HomeMy WebLinkAbout#09 - Operational Capacity GrantSTAFF REPORT
DATE: January 2, 2019
CONSENT
AGENDA ITEM: Operational Capacity Grant for 3M Subgroups
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
In February 2018 the State of Minnesota reached a settlement with 3M Company related to PFAS
(formerly called PFCs). Workgroups were formed in July 2018 to begin planning for how to allocate
funds amongst a number of communities in the east metro, mainly in Washington County. Subgroups of
technical experts began meeting in December 2018 to put information together to inform the
recommendations of the subgroup. Some cities and townships expressed concern about the cost of having
someone (consultant or staff) attend the subgroup meetings and do the technical work. As a result, the
state (MPCA) is offering each community up to $25,000 for reimbursement of costs associated with the
subgroup work. A contract will need to be approved before the city can be reimbursed.
ISSUE BEFORE COUNCIL:
Who should the Council approve the Operational Capacity Grant with MPCA?
PROPOSAL:
Included in your packet is a copy of the grant agreement that was sent to all of the communities in
December. The state will reimburse each community up to $25,000 from December 1, 2018 to December
31, 2019 for participation in subgroups. This is limited to participation in the 3M subgroup meetings,
preparation for 3M subgroup meetings, completion of follow-up tasks, and performance of limited technical
work, including hiring of contractors, require for meeting preparation and participation. Funds cannot be
used to plan or design individual municipal water treatment or delivery systems. The later would be covered
later once preferred alternatives are selected.
I have been designated as the authorized representative for the city for the purposes of submitting the
invoices. The grant agreement lays out the time period for which invoices must be submitted.
Our appointed representatives to the Drinking Water Supply Group is City Engineer Jack Griffin (primary)
and Public Works Director Rob Weldon (alternate). The City will be essentially submitting copies of the
Focus invoices related to this task to the state for reimbursement within 45 days after the end of each period.
FISCAL IMPACT:
With the subgroups meeting at least monthly, we anticipate that all of the City’s cost from Focus’
attendance, preparation and follow up will be covered by the grant as it is not expected to exceed $25,000.
RECOMMENDATION:
If removed from the consent agenda:
“Motion to approve the Operational Capacity Grant with MPCA.”
ATTACHMENT:
• Operational Capacity Grant
Grant Agreement
State of Minnesota
Doc Type: Contract/Grant Reference
SWIFT Contract Number: 150592
Purchase Order Number: 3000022855
AI: 90810
Activity ID PRO20180002
This grant agreement is between the state of Minnesota, acting through its Commissioner of the Minnesota Pollution
Control Agency, 520 Lafayette Road North, St. Paul, MN 55155-4194 (“MPCA” or “State”) and City of Lake Elmo, 3800
Laverne Avenue N, Lake Elmo, MN 55042 ("Grantee").
Recitals
1. Under Minn. Stat. § 116.03, subd.2, the State is empowered to enter into this grant.
2. The State is in need of Operational Capacity Financial Support for Communities Related to implementation of
the Agreement and Order dated February 20, 2018, between the State of Minnesota and 3M Company (3M
Settlement).
3. Grantee will comply with required grants management policies and procedures set forth through
Minn.Stat.§16B.97, subd. 4 (a) (1).
4. The Grantee represents that it is duly qualified and agrees to perform all activities described in this grant
agreement to the satisfaction of the State. Pursuant to Minn.Stat.§16B.98, subd.1, the Grantee agrees to
minimize administrative costs as a condition of this grant.
Grant Agreement
1. Term of Grant Agreement
1.1 Effective Date. December 1, 2018, per Minn.Stat.§16B.98 subd. 7, no payments will be made to the Grantee until
after this grant agreement is fully executed.
1.2 Expiration Date. December 31, 2019, or until all obligations have been satisfactorily fulfilled, whichever occurs first.
1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this grant agreement:
Liability; State Audits; Government Data Practices; Governing Law, Jurisdiction, and Venue; and Data
Disclosure.
2. Grantee’s Duties
The Grantee, who is not a state employee, will receive operational capacity financial support to promote successful
participation in the implementation of the 3M Settlement. The purpose of the Grant is to allow participation by
municipalities in discussion in the subgroups on how to ensure clean drinking water in sufficient supply to residents
and businesses in the entire East Metropolitan Area to meet their current and future needs.
Grant funds may only be used to successfully accomplish the following activities related to the 3M Settlement:
a. Participation in 3M subgroup meetings
b. Preparation for 3M subgroup meetings
c. Completion of meeting follow-up tasks
d. Performance of limited technical work, including hiring of contractors, required for meeting preparation
and participation.
Grant funds may not be used to plan or design individual municipal water treatment or delivery systems.
3. Time
The Grantee must comply with all the time requirements described in this grant agreement. In the performance of
this grant agreement, time is of the essence.
4. Consideration and Payment
4.1 Consideration. The State will pay for all activities performed by the Grantee under this grant agreement as
follows:
(a) Compensation. The Grantee will be reimbursed after participants complete the allowable activities and
documentation of incurred costs are accepted.
(b) Travel Expenses. Reimbursement for travel and subsistence expenses actually and necessarily incurred by
the Grantee as a result of this grant agreement are allowable provided that the Grantee will be reimbursed
for travel and subsistence expenses in the same manner and in no greater amount than provided in the
current "Commissioner’s Plan” promulgated by the Commissioner of Minnesota Management and Budget
(MMB), is located at http://www.mmd.admin.state.mn.us/commissionersplan.htm.
(c) Total Obligation. The total obligation of the State for all compensation and reimbursements to the
Grantee under this grant agreement will not exceed $25,000 (Twenty Five Thousand Dollars).
4.2 Payment
Invoices. The State will promptly pay the Grantee after the Grantee presents an itemized invoice and the State’s
Authorized Representative accepts the invoice. Invoices must be submitted at least on a quarterly basis
according to the following schedule but may be submitted as frequently as monthly:
Period ending: Invoice Due Date:
December 31, 2018 February 15, 2019
March 31, 2019 May 15, 2019
June 30, 2019 August 15, 2019
September 30, 2019 November 15, 2019
December 31, 2019 January 15, 2020
Invoices may be submitted no more frequently than monthly.
(a) Invoice must be emailed to mpca.ap@state.mn.us, and contain the following information:
Name of Grantee
Grantee project manager
Grant amount
Grant amount available to date
Invoice number
Invoice date
MPCA Authorized Representative Gary Krueger
SWIFT Contract No.
Purchase Order No.
Invoicing period (actual working period)
Documentation of incurred costs (from grantee’s accounting system). Print out from system with
indication of costs, invoice from contractor or receipt and description of how cost aligns with grantee’s
duties
(b) If there is a problem with submitting an invoice electronically, please contact the Accounts Payable Unit
at 651-757-2491.
5 Conditions of Payment
All activities provided by the Grantee under this grant agreement must be performed to the State’s satisfaction, as
determined at the sole discretion of the State’s Authorized Representative and in accordance with all applicable
federal, state, and local laws, ordinances, rules, and regulations. The Grantee will not receive payment for work
found by the State to be unsatisfactory or performed in violation of federal, state, or local law.
6 Authorized Representative
The State's Authorized Representative is Gary Krueger, Supervisor, 520 Lafayette Road North, St. Paul, Minnesota,
55155, 651-757-2509, Gary.Krueger@state.mn.us, or his successor, and has the responsibility to monitor the
Grantee’s performance and the authority to accept the activities provided under this grant agreement. If the
activities are satisfactory, the State's Authorized Representative will certify acceptance on each invoice submitted
for payment.
The Grantee’s Authorized Representative is Kristina Handt, 3800 Laverne Ave N, Lake Elmo, Minnesota 55042, 651-
747-3905, khandt@lakeelmo.org. If the Grantee’s Authorized Representative changes at any time during this grant
contract, the Grantee must immediately notify the State.
7 Assignment Amendments, Waiver, and Grant Agreement Complete
Assignment. The Grantee shall neither assign nor transfer any rights or obligations under this grant agreement
without the prior written consent of the State, approved by the same parties who executed and approved this
grant agreement, or their successors in office.
Amendments. Any amendments to this grant agreement must be in writing and will not be effective until it has
been executed and approved by the same parties who executed and approved the original grant agreement, or
their successors in office.
Waiver. If the State fails to enforce any provision of this grant agreement, that failure does not waive the provision
or the State’s right to enforce it.
Grant Agreement Complete. This grant agreement contains all negotiations and agreements between the State and
the Grantee. No other understanding regarding this grant agreement, whether written or oral, may be used to
bind either party.
8 Liability
Each party will be responsible for its own acts and the results thereof to the extent authorized by law and shall not
be responsible for the acts of the other party and the results thereof. The State’s liability shall be governed by the
provisions of the Minnesota Tort Claims Act, Minn. Stat. §§ 3.732, et seq., and other applicable law. The Grantee’s
liability shall be governed by the provisions of the Municipal Tort Claims Act, Minn. Stat. ch. 466, and other
applicable law.
9 State Audits
Under Minn. Stat. § 16B.98, Subd.8, the Grantee’s books, records, documents, and accounting procedures and
practices of the Grantee or other party relevant to this grant agreement or transaction are subject to examination by
the State and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of
this grant agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and
program retention requirements, whichever is later.
10 Government Data Practices
The Grantee and State must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it
applies to all data provided by the State under this grant agreement, and as it applies to all data created, collected,
received, stored, used, maintained, or disseminated by the Grantee under this grant agreement. The civil remedies
of Minn. Stat. §13.08 apply to the release of the data referred to in this clause by either the Grantee or the State. If
the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately notify
the State. The State will give the Grantee instructions concerning the release of the data to the requesting party
before the data is released. The Grantee’s response to the request shall comply with applicable law
11 Workers Compensation
The Grantee certifies that it is in compliance with Minn. Stat. §176.181, Subd. 2, pertaining to workers’
compensation insurance coverage. The Grantee’s employees and agents will not be considered State employees.
Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and any
claims made by any third party as a consequence of any act or omission on the part of these employees are in no
way the State’s obligation or responsibility.
12 Governing Law, Jurisdiction, and Venue
Minnesota law, without regard to its choice-of-law provisions, governs this grant agreement. Venue for all legal
proceedings out of this grant agreement, or its breach, must be in the appropriate state or federal court with
competent jurisdiction in Ramsey County, Minnesota.
13 Termination
Termination by the State
The State may immediately terminate this grant agreement with or without cause, upon 30 days’ written notice to
the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for
activities satisfactorily performed.
Termination for Cause
The State may immediately terminate this grant agreement if the State finds that there has been a failure to comply
with the provisions of this grant agreement, that reasonable progress has not been made or that the purposes for
which the funds were granted have not been or will not be fulfilled. The State may take action to protect the
interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all
or part of the funds already disbursed.
14 Data Disclosure
Under Minn. Stat. § 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of its social
security number, federal employer tax identification number, and/or Minnesota tax identification number, already
provided to the State, to federal and state tax agencies and state personnel involved in the payment of state
obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could
result in action requiring the Grantee to file state tax returns and pay delinquent state tax liabilities, if any.
Signatures
Signatures
Signatures
Signatures