1 a ANCOMPORATED 1B8P "Tri-County Hospitality" MAYOR AND BOARD OF COMMISSIONERS MAYOR ROBERT WILLIAMS LINDA VIRGIL RANDALL COLLIE DON PATEL DAVID PRIDE BEVERLY DAVIS ADMINISTRATION STEVIE COX, TOWN ADMINISTRATOR TRACY SULLIVAN, TOWN CLERK MARGE WIECEK, FINANCE OFFICER BRIAN SULLIVAN, PUBLIC WORKS DIRECTOR BRIAN PRIDGEN, TOWN ATTORNEY June 15, 2021 5:00 PM Town of Sharpsburg, North Carolina > Board of Commissioners AGENDA I. CALL TO ORDER II. ROLL CALL III. INVOCATION IV. PLEDGE OF ALLEGIANCE Mayor Williams will lead the Commissioners and those in attendance in reciting the Pledge of Allegiance to the Flag. "1 pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all." V. PUBLIC HEARING - 2021/2022 BUDGET VI. NEW BUSINESS a. Consideration by the Board to adopt the 2021/2022 Budget. b. Consideration by the Board to adopt R-2021-04 Resolution by Governing Body of the Town of Sharpsburg accepting the Letter of Conditions, Loan Resolution and Security Agreement from the USDA. VII. ADIJOURNMENT SPECIAL NOTICE: Anyone who needs an interpreter or special accommodations to participate in the meeting should notify the Town Clerk, Tracy Sullivan at 252-446-9441 ext.221 at least forty-eight (48) hours prior to the meeting. (Americans with Disabilities Act (ADA) 1991.) "The Town of Sharpsburg is an equal opportunity provider and employer. " To file a complaint of discrimination, write to: USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, S.W. Stop 9410, Washington, DC 20250-9410 or call (800)795-3272 (voice) or (202)720- 6382. 2 Fiscal Year 2021 - 2022 Budget Statement June 8, 2021 Dear Mayor Williams and Town Council, Reference: Town Administrator's Budget Message Per the State of North Carolina General Statutes and the Town of Sharpsburg Code ofOrdinances, the Town Administrator is required to present to the Town Council a proposed budget for the upcoming Fiscal Year that is balanced. This task is one that I do not take lightly and itis by far the most important task that I will do each year. Therefore, it is my pleasure to provide an overview ofthe proposed Fiscal Year 2021 - 2022 budget. In the Fiscal Year 2021 - 2022 Budget, I have worked with the Management Team to come up with a fiscally sound and conservative budget. This proposed budget is balanced with projected revenues and does require an allocation from both the General and Enterprise Fund Balance. The total proposed budget for the Fiscal Year is $6,537,082. The table listed below breaks down how those funds are allocated. Fiscal Year 2020 -2021 Funds Allocation Amount General Fund $1,776,860 Electric Fund $2,665,312 Water and Sewer Fund $2,017,910 Powell Bill $77,000 Total $6,537,082 The Proposed Budget does include Fund Balance Appropriations of $974,246 to balance the budget for Fiscal Year 2021 - 2022. I do not expect that the total Fund Balance Allocation will be needed for the entire year; however, I do expect that we will be able to take certain steps to reduce the size of this allocation. Furthermore, it does include a $0.10 property tax increase. The new property tax rate will be $0.65 per $100. Fiscal Year 2021 - 2022 Expenditures a General Fund $2,017,910.00 $1,794,860.00 a Powell Bill Electric $77,000.00 - Water & Sewer $2,665,312.00 1 Growth Factors in Fiscal Year 2021 - 2022: Over the next Fiscal Year, the owners ofWeaver Mobile Home Park have stated that they intend to fully develop the site. They will install 220 additional mobile homes. Currently, eighty (80) units are occupied. This will increase the total number of units to 300 mobile homes. When the property is completely built out and fully occupied, the Weaver Mobile Home Park will bring an additional 600 - 900 residents to the population of Sharpsburg. The Town's current population is about 1,945 residents and this development will increase the Town'spopulation by almost 47 percent. The growth of the Weaver Mobile Home Park will affect the Town of Sharpsburg in three particular ways. First, the population increase will increase the number of utility customers. This will result in an increase in revenue and expenditures for the Electric, Water and Sewer Enterprise Funds. Secondly, we expect that there will be a slight increase for revenue in the General Fund due to the increased tax base. Finally, the Town Council will need to consider increasing the police presence in this area. Proposed Budget for Fiscal Year 2021 = 2022 Overview The Fiscal Year 2021 = 2022 Budget contains two new additions that were not included in last year's budget. In March 2021, the Town Council decided to move forward with the creation of the Sharpsburg Tri-County Senior Center. This program will be housed in the Old Southern Bank Building that the Town has owned since 2015. The proposed Senior Center will be managed under the Governing Body and will have a budget of $37,800. This will include the operations and programs cost. The Police Department has requested that the Town Council approve the cost of an additional Police Officer. The Weaver Mobile Home Park Growth will increase the Town's populations by 47 percent. This population growth will affect the Wilson County side ofSharpsburg and there are concerns about an increase in criminal activity. In an effort to reduce criminal activity, it is necessary to place a Police Officer in the area ofthe Weaver Mobile Home Park. The Police Chiefhas proposed that on each shift there would be two police officers working. One Police Officer would be assigned to the Wilson and Edgecombe County side and other Officer would work the Nash County side of Town. Both Police Officers would be able to assist the other officer, if needed. Furthermore, this would allow the officers to become more familiar with the people on both sides ofTown. Under the Governing Body, I am recommending a budget of $172,755. This includes the funding for the new Sharpsburg Tri-County Senior Center with a total budget of $37,800. Furthermore, I have included $5,000 in Capital Outlays for the specific renovations to the Town Hall. The Administration Budget will be reduced by 25 percent. This is due to removal of COID-19 Relief Fund (CFR) Grant. The total budget will be $142,455. The recommended Police Department Budget will be $1,004,150. This budget includes the additional officer and the leasing of two additional police vehicles. The Parks and Recreation Department Budget will remain the same as in Fiscal Year 2020 - 2021. The proposed budget is $29,500. The proposed Public Works Department Budget will be $428,000. This will be slightly less than the budget in Fiscal Year 2020 - 2021. Fiscal Year 2021 2022 Budget Statement The recommended Powell Bill Budget is $77,000. The proposed budget is about $36,000 less than the previous Fiscal Year. The proposed Electric Department Budget is $2,665,312. This includes funding for scheduled substation maintenance and the purchase of a new lawn mower which will be under Capital Outlays. The requested Water and Sewer Department Budget will be $2,017,910. This includes $19,000 Sewer I&I Grant Match requirement and additional funding for the Meter Change-Out Program. Fiscal Year 2021 - 2022 Expenditure Chart Governing Body 3% Police Water & Sewer Aministration 15% 31% 2% Parks & Recreation 0% Public Works 7% well Bill Fund 1% Electric 41% Governing Body - Administration Police Parks & Recreation BP Public Works P Powell Bill Fund Electric Water & Sewer Conclusion Since March 15, 2020, the Town of Sharpsburg, as all of America, has been affected by the shutdown of COVID-19. It is expected that the Town will face a revenue shortfall in the Utilities Enterprise Funds. The Town's Audit and the Local Government Commission correspondence has stated that the Property Taxes, Water and Sewer Rates are not covering the expenditures. This has resulted in having to allocate fund balance from the General Electric Fund and Water and Sewer Fund to balance the 3 budget. In the coming years, the Town Council will need to consider raising the Property Tax Rate and the Water and Sewer Rates. At the beginning ofthe budget process, Iinstructed the Department Heads to prepare their departments budgets based on Fiscal Year 2020 - 2021 numbers. This was done with consideration ofthe following factors: expected losses in revenue from the enterprise funds. Other factors were also considered. This would include the findings from the Town's Audits and the Local Government Commission's recommendations. The Local Government Commission has stated that they are concerned with the Water and Sewer Fund not been self-sustaining. Therefore, It is my recommendation that in Fiscal Year 2022 = 2023, the Town Council phase in raising of the Property Tax, Water and Sewer rates to address those shortfalls over a two or three year period. This has been one of the most difficult budget years for the Town of Sharpsburg. Over the next couple of years, it is my expectations to work with Town Council to shore up those deficits and be revenue and expenditure neutral. I would like to thank the department heads for their hard work in assembling this budget. More importantly, I would like to thank Mayor Williams and the other Town Council members for their input in this final budget. Therefore, it is my pleasure to present to you the final Budget for Fiscal Year 2021 - 2022. Sincerely, Stevie Cox Town Administrator TOWN OF SHARPSBURG BUDGET ORDINANCE 0-2021-01 FISCAL YEAR 2020-2021 NOW THEREFORE, BE IT ORDAINED by the Board of Commissioners of the Town of Sharpsburg, North Carolina, meeting in regular session this, the 15th day of. June 2021 that the following Fund revenues and Department expenditures and expenses, together with certain restrictions and authorizations, are adopted: SECTION 1: FY 2021 - 2022 BUDGET SUMMARY The following amounts are hereby appropriated in the General Fund for the operation of the Town Government and its activities for the Fiscal Year beginning July 1, 2021, and ending June 30, 2022: GENERAL FUND REVENUES BY SOURCE AMOUNT Ad Valorem Taxes $379,454 Other Taxes 151,800 Unrestricted Intergovernmental Revenues 320,000 Restricted Intergovernmental Revenues Permits & Fees 11,270 Service Charges Sanitation 296,500 Investment Earnings 2,000 Miscellaneous Revenues 5,000 Appropriated Fund Balance 309,253 Transfer from Electric Fund 301,583 Transfer from Water & Sewer Fund TOTAL GENERAL FUND REVENUES $1,776,860 EXPENDITURES BY DEPARTMENT Governing Board $172,755 Administration 142,455 Police Department 1,004,150 Parks & Recreation 29,500 Public Works 428,000 TOTAL GENERAL FUND EXPENDITURES $1,776,860 The following amounts are hereby appropriated in the Powell Bill Fund for the operation of Powell Bill activities for the Fiscal Year beginning July 1, 2021, and ending June 30, 2022: POWELL BILL FUND REVENUES BY SOURCE AMOUNT Restricted intergovernmental Revenues $52,000 Transfer from Powell Bill Fund Balance 25,000 TOTAL POWELL BILL FUND REVENUES $77,000 DEPARTMENT EXPENDITURES Resurfacing Program $56,000 Other Street Repairs 4,528 Moore Street Railroad Crossing 2,300 Street Sweeping Contract Capital Leases 14,172 TOTAL POWELL BILL FUND EXPENDITURES $77,000 The following amounts are hereby appropriated in the Electric Fund fori the operation oft the electric utility fori the Fiscal Year beginning July 1, 2021, and ending June 30, 2022: ELECTRIC FUND REVENUES BY SOURCE AMOUNT Investment Earnings $3,500 Miscellaneous Revenue 500 Electric Charges 2,466,562 Electric Sales Tax 164,250 Connection Fees 2,500 Penalty Fees 28,000 TOTAL ELECTRIC FUND REVENUES $2,665,312 DEPARTMENT EXPENSES Electric Operations $2,363,729 Budgeted Transfer to the General Fund 301,583 Debt Service TOTAL ELECTRIC FUND EXPENSES $2,665,312 WATER & SEWER FUND The following amounts are hereby appropriated in the Water & Sewer Fund for the operation of the water and sewer utility for the Fiscal Year beginning July 1, 2021, and ending June 30, 2022: REVENUES BY SOURCE AMOUNT Water/Sewer Charges $1,640,500 Investment Earnings 5,000 Miscellaneous Revenue 6,000 Penalty Fees 28,000 Appropriation from Fund Balance 338,410 TOTAL WATER/SEWER FUND REVENUES $2,017,910 DEPARTMENT EXPENSES Water & Sewer Operations $1,498,500 Appropriated Fund Balance 338,410 Debt Service 181,000 Contingency TOTAL WATER/SEWER FUND EXPENSES $2,017,910 TOTAL BUDGETED REVENUES $6,537,082 TOTAL BUDGETED EXPENDITURES & EXPENSES $6,537,082 SECTION 2: MUNICIPAL TAX RATE ESTABLISHED An Ad Valorem Tax Rate of $0.65 per $100.00 full valuation is hereby established as the Official Tax Rate for the Town of Sharpsburg for the Fiscal Year 2021 - 2022. SECTION 3: SPECIAL AUTHORIZATION - BUDGET OFFICER 1. The Budget Officer shall be authorized to transfer line item expenditures within a department without limitation and without a report being required. These changes should not result in increasing recurring obligations such as salaries. The Budget Officer shall make budget amendments as deemed appropriate no less than once per fiscal year. 2. The Budget Officer shall be authorized to execute inter-departmental transfers in the General Fund, not to exceed ten percent (10%) of the appropriated moneys of the department whose budgeted allocation is reduced. An official report on such transfers shall be given at the next regular meeting of the Board of Commissioners. 3. The Budget Officer may make inter-fund loans for a period of not more than sixty (60) days. The Board of Commissioners shall be informed of such inter-fund loans at their next regularly scheduled meeting. The Board of Commissioners shall also be informed when such loan is repaid. 4. Inter-fund Transfers established in the budget document may be accomplished without recourse to the Board of Commissioners. SECTION 4: RESTRICTIONS - BUDGET OFFICER 1. The inter-fund transfer of monies, except as noted in paragraph 3 above, shall be accomplished only by authorization of the Board of Commissioners. 2. No salary increase or bonus may be paid without prior authorization of the Board of Commissioners. 3. No contributions to any agencies shall be made without approval of the Board of Commissioners. SECTION 5: UTILIZATION OF THE BUDGET ORDINANCE This ordinance and the budget information herein contained shall be the basis of the Fiscal Year 2020- 2021 budget. The Budget Officer shall administer this budget and shall ensure that department heads are provided guidance in sufficient detail to implement their appropriate portion of the budget. The Finance Department shall establish records which are in agreement with this budget and this ordinance, and with the appropriate statutes of the State of North Carolina. This Budget Ordinance and accompanying schedules are hereby adopted by the Town of Sharpsburg Board of Commissioners this, the 15th day of June 2021. TOWN OF SHARPSBURG By: Robert Williams, Mayor ATTEST: Tracy Sullivan, Town Clerk - ME MORANDUM TO: Robert Williams, Mayor Town Council Members FROM: Stevie Cox, Town Administrator VIA: Brian Sullivan, Public Works Director CC: Brian Pridgen, Town Attorney DATE: June 9, 2021 REF: Street Sweeper Funding Letter of Conditions Summary: This is the funding package for the purchase of a new Street Sweeper. Background: In March 2020, the Town Council held a retreat to establish goals for Fiscal Year 2020 - 2021. During the retreat, Commissioner David Pride stated that it would be beneficial if the Town purchased a Street Sweeper and terminated the existing contract. He stated that by doing SO, the Town could use those funds to pay for the street sweeper. In June 2020, the Town Council approved the Fiscal Year 2020 = 2021 Budget and Capital Improvement Plan. Within those documents, the Town Council set as a budgetary goal to acquire a New Street Sweeper. Over the past six months, the Public Works Director has had three different vendors to demonstrate the models. Mayor Williams and Commissioner Pride agreed with Brian Sullivan that the below listed sweeper was the best fit for the Town's needs. Make Model Cost Regen X Regenerative Air 2021 Freightliner M2-106 $232,249.55 Sweeper Office of the Town Administrator Town ofSharpsburg, 110 West Railroad Street, Sharpsburg, North Carolina 27878 Phone 252) 446-9441 Fax = (252) 977-7488 MEMO - PAGE 2 Tracy Sullivan completed and submitted an application for financing to USDA in March 2021 and a required Public Hearing was held June 1, 2021. The USDA has now provided a funding package to the Town for the Street Sweeper, which includes the following: Loan - $185,000.00 Grant - $50,000.00 Town contributions - $804.00 The annual payment for the loan portion will be $20,867.00 Recommendation: The Town Administrator recommends that the Town Council adopt R-2021-04 Resolution by Governing Body oft the Town of Sharpsburg accepting the Letter of Conditions, Loan Resolution and Security Agreement from the USDA for the purchase ofthe street sweeper. Attachment: Resolution and Funding Package for the Street Sweeper Office of the Town Administrator Town of Sharpsburg, 110 West Railroad Street, Sharpsburg, North Carolina 27878 Phone 252) 446-9441 Fax - (252) 977-7488 Resolution No: R-2021-04 BE IT RESOLVED That the Town of Sharpsburg Town Council accepts the conditions set forth in a Letter of Conditions dated June 15, 2021, Loan Resolution (Public Body) and Security Agreement: That the Mayor and Town Clerk be authorized to execute all forms necessary to obtain a loan and grant from Rural Development, including, but not limited to the following forms: Form RD 1942-46 Letter of Intent to Meet Conditions Form RD 1942-47 Loan Resolution (Public Body) Form RD 442-7 Operating Budget Form RD 1940-1 Request for Obligation of Funds Form RD 400-1 Equal Opportunity Agreement Form RD 400-4 Assurance Agreement Form RD 1910-11 Applicant Certification Federal Collection Policies for Consumer or Commercial Debts Form AD-1047 Certification Regarding Debarment, Suspension and Other Responsibility Matters - Primary Covered Transactions Form AD-1048 Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions Form AD-1049 Certification Regarding Drug Free Workplace (Grant) 1940-Q, Exhibit A-1 Certification for Contracts, Grants and Loans (Lobbying Certification) Form RD: 3570-3 Community Facilities Grant Agreement Unnumbered Form Certificate of Compliance That if the interest rate charged by Rural Development should change between this date and the date of actual approval, the Mayor and Town Clerk be authorized to execute new forms reflecting the current interest rate and revised payments as required by Rural Development. That the Town Council elects to have the interest charged by Rural Development to be the lower of the rate in effect at either the time of loan approval or loan closing. This resolution is to become a part of the official minutes of the Town Council meeting held on June 15, 2021. MOTION MADE BY: SECONDED BY TO ADOPT THE RESOLUTION. MOTION PASSED to By: Robert Williams, Mayor Attest: Tracy Sullivan, Town Clerk USDA United States Department of Agriculture June 15, 2021 Town of Sharpsburg Attn: Robert Williams, Mayor P.O. Box 1759 Sharpsburg, NC 27878 Dear Mr. Williams: This letter establishes conditions which must be understood and agreed to by you before further consideration may be given to the application. This letter is not to be considered as loan approval or as a representation as to the availability of funds. The docket may be completed on the basis of a loan not to exceed $185,000.00, grant not to exceed $50,000.00 and applicant contributions in the amount of$804.00 for a total project cost of $235,804.00. Ifl Rural Development makes the loan, you maymake a written request that the interest rate be thel lower of the rate in effect at the time of loan approval or the time ofl loan closing. Ifyou do not request the lower oft the two interest rates, the interest rate charged will be the rate in effect at the time ofl loan approval. The loan will be considered approved on the date a signed copy of Form RD 1940-1, Request for Obligation of Funds,' 79 is mailed to you. Ifyou want the lower oft the two rates, your written request should ordinarily be submitted at least 30 calendar days before loan closing. This letter establishes conditions that must be understood and agreed to by you before further consideration may be given to the Application for Federal Assistance. Any changes in project cost, sources of funds, scope of services or any other significant changes (this includes significant changes in the Borrower's financial conditions, operation, organizational structure or executive leadership) in the project or applicant must be reported to and approved by Rural Development (RD) by written amendment to this letter. Any changes not approved by RD shall be cause for discontinuing processing of the application. Please complete and return the attached RD Form 1942-46, "Letter ofl Intent to Meet Conditions, ifyou desire that further consideration be given your application. Ift the conditions set forth in this letter are not met within twelve (12) from the date hereof, Rural Development reserves the right to discontinue the processing oft the application. Awards made under this program are subject to the provisions contained in the Agriculture Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2013, P.L. No. 112-55, Division A, Sections 738 and 739, regarding corporate felony convictions and corporate federal tax delinquencies. To comply with these provisions, all applicants must complete the attachment for Representation Regarding Felony Conviction or Tax Delinquent Status For Corporate Applicants paragraph (1) ofthis representation, and all corporate applicants also must complete paragraphs (2) and (3) oft this representation. Rural Development North Carolina Henderson Area Office 853 S. Beckford Drive, Suite A Henderson, NC27536 Voice (252) 438-3134 Ext. 4 . Fax (844) 325-6826 TTY711 USDA is an equal opportunity provider, employer, and lender. 2 ESTIMATED PROJECT COSTS Street Sweeper $232,250.00 UCC Filing Fee, Title, Tax, Tags $2,054.00 Attorney Fees $1,500.00 Total $235,804.00 REPAYMENT SCHEDULE The loan will be scheduled for repayment over a period of 10 years. Each installment will be due Annually following the date of the Rural Development loan closing. The first installment will be a fully amortized installment. SECURITY REQUIREMENTS Security will consist of an Installment Purchase Contract, Security Agreement, 15t lien on Vehicle and a Financing Statement for all equipment financed with Rural Development loan funds. PREAUTHORIZED DEBIT PAYMENTS (PAD) Prior to loan closing the applicant must complete U. S. Department of Treasury Form SF 5510, "Authorized Agreement for Preauthorized Payments.' 1 This form will authorize the government to electronically debit your Rural Development loan payment(s) from your specified bank account on a predetermined date (date the payment is due). Preauthorized Debit is accomplished through the Automated Clearing House process providing for a cost-effective, secure, reliable, and convenient payment method, thus eliminating the need to write a check for each payment, the expense of mailing the payment, and allows you the certainty of when your payment will be applied. This service is provided for only qualified borrowers. PROCUREMENT All procurement of equipment must be done in accordance with Rural Development Instruction 1942-A, Appendix B. LOAN RESOLUTION The applicant must formally adopt Form RD 1942-47, "Loan Resolution (Public Bodies),' " Form RD 400- 1, "Equal Opportunity Agreement, ) and Form RD 400-4, "Assurance. Agreement,' at a properly called meeting of the governing body. Adoption of these documents should be: made a part oft the official minutes ofthe meeting. A certified copy ofthe minutes is to be attached to the resolution and delivered to Rural Development. 3 GRANT AGREEMENT A copy of Form RD 3570-3, Agreement for Administrative Requirements for Community Facilities Grants,' > is included in your package for review. You will be required to execute the agreement no later than the time of grant closing. The grantee understands that any property acquired or improved with Federal grant funds may have use and disposition conditions which apply to the property as provided by 7 CFR parts 3015, 3016, or 3019 in effect at this time and as may be subsequently modified. The grantee understands that any sale or transfer of property is subject to the interest of the United States Government in the market value in proportion to its participation in the project as provided by 7 CFR parts 3015, 3016, or 3019 in effect at this time and as may be subsequently modified. OPERATING BUDGET The applicant must formally adopt Form RD 442-7, "Operating Budget" at a properly called meeting of the governing body. The budget must provide sufficient revenue to meet the requirements of operations and maintenance and debt service. Adoption ofthese documents should be made a part of the official minutes ofthe above meeting. A certified copy oft the said minutes should be attached to the resolution and be provided to Rural Development. RESERVE REQUIREMENT The Applicant must establish a Reserve Account in accordance with RD 1942-47, "Loan Resolution (Public Bodies), * and make annual deposits to that account in an amount equal to ten percent ofthe Rural Development annual payment. These deposits shall be made on a monthly basis until the reserve account has an amount equal to one annual payment. GRADUATION The Applicant will refinance the unpaid balance, in whole or in part, ofi its debt upon the request oft the Government, if at any time it should appear to the Government that the Applicant is able to refinance its note by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms. SERVICING As a part of normal RD Servicing Requirements, the Applicant will be required to provide the State Office with quarterly financial reports. The State Office will ensure that quarterly financial statements are reviewed and closely monitored for any weaknesses and that corrective action will be taken, when necessary, to protect the portfolio. REPORTING Forms SF-425, "Federal Financial Report" and a SF-PPR Project Performance Activity Report will be required on a quarterly basis (due 30 working days after end of quarter) until all grant funds have been disbursed. Project reporting will begin when the grant is closed which is the date all parties have executed Form RD 1940-1. A final Project Performance Report will be required after all grant funds have been expended or the term of the grant expires, with the last SF-425. The final report may serve as the last 4 quarterly report. Grantees shall constantly monitor performance to ensure that time schedules are being met, projected work by time periods is being accomplished, and other performance objectives are being achieved. NO USDA FUNDS WILL BE RELEASED WITHOUT ALL REPORTING REQUIREMENTS BEING UP TO DATE. Grantee Project Performance Activity Report. The Grantee Project Performance Activity Report shall include, but not be limited to, the following: 1. A comparison of actual accomplishments to the objectives established for that period. 2. Reasons why established objectives were not met, ifa any. 3. Problems, delays, or adverse conditions which will affect attainment of overall project objectives, prevent meeting time schedules or objectives, or preclude the attainment of particular project work elements during established item periods. This disclosure shall be accompanied by a statement of the action taken or planned to resolve the situation; and 4. Objectives and timetable established for the next reporting period. Final Report A final project performance report will be required with the final Financial Status Report. The final report must provide the Grantee' S assessment and evaluation ofthe success of the project. APPLICANT CONTRIBUTION/OTHER FUNDS Prior to the beginning of construction, the Applicant will provide $804.00 ofits own resources and any difference needed between the Rural Development loan, the Applicant's contribution, and any required legal expenses, interim interest, closing cost and bank fees in connection with the interim financing. Prior to loan approval, the Applicant must provide evidence that any other funds needed in addition to the Rural Development loan are available. DISBURSEMENT OF FUNDS The funds contributed by the. Applicant will be the first funds disbursed. The Rural Development direct loan funds will be disbursed after all construction improvements have been completed. After providing for all authorized costs, any remaining project funds will be considered Rural Development loan funds and refunded to Rural Development. Grant funds, if applicable must be the last funds spent. If grant funds are not needed, they must be de-obligated or returned to the agency. ACCOUNTING, AUDITS, AND REPORTS The Applicant' S accounting systems, audits and management reports will be established and maintained as required by North Carolina General Statutes, RD Instructions 1942-A, Section 1942.17 (), and 2 CFR Part 200, Subpart F. The audit will be prepared in accordance with 2 CFR Part 200, Subpart F with a copy furnished to Rural Development. INSURANCE AND BONDING Insurance and bonding should be obtained as required by NC General Statutes and Rural Development Instructions 1942-A, Subsection 1942.170)(3). Evidence of required coverage must be provided to Rural 5 Development prior to loan closing. Evidence that coverage is being maintained must be provided annually thereafter. Position Fidelity Bond: The Applicant will provide fidelity bond coverage for the positions of officials entrusted with the receipt and disbursement of its funds and the custody of valuable property. The amount oft the bond will normally approximate the total annual debt service requirements for the Rural Development loan(s). Corporate Liability and Property Damage Insurance: The Applicant will provide public liability, and property damage insurance in an amount to adequately protect the applicant from civil action arising from the function of the applicant relative to the project. Real Property Insurance: The applicant will provide fire and extended coverage in an amount equal to the replacement value of the building and improvements. The United States of America will be named first mortgagee for all real property held as security for the Rural Development loan. Workman's Compensation Insurance: The applicant will provide adequate Workman', 's Compensation Insurance if applicable. ORGANIZATION The applicant must provide certification concerning its organization, in accordance with Rural Development Instructions 1942-A, Subsection 1942.17(k). APPLICANT CERTIFICATIONS Form AD-1047, Certification Regarding Debarment, Suspension, and other Responsibility Matters - Primary Covered Transactions, must be executed by the applicant prior to loan approval. Form AD-1048, Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier covered transactions must be executed by the Contractor(s), supplier(s), and/or dealers prior to any purchase that exceeds $25,000.00. Form RD 1910-11, Applicant Certification/Federal Collection Policies for Consumer or Commercial Debts, must be executed by the appliçant prior to loan closing. Form RD 400-4, Assurance Agreement, must be executed by the applicant prior to loan approval. DRUG FREE WORKPLACE CERTIFICATION Prior to grant approval, the Authority will certify that they will provide a drug-free workplace, are not involved with drugs, and will establish an educational program concerning drug abuse for employees by executing Form AD-1049, "Certification Regarding Drug Free Workplace Requirement (Grants)." CLOSING INSTRUCTIONS The loan will be closed in accordance with instructions issued by the Rural Development State Office, applicable Rural Development State and National procedures, and instructions from the Office ofGeneral Counsel. OTHER CONDITIONS All applicable items set out in Form 1942-11, "Processing Checklist (Equipment Only)" apply to this project and become a part of the Letter of Conditions. All requirements oft the following must be met: a. Compliance with special laws and regulations. b. State Pollution Control or Environmental Protection Agency Standards. C. Consistency with other development plans. d. Civil Rights Act of 1964. e. Title IX of the Education Amendment of 1972. f. Section 504 ofthe Rehabilitation Act of 1973. g. Age Discrimination Act of 1975. h. 2 CFR Part 200 Sincerely, Auisathawlv Monica R. Thornton Area Specialist Pasition 3 Form RD 1942-46 UNITED! STATES DEPARTMENT OF AGRICULTURE FORM APPROVED (Rev. 6-10) RURAL DEVELOPMENT OMB NO. 0575-0015 OMB NO. 0570-0062 LETTER OF INTENT TO MEET CONDITIONS Date 06-15-2021 TO: United States Department of Agriculture Rural Development (Name OfUSDA Agency) P.O. Box 8 Winton, NC 27986 (USDA Agency Office Address) We have reviewed and understand the conditions set forth in your letter dated 06-15-2021 Iti is our intent to meet all of them not later than 06-15-2022 Town of Sharpsburg (Name of Association) BY Robert Williams, Mayor (Title) According 10 the Papenvork. Reduction Act of 1995, an may nor conduct or. sponsor, and a persons is not required lo respond t0 a collection of information unless ile displays a' valid OMB control number. The aIFONE control number for this information collection is 0575-0015 and 0570-0062, The time required 1o complete this information collection is estimated l0 average I hour per response, including the timej for reviewing instructions, searching existing data. sources. gathering and maintaining the data needed, and completing and reviewing the collection of information. Form RD 1942-46 (Rev. 6-10) Position 5 USDA Form RD 1942-47 LOAN RESOLUTION FORM APPROVED (Rev. 12-97) (Public Bodies) OMB NO. 0575-0015 A RESOLUTION OF THE Town Board OF THE Town of Sharpsburg AUTHORIZING AND: PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING AI PORTION OF THE COST OF ACQUIRING, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR EXTENDING ITS 2021 DCI Street Sweeper FACILITYTO: SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTION TO SERVE. WHEREAS, it is necessary for the Town of Sharpsburg (Public Body) (herein after called Association) to raise a portion ofthe cost of such undertaking by issuance ofits bonds in the principal amount of 185,000.00 pursuant to the provisions of N.C.G G.S. 160A-20 and WHEREAS, the Association intends to obtain assistance from the Rural Housing Service, Rural Business - Cooperative Service, Rural Utilities Service, or their successor Agencies with the United States Department of Agriculture, (herein called the Goverment) acting under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in the planning, financing, and supervision of such undertaking and the purchasing of bonds lawfully issued, in the event that no other acceptable purchaser for such bonds is found by the Association: NOW THEREFORE in consideration of the premises the Association hereby resolves: 1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds containing such items and in such forms as are required by State statutes and as are agreeable and acceptable to the Government. 2. To refinance the unpaid balance, in whole or in part, ofits bonds the request of the Government if at any time it shall appear to the Govemment that the Association is able to refinance eP9DE bonds by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods of time as required by section 333(c) of said Consolidated Farm and Rural Development Act (71 U.S. C. 1983 (c)). 3. To provide for, execute, and comply with Form RD 400-4, Assurance Agreement," and Form RD 400-1, "Equal Opportunity Agreement," including an "Equal Opportunity Clause," which clause is to be incorporated in, or attached as a rider to, each construction contract and subcontract involving in excess ofs 10,000. 4. To indemnify the Govemment for any payments made or losses suffered by the Government on behalf of the Association. Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal permissible source. 5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any covenant or agreement contained herein or in the instruments incident to making or insuring the loan, the Government at its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and payable, (b) for the account of the Association (payable from the source offunds pledged to pay the bonds or any other legally permissible source), incur and pay reasonable expenses for repair, maintenance, and operation ofthe facility and such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take possession of the facility, repair, maintain, and operate or rent it. Default under the provisions of this resolution or any instrument incident to the making or insuring of the loan may be construed by the Govemment to constitute default under any otheri instrument held by the Government and executed or assumed by the Association, and default under any such instrument may be construed by the Government to constitute default hereunder. 6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, or permit others to do sO without the prior written consent oft the Government. 7. Not to defease the bonds, or to borrow money, enter into any contract or agreement, or otherwise incur any liabilities for any purpose in connection with the facility (exclusive of normal maintenance) without the prior written consent oft the Government if such undertaking would involve the source of funds pledged to pay the bonds. 8. To place the proceeds ofthe bonds on deposit in an account and in a manner approved by the Govemnment. Funds may be deposited in institutions insured by the State or Federal Government or investedi in readily marketable securities backed by the full faith and credit oft the United States. Any income from these accounts will be considered as revenues of the system. 9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility in good condition. IO. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and the establishment of adequate reserves. Revenue accumulated over and above that needed to pay operating and maintenance, debt service and reserves may only be retained or used to make prepayments on the loan. Revenue cannot be used to pay any expenses which are not directly incurred for the facility financed by the Government. No free service or use of the facility will be permitted. According to the Papeniork Reduction. Act of! 1995, no persons are required to respond toad collection of information unless il displays valid OMB control number. The valid OMB control number) for this information collectioni is 0575-0015, Ther time required io completer this information collection is estimated 10 average / hour per response, including the timefor reviewing instructions, searching exising data sources. gathering and maintaining the data needed, and completing andr reviening the collection ofinformation. 11. To acquire and maintain such insurance and fidelity bond coverage as may be required by the Govemment. 12. To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to provide for required audit thereof as required by the Government, to provide the Government a copy of each such audit without its request, and to forward to the Government such additional information and reports as it may from time to time require. 13. To provide the Government at all reasonable times access to all books and records relating to the facility and access to the property oft the system sO that the Government may ascertain that the Association is complying with the provisions hereof and of the instruments incident to the making or insuring oft the loan. 14. That if the Govemment requires that a reserve account be established and maintained, disbursements from that account may be used when necessary for payments due on the bond ifs sufficient funds are not otherwise available. With the prior written approval of the Govemment, funds may be withdrawn for: (a) Paying the cost of repairing or replacing any damage to the facility caused by catastrophe. (b) Repairing or replacing short-lived assets. (c) Making extensions or improvements to the facility. Any time funds are disbursed from the reserve account, additional deposits will be required until the reserve account has reached the required funded level. 15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain the Goverment's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which are feasible and legal, such person shall have a direct right of action against the Association or public body. 16. To comply with the measures identified in the Government's environmental impact analysis for this facility for the purpose ofa avoiding or reducing the adverse environmental. impacts of the facility's construction or operation. 17. To accept a grant in an amount not to exceed $ 50,000 under the terms offered by the Govemment; that the Mayor and, Town Clerk oft the Association are hereby authorized and empowered to take all action necessary or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant; and to operate the facility under the terms offered in said grant agreement(s). The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan, unless otherwise specifically provided by the terms of such instrument, shall be binding upon the Association as long as the bonds are held or insured by the Govemment or assignee. The provisions of sections 6 through 17 hereof may be provided for in more specific detail in the bond resolution or ordinance; to the extent that the provisions contained in such bond resolution or ordinance should be found to be inconsistent with the provisions hereof, these provisions shall be construed as controlling between the. Association and the Government or assignee The vote was: Yeas Nays Absent IN WITNESS WHEREOF, the Town Board ofthe Town of Sharpsburg has duly adopted this resolution and caused it to be executed by the officers below in duplicate on this 15th day of June 2021 (SEAL) By Attest: Title Robert Williams, Mayor Tracy Sullivan, Town Clerk Title -3- CERTIFICATION TO BE EXECUTED AT LOAN CLOSING I, the undersigned, as Town Clerk oft the Town of Sharpsburg hereby certify that the Town Board ofs such Association is composed of 5 members, of whom 3 constituting a quorum, were present at a meeting thereof duly called and held on the 15th day of June 2021 ;and that the foregoing resolution was adopted at such meeting by the vote shown above. I further certify that as of the date of closing of the loan from the Government, said resolution remains in effect and has not been rescinded or amended in any way. Dated, this day of Title USDA-RD Position 3 Form Approved Form RD 442-7 OMB No. 0575-0015 (Rev. 3-02) OPERATING BUDGET Schedule 1 Name Address Sharpsburg, Town of Po Box 1759 Sharpsburg, NC 27878- Applicant Fiscal Year County State(Including. ZIP Code) From To Nash NC 27878- 20 20 20 21 20 22 First Full Year OPERATING INCOME (1) (2) (3) (4) (5) 1. Total Revenue 0 0 1,574,722 1,612,987 1,651,464 2. 3. 4. 5. Miscellaneous 0 0 a 6. Less: Allowances and Deductions p( ( X( p( 0) 7. Total Operating Income (Addl Lines 1 through 6) 0 1,574,722 1,612,987 1,651,464 OPERATING EXPENSES 8. Total Expense 01 0 1,546,751 1,584,236 1,600,078 9. 10. 11. 12. 13. 14. 15. Interest (RD) 11,61 11,429 15,406 16. Depreciation 0 91,034 100,139 110,152 17.Total Operating Expense 0 1,649,398 1,695,804 1,725,636 (Add! lines 8t through 16) 18. NET OPERATING INCOME 0 -74,676 -82,817 -74,172 (LOSS) (Line 7less 17) NONOPERATING INCOME 19. 20. 21.7 Total Nonoperating Income 0 (Add Lines 19and20) 22. NETI INCOME (LOSS) (Add Lines 18 and21(Transfer to Line A Schedule. 2) 01 -74,676 -82,817 -74,172 Budget and Projected Cash Flow Approved by Governing Body Attest: 06/15/2021 Tracy Sullivan, Town Clerk Seorkagx Date 06/15/2021 Robert Williams, Mayor Appoptatbiiaak Date According to the Paperwork Reduction. Act of1 1995, and agency may not conduct or sponser, anda apersoni IS not requiredi tor respond toad collection ofi information unless ite displays a valid OMB control number. The valid OMB controlr number for thisi informations collectioni s 0575- -0015, Thet time requiredt to complete thisi information collectioni ise estimated toc average 51 hours per response, including the time forr reviewingi instructions, searchinge existing data sources, gathering andr maintainingt thec datal needed, ando completing andi reviewing the collection ofi information. Schedule 2 PROJECTED CASH FLOW First 20 20 20 21 20 22 Full Year A. Line 22 from Schedule 1 Income (Loss) 0 -74,676 -82,817 -74,172 Add B. Items in Operations not Requiring Cash: 1. Depreciation (Line 16, Schedule 1) 91,036 100,139 110,152 2. Others: 0 01 U C. Cash Provided from: 1. Proceeds from RD loan/grant 0 235,000 2. Proceeds from others 0 01 3. Increase (Decrease) in Accounts Payable, Accruals and other Current Liabilities 0 0! 4. Decrease (Increase) in Accounts Receivable, inventories and Other Current AssetgExclude Cash) o 5.0 Other: 0 6. D.1 Total all A, B and CI Items 16,360 252,322 35,980 E. Less: Cash Expended for: 1.A All Construction, Equipment and New Capital Items (Loan and grantfunds) 0 235,804 a 2. Replacement and Additions to Existing Property, Plant and Equipment 0 0 3. Principal Payment RD. Loan 5,522 5.704 22,594 4. Principal Payment Other Loans 10,651 10,651 10.651 5. Other: U 6. Total E 1through 5 16,173 252,159 33,245 Add F. Beginning Cash Balances 816.423 817,072 816,917 G. Ending Cash Balances (Total of D minus E6, plus F) U 4 816,610 817,235 819,652 Item G Cash Balances Composed of: Construction Account 0 0 Revenue Account 0 0 Debt Payment Account O&M Account 816,423 816.268 816,917 Reserve Account 649 649 2,736 Funded Depreciation Account 0 0 Others: 0 Total - Agrees with Item G 0.od 817,072 00 816,9170 00 819,653 00 BUDGET ATTACHMENT Income Detail Income Sourca Xaarl.o Yoar2_0 Xoar3_2021 Yoar4 2022 Firat FullYear Miscellaneous 0.00 0.00 0.00 0.00 0.00 Less: Allowances and 0.00 0.00 0.00 0.00 0.00 Total Revenue 0.00 0.00 1,574,722.00 1,612,987.00 1,651,464.00 TOTALS 1,574,722 1,612,987 1,651,464 Expense Detail Expense_Source Yearl_o Year2_0 Yaar3_2021 Year4_2022. FiratFMlLYar Interest 0.00 0.00 11,611.00 11,429.00 15,406.00 0.00 0.00 91,036.00 100,139.00 110,152.00 Total Expense 0.00 0.00 1,546,751.00 1,584,236.00 1,600,078.00 TOTALS 1,649,398 1,695,B04 1,725,636 USDA Form RD 1940-1 REQUEST FOR OBLIGATION OF FUNDS FORM APPROVED (Rev. 06-10) OMB No. 0570-0062 INSTRUCTIONS-TYPE IN CAPITALIZED ELITE TYPE IN SPACES MARKED ( Complete Items 1 through 29 and applicable Items 30 through 34. See FMI. 1. CASE NUMBER LOAN NUMBER FISCAL YEAR ST CO BORROWER ID 38- 064- *1332 2021 2.E BORROWER NAME 3. NUMBER NAME FIELDS Sharpsburg, Town of (1,2.0 or 3from lient 2) 4. STATE NAME North Carolina 5. COUNTY NAME Nash GENERAL BORROWER/LOAN INFORMATION 6. RACE/ETHNIC 7. TYPE OF APPLICANT 8. COLLATERAL CODE 9. EMPLOYEE CLASSIFICATION VIDUAL 5: OF FARMERS 1-REALE ESTATE MACHINERY ONLY . PARTNERSHIP G-SEFMIELN SECURED RELATIONSHIP CODE WHITE HISPANIC CORPORATI TION 3- NONPROFIT-FAITHE BASED 2-REALE ESTATE LIVESTOCK CROPS ONLY ONLY 1-EMPLOVEE BLACK 5-API PUBLICE BODY e INDIAN TRIBE ANDCHATTEL SECUREDE BY 2-1 MEMBEROFF FAMILY 3. AIIAN 4 5 ASSOC OF 10-PUBLIC 11-OTHER COLLEGENUNVERSITY BONDS 3 4- CLOSE ASSOC RELATIVE FARMERS 4 BPOSKOR 8- RLFACCT 10. SEX CODE 3- FAMILYUNIT MALE OWNEP 11. MARITAL STATUS 12. VETERAN CODE 13. CREDIT REPORT 6 MALE ORENA FEMALEO OWNED -MARRIED UNMARRIEO (INCLUDES I-VES -VES 2-FEMALE 8- PUBLICE BODY 2-SEPARATED WIDOWEDONVORCED) 2-NO 2 2-NO 14. DIRECT PAYMENT 15. TYPE OF PAYMENT 16. FEE INSPECTION (See FMI) MONTHLY - SEMH-ANNUALLY -YES 2 2 2- ANNUALLY QUARTERLY 2 2 NO 17, COMMUNITY SIZE 18. YSE OF FUNDS CODE I0000ORLESS (FOR SFHAND (See 2. OVERI 10,000 HPGONLY) FMI) COMPLETE FOR OBLIGATION OF FUNDS 19. TYPE OF 20. PURPOSE CODE 21. SOURCE OF FUNDS 22. TYPE OF ACTION ASSISTANCE 1-OBLIGATIONC ONLY 238 (See FMI) 8 1 3-CORRECTIONG 2- OBLIGATIONCHECKI OF OBLIGATION REQUEST 23. TYPE OF SUBMISSION 24. AMOUNT OF LOAN 25. AMOUNT OF GRANT - INITIAL 2- SUBSEQUENT 2 $185,000.00 $50,000.00 26. AMOUNT OF 27. DATE OF 28. INTEREST RATE 29. REPAYMENT TERMS IMMEDIATE ADVANCE APPROVAL MO DAY YR 2.2500 % 10 COMPLETE FOR COMMUNITY PROGRAM. AND CERTAIN MULTIPLE-FAMILY! HOUSING LOANS 30. PROFIT TYPE 2 LIMITEDF PROFIT 1-FULLPROFIT 3- NONPROFIT COMPLETE FORI EM LOANS ONLY COMPLETE FOR CREDIT SALE-ASSUMPTION 31. DISASTER DESIGNATION NUMBER 32. TYPE OF SALE (S0eFM) 2- ASSUMPTIONG ONLY -ASSUMPTION WTH 1 -CREDIT SALE ONLY 3- -CREDITS SALEV WTHS SUBSEQUENTI LOAN SUBSEQUENT LOAN FINANCE OFFICE USE ONLY COMPLETE FOR FP LOANS ONLY 33. OBLIGATION DATE 34. BEGINNING FARMERIRANCHER MO DA YR (See FMI Ifthen decisione containeda above in this farm resilu ind denial, reductiond ord cance ellationo OfUSDA assistance.) your may' appeal this decisione andk havea hearing orj youn may requestar rerien ink lieu ofahearing Please Ise the fomiy wel have includerf for this purpose. Position 2 ORIGINAL Borrower's Case Folder COPY 1 Finance Office COPY 2 ApplicantLender COPY 3 State Office Iccording to the Papenvork Reduction. dctof 1995, and agency" may not conduer or ponsor, anda) person is noir required 10 respand loac callecrion ofi informiation unless ir displayraw valid OMB control number Thex valid OMB controln mimber for this informiation collectioni is 0570-1 -1M062. The timer required lo complete this information collecrion is atimaiedi o average 15 minutes per respanse. inchuding the time/ forr reviewing insinactions, rearchinge eriting dara sources. gathering and manraining the data needed, and complering and reie iating the collection ofinformation. CERTIFICATION APPROVAL For All Farmers Programs EM, OL, FO, and SW Loans This loan is approved subject to the availability of funds. If this loan does not close for any reason within 90 days from the date of approval on this document, the approval official will request updated eligibility information. The undersigned loan applicant agrees that the approval official will have 14 working days to review any updated information prior to submitting this document for obligation of funds. If there have been significant changes that may affect eligibility, a decision as to eligibility and feasibility will be made within 30 days from the time the applicant provides the neçessary information. Ifthis is a loan approval for which a lien and/or title search is necessary, the undersigned applicant agrees that the 15-working-day loan closing requirement may be exceeded for the purposes of the applicant's legal representative completing title work and completing loan closing. 35. COMMENTS AND REQUIREMENTS OF CERTIFYING OFFICIAL As per the rates and terms as outlined on the Letter of Conditions dated June 1, 2021. 36. I HEREBY CERTIFY that I am unable to obtain sufficient credit elsewhere to finance my actual needs at reasonable rates and terms, taking into consideration prevailing private and cooperative rates and terms in or near my community for loans for similar purposes and periods oftime. I agree to use the sum specified herein, subject to and in accordance with regulations applicable to the type of assistance indicated above, and request payment of such sum. I agree to report to USDA any material adverse changes, financial or otherwise, that occur prior to loan closing. I certify that noj part of the sum specified herein has been received. I have reviewed the loan approval requirements and comments associated with this loan request and agree to comply with these provisions. (For FPI loans at eligible terms only) Ifthis loan is approved, I elect the interest rate to be charged on my loan to be the lower of the interest rate in effect at the time of loan approval or loan closing. IFI check "NO", the interest rate charged on my loan will be the rate specified in Item 28 ofthis form. YES NO WARNING: Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined under this title or imprisoned not more than five years, or both." Date June 15 20 21 Tracy Sullivan, Town Clerk SMMAA3PPPRa, (SEAL) Date June 15 20 21 Robert Williams, Mayor Opsaxspoopnong 37. I HEREBY CERTIFY that all of the committee and administrative determinations and certifications required by regulations prerequisite to providing assistance of the type indicated above have been made and that evidence thereof is in the docket, and that all requirements of pertinent regulations have been complied with. I hereby approve the above-described assistance in the amount set forth above, and by this document, subject to the availability offunds, the Government agrees to advance such amount to the applicant for the purpose of and subject to the availability prescribed by regulations applicable to this type of assistance. (Signature ofA Approving Oficial) Typed or Printed Name: Date Approved: Title: Acting State Director 38. TO THE APPLICANT: As ofthis date this is notice that your application for financial assistance from the USDA has been approved, as indicated above, subject to the availability of funds and other conditions required by the USDA. If you have any questions contact the appropriate USDA Servicing Office. Form RD 400-1 FORM APPROVED (Rev. 5-00) UNITED STATES DEPARTMENT OF AGRICULTURE OMB No. 0575-0018 EQUAL OPPORTUNITY AGREEMENT This agreement, dated 06-15-2021 between Town of Sharpsburg (herein called "Recipient" whether one or more) and United States Department of Agriculture (USDA), pursuant to the rules and regulations of the Secretary of1 Labor (herein called the Secretary) issued under the authority of Executive Order 11 1246 as amended, witnesseth: In consideration of financial assistance (whether by a loan, grant, loan guaranty, or other form of financial assistance) made or to be made by the USDA to Recipient, Recipient hereby agrees, ift the cash cost ofconstruction work performed by Recipient or a construction contract financed with such financial assistance exceeds $10,000 - unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965. 1. To incorporate or cause to be incorporated into any contract for construction work, or modification thereof, subject to the relevant rules, regulations, and orders oft the Secretary or of any prior authority that remain in effect, which is paid for in whole or in part with the aid of such financial assistance, the following "Equal Opportunity Clause": During the performance ofthis contract, the contractor agrees as follows: (a) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited, to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the USDA setting forth the provisions oft this nondiscrimination clause. (b) The contractor will, in all solicitations or advertisements for employees placed by or on behalf oft the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. (c) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the USDA, advising the said labor union or workers' representative of the contractor's commitments under this agreement and shall post copies oft the notice in conspicuous places availabie to employees and applicants for employment. (d) The contractor will comply with all provisions of Executive Order 11246 of September 24,1965, and of all rules, regulations and relevant orders ofthe Secretary ofLabor. (e) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, rules, regulations, and orders, or pursuant thereto, and will permit access to his books, records, and accounts by the USDA Civil Rights Office, and the Secretary of] Labor for purposes ofinvestigation to ascertain compliance with such rules, regulations, and orders. () In the event oft the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be cancelled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Govemment contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation or order oft the Secretary of Labor, or as otherwise provided by Law. (g) The contractor will include the provisions of paragraph 1 and paragraph (a) through (g) in every subcontract or purchase order, unless exempted by the rules, regulations, or orders of the Secretary ofLabor issued pursuant to Section 204 of] Executive Order No. 11246 of September 24, 1965, sO that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the USDA may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the USDA, the contractor may request the United States to enter into such litigation to protect the interest of the United States. According to the Paperwork Reduction Act of 1995, an may nor conduct or and a person is not required to respond to, a collection afi information unless it displays a valid SKB control mumber, The CEPAIIOME valid controli mumber for this information çollections is 0575-0018. The time required lo complete this informnation collection is estimgted to average 101 minutes response, including the time forreviewing instrvictions. searching existing dala sources, gathering and maintaining the data and. completing and reviewing the collection ofi information Position 6 RD 400-1 (Rev. 5-00) 2. To be bound by the above equal opportunity clause with respect to its own employment praçtices when it participates in federally assisted construction work; Provided, that ifthe organization so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract. 3. To notify all prospective contractors to file the required 'Compliance Statement, Form RD 400-6, with their bids. 4. Form AD-425, Instructions to Contractors, will accompany the notice of award of the contract. Bid conditions for all nonexempt federal and federally assisted construction contracts require inclusion of the appropriate Hometown" or Imposed" plan affirmative action and equal employment opportunity requirements. All bidders must comply with the bid conditions contained in the invitation to be considered responsible bidders and hence eligible for the award. 5. To assist and cooperate actively with USDA and the Secretary in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and rules, regulations, and relevant orders ofthe Secretary, that will furnish USDA and the Secretary such information such as but not limited to, Form AD-560, Certification ofl Nonsegregated Facilities, to submit the Monthly Employment Utilization Report, Form CC-257, as they may require for the supervision of such compliance, and that it will otherwise assist USDA in the discharge of USDA's primary responsibility for securing compliance. 6. To refrain from entering into any contract or contract modification subject to such Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and Federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation ofthe equal opportunity clause as may be imposed upon contractors and subcontractors by USDA or the Secretary of Labor pursuant to Part II, Subpart D, of the Executive Order. 7. That ifthe recipient fails or refuses to comply with these undertakings, the USDA may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the organization under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such organization; and refer the case to the Department of. Justice for appropriate legal proceedings. Signed by the Recipient on the date first written above. Recipient Recipient Town of Sharpsburg (CORPORATE SEAL) Name of Corporate Recipient Attest: By Tracy Sullivan, Town Clerk Seeféty Robert Williams, Mayor PPESYOEX Position 3 USDA ASSURANCE AGREEMENT FORM APPROVED Form RD 400-4 (Under Title VI, Civil Rights Act of 1964) OMB No. 0575-0018 (Rev. 11-17) OMB No. 0570-0062 The Town of Sharpsburg (name of recipient) Po Box 1759 Sharpsburg, NC 27878- (address) As a condition of receipt of Federal financial assistance, you acknowledge and agree that you must comply (and require any subgrantees, subrecipients, contractors, successors, transferees, and assignees to comply) with applicable provisions of national laws and policies prohibiting discrimination, including but not limited to: 1. Title VI ofthe Civil Rights Act of 1964, as amended, which prohibits you from discriminating on the basis of race, color, or national origin (42 U.S.C. 2000d et seq.), and 7 CFR Part 15, 7 CFR 1901, Subpart E. As clarified by Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service) guidance, national origin discrimination includes discrimination on the basis of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs [in accordance with USDA RD LEP Guidance for RD Funded (Assisted) Programs). Meaningful access may entail providing language assistance services, including oral and written translation, where necessary. You are encouraged to consider the need for language services for LEP persons served or encountered both in developing your budgets and in conducting your programs and activities. For assistance and information regarding your LEP obligations, go to htp/www.lep.goy, 2. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating on the basis of sex in education programs or activities (20 U.S.C. 1681 et seq.)[as implemented by 7 CFR Part 15, 7 CFR 1901, Subpart E); 3. The Age Discrimination Act of 1975, as amended, which prohibits you from discriminating on the basis of age (42 U.S.C. 6101 et seq.) [as implemented by 7CFR Part 15, 7 CFR 1901, Subpart E); 4. Section 504 ofthe Rehabilitation Act of 1973, as amended, which prohibits you from discriminating on the basis of disability (29 U.S.C. 794) [as implemented by 7 CFR Part 15, 7 CFR Part 15b, 7 CFR 1901, Subpart E); 5. Title VIII oft the Civil Rights Act, which prohibits you from discriminating in the sale, rental, financing, and advertising of dwellings, or in the provision ofs services in connection therewith, on the basis of race, color, national origin, religion, disability, familial status, and sex (42 U.S.C. 3601 et seq.), as implemented by the Department of Housing and Urban Development at 24 CFR part 100. The prohibition on disability discrimination includes the requirement that new multifamily housing with four or more dwelling units, i.e., the public and common use areas and individual apartment units (all units in buildings with elevators and ground-floor units in buildings without elevators) be designed and constructed with certain accessible features, see 24 CFR Part 100.201; and 6. Titles II and III oft the Americans with Disabilities Act, which prohibit you 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 (42 U.S.C. SS 12131-12189), as implemented by Department of Justice regulations at 28 C.F.R. parts 35 and 36, and 7 CFR Part 15, 7 CFR Part 15b, 7 CFR 1901, Subpart E. decording to the Papenvork Rediction. Hcte of1995, no persons are required to respond ta ao collection ofinformation unless I dispiays a valid OMB control numben Thes valid OMB control number) fori this information collection is 0575-0018: The tine required to conplete thisi informiation is estimated to average 15 mimtes per: response, inclding the time for reviering instructions, searching existing data sources, gathering andi mainaining the data needed, and completing and rerieuing the collection ofi information You also acknowledge and agree that you must comply (and require any subgrantees, subrecipients, contractors, successors, transferees, and assignees to comply) with applicable provisions governing USDA Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service) access to records, accounts, documents, information, facilities, and staff: L You must cooperate with any compliance review or complaint investigation conducted by USDA Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service). 2. You must give USDA Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service) access to and the right to examine and copy records, accounts, and other documents and sources of information related to the grant and permit access to facilities, personnel, and other individuals and information as may be necessary, as required by Title VI, Title IX, Age, and Section 504 implementing regulations and other applicable laws or program guidance. 3. You must keep such records and submit to the responsible Department official or designee timely, complete, and accurate compliance reports at such times, and in such form and containing such information, as the responsible Department official or his designee may determine to be necessary to ascertain whether you have complied or are complying with relevant obligations. 4. You must comply with all other reporting, data collection, and evaluation equirements, as prescribed by law or detailed in program guidance. 5, Make available to users, participants, beneficiaries and other interested persons such information regarding the provisions of this agreement and the regulations, and in such manner as the Rural Development or the U.S. Department of Agriculture finds necessary toi inform such persons ofthe protection assured them against discrimination. 6. If, during the past three years, you (the recipient) have been accused of discrimination on the grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status, you must provide a list of all such proceedings, pending or completed, including outcome and copies of settlement agreements. 7. In the event any court or administrative agency makes a finding of discrimination on grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status against you, or you settle a case or matter alleging such discrimination, you must forward a copy oft the complaint and findings to USDA Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service), Office of Civil Rights. The United States has the right to seek judicial enforcement of these obligations. You also acknowledge and agree that you must comply (and require any subgrantees, subrecipients, contractors, successors, transferees, and assignees to comply) with applicable provisions of program-specific nondiscrimination policy requirements found at CFR Part 15, 7 CFR Part 155 b, 12 CFR Part 202, 7 CFR 1901, Subpart E., DR4300-003, DR4330-0300, DR4330-005. Period of Obligation In the case of any service, financial aid, covered employment, equipment, property, or structure provided, leased, or improved with federal assistance extended to the Recipient by Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service), this assurance obligates the Recipient for the period during which federal assistance is extended. In the case of any transfer of such service, financial aid, equipment, property, or structure, this assurance obligates the transferee for the period during which federal assistance is extended. Ifa any personal property is sO provided, this assurance obligates the Recipient for the period during which it retains ownership or possession oft the property. In all other cases, this assurance obligates the Recipient for the period during which the federal assistance is extended to the Recipient by Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service). Employment Practices Where a primary objective of the federal assistance is to provide employment or where the Recipient's employment practices affect the delivery of services in programs or activities resulting from federal assistance extended by Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service), the Recipient agrees not to discriminate on the grounds of race, color, national origin, sex, age, or disability, in its employment practices. Such employment practices may include, but are not limited to, recruitment, advertising, hiring, layoff or termination, promotion, demotion, transfer, rates of pay, training and participation in upward mobility programs; or other forms of compensation and use of facilities. Data Collection The Recipient agrees to compile and maintain information pertaining to programs or activities developed as a result oft the Recipient' s receipt of federal assistance from Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service). Such information shall include, but is not limited to the following: (1) the manner in which services are or will be provided and related data necessary for determining whether any persons are or will be denied such services on the basis of prohibited discrimination; (2) the population eligible to be served by race, color, national origin, sex, age, and disability; (3) data regarding covered employment including use or planned use ofbilingual public contact employees serving beneficiaries ofthe program where necessary to permit effective participation by beneficiaries unable to speak or understand English; (4) the location of existing or proposed facilities connected with the program and related information adequate for determining whether the location has or will have the effect of unnecessarily denying access to any person on the basis of prohibited discrimination; (5) the present or proposed membership by race, color, national origin, sex, age and disability in any planning or advisory body which is an integral part ofthe program; and (6) any additional written data determined by Rural Development (Rural Housing Service, Rural Business and Cooperative Service, and Rural Utilities Service) to be relevant to the obligation to assure compliance by recipients with laws cited in this assurance agreement. Under penalty of perjury, the undersigned officials certify that they have read and understand their obligations as herein described, that the information submitted in conjunction with this Document is accurate and complete, and that the recipient is in compliance with the nondiscrimination requirements set out above. Rights and remedies provided for under this agreement shall be cumulative. In witness whereof, Town of Sharpsburg on this (name of recipient) date has caused this agreement to be executed by its duly authorized officers and its seal affixed hereto, or, ifa natural person, has hereunto executed this agreement. (SEAL) Recipient 06/15/2021 Date Attest: Robert Williams, Mayor Tracy Sullivan, Town Clerk Tille Title USDA-RD Position 3 Form RD 1910-11 (Rev. 9-02) UNITED STATES DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT APPLICANT CERTIFICATION FEDERAL COLLECTION POLICIES FOR CONSUMER OR COMMERCIAL DEBTS The Federal Government is authorized to check credit information about the applicant(s) including using the federal Credit Alert Interactive Voice Response System (CAIVRS) or its successors to check to see if the applicant(s) are delinquent or in default on a Federal debt. The Federal Government is also authorized by law to take any or all of the following actions in the event your loan payments become delinquent or you default on your loan: Report your name: and account information to a credit reporting agency, and the Credit Alert Interactive Voice Response System (CAIVRS). Assess interest and penalty charges for the period of time that payment is not made. Assess charges to cover additional administrative costs incurred by the govemment to service your account. Offset amounts to be paid to you from your Federal income tax refund. Offset amounts to be paid to you under other Federal Programs. Refer your account to a private collection agency to collect the amount due. Foreclose on any security you have given for the loan. Pursue legal action to collect through the courts. Report any written off debt to the Internal Revenue Service as taxable income. Ifyou are a current or retired Federal employee, take action to offset your salary, or civil service retirement benefits. Debar or suspend you from doing business with the Federal Government either as aj participant or principal throughout the executive branch of the Federal Govemment for the period of debarment or suspension. Refer any debt that is delinquent to the Treasury Offset Program (TOP) in accordance with the Debt Collection Improvement. Act of 1996. Refer any eligible debt that is delinquent to the Treasury for Cross servicing in accordance with the Debt Collection Improvement Act of 1996. Gamish your wages as allowed by the Debt Collection Improvement Act of 1996. Any or all of these actions may be used to recover any debts owed when it is determined to be in the interest ofthe Government to do SO. CERTIFICATION: I/we have read and I/we understand the actions the Federal Government may take in the event that Iwe fail to meet my/our scheduled payments in accordance with the terms and conditions of my/our agreement. I/we understand that the above list is not all inclusive and that the Federal Government may deem additional actions necessary to collect should Iwe become delinquent, Sgnature-Individualg) (Date) Ssgnature-ndwidaale) (Date) 06-15-2021 Town of Sharpsburg (Date) (Name of Applicant) (SEAL) (Signature of Authorized Entity Official) ATTEST: Robert Williams, Mayor (Title of Authorized Entity Official) Po Box 1759 (Signature of Attesting Official) (Address) Tracy Sullivan, Town Clerk Sharpsburg, NC 27878- (Title of Attesting Official) (City, State, and Zip Code) RD 1910-11 (Rev. 9-02) This form is available electronically. OMB Control No. 0505-0027 Expiration Date: 04/30/2022 USDA Certification Regarding Debarment, Suspension, and Other Responsibility Matters AD-1047 Primary Covered Transactions The following stalement is made in accordance with the Privacy Act of 1974 (5U.S.C. 5 552a, as amended). This certification is required by the regulations Implementing Executive Order 12549, Debarment and Suspension, and 2 C.F.R.: S 180.335, Participants' responsibillies. The regulations were amended and published on August 31, 2005, in 70 Fed. Reg. 51865-51880. Copies of the regulations may be obtained by conlacting the Department of Agriculture agency offering the proposed covered transaction. According to the Paperwork Reduction. Act of 1995 an agency may not conduct or sponsor, and a person is not required to respond lo a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0505-0027. The lime required to complele this information collection is estimated to average 15 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and compleling and reviewing the collection of information. The provisions ofa appropriale criminel, civil, fraud, privacy, and other statutes may be applicable to the information provided. (Read instructions on page two before completing certification.) A. The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals: 1. Are not presently debarred, suspended, or proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; 2. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (A.2.) of this certification; and 4. Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. B. Where the prospective primary participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. ORGANIZATION NAME PR/AWARD NUMBER OR PROJECT NAME Town of Sharpsburg 2021 DCI Street Sweeper NAME(S) AND TITLE(S) OF AUTHORIZED REPRESENTATIVEIS) Robert Williams, Mayor SIGNATURE(S) DATE 06/15/2021 Ina accordance with Federal civil righis law and U.S. Department of Agriculture (USDA) civil rights regulalions and poliçies, the USDA, its agencies, ofices, ande employees, and institutions participating in ora adminlslering USDA programs are prohibiled from discriminating basedo onr race, color, national origin, religion, sex, gender identily (includings gender expression), sexual orienlation, disability, age, maritals sfalus, family/parenlal status, Income derived from a public assistance program, palitical beliels, or reprisalo ar retaliation for prior civiln rights activity, in any program or activity conducted or funded by USDA (nol all bases apply to all programs). Remedies and complaint Fling deadlines vary by program or incident Persons with disabilities who require allemative means ofcommunicalion. for program information (e.g., Brallle, large print, audiotape, American Sign Language, etc.) should contact the responsible agency or USDA's TARGET Centera al (202) 720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available ini languages other then English. Tof fle a program discrimination complaint. complele the USDA Program Discrimination Complaint Form, AD-3027, found online at How to File a Program Discrimination Complaint miAaZiAsandsiaasnsmsiarianasasa, and ata any USDA office or write a letter addressed to USDA and provide in the letter all ofthe information requestedl In the form. Torequest a copy oft the complaint form, call (866) 632-9992. Submit) your completed form or letter lo USDA by: (1) mail: U.S Department of Agriculture, Office ofthe Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 690-7442. This form is available electronically. OMB Control No. 0505-0027 Expiration Date: 04/30/2022 USDA Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion AD-1048 Lower Tier Covered Transactions The following statement is made in accordance with the Privacy Acte of 1974(5 U.S.C. S 552a, as amended). This certification Is required by the regulations implementing Execulive Order 12549, Debarment and Suspension, and 2 C.F.R. S5 180.300, 180.335, Participants' responsibillties. The regulations were amended and published on Augus! 31, 2005, in 70 Fed. Reg. 51865-51880. Copies of the regulations may be oblained by contacling the Department of Agriculture agency offering the proposed covered transaction. According to the Paperwork Reduction. Act of 1995 an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMB contral number. The valid OMB control number for Ihis information collection Is 0505-0027. The time required lo complele this informalion collection is estimaled lo average 15 minutes per response, including the lime for reviewing instructions, searching existing dala sources, gathering and maintaining the data needed, and completing and reviewing the collection ofi information. The provisions of appropriate criminal, civil, fraud, privacy, and other stalutes may be applicable lo the information, provided. (Read instructions on page two before completing certification.) A. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency; B. Where thej prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. ORGANIZATION NAME PR/AWARD NUMBER OR PROJECT NAME Town of Sharpsburg 2021 DCI Street Sweeper NAME(S). AND TITLE(S) OF AUTHORIZED REPRESENTATIVEIS) Robert Williams, Mayor SIGNATURE(S) DATE 06/15/2021 Ine accordance with Federal civil rights lawa and U.S Department of Agricullure (USDA) civil rights regulations and policies, the USDA, its agencies, offices, and employees, and instilutions participaling in or administering USDA programs are prohibited from discriminaling based on race, color, national origin, religion, sex, gender Idenlily (includings gender expression), sexual orientation, disabilily. age, marilal stalus, family/parental status, income derived from a public assistance program, political bellefs, or reprisal or retallation for prior civilr rights activily, ina any program or activily conducted or funded by USDA (nota all bases apply lo all programs). Remedies and complaint flingo deadlines vary by program or Incident. Persons with disabillies who require alternalive means ofcommunication: forp program Information (e.g. Brallle, large print, audlolape, American Sign Language, etc.) should contact the responsible agency or USDA's TARGET Center at (202) 720-2600 (volce and TTY or contact USDA through the Federal Relay Service at (800) 877-8339 Additionally, program informallon may be made avallable in languages other than English. To fle a program discrimination complaint, complete the USDA Program Discriminalion Complaint Form, AD-3027, found online at How to File a Program Discrimination Complaint Ates.Aankasezusdad aamsishNiamsemssasaNnNA, anda ata any USDA office or write a letter addressed lo USDA andp provide in thel letter all ofthe information requesledi In the form. Ton reques! a copy ofthe complaint form, call (866) 632-9992. Submit your completed form orl letter to USDA by: (1) mail: U.S Department of Agriculture, Office of the, Assistant Secretary for Civil Rights. 1400 Independence. Avenue, SW, Washington, D. C. 20250-9410; (2) fax: (202) 690-7442 This form is available electronically. OMB Control No. 0505-0027 Expiration Date: 04/30/2022 USDA Certification Regarding Drug-Free Workplace Requirements (Grants) AD-1049 Alternative I- For Grantees Other Than Individuals The following statement is made in accordance with the Privacy Act of 1974 (5 U.S.C. S 552a, as amended). This certification is required by the regulations implementing SS 5151-5160 oft the Drug-Free Workplace Act of 1998 (Pub. L.100-690, Tille V, Subtitle D: 41 U.S. C.S S 8101 et seq.), and 2CFR. Parts 182 and 421. The regulations were amended and published on. June 15, 2009, in 74 Fed. Reg. 28150-28154 and on December 8, 2011, in 76 Fed. Reg. 76610-76611. Copies of the regulations may be obtained by contacting the Department of Agriculture agency offering the grant. According to the Paperwork Reduction Acl of 1995 an agency may not conduct or sponsor, and a person is not required lo respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number fort this information collection is 0505-0027. The time required to complele this information collection is estimaled to average 15 minules per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection ofi information. The provisions ofa appropriate criminal, civil, fraud, privacy, and other statutes may be applicable lo the information provided. (Read instructions on page three before completing certification.) A. The grantee certifies that it will or will continue to provide a drug-free workplace by: I. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about - a. The dangers of drug abuse in the workplace; b. The grantee' 'S policy of maintaining a drug-free workplace; C. Any available drug counseling, rehabilitation, and employee assistance programs; and d. The penalties that may be imposed upon employees for drug-abuse violations occurring in the workplace. 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph A.1. 4. Notifying the employee in the statement required by paragraph A.1 that, as a condition of employment under the grant, the employee will = a. Abide by the terms of the statement; and b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph A.4.b from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph A.4.b, with respect to any employee who is so convicted a. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or, local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs A.1 through A.6. B. The grantee may insert in the spaçe provided below the site(s) for the performance of work done in connection with the specific grant: PLACE OF PERFORMANCE (Street Address, City, County, State, Zip Code) P.0. Box 1759 Sharpsburg, NC 27875- Check ift there are workplaces on file that are not identified here. ORGANIZATION NAME PR/AWARD NUMBER OR PROJECT NAME Town of Sharpsburg 2021 DCI Street Sweeper NAME(S). AND TITLE(S) OF AUTHORIZED REPRESENTATIVEIS) Robert Williams, Mayor SIGNATURE(S) DATE 06/15/2021 Ina accordance with Federal civil rights law and U.S. Departmen! of Agricullure (USDA) civil rights regulations and policies, the USDA, ils agencies, offices, and employees, and institutions participating in ora adminislering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identily (including gender expression), sexuald orlentation, disability, age, marital stalus, family/parental stalus, income derived froma a public assistance program, political beliels, or reprisal or retaliation for prior civil rights activity, In any progrem or aclivilyo conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or Incident. Persons with disabillies who require allernative means of communicalion for program Information (es g., Braille, lerge print, audiotape, American Sign Language, elc) should conlact the responsible agency or USDA's TARGETO Cenler al (202) 720-2600 (voice and TTY or contact USDA through the Federal Relay Service at (800) 877-8339 Additionally, program information may be made available in languages other than English Tol file a program discrimination complaint, complete the USDA Program Discriminalion Complaint Form, AD-3027, found online at How (o/ File a Program Discrimination Complaint - and ate any USDA office or write a letter addressed lo USDA and provide in the leller all ofthe information requestedi int the form. Torequesl a copy ofl the complaint form, call (866) 632-9992 Submit your completed form or letter to USDA by:(1) mail: US Department of Agricullure, Office oft the Assisiant Secrelary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 690-7442. Form AD-1049 (REV 10/19) Page2of3 RD Instruction 1940-Q Exhibit A-1 CERTIFICATION FOR CONTRACTS, GRANTS AND LOANS The undersigned certifies, tO the best of his or her knowledge and belief, that: 1. No Federal appropriated Eunds 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 any 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 or Federal loan, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant or loan. 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 an 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 or loan, the undersigned shall complete and submit Standard Form - LLL, 'Disclosure of Lobbying Activities, 11 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 contracts, subcontracts, and subgrants under grants and loans) 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 section 1352, title 31, U.S. Code. 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. Town of Sharpsburg 06-15-2021 (nare) (date) Robert Williams, Mayor (title) 000 (08-21-91) PN 171 Form RD 3570-3 UNITED STATES DEPARTMENTOF, AGRICULTURE FORM APPROVED RURAL DEVELOPMENT OMB No. 0575-0173 (Rev. 07-20) COMMUNITY FACILITIES GRANT AGREEMENT Grantee and Agency This Grant Agreement (Agreement) dated 06/15/2021 is a contract for receipt of grant funds under the Community Facility Grant program (7 C.F.R. part 3570, subpart B). These requirements do not supersede the applicable requirements for receipt ofFederal funds stated in 2 C.F.R. Part 200, "UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS", which are incorporated by reference into this Agreement. Further, 7C.F.R. part 3570, subpart B, and all relevant regulatory requirements apply to applicants and are also incorporated by reference into this Agreement. This Agreement for the Project and Amount described below (the "Project Description") and for the Community Facilities grant, CFDA Number 10.766, is between the Grantee, a public body, nonprofit corporation or Indian tribe (you), and the United States of America acting through the Rural Housing Service (RHS or Agency). I. GENERAL AWARD INFORMATION 1. Grantee Name & Address 2.) DUNS No. 3. SAM No. Sharpsburg, Town of 052182680 5QV45 Po Box 1759 Sharpsburg, NC 27878- 4. Case No. 38-064-*****1332 5. Federal Award Identification Number (FAIN) 6. Award Date 06/15/2021 7. Performance Start Date 8. Performance End Date 06/15/2021 06/15/2021 9. Amount of Federal Funds Obligated for this 10.A Amount of Matching/Other Funds (if applicable) Action, 50,000.00 and' Total Amount of Federal Funds Obligated 804.00 235,000.00 11. Total Project Cost (Budget Approved 12. Award as Percentage of Total Project Cost Amount) 235,804.00 99.6 % 13. Grantee Contact (Name, Title, Contact Info) 14. Agency Contact (Name, Title, Contact Info) Robert Williams, Mayor (252)446-9441 Monica Thornton, Area Specialist 252-358-7924 15. Description of Real Property covered by the 16.1 Description of Equipment covered by the grant grant N/A Street Sweeper According to the Paperwork Reduction Actof 1995, an agency may not conduct or sponsor, and aj person is not required to respond to, a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is [0570-0050). The time required to complete this information collection IS estimated to average I hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection ofinformation. Form RD 3570-3 The Agency has agreed to give the Grantee the Grant Funds, subject to the terms and conditions established by the Agency. Provided, however, that any Grant Funds actually advanced and not needed for grant purposes shall be returned immediately to the Agency. The Agency may terminate the grant in whole, or in part, at any time before the date of completion, whenever it is determined that the Grantee has failed to comply with the conditions of this Agreement or the applicable regulation. II. RESPONSIBILITIES A. Grantee. The Grantee shall cause said project to be completed within the total sums available to it, including Grant Funds, in accordance with any architectural or engineering reports, and any necessary modifications, prepared by Grantee and approved by the. Agency as required by 7 C.F.R. part 3570. The Grantee will remain in compliance with all applicable laws, regulations, Executive Orders, and other generally applicable requirements for the duration ofthe Agreement including 7 C.F.R. part 3570, subpart B and 2 C.F.R. parts 200, 400, 415, 416, 417, 418, 421, and 422. The most commonly-relerenced provisions are identified below. 1. Financial and Program Management. You must follow the financial and performance management requirements in 2 C.F.R. S 200.300-.309. a. Financial Management. You must maintain a financial management system in compliance with 2 C.F.R. S 200.302. b. Internal Controls. You must maintain internal controls in compliance with 2 C.F.R. $ 200.303. C. Payments. You must comply with the payment requirements described in 2 C.F.R. S 200.305. Payment must be requested by using the SF-270, "Request for Advance or Reimbursement" or SF-271, Request for Reimbursement for Construction Programs" (as applicable). Receipts, hourly wage rate, personnel payroll records, or other documentation must be provided upon request from RHS if the request is for an advance; otherwise, the documentation must be provided at the time oft the request. Requests for payment must be sent to the Agency contact listed in Section 1.14. d. Revisions of the Work Plan and Budget. You must complete all elements of the Work Plan in Attachment A in accordance with that Attachment and must use project funds only for the purposes and activities specified in Attachment A - Approved Work Plan and Budget. You must further complete the outcomes shown for each Work Plan items within the time and scope constraints shown in Attachment A. You must report any changes and request prior approvals in accordance with 2 C.F.R. $ 200.308. e. Period of Performance. You may only incur costs chargeable to the award in accordance with 2 C.F.R. $ 200.309. f. Bonding. You must maintain your fidelity bond coverage in the amount of $ 185,000 for the Period of Performance of the award. (See 2 C.F.R.S 200.304) 2 Form RD 3570-3 g. Program Income. You must comply with the requirements of2 C.F.R. $ 200.307. Additionally, if program income is earned during the period of performance, you may use it in accordance with 2 C.F.R. $ 200.307(e)(2), provided that you inform us in writing of your intent prior to the award date. However, ifyou earn program income in excess of what can be used under 2 C.F.R. $ 200.307(e)(2) or ifyou earn unanticipated program income, you must comply with 2 C.F.R. $ 200.307(e)(1). Costs incidental to the generation of program income may be deducted from gross income to determine program income, provided these costs have not been charged to the award. 2. Procurement and Property Standards. You must follow the procurement standards requirements in 2 C.F.R. $ 200.310-.326. 3. Performance and Financial Monitoring and Reporting. You must follow the requirements in 2 C.F.R. Part 170, including Appendix A, and 2 C.F.R. $ 200.327- 329, and submit reports as outlined below. Unless otherwise directed in the addendum to this Agreement, the reports are due as indicated below. a. Form SF-425, "Financial Status Report. " Reports are due 30 calendar days after the reporting period ends. A final report is due within 90 days after the Performance End Date specified in Section I.8. of this Agreement or at the completion of your project, whichever date is sooner. Your reporting periods are below (mark one): Semi-Annually: January I - June 30 and July 1 - December 31 Semi-Annually: April 1 - September 30 and October 1 - March 31 Quarterly: January 1 - March 31, April 1 - June 30, July 1 - September 30, October 1 - December 31 b. Performance Reports. SF-PPR, Performance Progress Report" is due 30 calendar days after the reporting period ends. A final report is due within 90 days after the Performance End Date specified in Section I.8. oft this Agreement or at the completion of your project, whichever date is sooner. Your reporting periods are below (mark one): Semi-Annually: January 1 - June 30 and July 1 - December 31 Semi-Annually: April 1 September 30 and October 1 - March 31 Quarterly: January 1 - March 31, April 1 - June 30, July 1 - September 30, October 1 - December 31 The performance narrative on the Performance Project Report shall include, but is not limited to, the following: i. Describe the activities that the funds reflected in the financial status report were used for; 3 Form RD 3570-3 ii. A comparison of actual accomplishments to the objectives established for that period; iii. Reasons why established objectives were not met, if applicable; iv. Problems, delays, or adverse conditions which will affect attainment of overall project objectives, prevent meeting time schedules or objectives, or preclude the attainment of project work elements during established time periods. This disclosure shall be accompanied by a statement of the action taken or planned to resolve the situation; V. Objectives and timetables established for the next reporting period; The final report (due 90 calendar days after the period of performance end date) will also address the following: i. What have been the most challenging or unexpected aspects of this program? ii. What advice, best practices, and actions would you recommend to other organizations planning a similar program that would increase the success of their program? Please include strengths and limitations of the program. Ifyou had the opportunity, what would you have done differently? 4. Operations. The Grantee will manage, operate and maintain the facility, including this project ifless than the whole of said facility, continuously in an efficient and economical manner in accordance with 7 C.F.R. $ 3570.61(e). 5. Funding. The Grantee will not use grant funds to replace any financial support previously provided or assured from any other source. The Grantee agrees that the Grantee's level ofexpenditure for the Project shall be maintained and not reduced as a result of Grant Funds in accordance with 7 C.F.R. $ 3570.66. 6. Default. Upon any default under its representations or agreements contained in this instrument, 2 C.F.R. Part 200, or 7 C.F.R. Part 3570, Grantee, at the option and demand of the Agency, will immediately repay to the Agency the Grant Funds with any legally permitted interest from the date oft the default. Default by the Grantee will constitute termination of the grant thereby causing cancellation of Federal assistance under the grant. The provisions of this Agreement may be enforced by the Agency, at its option and without regard to prior waivers of previous defaults by Grantee, by. judicial proceedings to require specific performance of the terms of this Agreement or by such other proceedings in law or equity, in either Federal or State courts, as may be deemed necessary by the Agency to assure compliance with the provisions ofthis Agreement and the laws and regulations under which this grant is made. 4 Form RD 3570-3 7. Real Property. Use the real property including land, improvements, structures, and appurtenances thereto, for authorized purposes of the grant as long as needed and in accordance with 2 C.F.R. $ 200.311; 2 C.F.R. $ 200.312; 7C.F.R. $15.4(a)(2) and 7 C.F.R. $ 3570.92. In accordance with Title VI of the Civil Rights Act of 1964, deeds for real property must comply with the requirements for the Reverter and Habendum clauses. a. Title to real property shall vest in the Grantee subject to the condition that the Grantee shall use the real property for the authorized purpose of the original grant as long as needed. b. The Grantee shall obtain the. Agency's approval to use the real property in other projects when the Grantee determines that the property is no longer needed for the original grant purposes. Use in other projects shall be limited to those under other Federal grant programs or programs that have purposes consistent with those authorized for support by the Agency. C. When the real property is no longer needed, as provided in paragraphs (a) and (b). above, the Grantee shall request disposition instructions from the Agency. The Agency will observe the following rules in the disposition instructions: i. The Grantee may be permitted to retain title after it compensates the Federal government in an amount computed by applying the Federal percentage of participation in the cost of the original Project to the fair market value of the property; ii, The Grantee may be directed to sell the property under guidelines provided by the Agency and pay the Federal government an amount computed by applying the Federal percentage of participation in the cost ofthe original Project to the proceeds from sale (after deducting actual and reasonable selling and fix-up expenses, if any, from the sales proceeds). When the Grantee is authorized or required to sell the property, proper sales procedures shall be established that provide for competition to the extent practical and result in the highest possible return; iii. The Grantee may be directed to transfer title to the property to the Federal government provided that in such cases the Grantee shall be entitled to compensation computed by applying the Grantee's percentage of participation in the cost of the program or Project to the current fair market value of the property; Equipment. Abide by the following conditions pertaining to equipment which is furnished by the Agency or acquired wholly or in part with Grant Funds. Equipment is defined at 2 C.F.R. $ 200.33 and is tangible, non-expendable personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. 5 Form RD 3570-3 d. Use of equipment. The Grantee shall use the equipment in the Project for which it was acquired as long as needed. When no longer needed for the original project, the Grantee shall use the equipment in connection with its other federally sponsored activities, if any, in the following order of priority: i. Activities sponsored by the Agency. ii. Activities sponsored by other Federal agencies. b. Use of equipment. During the time that equipment is held for use on the project for which it was acquired, the Grantee shall make it available for use on other projects if such other use will not interfere with the work on the project for which the property was originally acquired. First preference for such other use shall be given to the Agency sponsored projects. Second preference will be given to other federally sponsored projects. C. Disposition of equipment. When the Grantee no longer needs the property as provided in paragraph 1 (a) and (b) above, the equipment may be sold or used for other activities in accordance with 2 C.F.R. $ 200.313 and 7 C.F.R. $15.4(a)(3) i. Equipment with a current fair market value of less than $5,000. The Grantee may use the property for other activities without reimbursement to the Federal government or sell the property and retain the proceeds. ii. Equipment with a current fair market value of $5,000 or more. The Grantee may retain the property for other uses provided that compensation is made to the Agency. The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original Project to the current fair market value ofthe property. Ifthe Grantee has no need for the equipment and the equipment has further use value, the Grantee shall request disposition instructions from the Agency. iii. The Agency shall determine whether the equipment can be used to meet RHS or its successor agency's requirements. If no such requirements exist, the availability ofthe property shall be reported, in accordance with the guidelines of the Federal Property Management Regulations (FPMR), to the General Services Administration by the Agency to determine whether a requirement for the equipment exists in other Federal agencies. They shall issue instructions to the Grantee no later than 120 days after the Grantee's request and the following procedures shall govern: 6 Form RD 3570-3 Ifso instructed or if disposition instructions are not issued within 120 calendar days after the Grantee's request, the Grantee shall sell the equipment and reimburse the Agency an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. However, the Grantee shall be permitted to deduct and retain from the Federal share 10 perçent ofthe proceeds or $500, whichever is less, for the Grantee's selling and handling expenses. Ifthe Grantee is instructed to ship the property elsewhere, the Grantee shall be reimbursed by the benefiting Federal agency with an amount which is computed by applying the percentage oft the Grantee participation in the cost of the original grant Project or program to the current fair market value ofthe equipment plus any reasonable shipping or interim storage costs incurred. Ifthe Grantee is instructed to otherwise dispose of the equipment, the Grantee shall be reimbursed by the Agency for such costs incurred in its disposition. d. The Grantee's property management standards for equipment shall be in accordance with 2 CFR $ 200.313 and shall include: i. Property records which accurately provide for: a description of the equipment; manufacturer's serial number or other identification number; acquisition date and cost; source of the equipment; percentage (at the end ofbudget year) of Federal participation in the cost of the Project for which the equipment was acquired; location, use, and condition of the equipment and the date the information was reported; and ultimate disposition data including sales price, or the method used to determine current fair market value ifthe Grantee reimburses the Agency for its share. ii. A physical inventory of equipment shall be taken, and the results reconciled with the equipment records at least once every two years to verify the existence, current utilization, and continued need for the equipment. iii. A control system shall be in effect to ensure adequate safeguards to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft of equipment shall be investigated and fully documented. iv. Adequate maintenance procedures shall be implemented to keep the equipment in good condition. V. Proper sales procedures shall be established for unneeded equipment which would provide for competition to the extent practicable and result in the highest possible return; 7 Form RD 3570-3 9. Earned Interest. Grantee agree to account for and to return to Agency interest earned on grant funds pending their disbursement for program purposes when the Grantee is a unit of local government. States and agencies or an instrumentality ofa State shall not be held accountable for interest earned on Grant Funds pending their disbursement. 10. Record Retention and Access. You must retain records related to this work performed under this Agreement and allow access to them in accordance with 2 C.F.R. $ 200.333-.337. 11. Closeout. You must comply with the closeout requirements in 2 C.F.R. $ 200.343. 12. Post-Closeout Adjustments and Continuing Responsibilities. You must continue to comply with the requirements in 2 C.F.R. $ 200.344 even after the Period ofPerformance for this Agreement has ended. 13. Cost Principles. You must comply with the provisions in 2 C.F.R. Part 200, Subpart E. 14. Audits. You must comply with the provisions in 2 C.F.R. Part 200, Subpart F. 15. Civil Rights Compliance. Unless otherwise provided in the addendum, you must comply with Executive Order 12898, Executive Order 13166- Limited English Proficient, the Americans with Disabilities Act of 1990, Title VI of the Civil Rights Act of 1964, and Section 504 of the Rehabilitation Act of 1973 as applicable. You must make the public facility or services available to all persons in the Grantee's service area without discrimination as to race, color, religion, sex, national origin, age, marital status or physical or mental disability at reasonable rates, including assessments, taxes, or fees. You may make modifications as long as they are reasonable and nondiscriminatory. Your compliance shall include collection and maintenance of data on race, sex, and national origin of your membership, ownership, and employees. This data must be available to us for Civil Rights Compliance Reviews. You must submit to a post-award compliance review conducted after the final disbursement of grant funds has occurred. 16. Execute Agreements. The Grantee will execute any agreements required by the Agency which the Grantee is legally authorized to execute. If any such agreement has been executed by the Grantee as a result of a loan being made to the Grantee by the Agency contemporaneously with the making of this grant, that agreement applies equally to the grant and another identical agreement need not be executed in connection with this grant. 8 Form RD 3570-3 17. Universal Identifier and Central Contractor Registration. The Grantee must have a Dun & Bradstreet Universal Numbering System (DUNS) number in order to apply for, receive, and report on a Federal award. Additionally, the Grantee must comply with the additional requirements set forth in Attachment Ci regarding the DUNS Requirements and the Central Contractor Registry (CCR) Requirements found at 2 CFR Part 25, including Appendix A. For the purposes ofthis Agreement, "you" in Attachment B shall mean "Grantee" as defined hereunder; 18. Federal Funding Accountability and Transparency Act. The Grantee is responsible for complying with all requirements of the Federal award. For all Federal awards, this includes the provisions of the Federal Funding Accountability and Transparency Act (FFATA), which includes requirements on executive compensation, and also requirements implementing the Act for the Grantee at 2 CFR Part 25 Financial Assistance Use of Universal Identifier and Central Contractor Registration and 2 CFR Part 170 Reporting Subaward and Executive Compensation Information. See also statutory requirements for whistleblower protections at 10 U.S.C. 2409, 41 U.S.C. 4712, 10 U.S.C.2 2324, 41 U.S.C. 4304 and 4310. See also 2 C.F.R. $ 200.11-200.113. 19. Not encumber, transfer or dispose ofthe property or any part thereof, furnished by the Agency or acquired wholly or in part with Agency funds without the written consent of the Agency except as provided in paragraph 8 (c). 20. Not duplicate other Project purposes for which monies have been received, are committed, or are applied to from other sources (public or private). B. Rural Housing Service (RHS). RHS has agreed to give the Grantee the grant funds, subject to the terms and conditions established by RHS. Provided, however, that any grant funds actually advance and not needed for grant purposes shall be returned immediately to RHS. RHS may terminate the grant in whole, or in part, at any time before the date of completion, whenever it is determined that the Grantee has failed to comply with the conditions of this Agreement or the applicable regulation. RHS shall remain in compliance with all applicable laws, regulations, Executive Orders, and other generally applicable requirements for the duration of the Agreement. The most commonly-reterenced provisions are identified below. 1. Payments. We will advance or reimburse funds up to the Award Amount identified in Section I.9 upon the Grantee's proper request according to Section II.A.1.c. 2. Monitoring and Enforcement. We will monitor the project to ensure that you are in compliance with the terms of the award. If we find that you are not in 9 Form RD 3570-3 compliance, we will enforce the terms of this Agreement using the provisions of 2 C.F.R. S 200.338-.342. a. Will assist Grantee, within available appropriations, with such technical assistance as Agency deems appropriate in planning the Project and coordinating the plan with local official comprehensive plans for essential community facilities and with any State or area plans for the area in which the project is located. b. At its sole discretion and at any time may give any consent, deferment, subordination, release, satisfaction, or termination of any or all of Grantee's grant obligations, with or without valuable consideration, upon such terms and conditions as Agency may determine to be (1) advisable to further the purpose of the grant or to protect Agency's financial interest therein and (2) consistent with both the statutory purposes of the grant and the limitations of the statutory authority under which it is made. 3. Termination of This Agreement. This Agreement may be terminated for cause in the event of default on the part of the Grantee or for convenience of the Agency and Grantee prior to the date of completion of the grant purpose. Termination for convenience will occur when both the Grantee and Agency agree that the continuation oft the Project will not produce beneficial results commensurate with the further expenditure of funds. In all cases termination and notification will be in accordance with 2 C.F.R. $ 200.339 and 200.340. C. Both Parties. The Grantee and RHS agree to the following: 1. Invalid Clauses. The invalidity of any one or more phrases, clauses, sentences, paragraphs, or provisions of this Agreement shall not affect the remaining portions of the Agreement. 2. Conflict between this Agreement and Other Applicable Regulations or Laws. Ifthere is a conflict between this Agreement and the applicable Program Regulation, the applicable Program Regulation shall prevail. Ifthere is a conflict between this Agreement and another law or regulation, RHS shall seek a legal opinion to determine which provision applies. 3. Dates. When the date fixed for the performance of an act under this Agreement is on a weekend or Federal holiday, then the performance by the close of business on the next Federal work day shall have the same force and effect as if made performed or exercised on the specified date. 10 Form RD 3570-3 The signatories below certify that they have authority to enter into this Agreement. Approved by an Authorized Representative of the Grantee: Robert Williams Name (Please Print) Mayor, Town of Sharpsburg Title (Please Print) 06/15/2021 Signature Date Approved by the United States of America, Rural Housing Service by: Monica Thornton Name (Please Print) Area Specialist, USDA Rural Development Title (Please Print) 06/15/2021 Signature Date II Form RD 3570-3 Attachment A Approved Work Plan and Budget (The work plan must have time, scope, and outcome entries for each task.) 12 Form RD 3570-3 ATTACHMENT B I. Reporting Subawards and Executive Compensation. A. Reporting of first-tier subawards. 1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as defined in section 1512(a)(2) ofthe American Recovery and Reinvestment Act of 2009, Pub. L. 111-5) for a subaward to an entity (see definitions in paragraph e. of this award term). 2. Where and when to report. a. You must report each obligating action described in paragraph a.1. of this award term to Atp/www,srs.goy. b. For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31, 2010.) 3. What to report. You must report the information about each obligating action that the submission instructions posted at tp:/wwwsrs.gov specify. B. Reporting Total Compensation of Recipient Executives. 1. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if: a. the total Federal funding authorized to date under this award is $25,000 or more; b. in the preceding fiscal year, you received i. 80 percent or more ofyour annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and ii. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); C. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at tpAnessesgoMansweriéxccompAtmD 2. Where and when to report. You must report executive total compensation described in paragraph b.1. of this award term: a. As part of your registration profile at http/www.cer.goy. b. By the end of the month following the month in which this award is made, and annually thereafter. 13 Form RD 3570-3 C. Reporting of Total Compensation ofSubrecipient Executives. 1. Applicability and what to report. Unless you are exempt as provided in paragraph d. oft this award term, for each first-tier subrecipient under this award, you shall report the names and total compensation of each of the subrecipient's five most highly compensated executives for the subrecipient's preceding completed fiscal year, if a. in the subrecipient's preceding fiscal year, the subrecipient received- i. 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal tinancial assistance subject to the Transparency Act, as defined at 2 C.F.R. $ 170.320 (and subawards); and ii. $25,000,000 or: more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and b. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at tp.Aapwsecgowansweryerecomp.hm, 2. Where and when to report. You must report subrecipient executive total compensation described in paragraph c.1. of this award term: a. To the recipient. b. By the end of the month following the month during which you make the subaward. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October 1 and 31), you must report any required compensation information of the subrecipient by November 30 of that year. D. Exemptions. If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report: 1. Subawards, and 2. The total compensation of the five most highly compensated executives of any subrecipient. E. Definitions. For purposes of this award term: 1. Entity means all ofthe following, as defined in 2 CFR part 25: a. A Governmental organization, which is a State, local government, or Indian tribe; b. A foreign public entity; C. A domestic or foreign nonprofit organization; d, A domestic or foreign for-profit organization; e. A Federal agency, but only as a subrecipient under an award or subaward to a f. non-Federal entity. 2. Executive means officers, managing partners, or any other employees in management positions. 3. Subaward: a. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. b. The term does not include your procurement of property and services needed to carry out the project or program. 14 Form RD 3570-3 C. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. 4. Subrecipient means an entity that: a. Receives a subaward from you (the recipient) under this award; and b. Is accountable to you for the use of the Federal funds provided by the subaward. 5. Total compensation means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17C.F.R. $ 229.402(c)(2)): a. Salary and bonus. b. Awards ofstock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments. C. Earnings for services under non-equity incentive plans. This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees. d. Change in pension value. This is the change in present value of defined benefit and actuarial pension plans. e. Above-market earnings on deferred compensation which is not tax-qualified. f. Other compensation, ifthe aggregate value of all such other compensation (e.g. severance, termination payments, value ofl life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000. 15 Form RD 3570-3 ATTACHMENT C I. System for Award Management and Universal Identifier Requirements A. Requirement for Registration with the General Services Administration's System for Award Management. Unless you are exempted from this requirement under 2 CFR 25.110, you as the recipient must maintain the currency of your information in the CCR until you submit the final financial report required under this award or receive the final payment, whichever is later. This requires that you review and update the information at least annually after the initial registration, and more frequently if required by changes in your information or another award term. B. Requirement for Data Universal Numbering System (DUNS) Numbers. The Grantee must have a Dun & Bradstreet Universal Numbering System (DUNS) number in order to apply for, receive, and report on a Federal award. C. Definitions. For purposes of this award term: 1. System for Award Management (SAM) means the Federal repository into which an entity must provide information required for the conduct ofbusiness as a recipient. Additional information about registration procedures may be found at the SAM Internet site (currently at htp:/www.sam.gov). 2. Data Universal Numbering System (DUNS) number means the nine-digit number established and assigned by Dun and Bradstreet, Inc. (D & B) to uniquely identify business entities. A DUNS number may be obtained from D & B by telephone (currently 866-705- 5711) or the Internet (currently at http/fedgov.dnb.com/webform). 3. Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25, subpart C: a. A Governmental organization, which is a State, local goverment, or Indian Tribe; b. A foreign public entity; C. A domestic or foreign nonprofit organization; d. A domestic or foreign for-profit organization; and e. A Federal agency, but only as a subrecipient under an award or subaward to ai non- Federal entity. 4. Subaward: a. This term means a legal instrument to provide support for the performance of any portion ofthe substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. b. The term does not include your procurement of property and services needed to carry out the project or program. C. A subaward may be provided through any legal agreement, including an agreement that you consider a contract. 16 Po Box 1759 Sharpsburg, NC 27878- RURAL DEVELOPMENT, USDA P.O. Box 8 Winton, NC 27986 This is to certify that the Town of Sharpsburg is in compliance with Federal, State, and Local requirements include the following: a. Compliance with special laws and regulations. b. Compliance with State Pollution Control or Environmental Protection Agency standards. C. Consistency with other development plans of the area. d. Compliance with State agency regulating water rights. e. Compliance with Civil Rights Act of 1964. f. Compliance with Title IX of the Education Amendments of 1972. g. Compliance with Section 504 ofthe Rehabilitation Act of 1973. h. Compliance with Age Discrimination Act of 1975. i. Compliance with A-133 audit requirements. BY: Robert Williams, Mayor 06/15/2021 Date Annual Amortization Factor & Amortization Schedule Calculator Town of Sharpsburg - Street Sweeper (example) $ 185,000.00 Loan Amount 2.250% Interest Rate (entered as a percentage i.e. 3.625%) **Disclaimer Please note that the 10 Term breakdown of principal and Interest payments shown are an estimate only 0 # ofy Years of Principal Deferral (Select from drggrdown) and don't account for leapy years. Actual 10 Amortization Period amounts are dependent upon the actual 1 Payments per Year date of application ofp payment. Interest accrues daily from one payment to the 112.79 Amortization Factor next. peste $ 20,867.00 Payment 7/15/2021 Date of Loan Closing Balance pae Payment Interest Principal $ 185,000.00 7/15/2022 $ 4,162.50 $ 16,704.50 $ 168,295.50 7/15/2023 $ 3,786.65 $ 17,080.35 $ 151,215.15 7/15/2024 $ 3,411.66 $ 17,455.34 $ 133,759.81 7/15/2025 $ 3,009.60 $ 17,857.40 $ 115,902.41 7/15/2026 $ 2,607.80 $ 18,259.20 $ 97,643.21 7/15/2027 $ 2,196.97 $ 18,670.03 $ 78,973.18 7/15/2028 $ 1,781.76 $ 19,085.24 $ 59,887.95 7/15/2029 $ 1,347.48 $ 19,519.52 $ 40,368.43 7/15/2030 $ 908.29 $ 19,958.71 $ 20,409.72 7/15/2031 $ 459.22 $ 20,407.78 $ 1.94 7/15/2032 $ 0.04 $ 20,866.96 $ (20,865.02) 7/15/2033 $ $ $ 7/15/2034 $ $ $ 7/15/2035 $ $ $ 7/15/2036 $ $ $ 7/15/2037 $ - $ $ 7/15/2038 $ $ $ 7/15/2039 $ $ $ 7/15/2040 $ $ $ 7/15/2041 $ $ $ 7/15/2042 $ $ $ 7/15/2043 $ $ $ 7/15/2044 $ $ $ 7/15/2045 $ $ $ 7/15/2046 $ $ $ 7/15/2047 $ $ $ 7/15/2048 $ $ $ 7/15/2049 $ $ $ 7/15/2050 $ $ $ 7/15/2051 $ $ $ 7/15/2052 $ $ $ 7/15/2053 $ $ $ 7/15/2054 $ $ $ 7/15/2055 $ $ $ 7/15/2056 $ $ $ 7/15/2057 $ $ $ 7/15/2058 $ $ $ 7/15/2059 $ $ $ 7/15/2060 $ $ $