Implementation Project Sample Grant Agreement Clean Water Partnership

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1 Implementation Project Sample Grant Agreement Clean Water Partnership I. Summary Project Title: Grantee/Project Sponsor: Contact: Grant Agreement Number: Project Number: County: [Project Name] Project [Sponsor Name/Address] County [Sponsor Contact Name] [Sponsor Contact Phone Number] [Sponsor Address] [Unique Number] [Unique Number] [County Name] State Grant Share: $ Grantee Share: $ Total Eligible Project Costs: $ MPCA Project Manager: [name/address/phone/ ] Period Covered by This Agreement: [contract dates] This Grant Agreement (hereinafter Agreement), which shall be interpreted pursuant to the laws of the state of Minnesota, shall be between the state of Minnesota acting through its commissioner of the Minnesota Pollution Control Agency ( State or MPCA ), 520 Lafayette Road North, St. Paul, MN and Grantee/Address ( Grantee or Project Sponsor ). This Agreement shall be effective on, or the date the State obtains all required signatures under Minn. Stat. 16C.05, subd. 2, whichever is later and shall remain in effect until or until all obligations set forth in this Agreement have been satisfactorily fulfilled, whichever occurs first. The Grantee must not begin work under this Agreement until this Agreement is fully executed and the Grantee has been notified by the State s Authorized Representative to begin work. Grantee shall conduct the [project title] (Project) The following sections survive the expiration or cancellation of this Agreement: IV, E, 3. Liability; IV, E, 10. Records Maintenance; IV, E, 19 Data Disclosure; IV, E, 21. Government Data Practices; IV, E, 22. Intellectual Property Rights and Ownership of Materials; IV, E, 31. Endorsement; and H. Governing Law, Jurisdiction, and Venue. Page 1 of 16

2 II. Recitals A. Pursuant to Minn. Stat. 103F.701 to 103F.761, the State is authorized to enter into Grant Agreements to provide financial assistance to local units of government for implementation projects for the protection and improvement of surface and groundwater from nonpoint sources of water pollution. Administration of the program is governed by Minn. R to B. Grantee is a local governmental unit eligible to enter into a Clean Water Partnership (CWP) Grant Agreement with the State according to the conditions of Minn. Stat. 103F.701 to 103F.761 and Minn. R to C. Grantee submitted a Grant application, received on or about September 20, 2006, to the MPCA for a proposed project implementation of the Project or about December 6, 2006, the MPCA Commissioner, upon the recommendation of the Project Coordination Team and MPCA staff, selected the Grantee s Grant application as a project that will be awarded a Grant from available funds. The Agreement terms, requirements, and conditions apply to a project implementation of the Project. D. Grantee represents that it is duly qualified and willing to perform the services set forth herein, fulfilling the obligations of Grantee in accordance with Minn. R , subp. 20, and as further defined herein. E. Grantee must comply with all the time requirements described in this Agreement. In the performance of this Agreement, time is of the essence. III. Definitions The terms used in this Agreement have the meanings defined in Minn. Stat. 103F.701 through 103F.761 and Minn. R Notwithstanding the definitions referenced above, the following terms shall have the meanings set forth below: Best Management Practices (BMP) - Practices, techniques, and measures that prevent or reduce water pollution from nonpoint sources by using the most effective and practicable means of achieving water quality goals. BMP include official controls, structural and nonstructural measures, and operation and maintenance procedures necessary for the continuing, efficient, operation of structural measures. Contributing sponsor - Local governmental units, state or federal agencies, associations and organizations, other than the Grantee, contributing an identifiable level of financial assistance to the local share of project support. Such assistance may be a cash contribution, in-kind services, or a combination of cash and in-kind services. Eligible project costs - Those project costs that are reasonable, necessary and allocable to the project, permitted by appropriate State cost principles, approved by the State and determined to be eligible pursuant to Minn. R and this Agreement. Equipment - Any item or system having an initial cost of $300 or more and having a useful life of two years or more. Equipment replacement - Obtaining and installing equipment, structures, accessories, or appurtenances which are necessary during the useful life of the BMP to maintain the capacity and performance for which such practices were designed, implemented, and constructed. Grantee or Project Sponsor - A Local governmental unit entering into a Grant contract with the State to carry out the purposes of the Minnesota CWP financial assistance program to Local Units of Government pursuant to Minn. Stat. 103F.701 through 103F.761 and Minn. R to In-kind contribution - The value of a non-cash contribution to meet the cost sharing obligation of the Grantee. Subject to approval of the State, an in-kind contribution may consist of reasonable charges for real property and equipment or the reasonable value of goods and services directly benefiting the project. Local governmental unit or local unit - A statutory or home rule charter city, town, county, soil and water conservation district, watershed district, an organization formed for the joint exercise of powers under Minn. Stat , and any other special purpose district or authority exercising authority in water and related land resources management at the local level. Nonpoint source - A land management activity or land use activity that contributes or may contribute to ground and surface water pollution as a result of runoff, seepage, or percolation, and that is not defined as a point source in Minn. Stat , subd. 11. Nonpoint sources include, but are not limited to, rural and urban land management activities, land use activities, and specialty land use activities such as transportation. Page 2 of 16

3 Official controls - Ordinances and regulations that control the physical development of the whole or a part of a local government unit or that implement the general objectives of the local government unit. Operation and maintenance - Activities required providing for the dependable and economical functioning of a BMP during its useful life. Operation means effective and efficient control of the processes and equipment, structures, facilities, accessories or appurtenances which make up the BMP, including but not limited to financial and personnel management, record keeping, laboratory processes and planning. Maintenance means the preservation of functional integrity and efficiency, and includes preventative maintenance, corrective maintenance, and equipment replacement. Program element - One of the major Project Work Plan activity groupings of a Resource Investigation Grant or a Project Implementation Grant (e.g., Monitoring Plan, Identification of BMP, Stream Bank Stabilization Program). Project Implementation Grant or Phase II Grant - A Grant from the State to the Grantee for the implementation of an approved Diagnostic Study and Implementation Plan or their equivalent, that identify BMP to be implemented. Resource Investigation Grant or Phase I Grant - A Grant from the State to the Grantee for the preparation of a Diagnostic Study and Implementation Plan. Work Plan - A document prepared by the Sponsor, and reviewed and approved by the State, which describes in detail the work activities to be undertaken by the Sponsor in order to fulfill the requirements of Minn. Stat. 103F.701 through 103F.761 and Minn. R to An approved Project Work Plan shall include or incorporate by reference at least the following: an approved Project Monitoring Plan, an approved Quality Assurance Project Plan (QAPP), an approved Milestone Schedule, an approved project budget according to Program Elements. IV. Agreement A. Development of Project Work Plan In accordance with Minn. R , subp. 1(B), the Grantee shall develop a Project Implementation Work Plan (hereinafter Work Plan or Project Work Plan) for the River Basin Project. This Work Plan shall be developed in accordance with the Diagnostic Study and Implementation Plan prepared for the CWP Project and approved by the MPCA. In order to conduct this Project pursuant to Minn. R , the Grantee shall submit for review and approval by the State a Work Plan which shall be: applicable to the CWP Project identified in the Sponsor s Grant application developed in accordance with the Diagnostic Study and Implementation Plan approved by the MPCA If the Grantee does not submit the Work Plan within sixty (60) days of the execution date of this Agreement, the Agreement may be canceled and the funds reallocated at the State s sole discretion. The Project Work Plan shall include the following: 1. Monitoring Plan - The Monitoring Plan shall be considered a component of the Project Work Plan. In addition to fulfilling the provisions of Minn. R , subp. 1a, and , subp. C, the Monitoring Plan shall: a. Identify monitoring data needed to evaluate the water quality concerns and objectives of the project. Monitoring objectives shall be specific, realistic and manageable and shall include specific field, laboratory, and quality assurance methods to be used in the project. b. Identify initial data analysis and assessment plans to meet the requirements of Minn. R , subp. 4. c. Describe the operating procedures to be used in water sampling, sample handling, laboratory analysis, field and laboratory quality assurance and quality control, and data management. The Grantee shall prepare and submit a QAPP acceptable to the State and consistent with Interim Guidelines and Specifications for Preparing Quality Assurance Project Plans QAMS-005/80 (EPA-600/ :NTIS PB ). State guidance for the development of a quality assurance project plan, including Interim Guidelines and Specifications for Preparing Quality Assurance Project Plans QAMS-005/80, can be obtained from: The Watershed Section, Regional Division, Minnesota Pollution Control Agency, 520 Lafayette Road, St. Paul, MN, d. Describe information reporting procedures that shall: 1) Document the monitoring program activities described above and facilitate data analysis and assessment. Page 3 of 16

4 2) Ensure the timely submittal of quality assured water quality monitoring data in an electronic form suitable for entry into the U.S. Environmental Protection Agency s (EPA) Data Storage and Retrieval System (STORET) in accordance with Sections IV., E., 12., g.) of this Agreement and perform verification of proper system entry of data. e. Describe the techniques that will be used for calculating flow and nutrient loadings. 2. Project goals and objectives - Detailed project goals and objectives shall be developed and prioritized by the Grantee. Project goals and objectives shall include: a. implementation goals and objectives for BMP b. descriptions of the anticipated cost-benefit of BMP implementation and the anticipated effectiveness and efficiency of BMP implementation c. specific and, as appropriate, quantifiable goals and objectives for improvements in water quality Project goals and objectives shall be reported and modified in accordance with the provisions of Section IV., E., 12. Annual Progress Report of this Agreement. 3. Designation and description of program elements - Identify and designate each significant Work Plan activity as a program element. The number of program elements shall not exceed twelve. If additional detail of program activities is necessary, program sub-elements may be devised subject to approval of the State. Descriptions of program elements, or as appropriate sub-elements, shall describe in detail, activities and objectives within each program element that must be accomplished to implement the Project Work Plan of, and approved Diagnostic Study and Implementation Plan. 4. Project outlay budget summary - A budget which describes project costs according to program Elements and includes columns indicating: Grant cash expenditures, loan cash expenditures, in-kind expenditures, Sponsor cash expenditures, total expenditures. 5. Project support budget - A budget summarizing Sponsor and contributing Sponsor support for the Project. This budget shall include columns for cash contributions and in-kind contributions and rows for the Sponsor, contributing Sponsors, and the CWP Grant and CWP loan being requested. 6. A milestone schedule which includes at least the following - a. A description of the schedule for initiation and completion of Work Plan activities including BMP implementation and installation. The description of Work Plan activities shall include sufficient detail for the State to determine if the Grantee is accomplishing project goals and objectives in a timely manner. b. A schedule which indicates the specific dates upon which the Grantee is responsible for submitting to the State the Project reports provided for in this Agreement. 7. Itemized program element budget - A detailed budget indicating specific tasks within program elements, and for each task designating activities to be completed by the Grantee, Contributing Sponsors, and Contractors respectively, and indicating by type of personnel: hours and hourly rates as well as expenses for supplies equipment and contractual services. The Itemized Program Element Budget should also indicate whether a budgeted expense will be a) an in-kind contribution; b) a cash expenditure utilizing loan funds; or c) a cash expenditure utilizing Grant, local or other non-loan funds. 8. An Implementation Activities Uniform Quality Assurance Plan - An Implementation Activities Uniform Quality Assurance Plan consistent with Section IV., E., 9. of this Agreement B. Incorporation of Project Work Plan into this Agreement 1. Upon written approval by the State, the Project Work Plan and any subsequent amendments or revisions, thereto which are approved by the State in writing, shall be incorporated into this Agreement by reference. 2. Notwithstanding Section IV., B., 1., the State Grant Share available to the Sponsor for completion of the activities described in the approved Project Work Plan shall be the amount provided for in Section I. Summary", Section IV., C., 2 "Budget" and Section IV., D. "Financial Participation of this Agreement, as amended. Page 4 of 16

5 C. Completion of Project Work Plan 1. In accordance with the conditions for a Project Implementation Grant (Phase II Grant) as provided for in Minn. R to , and in accordance with - a. the approved Project Work Plan, including any subsequent amendments or revisions thereto which are approved by the State in writing b. Section IV, C., 2. "Budget", Section IV, C., 4. Special Conditions and Sections IV, D. through H. of this Agreement The Grantee shall implement measures and activities identified in the approved Project Work Plan for the Project waters of concern and the Project area. 2. Budget - State Grant Share...$ Grantee Share...$ Total Eligible Project Costs...$ The State Grant Share shall be no more than fifty percent (50%) of the total eligible project costs, but in no case shall it exceed $. 3. Consideration - All services performed and goods supplied by the Grantee pursuant to this Agreement shall be paid by the State as follows: a. The total obligation of the State for all compensation and reimbursements to the Grantee shall be consistent with the Work Plan budget, which is incorporated by reference and made part of this Agreement and shall not exceed $. b. Travel and subsistence expenses actually and necessarily incurred by the Grantee s performance of this Grant Agreement shall be reimbursed in the same manner and in no greater amount than provided in the current Commissioner s Plan promulgated by the Commissioner of Employee Relations. The Grantee shall not be reimbursed for travel and subsistence expense incurred outside the state of Minnesota unless it has received prior written approval for such out of state travel from the State. Minnesota shall be considered the home state for determining whether travel is out of state. 4. Special conditions - This Agreement shall be subject to the following special conditions: a. BMP Continuing Operation and Maintenance Plan. Within one (1) year of the execution of this Agreement, the Grantee shall prepare and submit to the State for review, a draft BMP Continuing Operation and Maintenance Plan, which shall address at least the following: 1) Designation of responsibilities for the continuing operation and maintenance, as defined herein, of BMP, including but not limited to: a) Proposing minimum useful lives to be assigned to each particular type of BMP, where the minimum useful life is the minimum time period over which operation and maintenance, as defined herein, shall be undertaken. b) Designation of responsibilities for the continuing operation and maintenance of BMP, including: i) identifying each step or task necessary to ensure the continuing efficient operation of each BMP and then designating who shall be responsible for each ii) describing the administrative, legal, financial or other commitments and responsibilities necessary to ensure the continuing efficient operation of each BMP 2) Where individual land managers, local units of government, agencies, or organizations other than the Grantee shall be delegated complete or partial responsibility for the continuing operation and maintenance of BMPs as defined herein, the Grantee shall describe the administrative, legal and fiscal arrangements, including remedial action, which shall be available to the Grantee, to ensure continuing operation and maintenance, as defined herein, of BMP. 3) A procedure for monitoring and reporting the continuing operation of BMP for at least the minimum useful life assigned to each BMP. b. Notwithstanding Section IV., D., Financial Participation, of this Agreement, the State may withhold payment until such time as the Grantee submits a draft BMP Continuing Operation and Maintenance Plan and the State approves the Grantee s BMP Continuing Operation and Maintenance Plan. Page 5 of 16

6 c. Implementation of BMP Continuing Operation and Maintenance Plan. Notwithstanding Section IV., D., Financial Participation of this Agreement, the State may withhold final payment as described in Section IV., D., Financial Participation, 3., e). Final Payment, and Section IV., F., Project Review and Budget Adjustment. 7., Withholding Payments, until such time as the Grantee [or the appropriate delegated local governmental unit, agency, organization, or individual as identified according to Section IV., C., 4. Special Conditions, a) 2)] implements and, as appropriate, enacts the provisions (including administrative, legal and fiscal arrangements), of a Best Management Practices Continuing Operation and Maintenance Plan which has been approved by the State. D. Financial participation 1. Local Share - The Grantee shall make full payment of all project costs. 2. Method of Payment - a. Conditions of payment. All services provided by the Grantee under this Agreement must be performed to the State's satisfaction, as determined at the sole discretion of its authorized agent, and in accordance with all applicable federal, state, and local laws, ordinances, rules and regulations. The Grantee shall not receive payment for work found by the State to be unsatisfactory, or performed in violation of federal, state or local law, ordinance, rule or regulation. b. Initial payment. Upon execution of this Agreement under Minn. Stat. 16C.05, subd. 2, the State shall make payment to the Grantee of twenty-five percent (25%) of the State Grant Share provided for in this Agreement in the amount of $. c. Second payment. Upon written approval by the State of the Work Plan required under Minn. R , subp. 2, the State shall make payment to the Grantee of thirty-five percent (35%) of the State Grant Share provided for in this Agreement in the amount of $. d. Third payment and withholding of final payment. Upon completion of the requirements of Section IV., F., of this Agreement, the State shall make payment to the Grantee as follows: 1) If, as determined upon completion of Section IV., F., of this Agreement, the total eligible project costs necessary to complete the project, in accordance with the terms of this Agreement and Minn. R through is less than the total eligible project costs identified in this Agreement an amount equal to ten percent (10%) of the State Grant Share of the total eligible project costs so determined shall be withheld by the State until the State is satisfied that the project has been completed in accordance with the terms of this Agreement and Minn. R through Upon determination of the amount to be so withheld, the State shall make payment to the Grantee in an amount equal to the difference between the amount withheld and the balance of the State Grant Share as determined above. 2) If, as determined upon completion of Section IV., F., of this Agreement, the total eligible project costs necessary to complete the project in accordance with the terms of this Agreement and Minn. R through is equal to or exceeds the total eligible project costs identified in this Agreement, an amount equal to ten percent (10%) of the State Grant Share provided for in this Agreement shall be withheld by the State until the State is satisfied that the project has been completed in accordance with the terms of this Agreement and Minn. R through Upon determination of the amount to be so withheld the State shall make payment to the Grantee in an amount equal to the difference between the amount withheld and the balance of the State Grant Share provided for in this Agreement. e. Final payment. Upon completion and final approval of the project by the State in accordance with the terms of this Agreement and Minn. R through , and subject to Section IV., F., 3., Limitations on Cost Sharing" of this Agreement, the State shall make payment to the Grantee of an amount equal to that withheld according to the conditions of either Section IV., D., 2., d., 1) or 2) of this Agreement. E. General conditions of Agreement 1. Exclusive use of project funds - The Grantee shall use all State funds disbursed to it under this Agreement exclusively for the purposes described in this Agreement. The Grantee shall keep complete and accurate records that fully disclose the amount and disposition of such funds, as well as funds and in-kind used for match. Under Minn. Stat. 16C.05 subd 5, the books, records, documents, accounting procedures and practices of the Grantee relevant Page 6 of 16

7 to this Agreement shall be subject to examination by the MPCA, the Legislative auditor and/or the State auditor, as appropriate, for a minimum of six years from the end of this Agreement. 2. Completion of Project - The Grantee shall complete the project described in Section IV, Parts A through D of this Agreement as amended, in accordance with the budget and project schedule described therein. 3. Liability - The Grantee must indemnify, save and hold the State, its agents and employees harmless from any claims or causes of action, including attorney s fees incurred by the State, arising from the performance of this Agreement by the Grantee or the Grantee's agents or employees. This clause shall not be construed to bar any legal remedies the Grantee may have for State's failure to fulfill its obligations under this Agreement. 4. Amendments - a. Any amendment to this Agreement must be in writing and shall not be effective until it has been executed and approved by the same parties who executed the original Agreement or their successors in office. The Grantee may apply to the State to amend this Agreement for the following purposes: 1) extension of the Project Work Plan schedule, project period or budget period 2) increases or decreases in the eligible project costs and the State Grant Share b. Amendment requests shall also include the following information as indicated below: 1) Where the amendment request includes increases or decreases in total eligible project costs or increases or decreases in the State Grant Share of the Project, a request for amendment shall also include the following: a) Project amendment budget. A budget which describes project costs according to program elements and includes columns indicating the currently approved project budget, increases or decreases requested, and the revised budget. b) Project support budget. A budget summarizing Sponsor and contributing Sponsor support for the Project. This budget shall include columns for cash contributions and in-kind contributions and rows for the Sponsor and contributing Sponsors, and CWP Grant and CWP loan being requested. c) Detailed, itemized program element budgets, and support budgets which are consistent with the most recently available Project Work Plan budget preparation guidance provided by the State. d) Where the Grantee is subcontracting for architectural/engineering or other consulting services, an unexecuted amended architectural/engineering agreement or equivalent indicating changes in the cost, scope of work, and budget period. 2) A project and budget period extension request if the period is to be extended. 3) Any additional information deemed necessary or appropriate by the State to clarify the nature or purpose of the request. 4) Amendments to this Agreement which are mutually acceptable to the Grantee and the State shall be effective upon the date that the last signature is obtained by the State, pursuant to Minn. Stat. 16C.05, subd. 2, and shall remain in effect until the conclusion of the original budget period, or if amended, the conclusion of the amended budget period. 5) Minor modifications of the Project Work Plan may be undertaken by the Project representative with prior written approval of the State. Either party may initiate this process for the following purposes: a) reallocation of project funds to different program elements b) increases or decreases in the scope of the project 5. Designation of Project representative - The Grantee shall, by resolution of its governing authority, appoint a Project representative. The Project representative shall have full authority to represent the Grantee in its fulfillment of the terms, conditions and requirements of this Agreement and in all matters which, according to the conditions of this Agreement, do not specifically require action by the same parties who executed this Agreement or their successors in office. The State shall direct Project correspondence to the Project representative or copy the Project representative on Project correspondence, and shall consider correspondence from and action on the part of the Project representative as representations and actions taken by the Grantee. A certified resolution appointing the Project representative shall be forwarded to the State upon execution of this Agreement. If the Grantee's Project representative changes at any time during this Agreement, the Grantee must immediately notify the State. Page 7 of 16

8 6. Subcontracts, architectural and engineering services - Except for Project Work Plan activities undertaken as in-kind contributions by contributing sponsors, the Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior consent of the State and a fully executed assignment agreement executed and approved by the same parties who executed and approved this Agreement, or their successors in office. The Grantee may enter into subcontracts under terms and conditions specified by the State, to engage architectural, engineering, and related services to assist in the completion of the work specified in the Project Work Plan. Subcontracts or amendments to existing subcontracts, for the performance of any or all of the work to be performed under this Agreement shall be subject to the following conditions: a. The Grantee shall comply with all applicable State laws and rules in its selection of architects, engineers or contractors to perform any of the work required under the terms of this Agreement. b. Subcontracts between the Grantee and any person with whom it contracts for the purposes of performing work under this Agreement shall provide that the State is a third-party beneficiary to the subcontract. c. Prior to the execution of subcontracts, the Grantee shall provide for State review a copy of the subcontract including, a breakdown of the subcontractor's costs and prices. Such information shall include hourly rates, the costs of supplies and expenses, and indirect rates and costs. d. The Grantee shall provide the State with an executed copy of each subcontract within 30 days of the execution of such subcontracts. e. For profit making organizations, the rate(s) and amounts of profit incorporated into hourly rates shall be indicated and the Grantee shall review hourly rates, indirect rates, and profit rate(s), negotiate adjustments in such rates as appropriate, and forward the rates, as adjusted, to the State. f. Subcontractors shall provide written notification to the Sponsor, and the Sponsor shall notify the State, regarding adjustments in indirect rates, hourly rates, or profit rates. Such adjustments shall be subject to review by the Sponsor and the State before payment is provided at such adjusted rates. g. The Grantee shall retain its right to assign its subcontract with any person in regard to performance of this Agreement, and any or all rights pursuant thereto, to the State. h. The Grantee shall be responsible for the satisfactory and timely completion of all work required under any subcontract and the Grantee shall be responsible for payment of such subcontracts. i. The Grantee shall exert all reasonable effort to investigate claims which the Grantee may have with respect to the work performed under this Agreement and, in appropriate circumstances, take whatever action, including withholding of payment and legal recourse, is available to the Grantee. j. The Grantee shall pay all subcontractors, less any retainage, within 10 calendar days of receipt of payment to the Grantee by the State, for undisputed services provided by the subcontractors and must pay interest at the rate of one and one half percent per month on any part of a month on any undisputed amount not paid on time to the subcontractor. k. All subcontractors shall reference this Agreement and the Grantee shall require the subcontractors to comply with all the terms and conditions of this Agreement. 7. Development of plans and specifications - Where the Grantee intends to undertake the construction, alteration, repair or maintenance of real or personal property; the Grantee shall develop and submit to the State suitable plans and specifications for the activity prior to receiving authorization to bid; initiating selection of a contractor; and initiating construction, alteration, repair or maintenance activities. 8. Subcontracts, construction, supplies & materials - Except for Project Work Plan activities undertaken as in-kind contributions by contributing Sponsors, the Grantee shall neither assign nor transfer any rights or obligations under this Agreement without the prior consent of the State and a fully executed assignment agreement executed and approved by the same parties who executed and approved the Agreement, or their successors in office. The Grantee may enter into subcontracts under terms and conditions specified by the State, for the purchase or rental of supplies, materials or equipment and for the construction, alteration, repair or maintenance of real or personal property. Subcontracts shall be entered into to complete the work specified in the Project Work Plan. Subcontracts or amendments to existing subcontracts, for the performance of any or all of the work to be performed under this Agreement shall be subject to the following conditions: a. Contracts for the purchase or rental of supplies, materials or equipment and for the construction, alteration, repair or maintenance of real or personal property shall be entered into according to the provisions of the Uniform Municipal Contracting Law (Minn. Stat ). b. Subcontracts between the Grantee and any person with whom it contracts for the purposes of performing work under this Agreement shall provide that the State is a third-party beneficiary to the subcontract. 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9 c. Competitive bid. The Grantee shall, prior to contracting for goods or services subject to competitive bid requirements of the Uniform Municipal Contracting Law (Minn. Stat ), obtain the authorizations, and endorsements from the State indicated below: Authorization to bid and endorsement of contract award: Prior to bid advertisement, the Grantee shall submit all documents relating to the bid process to the State for review. Upon opening bids, the Grantee shall provide the State with the bidder selected for award of the contract; copies of the proposal and bonds from the bidder selected; a tabulation of all bids received; a copy of each addendum issued during the bidding period and acknowledgment of its receipt and incorporation by the successful bidder; a justification indicating why the low bidder is not responsive and responsible if award is to be made to other than the low bidder; and a revised cost estimate as necessary. The State shall review the materials described in this provision and provide the Grantee with a written endorsement of the bidder selected by the Grantee for award of the contract. d. The Grantee shall provide the State with an executed copy of each subcontract within 30 days of the execution of such subcontract. e. The Grantee shall comply with all applicable State laws and rules in its selection of contractors to perform any of the work required under the terms of this Agreement. f. The Grantee shall be responsible for the satisfactory and timely completion of all work required under any subcontract and the Grantee shall be responsible for payment of such subcontracts. g. The Grantee shall exert all reasonable effort to investigate claims which the Grantee may have with respect to the work performed under this Agreement and, in appropriate circumstances, take whatever action, including withholding of payment and legal recourse, is available to the Grantee. h. The Grantee shall pay all subcontractors, less any retainage, within 10 calendar days of receipt of payment to the Grantee by the State, for undisputed services provided by the subcontractors and must pay interest at the rate of one and one half percent per month on any part of a month on any undisputed amount not paid on time to the subcontractor. i. All subcontractors shall reference this Agreement and the Grantee shall require the subcontractors to comply with all the terms and conditions of this Agreement. 9. Implementation Activities Uniform Quality Assurance Program - The Grantee shall develop and submit to the State and obtain State approval of a uniform quality assurance program which provides for: a. inspection and certification procedures for construction, alteration, repair or maintenance of real or personal property which will not be contracted b. inspection and certification procedures for construction, alteration, repair or maintenance of real or personal property which will be contracted c. certification methods for materials The level of inspection and certification provided for contracted and noncontracted construction activities shall be commensurate with the scope and complexity of the construction undertaken. Notwithstanding, Section IV., D., Financial Participation, of this Agreement, the State may withhold payment until such time as the Grantee submits and the State approves an Implementation Activities Uniform Quality Assurance Program. 10. Records maintenance - The Grantee, subcontractors, and contributing sponsors with whom the Grantee enters into agreements to perform any or all of the work required under the terms of this Agreement, shall maintain complete and accurate books, records, documents, and accounting procedures. Such books, records, documents, and accounting procedures shall fully disclose the amount and disposition of all State Grant funds disbursed under this Agreement, as well as funds and in-kind contributions used for match. Such records shall also account for disposition of project expenditures, property purchased, program income, and documentation of compliance with applicable federal, state, or local laws, ordinances, rules or regulations, and the conditions of this Agreement. Under Minn. Stat 16C.05 subd. 5, such records shall be available to authorized representatives of the State, including the State contracting department, the State Auditor and/or the Legislative Auditor, as appropriate, for examination and audit and shall be maintained for a minimum of six (6) years after termination of this Agreement. If during the period when this Agreement, as amended, is effective or within six (6) years thereafter, the Grantee has an independent audit conducted which includes or addresses the activities of this Agreement a copy of the audit shall be provided to the State. Page 9 of 16

10 11. Monitoring Program - A Monitoring Plan shall be submitted by the Sponsor for review and approval by the State and shall address the entire project period. Monitoring activities conducted prior to initial State approval of the Grantee's Monitoring Plan shall not be considered eligible costs unless a specific exception is provided for in writing by the State. a. The Grantee shall annually review its existing Monitoring Program and accumulated monitoring data, and submit appropriate revisions of its Monitoring Program to the State for review by February 1 of each project year. The State shall review and approve the Grantee's Monitoring Program before authorizing the local Grantee to proceed with monitoring beyond the first calendar quarter of that year. b. In addition to the annual review of its Monitoring Program as described in this subpart, the Sponsor, subject to prior written approval by the State, may at any time revise its Monitoring Program and submit such revisions for review and approval by the State. The State shall review revisions of the Grantee's Monitoring Program and may withhold authorization of monitoring and determination of cost eligibility for monitoring activities until said revisions are approved by the State. c. No monitoring conducted after March 31 of a project year shall be considered an eligible project cost unless the State has approved the Monitoring Program submitted by the Grantee for that year. 12. Annual Progress Report - The Grantee shall submit for review and approval by the State an Annual Progress Report for each calendar year or part thereof during which this Agreement is in effect. The Annual Progress Report shall be submitted to the State by February 1 and shall include at least the following information for the previous calendar year: a. A brief discussion of the relationship of the reporting year's activities to the overall goals and objectives of the project, and any proposed changes or modifications in the overall goals and objectives. b. A discussion of project findings appropriate to the work conducted during the reporting year, including work progress relative to the Project Work Plan milestone schedule, and difficulties encountered during the reporting year. c. A summary of Work Plan activities completed which, pursuant to Minn. R to , includes sampling event locations for water quality and related environmental sampling, dates, and results, and summarizes the significance of the data, and analysis and assessment activities undertaken. Graphical presentations should be used as appropriate. d. A report of expenditures and in-kind contributions in the previous reporting year and those anticipated during the upcoming reporting year. The report shall indicate previous and anticipated expenditures and in-kind contributions by reporting year. e. A summary of federal in-kind or cash contributions provided during the reporting year which have been used as local match for the Project. The report shall identify the federal source(s) and the corresponding amount(s). f. A summary of the reporting year s BMP identifying the type, number and location of BMP, funding levels or sources and the outcome of nonpoint source pollution control activities. This data shall be reported in a format prescribed by the State. g. Monitoring data reporting (STORET) - The water quality monitoring data collected during the project shall, through a cooperative arrangement with the State, be verified and entered into STORET. The data shall be submitted annually in conjunction with the Annual Progress Report. Monitoring data shall be reported in a STORET compatible format acceptable to the State. 13. Semi-annual Report - The Grantee shall submit to the State for review and approval a Semi-annual Report of Project activities for each period ending June 30th during which this Agreement is in effect. The Semi-annual Report shall be due to the State by August 1. The Semi-annual Report is intended to supplement and update the Annual Progress Report and shall include at least the following: a. Work progress relative to the Project Work Plan milestone schedule, and difficulties encountered during the report period. b. Itemized program element budget expenditure report. The Grantee shall provide a semi-annual update of project spending according to the approved, Itemized Program Element Budget indicating by each budget line item at least the following: 1) cumulative expenditures and in-kind contributions through previous reporting periods 2) expenditures and in-kind contributions for the current reporting period 3) total expenditures Page 10 of 16

11 This report shall be provided in a format acceptable to the State. 14. Final report - Upon completing the requirements of Minn. R and , and the approved Project Work Plan, the Grantee shall develop and provide to the State a final report. The final report shall address at least the information required for the Annual Progress Report as detailed in Section IV., D., 12. of this Agreement and shall summarize and evaluate such information for the entire duration of the Project. Upon project completion the Grantee shall also submit a final financial report showing the source and disposition of all Grant and match funds, and in-kind contributions. 15. Nondiscrimination in employment - During the performance of this Agreement, neither the Grantee, nor those with whom the Grantee subcontracts for all or part of the work to be performed under this Agreement shall, because of age, sexual preference, political affiliation, race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance or disability, discriminate against any person with respect to hire, tenure, compensation, terms of employment, upgrading of employment, facilities, privileges or conditions of employment; refuse to hire persons seeking employment; or, discharge an employee. 16. Nondiscrimination in availability and use of facilities - Neither the Grantee, nor those with whom the Grantee subcontracts for all or a portion of the work to be performed under this Agreement shall exclude any person from participating in, deny them the benefits of, or discriminate against them on the basis of race, color, creed, religion, national origin, sex, marital status, age, sexual preference, political affiliation, or status with regard to public assistance or disability. 17. Affirmative action when applicable - The Grantee certifies that it has received a certificate of compliance from the Commissioner of Human Rights pursuant to Minn. Stat It is hereby agreed between the parties that Minn. Stat is incorporated into this contract by reference. 18. Antitrust - The Grantee hereby assigns to the state of Minnesota any and all claims for overcharges as to goods and/or services provided in connection with this Agreement resulting from antitrust violations which arise under the antitrust laws of the United States and the antitrust laws of the state of Minnesota. 19. Data disclosure - Under Minn. Stat , 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. 20. Project signs - The State shall provide the Grantee with guidance regarding official Project signs. The Grantee shall construct one or more Project signs consistent with the most recent applicable guidance provided by the State. The Grantee shall erect such signs as appropriate sites adjacent to the waters of concern or at appropriate locations along major roadways within the project area. 21. Government data practices - The Grantee and the State must comply with the Minnesota Governmental Data Practices Act, Minn. Stat. 13, as it applies to all data provided by the State in accordance with this Agreement and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Sponsor under this Agreement. The civil remedies of Minn. Stat , apply to the release of the data referred to in this Article by either the Grantee or the State. If the Grantee receives a request to release the data referred to in this Article, 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. 22. Intellectual property rights and ownership of documents and materials - a. Intellectual Property Rights: The State owns all rights, title, and interest in all of the intellectual property rights, including copyrights, patents, trade secrets, trademarks, and service marks in the works and documents created and paid for under this Agreement. Works means all inventions, improvements, discoveries (whether or not patentable), databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, and disks conceived, reduced to practice, created or originated by the Grantee, its employees, agents, and subcontractors, either individually or jointly with others in the performance of this Agreement. Works includes documents. Documents are the originals of any databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other materials, whether in tangible or electronic forms, prepared by the Grantee, its employees, agents, or subcontractors, in the performance of this Agreement. The documents will be the exclusive property Page 11 of 16

12 of the State and all such documents must be immediately returned to the State by the Grantee, at the Grantee's expense, upon written request of the State or upon completion or cancellation of this Agreement. To the extent possible, those works eligible for copyright protection under the United States Copyright Act will be deemed to be works made for hire. The Grantee assigns all right, title, and interest it may have in the works and the documents to the State. The Grantee must, at the request of the State, execute all papers and perform all other acts necessary to transfer or record the State s ownership interest in the works and documents. b. Notification: Whenever any invention, improvement, or discovery (whether or not patentable) is made or conceived for the first time or actually or constructively reduced to practice by the Grantee, including its employees and subcontractors, in the performance of this Agreement, the Grantee will immediately give the State s authorized representative written notice thereof, and must promptly furnish the authorized representative with complete information and/or disclosure thereon. c. Representation: The Grantee must perform all acts, and take all steps necessary to ensure that all intellectual property rights in the Works and Documents are the sole property of the State, and that neither Grantee nor its employees, agents, or subcontractors retain any interest in and to the Works and Documents. The Grantee represents and warrants that the Works and Documents do not and will not infringe upon any intellectual property rights of other persons or entities. Notwithstanding the Liability Clause, the Grantee will indemnify; defend, to the extent permitted by the Attorney General; and hold harmless the State, at the Grantee s expense, from any action or claim brought against the State to the extent that it is based on a claim that all or part of the Works or Documents infringe upon the intellectual property rights of others. The Grantee will be responsible for payment of any and all such claims, demands, obligations, liabilities, costs, and damages, including but not limited to, attorney fees. If such a claim or action arises, or in the Grantee s or the State s opinion is likely to arise, the Grantee must, at the State s discretion, either procure for the State the right or license to use the intellectual property rights at issue or replace or modify the allegedly infringing Works or Documents as necessary and appropriate to obviate the infringement claim. This remedy of the State will be in addition to and not exclusive of other remedies provided by law. The State hereby Grants a limited no-fee, non-commercial license to the Grantee to enable the Grantee s employees engaged in research and scholarly pursuits to make, have made, reproduce, modify, distribute, perform and otherwise use the Works, including Documents, for research activities or to publish in scholarly or professional journals, provided that any existing or future intellectual property rights in the Works or Documents, including patents, licenses, trade or service marks, trade secrets, or copyrights, are not prejudiced or infringed upon, that the Minnesota Government Data Practices Act is complied with, and that individual rights to privacy are not violated. The Grantee shall indemnify and hold harmless the State for any claim or action based on the Grantee s use of the Works and Documents under the provisions of this Clause. Said license is subject to the State s publicity and acknowledgment requirements set forth in this Agreement. The Grantee may reproduce and retain a copy of the Documents for research and academic use. The Grantee is responsible for security of the Grantee s copy of the Documents and compliance with the Minnesota Government Data Practices Act. A copy of any articles, materials or documents produced by the Grantee s employees, in any form, using, or derived from the subject matter of this license, shall be promptly delivered without cost to the State. d. The Grantee agrees to acknowledge the State's funding of any resulting publications, data or other materials, whether subject to copyright or not, with the following language: Funding for this publication (or document, paper, data, etc.) was provided by the Minnesota Pollution Control Agency from the State's Clean Water Partnership Grant Fund. e. Any publicity regarding the subject matter of this Agreement must identify the State as the funding agency and must not be released without written approval from the State's authorized Representative. For purposes of this provision, publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Grantee individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Agreement. 23. Workers' compensation and labor - The Grantee certifies that it is in compliance with Minn. Stat , 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 or agents and any claims made by any third party as a consequence of any act or omission on the Page 12 of 16

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