Grant Compliance Training for Sub-Recipients of ARRA Funds

1. Grant Compliance Trainingfor Sub-Recipients of ARRA Funds October 5, 2010

2. American Recovery & Reinvestment Act (ARRA) • ARRA has goals to stimulate the economy, create jobs • State Energy Plan (SEP) program - $42.1 million • Energy Efficiency & Conservation Block Grant (EECBG)$9.5 million

3. ARRA • Important: • Federal funds come with federal requirements • You must be transparent in all activities • You must document EVERYTHING

4. ARRA • Requirements continue to evolve. You are responsible for current and future requirements • Read your contract • Read your e-mails • Keep your project manager informed on problems and progress. All change orders must be approved by your project manager. • Your project manager’s name was provided in the e-mail • that included your contract.

5. ARRA • To date: • 228 SEP award recipients for $36.4 million • 64 EECBG award recipients for $8.7 million • Projects range from $699 to $2 million

6. What will we cover? • General requirements • Bidding/contracting • Labor standards • Getting started • Reimbursement process • Reporting • Project Closeout requirements • Post-project follow-up

7. General requirements • Active DUNS/Central Contractor Registration (CCR) • Oregon WorkSource • Reimbursement basis only for Exhibit A-eligible expenses • Whistle blower • Signage – more information in Tool Kit

8. General requirements • Photos – before and after • Tool Kit – sent to you, recently updated • Publicity – e-mail draft to Ann Grim atann.grim@state.or.us before you send out a press release so we can help you ensure information and wording is accurate. Huntington Elementary School Huntington

9. Prior to committing or expending grant funds, take care of: • NEPA – National Environmental Policy Act • SHPO – State Historic Preservation Office • Final commitment of other funds needed: • Business Energy Tax Credit? • Utility assistance? • Energy Trust funding? Getting started

10. NEPA • Oregon Dept. of Energy has a NEPA categorical exclusion for most public school, public facility and industrial projects • If your specific project does not fall under the NEPA categorical exclusion, your project manager will call you • If NEPA clearance form is required, it must be approved by US DOE before you start your project

11. SHPO • If building is on the National Register of Historical PlacesOR is 50 years or older: • SHPO has issued a Programmatic Agreement (PA) to exempt SHPO-eligible buildings for a number of energy project activities • If your activities do not fall under the PA, you must get SHPO clearance approval • Oregon SHPO Clearance Form is available at http://www.oregon.gov/ENERGY/Recovery/docs/SHPOClearanceForm.pdf

12. SHPO • SHPO clearance form will require: • Photos of building • History of all past changes to structure • Description of proposed work including materials to be used • How materials will be installed • What historic materials will be retained, restored, replaced, or covered

13. BETC • Business Energy Tax Credit (BETC): • Apply before you sign with a contractor. • Discuss with your project manager ASAP • Remember your ARRA award funds must be deducted from your eligible project costs because it is a federal grant (BETC rules) • Your tax credit is a percentage of your eligible costs

14. Other incentives • Bottom line – A project owner can not receive • more than 100% of the project costs fromcombination of ARRA award and other incentives

15. Eligible expenses appear in contract scope-of-work • Contract does not allow administrative costs • Project management costs are allowed if part of your scope-of-work and budget General requirements City of Klamath FallsGeothermal

16. Getting started • Your project manager will set you up on database • You will complete past 12-months of energy usage. (See Section 5 of Tool Kit.) • Project owner must mail in copies of all required federal, state, and/or local permits Jackson County FairgroundsCentral Point

17. Acknowledge US DOE and Oregon Dept. of Energy involvement on all contracts and any plans. Wording is in Tool Kit. Bidding/contracting Hatfield Marine Science CenterOregon State UniversityNewport

18. Requires that all the iron, steel, and manufactured goods used in a public building or public work projects are produced in the United States. • There is no requirement with regard to the origin of components or subcomponents in manufactured goods used in a project, as long as the manufacturing occurs in the United States. Buy American requirement

19. Buy American certification required during project closeout (Form 6-1a). • Review with your contractor early so all requirements are met. Buy American requirement

20. Buy American requirement • US DOE has issued multiple waivers. • Current list is in the Tool Kit • International trade agreements are not applicable.

21. Buy American requirement If equipment does not meet Buy American Act • Project owner and contractor will complete Buy American waiver form with information on prices and availability (or non-availability) of specific item. Waiver form available on US DOE website. • www.eere.energy.gov/recovery/buy_american_provision.html • Waiver form must be approved by US DOE before you make a purchase or start your project.

22. Labor standards • Any project of $2,000 or more employing laborers and/or mechanics is subject to Davis-Bacon Act • Public projects over $50,000 are subject to BOLI • Must pay higher of Davis-Bacon or BOLI • Do not use the combined rate book from BOLI • Project owner must ensure all appropriate documents are attached to bid documents and contracts and are posted at job sites

23. All contractors and sub-contractors must receive copy of Exhibit 4-E. Attach to contracts. Document! • All contractors and sub-contractors must be apprised of appropriate sections in Exhibit B (federal requirements) and Exhibit D (ARRA requirements). Attach to contracts. Document! • All contractors and sub-contractors must complete and sign Form 4-1 (A-C) before construction begins. Forward a copy to your project manager. Labor standards

24. Labor standards • Project owner must: • Designate an individual responsible for labor compliance • Apply Davis-Bacon requirements properly • For help – call your project manager

25. If using a formal competitive bid process, the appropriate Davis-Bacon wage determination and BOLI reference must be part of bid documents and final contract documents. • You must “lock in” Davis-Bacon final wage determination 10 days before end of bid period and document in your files. • If not using a formal competitive bid process, you need to document how you informed your contractor of the requirements and ensure wage determination is a component of your contract with them. Labor standards

26. All contractors and sub-contractors must complete and sign Form 4-1 (A-C) before construction begins. • Forward a copy to your project manager. Labor standards

27. All project owners must complete and sign Form 4-5 before construction begins. • Forward a copy to your project manager. Labor standards

28. Verify contractors are not on State Ineligible Contractor List: • http://www.oregon.gov/BOLI/WHD/PWR/Jan10/PWR_Jan10Index2.shtml • Verify that contractors are not on the “Federal Excluded Party List” • http://epls.arnet.gov • Document verifications on contractors on Form 4-5 Labor standards

29. Labor standards • Verify Oregon Construction Contractors Board (CCB) registration for the prime contractor and ensure prime contractor is checking all the sub-contractors. See Web site: • https://ccbed.ccb.state.or.us/ccb_frames/consumer_info/ccb_index.htm • Verify contractor can work on public projects. See Web site: http://www.oregon.gov/CCB/public_works.shtml#Not_Qualified_to_Hold_Public_Contracts

30. Project owner is responsible for: • Informing, advising and supporting contractor compliance • Monitoring for violations, perform confidential interviews and document to files (Form 4-10) • Investigating probable violations and complaints of underpayment • We recommend pre-construction meeting to ensure all vendors understand requirements Labor standards

31. Contractor must pay laborers/mechanics weekly and forward copy of certified payroll to project owner within 7 to 10 days. • Project owner must review and begin working with contractor to make corrections if necessary. • Project owner must send certified payroll to project manager on aweeklybasis within 2 days of receipt. • Tool Kit includes certified payroll form. Labor standards

32. Laborer/mechanic pay is subject to both federal and state over-time requirement • Tool Kit has more information Labor standards

33. This area of project management is very important because failure to comply and/or inattention to details can result in failure to comply with federal requirements. • Failure to comply can and does result in recipients having to pay for mistakes with their OWN funds. Labor standards

34. Oregon Dept. of Energy will randomly select sub-recipients to provide copies of contracting documents • Call your project manager if you have questions • Don’t jeopardize your project! Oregon Dept. of Energy due diligence

35. Reimbursement process • You request reimbursement in Web-based database. • Your project manager will assist you. South Albany High School Albany

36. Reimbursement process • Project owners need to ensure that information is accurate. • Third party project managers or consultants may enter information into database, but they may not “submit” it. • Reimbursement requests must be made monthly, but no more than 2 reimbursement requests per month.

37. Invoices from vendors should include: • Date • Invoice number • Company name and address • Phone number or e-mail • Date of service • Units billed for (hours) • Description of item including make, model number • Rate per item • Subtotal of charges • Grand total of charges • Indication that invoice has been paid-in-full (proof of payment) Reimbursement process

38. Project owners should scan and e-mail copies of all checks to vendors in addition to the vendor invoice when requesting reimbursement Reimbursement process

39. Monthly reporting in database is required • Reporting must be completed during the last 5 business days of each month, even if no activity • Maximum of 650 characters Reporting

40. Look at the Web-based database Reporting

41. Enter final reimbursement request into database • Request final closeout by e-mail to project manager • Project manager will sent you a final report form and requirements including request for • - Before and after pictures • - Original certified payroll • - Proof of all other expenditures • Enter final total costs and jobs created in database and complete and send in all final reporting requirements Final draw requirements

42. 25% of award funding is held until: - Project is complete and operating; • - Project manager has received all final report requirements; and - Project manager has issued final approval • Oregon Dept. of Energy will randomly monitor (inspect) projects Post-project follow up

43. You must report energy usage on database for 24 months after project completion • Records retention is for three years after project completion or conclusion of any audit, controversy and/or litigation Post-project follow up

44. Resources Team Members: Paul Egbert – Acting Program Manager Jonathon Belmont – Project manager Ann Grim – Communications Ashley Horvat – Policy analyst Rebecca Sherman – Project manager Shanda Shribbs – Project manager Patricia Sougstad – Administrative assistant Rebecca Sweetland – Project manager Tom Vohs – Technical lead Lee Willeman – Project manager

45. Resources Oregon Department of Energy625 Marion St. N.E.Salem, OR 97301-3737Phone: 1-800-221-8035