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.
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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
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