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HomeMy WebLinkAbout2019-29342019 -2934 MINNESOTA PUBLIC FACILITIES AUTHORITY PROJECT GRANT AGREEMENT POINT SOURCE IMPLEMENTATION GRANT This PROJECT GRANT AGREEMENT for a POINT SOURCE IMPLEMENTATION GRANT ( "the Agreement "), is between the Minnesota Public Facilities Authority (the "Authority ") and the City of Columbia Heights ( "Recipient ") and is dated May 24, 2019. The project consists of structural improvements to an existing stormwater pond and the addition of an iron - enhanced biofiltration basin to remove phosphorus from stormwater runnoff ( "the Project "). The Project is further described and detailed in the MN Pollution Control Agency's certification (s) dated June 28, 2018 and in the Recipient's Project application which is incorporated herein. Program Funding for the Project Name Legal citations Funding IDs Amounts Point Source Implementation ( "the PSIG MS 446A.073 MPFA - PSIG -G- 073 -FY19 $318,521 Grant Program Grant ") Total Authority Project Financing: $318,521 ARTICLE 1— TERMS AND CONDITIONS Section 1.1 Terms. (a) General: The Authority hereby commits, subject to the availability of funds and the conditions and legal citations herein set forth, to provide THREE HUNDRED EIGHTEEN THOUSAND FIVE HUNDRED TWENTY ONE DOLLARS ($318,521) to the Recipient for the purpose of financing eligible costs of the Project. (b) Loan: This subsection is intentionally left blank. (c) Grant(s): The PSIG Grant is granted and is not required to be repaid except as otherwise provided in Article 9 of this Agreement. Section 1.2 Authority Sources of Funds. (a) The Recipient acknowledges that the Authority may use the proceeds of one or more series of the Authority's revenue bonds (the "Bonds "), federal capitalization grants, proceeds of state general obligation bonds, state appropriations from the Clean Water Legacy Fund, or other funds of the Authority, or a combination thereof, to fund the Agreement. (b) At the written request of the Recipient, the Authority will provide information with respect to the funding of the Agreement, from time to time. (c) Allocation and pledging of Loan: This subsection is intentionally left blank. Section 1.3 Disbursements. (a) Delivery of Note: This subsection is intentionally left blank. (b) All Recipient disbursement requests will be subject to Authority approval and will be disbursed on a cost reimbursement basis, consistent with the budget presented in the Recipient's application. The Authority may withhold or disallow all or part of the amount requested if the Authority determines the request is not in compliance with this Agreement, applicable federal and state laws, regulations or rules as then in effect. (c) The Authority will disburse funds pursuant to approved disbursement requests complying with the provisions of this Agreement. Each disbursement request must be for eligible costs for completed work on the Project and must be submitted on or before the deadlines established by the Authority and on a PSIG—Columbia Heights_01 Page 1 of 7 form prescribed by the Authority. Each disbursement request must include supporting invoices and billing statements and be signed by an employee or elected official of the Recipient. (d) The Authority will reimburse the Recipient for eligible Project costs incurred prior to the execution of this Agreement only to the extent approved in connection with the Authority's approval of the Recipient's application. (e) The Authority will make disbursements to the Recipient within 30 days of receipt of the Recipient's request, unless the Authority determines to withhold disbursement in accordance with the provisions of this Agreement. The Authority will endeavor to pay disbursement requests submitted by the Recipient not later than the 15th day of the month by the last day of the same month. (f) If the entire amount specified in Section 1.1 is not fully disbursed by June 30, 2022 the Authority will not make any further disbursements. In that event or if final eligible Project costs are less than the total financing amount specified in Section 1.1, the undisbursed balance of the PSIG Grant will be cancelled. Section 1.4 Security. This subsection is intentionally left blank. Section 1.5 Mandatory Payments. This subsection is intentionally left blank. Section 1.6 Optional Prepayments. This subsection is intentionally left blank. ARTICLE 2 — RECIPIENT RESPONSIBILITIES AND PROJECT COMPLIANCE Section 2.1 Recipient Responsibilities with Respect to the Project. (a) The Recipient must meet all requirements in the project application submitted to the Authority as to compliance with federal and state laws, rules and regulations and include in any contract or subcontract related to the Project provisions requiring contractor and subcontractor compliance with applicable state and federal laws. The requirements in that application are hereby incorporated by reference. (b) The Recipient agrees to commence construction and complete the Project with reasonable diligence, regardless of the sufficiency of loans or grants therefor from the Authority to pay eligible project costs. (c) The Recipient will not enter into a sale, lease, transfer or other use agreement of any part of the Project, or change the use of the Project, without the prior written approval of the Authority if that sale, lease, transfer, agreement or change in use would (i) violate the covenants set forth in Article 3 or Article 4, or (ii) violate the conditions under which any capitalization grants were furnished by the United States Environmental Protection Agency (the "EPA "), or (iii) otherwise violate any terms or conditions of this Agreement. (d) The Recipient must maintain adequate property insurance coverage for the Project in those amounts and with those limits as it determines in good faith to be reasonable or in those amounts and with those limits as the Authority may require from time to time. The Recipient may substitute adequate, actuarially sound self- insurance or risk retention program(s) for property insurance coverage, so long as such program(s) are consistent with applicable laws and state and federal regulations. (e) The Recipient must complete the Project in accordance with all applicable federal, state and local statutes, rules, regulations, ordinances, reporting requirements, approvals, and state agency PSIG_Columbia Heights_01 Page 2 of 7 certifications governing the design and construction of the Project, and operate the Project's system in compliance with all applicable federal and state laws and regulations and permit requirements. (f) The Recipient agrees to exert all reasonable efforts to investigate claims that the Recipient may have against third parties with respect to the construction of the Project and, in appropriate circumstances, take whatever action, including legal action, the Recipient reasonably determines to be appropriate. (g) Clean Water Legacy logo: The Recipient must display a sign with the Clean Water Legacy logo at the project site or other public location identifying that the project was built with assistance from the Clean Water, Land & Legacy Amendment. Section 2.2 Construction Compliance. (a) State prevailing wages: The Recipient must comply with the provisions of prevailing wage requirements set forth in Minnesota Statutes, Sections 177.41 to 177.44, as then in effect. (b) Federal prevailing wages: This subsection is intentionally left blank. (c) Federal American Iron and Steel: This subsection is intentionally left blank. ARTICLE 3 — TAX COMPLIANCE COVENANTS This article is intentionally left blank. ARTICLE 4 — COMPLIANCE WITH STATE BOND REQUIREMENTS Section 4.1 State Bond Financed Property. The Recipient and the Authority acknowledge and agree that the Recipient's ownership interest in the Project, consisting of real property, and, if applicable, all facilities located, or that will be constructed and located, on that real property, and all equipment that is a part thereof, that was purchased with the proceeds of state general obligation bond proceeds constitutes "State Bond Financed Property ", as that term is used in Minnesota Statutes, Section 16A.695 and the "Fourth Order Amending Order of the Commissioner of Finance Relating to Use and Sale of State Bond Financed Property" dated July 30, 2012 (the "Order "), as such may be amended, modified, supplemented, or replaced from time to time, and therefore the provisions contained in that statute and order apply to the Recipient's ownership interest in the Project and any Use contracts relating thereto. The Recipient agrees that the proceeds of the Agreement must be used, and the Project must be operated, in a manner that complies with Minnesota Statutes, Section 16A.695 and the Order. The Recipient must file the required state bond financed property declaration as provided in the Order and provide a copy of the filed declaration to the Authority, unless the filing requirement is waived in writing by the Commissioner of Minnesota Management and Budget. Section 4.2 Lease or Management Contract. The Recipient agrees that any lease or management or similar contract (each a "Use Agreement ") it enters into with respect to property constituting all or a part of the State Bond Financed Property must comply with the following requirements: (a) It must be for the express purpose of carrying out a governmental program established or authorized by law and established by official action of the Recipient. PSIG_Columbia Heights-01 Page 3 of 7 (b) It must be approved, in writing, by the Commissioner of Minnesota Management and Budget. (c) It must be for a term, including any renewals that are solely at the option of the lessee or manager, that is substantially less than the useful life of the property subject to that lease or management contract, but may allow renewal beyond that term upon determination by the Recipient that the use continues to carry out the governmental program. (d) It must be terminable by the Recipient if the other contracting party defaults under the contract, or if the governmental program is terminated or changed. (e) It must provide for oversight by the Recipient of the operation of the property that is the subject of the Use Agreement. (f) It must specifically identify the statute that provides the Recipient authority to enter into the Use Agreement. (g) It must contain a provision stating that the Use Agreement is being entered into in order to carry out a governmental program and must specifically identify the governmental program. Section 4.3 Sale. The Recipient must not sell any property constituting all or a part of the State Bond Financed Property unless the sale complies with the following requirements: (a) The Recipient determines by official action that the property is no longer usable or needed by the Recipient to carry out the governmental program for which it was acquired or constructed. (b) The sale must be made as authorized by law. (c) The sale must be for fair market value as defined in Minnesota Statutes, Section 16A.695 as then in effect. (d) The Recipient obtains the prior written consent of the Commissioner of Minnesota Management and Budget. Section 4.4 Changes to Minnesota Statute 16A.695 or the Order. In the event that Minnesota Statutes Section 16A.695 or the Order is amended in a manner that reduces any requirement imposed upon the Recipient, or if the Recipient's interest in the State Bond Financed Property is exempt from Minnesota Statutes, Section 16A.695 or the Order, then upon written request by the Recipient, the Authority will enter into and execute an amendment to this Agreement to implement that amendment to, or exempt the interest in the Project from, Minnesota Statutes, Section 16A.695 and the Order. Section 4.5 Waiver. The Authority may waive the requirements of Article 4 at any time upon determination by the Authority, and after notifying the Commissioner of Minnesota Management and Budget, that the Project has not been and will not be funded from the proceeds of state general obligation bonds. PSIG_Columbia Heights_01 Page 4 of 7 ARTICLE 5 — DISCLOSURE This article and each section within is intentionally left blank. Section 5.1 Information for Disclosure Documents. Section 5.2 Continuing Disclosure. ARTICLE 6 — SYSTEM REPLACEMENT FUND This article is intentionally left blank. ARTICLE 7 - FINANCIAL RECORDS, AUDITS, REPORTS AND INSPECTIONS Section 7.1 Financial Recordkeeping. For all expenditures made pursuant to this Agreement, the Recipient must keep financial accounts and records in accordance with generally accepted accounting principles including invoices, contracts, receipts, vouchers and other documents sufficient to evidence in proper detail the nature and propriety of the expenditures. Such accounts and records must be accessible and available for a minimum of six years from the date of initiation of operation of the Project for examination by authorized representatives of the Authority, the Office of the Legislative Auditor, and the Office of the State Auditor. Section 7.2 Annual Financial Reports. The Recipient must annually provide to the Authority an acceptable annual financial report conducted in accordance with Minnesota Statutes, Section 471.697 or 471.698, as appropriate, for the years in which the Recipient receives funds pursuant to this Agreement. All financial reports must be submitted within 30 days after completion of the financial report but no later than one year after the end of the financial reporting period. Section 7.3 Annual Minority and Women Business Enterprise Report. This section is intentionally left blank. Section 7.4 General. The Recipient must submit the project reports required by the Authority on forms prescribed by the Authority. Section 7.5 Inspections. The Recipient, upon reasonable request by the Authority, must allow the Authority and its agents to inspect the Project. ARTICLE 8 — GOVERNMENT DATA PRACTICES The Recipient agrees, with respect to any data that it possesses regarding the Project, to comply with all of the provisions and restrictions contained in the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13, that exist as of the date of this Agreement and as such may subsequently be amended, modified or replaced from time to time. PSIG_Columbia Heights_01 Page 5 of 7 ARTICLE 9 - FAILURE TO COMPLY AND REMEDIES Section 9.1. Failure to Comply with this Agreement. Any of the following is an event of failure to comply under this Agreement: (a) The Recipient does not comply with any provision of this Agreement after written notice from the Authority, and for a three -month period the Recipient does not cure that default or provide a written plan acceptable to the Authority providing for that cure or, if the Authority accepts a plan for cure, the Recipient does not cure that default within the time period specified therein. (b) USDA -RD match: This Subsection is intentionally left blank. Section 9.2 Remedies. If an event of failure to comply described in Sections 9.1(a) or 9.1(b) of this Agreement occurs, the Authority may exercise one or more of the following remedies: (1) withhold approval of any disbursement request, (2) reject any pending application by the Recipient for financial assistance, (3) demand all or a portion of the grant(s) already disbursed be repaid, and upon that demand the Recipient must repay that amount to the Authority, or (4) exercise any other remedy available to the Authority at law or in equity. ARTICLE 10 —ADMINISTRATION Section 10.1 Amendments. Any amendments to this Agreement must be in writing and must be executed by the Recipient by the same officials who signed the Agreement, or their successors. Section 10.2 Termination of Loan. This section is intentionally left blank. Section 10.3 Fees. (a) Pursuant to Minnesota Statutes, section 446A.04, subdivision 5(a), the Authority may charge application fees and loan repayment servicing fees. (b) Application fee: An application fee equal to one -half of one percent of the PSIG Grant amount must be paid to the Authority by the Recipient upon execution of this Agreement. (c) Loan repayment servicing fees: This subsection is intentionally left blank. Section 10.4 Notices. In addition to any notice required under applicable law to be given in another manner, any notices required hereunder must be in writing, and will be sufficient if delivered by courier or overnight delivery service or sent by certified mail (return receipt requested), postage prepaid, to the address of the party to whom it is directed. That address must be the address specified below or a different address as may hereafter be specified by either party by written notice to the other: In the case of the Authority: In the case of the Recipient: Minnesota Public Facilities Authority City of Columbia Heights Attention: Executive Director Attention: Mayor 1st National Bank Building 637 38th Ave NE 332 Minnesota Street, Suite W820 Columbia Heights, MN 55421 -3806 Saint Paul, MN 55101 -1378 PSIG_Columbia Heights_01 Page 6 of 7 Recipient name: City of Columbia Heights Project Funding ID(s): MPFA- PSIG -G- 073 -FY19 The Authority and the Recipient have caused this Agreement to be duly executed by their duly authorized undersigned representatives. Statutory Cities must execute this Agreement as provided in Minnesota Statutes, Section 412.201, as amended. Home Rule Charter Cities must execute this Agreement as provided in Minnesota Statutes, Chapter 410, as amended. RECIPIENT: We have read and we agree to all of the above provisions of this Agreement. B MINNESOTA PUBLIC FACILITIES AUTHORITY: Title Donna Schmitt Title Steve Grove, or delegate Mayor Chair Date ® u °` Date 5 3 I 0 BY , -„... bm�m-� -- -. Title Kelli J. Bour dais City Manager Date - ` - ENCUMBERED: Individual signing certifies that funds have been encumbered as required by Minnesota Statute 16A. By PO date 05/24/19 POID(s) B2401:3000002511 PSIG_Columbia Heights_01 Page 7 of 7 rTr- PUBLIC FACILITIES AUTHORITY RECEIVED June 24, 2019 JUN 27 2019 Kevin Hanson, Public Works Director City of Columbia Heights PUBLIC WORKS 637 38th Ave Ne Columbia Heights, MN 55421 -3806 RE: PROJECT GRANT AGREEMENT for a POINT SOURCE IMPLEMENTATION GRANT Project Funding ID(s): MPFA- PSIG -G- 073 -FY19 Dear Kevin: Enclosed is the fully executed agreement. Also enclosed are the following documents: 1. Project Disbursement Request form with Summary of Project Costs worksheet: For each disbursement request, this form must be completed, signed and submitted to PFA along with a copy of all supporting invoices. 2. Real Property Declaration, and /or Certification related to approved waiver of RPD recording requirement As a condition of receiving these state funds, the recipient must execute and file a Real Property Declaration Form with the County Recorder's Office on the property being improved with the funds, unless the recipient has obtained a waiver from Minnesota Management and Budget (MMB). Due to the nature of funded activities, some projects require an RPD for parts of the funded property and a waiver approval for other. Please complete the Real Property Declaration Form and have it filed /recorded as soon as possible, and /or complete the waiver certification form if a waiver has been approved by MMB. Then mail or email copies to both PFA and MMB: By mail: Minnesota Public Facilities Authority Minnesota Management and Budget Attn: Becky Sabie Attn: Trudy Halla 11t National Bank Building Centennial Office Building 332 Minnesota Street, Suite W820 658 Cedar Street, 4th Floor Saint Paul, MN 55101 -1378 Saint Paul, MN 55155 Or email: I` �ebecca.SabiePstate.nin.us Trud'y.Halla state,mn.us MINNESOTA PUBLIC FACILITIES AUTHORITY 1st National Bank Building In 332 Minnesota Street O' Suite W820 in Saint Paul, Minnesota 55101 -1378 a USA 651 -259 -7469 PHONE O 800- 657 -3858 TOLL FREE O 651 - 296 -8833 FAX 0 mn.gov/pfa AN EQUAL OPPORTUNITY EMPLOYER AND SERVICE PROVIDER 3. Jobs Reporting form: In compliance with Minnesota Statutes, section 16A.633, subdivision 4, data on the jobs created or retained as a result of this financial assistance agreement must be reported by the recipient to the PFA, at substantial completion of the project. The enclosed form has been customized for this project, including a brief project description, funding ID(s) and award amount(s). You must report only the project start and end dates and the hours paid for jobs either created (specifically for this project) or retained in each of the three categories: engineering/ other professional, construction and other. Reporting is to be done by base hourly pay ranges, which should exclude fringe and indirect costs. If PFA funds provided only part of the construction costs for your project, you should prorate the job hours reported to PFA based on the percentage determined by dividing PFA funds by total project construction costs. Please return the completed form to PFA. If you have questions about any of this material, or wish to receive an electronic version of the forms, please feel free to contact your PFA program representative Becky Sabie at 651.259.7470 or Rebecca.abie @state.mn.us. Regards, Jennie Brown, Contract Coordinator MN Public Facilities Authority C: Becky Sabie Enclosures