (ice `O �U Ipyli`s,an- 1LlX City Mamgw Abonwusl Infornommorr Budget Approval OW I\ Finc en;.a Legal Approval: �tySoli Int uced For Pines" gFirst Rending Page —of ❑Referral - 95-139 Assigned to Councibr Soucy March 15, 1995 d CITY OF BANGOR (TITLE.) Mrbtr, Authorizing, the City Muwger to, Execute a Grant. Agreement with the U.S. Environmental Protection Agency for Sewage Sludge Managenent and BY the C(ry Cownafl of CRY Of Remove. ORDEREDr TWT the City Manager is hereby authorized and directed to execute a Grant Agreement with the United States Environmental Protection Agency for a grant of $6,000,000.00 for "Wastewater Treatment Improvements Relating to Sewage Sludge Management and Disposal." IN CIY COUNCIL March 15. 1995 Passed C TY CL8 w- 95-139 ORDER Title, Authorizing the City Manager to Eeecute e ........ree-.;........................ Crant Agie 4av vifM1 TSe U.S. lodge eel Wd WEion Agency for Sewage Sludge Management �• � c JAuipied to U.......... 95-139 MEMORANDUM TO: Jim Ring, City Engineer Erik M. Stumpfel, City Solicitor Sohn dunye Director A. Bar Edward A. Barr Se Manager FRAM: Bruce N. Shib e St. City Solicitor RE: Grant Acceptance Obligations - Sludge Management and Disposal Date: March 1, 1995 At Jim Ring's request, I have reviewed the EPA Assistance Agreement ($ XP991336-01-0), dated February 2, 1995 (copy attached), and received by the City on February 27, 1995. I have also reviewed the City's application, dated January 24, 1995, which includes amendments requested by the EPA. Based on this review, I offer my opinion as to the City's obligations should the Grant documentation be executed: 1.) The application contained a specific assurance clause i that the City would " nftiate and complete the work within the applicable time frame after receipt of approval of the awarding agency". However, there was note in the assurances section of the application which states "[c]Strain of these assurances may not be applicable to your project or program ' 2.) There are 15 specific award conditions in the Assistance Agreement. None of these conditions specifically require that the City go forward with building a City composting facility after execution of the Agreement. Nor is there any penalty provision in the Assistance Agreement if the City does not go forward with building such a facility. whether favorable action on future grant applications will be adversely affected by acceptance of the grant and then not following through with building the facility is beyond the scope of this memorandum. 3.) The Agreement does contain a condition "that no grant eligible funds [shall] be expended until the local share of the project has been duly appropriated and EPA has been notified of such action". This local process and EPA notification has to be completed within one year of February 2, 1995. Council Order k95-84, passed on February 13, 1995, authorizing the $5 million bond issuance, also appropriated those 95-139 -2- funds for this project. An attested copy of the Council Order was faxed to EPA soon after passage, followed by a mailing of the same. Therefore, this condition has been met. 4.) EPA might argue that this condition also requires that the City start using grant funds within that same one year period or risk forfeiture of the grant funds. Because the project period is designated a running from February 3, 1995 until June 30, 1998, however, this potential argument is unlikely to prevail. 5.) what is clear is that if the City does not execute and return the Assistance Agreement within three (3) weeks of its receipt, there i risk that the EPA will reverse its award decision 6.) The Appropriations Act of 1995 (P.L. 103-327) directed that the grant funds be used for water infrastructure projects. In Bangor's case, this project is to be for 'wastewater treatment improvements relating to sewage sludge management and disposal." This is a broader ecategory than the Assistance Agreement description of the project as a "Facility for Sewage Sludge Management and Disposal." Patricia O'Leary, designated as the EPA Grants Specialist, has confirmed that the broader designation will apply based on what Bangor determines is in Bangor's best interest. This suggests that any capital improvements, including new transport trucks or containers, could be paid for with Grant funds, so long as such improvements are related to sewage sludge management and disposal. 7.) other Grant conditions are fairly standard, but the City will need to keep track of them to insure compliance. These include financial and project reporting requirements used federal forms, using recycled paper for report documents submitted to EPA, 4i minority business enterprise and 4k women business enterprise on the total of all prime contracts and subcontracts awarded, solicitation of rural small business entities for project work, preference for use of recycled products on the project pursuant to EPA guidelines, compliance with the National Environmental Policy Act prior to award or advertisement of final design or construction or construction contract, submission of plans and specs to U.S. Corps of Engineers (biddability/constructability review) and Maine DEP (state requirement review), and prior EPA approval for any substantive deviation from the project scope. The City will not have to comply with Davis -Bacon wage requirements. In keeping with the City's strategy on this issue, Council Order(s) authorizing the City Manager to execute the Acceptance Agreement and creating accounts for the funds should be prepared for the March 15, 1995 Council Meeting. Passage should he strongly recommended so that the City's options remain open with regard to. the City's sludge disposal issues. Please feel free to contact me if you have any questions. Thank you for your time and consideration. BNS/red Attachments