ENNIS CITY COMMISSION MEETING AGENDA TUESDAY, JUNE 16 ... · city of ennis welcome center . bluebonnet room . 201 nw main . ennis, tx 75119 ... mayor pro tem holland commissioner

Ennis City Commission Agenda June 16, 2020 Page 1 of 3

ENNIS CITY COMMISSION MEETING AGENDA

TUESDAY, JUNE 16, 2020

6:00 P.M. REGULAR MEETING

CITY OF ENNIS WELCOME CENTER BLUEBONNET ROOM

201 NW MAIN ENNIS, TX 75119

As authorized by Section 551.071 of the Texas Government Code - this meeting may be convened into closed Executive Session for the purposes of seeking confidential legal advice from the City Attorney on any item on the agenda at any time during the meeting. The City of Ennis reserves the right to re-align, recess, or reconvene the Regular Session or called Executive Session or order of business at any time prior to adjournment.

NOTICE REGARDING CITY COMMISSION MEETING ATTENDANCE

As authorized by Section 551.127 - one or more Commissioners or employees may attend this meeting remotely using videoconferencing technology. The video and audio feed of the videoconferencing equipment can be viewed and heard by the public at the address posted above as the location of the meeting. Due to the COVID-19 (coronavirus) public health emergency, current orders issued by the City of Ennis, Ellis County, and the Office of Governor Greg Abbott, a satellite viewing room will be made available for members of the public to view and participate in the meeting. Visitors will be asked to keep at least six (6) feet apart from other members of the public and City of Ennis staff. Members of the public who wish to speak during the posted Public Hearings may participate by completing a participation form that will be submitted to the City Secretary prior to the meeting. You will be called upon and allowed to address the Commission when the item you wish to speak on is read. The meeting will also be available for viewing live at: https://www.facebook.com/expectmoreennis/

A. CALL TO ORDER a. Roll Call b. Invocation c. Pledge of Allegiance

B. BRIEFING SESSION/WORKSHOP

• Review Agenda Items • Presentations

a. FY2019 Audited Financial Report – Yeldell, Wilson, Wood & Reeve, P.C. b. Police/Fire Department Radio System c. Valek Road Apartments d. Talley Amusement – Main Street Midway

C. COMMISSIONER UPDATES

Pursuant to Texas Government Code Section 551.0415 the Mayor and Commission may report on the following items: (1) expression of thanks, congratulations or condolences; (2) information about holiday schedules; (3) recognition of individuals; (4) reminders about upcoming City Commission events; (5) information about community events; (6) announcements involving imminent threat to public health and safety.

D. CITIZEN PUBLIC COMMENT PERIOD

E. CONSENT ITEMS 1. Approval of the minutes for the June 2, 2020 City Commission Meeting.

https://www.facebook.com/expectmoreennis/


2. Accept the FY2019 Audited Financial Report as presented.

3. Acknowledge completion of Cyber Security Training for City of Ennis staff as required by House Bill 3834.

F. INDIVIDUAL ITEMS FOR CONSIDERATION

4. Conduct a Public Hearing and consider a Resolution approving a Historic Preservation Grant and Performance Agreement with 3SM Group LLC, for $150,000 to make improvements to the property located at 111 W. Ennis Avenue.

5. Consider authorizing the Mayor and/or his designee to file application for funds from the Coronavirus

Relief Fund or any other Fund providing grants for Coronavirus related costs, including all understandings and assurance contained therein, and act in connection with the application and provide such additional information as may be required.

6. Discuss and consider a Resolution approving a bid award recommendation for 2020 City of Ennis 14”

Reclaimed Waterline Relocation and authorizing the City Manager to execute a contract with Circle H Contractors, LP in a sum not to exceed $188,950.

7. Discuss and consider a Resolution directing the City Manager to calculate the Voter-Approval Tax Rate

in the manner provided for a Special Taxing Unit; and finding and determining that the meeting at which this resolution is passed was noticed and is open to the public as required by law.

8. Discuss and consider a Resolution authorizing the City Manager to seek the services of a firm and

execute the necessary documents to conduct a Compensation Study for City of Ennis employee wages. 9. Discuss and consider a Resolution amending the TexPool authorized representatives.

G. EXECUTIVE SESSION

The City Commission will recess into closed Executive Session pursuant to Texas Government Code: a. Section 551.071(A) – Consultation with Attorney regarding (a) pending litigation and (b) settlement

• Kellenberger vs. City of Ennis, Cause No. 99004 b. Section 551.087 – Economic Development Negotiations

• Master Planned Development

H. RECONVENE INTO OPEN SESSION 10. Discuss and consider taking action necessary as a result of the Executive Session

I. ADJOURNMENT

I, the undersigned authority, do hereby certify that this Notice of Meeting was posted in accordance with the regulations of the Texas Open Meetings Act on the bulletin board located at the entrance to the City of Ennis City Hall, a place convenient and readily accessible to the general public, as well as to the City's website at www.ennistx.gov and said Notice was posted prior to the following date and time: Friday, June 12, 2020; 5:00 P.M. and remained posted for at least two hours after said meeting was convened. ANGIE WADE, TRMC, CMC City Secretary City of Ennis City Council meetings are available to all persons regardless of disability. If you require special assistance, please contact the City Secretary at (972) 875-1234 or write to: PO Box 220, Ennis, TX 75120, at least 48 hours in advance of the meeting.


- PURSUANT TO SECTION 30.07, PENAL CODE (TRESPASS BY LICENSE HOLDER WITH AN OPENLY CARRIED HANDGUN), A PERSON LICENSED UNDER SUBCHAPTER H, CHAPTER 411, GOVERNMENT CODE (HANDGUN LICENSING LAW), MAY NOT ENTER THIS MEETING ROOM WITH A HANDGUN THAT IS CARRIED OPENLY. - CONFORMIDAD CON LA SECCION 30.07 CODIGO PENAL (PREVARICACION POR EL TITULAR DE LA LICENCIA CON UNA ARMA DE MANO LLEVADA ABIERTAMENTE), UNA PERSONA CON LICENCIA BAJO EL SUBCAPITULO H, CAPITULO 411, CODIGO DE GOBIERNO (LEY DE LICENCIAS ARMA DE MANO), NO PUEDE ENTRAR A LA SALA DE REUNION CON UNA ARMA DE MANO QUE ES LLEVADO ABIERTAMENTE. - PURSUANT TO SECTION 30.06, PENAL CODE (TRESPASS BY HOLDER OF LICENSE TO CARRY A CONCEALED HANDGUN), A PERSON LICENSED UNDER SUB-CHAPTER H, CHAPTER 411, GOVERNMENT CODE (CONCEALED HANDGUN LAW), MAY NOT ENTER THIS PROPERTY WITH A CONCEALED HANDGUN - ACUERDO CON LA SECCION 30.06 CODIGO PENAL (PREVARICACION POR EL TITULAR DE LA LICENCIA PARA LLEVAR UNA ARMA OCULTA), UNA PERSONA CON LICENCIA BAJO EL SUBCAPITULO H, CAPITULO 411 CODIGO DEL GOBIERNO (LEY ARMAS OCULTAS), NO PUEDE ENTRAR A ESTA PROPIEDAD CON UN ARMA OCUL TA

PRESENTATIONS

Police/Fire Department Radio System Presentation Summary

The Ennis Police and Fire Departments currently communicate via radio on a City of

Ennis owned two channel very high frequency (VHF) radio repeater system. This

system has been in continuous operation for 40+ years with very little system

maintenance other than end user radios. This system has coverage limitations within

our current City Limits. Many times, personnel on portable radios CANNOT

communicate with other units due to geographical limitations with a single broadcast

point.

Following September 11, 2001, radio technology changed drastically as a result of many

failures experienced that day. New technology along with an emphasis on

interoperability allowed for better communication between neighboring jurisdictions or

agencies. In 2006, we last upgraded our current system to accommodate the Federal

Communication Commission (FCC) mandate requiring public safety move from wide

band VHF to narrow band VHF system. This initially improved our interoperability

with neighboring departments.

In 2012, Congress re-allocated the broadcast spectrum and dedicated it to Public Safety

for use as a Public Safety Broadband Network. This change mandated Project 25 (P25) a

suite of standards for digital mobile radio communications. P25 adds encryption so that

public safety communications are secure and not readily available to the public. There

is an “industry’ expectation that radio systems should plan on using this spectrum when

replacing radio systems.

In June 2017, the cities of Midlothian and Red Oak moved to the Fort Worth Regional

Radio System, a digital, 7/800 mHz P25 multi-county trunked radio system located in

Tarrant, Johnson, Denton, Dallas and now Ellis counties. Midlothian and Red Oak

quickly realized the advantages of the new system and shared their findings with Ellis

County. In 2019 Ellis County along with the City of Waxahachie elected to join the Fort

Worth Regional Radio system and form the Ellis County Radio System, a subsidiary of

the Fort Worth Regional Radio System. Ellis county and the City of Waxahachie are

expected to be online by early 2021. As neighboring departments are moving away from

VHF, our interoperability is fading fast. Without action, we will only be able to

communicate with ourselves in 2023.

The City of Ennis has the option to join the newly formed Ellis County Radio System for

the cost of subscriber equipment (radios) and annual maintenance fees. The cost for

infrastructure required to build out the system has been funded by Ellis County and the

City of Waxahachie.

The system has been designed with the capacity to serve all entities in Ellis County,

including Ennis and surrounding area Volunteer Fire Departments. Below are a few

advantages of joining the Ellis County Radio System.

● Improved system performance

○ Greater coverage (95% coverage from the hip)

● Improved Safety

○ Secure communications (encrypted)

○ User ID

○ Emergency alert capable

● Interoperability

○ Ability to communicate with mutual aid departments

■ Waxahachie Fire and Police

■ Ellis County Sheriff's Office

■ Volunteer fire departments

As you will see on the map below, the purple represents proposed coverage of the new

system. The entire city limits of Ennis are included. In addition, coverage extends

beyond our city limits ensuring adequate coverage for years to come.

The proposed cost to join the Ellis County Radio System is proposed to cost $1,169,803.

This includes all new dispatch equipment, new mobile radios for all police and fire

vehicles, as well as portable radios for police and fire personnel. If approved, we

anticipate a go live date of, summer 2021.

The majority of funding for the system is derived from cost savings related to

construction of the new Public Safety Facility.

Do we elect to join the Ellis County Radio System and drastically improve our ability to

communicate, or do we continue maintenance of our existing outdated equipment?

If we elect to stay on our current system, we will sacrifice the safety of our police officers

and firefighters. In addition, we will be the only public safety organization in the county

on a VHF system as of 2021.

The annual maintenance costs associated with the system will total between $100-150K

beginning in year number two.

MEETING DATE: ITEM NO.

AGENDA ITEM:

SUBMITTED BY:

SUMMARY:

FUNDING:

RECOMMENDEDMOTION:

MOTION SECOND AYE NAYNAME:MAYOR JUENEMANN MAYOR PRO TEM HOLLAND COMMISSIONER PRUITT COMMISSIONER HERNANDEZ COMMISSIONER HEJNY COMMISSIONER WATSON COMMISSIONER HONZA

AGENDA SUMMARY FORM

6/16/2020 1

APPROVAL OF THE MINUTES OF THE JUNE 2, 2020 REGULAR CITY COMMISSION MEETING.

ANGIE WADE, CITY SECRETARY

MOTION TO APPROVE IS RECOMMENDED BY STAFF

N/A

ENNIS CITY COMMISSION REGULAR SESSION MINUTES TUESDAY, JUNE 2, 2020

A. CALL TO ORDERMayor Juenemann called a Regular Session of the Ennis City Commission to order on Tuesday, June2, 2020 at 6:12 P.M. in the Ennis Welcome Center, Bluebonnet Room, 201 NW Main, Ennis, Texas75119.

A quorum was present to wit: Mayor Juenemann absent Commissioner Hejny present via zoom Mayor Pro Tem Holland present Commissioner Watson present Commissioner Pruitt present Commissioner Honza present via zoom Commissioner Hernandez present

The invocation was given by Assistant Public Works Director Ed Green Pledge of Allegiance was led by Mayor Pro Tem Holland

B. COMMISSION UPDATESMayor Pro Tem provided information on a Blood Drive hosted by Unity in the Community and EnnisFire Department to be held Saturday June 13th from 10am – 3pm.

C. CONSENT ITEMS1. Approval of the minutes for the May 19, 2020 City Commission Meeting.Mayor Pro Tem Holland read the consent agenda item. Commissioner Hernandez made a motion,seconded by Commissioner Pruitt, to approve the consent agenda as read. A vote was cast, 6 in favor0 against. Motion passed.

D. PUBLIC HEARING2. Conduct a Public Hearing and first reading to consider approving a HistoricPreservation Grant to make improvements to the building and property at 111 W. EnnisAvenue.Mayor Pro Tem Holland read the item. City Manager Nelson provided photos of the proposedimprovements to the property and stated that it is a $822,000 project and qualifies for $150,000 ingrant funds. Mayor Pro Tem Holland opened the public hearing; no one spoke and the public hearingwas closed.

E. INDIVIDUAL ITEMS FOR CONSIDERATION3. Conduct a Public Hearing and consider a approval of an Ordinance amending the EnnisEconomic Development Corporation FY20 budget to provide $20,000 to fund Project GameRoom.Mayor Pro Tem Holland read the item. City Manager Nelson informed the Commission that thebusiness would bring 10 – 12 jobs; project was for plumbing and grease traps at $184,000; andqualifies for a $20,000. Mayor Pro Tem Holland opened the public hearing, no one spoke and thepublic hearing was closed. Commissioner Watson made a motion, seconded by Commissioner Hejny,to approve an ordinance amending the EDC FY20 budget to provide $20,000 to fund ProjectGameroom. A vote was cast, 6 in favor, 0 against. Motion passed.

4. Discuss and consider a resolution approving Project Library Sign and authorizing thecity manager to expend funds as necessary to complete the project.Mayor Pro Tem Holland read the item. Mr. Nelson stated that the City wanted to purchase a digital,2 sided sign to be located in front of the library and that theTX Department of Transportation permithad been granted. Sign cost is estimated at $150,000, seeking approval for $200,000 for contingency.Commissioner Hernandez made a motion, seconded by Commissioner Honza, to approve thepurchase of a digital library sign and to provide $200,000 in funding. A vote was cast, 6 in favor, 0against. Motion passed.

Commissioner Marco Hernandez introduced Daniel Hernandez, 707 N. McKinney. Daniel informed the City Commission a peaceful march for ‘Black Lives Matter’ was going to be held Saturday, June 6th at 2 PM. The march will begin at the Historic Downtown Public Parking lot and will end with a ‘Moment of Silence’ at Minnie McDowell Park.

F. ADJOURNMENTWith no other business before the Commission, Mayor Pro Tem Holland declared the meetingadjourned at 6:30 P.M.

ATTEST: APPROVED:

CITY SECRETARY MAYOR


AGENDA ITEM:

SUBMITTED BY:

SUMMARY:

FUNDING:

RECOMMENDEDMOTION:

NAME: MOTION SECOND AYE NAYMAYOR JUENEMANNMAYOR PRO TEM HOLLANDCOMMISSIONER PRUITTCOMMISSIONER HERNANDEZCOMMISSIONER HEJNYCOMMISSIONER WATSONCOMMISSIONER HONZA

DURING THE PRESENTATION PORTION OF THIS COMMISSION MEETING THE AUDITING FIRM YELDELL, WILSON, WOOD & REEVE, P.C. WILL PRESENT THE FISCAL YEAR 2019 AUDITED ANNUAL FINANCIAL REPORT. THE COMMISSION WILL HAVE THE OPPORTUNITY TO ASK QUESTIONS AND DISCUSS.

AGENDA SUMMARY FORM

6/16/2019

ACCEPT / APPROVE THE FY 2019 AUDIT AS PRESENTED BY YELDELL, WILSON, WOOD & REEVE, P.C.

STEPHEN BARNES, FINANCE DIRECTOR

2

Government Auditing Standards

Qualitative Aspects of Accounting Practices

Difficulties Encountered in Performing the Audit

Corrected and Uncorrected Misstatements

Disagreements with Management

Management Representations

Management Consultations with Other Independent Accountants

Other Audit Findings or Issues

Certified Public Accountants

Yeldell, Wilson, Wood & Reeve, P.C.

CITY OF ENNIS, TEXAS



Required Supplementary Information

Other Information

Certified Public Accountants

Yeldell, Wilson, Wood & Reeve, P.C.

P.O. Box 220 • Ennis, Texas 75120 • (972) 878 1234 • FAX (972) 875 9086www.ennistx.gov

net position

unassigned fund balance

government-wide financial statements

Governmental Funds. Governmental fundsgovernmental activities

near-term inflows and outflows of spendable resources, balances of spendable resources

governmental fundsgovernmental activities

governmental funds governmental activities.

primary government

fund

statement of net position

statement of activities

regardless of the timing of related cash flows.

governmental activities

business-type activities

Proprietary Funds. enterprise fundsbusiness-type activities

Internal service funds

required supplementary information

Governmental Funds. governmental funds

Proprietary Funds.

Final budget compared to actual results.


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Governmental activities,

business-type activities,primary government

component units

Ennis Economic Development Corporation, Inc.


Ennis Industrial Development Corporation, Inc.


general fund

QIPP fund

debt service fund

Internal service funds

utility fund

capital projects fund

Certificates of Obligation Series 2019 fund

Certificates of Obligation Series 2019A


current financial resources economic resources.

economic resourcesmeasurement focus accrual basis of accounting.

current financial resourcesmeasurement focus modified accrual basis of accounting.


Budgetary basis of accounting

Cash and cash equivalents

Investments

economic resources measurement focusaccrual basis of accounting.


Restricted assets

Inventories and prepaid items


Capital assets


Deferred outflows/inflows of resources

deferred outflows ofresources,

deferred inflows of resources,

unavailable revenues


Long-term obligations

Net position flow assumption

Restricted net position

Unrestricted net position

Net investment in capital assets


Fund balance flow assumption

Nonspendable fund balance

Restricted fund balance

Assigned fund balance

Unassigned fund balance—

Committed fund balance


Library Endowment

Deficit fund equity

Program revenues

program revenues


Property taxes

Compensated absences

Proprietary funds operating and nonoperating revenues and expenses

operating nonoperating


5. Pensions and Other Post Employment Benefits (OPEB)

6. Self-Insurance


Concentration of credit risk.

Investments,



Governmental activities:


Business-type activities:







1. Operating lease (as lessor)

2. Capital lease (as lessee)


Governmental Activities:


Business-type Activities:

Governmental Activities:

Business-type Activities:




Minimum fund balance policy.



1. Ennis Economic Development Corporation, Inc. (Corporation)





Sales Tax Revenue Bonds


Subsequent events



www.tmrs.com.


Employees covered by benefit terms


Actuarial assumptions



Discount Rate

Changes in the Net Pension Liability


Pension Plan Fiduciary Net Position

Payables to the Pension Plan

www.tmrs.com.


www.tmrs.com.


Actuarial assumptions and other inputs


Changes in the Total OPEB Liability





Museum Fund

Forfeited Contraband Fund

Law Enforcement Education Fund

COPS More Grant Fund

Police Donation

Tourism Fund

Court Technology Fund

COE 2010 Trust Library

Crime Control & Prevention District

Court Security Fund

Street Maintenance

Tax Increment Reinvestment Zone #1 Fund

Fire Donation

Parks Donation

Tax Increment Reinvestment Zone #2 Fund

Employee Appreciation

Library Endowment Fund

2012 Street Construction Fund

Airport Construction Fund



CIT

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CIT

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CIT

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CIT

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CIT

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CIT

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Utility Fund

Sanitation Fund

Airport Fund






Source: Ellis Appraisal District.

(a)


In the event the City changes its policy to pay this general obligation debt service from other revenue sources, or such revenues are not sufficient to pay debtservice on such obligations, the City will be required to levy an ad valorem tax to pay such debt service.



(a) Includes all self-supporting debt.

Note:

Note:

(d) Excludes all self-supporting debt.

(c) Includes only self-supporting debt paid by the Crime Control Prevention District (CCPD).

(b) Includes only self-supporting debt paid from Water and Sewer System (the "System") revenues.


(a) Excludes self-supporting general obligation debt.(b) Does not include delinquent tax collections, penalties and interest on delinquent tax collections or investment earnings.

(a) Includes self-supporting debt

CITY

OF

ENN

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(a) A

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Valu

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Source: Ellis Appraisal District and the City of Ennis, Texas.



(a) Assessed Valuations may change during the year due to various supplements and protests, and valuations on a later date.


Source: Texas Comptroller of Public Accounts website.Note: The Comptroller's website figures list sales tax revenues in the month they are delivered to the City, which is two months after they are generated/collected.


Source: City of Ennis, Texas


AGENDA ITEM:

SUBMITTED BY:

SUMMARY:

FUNDING:

RECOMMENDEDMOTION:NAME: MOTION SECOND AYE NAYMAYOR JUENEMANNMAYOR PRO TEM HOLLANDCOMMISSIONER PRUITTCOMMISSIONER HERNANDEZCOMMISSIONER HEJNYCOMMISSIONER WATSONCOMMISSIONER HONZA

MOTION TO APPROVE IS RECOMMENDED BY STAFF

HOUSE BILL 3834 REQUIRES ALL LOCAL GOVERNMENT EMPLOYEES WHO HAVE ACCESS TO A CITY COMPUTER, OR WHO ARE ISSUED A CITY EMAIL ADDRESS TO COMPLETE A CYBER SECURITY TRAINING PROGRAM APPROVED BY THE TEXAS DEPARTMENT OF INFORMATION RESOURCES. CITY OF ENNIS CONTRACTED WITH DARK WEB ADVISORS TO PROVIDE THE REQUIRED TRAINING. ACTION BY THE CITY COMMISSION ACKNOWLEDGING COMPLIANCE WITH HB3834 IS REQUIRED BY LAW. THE ATTACHED FORM IS FOR STAFF RECORD ONLY; AN ONLINE SUBMISSION OF ACKNOWLEDGEMENT WILL ALSO BE REQUIRED.

AGENDA SUMMARY FORM

6/16/2020

ACKNOWLEDGE COMPLETION OF CYBERSECURITY TRAINING FOR CITY OF ENNIS EMPLOYEES AS REQUIRED BY HOUSE BILL 3834

ANGIE WADE, CITY SECRETARY

3

This form does not need to be submitted to the Texas Department of Information Resources. It is for your records.

CITY OF ENNIS, TX

House Bill 3834 Certification for Local Governments

According to Section 2054.5191, Government Code, the governing body of a local government, shall: • verify and report on the completion of a cybersecurity training program by employees of the local

government, and• require periodic audits to ensure compliance with this section.

By signing below, you indicate that you agree with the following statements: • I certify that the local government is in compliance with the employee security awareness training

requirements of Section 2054.5191, Government Code.• I certify that the local government is in compliance with the audit requirements of Section 2054.5191,

Government Code.

Signature Date

Printed Name Title

Signature Date

Printed Name Title

Signature Date

Printed Name Title

Signature Date

Printed Name Title

Signature Date

Printed Name Title

Signature Date

Printed Name Title

E

MEETING DATE:

AGENDA ITEM:

SUBMITTED BY:

SUMMARY:

FUNDING:

RECOMMENDED

MOTION:

NAME:

MAYOR JUENEMANN

AGENDA SUMMARY FORM

cc 6/16/2020 ITEM NO.

PUBLIC HEARING: Conduct a public hearing and consider approval of a resolution approving an

historic preservation grant, a type B economic development project and performance

agreement with 3SM Group, LLC in an amount $150,000.00 to make improvements to the

building and property at 111 W Ennis Ave.

Rhonda Winters-Administrative Assistant for Economic Development

Public Hearing - Second Reading - FOR ACTION

SUMMARY: This action is authorized by Ordinance 17-1205-05. This is the first of two public

hearings required to approve an historic preservation grant for 111 W Ennis Ave. The historic

preservation grant program has, since its inception, stimulated private investment in the

historic downtown. The grant program is the primary incentive driving downtown revitilization.

REFERENCES: Project approval checklist

Notice of public hearings

Resolution

Performance agreement

HP Grant application packet

Funded by the EDC "Historic Preservation Grants"

EDC and Staff Recomend Approval

MOTION SECOND AYE NAY

MAYOR PROTEM HOLLAND

COMMISSIONER PRUITT

COMMISSIONER HERNANDEZ

COMMISSIONER HEJNY

COMMISSIONER WATSON

COMMISSIONER HONZA

4

Economic Development Project Approval Process

Definition:

1. An economic development project is any economic development expenditure in excess of $10,000 not

previously identified and approved in the annual Economic Development Corporation (EDC) budget.

Exceptions:

1. Expenditures for normal operating, maintenance and repair activities are exempted.

2. Expenditures for the acquisition, exchange or sale of real-estate are exempted with special provisions.

(see special provisions)

3. Expenditures for Type A projects do not require a sixty (60) day waiting period.

Special Provisions:

1. Projects that include the acquisition, exchange or sale of real-estate:

a. Will be reviewed with the Economic Development Corporation and City Commission in executive

session prior to any formal commitment of action (whether to sell or acquire)

b. These projects will then be approved by both the EDC and CC using a code name that protects

the identity of the parties involved and ensures the best stewardship of public funds.

Project Approval Process:

Notes:

Economic Development Corporation:

Action

• Agenda Item

• Public notice of public hearing• Public hearing

• Action authorized

City Commission:

Action

• Agenda Item

• Public notice of public hearing

• Public hearing & First reading

• Public notice of public hearing

• Public hearing & Second reading

• Action authorized

Method of Communication

Agenda (City Hall & Web Site)

Local newspaper

Conducted during meeting

Minutes (posted on web site)

Method of Communication

Agenda (City Hall & Web Site)

Local newspaper


Local newspaper


Minutes (posted on web site)

Resolution/ Ordinance File

1. Public notices will include: Purpose, Location (if there is a specific location) and Amount

2. Public hearing notices required for the City Commission can be combined into one newspaper

publication (with both dates specified)

NOTICE OF PUBLIC HEARINGS

ENNIS CITY COMMISSION

ENNIS ECONOMIC DEVELOPMENT CORPORATION

"HISTORIC PRESERVATION GRANT"

Public hearings will be held before the City Commission of the City of Ennis on Tt1esday, June 2,

2020 and Tuesday, June 16, 2020 at 6:00 P.M. and the Economic Development Corporation, a

Type B corporation, on Tuesday, June 9, 2020 at 4:00 P.M. in the Bluebonnet Room at the

Welcome Center, 201 W Knox Street, Ennis, Texas, 75119, to hear testimony and consider

written evidence whether or not a Historic Preservation grant, a Type B Project, should be

approved by the EDC and City Commission of the City of Ennis, Texas. The purpose of the grant

is for property improvements to 111 W Ennis Ave.

It is requested you make your views known either in person or by writing to Marty Nelson, Economic Development Director, [email protected].

Publish on Sunday, May 24, 2020

RESOLUTION NO. ---

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF ENNIS,

TEXAS, APPROVING A TYPE B ECONOMIC DEVELOPMENT

PROJECT AND PERFORMANCE AGREEMENT, BY AND BETWEEN

THE ENNIS ECONOMIC DEVELOPMENT CORPORATION, AND 3SM

GROUP LLC, TO PROVIDE A FINANCIAL INCENTIVE NOT TO

EXCEED $150,000.00 FOR ECONOMIC DEVELOPMENT PURPOSES

LOCATED AT 111 W ENNIS AVE., AUTHORIZED PURSUANT TO

SECTION 505.158 OF THE TEXAS LOCAL GOVERNMENT CODE; AND

PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE.

WHEREAS, the Ennis Economic Development Corporation (hereinafter referred to as the "EEDC") is a Type B economic development corporation, created pursuant to Chapter 505 of the Texas Local Government Code, as amended; and

WHEREAS, Section 505.158 of the Texas Local Government Code provides that "for a Type B corporation authorized to be created by a municipality with a population of 20,000 or less, "project" also includes the land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements found by the corporation's board of directors to promote new or expanded business development." Further, the statute provides that "[a] Type B corporation may not undertake a project authorized by this section that requires an expenditure of more than $10,000 until the governing body of the corporation's authorizing municipality adopts a resolution authorizing the project after giving the resolution at least two separate readings"; and

WHEREAS, EEDC has approved a project with 3SM GROUP LLC and the Performance Agreement which is attached hereto as Exhibit A; and

WHEREAS, the City Commission of the City of Ennis, Texas, finds and determines that the expenditure as specified in the Performance Agreement, will promote new or expanded business development, and otherwise meets the definition of "project," as that term is defined by Section 505.158 of the Texas Local Government Code.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY

OF ENNIS, TEXAS, AS FOLLOWS:

SECTION 1. That the foregoing recitals are hereby found to be true and correct findings of the City of Ennis, Texas, and are fully incorporated into the body of this Resolution.

SECTION 2. That the City Commission of the City of Ennis, Texas, finds and determines that

the project will promote new and expanded business development, and is otherwise consistent with Section 505.158 of the Texas Local Government Code.

SECTION 3. That the City Commission of the City of Ennis, Texas, following the second reading of this Resolution authorizes the project, Performance Agreement, and authorizes the Mayor to execute this Resolution.

SECTION 4. That this Resolution shall become effective from and after its passage.

PASSED and APPROVED on first reading the 2rd day of June, 2020

PASS ED and APPROVED on second reading the 16th day of June, 2020.

ATTEST:

ANGIE WADE, City Secretary City of Ennis, Texas

ANGELINE JUENEMANN, Mayor City of Ennis, Texas

Exhibit A

Performance Agreement

CITY OF ENNIS, TEXAS P.O. Box 220 • Ennis, Texas 75120 • (972) 878-1234 • FAX (972) 875-9086

www.EnnisTx.Gov

THE STATE OF TEXAS

COUNTY OF ELLIS

111 W Ennis Ave (PID 158044)

X X X

PERFORMANCE

AGREEMENT

For and in consideration of the mutual promises, covenants, stipulations, agreements and

understandings, the receipt and sufficiency of which is hereby acknowledged by each of the

undersigned, the City of Ennis, Texas (hereinafter referred to as the "City") and 3SM Group LLC,

hereby mutually promise, covenant, stipulate, agree and understand as follows:

SECTION I.

3SM Group LLC has applied for a grant in the amount of ONE HUNDRED FIFTY THOUSAND

DOLLARS and 00/100 ($150,000.00) from the City and the Ennis Economic Development

Corporation (EEDC) as part of the rehabilitation of a building owned by 3SM Group LLC located

at 111 W Ennis Ave. pursuant to City Ordinance 17-12Q5-05 (hereinafter referred to as the

"Ordinance"). The City and EEDC has each approved such grant, subject to 3SM Group LLC

performance as hereinafter set forth. In connection with 3 SM Group LLC grant application, 3 SM

Group LLC has submitted its rehabilitation plan, specifications and other documents, all are

incorporated herein by reference for all purposes. 3SM Group LLC performance will be secured

by two letters of credit, as appropriate and if applicable. The first letter of credit covers the period

of time during the "reconstruction phase", in the amount of half of the grant award. The second

letter of credit covers the period of time during the "occupancy phase", in the amount of half of

the grant award. 3 SM Group LLC provides assurance and commitment to provide the first letter

of credit "reconstruction phase", prior to the initial grant disbursement, provided an initial grant

disbursement is requested by 3SM Group LLC. 3SM Group LLC provides assurance and

commitment to provide the second letter of credit "occupancy phase", within 14 days of receiving

a Certificate of Occupancy. The first letter of credit will terminate upon issuance of the second

letter of credit. The second letter of credit will terminate two years from the date of the final

certificate of occupancy.

SECTION II.

3SM Group LLC performance shall occur in two phases - the reconstruction phase and the

occupancy phase. 3SM Group LLC shall complete the reconstruction phase on or before June 16,

2021, at which time the City may issue a Certificate of Occupancy. The occupancy phase will

terminate two (2) calendar years from the date the final Certificate of Occupancy is issued. 3SM

Group LLC will have two (2) years from the date of the issuance of the final Certificate of

Occupancy to comply with the occupancy requirement specified in the Ordinance. 3SM Group

LLC acknowledges that its members have read and understood the said Ordinance, including but

not limited to, the City's right to recapture the grant funds in the event of 3SM Group LLC

default.

SECTION III.

Any failure of 3SM Group LLC to timely and fully perform any of its obligations,

responsibilities, plans, specifications under said Ordinance, or under this agreement shall be a

default. The City shall give written notice of default to 3SM Group LLC by personal delivery or

by deposit into the United States Postal Service and addressed to 3SM Group LLC:

3SM Group LLC 1905 W Ennis Ave., Ste. 204

Ennis, TX 75119

Notice shall be effective when deposited. 3SM Group LLC may change its address by delivering

written notice to the City in the same manner as set forth above and addressed to the City:

City Manager POBox220

Ennis, Texas 75120

3SM Group LLC will have sixty (60) days from the date of said notice to fully cure the default.

SECTION IV.

A. The text herein, including the provisions of the Ordinance, shall constitute the entire

agreement between the parties with respect to the subject matter hereof and supersedes any

prior discussions or negotiations between the parties hereto. No amendment or alteration of

the Agreement shall be enforceable unless reduced to writing and executed by both parties.

B. This Agreement shall be binding upon and injure to the benefit of the parties hereto and each

of their respective heirs, assigns and successors in interest.

C. If any provision, or portion thereof, contained in the Agreement is held unconstitutional,

invalid or unenforceable, the remainder of the Agreement, or portion thereof, shall be deemed

severable, shall not be affected, and shall remain in full force and effect.

D. This Agreement shall be construed in accordance with the laws of the State of Texas. This

Agreement is performable in the City of Ennis, Ellis County, Texas. Venue for any action

arising out of this Agreement shall be in Ellis County, Texas.

Effective the ______ day of _______ _, 20

3SM Group LLC

Owner

City of Ennis, Texas

City Manager

., ENNI

T�XA.S

/,(r. ,tt,,,£..,.11r/y,,,;/,(l;;o,,

City of Ennis

Historic Preservation Grant Application

In accordance with City of Ennis Ordinance 17-1205-05, Historic Preservation Projects, the following application is made for a

Historic Preservation Grant,

Property Address:

111 We$-/ E1v,..;,� A-ve.Nu.e

Grant Amount Requested:

City of Ennis

Historic Preservation Grant

In accordance with City of Ennis Ordinance 17-1205-05, Historic Preservation Projects, the following attachments are required

for the grant application to be reviewed.

Packet Contents Check-List

Required attachments

Application Form (!jN

List of owners, investors and corporate officers with contact information (!jN

Record plat of property and legal description �

Conceptual plan of improvements and intended uses G)N

Architectural drawings of all building elevations CJ} Five year business plan (pro forma) G)N

Detailed cost estimate (prepared by registered engineer or architect) �

Performance guaranty assurance form �

Property insurance assurance form Q'jN

Sales tax assurance form �

Grant recapture assurance form 0}N

Historic Preservation Grant Application ♦

ENNIS I, ,.,.,.\._

/,(.. ✓/.d.-,/}.,,t-/1��

• • • , • • ! ' '

I ,, • 1 1• qf ' '.I I t I ' , \ • , ,

Legal Name of Applicant/Property Owner, Address and Contact Information

Legal Name: Property Address: Malling Address, Phone and Email:

3 SIY) G r"<>-f, Ll.. C irl W. 'tNN IS v:+;'1<- IVO.S i-J. Gr-J tvi:; SW 'j 2.0 )ii'

Current Appraised Property Value, Project Cost and Grant Amount Requested

Appraised Property Value: ?reject Cost: t J-;;)... 1 CJ c:C . <;:_)

Grant Amount Requested:

./<3? J. 1 C/S().�n_.-,,,

,. -..., c,..,/ c.../(J (!)_ -'7{ /,.:;� Cc· 6_

Grant Award Limits

Approved Investment Maximum Award

$15,000 or Greater 20% up to $150,000

The items/ documents listed below must be attached for this application to be considered.

List of owners, investors and corporate officers with contact information?

Record plat of property with address and legal description?

Conceptual plan of proposed improvements with intended uses identified ?

Architectural drawings of all building elevations?

Five year business plan (pro forma):

Detailed cost estimate for the project (Prepared by Registered Engineer or Architect)

Performance bond, Irrevocable letter of Credit or acceptable Guaranty?

Property Insurance certificate?

Reviews Application Complete

by:

Economic Development date:

by:

Building Inspection date:

by:

Finance date:

by:

Architect date:

Submittal Information:

signature: date: Submitted By:

Received By:

Av<.

-

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

3SM Group, LLC

Tax ID: 83-2981756

Owners: Michael B. French 1905 W Ennis Avenue, Ste 204, Ennis, Texas 7S119 972-814-6670

Shelli L. French 2402 Country Club Rd, Ennis, Texas 75119 469-658-9419

Steve Medina 117 Crescent View Drive, Ennis, Texas 75119 214-334-2467

Stephanie Medina 117 Crescent View Drive, Ennis, Texas 75119 214-335-8460

25% each

5/1/2020 Ellis CAD Property Search

Ellis CAD Property Search

Property ID: 158044 For Year 2019 .·- •--· •· _ _ __ : .,_ •.. __ . ; _,,--.,_._.., _ . .. --. � .tP,...:.-.� .a: .... ,. _ ., .,, _______________ _

9Map

https:J/esearch.elliscad.com/PropertyNiew/158044 1/5


,t Property Details

Account

Property ID:

Legal Description:

Geographic ID:

Agent:

Type:

Location

158044

LOT 11-14 BLK 10 0 TENNIS-REV .264 AC

25.2001.010.011.00.903

71

Real

Address: 111 W ENNIS AVE ENNIS, TX 75119

Map to: 2a-11

Neighborhood CD: COMM

Owner

Owner ID:

Name:

Maillng Address:

% Ownership:

Exemptions:

171077

3SM GROUP LLC

117 N DALLAS ST

ENNIS, TX 75119-4009

100.0%

For privacy reasons not all exemptions are shown online.

https:l/esearch.elllscad.com/PropertyNiew/158044 215

5/1/2020

JIii Property Values

Improvement Homeslte Value:

Improvement Non-Homesite Value:

Land Homesite Value:

Land Non-Homesite Value:

Agricultural Market Valuation:

Market Value:

Ag Use Value:

Appraised Value:

Homestead Cap Loss: 0

Assessed Value:

EHis CAD Property Search

$0

$257,950

$0

$115,000

$0

$372,950

$0

$372,950

$0

$372,950

DISCLAIMER Information provided for research purposes only. Legal descriptions and acreage amounts are

for appraisal district use only and should be verified prior to using for legal purpose and or documents.

Please contact the Appraisal District to verify all information for accuracy.

� Property Taxing Jurisdiction

Entity Description Tax Rate Market Taxable Estimated

Value Value Tax

070 ELLIS COUNTY 0.329557 $372,950 $372,950 $1,229.08

203 ENNIS ISO 1.488350 $372,950 $372,950 $5,550.80

325 CITY OF ENNIS 0.724473 $372,950 $372,950 $2,701.92

R70 ELLIS COUNTY LATERAL 0.030976 $372,950 $372,950 $115.52

ROAD

Total Tax Rate: 2.573356 Estimated Taxes With Exemptions: $9,597.33 Estimated Taxes Without

Exemptions: $9,597.33

https://esearch.elliscad.com/PropertyNiew/158044

Freeze

Ceiling

3/5


11111 Property Improvement- Building

Description: COMMERCIAL Type: Commercial State Code: F1 Living Area: 14,136.00sqft

Value: $0

Type

COMM

COMM

CP

Description

COMMERCIAL

COMMERCIAL

COVERED PORCH

" Property Land

Type Description Acreage

Class CD

MRAC

MRAC

Year Built

1920

1920

1920

SQFT

11,286.00

2,850.00

792.00

Sqft Eff Front Eff Depth Market Value Prod. Value

SOFT PER SQUARE FOOT 0.264 11,500.00 0.00 0.00 $0 $0

IJII Property Roll Value History

Year Improvements Land Market Ag Valuation Appraised HS Cap Loss Assessed

2020 N/A N/A NIA N/A N/A N/A

2019 $257,950 $115,000 $0 $372,950 $0 $372,950

2018 $252,320 $115,000 $0 $367,320 $0 $367,320

2017 $251,910 $115,000 $0 $366,910 $0 $366,910

2016 $252,810 $115,000 $0 $367,810 $0 $367,810

2015 $252,030 $115,000 $0 $367,030 $0 $367,030

2014 $275,030 $92,000 $0 $367,030 $0 $367,030

2013 $275,030 $92,000 $0 $367,030 $0 $367,030

2012 $275,030 $92,000 $0 $367,030 $0 $367,030

2011 $257,060 $92,000 $0 $349,060 $0 $349,060

https://esearch.elliscad.com/PropertyNiew/158044 4/5


AGENDA ITEM:

SUBMITTED BY:

SUMMARY:

FUNDING:

RECOMMENDED

MOTION:


AGENDA SUMMARY FORM

6/16/2020

“Consider authorization of the Mayor and/or her designee to file application for funds from the Coronavirus Relief Fund or any other funds providing grants for Coronavirus related costs, including all understandings and assurance contained therein, and act in connection with the application and provide such additional information as may be required.”

The grantee certifies that it possesses legal authority to apply for the grant. A resolution, motion or similar action has been or will be duly adopted or passed as an official act of the applicant’s governing body, authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative, or their designee of the organization to act in connection with the application and to provide such additional information as may be required.

5

P a g e 1 | 23

CORONAVIRUS RELIEF FUND (CRF) TERMS AND CONDITIONS

TEXAS DIVISION OF EMERGENCY MANAGEMENT

MAY 11, 2020

P a g e 2 | 23

About This Document

In this document, grantees will find the terms and conditions applicable to payments distributed in the form of grants to local units of governments from the Coronavirus Relief Fund established within section 601 of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

These requirements are in addition to those that can be found within the Grant Management System (GMS), to which grantees agreed to when accepting the grant. Other state and federal requirements and conditions may apply to your grant, including but not limited to: 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Chapter 783 of the Texas Government Code; the Uniform Grant Management Standards (UGMS) developed by the Comptroller of Public Accounts; the state Funding Announcement or Solicitation under which the grant application was made; and any applicable documents referenced in the documents listed above.

To the extent the terms and conditions of this grant agreement do not address a particular circumstance or are otherwise unclear or ambiguous, such terms and conditions are to be construed consistent with the general objectives, expectations and purposes of this grant agreement and in all cases, according to its fair meaning. The parties acknowledge that each party and its counsel have reviewed this grant agreement and that any rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this grant agreement. Any vague, ambiguous or conflicting terms shall be interpreted and construed in such a manner as to accomplish the purpose of the grant agreement.

P a g e 3 | 23

Table of Contents About This Document ............................................................................................................................... 2

1 Grant Agreement Requirements and Conditions ...................................................................................... 5

1.1 Applicability of Grant Agreement and Provisions ......................................................................... 5 1.2 Legal Authority to Apply ............................................................................................................... 5 1.3 Grant Acceptance .......................................................................................................................... 5 1.4 Project Period................................................................................................................................ 5 1.5 General Responsibility .................................................................................................................. 5 1.6 Amendments and Changes to the Grant Agreement ................................................................... 6 1.7 Jurisdictional Cooperation ............................................................................................................ 7 1.8 Public Information and Meetings ................................................................................................. 7 1.9 Remedies for Non-Compliance ..................................................................................................... 7 1.10 False Statements by Grantee ........................................................................................................ 8 1.11 Conflict of Interest Safeguards...................................................................................................... 8 1.12 Fraud, Waste, and Abuse .............................................................................................................. 8 1.13 Termination of the Agreement ..................................................................................................... 9 1.14 Limitation of Liability..................................................................................................................... 9 1.15 Dispute Resolution ...................................................................................................................... 10 1.16 Liability for Taxes ........................................................................................................................ 10 1.17 Required State Assurances ......................................................................................................... 10 1.18 System for Award Management (SAM) Requirements............................................................... 10 1.19 No Obligation by Federal Government ....................................................................................... 11 1.20 Notice .......................................................................................................................................... 11 1.21 Force Majeure ............................................................................................................................. 11 1.22 Debt to State ............................................................................................................................... 11 1.23 Franchise Tax Certification .......................................................................................................... 11 1.24 Severability .................................................................................................................................. 12 1.25 E-Verify ........................................................................................................................................ 12 1.26 Compliance with Federal Law, Regulations, and Executive Orders ............................................ 12 1.27 Clean Air Act ................................................................................................................................ 12 1.28 Federal Water Pollution Control Act ........................................................................................... 12 1.29 Suspension and Debarment ........................................................................................................ 12 1.30 Energy Conservation ................................................................................................................... 13 1.31 Procurement of Recovered Materials ......................................................................................... 13 1.32 Terminated Contracts ................................................................................................................. 13

2 Property and Procurement Requirements .............................................................................................. 13

2.1 Property Management and Inventory ........................................................................................ 13 2.2 Consulting Contracts ................................................................................................................... 14 2.3 Procurement Practices and Policies ............................................................................................ 14 2.4 Contract Provisions Under Federal Awards ................................................................................ 14

3 Audit and Records Requirements ............................................................................................................ 14

3.1 Cooperation with Monitoring, Audits, and Records Requirements ........................................... 14 3.2 Single Audit Requirements.......................................................................................................... 15 3.3 Requirement to Address Audit Findings ..................................................................................... 15

P a g e 4 | 23

3.4 Records Retention ....................................................................................................................... 15 4 Prohibited and Regulated Activities and Expenditures ........................................................................... 16

4.1 Prohibited Costs .......................................................................................................................... 16 4.2 Political Activities ........................................................................................................................ 16

5 Financial Requirements............................................................................................................................ 17

5.1 Direct Deposit ............................................................................................................................. 17 5.2 Payments and Required Documentation .................................................................................... 17 5.3 Financial Reporting ..................................................................................................................... 17 5.4 Reimbursements ......................................................................................................................... 18 5.5 Refunds and Deductions ............................................................................................................. 18 5.6 Recapture of Funds ..................................................................................................................... 18 5.7 Liquidation Period ....................................................................................................................... 18 5.8 Project Close Out ........................................................................................................................ 18

EXHIBIT A - State of Texas Assurances ............................................................................................................. 19

EXHIBIT B – CARES ACT CORONAVIRUS RELIEF FUND ELIGIBILITY CERTIFICATION ......................................... 21

EXHIBIT C - CERTIFICATION REGARDING LOBBYING ........................................................................................ 22

P a g e 5 | 23

1 Grant Agreement Requirements and Conditions

1.1 Applicability of Grant Agreement and Provisions

The Grant Agreement is subject to the additional terms, conditions, and requirements of other laws, rules, regulations and plans recited herein and is intended to be the full and complete expression of and constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and all prior and contemporaneous understandings, agreements, promises, representations, terms and conditions, both oral and written, are superseded and replaced by this Grant Agreement.

Notwithstanding any expiration or termination of this Grant Agreement, the rights and obligations pertaining to the grant close-out, cooperation and provision of additional information, return of grant funds, audit rights, records retention, public information, and any other provision implying survivability shall remain in effect after the expiration or termination of this Grant Agreement.

1.2 Legal Authority to Apply

The grantee certifies that it possesses legal authority to apply for the grant. A resolution, motion or similar action has been or will be duly adopted or passed as an official act of the applicant’s governing body, authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative, or their designee of the organization to act in connection with the application and to provide such additional information as may be required.

1.3 Grant Acceptance

The Notice of Subrecipient Grant Award remains an offer until the fully executed copy of this Grant Agreement is received by the Texas Division of Emergency Management (TDEM).

1.4 Project Period

Funding has been authorized for eligible expenditures incurred between March 1, 2020 and December 30, 2020. The specific performance period for this grant is listed on the Notice of Subrecipient Grant Award. All expenditures must be incurred, and all services must be received within the performance period. TDEM will not be obligated to reimburse expenses incurred after the performance period. A cost is incurred when the responsible unit of government has expended funds to cover the cost.

1.5 General Responsibility

Per the CARES Act, CRF grant funds may only be used to cover expenses that –

1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19)

2. were not accounted for in the budget most recently approved as of March 27, 2020 for the state or government; and

3. were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020.

The US Department of Treasury (Treasury) provided additional guidance on the permissible use of grant

funds, including nonexclusive examples of eligible expenses in the following categories:

1. Medical expenses,

2. Public health expenses,

P a g e 6 | 23

3. Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency,

4. Expenses of actions to facilitate compliance with COVID-19-related public health measures,

5. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, and

6. Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund’s eligibility criteria.

Further explanation of these categories and examples can be found at the following link:

https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-

and-Tribal-Governments.pdf

https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Frequently-Asked-Questions.pdf

The subrecipient agrees that a minimum of 75% of its allotment will be spent in the categories of medical

expenses, public health expenses and payroll expenses for employees substantially dedicated to mitigating

or responding to the public emergency. The remainder of the allotment may be spent in any of the categories

provided within the Treasury guidance.

The grantee certifies compliance with these eligible expenses by executing the CARES Act Coronavirus Relief Fund Eligibility Certification Form in Exhibit E, which is attached hereto and incorporated for all purposes.

The grantee is responsible for the integrity of the fiscal and programmatic management of the grant project; accountability for all funds awarded; and compliance with TDEM administrative rules, policies and procedures, and applicable federal and state laws and regulations.

The grantee will maintain an appropriate grant administration system to ensure that all terms, conditions and specifications of the grant are met.

1.6 Amendments and Changes to the Grant Agreement

TDEM and the grantee may agree to make adjustments to the grant. Adjustments include, but are not limited to, modifying the scope of the grant project, adding funds to previously un-awarded cost items or categories changing funds in any awarded cost items or category, deobligating awarded funds or changing grant officials.

The grantee has no right or entitlement to reimbursement with grant funds. TDEM and grantee agree that any act, action or representation by either Party, their agents or employees that purports to waive or alter the terms of the Grant Agreement or increase the maximum liability of TDEM is void unless a written amendment to this Grant Agreement is first executed and documented in GMS. The grantee agrees that nothing in this Grant Agreement will be interpreted to create an obligation or liability of TDEM in excess of the "Maximum Liability of the TDEM" as set forth in the Notice of Subrecipient Grant Award.

Any alterations, additions, or deletions to the terms of this Grant Agreement must be documented in GMS to be binding upon the Parties. Notwithstanding this requirement, it is understood and agreed by Parties hereto, that changes in local, state and federal rules, regulations or laws applicable hereto, may occur during the term of this Grant Agreement and that any such changes shall be automatically incorporated into this Grant Agreement without written amendment hereto, and shall become a part hereof as of the effective date of the rule, regulation or law.

https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments.pdf



P a g e 7 | 23

1.7 Jurisdictional Cooperation

A municipality may yield any portion of its allocated funds to the county within which it exists or a county

may yield any portion of its allocated funds to a municipality within its footprint for eligible expenses. This

may be accomplished in one of the following ways:

1. By a grant amendment, as described in section 1.6, where by funds are deobligated from the original subrecipient and then added to previously un-awarded costs items or categories of the receiving jurisdiction’s grant award.

2. A subrecipient may use funds pursuant to this agreement to subcontract with another political subdivision within its jurisdiction for eligible and necessary expenditures incurred due to the public health emergency. The subrecipient is responsible for ensuring subcontractor eligibility and maintaining all required documentation.

1.8 Public Information and Meetings

Notwithstanding any provisions of this Grant Agreement to the contrary, the grantee acknowledges that the State of Texas, TDEM, and this Grant Agreement are subject to the Texas Public Information Act, Texas Government Code Chapter 552 (the “PIA”). The grantee acknowledges that TDEM will comply with the PIA, as interpreted by judicial opinions and opinions of the Attorney General of the State of Texas.

The grantee acknowledges that information created or exchanged in connection with this Grant Agreement, including all reimbursement documentation submitted to TDEM, is subject to the PIA, whether created or produced by the grantee or any third party, and the grantee agrees that information not otherwise excepted from disclosure under the PIA, will be available in a format that is accessible by the public at no additional charge to TDEM or State of Texas. The grantee will cooperate with TDEM in the production of documents or information responsive to a request for information.

1.9 Remedies for Non-Compliance

If TDEM determines that the grantee materially fails to comply with any term of this grant agreement, whether stated in a federal or state statute or regulation, an assurance, in a state plan or application, a notice of award, or any other applicable requirement, TDEM, in its sole discretion may take actions including:

1. Temporarily withholding cash payments pending correction of the deficiency or more severe enforcement action by TDEM;

2. Disallowing or denying use of funds for all or part of the cost of the activity or action not in compliance;

3. Disallowing claims for reimbursement;

4. Wholly or partially suspending or terminating this grant;

5. Requiring return or offset of previous reimbursements;

6. Prohibiting the grantee from applying for or receiving additional funds for other grant programs administered by TDEM until repayment to TDEM is made and any other compliance or audit finding is satisfactorily resolved;

7. Reducing the grant award maximum liability of TDEM;

8. Terminating this Grant Agreement;

9. Imposing a corrective action plan;

P a g e 8 | 23

10. Withholding further awards; or

11. Taking other remedies or appropriate actions.

The grantee costs resulting from obligations incurred during a suspension or after termination of this grant are not allowable unless TDEM expressly authorizes them in the notice of suspension or termination or subsequently.

TDEM, at its sole discretion, may impose sanctions without first requiring a corrective action plan.

1.10 False Statements by Grantee

By acceptance of this grant agreement, the grantee makes all the statements, representations, warranties, guarantees, certifications and affirmations included in this grant agreement. If applicable, the grantee will comply with the requirements of 31 USC § 3729, which set forth that no grantee of federal payments shall submit a false claim for payment.

If any of the statements, representations, certifications, affirmations, warranties, or guarantees are false or if the grantee signs or executes the grant agreement with a false statement or it is subsequently determined that the grantee has violated any of the statements, representations, warranties, guarantees, certifications or affirmations included in this grant agreement, then TDEM may consider this act a possible default under this grant agreement and may terminate or void this grant agreement for cause and pursue other remedies available to TDEM under this grant agreement and applicable law. False statements or claims made in connection with TDEM grants may result in fines, imprisonment, and debarment from participating in federal grants or contract, and/or other remedy available by law, potentially including the provisions of 38 USC §§ 3801-3812, which details the administrative remedies for false claims and statements made.

1.11 Conflict of Interest Safeguards

The grantee will establish safeguards to prohibit its employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest or personal gain, whether for themselves or others, particularly those with whom they have family, business, or other ties. The grantee will operate with complete independence and objectivity without actual, potential, or apparent conflict of interest with respect to its performance under this Grant Agreement. The grantee certifies as to its own organization, that to the best of their knowledge and belief, no member of The A&M System or The A&M System Board of Regents, nor any employee, or person, whose salary is payable in whole or in part by a member of The A&M System, has direct or indirect financial interest in the award of this Grant Agreement, or in the services to which this Grant Agreement relates, or in any of the profits, real or potential, thereof.

1.12 Fraud, Waste, and Abuse

The grantee understands that TDEM does not tolerate any type of fraud, waste, or misuse of funds received from TDEM. TDEM’s policy is to promote consistent, legal, and ethical organizational behavior, by assigning responsibilities and providing guidelines to enforce controls. Any violations of law, TDEM policies, or standards of ethical conduct will be investigated, and appropriate actions will be taken. The grantee understands and agrees that misuse of award funds may result in a range of penalties, including suspension of current and future funds, suspension or debarment from federal and state grants, recoupment of monies provided under an award, and civil and/or criminal penalties.

In the event grantee becomes aware of any allegation or a finding of fraud, waste, or misuse of funds received from TDEM that is made against the grantee, the grantee is required to immediately notify TDEM of said allegation or finding and to continue to inform TDEM of the status of any such on-going investigations. The grantee must also promptly refer to TDEM any credible evidence that a principal,

P a g e 9 | 23

employee, agent, grantee, contractor, subcontractor, or other person has -- (1) submitted a claim for award funds that violates the False Claims Act; or (2) committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving award funds. Grantees must also immediately notify TDEM in writing of any misappropriation of funds, fraud, theft, embezzlement, forgery, or any other serious irregularities indicating noncompliance with grant requirements. Grantees must notify the local prosecutor's office of any possible criminal violations. Grantees must immediately notify TDEM in writing if a project or project personnel become involved in any litigation, whether civil or criminal, and the grantee must immediately forward a copy of any demand, notices, subpoenas, lawsuits, or indictments to TDEM.

1.13 Termination of the Agreement

TDEM may, at its sole discretion, terminate this Grant Agreement, without recourse, liability or penalty against TDEM, upon written notice to grantee. In the event grantee fails to perform or comply with an obligation or a term, condition or provision of this Grant Agreement, TDEM may, upon written notice to grantee, terminate this agreement for cause, without further notice or opportunity to cure. Such notification of Termination for Cause will state the effective date of such termination, and if no effective date is specified, the effective date will be the date of the notification.

TDEM and grantee may mutually agree to terminate this Grant Agreement. TDEM in its sole discretion will determine if, as part of the agreed termination, grantee is required to return any or all of the disbursed grant funds.

Termination is not an exclusive remedy, but will be in addition to any other rights and remedies provided in equity, by law, or under this Grant Agreement, including those remedies listed at 2 C.F.R. 200.207 and 2 C.F.R. 200.338 – 200.342. Following termination by TDEM, grantee shall continue to be obligated to TDEM for the return of grant funds in accordance with applicable provisions of this Grant Agreement. In the event of termination under this Section, TDEM's obligation to reimburse grantee is limited to allowable costs incurred and paid by the grantee prior to the effective date of termination, and any allowable costs determined by TDEM in its sole discretion to be reasonable and necessary to cost-effectively wind up the grant. Termination of this Grant Agreement for any reason or expiration of this Grant Agreement shall not release the Parties from any liability or obligation set forth in this Grant Agreement that is expressly stated to survive any such termination or expiration.

1.14 Limitation of Liability

TO THE EXTENT ALLOWED BY LAW, THE GRANTEE SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS THE

STATE OF TEXAS AND AGENCY, AND/OR THEIR OFFICERS, REGENTS, AGENTS, EMPLOYEES, REPRESENTATIVES,

CONTRACTORS, ASSIGNEES, AND/OR DESIGNEES FROM ANY AND ALL LIABILITY, ACTIONS, CLAIMS, DEMANDS,

OR SUITS, AND ALL RELATED COSTS, ATTORNEY FEES, AND EXPENSES ARISING OUT OF, OR RESULTING FROM

ANY ACTS OR OMISSIONS OF RESPONDENT OR ITS AGENTS, EMPLOYEES, SUBCONTRACTORS, ORDER

FULFILLERS, OR SUPPLIERS OF SUBCONTRACTORS IN THE EXECUTION OR PERFORMANCE OF THE CONTRACT

AND ANY PURCHASE ORDERS ISSUED UNDER THE CONTRACT. THE DEFENSE SHALL BE COORDINATED BY

RESPONDENT WITH THE OFFICE OF THE TEXAS ATTORNEY GENERAL WHEN TEXAS STATE AGENCIES ARE

NAMED DEFENDANTS IN ANY LAWSUIT AND RESPONDENT MAY NOT AGREE TO ANY SETTLEMENT WITHOUT

FIRST OBTAINING THE CONCURRENCE FROM THE OFFICE OF THE TEXAS ATTORNEY GENERAL. RESPONDENT

AND AGENCY AGREE TO FURNISH TIMELY WRITTEN NOTICE TO EACH OTHER OF ANY SUCH CLAIM.

The grantee agrees that no provision of this Grant Agreement is in any way intended to constitute a waiver by TDEM as an agency of the State of Texas, its officers, regents, employees, agents, or contractors or the State of Texas of any privileges, rights, defenses, remedies, or immunities from suit and liability that TDEM or the State of Texas may have by operation of law.

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1.15 Dispute Resolution

The Parties’ representatives will meet as needed to implement the terms of this Grant Agreement and will make a good faith attempt to informally resolve any disputes.

Notwithstanding any other provision of this Grant Agreement to the contrary, unless otherwise requested or approved in writing by TDEM, the grantee shall continue performance and shall not be excused from performance during the period any breach of Grant Agreement claim or dispute is pending.

The dispute resolution process provided in Chapter 2260, Texas Government Code, and the related rules adopted by the Texas Attorney General pursuant to Chapter 2260, shall be used by TDEM and grantee to attempt to resolve any claim for breach of contract made by the grantee that cannot be resolved in the ordinary course of business. Grantee shall submit written notice of a claim of breach of contract under this Chapter to the Chief of TDEM, who shall examine the grantee’s claim and any counterclaim and negotiate with grantee in an effort to resolve the claim.

The laws of the State of Texas govern this Grant Agreement and all disputes arising out of or relating to this Grant Agreement, without regard to any otherwise applicable conflict of law rules or requirements. Venue for any grantee-initiated action, suit, litigation or other proceeding arising out of or in any way relating to this Grant Agreement shall be commenced exclusively in the Travis County District Court or the United States District Court, Southern District of Texas - Houston Division. Venue for any TDEM-initiated action, suit, litigation or other proceeding arising out of or in any way relating to this Grant Agreement may be commenced in a Texas state district court or a United States District Court selected by TDEM in its sole discretion.

The grantee hereby irrevocably and unconditionally consents to the exclusive jurisdiction of the courts referenced above for the purpose of prosecuting and/or defending such litigation. The grantee hereby waives and agrees not to assert by way of motion, as a defense, or otherwise, in any suit, action or proceeding, any claim that the grantee is not personally subject to the jurisdiction of the above-named courts; the suit, action or proceeding is brought in an inconvenient forum; and/or the venue is improper.

1.16 Liability for Taxes

The grantee agrees and acknowledges that grantee is an independent contractor and shall be entirely responsible for the liability and payment of grantee’s and grantee’s employees’ taxes of whatever kind, arising out of the performances in this Grant Agreement. The grantee agrees to comply with all state and federal laws applicable to any such persons, including laws regarding wages, taxes, insurance, and workers' compensation. TDEM and/or the State of Texas shall not be liable to the grantee, its employees, agents, or others for the payment of taxes or the provision of unemployment insurance and/or workers’ compensation or any benefit available to a state employee or employee of TDEM.

1.17 Required State Assurances

The grantee must comply with the applicable State Assurances included within the State Uniform Grant Management Standards (UGMS), Section III, Subpart B, _.14, which are attached hereto and incorporated for all purposes as Exhibit A.

1.18 System for Award Management (SAM) Requirements

A. The grantee agrees to comply with applicable requirements regarding registration with the System for Award Management (SAM) (or with a successor government-wide system officially designated by OMB and, if applicable, the federal funding agency). These requirements include maintaining current registrations and the currency of the information in SAM. The grantee will review and update information at least annually until submission of the final financial report required under the award or

P a g e 11 | 23

receipt of final payment, whichever is later, as required by 2 CFR Part 25.

B. The grantee will comply with Executive Orders 12549 and 12689 that requires “a contract award (see 2 CFR 180.220) must not be made to parties listed on the government-wide exclusions in the System for Award Management (SAM)”, in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority. The grantee certifies it will verify each vendor’s status to ensure the vendor is not debarred, suspended, otherwise excluded or declared ineligible by checking the SAM before doing/renewing business with that vendor.

C. The grantee certifies that it and its principals are eligible to participate in this Grant Agreement and have not been subjected to suspension, debarment, or similar ineligibility determined by any federal, state or local governmental entity and the grantee is in compliance with the State of Texas statutes and rules relating to procurement and that the grantee is not listed in the federal government’s terrorism watch list as described in Executive Order 13224.

1.19 No Obligation by Federal Government

The Parties acknowledge and agree that the federal government is not a party to this Grant Agreement

and is not subject to any obligations or liabilities to either Party, third party or subcontractor pertaining to

any matter resulting from this Grant Agreement.

1.20 Notice

Notice may be given to the grantee via GMS, email, hand-delivery, or United States Mail. Notices to the grantee will be sent to the name and address supplied by grantee in GMS. 1.21 Force Majeure

Neither the grantee nor TDEM shall be required to perform any obligation under this Grant Agreement or be liable or responsible for any loss or damage resulting from its failure to perform so long as performance is delayed by force majeure or acts of God, including but not limited to strikes, lockouts or labor shortages, embargo, riot, war, revolution, terrorism, rebellion, insurrection, pandemic, flood, natural disaster, or interruption of utilities from external causes. Each Party must inform the other in writing, with proof of receipt, within three (3) business days of the existence of such force majeure, or otherwise waive this right as a defense.

1.22 Debt to State

The grantee certifies, to the extent grantee owes any debt (child support or other obligation) or delinquent taxes to the State of Texas, any payments grantee is owed under this Grant Agreement may be applied by the Comptroller of Public Accounts toward any such debt or delinquent taxes until such debt or delinquent taxes are paid in full.

1.23 Franchise Tax Certification

If grantee is a taxable entity subject to the Texas Franchise Tax (Chapter 171, Texas Tax Code), then grantee

certifies that it is not currently delinquent in the payment of any franchise (margin) taxes or that grantee is

exempt from the payment of franchise (margin) taxes.

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1.24 Severability

If any provisions of this Grant Agreement are rendered or declared illegal for any reason, or shall be invalid

or unenforceable, such provision shall be modified or deleted in such manner so as to afford the Party for

whose benefit it was intended the fullest benefit commensurate with making this Grant Agreement, as

modified, enforceable, and the remainder of this Grant Agreement and the application of such provision

to other persons or circumstances shall not be affected thereby, but shall be enforced to the greatest extent

permitted by applicable law.

1.25 E-Verify

By entering into this Grant Agreement, grantee certifies and ensures that it utilizes and will continue to

utilize, for the term of this Grant Agreement, the U.S. Department of Homeland Security's e-Verify system

to determine the eligibility of (a) all persons employed during the contract term to perform duties within

Texas; and (b) all persons (including subcontractors) assigned by the grantee pursuant to the Grant

Agreement.

1.26 Compliance with Federal Law, Regulations, and Executive Orders

Grantee acknowledges that federal financial assistance funds will be used to fund the Grant Agreement.

Grantee will comply with all applicable federal law, regulations, executive orders, policies, procedures, and

directives.

1.27 Clean Air Act

The following is only applicable if the amount of the contract exceeds $150,000.

a. Grantee agrees to comply with all applicable standards, orders or regulations issued pursuant to

the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.

b. Grantee agrees to report each violation to TDEM and understands and agrees that TDEM will, in

turn, report each violation as required to assure notification to the Federal Emergency

Management Agency, and the appropriate Environmental Protection Agency Regional Office.

c. Grantee agrees to include these requirements in each subcontract exceeding $150,000 financed

in whole or in part with federal assistance provided by this Grant Agreement.

1.28 Federal Water Pollution Control Act

a. Grantee agrees to comply with all applicable standards, orders, or regulations issued pursuant to

the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq.

b. Grantee agrees to report each violation to TDEM and understands and agrees that TDEM will, in

turn, report each violation as required to assure notification to the Federal Emergency

Management Agency, and the appropriate Environmental Protection Agency Regional Office.

c. Grantee agrees to include these requirements in each subcontract exceeding $150,000 financed

in whole or in part with federal assistance provided by this Grant Agreement.

1.29 Suspension and Debarment

a. This Grant Agreement is a covered transaction for purposes of 2 C.F.R. pt 180 and 2 C.F.R. pt.

3000. Grantee certifies that grantee, grantee’s principals (defined at 2C.F.R. Sec. 180.995), or its

P a g e 13 | 23

affiliates (defined at 2 C.F.R. Sec. 180.905) are excluded (defined at 2 C.F.R. Sec. 180.940) or

disqualified (defined at 2 C.F.R. Sec. 180.935).

b. Grantee must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must

include a requirement comply with these regulations in any lower tier covered transaction it

enters into.

c. This certification is a material representation of fact relied upon by TDEM. If it is later determined

that grantee did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, in addition to

remedies available to TDEM, the Federal Government may pursue available remedies, including

but limited to suspension and/or debarment.

1.30 Energy Conservation

If applicable, grantee agrees to comply with mandatory standards and policies relating to energy efficiency

which are contained in the state energy conservation plan issued in compliance with the Energy Policy and

Conservation Act.

1.31 Procurement of Recovered Materials

a. In the performance of this Grant Agreement, grantee shall make maximum use of products

containing recovered materials that are EPA-designated items unless the product cannot be

acquired –

(i) Competitively within a timeframe providing for compliance with the contract

performance schedule;

(ii) Meeting contract performance requirements; or

(iii) At a reasonable price.

b. Information about this requirement, along with the list of EPA-designated items, is available at

EPA’s Comprehensive Procurement Guidelines web site,

https://www.epa.gov/smm/comprehensive-procurement-guideline-cpg-program.

1.32 Terminated Contracts

The grantee has not had a contract terminated or been denied the renewal of any contract for noncompliance with policies or regulations of any state or federally funded program within the past five (5) years nor is it currently prohibited from contracting with a governmental agency. If the grantee does have such a terminated contract, the grantee shall identify the contract and provide an explanation for the termination. The grantee acknowledges that this Grant Agreement may be terminated and payment withheld or return of grant funds required if this certification is inaccurate or false.

2 Property and Procurement Requirements

2.1 Property Management and Inventory

The grantee must ensure equipment purchased with grant funds is used for the purpose of the grant and as approved by TDEM. The grantee must develop and implement a control system to prevent loss, damage or theft of property and investigate and document any loss, damage or theft of property funded under this Grant.

The grantee must account for any real and personal property acquired with grant funds or received from

https://www.epa.gov/smm/comprehensive-procurement-guideline-cpg-program

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the Federal Government in accordance with 2 CFR 200.310 Insurance coverage through 200.316 Property trust relationship and 200.329 Reporting on real property. This documentation must be maintained by the grantee, according to the requirements listed herein, and provided to TDEM upon request, if applicable.

When original or replacement equipment acquired under this award by the grantee is no longer needed for the original project or program or for other activities currently or previously supported by the federal awarding agency or TDEM, the grantee must make proper disposition of the equipment pursuant to 2 CFR 200.

The grantee will maintain specified equipment management and inventory procedures for equipment (including replacement equipment), whether acquired in whole or in part with grant funds, until disposition takes place, with a per-unit cost of $5,000 or greater. The equipment and inventory procedures include:

A. The grantee must keep an inventory report on file containing equipment purchased with any grant funds during the grant period. The inventory report must agree with the approved grant budget and the final Financial Status Report and shall be available to TDEM at all times upon request.

B. The grantee must maintain property/inventory records which, at minimum, include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, the cost of the property, the percentage of Federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.

C. The grantee shall permanently identify all such equipment by appropriate tags or labels affixed to the equipment Exceptions to this requirement are limited to items where placing of the marking is not possible due to the nature of the equipment.

2.2 Consulting Contracts

Pre-approval of costs related to consulting contracts is required and the value of consulting contracts

entered into by the grantee may not exceed 5% of the total funds received by the local unit of government.

2.3 Procurement Practices and Policies

The grantee must follow applicable federal and state law, federal procurement standards specified in regulations governing federal awards to non-federal entities, their established policy, and best practices for procuring goods or services with grant funds. Procurement activities must follow the most restrictive of federal, state and local procurement regulations. Contracts must be routinely monitored for delivery of services or goods. 2.4 Contract Provisions Under Federal Awards

All contracts made by a grantee under a federal award must contain the provisions outlined in 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Appendix II to Part 200 Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.

3 Audit and Records Requirements

3.1 Cooperation with Monitoring, Audits, and Records Requirements

All records and expenditures are subject to, and grantee agrees to comply with, monitoring and/or audits conducted by the United States Department of Treasury’s Inspector General (DOTIG), TDEM, and the State

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Auditor’s Office (SAO) or designee. The grantee shall maintain under GAAP or GASB, adequate records that enable DOTIG, TDEM, and SAO to ensure proper accounting for all costs and performances related to this Grant Agreement.

3.2 Single Audit Requirements

Any grantee expending $750,000 or more in federal funds in a fiscal year may be subject to Single Audit Requirements in 2 CFR, Part 200, Subpart F – Audit Requirements, at https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl.

The grantees expending more than $750,000 in state funds in a fiscal year are subject to the requirements in the Texas Single Audit Circular, at https://comptroller.texas.gov/purchasing/docs/ugms.pdf.The audit must be completed and the data collection and reporting package described in 2 CFR 200.512 must be submitted to the Federal Audit Clearinghouse (FAC) within 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period, whichever is earlier.

3.3 Requirement to Address Audit Findings

If any audit, monitoring, investigations, review of awards, or other compliance review reveals any discrepancies, inadequacies, or deficiencies which are necessary to correct in order to maintain compliance with this Grant Agreement, applicable laws, regulations, or the grantee's obligations hereunder, the grantee agrees to propose and submit to TDEM a corrective action plan to correct such discrepancies or inadequacies within thirty (30) calendar days after the grantee's receipt of the findings. The grantee's corrective action plan is subject to the approval of TDEM.

The grantee understands and agrees that the grantee must make every effort to address and resolve all outstanding issues, findings, or actions identified by DOTIG, TDEM, or SAO through the corrective action plan or any other corrective plan. Failure to promptly and adequately address these findings may result in grant funds being withheld, other related requirements being imposed, or other sanctions and penalties. The grantee agrees to complete any corrective action approved by TDEM within the time period specified by TDEM and to the satisfaction of TDEM, at the sole cost of the grantee. The grantee shall provide to TDEM periodic status reports regarding the grantee's resolution of any audit, corrective action plan, or other compliance activity for which the grantee is responsible.

3.4 Records Retention

A. The grantee shall maintain appropriate audit trails to provide accountability for all expenditures of grant funds, reporting measures, and funds received from TDEM under this Grant Agreement. Audit trails maintained by the grantee will, at a minimum, identify the supporting documentation prepared by the grantee to permit an audit of its accounting systems and payment verification with respect to the expenditure of any funds awarded under this Grant Agreement.

B. The grantee must maintain fiscal records and supporting documentation for all expenditures resulting from this Grant Agreement pursuant to 2 CFR 200.333 and state law.

1. The grantee must retain these records and any supporting documentation for a minimum of seven (7) years from the later of the completion of this project's public objective, submission of the final expenditure report, any litigation, dispute, or audit.

2. Records related to real property and equipment acquired with grant funds shall be retained for seven (7) years after final disposition.

3. TDEM may direct a grantee to retain documents for longer periods of time or to transfer certain records to TDEM or federal custody when it is determined that the records possess long term

https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl

https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl

https://comptroller.texas.gov/purchasing/docs/ugms.pdf

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retention value.

4 Prohibited and Regulated Activities and Expenditures

4.1 Prohibited Costs

A. Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute. Revenue replacement is not a permissible use of these grant funds. In accordance with Section 3.1 all record and expenditures are subject to review.

B. Damages covered by insurance.

C. Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency.

D. Duplication of benefits including expenses that have been or will be reimbursed under any other federal program.

E. Reimbursement to donors for donated items or services.

F. Workforce bonuses other than hazard pay or overtime.

G. Severance pay.

H. Legal settlements.

4.2 Political Activities

Grant funds may not be used in connection with the following acts by agencies or individuals employed by grant funds:

A. Unless specifically authorized to do so by federal law, grant recipients or their grantees or contractors are prohibited from using grant funds directly or indirectly for political purposes, including lobbying or advocating for legislative programs or changes; campaigning for, endorsing, contributing to, or otherwise supporting political candidates or parties; and voter registration or get-out-the-vote campaigns. Generally, organizations or entities which receive federal funds by way of grants, contracts, or cooperative agreements do not lose their rights as organizations to use their own, private, non-federal resources for “political” activities because of or as a consequence of receiving such federal funds. These recipient organizations must thus use private or other non-federal money, receipts, contributions, or dues for their political activities, and may not charge off to or be reimbursed from federal contracts or grants for the costs of such activities.

B. Grant officials or grant funded employees may not use official authority or influence or permit the use of a program administered by the grantee agency of which the person is an officer or employee to interfere with or affect the result of an election or nomination of a candidate or to achieve any other political purpose.

C. Grant-funded employees may not coerce, attempt to coerce, command, restrict, attempt to restrict, or prevent the payment, loan, or contribution of anything of value to a person or political organization for a political purpose.

D. Grant funds may not be used to employ, as a regular full-time or part-time or contract employee, a person who is required by Chapter 305 of the Government Code to register as a lobbyist. Furthermore, grant funds may not be used to pay, on behalf of the agency or an officer or employee of the agency, membership dues to an organization that pays part or all of the salary of

P a g e 17 | 23

a person who is required by Chapter 305 of the Government Code to register as a lobbyist.

E. As applicable, the grantee and each contracting tier will comply with 31 USC § 1352, which provides that none of the funds provided under an award may be expended by the grantee to pay any person to influence, or attempt to influence an officer or employee of any agency, a Member of Congress, an officer of employee of Congress, or an employee of a Member of Congress in connection with any Federal action concerning the award or renewal. Grantee shall file the required certification attached hereto and incorporated for all purposes as Exhibit F. Each contracting tier shall also disclose any lobbying with non-federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient.

5 Financial Requirements

5.1 Direct Deposit

A completed direct deposit form from the grantee must be provided to TDEM prior to receiving any payments. The direct deposit form is currently available at https://grants.tdem.texas.gov/.

5.2 Payments and Required Documentation

Funding for this Grant Agreement is appropriated under the Coronavirus Aid, Relief, and Economic Security Act, 2020 (Public Law 116-136) enacted on March 27, 2020, as amended, to facilitate protective measures for and recovery from the public health emergency in areas affected by COVID-19, which are Presidentially-declared major disaster areas under Title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). All expenditures under this Grant Agreement must be made in accordance with this Grant Agreement and any other applicable laws, rules or regulations. Further, grantee acknowledges that all funds are subject to recapture and repayment for non-compliance pursuant to Section 5.7 below.

Payment of funds on projects may be initiated by the grantee through a Request for Reimbursement (RFR) in GMS.

Grantee may initiate an Advance of Funds Request (AFR) through GMS for an initial cash advance to cover actual costs incurred or up to 20% of their total allocation, whichever is larger.

Additional advances or reimbursement requests may be requested following full reporting to TDEM of expenses incurred and applied against the initial and/or any subsequent advance payments.

If sufficient progress is not made towards expenditure of advanced funds and/or the grantee fails to meet financial reporting obligations, TDEM may implement sanctions as necessary up to and including grant termination.

All documentation for expenditures paid during the project period must be submitted to TDEM on or before the grant liquidation date.

5.3 Financial Reporting

Financial reports must be submitted to TDEM on a quarterly basis via GMS but can be submitted more often as necessary to draw down funds.

The final financial report must be submitted to TDEM on or before the grant liquidation date or the grant funds may lapse and TDEM will provide them as grants to other eligible jurisdictions.

https://grants.tdem.texas.gov/

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5.4 Reimbursements

TDEM will be obligated to reimburse the grantee for the expenditure of actual and allowable allocable costs incurred and paid by the grantee pursuant to this Grant Agreement. TDEM is not obligated to pay unauthorized costs or to reimburse expenses that were incurred by the grantee prior to the commencement or after the termination of this Grant Agreement.

5.5 Refunds and Deductions

If TDEM determines that the grantee has been overpaid any grant funds under this Grant Agreement, including payments made inadvertently or payments made but later determined to not be actual and allowable allocable costs, the grantee shall return to TDEM the amount identified by TDEM as an overpayment. The grantee shall refund any overpayment to TDEM within thirty (30) calendar days of the

receipt of the notice of the overpayment from TDEM unless an alternate payment plan is specified by TDEM. Refunds may be remitted to: Texas Division of Emergency Management, P.O. Box 15467, Austin, Texas 78761.

5.6 Recapture of Funds

The discretionary right of TDEM to terminate for convenience under Section 1.13 notwithstanding, TDEM shall have the right to terminate the Grant Agreement and to recapture, and be reimbursed for any payments made by TDEM: (i) that are not allowed under applicable laws, rules, and regulations; or (ii) that are otherwise inconsistent with this Grant Agreement, including any unapproved expenditures.

5.7 Liquidation Period

Grant funds will liquidate 90 calendar days following the project period end date or on December 30, 2020, whichever is earlier. Funds not obligated by the end of the grant period and not expended by the liquidation date will revert to TDEM.

5.8 Project Close Out

TDEM will close-out the grant award when it determines that all applicable administrative actions and all required work of the grant have been completed by the grantee.

The grantee must submit all financial, performance, and other reports as required by the terms and conditions of the grant award.

The grantee must promptly refund any balances of unobligated cash that TDEM paid in advance or paid and

that are not authorized to be retained by the grantee for use in other projects.

[EXHIBITS AND SIGNATURE PAGE FOLLOWS]

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EXHIBIT A

EXHIBIT A - State of Texas Assurances As the duly authorized representative of Grantee, I certify that Grantee:

1. Shall comply with Texas Government Code, Chapter 573, by ensuring that no officer, employee, or member of the grantee’s governing

body or of the grantee’s contractor shall vote or confirm the employment of any person related within the second degree of affinity or the

third degree of consanguinity to any member of the governing body or to any other officer or employee authorized to employ or supervise

such person. This prohibition shall not prohibit the employment of a person who shall have been continuously employed for a period of

two years, or such other period stipulated by local law, prior to the election or appointment of the officer, employee, or governing body

member related to such person in the prohibited degree.

2. Shall insure that all information collected, assembled, or maintained by the grantee relative to a project will be available to the public

during normal business hours in compliance with Texas Government Code, Chapter 552, unless otherwise expressly prohibited by law.

3. Shall comply with Texas Government Code, Chapter 551, which requires all regular, special, or called meetings of governmental bodies

to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution.

4. Shall comply with Section 231.006, Texas Family Code, which prohibits payments to a person who is in arrears on child support payments.

5. Shall not contract with or issue a license, certificate, or permit to the owner, operator, or administrator of a facility if the grantee is a health,

human services, public safety, or law enforcement agency and the license, permit, or certificate has been revoked by another health and

human services agency or public safety or law enforcement agency.

6. Shall comply with all rules adopted by the Texas Commission on Law Enforcement pursuant to Chapter 1701, Texas Occupations Code,

or shall provide the grantor agency with a certification from the Texas Commission on Law Enforcement that the agency is in the process

of achieving compliance with such rules if the grantee is a law enforcement agency regulated by Texas Occupations Code, Chapter 1701.

7. Shall follow all assurances. When incorporated into a grant award or contract, standard assurances contained in the application package

become terms or conditions for receipt of grant funds. Administering state agencies and grantees shall maintain an appropriate contract

administration system to insure that all terms, conditions, and specifications are met. (See UGMS Section _.36 for additional guidance on

contract provisions).

8. Shall comply with the Texas Family Code, Section 261.101, which requires reporting of all suspected cases of child abuse to local law

enforcement authorities and to the Texas Department of Child Protective and Regulatory Services. Grantee shall also ensure that all

program personnel are properly trained and aware of this requirement.

9. Shall comply with all federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights

Act of 1964 (P.L. 88-352), which prohibits discrimination on the basis of race, color, or national origin; (b) Title IX of the Education

Amendments of 1972, as amended (20 U.S.C. §§1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; (c) Section

504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps and the

Americans with Disabilities Act of 1990 including Titles I, II, and III of the Americans with Disability Act which prohibits recipients from

discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public

accommodation, and certain testing entities, 44 U.S.C. §§ 12101-12213; (d) the Age Discrimination Act of 1974, as amended (42 U.S.C.

§§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as

amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention,

Treatment, and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to the nondiscrimination on the basis of alcohol abuse or

alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290dd-3 and 290ee-3), as amended, relating to

confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as

amended, relating to nondiscrimination in the sale, rental, or financing of housing; (i) any other nondiscrimination provisions in the specific

statute(s) under which application for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statute(s)

which may apply to this Grant.

10. Shall comply, as applicable, with the provisions of the Davis-Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act (40 U.S.C.

§276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-333), regarding labor standards for

federally assisted construction subagreements.

11. Shall comply with requirements of the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (P.L.

91-646), which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally

assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation

in purchases.

12. Shall comply with the provisions of the Hatch Political Activity Act (5 U.S.C. §§7321-29), which limit the political activity of employees

whose principal employment activities are funded in whole or in part with Federal funds.

13. Shall comply with the minimum wage and maximum hours provisions of the Federal Fair Labor Standards Act and the Intergovernmental

Personnel Act of 1970, as applicable.

P a g e 20 | 23

EXHIBIT A

14. Shall insure that the facilities under its ownership, lease, or supervision which shall be utilized in the accomplishment of the project are

not listed on the Environmental Protection Agency’s (EPA) list of Violating Facilities and that it will notify the Federal grantor agency

of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in the

project is under consideration for listing by the EPA (EO 11738).

15. Shall comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973, Public Law

93-234. Section 102(a) requires the purchase of flood insurance in communities where such insurance is available as a condition for the

receipt of any Federal financial assistance for construction or acquisition proposed for use in any area that has been identified by the

Secretary of the Department of Housing and Urban Development as an area having special flood hazards.

16. Shall comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality

control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification

of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in

floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved state management program developed

under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) conformity of federal actions to State (Clear Air)

Implementation Plans under Section 176(c) of the Clear Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.); (g) protection of

underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and (h) protection of

endangered species under the Endangered Species Act of 1973, as amended (P.L. 93-205).

17. Shall comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential

components of the national wild and scenic rivers system.

18. Shall assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended

(16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act

of 1974 (16 U.S.C. §§469a-1 et seq.).

19. Shall comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. §§2131 et seq.) which requires the

minimum standards of care and treatment for vertebrate animals bred for commercial sale, used in research, transported commercially, or

exhibited to the public according to the Guide for Care and Use of Laboratory Animals and Public Health Service Policy and Government

Principals Regarding the Care and Use of Animals.

20. Shall comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.) which prohibits the use of lead-based paint

in construction or rehabilitation of residential structures.

21. Shall comply with the Pro-Children Act of 1994 (Public Law 103-277), which prohibits smoking within any portion of any indoor facility

used for the provision of services for children.

22. Shall comply with all federal tax laws and are solely responsible for filing all required state and federal tax forms.

23. Shall comply with all applicable requirements of all other federal and state laws, executive orders, regulations, and policies governing

this program.

24. And its principals are eligible to participate and have not been subjected to suspension, debarment, or similar ineligibility determined by

any federal, state, or local governmental entity and it is not listed on a state or federal government’s terrorism watch list as described in

Executive Order 13224. Entities ineligible for federal procurement have Exclusions listed at https://www.sam.gov/portal/public/SAM/.

25. Shall adopt and implement applicable provisions of the model HIV/AIDS work place guidelines of the Texas Department of Health as

required by the Texas Health and Safety Code, Ann., Sec. 85.001, et seq.

26. Shall comply with the Drug-Free Workplace Rules established by the Texas Worker’s Compensation Commission effective April 17,

1991.

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EXHIBIT B

EXHIBIT B – CARES ACT CORONAVIRUS RELIEF FUND ELIGIBILITY CERTIFICATION

I, ____________________, am the County Judge, Mayor or City Manager of _______________________ (“County”/”Municipality”), and I certify that:

1. I have the authority on behalf of County/Municipality to request grant payments from the State of Texas (“State”) for federal funds appropriated pursuant to section 601 of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, div. A, Title V (Mar. 27, 2020).

2. I understand that the State will rely on this certification as a material representation in making grant payments to the County/Municipality.

3. I acknowledge that County should keep records sufficient to demonstrate that the expenditure of funds it has received is in accordance with section 601(d) of the Social Security Act.

4. I acknowledge that all records and expenditures are subject to audit by the United States Department of Treasury’s Inspector General, the Texas Division of Emergency Management, and the Texas State Auditor’s Office, or designee.

5. I acknowledge that County has an affirmative obligation to identify and report any duplication of benefits. I understand that the State has an obligation and the authority to deobligate or offset any duplicated benefits.

6. I acknowledge and agree that County/Municipality shall be liable for any costs disallowed pursuant to financial or compliance audits of funds received.

7. I acknowledge that if County has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the United States Department of the Treasury.

8. I acknowledge that the County/Municipality’s proposed uses of the funds provided as grant payments from the State by federal appropriation under section 601 of the Social Security Act will be used only to cover those costs that:

a. are necessary expenditures incurred due to the public health emergency and governor’s disaster declaration on March 13, 2020 with respect to the Coronavirus Disease 2019 (COVID-19);

b. were not accounted for in the budget most recently approved as of March 27, 2020, for County/Municipality; and

c. were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020.

In addition to each of the statements above, I acknowledge on submission of this certification that my jurisdiction

has incurred eligible expenses between March 1, 2020 and the date noted below.

By: _________________________________

Signature:____________________________

Title:________________________________

Date:________________________________

P a g e 22 | 23

EXHIBIT C

EXHIBIT C - CERTIFICATION REGARDING LOBBYING

Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned grantee, ______________________, certifies, to the best of his or her knowledge that:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to

any person for influencing or attempting to influence an officer or employee of an agency, a Member

of Congress, an officer or employee of Congress, or an employee of a Member of Congress in

connection with the awarding of any Federal contract, the making of any Federal grant, the making of

any Federal loan, the entering into of any cooperative agreement, and the extension, continuation,

renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence any officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, the undersigned shall complete and submit Standard Form – LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

3. The undersigned shall require that the language of this certification be included in the award

documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was

made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction

imposed by 31 U.S.C. Sec. 1352 (as amended by the Lobbying Disclosure Act of 119). Any person who fails to file

the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000

for each such failure.

The grantee, ___________________, certifies or affirms the truthfulness and accuracy of each statement of its

certification and disclosure, if any. In addition, grantee understands and agrees that the provisions of 31 U.S.C.

Sec. 3801 et seq. apply to his certification and disclosure, if any.

By: _________________________________

Signature:____________________________

Title:________________________________

Date:________________________________

P a g e 30 | 30

SIGNATURE PAGE

Please initial by each Exhibit, acknowledging you have received them, understand them, and agree to abide by them. ______ State of Texas Assurances, hereinafter referred to as “Exhibit A” ______ CARES Act Coronavirus Relief Fund Eligibility Certification, hereinafter referred to as “Exhibit B” ______ Certification Regarding Lobbying, hereinafter referred to as “Exhibit C” Please sign below to acknowledged acceptance of the grant and all exhibits in this Grant Agreement, and to abide by all terms and conditions.

By: _________________________________

Signature:____________________________

Title:________________________________

Date:________________________________

FAQ – Coronavirus Relief Fund (CRF)

Updated May 28, 2020 Eligible Costs Question 1: If a local Volunteer Fire Department spent money, that they did not budget for, on PPE and

sanitization equipment due to the Coronavirus, would the county be cleared to reimburse them with money it receives if the Volunteer Fire Department is a non-profit agency but the county does support them with some funding?

Question 2: Payroll Expenses – Is Overtime for Law Enforcement and Public Health/Healthcare eligible under this funding?

Question 3: What is included as a grant for reimbursement for costs of business interruption? Is that to pay their employees, pay their rent or utilities, purchase operational supplies, etc.?

Question 4: Can a City purchase protective equipment for small businesses that can be reimbursed? Question 5: Regarding payroll expenses and for public safety, food delivery, etc., Exhibit B, 8b states

“Were not accounted for in the budget…”. If an applicant has public safety personnel and home food delivery for senior citizens which was switched to substantially dedicated to mitigating COVID-19, but mostly within existing budget, would these expenses not qualify for the $55 per capita allocation?

Question 6: Can hazard pay be back paid to employees starting March 1, 2020 to current date if it is not included in this year’s budget?

Question 7: Would a drop in budgeted revenue qualify? Question 8: The CARES Act Relief Fund Grant Program mentions payroll related to the COVID-19

emergency as an eligible expense. Does that mean straight time and overtime? Question 9: Can an applicant use Coronavirus Relief Fund for the additional cleaning and cleaning

products to fight the virus at all of its facilities? Question 10: Can the funds be used for the purchase of hand sanitizer for all of an applicant’s facilities? Question 11: Can the funds be used to pay for government employees to barricade playgrounds? Question 12: Can an applicant utilize these funds for contracting with a person to provide childcare, so

employees do not miss work when their children lost childcare? Question 13: Are the funds available for antibody testing of all employees? Question 14: Can a city, who receives money under CRF, give some or all of that money to a special

water district within their city? Question 15: Is there a list out there that shows specific COVID-19 related costs that are eligible for

reimbursement? Question 16: Is the TDEM reimbursement for nursing home testing going to come out of the counties’ allotment of funds or is this going to come from somewhere else?

Coronavirus Relief Fund (CRF) 2

Question 17: Would this include general employees who are not public safety or healthcare that are

responsible for managing reimbursement of COVID-19 funds, managing budgets related to COVID-19 expenditures, purchasing COVID-19 protective equipment, staff who have been cross-trained to operate COVID-19 hotlines or information channels, or public information officers dedicated to keeping the community updated with services offered to help treat, mitigate or respond to COVID-19 public health measures?

Question 18: If an applicant is over budget on part-time EMS workers who staff an ambulance, could these funds be used to cover the extra cost above the budgeted amount?

Question 19: Can the funds be used to pay employee cost of Emergency Management Coordinator for time spent on COVID-19 activities?

Question 20: Can the funds be used to pay employee cost of a City Manager for time spent on COVID-19 activities?

Question 21: In an instance where COVID-19 created a need for an EMC to have a dedicated vehicle for the purpose of emergency management; if the vehicle is to be used to conduct COVID surveillance, respond to medical calls, transport equipment, check on and enforce the Governor’s executive orders, and any other COVID related issues that continue to arise would the purchase be an eligible cost?

Question 22: Is administrative leave is an allowable expense under CRF? It appears that it would be given:

5. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, and

6. Any other COVID-19-related expenses reasonably necessary to the function of government that satisfy the Fund’s eligibility criteria.

Question 23: What are some examples of types of covered employees? Question 24: Or is this category strictly to be used for any employee categorized by definition as public

safety, public health, or healthcare? Question 25: Can the City give cash grants for small businesses that can be reimbursed? Question 26: For a rural county that doesn’t have a hospital, can the funds be used to build a Public Health

building that can be used to mitigate the spread of the COVID-19 virus? This building would have exam rooms and bays for drive through testing. The building would be used by our local health official and other medical staff. Can the funds be used for construction of this building as well as the outfitting of medical supplies? If they can, are there certain things outlined that the funds can’t be used for, pertaining to the construction and outfitting?

Question 27: In an historical building can an applicant install doors and barriers that protect office staff and satisfies the Historical Commission? If these qualify, can they be done in a manner that matches the existing counters and are of lasting quality?


Question 28: The Guidance says that funding can be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. How does a government determine whether payroll expenses for a given employee satisfy the “substantially dedicated” condition?

Question 29: The Guidance says that a cost was not accounted for in the most recently approved budget if the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. What would qualify as a “substantially different use” for purposes of the Fund eligibility?

Question 30: Can the City pay for all fire and police personnel cost between March and December or only for time spent on COVID-19 activities for these department?

Question 31: Is the purchase of a new medic/ambulance unit eligible under these guidelines if it is to replace an existing ambulance with significant mechanical issues?

Question 32: When a county houses inmates on a state hold while the state is not picking up inmates due

to Covid-19, the county is not legally allowed to release the inmates. In this situation, are unbudgeted expenses including medical care covered under CRF even if the inmates are housed past the time the county is statutorily required to house them?

Question 33: In reference to the previous question - if so, will the county be able to recover any of the staff

time for the jailers? Question 34: If the county sets up an economic relief fund to assist small business who were forced to

shut down and are now trying to get back on their feet, would these cost be reimbursable through CRF?

Funding Process Steps and Documentation Requirements Question 35: By submitting the CRF Certification, does that only trigger the process for the 20%

drawdown, or does that also initiate our overall application for reimbursement? Question 36: If it is only for the automatic drawdown, how does an applicant begin the process of further

registering with TDEM to start submitting for reimbursement? Question 37: How long does it typically take to be approved for the 20% to become available and for the

reimbursement process to become available? Question 38: Is the full reimbursement application going to be through e-grants? Question 39: What process does a City need to follow to demonstrate costs incurred? Question 40: After submitting the necessary eligibility certification, does an applicant automatically get the

automatic draw down of 20% without having to submit any supporting documentation as per the press release issued by the Governor’s Office?


Question 41: If an applicant does not incur expenses (payroll, PPE, supplies, equipment, etc. ) that are related to COVID-19 that total the 20% draw down amount, does that applicant have to give the remaining funds back to TDEM?

Question 42: What is the timeline to receive the initial amount of 20%? Question 43: Should a local jurisdiction continue to follow local procedures? For example, awaiting

ratification of Commissioner Court approval prior to submitting documents. Question 44: Do municipalities need to submit documentation on expenses incurred with the Mayor's

signature form to get the initial 20% of reimbursement? Question 45: Will the initial 20% will be paid to the counties with no requirement for documentation or

expenses and only the second amounts require documentation?

Terms and Conditions / Funding Usage Restrictions Question 46: Regarding the Terms & Conditions – p. 6 – Is a city considered a subrecipient or grantee? Is

the State the Grantee and the City the subrecipient? Question 47: Regarding Terms & Conditions – p. 6 – Would a city have to agree that 75% of their

allotment will be spent on medical, public health, and payroll expenses (Categories 1-3)? For a small town with very few cases, this will be a significant limiting factor. Would qualifying expenses in Categories 4-6 be limited because the reimbursement has to be 75% from Categories 1-3?

Question 48: Economic Support – Is there a max limit on how much can be used to support local small businesses?

Question 49: Does “75% of the allotment” refer to 75% of the total allocated to an applicant or is it 75% of actual dollars reimbursed?

Question 50: Do the CARES Act fund usage restrictions refer to Governor Abbott’s position or a statement from the federal government?

Funding Allocation and Associated Responsibilities Question 51: Will cities within counties under 500,000 population receive funding directly, or will the funds

go to the county government first and the county would then in turn make the funds available to the City?

Question 52: The May 11, 2020 letter says cities and counties should work together. How is the $55 per capita allocation for both the City and the County? Is it $55 for each, or is there an allocation between the City and the County?

Question 53: Some counties are not included in the 20% allocation list on the website. 8 of the 27 counties who have no COVID cases at this time are not listed. What is the rationale utilized to comprise the list?

Question 54: If one application (county and cities within it) is to be submitted through FEMA’s Public


Assistance Program (75% match for Category B), does this funding need to be handled the same way, or can each city and the county submit a certification separately?

Question 55: Would a County jurisdiction be held responsible for any misallocation of funds by a City jurisdiction under the CRF process? Does the requirement for each jurisdiction to apply separately from the other to receive their funds alleviate any liability on the part of the County for any City misappropriations, either intentional or otherwise?

Cities Located in Multiple Counties Question 56: If a city is located within two counties, can the city utilize CRF funding from one county for

expenses in the other county? Question 57: If a city is located within two counties, can the city utilize CRF funding from one county to

perform testing at a nursing home facility in the other county? Question 58: In the past, cities located within two counties were required by FEMA to complete project

worksheets through the county the damage was in but were eventually allowed to submit projects through which ever county was more efficient. Does the same requirement apply for CRF funds?

Question 59: If a City is located within more than one county and one of those counties is a jurisdiction that

received funds directly from the U.S. Treasury but another is not, what is the appropriate route to seek Coronavirus relief funds?

Question 60: If a city spans two different counties, would the city be responsible for requesting all city funds regardless of which county it is located in?

Question 61: If a city is located within two counties, can the city utilize CRF funding from one county to

purchase PPE for distribution to local businesses in the other county? Treasury Guidance and Treasury FAQs Question 62: Regarding the FAQs – p. 5 – Which category of expense from the Terms & Conditions would

the small business support fall under? I am thinking perhaps #5 – expenses associated with the provision of economic support in connection with the COVID-19 health emergency.

Question 63: Regarding CRF Guidance – p. 2 – If a city has an EMS department that could provide emergency medical response and transportation to COVID patients but that department’s operations are budgeted in the most recently approved budget and at this point, there is no change in the schedule or operation of this department due to COVID-19 – would any of the EMS expenses qualify as medical expenses?

Question 64: Regarding CRF Guidance – p. 2 – Does this category only include supplies related to public safety employees? If a city installed sneeze guards, bought extra sanitizer, masks, and


gloves for personnel who are not medical personnel, police officers, social workers, CPS officers, service providers for older adults or individuals with disabilities, or other public health or safety employees, does this mean these expenses are not considered medical expenses?

Question 65: Regarding CRF Guidance – p. 2 – What are “expenses for technical assistance to local authorities” listed in the medical expense category? Could this be legal assistance related to COVID-19 orders? Could this be IT equipment or assistance to setup remote meeting capability for public meetings such as City Council meetings? Or maybe that would fall under “expenses for public safety measures”?

Question 66: On the TDEM CARES Act website under Coronavirus Relief Fund (CRF) FAQs, the following question and response was noted:

May a unit of local government receiving a Fund payment transfer funds to another unit of government? Yes. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent city would not be permissible if the funds were intended to be used simply to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify as an eligible expenditure.

Given school districts are political subdivisions, does the same answer apply to Councils of Governments (COGs), also political subdivisions? If yes, could any county served by the COG transfer funds to cover necessary expenditures due to the public health emergency (assuming all other criteria as noted above are met)?

Coordination with Other Sources of Funding Question 67: What is the difference between this grant and the grant that the Governor asked entities to

apply for through his office on April 15th: https://gov.texas.gov/news/post/governor-abbott-announces-38-million-in-federal-covid-19-emergency-funding-for-local-governments

Question 68: Is reimbursement for “similar” costs under CRF and FEMA’s Emergency Protective

Measures (Category B) allowable under both funding sources? Or do cities need to be bound to one or the other?

Question 69: If an applicant were to utilize these funds on a particular item, would that applicant not be eligible to submit for FEMA reimbursement also, once the incident period ends?

Question 70: Please provide a quick explanation of the differences and similarities of the funding from CARES and the FEMA grant for COVID-19 funds.

Question 71: Who at the state can assist applicants with determining the most efficient and effective manner of utilizing the various Federal funding streams while preventing duplication of benefits?


Eligible Costs

Answer Yes, this is an eligible expense under the CRF.

Answer Yes, if related to COVID-19 and not a budgeted expense.

Answer This would cover expenses related to business interruptions related to COVID required closures.

Answer This would be covered under #2 Public Health Expenses – Expenses for public safety measures undertaken in response to COVID-19.

Question 1: If a local Volunteer Fire Department spent money, that they did not budget for, on PPE and sanitization equipment due to the Coronavirus, would the county be cleared to reimburse them with money it receives if the Volunteer Fire Department is a non-profit agency but the county does support them with some funding?

Question 2: Payroll Expenses – Is Overtime for Law Enforcement and Public Health/Healthcare eligible under this funding?

Question 3: What is included as a grant for reimbursement for costs of business interruption? Is that to pay their employees, pay their rent or utilities, purchase operational supplies, etc.?

Question 4: Can a City purchase protective equipment for small businesses that can be reimbursed?


Answer No budgeted expenses would be covered under the CRF.

Answer Yes, as long as hazard pay is not a budgeted item. CRF funds can’t cover items that are covered in an applicant’s most recent budget (regular salaries/straight time).

Answer Unfortunately, a drop in budgeted revenue does not qualify. On page 16 of the Terms and Conditions document attached, it states:

4.1 Prohibited Costs A. Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify under the statute. Revenue replacement is not a permissible use of these grant funds. In accordance with Section 3.1 all record and expenditures are subject to review.

Answer In general, it refers to overtime. However, if an applicant has eligible employees who are working in a substantially different role than their regular job, straight time would be eligible. Please see U.S. Treasury guidance.

Question 5: Regarding payroll expenses and for public safety, food delivery, etc., Exhibit B, 8b states “Were not accounted for in the budget…”. If an applicant has public safety personnel and home food delivery for senior citizens which was switched to substantially dedicated to mitigating COVID-19, but mostly within existing budget, would these expenses not qualify for the $55 per capita allocation?

Question 6: Can hazard pay be back paid to employees starting March 1, 2020 to current date if it is not included in this year’s budget?

Question 7: Would a drop in budgeted revenue qualify?

Question 8: The CARES Act Relief Fund Grant Program mentions payroll related to the COVID-19 emergency as an eligible expense. Does that mean straight time and overtime?


Answer Yes, this would be an eligible cost as long as it is not a part of budgeted cleaning expenses (it would need to be above and beyond, they would need to provide documentation supporting this and it must be for COVID-19).

Answer Yes, as long as it’s for COVID-19.

Answer Yes, if they closed playgrounds as a result of orders on social distancing.

Answer This would be an eligible expense IF it were for employees (public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID19 public health emergency) who are necessary to the function of government.

Answer Yes.

Question 9: Can an applicant use Coronavirus Relief Fund for the additional cleaning and cleaning products to fight the virus at all of its facilities?

Question 20: Can the funds be used for the purchase of hand sanitizer for all of an applicant’s facilities?

Question 31: Can the funds be used to pay for government employees to barricade playgrounds?

Question 42: Can an applicant utilize these funds for contracting with a person to provide childcare, so employees do not miss work when their children lost childcare?

Question 13: Are the funds available for antibody testing of all employees?


Answer They can if the funds are used for eligible expenses. And, the county would need to ensure they follow the 75% rule, using the first three categories.

Answer Guidance can be found on https://tdem.texas.gov/crf.

Answer Federal funds will be used to reimburse for this testing although which specific fund is unclear – it will be whichever is best to maximize the use of funding for everyone.

Answer Please see guidance from the U.S. Treasury: The Guidance states that the Fund may support a “broad range of uses” including payroll expenses for several classes of employees whose services are “substantially dedicated to mitigating or responding to the COVID-19 public health emergency.”

Question 14: Can a city, who receives money under CRF, give some or all of that money to a special water district within their city?

Question 15: Is there a list out there that shows specific COVID-19 related costs that are eligible for reimbursement?

Question 16: Is the TDEM reimbursement for nursing home testing going to come out of the counties’ allotment of funds or is this going to come from somewhere else?

Question 17: Would this include general employees who are not public safety or healthcare that are responsible for managing reimbursement of COVID-19 funds, managing budgets related to COVID-19 expenditures, purchasing COVID-19 protective equipment, staff who have been cross-trained to operate COVID-19 hotlines or information channels, or public information officers dedicated to keeping the community updated with services offered to help treat, mitigate or respond to COVID-19 public health measures?

https://tdem.texas.gov/crf


Answer If an applicant has documentation that clearly shows the costs that are above and beyond regular, budgeted expenses (e.g. a contract amendment or something else that documents the additional costs), the additional costs would be eligible.

Answer Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID19 public health emergency. These expenses would need to be documented carefully.

Answer Payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID19 public health emergency. These expenses would need to be documented carefully.

Answer You would not be able to pay for an item with CRF and then claim that through FEMA. That is what is referred to as “duplication of benefits” and is not allowable with any federal funding stream.

Question 18: If an applicant is over budget on part-time EMS workers who staff an ambulance, could these funds be used to cover the extra cost above the budgeted amount?

Question 19: Can the funds be used to pay employee cost of Emergency Management Coordinator for time spent on COVID-19 activities?

Question 20: Can the funds be used to pay employee cost of a City Manager for time spent on COVID-19 activities?

Question 21: In an instance where COVID-19 created a need for an EMC to have a dedicated vehicle for the purpose of emergency management; if the vehicle is to be used to conduct COVID surveillance, respond to medical calls, transport equipment, check on and enforce the Governor’s executive orders, and any other COVID related issues that continue to arise would the purchase be an eligible cost?


Answer Administrative leave would be an eligible expense if for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID19 public health emergency.

Answer The Guidance provides examples of broad classes of employees whose payroll expenses would be eligible expenses under the Fund. These classes of employees include public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. Payroll and benefit costs associated with public employees who could have been furloughed or otherwise laid off but who were instead repurposed to perform previously unbudgeted functions substantially dedicated to mitigating or responding to the COVID-19 public health emergency are also covered. Other eligible expenditures include payroll and benefit costs of educational support staff or faculty responsible for developing online learning capabilities necessary to continue educational instruction in response to COVID-19-related school closures. Please see the Guidance for a discussion of what is meant by an expense that was not accounted for in the budget most recently approved as of March 27, 2020.

Answer Please see above.

Question 22: Is administrative leave is an allowable expense under CRF? It appears that it would be given: 5. Expenses associated with the provision of economic support in connection with the COVID-19

public health emergency, and 6. Any other COVID-19-related expenses reasonably necessary to the function of government that

satisfy the Fund’s eligibility criteria.

Question 23: What are some examples of types of covered employees?

Question 24: Or is this category strictly to be used for any employee categorized by definition as public safety, public health, or healthcare?


Answer Please see guidance below from the U.S. Treasury on covered costs related to this. Please note that up to 25% of funds can be spent on this category. Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, such as:

• Expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures.

• Expenditures related to a State, territorial, local, or Tribal government payroll support program. • Unemployment insurance costs related to the COVID-19 public health emergency if such costs will

not be reimbursed by the federal government pursuant to the CARES Act or otherwise.

Answer It would be difficult to use CRF to pay for a public health building. While this would probably be considered an eligible expense, all funds must be incurred by December 30 of this year. Incurred is defined by the U.S. Treasury as funds being disbursed. Basically, all costs related to the building would have to be spent (e.g. check written) by December 30. It might be possible to take an existing space and turn into a public health building. Applicants interested in this should submit a justification document for review.

Question 25: Can the City give cash grants for small businesses that can be reimbursed?

Question 26: For a rural county that doesn’t have a hospital, can the funds be used to build a Public Health building that can be used to mitigate the spread of the COVID-19 virus? This building would have exam rooms and bays for drive through testing. The building would be used by our local health official and other medical staff. Can the funds be used for construction of this building as well as the outfitting of medical supplies? If they can, are there certain things outlined that the funds can’t be used for, pertaining to the construction and outfitting?


Answer This would be an eligible expense. The cost would be limited by your allocation. The key thing to remember is that 75% of the funds you spend must be spent on the following three categories:

1. Medical expenses 2. Public health expenses 3. Payroll expenses for public safety, public health, health care, human services, and similar

employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency.

Answer The only documentation needed to process the initial 20% payment is to fill out the terms and conditions (last three signature pages). This 20% will be sent by electronic funds transfer when completed. However, you will need to provide documentation for the first 20% payment prior to requesting additional funds from your allocation. In simple terms, you will need to provide documentation that proves the money is spent on eligible costs as outlined in the terms and conditions. An example could be an invoice and proof of payment for purchase of personal protective equipment (PPE). This would mean you could submit the detailed invoice that outlines what is being purchased (so the state can verify the purchases fall under eligible costs) and then proof that the city made payment. Another example would be if you were to use funds on paying for city staff overtime related to COVID. The city would need to provide documentation (usually from whatever timekeeping system that is used) on each employee, regular hours worked, overtime hours worked and generally a pay policy.

Question 27: In an historical building can an applicant install doors and barriers that protect office staff and satisfies the Historical Commission? If these qualify, can they be done in a manner that matches the existing counters and are of lasting quality?

Question 28: The Guidance says that funding can be used to meet payroll expenses for public safety, public health, health care, human services, and similar employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency. How does a government determine whether payroll expenses for a given employee satisfy the “substantially dedicated” condition?


Answer Costs incurred for a “substantially different use” include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty’s ordinary responsibilities. Note that a public function does not become a “substantially different use” merely because it is provided from a different location or through a different manner. For example, although developing online instruction capabilities may be a substantially different use of funds, online instruction itself is not a substantially different use of public funds than classroom instruction.

Question 29: The Guidance says that a cost was not accounted for in the most recently approved budget if the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. What would qualify as a “substantially different use” for purposes of the Fund eligibility?


Answer Only in the case that these employees were deployed with significantly different job responsibilities related to COVID-19. Please see U.S. Treasury guidance below.

Question: The Guidance says that a cost was not accounted for in the most recently approved budget if the cost is for a substantially different use from any expected use of funds in such a line item, allotment, or allocation. What would qualify as a “substantially different use” for purposes of the Fund eligibility?

Answer: Costs incurred for a “substantially different use” include, but are not necessarily limited to, costs of personnel and services that were budgeted for in the most recently approved budget but which, due entirely to the COVID-19 public health emergency, have been diverted to substantially different functions. This would include, for example, the costs of redeploying corrections facility staff to enable compliance with COVID-19 public health precautions through work such as enhanced sanitation or enforcing social distancing measures; the costs of redeploying police to support management and enforcement of stay-at-home orders; or the costs of diverting educational support staff or faculty to develop online learning capabilities, such as through providing information technology support that is not part of the staff or faculty’s ordinary responsibilities.

Note that a public function does not become a “substantially different use” merely because it is provided from a different location or through a different manner. For example, although developing online instruction capabilities may be a substantially different use of funds, online instruction itself is not a substantially different use of public funds than classroom instruction.

Answer Unfortunately, the simple answer is no – it would not be an eligible cost to replace an EMS Unit. One of the requirements is costs related to COVID-19. If there was a scenario where, due to COVID, an applicant has an EMS unit that couldn’t withstand the additional strain for increased calls related to COVID and a new unit was needed, that is a possible yes. There would also be question about any budgeted costs for the EMS unit, particularly if it is replacing a budgeted unit. If the need for this vehicle is directly related to COVID, the applicant should draft a justification and submit for consideration. As a side note, if this became an eligible expense, the applicant would need to purchase and disburse the funds prior to December 30, 2020.

Question 30: Can the City pay for all fire and police personnel cost between March and December or only for time spent on COVID-19 activities for these department?

Question 31: Is the purchase of a new medic/ambulance unit eligible under these guidelines if it is to replace an existing ambulance with significant mechanical issues?


Answer Yes, this would be covered under U.S. Treasury guidance below and found on page 2 of the document at the following link: https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments.pdf 4. Expenses of actions to facilitate compliance with COVID-19-related public health measures, such as: • COVID-19-related expenses of maintaining state prisons and county jails, including as relates to sanitation and improvement of social distancing measures, to enable compliance with COVID-19 public health precautions.

Answer The county could claim overtime for jailers through FEMA Category B. Through the CRF, costs could be covered related to COVID-19 but not regular job duties. There is more information on this at the following link from the U.S. Treasury: https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Frequently-Asked-Questions.pdf

Answer Yes, some expenditures would be covered under U.S. Treasury guidance below and on page 3 #5 at the following link: https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments.pdf Expenses associated with the provision of economic support in connection with the COVID-19 public health emergency, such as: • Expenditures related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures.

Question 32: When a county houses inmates on a state hold while the state is not picking up inmates due to Covid-19, the county is not legally allowed to release the inmates. In this situation, are unbudgeted expenses including medical care covered under CRF even if the inmates are housed past the time the county is statutorily required to house them?

Question 33: In reference to the previous question - if so, will the county be able to recover any of the staff time for the jailers?

Question 34: If the county sets up an economic relief fund to assist small business who were forced to shut down and are now trying to get back on their feet, would these cost be reimbursable through CRF?








Funding Process Steps and Documentation Requirements

Answer This triggers the process to receive the initial 20% drawdown. You will need to submit supporting documentation for this initial amount prior to requesting reimbursement for additional allocation amounts.

Answer You should start with providing documentation for the initial 20% allocation.

Answer As soon as TDEM receives your form and direct deposit information, the funding will be processed. This takes about five days (after initial documentation is received).

Answer TDEM will not be using eGrants for the CRF. TDEM will process funding through the TDEM Grants Management System (GMS).

Answer TDEM staff in the field can assist directly with any questions on documentation.

Question 35: By submitting the CRF Certification, does that only trigger the process for the 20% drawdown, or does that also initiate our overall application for reimbursement?

Question 36: If it is only for the automatic drawdown, how does an applicant begin the process of further registering with TDEM to start submitting for reimbursement?

Question 37: How long does it typically take to be approved for the 20% to become available and for the reimbursement process to become available?

Question 38: Is the full reimbursement application going to be through e-grants?

Question 39: What process does a City need to follow to demonstrate costs incurred?


Answer Yes, but they will still need to provide documentation for this initial 20%. If they request additional funds from their entire allocation, they will need to provide documentation for this initial 20% prior to receiving additional funds.

Answer Yes, all funding not spent on eligible expenses with documentation must be returned to the state.

Answer As soon as TDEM has the certification signed and direct deposit paperwork, TDEM estimates it will be sent via electronic funds transfer in about a week.

Answer Local approval procedures still apply to CRF funds. TDEM will not direct local jurisdictions on what their processes are.

Question 40: After submitting the necessary eligibility certification, does an applicant automatically get the automatic draw down of 20% without having to submit any supporting documentation as per the press release issued by the Governor’s Office?

Question 41: If an applicant does not incur expenses (payroll, PPE, supplies, equipment, etc. ) that are related to COVID-19 that total the 20% draw down amount, does that applicant have to give the remaining funds back to TDEM?

Question 42: What is the timeline to receive the initial amount of 20%?

Question 43: Should a local jurisdiction continue to follow local procedures? For example, awaiting ratification of Commissioner Court approval prior to submitting documents.


Answer The only documentation needed to process the initial 20% payment is to fill out the terms and conditions (last three signature pages). This 20% will be sent by electronic funds transfer when completed. However, you will need to provide documentation for the first 20% payment prior to requesting additional funds from your allocation. In simple terms, you will need to provide documentation that proves the money is spent on eligible costs as outlined in the terms and conditions. An example could be an invoice and proof of payment for purchase of personal protective equipment (PPE). This would mean you could submit the detailed invoice that outlines what is being purchased (so the state can verify the purchases fall under eligible costs) and then proof that the city made payment. Another example would be if you were to use funds on paying for city staff overtime related to COVID. The city would need to provide documentation (usually from whatever timekeeping system that is used) on each employee, regular hours worked, overtime hours worked and generally a pay policy.

Answer Documentation is required with both the 20% initial payment and the remaining part of the allocation. The difference is that jurisdictions will receive 20% up front and will provide documentation for that 20% “after the fact.” If they need additional funds above the 20%, they will have to provide documentation for the first 20% before receiving a second allocation. TDEM is working to make it as painless as possible, but the state ultimately has to guarantee, to the federal government, that the funds were spent on eligible costs and used appropriately. Terms and Conditions / Funding Usage Restrictions

Answer In relation to this document, the city would be the grantee.

Question 44: Do municipalities need to submit documentation on expenses incurred with the Mayor's signature form to get the initial 20% of reimbursement?

Question 45: Will the initial 20% will be paid to the counties with no requirement for documentation or expenses and only the second amounts require documentation?

Question 46: Regarding the Terms & Conditions – p. 6 – Is a city considered a subrecipient or grantee? Is the State the Grantee and the City the subrecipient?


Answer Yes, 75% of the funds must be spent on Categories 1-3.

Answer Yes, there is a maximum limit. 75% of the funds used from the allocation must be used on the first three categories outlined in guidance documents and the terms and conditions: medical expenses, public health expenses and eligible personnel expenses. The area that supports small businesses is one of three categories for which 25% of the funds can be used.

Answer The requirement to spend 75% on the first three Coronavirus Relief Fund (CRF) categories applies to any part of the allocation that is spent. If an applicant was only to spend $10,000 of their CRF allocation, 75% of the $10,000 should be spent on the first three categories.

Question 47: Regarding Terms & Conditions – p. 6 – Would a city have to agree that 75% of their allotment will be spent on medical, public health, and payroll expenses (Categories 1-3)? For a small town with very few cases, this will be a significant limiting factor. Would qualifying expenses in Categories 4-6 be limited because the reimbursement has to be 75% from Categories 1-3?

Question 48: Economic Support – Is there a max limit on how much can be used to support local small businesses?

Question 49: Does “75% of the allotment” refer to 75% of the total allocated to an applicant or is it 75% of actual dollars reimbursed?


Answer The Coronavirus Relief Fund (CRF) portion of the CARES ACT outlined the following three requirements:

1. Are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19)

2. Were not accounted for in the budget most recently approved as of March 27, 2020 for the state or government; and

3. Were incurred during the period that begins on March 1, 2020 and ends on December 30, 2020. This is not related to a statement from Governor Abbott or a statement from the federal government, but written into law. As a result of that law, all funds related to CRF must be COVID-19 related. Funding Allocation and Associated Responsibilities

Answer The city will receive their own allocation and be responsible for the terms and conditions.

Answer Each county and each incorporated jurisdiction will receive a separate allocation which is based on $55 per capita. A county’s allocation is based on the unincorporated population of the county. Each of these jurisdictions will need to download the terms and conditions and submit the forms. In addition, each jurisdiction will be responsible for the funds and providing documentation to support that these funds are spent as required.

Question 50: Do the CARES Act fund usage restrictions refer to Governor Abbott’s position or a statement from the federal government?

Question 51: Will cities within counties under 500,000 population receive funding directly, or will the funds go to the county government first and the county would then in turn make the funds available to the City?

Question 52: The May 11, 2020 letter says cities and counties should work together. How is the $55 per capita allocation for both the City and the County? Is it $55 for each, or is there an allocation between the City and the County?


Answer Thank you for bringing this to our attention. All counties, at a minimum (unincorporated areas are not listed and are a part of the county’s numbers), should be listed on the site. TDEM isn’t sure what happened, but the spreadsheet has been updated to include these counties and TDEM is pushing this through QA/QC again.

Answer For the Coronavirus Relief Fund (CRF), each county and each incorporated jurisdiction within the county must submit separate terms and conditions document. They will not be connected and each entity will be responsible for their own funding allocations.

Answer A county would not be held responsible for a jurisdiction’s funds (and their management or mismanagement) if separate allocations and separate terms and conditions are signed. However, if a jurisdiction is provided funds by a county, the county would ultimately be responsible for those funds. A municipality with their own allocation who signs a separate terms and conditions document is responsible for their own management of the funds and the county would not be responsible. Cities Located in Multiple Counties

Answer Yes, there is no mandate or guideline that disallows this.

Question 53: Some counties are not included in the 20% allocation list on the website. 8 of the 27 counties who have no COVID cases at this time are not listed. What is the rationale utilized to comprise the list?

Question 54: If one application (county and cities within it) is to be submitted through FEMA’s Public Assistance Program (75% match for Category B), does this funding need to be handled the same way, or can each city and the county submit a certification separately?

Question 55: Would a County jurisdiction be held responsible for any misallocation of funds by a City jurisdiction under the CRF process? Does the requirement for each jurisdiction to apply separately from the other to receive their funds alleviate any liability on the part of the County for any City misappropriations, either intentional or otherwise?

Question 56: If a city is located within two counties, can the city utilize CRF funding from one county for expenses in the other county?


Answer Yes.

Answer While being managed similarly to FEMA funding, the CRF operates under different law and guidance. There is no law, rule or policy relating to this same factor with the CRF funds.

Answer After submitting the signed terms and conditions, the city will receive the allocations based on the population in the count(y/ies) which did not receive funding directly from the U.S. Treasury. Regarding the count(y/ies) that did receive funding directly from the U.S. Treasury, you are encouraged to discuss funding with that county directly.

Answer Yes, the city is responsible for both funding allocations. When TDEM receives the paperwork the applicant only needs to fill it out once and submit. TDEM is trying to combine payments in these cases, but it is possible it will arrive via electronic funds transfer in two payments.

Question 57: If a city is located within two counties, can the city utilize CRF funding from one county to perform testing at a nursing home facility in the other county?

Question 59: If a City is located within more than one county and one of those counties is a jurisdiction that received funds directly from the U.S. Treasury but another is not, what is the appropriate route to seek Coronavirus relief funds?

Question 60: If a city spans two different counties, would the city be responsible for requesting all city funds regardless of which county it is located in?

Question 58: In the past, cities located within two counties were required by FEMA to complete project worksheets through the county the damage was in, but were eventually allowed to submit projects through which ever county was more efficient. Does the same requirement apply for CRF funds?


Answer Purchasing PPE to distribute to local businesses is NOT an eligible expense. U.S. Treasury guidance only allows purchase of PPE for public health and safety workers. The following is direct guidance as found on Page 2 under #2 of eligible expenses (second bullet): https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Guidance-for-State-Territorial-Local-and-Tribal-Governments.pdf “Expenses for acquisition and distribution of medical and protective supplies, including sanitizing products and personal protective equipment, for medical personnel, police officers, social workers, child protection services, and child welfare officers, direct service providers for older adults and individuals with disabilities in community settings, and other public health or safety workers in connection with the COVID-19 public health emergency.” Treasury Guidance and Treasury FAQs

Answer Correct, #5 is the only place these types of expenses would fall.

Answer These expenses would not qualify.

Question 61: If a city is located within two counties, can the city utilize CRF funding from one county to purchase PPE for distribution to local businesses in the other county?

Question 62: Regarding the FAQs – p. 5 – Which category of expense from the Terms & Conditions would the small business support fall under? I am thinking perhaps #5 – expenses associated with the provision of economic support in connection with the COVID-19 health emergency.

Question 63: Regarding CRF Guidance – p. 2 – If a city has an EMS department that could provide emergency medical response and transportation to COVID patients but that department’s operations are budgeted in the most recently approved budget and at this point, there is no change in the schedule or operation of this department due to COVID-19 – would any of the EMS expenses qualify as medical expenses?




Answer This would be allowed under the Treasury’s guidance of “Expenses of actions to facilitate compliance with COVID-19-related public health measures”.

Answer I believe both would be covered, but TDEM is confirming this.

Question 64: Regarding CRF Guidance – p. 2 – Does this category only include supplies related to public safety employees? If a city installed sneeze guards, bought extra sanitizer, masks, and gloves for personnel who are not medical personnel, police officers, social workers, CPS officers, service providers for older adults or individuals with disabilities, or other public health or safety employees, does this mean these expenses are not considered medical expenses?

Question 65: Regarding CRF Guidance – p. 2 – What are “expenses for technical assistance to local authorities” listed in the medical expense category? Could this be legal assistance related to COVID-19 orders? Could this be IT equipment or assistance to setup remote meeting capability for public meetings such as City Council meetings? Or maybe that would fall under “expenses for public safety measures”?


Answer It is possible that a county can use CRF funds for school districts and COGs if they so desired and the money is used within the parameters outlined in the terms and conditions. I would caution any jurisdiction to focus on eligible costs and the requirement to spend 75% of funds on the first three categories:

1. Medical expenses 2. Public health expenses 3. Payroll expenses for public safety, public health, health care, human services, and similar

employees whose services are substantially dedicated to mitigating or responding to the COVID-19 public health emergency,

Coordination with Other Sources of Funding

Answer This is not the same funding source. The funding in the link is through the U.S. Department of Justice, Bureau of Justice Assistance and is different.

Question 66: On the TDEM CARES Act website under Coronavirus Relief Fund (CRF) FAQs, the following question and response was noted:

May a unit of local government receiving a Fund payment transfer funds to another unit of government? Yes. For example, a county may transfer funds to a city, town, or school district within the county and a county or city may transfer funds to its State, provided that the transfer qualifies as a necessary expenditure incurred due to the public health emergency and meets the other criteria of section 601(d) of the Social Security Act outlined in the Guidance. For example, a transfer from a county to a constituent city would not be permissible if the funds were intended to be used simply to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify as an eligible expenditure.

Given school districts are political subdivisions, does the same answer apply to Councils of Governments (COGs), also political subdivisions? If yes, could any county served by the COG transfer funds to cover necessary expenditures due to the public health emergency (assuming all other criteria as noted above are met)?

Question 67: What is the difference between this grant and the grant that the Governor asked entities to apply for through his office on April 15th: https://gov.texas.gov/news/post/governor-abbott-announces-38-million-in-federal-covid-19-emergency-funding-for-local-governments

https://gov.texas.gov/news/post/governor-abbott-announces-38-million-in-federal-covid-19-emergency-funding-for-local-governments

https://gov.texas.gov/news/post/governor-abbott-announces-38-million-in-federal-covid-19-emergency-funding-for-local-governments


Answer There are eligible costs that are the same under both CRF and FEMA Public Assistance (PA). You can determine which fund is best for your jurisdiction. However, you cannot have a duplication of benefits – using both funds for the same cost.

Answer You would not be able to pay for an item with CRF and then claim that through FEMA. That is what is referred to as “duplication of benefits” and is not allowable with any federal funding stream.

Answer While there are many expenses that are eligible under both FEMA and the CRF, they are completely different programs. TDEM Regional Unit Chiefs can provide a fact sheet on eligible expenses under the FEMA Public Assistance (PA) program. A noticeable difference between the two funds is the cost share. FEMA funds have a 75% (federal)/25% (local) cost share. CRF funds do not have a cost share. There are also some differences in allowable costs with CRF funds able to cover some types of expenses that FEMA does not (e.g. making grants available for small businesses).

Answer As long as the funding is spent within the guidelines of the law, the U.S. Treasury guidelines and the terms and conditions, you should be good. If you have any questions, please don’t hesitate to reach out to this email [email protected] or your local TDEM employees.

Question 68: Is reimbursement for “similar” costs under CRF and FEMA’s Emergency Protective Measures (Category B) allowable under both funding sources? Or do cities need to be bound to one or the other?

Question 69: If an applicant were to utilize these funds on a particular item, would that applicant not be eligible to submit for FEMA reimbursement also, once the incident period ends?

Question 70: Please provide a quick explanation of the differences and similarities of the funding from CARES and the FEMA grant for COVID-19 funds.

Question 71: Who at the state can assist applicants with determining the most efficient and effective manner of utilizing the various Federal funding streams while preventing duplication of benefits?

mailto:[email protected]


AGENDA ITEM:

SUBMITTED BY:

SUMMARY:

FUNDING:

RECOMMENDEDMOTION:


AGENDA SUMMARY FORM

6/16/2020

Discuss and consider a resolution approving a bid award recommendation from Public Works Staff for 2020 City of Ennis 14” Reclaimed Waterline Relocation and authorizing the City Manager to enter into a contract with Circle H Contractors, LP in a sum not to exceed One Hundred and Eighty-eight Thousand Nine Hundred Fifty Dollars and Zero Cents ($188,950.00)

Ed Green

Sewer Capital Funds

Bids for the 2020 City of Ennis 14” Reclaimed Waterline Relocation were opened and read aloud at 10:40 A.M. on Wednesday June 10, 2020, in the City Hall Commission Chambers. A total of fifeteen (15) bids were received and the low bid contractor was considered and recommended for award. The lowest bidder is Circle H Contractors, LP in the amount of One Hundred and Fifty One Thousand One Hundred Sixty Seven Dollars and Fifty Cents ($151,167.50). The not to exceed requested amount includes an additional twenty five percent (25%) contingency for potential change orders for additional repairs of the Reclaimed Waterline that runs from the Wastewater Treatment Plant to the Ennis (Luminant) Power Plant. The relocation project includes the replacement of approximately 1,925 LF of 14” reclaimed water line.

6

Page 1 of 2

Owner/Project: City of Ennis 14" Reclaimed Waterline RelocationBid Date: June 10, 2020

Item Number

Item Description UnitApprox. Quantity

Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount

1 Mobilization LS 1 12,000.00$ 12,000.00$ 23,225.00$ 23,225.00$ 10,000.00$ 10,000.00$ 12,205.00$ 12,205.00$

214-Inch C905 DR-18 PVC Water Pipe, Complete in Place (Pipe, Restraints, Thrust Blocking, Bedding, & Backfill)

LF 1925 65.00$ 125,125.00$ 23.50$ 45,237.50$ 52.00$ 100,100.00$ 60.00$ 115,500.00$

3 Connect to Existing 14-Inch Water Line EA 2 3,000.00$ 6,000.00$ 3,975.00$ 7,950.00$ 5,200.00$ 10,400.00$ 1,600.00$ 3,200.00$ 4 Ductile Iron Fittings TON 1.5 6,000.00$ 9,000.00$ 5,475.00$ 8,212.50$ 5,000.00$ 7,500.00$ 4,000.00$ 6,000.00$ 5 Air Pressure Release Valve EA 3 6,500.00$ 19,500.00$ 6,975.00$ 20,925.00$ 9,500.00$ 28,500.00$ 8,000.00$ 24,000.00$ 6 Trench Safety LF 1925 1.00$ 1,925.00$ 0.10$ 192.50$ 1.00$ 1,925.00$ 1.00$ 1,925.00$ 7 Hydrostatic Testing LF 1925 1.00$ 1,925.00$ 1.00$ 1,925.00$ 2.00$ 3,850.00$ 1.00$ 1,925.00$ 8 Owner’s Contingency LS 1 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$

1 Remove and dispose of Existing 14-Inch DIP Water Pipe Linear Foot 1850 27.00$ 49,950.00$ 10.00$ 18,500.00$ 6.50$ 12,025.00$ 3.00$ 5,550.00$

Item Number



1 Mobilization LS 1 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 19,500.00$ 19,500.00$ 10,500.00$ 10,500.00$


LF 1925 50.00$ 96,250.00$ 55.00$ 105,875.00$ 56.00$ 107,800.00$ 53.00$ 102,025.00$

3 Connect to Existing 14-Inch Water Line EA 2 4,500.00$ 9,000.00$ 3,762.50$ 7,525.00$ 2,600.00$ 5,200.00$ 3,400.00$ 6,800.00$ 4 Ductile Iron Fittings TON 1.5 3,159.00$ 4,738.50$ 8,000.00$ 12,000.00$ 5,000.00$ 7,500.00$ 4,600.00$ 6,900.00$ 5 Air Pressure Release Valve EA 3 7,500.00$ 22,500.00$ 10,000.00$ 30,000.00$ 8,000.00$ 24,000.00$ 14,700.00$ 44,100.00$ 6 Trench Safety LF 1925 2.00$ 3,850.00$ 1.00$ 1,925.00$ 2.50$ 4,812.50$ 2.00$ 3,850.00$ 7 Hydrostatic Testing LF 1925 2.00$ 3,850.00$ 1.00$ 1,925.00$ 3.00$ 5,775.00$ 2.00$ 3,850.00$ 8 Owner’s Contingency LS 1 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$


Yellow highligt indicates contractor mathmatical error on original bid form

14" RECLAIMED WATER LINE RELOCATION BID TABULATION

J & K Excavation, LLC Summit Solutions, Inc. GRod Construction, LLC. Western Municipal Construction of

Texas, LLC. Water Line Items

Circle H Contractors L.P.

$ 132,667.50

$ 18,500.00

$ 151,167.50

Saber Development Corp.

$ 187,275.00

$ 12,025.00

$ 199,300.00 ALTERNATE 1 Subtotal $ 49,950.00

G & A Boring

$ 189,755.00

$ 5,550.00

$ 195,305.00 14” Reclaimed Water Line Relocation Total Bid Including Alternate $ 250,425.00

Water Line Items

ALTERNATE 1

Engineer's OPPC

14” Reclaimed Water Line Relocation Total Base Bid $ 200,475.00

$ 203,025.00

14” Reclaimed Water Line Relocation Total Bid Including Alternate $ 219,588.50 $ 203,500.00 $ 221,787.50 $ 214,125.00 ALTERNATE 1 Subtotal $ 44,400.00 $ 9,250.00 $ 22,200.00 $ 11,100.00

ALTERNATE 114” Reclaimed Water Line Relocation Total Base Bid $ 175,188.50 $ 194,250.00 $ 199,587.50

Page 2 of 2

Item Number



1 Mobilization LS 1 11,000.00$ 11,000.00$ 23,500.00$ 23,500.00$ 9,500.00$ 9,500.00$ 14,143.00$ 14,143.00$


LF 1925 75.00$ 144,375.00$ 55.00$ 105,875.00$ 75.25$ 144,856.25$ 80.00$ 154,000.00$



Item Number



1 Mobilization LS 1 2,000.00$ 2,000.00$ 45,000.00$ 45,000.00$ 5,500.00$ 5,500.00$ 30,000.00$ 30,000.00$


LF 1925 96.00$ 184,800.00$ 75.00$ 144,375.00$ 95.00$ 182,875.00$ 100.00$ 192,500.00$



Yellow highligt indicates contractor mathmatical error on original bid form

ALTERNATE 1

14" RECLAIMED WATER LINE RELOCATION BID TABULATION (Continued)

Canary Construction, Inc. Excel Aircraft, LLC. Day services, LLC. FM Utilities, LLC. Water Line Items

14” Reclaimed Water Line Relocation Total Base Bid $ 224,575.00 $ 238,130.00 $ 239,637.50 $ 245,473.00

14” Reclaimed Water Line Relocation Total Bid Including Alternate $ 233,825.00 $ 258,665.00 $ 265,537.50 $ 273,223.00 ALTERNATE 1 Subtotal $ 9,250.00 $ 20,535.00 $ 25,900.00 $ 27,750.00

Water Line Items

14” Reclaimed Water Line Relocation Total Base Bid $ 248,150.00 $ 265,000.00 $ 266,075.00

$ 92,500.00

Atkins Bros. Equip. Co. Ortega Land Clearing, LLC Excel 4 Construction, LLC. Gomez Brothers Construction, Inc.

$ 294,850.00 ALTERNATE 1

ALTERNATE 1 Subtotal $ 55,500.00 $ 15,725.00 $ 46,250.00

14” Reclaimed Water Line Relocation Total Bid Including Alternate $ 303,650.00 $ 280,725.00 $ 312,325.00 $ 387,350.00


AGENDA ITEM:

SUBMITTED BY:SUMMARY:

FUNDING:

MOTION:NAME: MOTION SECOND AYE NAYMAYOR JUENEMANNMAYOR PRO TEM HOLLANDCOMMISSIONER PRUITTCOMMISSIONER HERNANDEZCOMMISSIONER HEJNYCOMMISSIONER WATSONCOMMISSIONER HONZA

Review and Consider a Resolution designating the City Manager to calculate the Voter-Approval Tax Rate in the manner provided for a Special Taxing Unit; Finding and determining that the meeting at which this resolution is passed was noticed and is open to the public as required by law.

AGENDA SUMMARY FORM

6/16/2020

Senate Bill 2 of the 86th Texas Legislature lowered the property tax rate a taxing unit can adopt without voter approval by reducing the percentage the maintenance and operations rate may be increased from 8% to 3.5%. Special Taxing Units are not subject to the 3.5% voter-approval rate and remains subject to the 8% voter-approval rate. Senate Bill 2 provides the City Commission the ability to direct the designated officer or employee to calculate the voter-approval rate in the manner provided for a special taxing unit if any part of the taxing unit is located in an area declared a disaster area during the current tax year by the Governor or by the President of the United States. The Governor of the State of Texas declared a statewide disaster regarding the Coronavirus (Covid-19) on March 19, 2020. This Resolution designates the City Manager or his designee to calculate the voter-approval rate in a manner provided for Special Taxing Units (8% Voter-Approval Rate).

Stephen Barnes

7

RESOLUTION NO.

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF ENNIS, TEXAS, DESIGNATING THE CITY MANAGER TO CALCULATE THE VOTER-APPROVAL TAX RATE IN THE MANNER PROVIDED FOR A SPRECIAL TAXING UNIT; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED WAS NOTICED AND IS OPEN TO THE PUBLIC AS REQUIRED BY LAW.

WHEREAS, Senate Bill 2 of the 86th Texas Legislature lowered the property tax rate a taxing unit can adopt without voter approval by reducing the percentage the maintenance and operations rate may be increased from 8% to 3.5%; and WHEREAS, a special taxing unit is not subject to the 3.5% voter-approval rate and remains subject to the 8% voter-approval rate; and WHEREAS, Senate Bill 2 provides for the City Commission the ability to direct the designated officer or employee to calculate the voter-approval tax rate in the manner provided for a special taxing unit if any part of the taxing unit is located in an area declared a disaster area during the current tax year by the Governor or by the President of the United States; and WHEREAS, the Governor of the State of Texas declared a statewide disaster regarding the Coronavirus 2019 (COVID-19) on March 19, 2020 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ENNIS, COUNTY OF ELLIS, TEXAS: SECTION 1. That the City Commission of the City of Ennis, Texas, hereby designates the City Manager or his designee to calculate the voter-approval tax rate in the manner provided for a special taxing unit. SECTION 2. That it is hereby officially found and determined that the meeting at which this resolution is passed is open to the public and that public notice of the time, place and purpose of said meeting was given as required by law.

PASSED AND APPROVED BY THE CITY COMMISSION OF THE CITY OF ENNIS, TEXAS ON THIS 16th DAY OF JUNE 2020. APPROVED: ___________________________________ ANGELINE JUENEMANN, Mayor ATTEST: ______________________________________ ANGIE K. WADE, City Secretary


AGENDA ITEM:

SUBMITTED BY:

SUMMARY: FOR ACTION

References: Resolution

Exhibits

FUNDING:

RECOMMENDED

MOTION:

NAME: MOTION SECOND AYE NAY

MAYOR JUENEMANN

MAYOR PROTEM HOLLAND

COMMISSIONER PRUITT

COMMISSIONER HERNANDEZ

COMMISSIONER HEJNY

COMMISSIONER WATSON

COMMISSIONER HONZA

City Budget

Staff Recommends Approval

AGENDA SUMMARY

FORM

CC 6/16/2020

CAPTION: Discuss and consider a resolution approving a compensation study.

Marty Nelson

This item approves a compensation study that will include the following scope of work: A:

OBJECTIVES OF THE PROJECT

The recommended plans, programs, systems and administrative procedures will meet these

ten most important criteria.

- Internally equitable - Financially responsible

- Externally competitive - Efficiently administered

- Readily understood - Inclusive of employee input

- Easily updated & maintained - Reflective of City's values

- Legally compliant & defensible - Reflective of prevailing “best practices”

B. SCOPE OF THE PROJECT

The project could include: partnership with the Director of Human Resources, City Manager,

and project designee(s); occupational, organizational, and operational familiarization; position

analysis questionnaire and position classification / job titling recommendations; updated job

descriptions; EZ COMP™; base pay compensation survey and competitiveness analysis;

updated salary range recommendations and models; fiscal impact estimates and multiple

implementation scenarios; updated compensation plan and one year of compensation plan

implementation support for all included job classifications.

8

RESOLUTION NO ____________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF ENNIS, TEXAS, APPROVING A COMPENSATION STUDY AND AUTHORIZING THE CITY MANAGER TO EXPEND FUNDS AND EXECUTE ANY AND ALL DOCUMENTS REQUIRED TO COMPLETE THE STUDY AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, accurate and current data relevant to fair and market competitive wages and compensation is vital to implementing a credible wage and salary structure for city staff; and WHEREAS, the City Commission hereby finds and determines that the adoption of this Resolution is in the best interests of the citizens of the City of Ennis, Texas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ENNIS, TEXAS, AS FOLLOWS: SECTION 1. That the foregoing recitals are hereby found to be true and correct legislative findings of the City of Ennis, Texas, and are fully incorporated into the body of this Resolution. SECTION 2. Authorizes a compensation study in an amount of $36,000 plus allowable expenses for the study. SECTION 3. Authorizes the City Manager to expend funds and execute any and all documents required to complete the study. SECTION 4. That this Resolution shall become effective from and after its passage. PASSED AND APPROVED BY THE CITY COMMISSION OF THE CITY OF ENNIS, TEXAS, on this 16th day of June, 2020. _____________________________ ANGELINE JUENEMANN, Mayor City of Ennis, Texas ATTEST: _________________________ ANGIE WADE, City Secretary City of Ennis, Texas

QUOTE TO CONDUCT A CLASSIFICATION

AND COMPENSATION STUDY

FOR THE

CITY OF ENNIS

JUNE 2020

PREPARED BY

Matthew Weatherly, President Regionally: 25 Highland Park Village #100-605 Dallas, TX 75205

(888) 522-7772 / (480) 970-6019 f

June 3, 2020 Ms. Irene Kasujja Director of Human Resources City of Ennis 115 W. Brown Street Ennis, 75119

Dear Ms. Kasujja, Pursuant to your request, we are pleased to provide you with a quote and work outline to assist the City with a classification and compensation study. We specialize in these services, and have implemented classification and compensation plans for more than 1,100 public employers nationwide, including more than 325 municipal employers and more than 50 Texas public employers. Current and recently completed projects include the Cities of Frisco, Plano, Allen, Addison, Carrollton, Highland Park, University Park, Denton, Bedford, Watauga, Saginaw, Killeen, Waco, Victoria, and Richland Hills. We believe our firm is uniquely qualified to perform this study. We will utilize only full time members of our staff, who have a combined 120+ years of conducting and implementing classification and compensation studies. Thank you for your interest in our firm’s services. If we can provide any additional information, or if you would like to visit further about the City’s project needs, please contact me at any time. Sincerely,

Matthew Weatherly, President (888) 522-7772 [email protected] CC: Sam Heinz, PSPC – Austin/Dallas Office

Regional Offices in Austin and Dallas National Office: 1215 W. Rio Salado Parkway #109 Tempe, AZ 85281

888.522.7772 • FAX (480)970-6019 • www.pspc.us


http://www.pspc.us/

HISTORY AND FACTS ABOUT OUR FIRM

• HISTORY OF OUR FIRM

Public Sector Personnel Consultants (PSPC) originated in 1972 with the Public Sector Group of the international human resources consulting firm of Hay Associates. PSPC was established as an independent firm in 1982. We are a single-owner, debt-free subchapter-S corporation.

• REGIONAL STAFF

We have regional offices or affiliates in Austin, TX, Dallas, TX, Santa Fe, NM, Columbus, OH, Chicago, IL, Denver, CO, Kansas City, MO, Los Angeles, CA, Sacramento, CA, St. Paul, MN, San Diego, CA, Seattle, WA, and Tempe, AZ.

• SPECIALIZED IN COMPENSATION SERVICES

We are “super-specialists" in compensation, providing services in job analysis, position classification, job content evaluation, compensation, and directly related services. Over 98% of our classification and compensation studies have been successfully implemented by our clients.

• SPECIALIZED IN PUBLIC SECTOR CLIENTS

We provide services exclusively to public sector employers including municipalities, counties, utility districts, library districts, special districts, state governments, housing and redevelopment agencies, airport authorities, school districts, higher education, and tribal governments.

• SPECIALIZED COMPENSATION STAFF

Our staff is comprised of eight (8) full time and an additional five (5) part time senior human resources professionals with very extensive experience as compensation managers and consultants for public employers. Our staff has more than 100 years of combined experience working for and consulting to public sector employers.

• OVER 1,100 PUBLIC EMPLOYERS SERVED Our staff members have provided compensation, human resources, training and related consulting services to more than 1,100 public and 200 private employers throughout the U.S.

• AMERICAN COMPENSATION ASSOCIATION PARTICIPATION (ACA) (NOW WORLDATWORK) Our consultants are active members of ACA, including serving as instructors for the ACA certification courses.

• SPECIALIZED COMPENSATION AND RELATED RESOURCES

We utilize our EZ COMPTM salary survey and plan program, modified FES point-factor job evaluation system, AEPTM performance evaluation plan, and SNAPTM staffing needs analysis program.

• FIRST YEAR IMPLEMENTATION WARRANTY

We provide our clients with extensive implementation support during the first year, and we will analyze, evaluate, classify, and provide a salary range recommendation for any new or changed position or entire job class, at no additional cost.

PUBLIC SECTOR PERSONNEL CONSULTANTS

TEXAS EMPLOYERS SERVED BY MEMBERS OF OUR STAFF

Currently active 2020: Dallas, Humble, Taylor, Victoria, Plano, Richland Hills, Highland Park


Abilene, City of Houston Housing Authority *

Addison, Town of * Jefferson County *

Allen, City of Jefferson County Appraisal District

Austin Housing Authority Kerrville, City of

Balcones Heights, City of Killeen, City of

Baylor University Lakeway, City of *

Bedford, City of League City, City of *

Bee Cave, Village of Longview, City of *

Benbrook, City of Midland, City of

Carrizo Springs, City of Nederland, City of

Carrollton, City of New Braunfels, City of

Cedar Park, City of Odessa, City of

Colleyville, City of Palestine, City of

Community Assoc. of the Woodlands Pearland, City of *

Corinth, City of Plano, City of

Dallas, City of Port Neches, City of

Dallas Housing Authority Prosper, Town of *

Eagle Pass, City of * Rockwall, City of

El Paso County San Angelo, City of *

El Paso, City of * San Jacinto College District

Fairview, Town of San Marcos, City of

Fort Worth, City of Schertz, City of

Frisco, City of * Seabrook, City of

Georgetown, City of South Padre Island, Town of

Grayson, County of State Bar of Texas

Grapevine, City of * Tomball, City of *

Grand Prairie, City of Waco, City of *

Haltom City, City of

Highland Park, Town of *

* “repeat” clients – multiple projects performed

SHORT LIST - REPRESENTATIVE PROJECT REFERENCES

Following is a listing of agencies which are representative of more than 1,100 employers for whom members of our firm have services similar to those requested by the City. FRISCO, CITY OF, TX Ms. Lauren Safranek, HR Director 6101 Frisco Square Boulevard Frisco, TX 75034 (972) 292-5210 [email protected] FY 2017 Salary and Benefits Survey and Pay Plan 2014 Surveys; Annual Salary Survey Update Support; Position Classification and FY 2002 Salary Plan

KILLEEN, CITY OF, TX Ms. Eva Bark, Executive HR Director 101 N. College Street Killeen, TX 76541 (254) 501-7834 [email protected] FY 2018 Pay Plan Re-Design Support FY 2017 Survey Sampling and Planning FY 2015 Survey and Compensation Plan

GRAPEVINE, CITY OF, TX Mr. Bruno Rumbelow, City Manager 200 S. Main Street Grapevine, TX 76051 (817) 410-3104 [email protected] FY 2017 Pay Plan Support FY 2015 Compensation Study FY 2012 Compensation Study

CARROLLTON, CITY OF, TX Ms. Samantha Dean, WF Services Director 1945 E. Jackson Rd. Carrollton, TX 75006 (972) 466-3091 [email protected]

Annual Survey Sampling and Pay Plan Support FY 2018 Salary Survey and Compensation Plan FY 2016 Salary Survey and Compensation Plan

GALVESTON, CITY OF, TX Mr. Kent Etienne, HR Director P.O. Box 779 Galveston, TX 77553 (409) 797-3655 [email protected] FY 2018 Survey and Plan Updates Position Classification and FY 2016 Salary Plan

STATE BAR OF TEXAS Ms. Amy Turner, Director of HR 1414 Colorado Street Austin, TX 78701 (512) 427-1463 [email protected] FY 2018 Compensation Study and Plan Update Position Classification and FY 2013 Salary Plan

WACO, CITY OF, TX Missie Pustejovsky, HR Director 300 Austin Avenue Waco, TX 76702 (254) 750-5791 [email protected] Survey and FY 2018 Pay Plan Update Position Classification and FY 2016 Salary Plan

TOMBALL, CITY OF, TX Ms. Lisa Coe, HR Director 401 Market Street Tomball, TX 77375 (281) 351-5484 [email protected] FY 2019 Salary Survey and Compensation Plan FY 2004, 2009, 2014 Studies +










MATTHEW E. WEATHERLY, PRESIDENT

Mr. Weatherly has over 15 years of experience as a human resources management professional and consultant, specializing in position classification, compensation, recruitment and selection. He has served as a Human Resources Manager with Employee Solutions, Inc. and Staffing Consultant with Initial Staffing Services.

He has completed projects in staff development, recruitment, selection, job descriptions, salary survey, and salary plan development. Among his current and recently completed consulting projects are those for:

Benbrook, City of, TX Georgetown, City of, TX Lakeway, City of, TX

Carrollton, City of, TX Grapevine, City of, TX Odessa, City of, TX

Colleyville, City of, TX Haltom City, City of, TX Rockwall, City of, TX

Frisco, City of, TX Horseshoe Bay, City of, TX San Angelo, City of, TX

Mr. Weatherly holds a BS degree in Human Resources Management from Arizona State University. He has been a featured speaker at TMHRA and regional City Manager and HR Regional meetings in Texas.

ELIZABETH J. LOCURTO, CCP, VICE PRESIDENT

Ms. LoCurto has over 30 years of experience as a compensation manager and consultant for public and private employers, specializing in job analysis, salary surveys, and salary plan development. She has served as Compensation Research Associate for Hayes/Hill, Inc., Senior Compensation Analyst for AON Corporation, Compensation Manager for Loyola University, and Project Manager for the American Compensation Association.

She has conducted projects in job audits, job descriptions, salary surveys, compensation database management, compensation plan development, compensation training course development, and compensation trend research. Among her consulting projects are:

Apache County, AZ El Segundo, City of, CA OKC Zoological Park Austin Community College, TX Huntington Beach, City of, CA Sacramento, City of, CA CA Family Health Council Los Alamos County, NM State Bar of Texas El Paso, City of, TX Norman, City of, OK Texas Office of Attorney General

Ms. LoCurto holds a BS degree in Business Administration from Arizona State University. She holds the Certified Compensation Professional (CCP) designation from the American Compensation Association.

KATHERINE TILZER, SPHR

Ms. Tilzer has more than 15 years of experience as a human resources manager and consultant, specializing in employee relations, compensation, and recruitment. She has served as Personnel Manager for Laboratory Corporation of America, Director of Human Resources for Plaza Healthcare, Inc., and Director of Human Resources for American Baptist Homes.

Aleutian Housing Authority, AK El Paso, City of, TX Pueblo West Metro Dist, CO

Boone County, MO Huntington Beach, CA Rowlett, City of, TX

Cochise College, AZ Lake Tahoe College, CA San Marcos, City of, TX

Colleyville, City of, TX Plano, City of, TX Tomball, City of, TX

She holds a BS degree in Management from the University of Phoenix, and certification as Senior Professional in Human Resources from the Society for Human Resources Management.

CETX PUBLIC SECTOR PERSONNEL CONSULTANTS 6/20

BOB LONGMIRE, PMP

Mr. Longmire has more than 10 years of project management experience and consulting for public employers, specializing in employee development, classification, and compensation. He has served as National Sales Director for Connexion Technologies and Brand Marketing Manager for Plink. He has completed projects in job analysis, position classification, compensation surveys and plan development. Among his recent consulting projects are those for:

City of Frisco, TX City of Plano, TX Northern AZ Council of Gov'ts City of Kingsville, TX City of Salinas, CA Pitkin County, CO City of Monterey, CA Greater Orlando Airport, FL Sacramento City School District, CA City of Plainview, TX King County Library Systems, WA Tacoma Metro Parks, WA

Mr. Longmire holds a BS degree in Administration from Colorado Christian University and designation as Project Management Professional from the Project Management Institute.

WAYNE BREDE

Mr. Brede has over 30 years of experience working for the Minnesota Department of Transportation as a Workforce Planning Manager and Staffing Services Manager, and has served as a succession planning and career ladder consultant for nearly 50 public and private employers.

He has conducted projects in workforce development, succession planning, job analysis, position classification, job evaluation, compensation surveys, compensation plan development, employee relations, and recruitment. Among his recent client projects are those for:

El Paso County, TX Hamilton County, TN Red Lake Indian Reserv., MN Fresno, City of, CA Las Cruces, City of, NM Rialto, City of, CA Grand Forks, City of, ND Minot, City of, ND San Angelo, City of, TX Great Falls, City of, MT Northwest Tech College, MN San Jose, City of, CA

Mr. Brede holds a BA degree in Mass Communications from the University of Minnesota and holds certificates in Public Sector Personnel Management and Industrial Relations.

SAMUEL HEINZ, MPA, PHR

Mr. Heinz has conducted projects in job analysis, position classification, job evaluation, compensation surveys, and compensation plan development. Among his recent client projects are those for:

Addison, Town of, TX DeSoto, City of, TX Prosper, Town of, TX Apache Junction, City of, AZ Galveston, City of, TX Teton County, WY Bismarck, City of, ND Midland, City of, TX The Colony, City of, TX Carrollton, City of, TX Odessa, City of, TX Williston, City of, ND

Mr. Heinz holds a MA degree in Public Administration from Texas Tech.

PUBLIC SECTOR PERSONNEL CONSULTANTS proposes to utilize only full time members of our firm to complete all of the project tasks and objectives. In order to maintain complete control of the project tasks and deadlines, we will not utilize subcontractors for the completion of any projects.


SUMMARY OF SERVICES FOR THE CITY OF ENNIS

PUBLIC SECTOR PERSONNEL CONSULTANTS (PSPC) proposes the following program of consulting services and implementation support to conduct a compensation survey.

Project Planning and Communication

1. Telephone planning meeting with the City’s Human Resources Staff and project designee(s)

2. As-needed policy input and project direction meeting with Council, HR and designee(s)

Classification Project Tasks

3. Occupational familiarization by review of City’s current job descriptions and compensation plans

4. Organizational familiarization by review of City organization charts, budgets, and annual reports

5. Position Analysis Questionnaire (PAQ) customized for gathering City employee occupation data

6. Meetings to distribute and explain the PAQ and the project for all City officials and employees *

7. Worksite job desk audits / field observations with representatives of each class (option) *

8. Determination of job classification and FLSA Exempt / Non-Exempt designation for each position

9. Recommended title modifications and reclassifications for consideration by department heads

10. Review of position classification recommendations with City’s project staff and respective departments

11. Preparation of updated job descriptions for each City job classification (up to 100 included)

Compensation Survey and Analysis

12. Identification of survey comparator agencies for us in external data collection and job comparison

13. Identification of survey benchmark job classifications to develop custom survey database (target ~75+)

14. Solicitation and collection of public sector pay plan data, organization charts, budget documents for survey

15. Application of published private sector data and weighting of public and private market data as desired

16. Consolidation of data from all sources and calculation of prevailing rates for benchmark jobs

17. Computation of extent City’s compensation offerings vary from external prevailing rates and practices

18. Review of competitiveness analysis with Human Resources, City Officials and City’s project designees

Application of Data: Compensation Plan Updating

19. Assignment of job classes to updated salary ranges by internal equity and external competitiveness

20. Linkage of survey data to non-benchmark jobs for “whole plan” updating of pay range placements

21. Assessment of payroll including compression, range penetration, and modeling of alternatives

22. Fiscal impact estimates at various levels of external prevailing rates competitiveness policies

23. Review and critique of draft salary and implementation plans with Human Resources, project leaders

Communication of Results and Implementation Strategies

24. Preparation and presentation* of a final project report for the City Council, staff, and City Officials

25. Development of a plan for the implementation of City’s updated compensation plan

26. Uploading of EZ COMPTM program files on a City computer, staff training

27. Development and provision of process for ongoing plan maintenance and subsequent plan updates

28. Assistance with communicating the City’s updated plans for all City officials and employees

29. One year compensation plan maintenance assistance at no cost to the City

CETX PUBLIC SECTOR PERSONNEL CONSULTANTS 6/20 * available as virtual or in-person tasks pending COVID-19 restrictions


PROJECT APPROACH AND METHODOLOGY

Following is our overall work plan and approach to achieving the City’s objectives for the conduct of a compensation study. A. OBJECTIVES OF THE PROJECT

The recommended plans, programs, systems and administrative procedures will meet these ten most important criteria.

- Internally equitable - Financially responsible

- Externally competitive - Efficiently administered - Readily understood - Inclusive of employee input - Easily updated & maintained - Reflective of City's values - Legally compliant & defensible - Reflective of prevailing “best practices”

B. SCOPE OF THE PROJECT

The project could include: partnership with the Director of Human Resources, City Manager, Council, and project designee(s); occupational, organizational, and operational familiarization; position analysis questionnaire and position classification / job titling recommendations; updated job descriptions; EZ COMP™; base pay compensation survey and competitiveness analysis; updated salary range recommendations and models; fiscal impact estimates and multiple implementation scenarios; updated compensation plan and one year of compensation plan implementation support for all included job classifications.

C. PROJECT METHODOLOGY

1. Quality Assurance

To ensure a high quality project, we have built in several layers of procedural and statistical controls, in addition to those already in EZ COMP™. Internally, we follow a prescribed series of steps in each project phase, which are reviewed by our Project Director. We request that the Human Resources and City’s Project Manager(s) review our work to minimize the chance of errors and to ensure that it reflects the City's organizational values.

2. Project Planning Meetings and Communication Plan Development

We will consult with the Human Resources staff and City Officials or representatives on a communication strategy, plan, and materials, beginning prior to the project and extending to the post-project information meetings. We plan to conduct group pre-project meetings for all City officials and employees where we will discuss the project’s scope, answer questions, and distribute and explain the Position Analysis Questionnaire.


D. POSITION CLASSIFICATION ANALYSIS 1. Review of Essential Tasks – Position Analysis Questionnaire

We will review and analyze the current essential tasks, duties and responsibilities, and minimum qualifications of each included position through the Position Analysis Questionnaire (PAQ) to be completed by each employee (or group of employees with identical jobs) in print or electronic format. If the information on the PAQ does not clearly delineate the position’s scope of responsibilities, we may return the PAQ to the position’s incumbent for additional information, or focus on the data gap during an optional worksite job information interview.

2. Employee Worksite Job Information Interviews (optional)

We can conduct a worksite job information interview with a representative incumbent of every job classification. The purpose of these interviews is to verify the data on the PAQ, obtain additional insight into the scope and complexity of the job duties, observe technical processes and working conditions, and to provide employees with an additional method of participation in the project. This process also ensures that we make all internal and external comparisons on the basis of actual job content and not merely job title.

3. FLSA Status Determination

We will review the essential tasks and minimum qualifications of each of the City's job classifications and subject them to the Fair Labor Standards Act tests to determine their exempt or non-exempt status.

4. Position Classification

Each of the City’s positions will be analyzed and evaluated to determine their primary characteristics, including:

- Is there a current City occupational job group comprised of job classes with essential functions similar

to the subject position; if so: - To which of the group’s job classes, and at what level, are the subject position’s essential functions

similar to the subject position, and if so: - Are they sufficiently comparable (+/- 20% guideline) to be allocated to that job class, utilize the same

job title, require the same minimum qualifications, and be assigned to the same salary range. - If the City does not currently have a sufficiently comparable job class, what should be the subject

position’s occupational job class and title, and: - What should the recommended occupational classification action be, No Change (N), Title Change (T),

Merge With Other Job Class (M), New Job Class (J). - We may find that a job class is overly broad and encompasses several job activities which are

regarded with significant salary difference in the marketplace. In such an instance, we will recommend "splitting" the job class into the current job class and a new job class which encompasses the different job activities.


5. Updated Job Descriptions (100 included)

We can prepare an updated ADA/EEO-compliant job description in the City’s standard or other selected format for each occupational job class. Focus will be on the Essential Functions and Minimum Qualifications. The specifications or descriptions may include (not limited to) the following components:

Job Title – Definition Education, Training and Experience Physical Requirements Distinguishing Characteristics Licenses and Certifications Non-Essential Functions Essential Functions FLSA Exempt/Non-Exempt Status Mental Requirements Desired Knowledge and Skills Supervision Exercise/Received Working Conditions

6. Draft Classification Plan Review with Human Resources and Department Heads

We will conduct a review of our initial position classification recommendations and draft job descriptions with the City’s Project Team and respective department heads to identify possible errors, obtain feedback, and solicit suggestions for clarification.

E. SURVEY AND COMPENSATION PLAN

1. City Involvement in Compensation Plan Development

We will obtain policy direction from the City Council, Human Resources staff, and/or City Officials on the following key components of the salary plan development process:

- Comparator Employer Selection - Job Evaluation Method-Salary Plan Linkage - Benchmark Job Class Selection - Draft Compensation Plan Review / Critique - Compensation Competitiveness Policy - Compensation Points for Analysis - Salary Structure Selection - Project Implementation Plan

2. Comprehensive Compensation Survey

We will collect the complete pay plans from each of the City’s comparators and build a custom survey database to ensure accuracy and completeness, unique to the City’s job classifications.

a. Data Collection Protocol will be developed in consultation with the City’s project leaders to determine

which salary data elements to include, such as:

Salary and (Optional) Benefits Information - Salary range structure Minimum, Midpoint, and Maximum - City-supported or provided benefits s/a insurance premiums and pension contribution - Add pay, certification pay, paid time off, other items identified and confirmed with the City

b. Benchmark Job Selection will be made by identifying City job classes common to its employment-

competitive public and private employers in the immediate area and throughout the region or State, clearly identifiable, and representative of standard occupational job groups.

c. Comparator Employers Identification will be made in consultation with the City’s Project Manager(s)

or City Council. Criteria include their degree of competition to the City in obtaining and retaining high quality staff, their location in the City's traditional recruitment areas, and their organizational size and complexity.


2. Comprehensive Compensation Survey (continued)

d. Compensation Data Collection will be made by one or more of the following methods.

- Pre-survey contact with the selected comparator employers to solicit participation in the City’s compensation survey(s)

- Extraction from the pay plans of designated public employers. - Customized salary survey requests for local governments and other public employers, distributed by

mail, fax, and e-mail.

- As desired, additional data extraction from established salary surveys and commercial survey sources such as Watson Wyatt, ERI, AWWA, etc.

e. Data Quality Control includes editing data for accuracy and proper matching to the City’s survey benchmark jobs, and phone/fax/E-mail follow-ups for data clarification and to obtain comparators’ benchmark job descriptions.

3. Prevailing Rates Calculation

We will consolidate the compensation data from all sources, enter the information into the EZ COMP™ program, and compute the prevailing rates, inclusive of cost of living differentials, as the statistical mean of the survey data for each benchmark job class. Data will be projected forward from the date of collection to a common date relating to the City’s salary plan year by the annual Prevailing Rate Increase Factor (PRI) applicable at that time.

4. Compensation Competitiveness Comparison

We will provide the City with charts comparing its current salary structures to those of the selected public and private comparator employers. We will calculate the extent that the City’s offerings vary from the prevailing rates and practices of other relevant employers.

5. Compensation Competitiveness Policy

We will assist the City to select a compensation competitiveness policy which best fits its compensation strategy and financial resources, by providing fiscal impact estimates at various percentage relationships to the prevailing rates.

6. Salary Plan Structure Updating

We will 1) prepare updates to the City’s current wage plan structures or 2) prepare alternative salary range structures and schedules for the City to select the best fit for its competitiveness strategy, with these optional criteria:

- Method of administration, i.e.: measured job performance, longevity, or skill - Width of the salary ranges, grades, or broad bands, from Minimum to Maximum - If steps within the salary ranges, number of steps, percentage separation - Number of salary ranges, grades, or broad bands in the salary schedule


7. Salary Range Assignment Development We will assign each job classification to a salary range in the City’s current or selected new salary structure on the basis of a combination of factors, including: - the prevailing rates for the benchmark job classes - its current relationship to similar or occupationally related job classes - the 15% guideline for salary range separation between sequential job classes - the 25% guideline for salary separation of a department head job class

8. Implementation Plan Development

We will consult with the Human Resources staff and Project Team on a plan for transition to the recommended plan, including a timetable for the principal activities, employee communication, multi-year strategies as needed, and estimates of required financial resources.

F. FINAL REPORTS AND PRESENTATIONS

1. Draft and Final Report Preparation

We will provide the City’s project leader(s) with a draft of our report for review and critique, including market data, salary comparison tables, fiscal estimates, salary range listings, and implementation procedures. We will incorporate their critique into the development of a final report summarizing the project’s findings, recommendations, and detailed description of the City’s updated compensation plans.

2. Final Report Presentations

We can conduct a workshop or formal presentation of our final report and recommendations to the Human Resources staff, City Officials, and employees.


COST PROPOSAL

A. PROJECT COST ESTIMATE

We estimate that the project's total cost, including all fees for professional services and reimbursement for out-of-pocket expenses, will not exceed the indicated amounts:

- Project Kick Off Meetings, PAQ, and Position Classification Analysis / Job Titling Review $ 5,000 - Updated Job Descriptions (100 included) $ 8,000 - Base Pay Compensation Survey (target est. 75 benchmarks, up to 15 comparators) $ 15,000 - Pay Plan Development, Salary Range Placements, Costing Estimates $ 5,000 - Final Reports and Presentations of Findings and Recommendations $ 3,000

Total: $ 36,000 Optional – Add Benefits to Survey $2,500 B. FLEXIBLE WORK PLAN, NEGOTIABLE TOTAL COST, TERMS

Our work plan is flexible and total project cost negotiable, and we will discuss, modify, add or delete, any work task to increase the project's responsiveness to the City’s needs and financial resources. We will provide the City with monthly invoices for the professional services provided and out-of-pocket expenses incurred during the month. We request that the City pay the invoices within thirty (30) days of their receipt.

C. PROJECT TIME ESTIMATE

We estimate a full classification and compensation study including job descriptions could be completed in 180 days from authorization to proceed.


ENNIS CITY COMMISSION MEETING AGENDA TUESDAY, JUNE 16 ... · city of ennis welcome center . bluebonnet room . 201 nw main . ennis, tx 75119 ... mayor pro tem holland commissioner

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