Grant Agreement
United States Department of Agriculture
Rural Utilities Service
Rural Alaska Village Program
THIS AGREEMENT dated _______________ , _______, between the ____________________________ __________________________________, the rural or Native Alaskan village benefiting from this Agreement, herein called ``Grantee,'' and the United States of America acting through the Rural Utilities Service, Department of Agriculture, herein called ``Grantor,'' WITNESSETH:
WHEREAS
Grantee has determined to undertake a project of acquisition, construction, enlargement, or capital improvement of a (water) (wastewater) system to serve the area under its jurisdiction at an estimated cost of $ _________________ and has duly authorized the undertaking of such project.
The scope of work for the project is outlined below:
The State of Alaska, Department of Environmental Conservation (SOA-DEC) will administer the project and associated funding, on behalf of the grantee, as part of its efforts to carry out the Village Safe Water Program under AS 46.07. SOA-DEC’s authority to carry out this specific project is authorized by the State Grant Agreement between the Grantee and SOA-DEC. The grantor has agreed to provide a sum not to exceed $_________________________ or 75 percent of said project development costs, subject to the terms and conditions established in the Rural Utilities Service letter of conditions to the SOA-DEC and this Grant Agreement.
Said sum of $ __________________________ or 25 percent has been committed by the SOA DEC for such project development costs.
Provided, however, that the proportionate share of any grant funds actually advanced and not needed for grant purposes shall be returned immediately to the Grantor. The Grantor may terminate the grant in whole, or in part, at any time before the date of completion, whenever it is determined that the Grantee has failed to comply with the conditions of the grant, subject to Grantee’s appeal rights under applicable law and regulations.
As a condition of this grant agreement, the Grantee certifies that it is in compliance with and will comply in its performance of this agreement with all applicable laws, regulations, Executive orders and other generally applicable requirements, including those set out in 7 CFR 3015.205(b), which hereby are incorporated into this agreement by reference, and such other statutory provisions as are specifically set forth herein.
NOW, THEREFORE, In consideration of said grant by Grantor to Grantee, to be made pursuant to Section 306(a) of The Consolidated Farm and Rural Development Act for the purpose only of defraying a part not to exceed 75 percent of the project development costs, as defined by applicable Rural Utilities Service instructions.
Grantee Agrees That Grantee Will:
A. Permit periodic inspection of the construction by a representative of Grantor during construction.
B. Own, manage, operate and maintain the system, including the project funded by this Agreement if less than the whole of said system, continuously in an efficient and economical manner.
C. Make the services of said system available within its capacity to all persons in Grantee's service area without discrimination as to race, color, religion, sex, national origin, age, marital status, or physical or mental handicap (possess capacity to enter into legal contract for services) at reasonable charges, including assessments, taxes, or fees in accordance with a schedule of such charges, whether for one or more classes of service, may be modified from time to time by Grantee.
D. The initial rate schedule must be approved by Grantor and be in accordance with an approved Business Plan for the system. Thereafter, Grantee may make such modifications to the rate system as long as the rate schedule remains reasonable and nondiscriminatory.
E. Adjust its operating costs and service charges from time to time to provide for adequate operation and maintenance, short lived asset reserves, emergency repair reserves, and obsolescence reserves.
F. Expand its system from time to time to meet reasonably anticipated growth or service requirements in the area within its jurisdiction.
G. Provide Grantor with such periodic reports as it may require and permit periodic inspection of its operations by a representative of the Grantor.
H. To execute any agreements required by Grantor which Grantee is legally authorized to execute.
I. Upon any default under its representations or agreements set forth in this instrument, subject to an opportunity to cure within 30 days of notice of any such default, Grantee, at the option and demand of Grantor, will repay to Grantor forthwith the original principal amount of the grant stated herein above with the interest at the rate of 5 percentum per annum from the date of the default. Default by the Grantee will constitute termination of the grant thereby causing cancellation of Federal assistance under the grant. The provisions of this Grant Agreement may be enforced by Grantor, at its option and without regard to prior waivers by it previous defaults of Grantee, by judicial proceedings to require specific performance of the terms of this Grant Agreement or by such other proceedings in law or equity, in either Federal or State courts, as may be deemed necessary by Grantor to assure compliance with the provisions of this Grant Agreement and the laws and regulations under which this grant is made. Grantee may contest or appeal the grounds for Grantor’s determination of default as permitted under applicable law and regulations.
J. Use the real property including land, land improvements, structures, and appurtenances thereto, for authorized purposes of the grant as long as needed.
1. Title to real property shall vest in the Grantee subject to the condition that the Grantee shall use the real property for the authorized purpose of the original grant as long as needed.
2. The Grantee shall obtain approval by the Grantor agency for the use of the real property for purposes of other projects when the Grantee determines that the property is no longer needed for the original grant purposes. Use for purposes of other projects shall be limited to those under other Federal grant programs or programs that have purposes consistent with those authorized for support by the Grantor.
3. When the real property is no longer needed as provided in 1 and 2 above, the Grantee shall request disposition instructions from the Grantor agency or its successor
Federal agency. The Grantor agency shall observe the following rules in the disposition instructions:
(a) The Grantee may be permitted to retain title after it compensates the Federal Government in an amount computed by applying the Federal percentage of participation in the cost of the original project to the fair market value of the property.
(b) The Grantee may be directed to sell the property under guidelines provided by the Grantor agency. When the Grantee is authorized or required to sell the property, proper sales procedures shall be established that provide for competition to the extent practicable and result in the highest possible return.
(c) The Grantee may be directed to transfer title to the property to the Federal Government provided that in such cases the Grantee shall be entitled to compensation computed by applying the Grantee's percentage of participation in the cost of the program or project to the current fair market value of the property.
This Grant Agreement covers the following described real property (use continuation sheets as necessary).
K. Abide by the following conditions pertaining to equipment which is furnished by the Grantor or acquired wholly or in part with grant funds. Equipment means tangible, non-expendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. A grantee may use its own definition of equipment provided that such definition would at least include all equipment defined above.
1. Use of equipment.
(a) The Grantee shall use the equipment in the project for which it was acquired as long as needed. When no longer needed for the original project, the Grantee shall use the equipment in connection with its other Federally sponsored activities, if any, in the following order of priority:
(1) Activities sponsored by the Grantor.
(2) Activities sponsored by other Federal agencies.
(b) During the time that equipment is held for use on the property for which it was acquired, the Grantee shall make it available for use on other projects if such other use will not interfere with the work on the project for which the equipment was originally acquired. First preference for such other use shall be given to Grantor sponsored projects. Second preference will be given to other Federally sponsored projects.
2. Disposition of equipment. When the Grantee no longer needs the equipment as provided in paragraph (a) above, the equipment may be used for other activities in accordance with the following standards:
(a) Equipment with a current per unit fair market value of less than $5,000. The Grantee may use the equipment for other activities without reimbursement to the Federal Government or sell the equipment and retain the proceeds.
(b) Equipment with a current per unit fair market value of $5,000 or more. The Grantee may retain the equipment for other uses provided that compensation is
made to the original Grantor agency or its successor. The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the current fair market value or proceeds from sale of the equipment. If the Grantee has no need for the equipment and the equipment has further use value, the Grantee shall request disposition instructions from the original Grantor agency.
The Grantor agency shall determine whether the equipment can be used to meet the agency's requirements. If no requirement exists within that agency, the availability of the equipment shall be reported, in accordance with the guidelines of the Federal Property Management Regulations (FPMR), to the General Services Administration by the Grantor agency to determine whether a requirement for the equipment exists in other Federal agencies. The Grantor agency shall issue instructions to the Grantee no later than 120 days after the Grantee requests and the following procedures shall govern:
(1) If so instructed or if disposition instructions are not issued within 120 calendar days after the Grantee's request, the Grantee shall sell the equipment and reimburse the Grantor agency an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. However, the Grantee shall be permitted to deduct and retain from the Federal share ten percent of the proceeds for Grantee's selling and handling expenses.
(2) If the Grantee is instructed to ship the equipment elsewhere the Grantee shall be reimbursed by the benefiting Federal agency with an amount which is computed by applying the percentage of the Grantee participation in the cost of the original grant project or program to the current fair market value of the equipment, plus any reasonable shipping or interim storage costs incurred.
(3) If the Grantee is instructed to otherwise dispose of the equipment, the Grantee shall be reimbursed by the Grantor agency for such costs incurred in its disposition.
3. The Grantee's property management standards for equipment shall also include:
(a) Records which accurately provide for: a description of the equipment; manufacturer's serial number or other identification number; acquisition date and cost; source of the equipment; percentage (at the end of budget year) of Federal participation in the cost of the project for which the equipment was acquired; location, use and condition of the equipment and the date the information was reported; and ultimate disposition data including sales price or the method used to determine current fair market value if the Grantee reimburses the Grantor for its share.
(b) A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years to verify the existence, current utilization, and continued need for the equipment.
(c) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft of equipment shall be investigated and fully documented.
(d) Adequate maintenance procedures shall be implemented to keep the equipment in good condition.
(e) Proper sales procedures shall be established for unneeded equipment which would provide for competition to the extent practicable and result in the highest possible return.
This Grant Agreement covers the following described equipment (use continuation sheets as necessary).
L. Not encumber, transfer or dispose of the property or any part thereof, furnished by the Grantor or acquired wholly or in part with Grantor funds without the written consent of the Grantor except as provided in items J and K above.
M. The recipient community will be responsible to meet the requirements outlined in 7 CFR 3015, 7 CFR 3016, and 7 CFR Part 1780.47(a-d). Rural Development has the right to request this information for the life of facility.
N. The grantee agrees to acquire and maintain the applicable types of insurance and bond coverage shown below. The use of deductibles may be allowed providing the grantee has the financial resources to cover potential claims requiring payment of the deductible.
General Liability Insurance – Include vehicular coverage
Workers’ Compensation - In accordance with appropriate State laws.
National Flood Insurance - If the project involves acquisition or construction in designated special flood or mudslide prone areas, you must purchase a flood insurance policy, if available. As required in 7 CFR Part 1780, applicants must obtain flood insurance for all insurable structures located in special flood hazard areas (SFHA) designated by the Federal Emergency Management Agency (FEMA) on your proposed Flood Insurance Rate maps.
Real Property Insurance – Fire and extended coverage will normally be maintained on all structures except reservoirs, pipelines and other structures if such structures are not normally insured and subsurface lift stations except for the value of electrical and pumping equipment.
O. Comply with federal, state, and local statute requirements including but not limited to:
Section 504 of the Rehabilitation Act of 1973 – Under section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), no handicapped individual in the United States shall, solely by reason of their handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving RD financial assistance.
Civil Rights Act of 1964 – All Grantees are subject to, and facilities must be operated in accordance with, title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and subpart E of part 1901 of this title, particularly as it relates to conducting and reporting of compliance reviews. Instruments of conveyance for loans and/or grants subject to the Act must contain the covenant required by paragraph 1901.202(e) of this title.
The Americans with Disabilities Act (ADA) of 1990 – This Act (42 U.S.C. 12101 et seq.) prohibits discrimination on the basis of disability in employment, State and local government services, public transportation, public accommodations, facilities, and telecommunications. Title II of the Act applies to facilities operated by State and local public entities which provides services, programs and activities. Title III of the Act applies to facilities owned, leased, or operated by private entities which accommodate the public.
Age Discrimination Act of 1975 – This Act (42 U.S.C. 6101 et seq.) provides that no person in the United States shall on the basis of age, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.
RD financial programs must be extended without regard to race, color, religion, sex, national origin, marital status, age, or physical or mental handicap.
Grantor Agrees That It:
A. Will assist Grantee, within available appropriations, with such technical assistance as Grantor deems appropriate in planning the project and coordinating the plan with local official comprehensive plans for sewer and water and with any State or area plans for the area in which the project is located.
B. At its sole discretion and at any time may give any consent, deferment, subordination, release, satisfaction, or termination of any or all of Grantee's grant obligations, with or without valuable consideration, upon such terms and conditions as Grantor may determine to be (1) advisable to further the purpose of the grant or to protect Grantor's financial interest therein and (2) consistent with both the statutory purposes of the grant and the limitations of the statutory authority under which it is made.
Termination of This Agreement
This Agreement may be terminated for cause in the event of default on the part of the Grantee, subject to Grantee’s opportunity to cure within 30 days of notice from Grantor, as provided in paragraph I above or for convenience of the Grantor and Grantee prior to the date of completion of the grant purpose. Termination for convenience will occur when both the Grantee and Grantor agree that the continuation of the project will not produce beneficial results commensurate with the further expenditure of funds.
In witness whereof Grantee on the date first above written has caused these presence to be executed by its duly authorized
_________________________________________________________________________
attested and its corporate seal affixed by its duly authorized
_________________________________________________________________________
Attest:
_________________________________________________________________________
By _____________________________________________________________________
(Title) ___________________________________________________________________
By ______________________________________________________________________
(Title) ___________________________________________________________________
SOLELY FOR PURPOSES OF ACKNOWLEDGING THAT IT WILL RECEIVE AND ADMINISTER THE GRANT FUNDS PROVIDED BY GRANTOR IN ACCORDANCE WITH THE STATE GRANT AGREEMENT AND GRANTOR’S LETTER OF CONDITIONS, AND WITHOUT ASSUMPTION OF ANY OBLIGATION OR LIABILITY CONCERNING GRANTEE’S COVENANTS EXPRESSED HEREIN:
STATE OF ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION
By ______________________________________________________________________ (Commissioner)
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UNITED STATES OF AMERICA
RURAL UTILITIES SERVICE
By _____________________________________________________________________
(State Director)
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| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
| File Title | Exhibit A -- Water or Waste System Grant Agreement |
| Author | USDA |
| File Modified | 0000-00-00 |
| File Created | 2021-01-20 |