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HomeMy WebLinkAbout05-28-2024 CC Agenda Packet - work sessionAgenda City Council Work Session Tuesday, May 28, 2024, 5:00 PM City Council Chambers | 2780 Kelley Parkway, Orono, MN 55356 952-249-4600 /https://www.oronomn.gov/ Roll Call Work Session Item Grants Adjournment Sign up for email notifications at https://www.oronomn.gov/ 1 Date: May 28, 2024 Item: Presenter: Adam Edwards, City Administrator / Engineer Section: Work Session Item Title: Grants 1.Purpose: The purpose of this item is to review how the City of Orono staff manages grants. 2.Background: The City Council expressed an interest in receiving information on what the city does with respect to grants. Staff will provide an over view and answer grant related questions at the work session 3.Summary: The City of Orono uses grants to supplement / offset expenses for a variety of city activates from infrastructure project to equipment procurement to training opportunities. Grants can come from a variety of sources including but not limited to the federal, state and county government as well as commercial, non-profit and professional organizations. Grants can come in varying amounts from millions of dollars to a hundred dollars. Most but not all grants will require some sort of local matching funds. Most grants require some sort of application process and then varying degrees of administrative effort to secure as well as received the funding for. AGENDA ITEM COUNCIL ACTION REQUESTED Discuss and ask any question about Grants you might have. Exhibits A. Grant Policy.pdf B. City Grants Table for May 28th Work Session.docx 2 ϴͲϭ City of Orono Financial Management Policies Policy 8 - Grant 8-1. PURPOSE With continued decreases in local government revenues, grant revenues have become an even more important part of the City's overall resource picture, especially in funding capital improvements. Although grant programs themselves are being reduced and becoming more competitive, actively seeking out grant revenues that assist in achieving identified City goals and objectives should nonetheless play a key role in the City's overall financial health strategies The purpose of this policy is to set forth an overall framework for guiding the City's use and management of grant resources. 8-2. GOALS 1.Set forth the importance of grant programs in accomplishing City goals and objectives. 2.Establish general concepts and framework for seeking and managing grant programs. 3.Identify roles and responsibilities in managing grant programs. 4.Establish criteria for evaluating the benefits and costs of grant programs. 5.Set forth the City’s policy in complying with Single Audit Act requirements. 8-3. DEFINITION 1.Grant – a monetary award of financial assistance or property provided to the City to carry out an activity or project for a public purpose or public good. 2.Grant Manager – The Grant Manager is the individual responsible for the administration of the project as stated in the grant proposal. The Grant Manager shall be listed on the grant application as the primary contact when there are co- grantees. 8-4. GENERAL CONCEPTS AND FRAMEWORK 1.The City will pursue grant funding from federal, state and other sources, consistent with identified City goals and objectives. 2.Aside from entitlement grants, the City should focus its efforts on securing grants for capital improvements. This approach will allow the City to compete for projects we might not otherwise be able to afford while maintaining financial independence should future grant sources diminish. 3 ϴͲϮ 3.Grants for operating purposes may be considered on a case-by-case basis after careful consideration of the benefits of the program and the ongoing impacts on the City if grant funding is no longer available. 4.The City should extensively analyze grants that fund “pilot” operating programs or short-term staffing enhancements to existing programs. Taking on these programs could ultimately aggravate the City’s fiscal position should the desire for the program remain once the grant funding is no longer available. 5.The City will only seek grants when sufficient staff resources are available to effectively administer the program in compliance with grant requirements and successfully perform the grant work scope and provide necessary matching requirements (both cash and in-kind matches). 6.Indirect costs of administering grant programs will be recovered to the maximum extent feasible. 7.Operating departments have the primary responsibility for seeking out grant opportunities, for preparing effective grant applications and for successfully managing grant programs after they have been awarded. 8-5. ROLES AND RESPONSIBILITIES CCity Council 1.Approves all grant applications in excess of $10,000 and delegates receipt and contract execution to the City Administrator if delegation is allowed by the grantor agency. 2.Approves resolutions accepting grant funds and matching funds, if required. City Administrator or Designee The City Administrator is the only authorized person to sign contracts, agreements, and grants on behalf of the City. If the grant is to be submitted electronically, then the City Administrator shall be listed as the authorizing agent or person. The City of Orono is the Grantee, not the specific department or division. 1.Receives grants and executes related contract documents when delegated to do so by the Council. 2.Approves all grant applications under $10,000 and delegates receipt and contract execution to the department head requesting the grant application if delegation is allowed by the grantor agency. Operating Departments 1.Develop systems for maintaining ongoing information regarding grant availability within their functional areas of responsibility. 2.Evaluate benefits and costs of specific grant programs on a case-by-case basis: 4 ϴͲϯ a) Purpose of the grant program and its consistency with identified City goals and objectives. b) Additional staffing, office space, facilities, supplies or equipment that will be required if the grant is awarded. c) Ongoing impacts of the grant program after it is completed. d) Responsibilities of other departments and impacts on them in preparing the grant application or performing work scope if the grant is approved. e) Amount of indirect costs to be recovered from the grant, f) Total program costs, including portion funded through grant revenues and any required City contribution. g) Source of funding for any required City share. h) Compliance and audit requirements, paying special attention to those areas where the grantor’s administrative procedures are different than the City’s. 3.Prepare grant application(s) a) Work with the grantor agency in identifying special program requirements and developing strategies for preparing a successful grant application. b) Complete grant application documents. c) Coordinate with affected departments as necessary. d) For grants in excess of $10,000, prepare a Council agenda report requesting authorization to seek grant funding. This report should describe the grant program's conformance with this policy, including the results of the cost/benefit analysis. e) For grants of $10,000 or less, Operating Departments may submit the grant application without further approval, subject to the following conditions: ԙ There will be no changes to existing staffing. ԙ Matching funds or in-kind contributions are already available within existing resources, and no additional appropriation of unreserved, undesignated fund balance or working capital is required. ԙ At the conclusion of the grant, there will be no ongoing commitments or obligations to continue the program. ԙ The purpose of the grant program is clearly consistent with current City plans, policies, and goals. 4.Administer grant programs if awarded. a) For grants in excess of $10,000, prepare a City Council agenda accepting the grant award, including a budget adjustment request in the fiscal impact section, and attaching the grant summary form signed by Finance (see attached). b) Coordinate execution of grant documents by the City Administrator and return executed documents to grantor agency. 5 ϴͲϰ c) For grants of $10,000 or less, execute and return grant documents to grantor agency. d) Notify affected departments of grant award. e) Provide the Administrative Services – Finance Department with electronic copies of the following: •Grant Award Letter; •Grant Contract; •Grant Summary Form; •Grant Amendments; •Reimbursement/ Drawdown request; •Close Out Reports. f) Maintain financial and other records in accordance with grant requirements. g) Complete and submit required reports, including requests for funds (reimbursements, drawdowns, advances). h) Monitor grant expenditures and receipt of revenues. All methods of payments shall be made payable to the “City of Orono” and not to City Departments or employees via check or electronic fund transfer. i) Coordinate on-site management reviews by the grantor agency during the grant term. j) Ensure compliance with grant requirements, paying special attention to those areas where the grantor’s administrative procedures are different than the City’s. k) Perform the grant work scope. 5.Complete grant closeout. a) Complete the grant work scope. b) Notify affected departments, that the project is completed and schedule a “close-out” meeting if necessary to resolve any final procedural issues. c) Ensure final receipt of grant revenues. d) Prepare and submit any required grant close-out documents. e) Return unobligated funds, if applicable, to funding agency. f) Review grant file for completeness. g) Retain all necessary program and financial records for the period of time required by grantor agency, but not less than five (5) years after the City audit. h) Coordinate any on-site management reviews or audits by the grantor. i) Resolve any audit findings. FFinance Department 1.Develops, recommends and maintains grant management policies. 6 ϴͲϱ 2.Provide technical assistance to operating departments in preparing grant applications, submitting reports, maintaining records and responding to any audit or information requests from granting agencies. 3.Upon approval by City Council, increase revenues and expenditure appropriations. 4.Coordinate the accounting and recording for all receipts and disbursements related to the grant. Finance will determine setup and maintain the most appropriate method(s) of accounting for grants in the financial system. 5.To ensure proper coding of the grant(s), the Accountant will receive general ledger account coding from the Finance Director before posting receipt and expenditure. 6.If applicable, Finance will create an invoice to the grantor per the operating department’s request. 7.Provide technical support to the operating departments preparing and submitting request for funds, drawdowns, advances, financial performance reports, close out, etc. 8.Schedule Single Audit and coordinate preparation and distribution of single audit reports. OOther Departments Provides assistance to the managing department as identified during the grant application and award process. 8-6. SINGLE AUDIT ACT REQUIREMENT Background The City is subject to the financial and compliance requirements of the Single Audit Act of 1984, amended in 1996, which is applicable to all local and state governments expending more than $750,000 in federal financial assistance during a fiscal year. The purpose of the Act is to: 1.Improve the financial management and accountability of state and local governments with respect to federal financial assistance programs. 2.Establish uniform requirements for audits of federal grants. 3.Promote efficient and effective use of audit resources. 4.Assure that federal departments and agencies rely upon and use audit work performed during a single audit rather than performing the audit work themselves. Under this Act, federal grants are included under an inclusive single audit program that is incorporated into the City's annual audit and financial report preparation process. During the audit, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. 7 ϴͲϲ CCity’s Policy Regarding the Single Audit Approach For federal grants included in the scope of the City’s single audit approach, it is the City’s policy that all financial and compliance issues have been met through the single audit, and follow-up audits to determine these issues are not necessary unless specifically related to findings or recommendations included in the single audit report. As noted above, the purpose of the Act is to establish uniform audit requirements, promote efficient use of audit resources, and assure that federal agencies rely upon audit work already completed; its purpose is not to audit local agencies twice. Accordingly, the City will strongly resist any efforts by federal agencies to duplicate audit work already performed in complying with Act requirements. As such, whenever federal grantor agencies request final audits, the managing department should notify the Department of Finance in order to ensure a consistent response to these types of requests. 8-7. OTHER REGULATIONS All grants are subject to Federal, State and Local Regulations. These regulations may be updated from time to time by the Federal or State government. The applicable guidelines will vary depending upon the grant awarded. The following are regulations that provide guidelines for grant administration and followed by the City: 1. Office of Management and Budget (OMB) a. Circular A-21 –cost principles for determining cost applicable to grants, contracts and other agreements with educational institutions. b. Circular A-87 – establishes principles and standards for determining cost for Federal awards carried through grants, cost reimbursement contracts and other agreements with State and local governments. c. Circular A-102 – establishes consistency and uniformity among Federal agencies in the management of grants. This included the adoption of government-wide common rule for terms and conditions on grants. d. Circular A-110 – uniform administrative requirements for grants and agreements with Institutions of Higher Education, Hospitals and other non-profit organizations. e. Circular A-122 – establishes cost principles for determining cost of grants, contracts and other agreements with non-profit organizations. 2. Federal Acquisition Regulation (FAR) subpart 31.2 – defines allowable and unallowable costs regarding contracts with commercial organizations. 3. 45 Code of Federal Regulation (CFR) 74 – establishes uniform administrative requirements to determine cost applicable to research and development under grants and contracts with hospitals. 8 City Grants Table for May 28th Work Session Department Lead Grant Name Grant Source Grant Amount Grant Purpose Share/Match Required Comments Any (Finance administers) CARES Act US Dept of Treasury $610,407 Provides payments for government entities navigating the impacts of the COVID-19 outbreak. No -Applicable for expenses between Jan 20, 2020 and September 30, 2021. -City was awarded this grant per a formula basis. -Used for repurposed payroll cost, COVID-19 testing, Orono School District’s technological improvements. Any (Finance administers) ARPA US Dept of Treasury $911,304.58 Intended to help provide support due to economic and public health impacts of COVID-19 including to impacts due to increased violence due to the pandemic No -Funds can be used on expenditures from March 3, 2020, obligated by December 31, 2024 and expended by December 31, 2026. -City was awarded this grant per a formula basis. -Used for CSAH 112 watermain improvement and Tonkawa Forcemain improvement Admin MCFOA Scholarship Grant MCFOA $200 Encourage City Clerk Certifications. Yes, remainder of fees Offsets cost for attendees working toward Clerk certification at MCFOA conferences Admin Organics Hennepin County $9585 Support establishment of a organics drop of site No - Engineering 2020 I&I Grant MCES, State Funded $57,000 Offset cost for Sewer Lining to mitigate I&I Yes/ 50%-75% -Applicable for work in 2020-2023. -City applies for and is awarded this grant every time it becomes available which follows the state bonding cycle. 9 Department Lead Grant Name Grant Source Grant Amount Grant Purpose Share/Match Required Comments Engineering Cares Act Federal $62,000 Install Covid protections No -Used to remodel City Hall front desk area to ensure social distancing. Engineering Local Trails Connection MnDNR $150,000 Conversion of East long lake road to a Trail. Yes 50%-Grant required significant administrative coordination effort up Engineering Cultural Heritage Grant Minnesota Historical Society $ 9995 Phase I Archeological Survey of Big Island and its Environs No -Resulted in a report that was used to inform future archeological work associated with park and improvement projects. Engineering State Bond Fund Grant (2020) Administered by DEED $300,000 Big Island Improvement Project Yes/ 50%-Used to provide ADA trails pavilion and toilets at big Island Park. Engineering Outdoor Recreation Grant (2020) MnDNR $200,000 Big Island Improvement Project Yes/ 50%- Used to provide ADA trail, picnic tables and toilet at big Island Park. Engineering Youth Sport Grant - Facility (2019) Hennepin County $136,275 Youth Sports Field Yes, 50%-Used to construct Bederwood Park Sports field Fire CenterPoint Community Safety Grant Center Point Energy $2,300 Purchase of an AED for L1 Yes / 50% match Fire Minnesota Board of State Funded $100 per firefighter Help offset the cost of training firefighters No -We pay for the training and classes then we are reimbursed 10 Department Lead Grant Name Grant Source Grant Amount Grant Purpose Share/Match Required Comments Firefighter Education Fire MN DNR Volunteer Fire Assistance Grant State Funded $5,000 Help offset the cost of pagers for the firefighters Yes / 50% Fire Assistance to Firefighters Grant (AFG) Federally Funded Help pay for items needed for the fire department Yes / 5% -This grant may be used to help pay for equipment for firefighters Fire Firehouse Subs Private $15,000 to $25,000 Help pay for items needed for the fire department No -This grant may be used to help pay for equipment for firefighters Parks 2021 Health Tree Canopy Grant Hennepin County Forestry $5000 Inventory Trees in Parks and City ROW Yes 50% Can be in kind Parks 2020 Health Tree Canopy Grant Hennepin County Forestry $5000 Inventory Trees in Parks and City ROW Yes 50% Can be in kind - Parks 2019 Health Tree Canopy Grant Hennepin County Forestry $5000 Inventory Trees in Parks and City ROW Yes 50% Can be in kind - 11 Department Lead Grant Name Grant Source Grant Amount Grant Purpose Share/Match Required Comments Parks Youth Sports Grant – Equipment Hennepin County $8435 Youth Sport Equipment Yes/ 50%-Orono Base Ball Association Equipment Orono was the LGU for this grant. Matching funds came from OBA. Parks Youth Sports Grant – Equipment Hennepin County $3071 Youth Sport Equipment Yes/ 50%-Goals and, marking equipment for Bederwood Sprots Field Police Traffic Safety Vehicle MN DPS $72,325 Traffic Safety Vehicle – Enhanced traffic enforcement Yes/20% city match -Funds to purchase and equip an unmarked squad car Police ICPOET (Officer) MN DPS - Office of Justice $50,000 Police Officer No Funds will pay for education/training and wages while attending school to a police officer Police TZD MN DPS – Office of Traffic Safety Est $180,000 Enhanced Traffic enforcement per Speed/DWI/Distracted driving No The grant award amount is for 7-10 agencies and Orono is the financial agent for the grant and distributes the amount between the department based on the hours of enforcement – Financial agent for several years, 2024 fiscal year should be the last year as fiscal agent Public Works- Water Lead Service Line Inventory MDH $75,000 Offset costs with Lead Service Line inventory requirements Yes, Remainder of costs Offsets cost for requirement. Grand Paid directly to consultant. 12