TOWN OF NEWLAND 4/1/2025 BOARD MEETING A 201 - - ATTENDING: MAYOR: Derek Roberts ALDERMAN: James Johnson, Gail Haller, Christie Hughes, Kenan Foxx, Dave Calvert (absent) GUEST: Vicki Caraway, Kenny Caraway, Vanessa Angrisani, Maria Roberts, Donetta McKinney, Theresa Foxx, Nancy Davis, Drema Hayes, George Church, Margaret Church STAFF: Town Manager/Finance Officer Sandy Lewis, Police ChiefMichael Fields, Police Officer Dylan Isaacs, Public Works Director Gary Lewis, Town Clerk Jessica Buchanan, Town Attorney Gerald McKinney Mayor Roberts called the meeting to order at 6:00 p.m. and led the assembly in the Pledge of Allegiance. He asked everyone to silence their cell phones or turn them on vibrate. Alderman Foxx made a motion to approve the March public hearing minutes. Mayor Pro Tem Haller seconded the motion. All agreed by a show ofhands and stating aye. Alderman Foxx made a motion to approve the March board meeting minutes. Mayor Pro Tem Haller seconded the motion. All agreed by a show of hands and stating aye. Mayor Roberts asked if there were any additions or changes to the agenda. Sandy said there was one change to item 9-b, which says sewer rehabilitation project contract 2 on the third line; it should say Tweetsie lift station project. Alderman Johnson motioned to adopt the agenda with the changes. Alderman Foxx seconded the motion. All agreed by a show of hands and stating aye. MAYOR'S REPORT Mayor Roberts said he wanted to talk about what he and Sandy had discussed about the debris removal and asked her to give a brief synopsis of what she is being told now and who to call to complain to. Sandy said she and Gary met with a gentleman named Sonny Simms on the 25th ofMarch at Town Hall. She explained she had sent multiple emails to the County with photos ofthe debris on the roads that had not been picked up. Mr. Simms said that SDR had started debris pick up by going to the areas that are out the furthest, like the pig trails, as they call them. They are working their way into Newland and getting to us. However, that's how they're working from outwards to the center. Sandy said she and Gary took pictures and kept emailing the County, SO they finally sent Mr. Simms to meet with them. Regarding cleaning the waterways, they can only clean FEMA-approved locations up to a thousand feet upstream from a bridge or a box culvert. Debritech has gone back out with additional locations to send to FEMA for approval through environmental planning and historic preservation. Sandy said she emailed today because she and Gary had spoken to Mr. Simms on the 25th about the Riverwalk. Gary has been out and taken photos, which the council members have in their packets. They show where the Riverwalk was halfway walkable until they started the waterway cleanup, and now it's full of dirt, twigs, and little branches. Mr. Simms said they would come with a sweeper and clean it off,; however, as of today, it has not been cleaned. Sandy said she sent another email asking when this was going to be done. Gary said he had responded to most of the emails they had sent. However, after they spoke with him, he did not clean up thel Riverwalk. Gary said it was frustrating that the cleanup caused a bigger mess than there was before. He said there was a pile behind the church that wasn't there before. However, they have cleaned other places Sandy and Gary have asked them about, like across from the elementary school and Elk Street. Sandy said a guy was going up and down Hickory Nut Gap seven days a week. Mayor Roberts asked if they could ask about Watauga Street because he keeps being told they are going to get to it. Gary said they did. However, Sandy said she would ask again. Sandy said the other thing they asked Mr, Simms about was the tires. When they cleaned the waterways, tires were stacked up at the wastewater treatment plant and by Shomaker. He said they're not allowed to pick up tires but have an idea ofhow to handle that. She said she wasn't going to share what that idea is because that's on him. Sandy said he talked about the County getting big dumpsters and having everyone throw the tires in there so they could get rid of them. Mayor Roberts said that communication was lacking, and everybody he talked to had no clue what was happening. They understand the County made it very clear they would be arresting folks because the 23rd was the last day you could dump anything. However, due to insurance companies, folks are still pulling stuff off their property and now getting around to it. He said it feels like these cleaning crews that were supposed to be here for at least a year are trying to pull out at six months because he didn't see nearly as many on the roads. The local groups have been treated soj poorly that they have pulled off from doing the work. Sandy said she would see the assistant County manager, Cindy Turbyfill, and speak with her in person tomorrow. Mayor Roberts asked Sandy if she would email him and the board tomorrow and let them know what she says, and she said yes. He said he fears some side roads, like Shady Street, Watauga Street, and going up to Sokassa will not be cleaned up. Gary said the County got K & Cto clean up all of the pine trees that had: fallen down. They were out all day, Saturday and Sunday, the other weekend, cleaning up trees on Shady Street. Mayor Roberts said it was odd they came out and cleaned up that little bit between West Brewer and Watauga, but that was it. He said he had seen one truck on Watauga one time, and they picked up three logs and moved on. Gary said he and Sandy sent pictures of Watauga Street, and they wouldn't pick up any oft the: mess ifit were from the windstorm. Sandy said ifi it were Helene-related, they would pick it up; if it were from the windstorm, they would not because that is what their çontract says. Mr. Simms told them they would not pick it up ifit were still green. Mayor Roberts asked Sandyi ift they had not been initially told that the Army Corps ofEngineers would come through and do this big river clean-up of a thousand feet on both sides. Sandy said it was her understanding that the Army Corps would clean up the waterways. Gary said he believes they are three or four steps down the line from the Army Corps getting involved. Mayor Roberts said they did a fabulous job of cleaning up toward Grandfather Golf and Country Club, and Attorney McKinney said they had cleaned up the stream going toward Elizabethton. Alderman Hughes said people are working on Toe River and connected with the Army Corps. Vicki Caraway said she and Mr. Caraway were at the commissioner's meeting when SDR was there to talk to them about a four-phase plan. The plan includes roadside debris removal, riverway debris removal, and personal property debris removal. To her understanding, it was going to be that company that would be in charge. She said the Army Corps of] Engineers may be working here, but that's not who the County has a contract with. Mayor Pro Tem Haller said she thought the roadside debris was supposed to stop, and they were only doing personal property. Mayor Roberts said that's why he panicked: they've not finished the roadside and set these weird dates. Sandy asked what we could do when citizens are told not to dump anything after February 23rd yet continue to do SO. And then the road right-a-way folks come and say from March 1st to March 31st, they will supposedly make their final sweeps. After they make their final sweeps, the citizens are still dumping. Gary said they are intentionally leaving debris on the lot at the corner ofHigh School Road to keep people from continuing to dump there. Mayor Roberts said they had done the same thing at the propane tanks and that some of the debris folks he spoke to said they were not returning to get that. The County will have to hire a new crew at some point. Gary said he understood they were going to clean up High School Road, but they were waiting until a later date because once they clean it up, it will be stamped final, and they will be done with that area. Ifs someone dumps something there the next day, it is just going to be sitting there. Vanessa Angrisani asked if our police department had any power to do anything ift they see someone dumping, like issuing a citation. She asked Chief Fields if a citation is issued, then the district attorney has to prosecute. She asked how many general cases they have been able to get through the court system through him in the last twelve months, and Mayor Roberts replied none. Sandy said it's considered littering if we catch someone doing it. However, no one is seeing anyone. Dream Hayes said the people that live here know that the weather has been bad. A lot of the people can't get out to take their stuff where it needs to go. When it is pretty, everybody wants to get out and help others, and they try to take it where it needs to go. And then here we are. Mayor Roberts said he was confused because they said this would be at least a year-long process, and six months in, it feels like we have gone through stages four and five oft this process. He said he doesn't want to turn out to be the mayor who hauls a bunch ofstumps and dumps them at the County courthouse. Vicki Caraway said she thought FEMA was supposed to pay this company; however, they have not received any reimbursements yet. IfFEMA does not pay them, the County is responsible for paying them, which is in the millions of dollars now. Things are moving slowly because there is no funding. Mayor Roberts said things are also moving slowly because the State drug their feet. The State was supposed to reimburse the contractors, and then FEMA was supposed to reimburse the State. Ms. Angrisani said on the front end that we had all helped each other long before anybody from the government showed up. Even after they did, we continued to help each other out. She said that now that we. have real money on the it becomes inconvenient, a nuisance, or a tedious step; at that point, the shift will be that Sandy has to basically table, sit on them until they pay. Then we have to figure out how much time Sandy will have in a day to sit on them to do the job they should be doing without her direction or demand. She feels like there is: more, especially on the can level, and you only knock on a door sO many times. Mayor Roberts suggested that any time Sandy sent county the County an email, she may want to start including thel board members as well. Whenever they run into Phillip or Cindy, we can ask them. He is being told that anything that needs to be dumped from 23rd and forward should be taken to the transfer station in Spruce Pine. Sandy said she could play devil's February advocate and say, a tree fell last weekend, and she wants somebody to pick it up, but it's not that contractor's job to pick it up. Even ifHelene had never happened and at tree had fallen, we would still need to take responsibility ourselves to clean it up. Roberts said he could give a better one. Mike Nelson tore down the condemned house on the river, and Mayor he believed they could all agree that the house was sitting on the river. Hel had a roadside crew come toj pick it up because he demoed the house and pulled it to the road. Then he got seven or eight dump loads taken down there with the monitor, and at dump number eight, they stopped him and told him he was supposed to have the river crew clean it up. Mayor Roberts said he had to get involved and go talk to him. At first, they weren't going to pay the contractor who hauled eight loads of this house down, and now Mike is stuck with two more loads that he's trying to figure out where he's supposed to take it. Sandy said she received a complaint from a citizen about some of those blocks from that house being down in the river on the bank. Mayor Roberts said he had been over to speak with Mike a of times and would talk to him again. However, citizens need to understand this is a work in progress, and it could couple still be sitting there if Mike had not stepped in. DISCUSSION OF RIVERWALK Mayor Roberts said he asked to put the Riverwalk on the agenda because he receives a lot of questions about the Riverwalk and what we are doing. He understands where Gary and Sandy are coming from but wants to switch gears. He has spoken to Mike, and he will loan the Town a Bobcat with a brush sO the mayor and some of his employees can use it. He, Gary, Mike, and maybe Gail or Sandy could ride around and write down what the Town can go ahead and deal with. Mayor Roberts said he would also like to figure out how to get the lights turned back on because they are all still up. Gary said that wasn't happening, and Mayor Roberts asked why. Gary said that most of the electronics and all the globes had water in them, As they went through the process with FEMA, they told them all the lights needed replacing. Mayor Roberts said electronics can be cleaned out. Gary said some lights are down, exposed wires, and control panels that are, rusted out from the water in them. He said getting some oft the lights back on would take a lot of work, Ms. Angrisani asked if they had to take a total loss on the FEMA claim or if they received aj percentage. Gary said they claimed a total loss. Mayor Roberts asked when FEMA was going to start paying that back. Sandy said they had the site inspection, and that was the next step. All that gets written up by damage and prevention will then come back to us for review. After our approval, the project goes to the CRC, Mayor Roberts asked which line item we had money in SO that he could ask the board for a little bit to have an electrician go out and look at a dozen of these and see what we. have. Sandy said her personal checkbook. Gary said we couldn't get anything by the line beside the bank because only one light stood. Your best bet is on the. Riverwalk from Kaye's and around there. Or the Town Park around the church probably has the most lights, but the lower side is pretty much gone. Mayor Roberts asked the board to give Gary some money to find an electrician to take a look at some of the lights. Mayor Pro Tem Haller said she believes Sandy should be the one to decide how much we can give to him. Mayor Roberts said we came up with $10,000 to put in the shop we used twice during the winter. Alderman Hughes said she didn't know if we could and didn't know what he had to give. Sandy said the: money that we have, after paying all of the bills that we. have to pay, we will be in the hole of $74,000. And that includes all the quotes for fixing the bridges and our loans. Alderman Johnson said there were no funds right now, and Sandy said there were. no funds right now. Ms. Angrisani asked ifFEMA had paid anything yet, and Sandy said no. She asked if it was a quarterly claim or the actual project claim. Sandy said it was the whole project's public assistance claim. Gary said they have had thel bridge claim for a month and haven't seen anything. Gary said Jeff Welker from the Department ofPublic Safety was here on Monday prodding to get some of these projects approved sO we could some get money. There was no good handoff between the last person working with the FEMA group and the new person. There was, just some. misinformation, not that she was not doing herjob because she was. They had sent Marquese information, and he did not transfer it to her, However, they got a lot of that straightened out on Monday. RESOLUTIONS: SEWER REHAB PROJECT - CONTRACT 1, SEWER REHAB PROJECT - CONTRACT 2, TWEETSIE LIFT STATION PROJECT Sandy said these resolutions are going towards the 3.2 million dollar grant and the contract that was started. These were resolutions that were: never completed and should have been done a year ago. She is getting ready to go through a big ARPA grant report through the State, and they have identified three: resolutions and three policies, which are the following six things on the agenda that need to be done. The first three are the resolutions for the tentative award for contract one, the tentative award for contract two, and the Tweetsie rehabilitation project. She said we would like to rehabilitate the Tweetsie lift station because it's a 1964 design. Whenever we: need something worked on, someone has to come in with a crane because the elevator doesn't work half the time. There is a 50-foot tube that only one person can go down, SO it's always an expensive repair, She said we are waiting to see who we can get money from first, either a federal grant through Congressman Edwards for the Tweetsie project and tank one. The tank is from 1945 and sits on the hill going out ofTown. If we cannot get that grant, we are trying to get Mike Tolson with Mack Gay Associates to write a grant for some: money: for the Town. The three resolutions are for the two contracts and future work on the Tweetsie lift station. Alderman Johnson motioned to accept the sewer rehab project for contract one. Alderman Hughes seconded the motion. All agreed by a show of hands and stating aye. Alderman Johnson motioned to accept the sewer rehab project for contract two. MPT Haller seconded the motion. All agreed by a show ofl hands and stating aye.. Alderman Johnson motioned to accept the Tweetsie lift station proposal. MPT Haller seconded the motion. All agreed by a show ofhands and stating aye. ARPA GRANT POLICIES: PROGRAM INCOME POLICY, SUB-AWARD POLICY, PROPERTY MANAGEMENT POLICY Sandy said the following three items are resolutions with policies that should have been enacted when we received the ARPA grant. She said the sub-award and monitoring policy was forty-one pages long, sO she did not make copies for everyone. However, they had copies of the other three resolutions that needed approval. Alderman Johnson motioned to accept the program income policy. Alderman Hughes seconded the motion. All agreed by a show ofhands and stating aye. Alderman Johnson motioned to accept the sub-award policy. Vanessa Angrisani asked what the differençe was between the sub-award and the program income policy. Sandy explained that the sub- award policy is when you contract work to a third party. She said the School of Government writes the policies, and so: many questions are asked, and the federal government can kill you with paperwork. However, if we do not do all oft this, we could lose all that money, and we don't want to lose that money. MPT Haller seconded the motion to accept the sub-award policy. All agreed by a show ofl hands and stating aye. Ms. Angrisani asked if the property management policy was also part of the ARPA grant, and Sandy said yes. It's when you have to tell them about property trust and implementation policies. It is also to ensure that we have proper insurance, how to dispose of equipment if we no longer need it properly, and that we are documenting everything correctly. Alderman Hughes said this had been going on for a couple of years and asked if there was a time limit for completing all the work. Sandy said all the work must be done by 31 December 2026. Sandy said the work is ongoing right now with the wastewater line cleanout and running the camera through the sewer system. She and Gary filed a complaint through Mack Gay Associates because they didn't think the company was moving fast enough. The weather has been anl issue because when the company comes out, they bring a jetter that has water in it. Whenever it's below 32 degrees, the water freezes, and you can't use the jetter, SO they have asked for a 90-day extension because of the harsh weather that we've had, but they're back at it again. Mack Gay has hired Keith Hoilman to monitor the work being done. Gary said Tri-State had been bought out, and the company was under new management. They are supposed to work this week starting on Saturday and staying over on Sunday, and then they will start back up on Monday. Sandy said the amount of water we are pumping out of the wells and processing through the wastewater treatment plant has increased since Helene. So, we know there's infiltration somewhere, and you can't ride around town and see it bubbling up anywhere. There must be broken or horizontal cracks in the lines, and we hope the camera will find that sO we can show them to you. Alderman Johnson motioned to accept the property management policy. Alderman Hughes seconded the motion, All agreed by a show ofl hands and stating aye. BUDGET AMENDMENT Sandy said she was bringing the budget amendment to the board and asked to increase our appropriations for revenue in fund 10. Wel budgeted $8,000 for the sales and use tax return, but we submitted $21,800 and received that money. We also received an extra $6,000 after renting the office space to Chief Cares for six months. That money will go into Department 420, and a thousand will go into Department 510 because we were already to be low on tax revenues for 2024. Alderman Johnson motioned to accept budget amendment number three. MPT going seconded the motion. All agreed by a show ofl hands and stating aye. STORAGE FEES Sandy and Michael researched impound fees after the last board meeting. They raised them to $25 a day, the maximum amount. She put it on the new: rate schedule, and. Jessica posted it on the website. Mayor Roberts asked where they got that price, and they said from the Statute. EQUIVEST EXTENSION REQUEST Gary said we sent them the letter about what we wanted them to address on Old Vale. They received the letter on February 11th, meaning they had until March 11th to submit a plan for the waterside, On March 19th, Gary emailed Mr. Klopp that we. hadn'ti received any contact. He came back and asked to have a 30-day extension for that. are working with contractors, and the owner. has been interviewing for a construction manager who is experienced They in these types of projects. Sandy clarified Gary was talking about the mobile home park on Old Vale Road. Gary said he noticed the van sitting at the first mobile home was gone, but the rest was still there, Vicki Caraway said there has been some improvement. Right after they got those letters, there was a. flurry of activity. A few of the old cars were towed away and they did do some cleaning. Ruth Shirley assisted us in getting a dumpster there for a which the residents did use because some folks there do not have the means to haul anything off. Gary said weekend, they requested that the whole water system be redone and leak detectors or meters be installed at each location, He said he read the meter yesterday, and they hadi used 363,000 gallons of water last month. Alderman Johnson asked Gary ifhe thought they would get everything done ift they did give them the extension. Gary said they aren't going to get it done, but the extension for thirty days is for them to present a plan to us as to what they are going to do. They have ten more days to give us a plan. Ifthe board does not approve the thirty-day extension and we don't receive the then we plan, go back to March 11th and start charging $100. a day. Allen Jenkins told Gary he was trying to buy it, and he owns six or seven of the mobile homes there. Mayor Roberts asked ifhe was trying to buy Equivest out, and Gary said that is what he led him to believe, but he didn't know if they would sell. Gary said Mr. Jenkins had some, gravel upi in the middle, and he was frustrated because they had started driving on it before he could put it packed and finished. Alderman Johnson said he didn't think it should take another thirty days to get a plan get in place and asked how long they have had. Gary said it's a double-edged sword because Bill, Michael, and himself went out there in the summer of 2023, which started this process, and there still hasn't been anything done. He asked if more thirty days would matter since we had already dealt with it for two years or if this was where we would draw the line. Mayor Roberts said we needed to draw the line because, like everything else in government, we. keep kicking the can down the road. Ifv we have any teeth, let's draw the line, cut off the water, and make them fix it. Gary said the letter didn't say we would cut the water off, but we would charge them $100 a day per unit until they did what were they asked to do, which came out to $1,600. Ms. Angrisani said she wasn't trying to say automatically go into foreclosure, but the $1,600 a day is on the property. Eventually, when we decide to execute, we will apply the lien. Then, you can enforce the lien and get the judgment. After receiving the judgment, you either pay or you don't and if you don't pay, then the recourse is foreclosure. pay, Kenny Caraway stated these were. his neighbors, and he had been dealing with this for twenty years. He said he receives all the complaints, and you can't do enough to satisfy these people. Mr. Klopp isn't going to do anything, no matter what he says. He said his next-door neighbor owns a house next to the: mobile home park, and their property line runs through some of the homes, and you can't get them to do anything. He asked the Town Board to decide and go on with something; as Mayor Roberts said, draw a line and say this is the way it is. If you give them another thirty days, that's just another thirty days you're going to be behind, and that is a lot of water they are pumping out of the system. Mr. Caraway said that was putting a lot of strain on the Town's water system, and there was no way they were using that much water. Ms. Angrisani said he was right and verified they used 363,000 gallons last month. Gary said yes, it was going somewhere, which averages to about 20,000 gallons per. home. Mayor Roberts asked if they had ten more days to turn in their plan. Gary said no, their thirty days were up on March 11th. Mayor Roberts said we needed to send a letter stating we are charging $100 a day per unit. Have a good day. Gary said Mr. asked Klopp for the thirty-day extension SO he could go back tomorrow and send an email saying that from March 11th, we are charging $100 a day per unit. Or we can give him ten days, and if we don't get anything, we can go back to March 11th. Mayor Roberts said to email him back and tell him no because it has gotten out of control. Ms. Caraway asked if we sent the letter in February, and Gary said yes; Mr. Klopp signed that he had received the letter on February 11th. PUBLIC WORK'S REPORT Gary said he has some quotes on the roofs and is hoping to group that into another project for some ofthe grant money. The UV system at the wastewater treatment plant, the SCADA system, is outdated, and if it crashes, we are down. It would not be completely down, but he would have to read wells twice daily. Sandy asked if anyone knew what SCADA was. Gary said it doesn't read the meters, but it tracks the wells and gives you status to let you know if they are good or not. Gary said if we can get the grant money, the UV lights are around $60,000 to redo that system. He believes nothing has been done to it since it was installed. Since he started, the glass has been busted out ofthe control box, and it's just sitting there for water to get into it, He said he covered it up, SO you can't see or do anything with it. Ms. Angrisani asked ifit was still working, and Gary said yes. He said he checks to make sure they are on, and he had a guy change a bunch of bulbs last year. The rest of this stuff is related to Helene and FEMA. We put the new pump in. Two wells full of debris and rags need tol be cleaned out, and he submitted that as a new project to FEMA today. The level sensor messed up, sO that isn't working. John came out, and we took the sensor out and put it on floats, sO it worked on the float system. Gary said the brand-new pump that was put in was damaged by debris going intoi it, and: it needs $30,000 to be removed, repaired, and put back in. He said luckily, pump two is working, but it sounds really loud. Ms. Angrisani asked if we could file a claim on that one, and Gary said yes since Helene damaged it. Sandy said one of the things she read on the wastewater system was that, as a municipality, we are supposed to keep two pumps in stock at all times. When this stuff goes down, and if we have another sewage overflow, we get these nasty grams from DEQ. We will receive notice of violations, and they will pull your permit, and we don't want that to happen. There's no way over the years, someone didn't know, and she just found the information by accident after reading all this stuff when we had a sewage overflow. Alderman Johnson asked how much money we had that we could only spend on sewer. Sandy asked ifhe was talking about the capital management trust account. Mayor Roberts said however much that can only spent on sewage, and we could probably use some of the grant money. Sandy said they are trying to maximize that grant with the $3.2 million when we: see things like this that are: not Helene-related. Mayor Roberts said all of this could be covered with that. Sandy said almost everything they mention now can be covered because of the debris that got into the wells. Gary said no, the money we received from the grant was in an emergency fund because they knew we didn't have the money, and they paid for some of the stuff, just like for Kemp to come in and put our new pump in. Mayor Roberts said he was talking about the 3.2 million dollars we got three years ago and asked if that money could be used for some of this. Sandy said two of these resolutions are already contracted for $3.2 million, Gary said two million are already allotted for the sewer line cleanup and: manhole rehabilitation. They don't think they will use most of what they had allotted for repair on the sewer line, sO we should have some of that money returned back to the pool. Instead of the full two million going for all of that, maybe only a million and a half, or $1.6 million, and then that will give us $400,000 back into the pools to use for something else. Part of that may be used for Tweetsie, but Gary said he had a list of things that aren't on here. He needs the other aeration basin cleaned out, and that was $100,000 because you can't use it right now from where they shut it down. All oft that needs to be refurbished, coated, and sealed because you can see the rock in the concrete, and that's another $100,000. Mayor Roberts asked ifGary was saying we cannot use any oft the 3.2 million dollars for everything you need. Gary said we. have some money for some ofit; however, it has to be done with the project. The deal with the two roofs, the UV lights, and the SCADA, are trying to slide through on one project because SCADA and the UV lights are proprietary. They are trojan UVs, and the SCADA is not exactly proprietary, but not many people do it. You don't necessarily have to do or go through the full bidding process, or you don't have to advertise it. He said they are trying to get money for those four things out of the grant. He said you can't just tell them you are going to do something and ask them to reimburse you. Sandy said it's like the federal and state governments; they have to take their steps. Ifyou do this project, you must do this paperwork. She said the only money that we have actually received from that $3.2 million grant is $111,339, and we spent it fixing things. Gary said they hadn't been reimbursed for all the stuff that had been fixed, like High School Road, but they had to put the water line back in, the fire hydrant, and then the leak that was up the hill on Long Cabin Lane. We paid Iron Mountain to repair those things. We also paid Iron Mountain to repair the sewer line that was ready to pop up at Pershing Street. Wel have had to pay for things wel have fixed using that money, and ifv we ever get any money from FEMA, that money will go backi into the pool. Alderman Johnson asked Gary how many quotes he got to fix the roofs. Gary said he only got one and had another one, He spoke to a guy last week and said he would get Gary a quote. Het texted him yesterday and asked if they had gotten him a quote yet. Then he contacted another one he has not heard back from, sO he is trying to get three quotes, He said he spoke to someone last year about the roofs, and they told him they would probably be twenty a piece. Sandy said these roofs are: not regular because a hatch opens up where they can pull the pump out of the well in the middle of that roof, It's just like putting a roof on a shed. Gary said he was waiting on one quote for the fence and called two other people he has not heard back from. He said that was the problem up here, and the people at the grant place say the same thing. Part of the bidding process is you have to have 80 many quotes, but you can't get anyone to call you back. And after Helene, it seems to be even worse. He said that's why we use Iron Mountain: when he calls them, they show up. Mayor Roberts apologizes because he feels he keeps going down the same. rabbit hole. He asked f anybody at the place demanded we spend this money on these specific things. Is there aj person we can talk to and say, hey, we get it, but we. are also told this is for our water and sewage? Our sewage issue is more important to us right now than the lead lining ofs some pipes. Sandy said the board approved that contract long before she got here, sO we are under contract to finish that, and you can't stop it. Gary said Bill should have had the board sign those early last year. Those contracts were sent out and bid on. They came in here, opened the bid, and awarded the contract. The sewer line cleaning, camering, and manhole rehabilitation is a done deal. Alderman Johnson said that was the most important at the time. Ms. Angrisani asked if the overall top number was 3.2 million, and right now, we're talking about something that's projected at 2 million but may come in a little bit less. Sandy said yes. Ms. Angrisani said these are floating numbers because we've already had expenses that the Town has advanced and paid to fix something in the instant. And now they're waiting for reimbursement or taken reimbursement from ARPA, sO we're not starting at: 3.2; we: might be starting at a random number below that, right? Sandy said yes, you have the 3.2 and subtract the 2 million that has already been awarded to those two contracts. Now you have a million left, which is your number to work at. Ms. Angrisani asked if you have to come up with projects then. Sandy said you come up with projects moving forward that must be approved. Ms. Angrisani asked ifGary had a list of projects that he believes are our priorities. Gary said he would discuss his frustration after the meeting. POLICE REPORT Chief Fields gave the police report stating his department had a total of554 calls for the month of] March. Notable calls included five arrests, four motor vehicle accidents, 36 traffic stops, five investigations, sixteen requests to assist other agencies, two reports of property damage, and one report ofbreaking and entering. Officer Isaacs attended intox recertification for DWI charges. Chief said he completed the DCI audit last week, which the SBI requires. The breaking and entering in Town was at the storage units behind the credit union. One gentleman had twelve weed eaters and three or four chainsaws that were stolen. They have located some ofhis equipment, but not all ofit, and it is an ongoing process. He said they were trying to backtrack from where they found the other items and work back to who actually broke in and stole the stuff. Chief said he and Sandy will apply for a couple of grants this week. He said it was for equipment he believes the department will need and could have used during Helene but didn't have. Another grant is from the Firehouse Subs Foundation, and the other is through the High-Country Charitable Foundation. He said he was looking at his list and had $6,000 worth of stuff that he wanted to ask them for. It is another question whether we get it or not, but he will submit thej paperwork and see what they say, Alderman Johnson asked how the situation with the campers walking through Town was going. Chief said he took one to jail on Sunday morning because he wouldn't stay out of the road. He warned him two or three times and told him he could walk on the sidewalk, but he couldn't walk in the road. He finally saw him step out and almost get hit by a truck, and Chief said that was enough and took him toj jail. Chief said he walked behind Hardee's, which he believes is considered part of Shomaker Park and is across the river where there is a field. He said he walked that property to ensure nobody was camping over there and didn'ts see anybody or look like anybody had been there. There is a trail behind Kenny's house that comes back into Town behind Mike Lacey's property, and he walked that on Sunday and didn't come across anything. He said there is a house right outside Town limits where they are all staying. Vicki Caraway asked ifit was where the two campers were, and Chief said yes, it's next to the Tweetsie pump station. He said it was right here in Town but, technically, outside of our jurisdiction. That's why you continue to see them walking in and out ofTown. They are walking to the mobile home park on Old Vale, and Chief said they have been up there several times. He said there was an abandoned house at the top, and nobody should be living in it. He and his officers have been in that house several times but have yet to catch anyone actually inside the house, but they have moved into a camper right in front of the house. There is a tent somebody has set beside the house, but Chief said he wasn't: sure if they were living in it anymore since they got the camper. Gary said that was one thing they requested in the letter was for the abandoned house to be removed. Kenny Caraway said they are always walking on Old Vale Road. Mayor Roberts asked him ifthere was a camper taking a nap in the middle of the road one day. Mr. Caraway said yes, he thought he had been hit by a car or something because there was a bicycle there and he was lying there. He said he jumped out and asked ifhe needed first aid, and he said, no, Ijust got tired and thought] I would sleep a while. Mr. Caraway said he dragged the bicycle out oft the road and tried to get him up, and he finally crawled to the edge of the pavement. He said he went through a fifteen-minute fiasco with dispatch to get them to call Michael and send him out, and he took over from there. Chief said that when he got there, medics came and checked out the individual, and they said nothing was wrong with him. Chief told him he couldn't lie down and sleep wherever he wanted. He told him if they caught him on somebody's property for whatever reason and they didn't say you could be, he was going tojail. The State ofl North Carolina passed a new law by adding a subsection that states that if anyone is on the curtilage of your property or walks through your yard after a certain time at night, it's trespassing, and they go to. jail. Ms. Angrisani said the Town has sent a letter to the owner of this property saying they are creating a place where crimes can be committed. Mayor Roberts asked ifs she was talking about the house across from Dr. Jewell's, and she said no, this is a different house. She asked if the abandoned house was owned by someone where everyone was camping. Chief said he had spoken to Mr. Caraway since he knows quite a bit about that property and the property owners. He has talked to the property owners, and it's the same deal we had on Bird Street; nobody kuows who owns it, Ms. Angrisani said all the State cares about is who's name is on the tax scroll. Chief said, if he's not mistaken, it says it belongs to the property owner, Equivest. They swear the house didn't come with the property when they bought it. Alderman Johnson asked if we had a letter saying they had denied the property. Chief said no, it was, just from talking to them. Alderman Johnson asked Chief to see if they would send a letter saying they do not own the house, and then he said he believed we could take control ofi it. Ms. Angrisani said ifiti is a freestanding structure, then it is real property, sO there have to be County tax records. She asked ifthe County tax records indicated that it belonged to Equivest. Gary said thej property does. Chief said he spoke to the gentleman who was at the last board meeting and owns several of thei mobile homes there. He said that when he first started here nine years ago, the gentleman's mom lived there, and he said that it belonged to the property owner. Alderman Johnson asked if it was within town limits, and Chief said yes. Attorney McKinney asked if we could abate it as a nuisance. Chief said ALEI has a team, and all they do is nuisance abatement. They were in Town about a year ago, and he took them around the whole Town and showed them several properties. They told Chief there isn't anything they can do as far as nuisance abatement goes unless we can prove they are: running an enterprise or perpetuating crime. Ms. Angrisani said it pushes it back to us, and then we would have to hire an attorney to fight deprivation. According to Avery G.I.S., Mayor Roberts said that 4.92 acres are owned by Newland Mobile Home Park Platinum III out of] Blairsville, Georgia. Sandy said that was Equivest. Mr. Caraway said he could sit in his backyard and watch people crawling in and out from under the house. Ms. Angrisani said it takes your property value down, and 4.92 acres is a lot ofland. Mr. Caraway said it had been empty for a while, and from what he could see from his driveway, it looked like there were twenty or thirty trash bags piled up, and you couldn't get in the door. He said the same crew was living in the camper, and the old house was moving back into the drug house, as we call it. Ms. Angrisani asked if that camper was hooked up to water and sewer. Chief said a camper has been up there longer than he has worked here, and it is hooked up to water. Ms. Angrisani said we have a travel trailer with 900 birds in it parked halfway into the alleyway up here with a hose hooked up to it and no way to dispose of waste. Sandy said it was parked at High Country Polaris. She went to speak to the owner, and they told her they were, going to move it inside the lot because she reminded them that it had to be ten feet off the street because we had a setback. Gary said they may have moved it six inches inside the lot. Ms. Angrisani said that even if they put it in the lot, how would they empty the sewage? Sandy said he told her he would hook it up to the sewer. Gary said he would run a hose and stick it in the bathroom drain. Ms. Angrisani said she didn't understand why that individual believed he could inflict that type oft behavior on the: rest of us. Mr. Caraway told the board that until they make some decisions and say they have ten days to fix this, we will turn your water off1 like you did at Church's mobile home park because that got somebody's attention. Gary said he was sure the letter stated that any inhabitable trailers or houses were to be torn down, removed, or repaired. Sandy asked if we could have a workshop to discuss campers' need to go to a campground. They don't: need to be in a trailer park. They don't need to sit in the middle of a commercial property. If they're campers, they need to go to a campground. Ms. Caraway said she believes the newest camper in there was donated after Helene, but there was no flood damage in the mobile home park. Chief asked which camper she was talking about, and she said it was the newest camper they were living in. Sandy said on the 28th of February, she sent a text from the town work phone to tell Ms. Spencer Turbyfill that since Ms, Kim Robertson's mobile home was going to be moved behind Braswell Realty, that she was not to fill that spot with a tent, camper, house, or any residence, and shel has. Sandy said she saw Spencer today when she came in to pay her utility and tax bill, and Sandy told her to move it. Sandy said she didn't realize that somebody had put up this crazy black plastic fence around this other trailer that someone had moved in there after Helene. Helene was horrible for our community, but campers need to go to a campground. Ms. Angrisani said she thought we discussed the board considering different types of exceptions. They would give people who were forced out a timeline that would allow them to stay in this temporary space, with the expectation that they would have an opportunity to find a more permanent space, She understands we have challenges and setbacks with this existing community, but it's some level of something. She said it's not that she doesn't have compassion, but the problem is that the people who need it are using it appropriately. Then, some people are taking advantage ofit. She said there are trailers that we don't know if they are connected to any sewage system. People are dropping off trailers in places that are. not necessary, and we never thought we'd have to face what is a pushback into the regular community. Gary said Kim's trailer would have fallen under that exception, and she could put a new one in. All bets are off once her trailer is not returning to that spot. There wasn't anything going back in there because she moved it. Alderman Johnson asked if Spencer was going to move the camper that was in that spot now, and Sandy said Spençer was going to tell the person they needed to move it. Sandy told Spencer that ifit weren't moved by the weekend, we would have South Ridge Towing tow it out. Sandy asked Attorney McKinney if she could have the camper towed out legally. He said you probably couldn't do it without giving some right to a hearing would be his guess. Sandy asked what type of hearing, like coming in front of the board at the next meeting. He said he would have to let her know. Alderman Hughes said she thought some of it was to be before Sandy, and: if she wants to appeal, it comes before the board. Ms. Angrisani said, going back to this travel trailer with a water. hose hooked up from High Country Polaris, that it's about twelve inches outside the edge of the parking garage at Hardees Alley. She said she would love to take a referendum and vote something else in because Hardees hasn't been on that alleyway since I was a child. It's hooked up to a water line, and then the black line, as Sandy calls it, is where raw sewage comes out and drips onto the street. Mayor Roberts said he was going down the brother Kenny road. Tell them they have until this date, give them seven days, I wouldn't give them ten, and call South Ridge ifiti isn't moved. Ms. Angrisani said she was fine with that, but the problem is he told Sandy that he would take it, put it inside his lot, and hook it up there. Once it's inside that car and the U-Haul lot where he stores his cars and vehicles, what is our ability to reach into that? She wasn't sure if we could cross into private property. Alderman Johnson and Dream Hayes said you can tow it out if there is raw sewage. Sandy said she told him to put a cap on it. Attorney McKinney said he was the attorney for the Health Department forever, and when people dump raw sewage, they can get an order to stop it. However, Ms. Angrisani said she didn't think they were. half as interested in enforcing that because we'd been down this route before. Mayor Roberts said yes, we had a whole meeting about this. Thel Health Department told them to show them the pictures that Michael, Bill, and others had taken, and they showed them from a year ago. She said at this point in time, the only thing we do is call DEQ and have them come in and look at all ofus. The LGC and everything else that goes in when we are inviting outside governançe into this place. She asked if there was an opportunity that you could pass some basic ordinances that say, I don't care what you have; you either have a plan that you can show anybody who wants to come in if you're having this pumped out weekly. Gary said number one, a street goes down between the buildings, and then you have Hardee's Alley. One way or another, that camper is sitting in the right-a-way. Mayor Roberts said he believes this guy is crafty enough that he: is going to move all of his stuff and tucki it up against the building. Sandy said he also told her about his taxes when he came to bully! her in the office and that he would pay them when he felt like it. Ms. Angrisani said this is not a person who is in the cooperative spirit of what we are trying to achieve in the Town. Attorney McKinney said we can pass an ordinance that will stop it. Ms. Angrisani said there is no grandfathering, and if you need something, you can apply for an exemption. Attorney McKinney said we could define, regulate, prohibit, and abate missions or conditions detrimental to our citizens' health, safety, or welfare. He said with the health part, he believes we. have it. It will take a minute to get an ordinance drafted, but we can draft one, which means it is a health hazard to the Town's citizens ifsomeone is on private property. Donetta McKinney said that in Elizabethan, an ordinançe gave campers a time limit for how long they could be on a property. For example, in Mike's campground, you're not allowed to leave campers there unoccupied for a certain period of time. She said until we enforce something like this, our' Town is going down the tombs every day. MPT Haller said there is one that has been on Banner Hill for years. Sandy said shel heard that one was getting ready to be gone. Ms. Angrisani said that if someone came to the Town or you knew of someone who had a home destroyed, these are not people in a position where they are legitimately using what we as a Town would likely support. They are putting a trailer in because they have to demolish their home, take it down to the foundation, and rebuild it sO that it will be six months at a hotel. Those things would be considered exceptions and sO moderate that she believes there would be time to look at these exceptions and bring them before the board. Mayor Roberts asked Attorney McKinney if he could have something typed up for the next board meeting. Kenny Caraway said ifyou look back over the years and all the things that were put off until the next board meeting. Sandy told him not to point fingers because he had also been on the board for several years. Ms. Angrisani said if Attorney McKinney is able to draft this, does the board have to wait a whole month to decide and vote on it? Mayor Roberts verified with Sandy that they were still doing the budget workshop on Wednesday, April 16th, and she said yes. He asked ifwe could add this to the workshop if Attorney McKinney could have something typed up. Sandy asked Jessica if she would verify we could do that at a workshop. Mayor Roberts asked Attorney McKinney if we could do it at a workshop. He said we needed to advertise for a special meeting to enact an ordinance about abating nuisances. Mayor Roberts asked if we could discuss our current ordinance about changing fines and fees for other things as well. Our Town Manager told him the fine for having junk cars in your yard is $50, period, and that's it. Sandy said our ordinances do not state anything different than the State statute. On our water and wastewater side, we have it written in our ordinance that the theory is a violation of one hundred dollars a day. We didn't do that under the nuisance side. Attorney McKinney brought copies of a state statute to everyone, saying it would let us go and take thej junk cars and offer them for sale or destroy them under certain conditions. Sandy said you have to apply it citizen-wide and not just to one particular citizen. Mayor Roberts said none of this would be an issue if we had followed through with something with $85,000 for a planning board. Alderman Hughes asked if they couldn't read the room, and everybody that was here was against it. Mayor Roberts said everyone who was against it was from out ofTown, and several people disagreed. Ms. Angrisani said we bought that paperwork, and if we wanted to revisit it in sections, we should. As a town, we should seriously ask you, as the Board, to revisit thej paperwork we bought. Let's find a way to make up a group that represents the citizenry. She said she owns property in Town but is not here full-time, sO she is not the person. There are people here that care a lot. We don'thave to do a lot of groundwork, and we can apply a lot more common sense than what we're going to call the widest of the rules. The widest oft the: rules is not what we were recommending or what we all thought would be a great idea. However, if we don't start from the beginning and take the really important ones, then it isn't worth anything. She believes most people here would be more: interested in not having a ton ofrules but in having a ton ofrules that stop this silliness. We all agree that raw sewage, people parking too many cars, and all that other junk ruin the Town's quality. FINANCE OFFICER / TOWN MANAGER REPORT Sandy said the sales and use tax for February is estimated at 38,100, a decrease of$3,000 for last month but an increase of$3,000 from February 2024, Our tax collection rate is currently at 92.87%. Jessica sent out reminder letters to citizens with past-due taxes for 2024, Right now, we. have forty-two tax accounts totaling $32,044 that have not been paid and will be advertised by name and dollar amount in the Avery. Journal 011 4-16-25. Sandy said she gave the board an information sheet for occupancy taxes. She went to the High-Country Tourism Development meeting, there were several different counties and cities around the area, and she got some great information there. She went back and did some more: research and: found that the State memorandum shows everything included in our occupancy tax. It's almost everything except for DVDs when you rent al hotel room. She emailed the County on March 27th about the Shook house on Summer Haven Street and asked what the status was. Their reply was, sorry, we let it drop through the cracks. They haven't checked with the attorney but will try to get an answer. Mayor Roberts asked about the trailer, and Sandy said all the paperwork had been turned in tol FEMA. She did that at Crossnore in their debris tech room there, SO it's in the works. They told her six to eight weeks from when she turned it in; it's probably been three. Mayor Roberts asked Sandy if she would include him in her next email about the Shook house, and she said yes. Gary thanked Attorney McKinney and Donetta for whoever they got to clean the tree up on Sokassa. He spent the day getting three other trees up after he saw that one was passable. CITIZEN COMMENTS With all our churches, Nancy Davis asked if they could get some groups together and have a few clean-up days if they don't have to pay property taxes. Alderman Hughes said there have been several clean-up days. Ms. Davis said she has not been here since January and couldn't tell a difference. Gary said thel Riverwalk was clean until they cleaned up the waterway. Ms. Davis asked if there was power at the bandstand, and Gary said he hadn't checked. Ms. Angrisani said there is power on the light poles because she has to call Mountain Electric and tell them they have the lights going back into the side ofher house. She said she doesn't understand why Mountain Electric owns the pole, but the Town pays the bill, Gary said the power is off to the streetlights over at the bandstand. Ms. Angrisani noted that the prior administration had a light put up because people would sleep in the park, and the light shone throughout the night. Sandy asked if she was talking about where the gazebo used to be, and she said yes. COUNCIL COMMENTS Alderman Foxx thanked everyone for being here tonight. Mayor Roberts said Dale Benfield from the Fire Department contacted him and asked ifthey could use some of our land beside their department for all the Conex boxes they have. Mr. Benfield has assured the Town they will grade and take care of it. Alderman Johnson said there is a piece there that is not ours and belongs to the county, so he would have to get permission from them. Sandy said we would check GIS tomorrow to make sure who it belongs to. Gary said it was the County of Avery's lot. Alderman Johnson made a motion to go into a closed session referencing personnel. MPT Haller seconded the motion. All agreed by a show ofhands and stating aye. CLOSED SESSION - PERSONNEL Let the records show no action was taken during the closed session. ADJOURNMENT Alderman Foxx motioned to adjourn the meeting. Mayor Pro Tem Haller seconded the motion. Meeting adjourned at 8:15 PM. 53 4ovies Buchanan Town Clerk, Jessica Buchanan Mayor, Derek Roberts - o RESOLUTION OF TENTATIVE AWARD WHEREAS, the Town of Newland, North Carolina has received bids, pursuant to duly advertisement notice therefore, for construction of the Town of Newland-Sewer Rehabilitation Project = Contract #1 = Main Inspection and Relining Project, and WHEREAS, Mack Gay Associates, PA, Consulting Engineers have reviewed the bids and prepared a certified bid tabulation that is included as a part of this resolution, and WHEREAS, Tri State Utilities was the lowest bidder for the Town of Newland-Sewer Rehabilitation Project = Contract #1 - Main Inspection and Relining Project, in the total bid amount of One Million, Five Thousand Dollars ($1,005,000), and WHEREAS, the consulting Engineers recommend TENTATIVE AWARD to the lowest bidder(s). NOW, THEREFORE, BE IT RESOLVED that TENTATIVE AWARD is made to the owest bidder(s) in the Total Bid Amount of One Million, Five Thousand Dollars ($1,005,000), BE IT FURTHER RESOLVED that such TENTATIVE AWARD be contingent upon the approval of the North Carolina Department of Environmental Quality. Adopted this the 1st day of April, 2025. a VOTE: Aye 4 Nay Aldecman Oave Calvert (absent) This is the 1st day of April, 2025. Derek A. Roberts, Mayor Seal: SEAL 6 a PIHCARS Attest: Gonica Buehonor Jéssica Buchanan, Town Clerk THCAR RESOLUTION OF TENTATIVE AWARD WHEREAS, the Town of Newland, North Carolina has received bids, pursuant to duly advertisement notice therefore, for construction of the Town of Newland-Sewer Rehabilitation Project - Contract #2 - Manhole Relining and Rehabilitation Project, and WHEREAS Mack Gay Associates, PA, Consulting Engineers have reviewed the bids and prepared a certified bid tabulation that is included as a part of this resolution, and WHEREAS, STEP Construction, Inc was the lowest bidder for the Town of Newland-Sewer Rehabilltation Project - Contract #2 - Manhole Relining and Rehabilitation Project, in the total bid amount of Five Hundred Seventy-Five Thousand, One Hundred Seventy-Five Dollars ($575,175), and WHEREAS the consulting Engineers recommend TENTATIVE AWARD to the lowest bidder(s). NOW, THEREFORE, BE IT RESOLVED that TENTATIVE AWARD is made to the lowest bidder(s) in the Total Bid Amount of Five Hundred Seventy-Five Thousand, One Hundred Seventy- Five Dollars ($575,175). BE IT FURTHER RESOLVED that such TENTATIVE AWARD be contingent upon the approval of the North Carolina Department of Environmental Quality. Adopted this the 1st day of April, 2025. Dave Calvert Alderman VOTE: Aye - Nay 0 Cabsen-) Derek A. Roberts, Mayor Seal: J BEAL Attest: MORTHICA Gunica Buchoner Jéssica Buchanan, Town Clerk JORADE RESOLUTION BY the BOARD OF ALDERMEN OF THE TOWN OF NEWLAND WHEREAS, The Town of Newland has need for and intends to construct, plan for, or conduct a study in a project described as Tweetsie Lift Station Rehabilitation and Improvements, and WHEREAS, The Town of Newland intends to request State loan and/or grant assistance for the project, NOW THEREFORE BE IT RESOLVED, BY THE BOARD OF ALDERMEN OF THE TOWN OF NEWLAND: That Town of Newland, the Applicant, will arrange financing for all the remaining costs of the project, if approved for a State loan and/or grant award. That the Applicant will provide for efficient operation and maintenance of the project on completion of construction thereof. That the Applicant will adopt and place into effect on or before completion of the project a schedule of fees and charges and other available funds which will provide adequate funds for proper operation, maintenance, and administration of the system and the repayment of all principal and interest on the debt. That the governing body of the Applicant agrees to include in the loan agreement a provision authorizing the State Treasurer, upon failure of the Town of Newland to make a scheduled repayment of the loan, to withhold from the Town of Newland any State funds that would otherwise be distributed to the local government unit in an amount sufficient to pay all sums then due and payable to the State as a repayment of the loan. That Mayor Derek Roberts, the Authorized Representative and successors SO titled, is hereby authorized to execute and file an application on behalf of the Applicant with the State of North Carolina for a loan and/or grant to aid in the study of or construction of the project described above. That the Authorized Representative, and successors SO titled, is hereby authorized and directed to furnish such information as the appropriate State agency may request in connection with such application or the project: to make the assurances as contained above; and to execute such other documents as may be required in connection with the application. That the Applicant has substantially complied or will substantially comply with all Federal, State, and local laws, rules, regulations, ordinances, and funding conditions applicable to the project and to Federal and State grants and loans pertaining thereto. This is the 1st day of April, 2025. VOTE: Aye 4 Nay 0 Aldecman Dave Calvert (absent) Derek A. Roberts, Mayor FORM FOR CERTIFICATION BY THE RECORDING OFFICER The undersigned duly qualified and acting Town Clerk of the Town of Newland does hereby certify: That the above attached resolution is a true and correct copy oft the resolution authorizing the filing of an application with the State of North Carolina, as regularly adopted at a legally convened meeting of Board of Aldermen duly held on this 1st day of April 2025; and, further, that such resolution has been fully recorded in the journal of proceedings and records in my office. IN WITNESS WHEREOF, - - have hereunto set my hand this 1st day of April 2025. Gonice Buchowor Jéssica Buchanan, Town Clerk HCAR RESOLUTION TO ENACT A PROGRAM INCOME POLICY FOR ARPA GRANTS WHEREAS, The Town of Newland has received an allocation of funds from the Coronavirus "State Fiscal Recovery Fund" or "Coronavirus Local Fiscal Recovery Fund" (together "CSLFRF") established pursuant to Sections 602 and 603 of the Social Security Act, as added by Section 9901 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 ("ARPA"). WHEREAS, The Town shall comply with the terms of ARPA, and the U.S. Department of Treasury's ("Treasury") federal regulations governing the spending of CSLFRF funds, including the Final Rule, and Treasury's regulations governing expenditures of CSLFRF funds, including the Award Terms and Conditions, Compliance and Reporting Guidance for the State and Local Fiscal Recovery Funds (together the "Federal regulations"), and any additional guidance Treasury has issued or may issue governing the spending of CSLFRF funds. WHEREAS, The Town shall comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 C.F.R. Part S 200 (the "Uniform Guidance");a and WHEREAS, The Town shall account for program income per the requirements set forth in the Uniform Guidance, including, but not limited to, 2 C.F.R. S 200.307, and as stipulated in Compliance and Reporting Guidance for the State and Local Recovery Funds, which provides: "Recipients of CSLFRF funds should calculate, document, and record the organization's program income. Additional controls that your organization should implement include written policies that explicitly identify appropriate allocation methods, accounting standards and principles, compliance monitoring checks for program income calculations, and records.' "1 NOW, THEREFORE, BE IT RESOLVED, That the governing board of The Town of Newland hereby adopts and enacts the following policies and procedures for the use of program income earned from the expenditure of CSLFRF funds pursuant to the ARP/CSLFRF award. Adopted this the 1st day of April, 2025. L4 0 VOTE: Aye Nay Alderman Dave Calvert (absen+) Derek A. Roberts, Mayor Attest: Genica Bucharon Jéssica Buchanan, Town Clerk PROGRAM INCOME POLICY I. PURPOSE AND SCOPE The Town of Newland enacts the following procedures for its use of program income earned from the expenditure of CSLFRF funds to ensure compliance with the Uniform Guidance, including, but not limited to, 2 C.F.R. S 200.307, the ARP/CSLFRF award, and all applicable Federal regulations governing the use of program income. The Town, hereafter "UNIT", agrees to administer program income according to the requirements set forth in this policy and as required by the Federal regulations and State law. The responsibility for following this policy lies with Board of Aldermen and the Town Manager, who are charged with the administration and financial oversight of the ARP/CSLFRF award. Questions on the use and/or reporting of program income should be directed to Town Manager. II. DEFINITIONS2 a. ARP/CLSFRF award means the Federal program governing the use of Coronavirus State and Local Fiscal Recovery Funds as provided in the Assistance Listing and as administered by the U.S. Department of Treasury pursuant to the American Rescue Plan Act of 2021 ("ARPA"), Pub. L. No. 117-2 (Mar. 11, 2021). b. CSLFRF funds means the portion of Federal financial assistance from the Coronavirus State Fiscal Recovery Funds and Coronavirus Local Fiscal Recovery Funds (collectively "CSLFRF") awarded to the Town pursuant ARPA. C. Federal award means the Federal financial assistance that a recipient receives directly from a Federal awarding agency or indirectly from a pass-through entity, as described in S 200.101, The Federal award is the instrument setting forth the terms and conditions of the grant agreement, cooperative agreement, or other agreement for assistance. d. Federal awarding agency means the Federal agency that provides a Federal award directly to a non-Federal entity. e. Federal financial assistance means the assistance that non-Federal entities receive or administer in the form of grants, cooperative agreements, non-cash contributions, direct appropriations, food commodities, or other financial assistance, including loans. f. Federal program means all Federal awards which are assigned a single Assistance Listings Number. g. Non-Federal entity means a State, local government, Indian tribe, Institution of Higher Education (IHE), or nonprofit organization that carries out a Federal award as a recipient or subrecipient. h. Period of performance means the total estimated time interval between the start of an initial Federal award and the planned end date, which may include one or more funded portions, or budget periods. The period of performance for the ARP/CSLFRF award ends December 31, 2026. 1 Compliance and Reporting Guidance, p. 9. 2E Excluding the first two, the definitions in this section are found in 2 C.F.R. 200.1. 2 i. Program income means gross income earned by the non-Federal entity that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance except as provided in 55 200.307(f). I. PROGRAM NCOME OVERVIEW For purposes oft this policy, program income is the gross income earned by the Town that is directly generated by a supported activity or earned as a result of the ARP/CSLFRF award during the period of performance, which closes December 31, 2026. 2 CFR 200.1. Program income includes, but is not limited to, the following sources ofi income: The collection of fees for services performed. Payments for the use or rental of real or personal property. The sale of commodities or items fabricated under the Federal award. The payment of principal and interest on loans made under the Federal award. Program income does not include fees or revenue from the following: The use of rebates, credits, discounts, and interest earned on any of them. Governmental revenues, such as taxes, special assessments, levies, or fines. Proceeds from the sale of real property, equipment, or supplies.3 IV. USE OF PROGRAM NCOME 2C.F.R. S 200.307(e) sets forth three methods for how program income may be used: the deduction method, the addition method, and the cost sharing/matching method. Treasury has indicated that program income earned pursuant to expenditures of CSLFRF shall be accounted for pursuant to the addition method 2C.F.R. S 200.307(e). The Town agrees to add program income to the total award amount and expend it on eligible projects during the period of performance. V. REPAYMENT OF PRINCIPAL AND INTEREST ON LOANS MADE WITH ARP/CSLFRF FUNDS Treasury has imposed different requirements on loans of CSLFRF funds under the revenue loss category and loans of CSLFRF under other expenditure categories. The Town agrees to appropriately account for the repayment of loaned CSLFRF funds according to the ARP/CSLFRF award terms, as follows: 32 C.F.R. 200.1 and 2 C.F.R. 200.307 each define and limit the sources of program income. 4 Treasury updated its guidance on 4/27/2022 to clarify that the addition method applies to all program income generated from the ARP/CSLFRF award expenditures. The addition method allows units to spend program income on any other ARP-eligible project. See FAQ 13.11. 3 (1) Loans made under the revenue loss eligibility category. Loans of CSLFRF funds under the revenue loss eligibility category may be considered to be expended at the point of disbursement to the borrower, and repayments on such loans are not subject to program income requirements.: 5 Accordingly, the Town shall not separately account for the repayment of principal and interest on loans of CSLFRF under the revenue loss eligibility category. (2) Non-revenue loss loans (i.e., loans made under the public health emergency/negative economic impacts category and/or the neçessary water, sewer, and broadband infrastructure category) a. Loans that mature or are forgiven on or before December 31, 2026: The Town shall add the repayment of principal and interest (program income) to the ARP/CSLFRF award pursuant to 2 C.F.R. 200.317(e)(2). When the loan is made, the Town shall report the principal of the loan as an expense. The Town shall expend the repayment of principal only on eligible uses and is subject to restrictions on the timing of the use of ARP/CSLFRF funds pursuant to the ARP/CSLFRF award. b. Loans with maturities longer than December 31, 2026: The Town is not required to separately account for the repayment of principal and interest on loans of CSLFRF with maturities after the ARP/CSLFRF award's period of performance. The Town shall expend ARP/CSLFRF funds for only the projected cost of the loan. The Town shall project the cost of the loan by estimating the subsidy cost according to one oft the calculation methods outlined in Treasury's Final Rule FAQs, question 4.9 (updated 4/27/22). (3) Contributions to revolving loan funds: The Town may contribute funds to a revolving loan fund if the loaned SLFRF funds are restricted to financing eligible uses. The amount of CSLFRF funds contributed to a revolving loan fund must be limited to the projected cost of loans made over the life of the revolving loan fund, following the approach described above for loans with maturities longer than December 31, 2026. a. Any contribution of CSLFRF revenue loss funds to a revolving loan fund shall follow the approach of loans funded under the revenue loss eligible use category outlined in Section V, paragraph 1.6 VI. ALLOCATION OF PROGRAM INCOME The Town shall only expend program income on costs that are reasonable, allocable, and allowable under the terms of the ARP/CSLFRF award.71 To adhere to these requirements, the Town shall comply with the cost principles included in 2 C.F.R. S 200, as outlined in the Town's Allowable Costs and Cost Principles policy. The Town shall allocate program income to the ARP/CSLFRF award in proportion to the pro rata share of the total funding (e.g., if CSLFRF funds cover half of a project's cost, with general 55 Final Rule FAQ4.9, 6 Id. 72 C.F.R. S S 200.404, 408. 4 revenue covering the other half, the unit shall allocate 50% of any program income earned to the ARP/CSLFRF award and account for its use pursuant to 5 200.307). VII. ADDITIONAL PROGRAM INCOME REQUIREMENTS (a) Identifying, Documenting, Reporting, and Tracking. To ensure compliance with the requirements of program income as outlined by the Federal regulations, the terms and conditions of the ASP/CSLFRF award, and the requirements set forth herein, each department shall identify potential sources of program income and properly report the program income for the period in which it was earned and dispersed. Program income shall be accounted for separately. The Town shall not comingle program income earned from programs supported by ARP/CSLFRF funds with the general award of ARP/CSLFRF funds the Town received from Treasury. Any costs associated with generating program income revenue shall be charged as expenditures to the ARP/CSLFRF award. (b) Program Income Earned After the Period of Performance. The Town shall have no obligation to report program income earned after the period of performance (December 31, 2026). However, the Town shall report program income expended after the period of performance if that program income was earned on or before December 31, 2026. (c) Subawards. The Town agrees to ensure that any subrecipient of ARP/CSLFRF funds abides by the award of the terms and conditions of this policy and is aware that the subrecipient is responsible for accounting for and reporting program income to the Town on a monthly basis. (d) Compliance with State law. Program income shall not be expended for purposes prohibited under State law. (e) Subject to Audit. The Town recognizes that its use of program income may be audited and reviewed for compliance with Federal laws and regulations, State law, and the terms of the ARP/CSLFRF award. VIII. IMPLEMENTATION OF POLICY The Finance Officer will adopt procedures to identify potential program income during the project eligibility and allowable cost review, document actual program income, and follow the requirements in this policy related to the treatment of program income. Adopted this the 1st day of April 2025. 5 RESOLUTION TO ENACT SUBAWARD & MONITORING POLICY FOR ARPA GRANTS WHEREAS the Town of Newland, has received an allocation of funds from the Coronavirus State and Local Fiscal Recovery Funds of H.R. 1319 American Rescue Plan Act of 2021 (ARP/CSLFRF); and WHEREAS the funds may be used for projects within these categories, to the extent authorized by state law. 1. Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; 2. Address negative economic impacts caused by the public health emergency, including economic harm to workers, households, small businesses, impacted industries, and the public sector; 3. Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; 4. Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and, 5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet; and WHEREAS the ARP/CSLFRF are subject to the provisions of the federal Uniform Grant Guidance, 2 CFR Part 200 (UG), as provided in the Assistance Listing (21.027); and WHEREAS the ARP/CSLFRF authorizes the Town of Newland to enter subaward agreements with subrecipients to assist the Town of Newland to carry out the terms of the ARP/CSLFRF; and WHEREAS if the Town of Newland enters into a subaward as a subrecipient, it acts as a pass-through entity, as described in 2 CFR 200.1; and WHEREAS the Compliance and Reporting Guidance for the State and Local Fiscal Recovery Funds (v.3.0 February 2022) provides, in relevant part: Subrecipient Monitoring. SLFRF recipients that are pass-through entities as described under 2 CFR 200.1 are required to manage and monitor their subrecipients to ensure compliance with requirements of the SLFRF award pursuant to 2 CFR 200.332 regarding requirements for pass- through entities. First, your organization must clearly identify to the subrecipient: (1) that the award is a subaward of SLFRF funds; (2) any and all compliance requirements for use of SLFRF funds; and (3) any and all reporting requirements for expenditures of SLFRF funds. Next, your organization will need to evaluate each subrecipient's risk of noncompliance based on a set of common factors. These risk assessments may include factors such as prior experience in managing Federal funds, previous audits, personnel, and policies or procedures for award 1 of40 execution and oversight. Ongoing monitoring of any given subrecipient should reflect its assessed risk and include monitoring, identification of deficiencies, and follow-up to ensure appropriate remediation. Accordingly, your organization should develop written policies and procedures for subrecipient monitoring and risk assessment and maintain records of all award agreements identifying or otherwise documenting subrecipients' compliance obligations. Recipients should note that non-entitlement units of local government (NEUS) are not subrecipients under the SLFRF program. They are SLFRF recipients that will report directly to Treasury. Recipients should also note that subrecipients do not include individuals and organizations that received SLFRF funds as end users to respond to the negative economic impacts of COVID-19 on these organizations. Such individuals and organizations are beneficiaries and not subject to audit pursuant to the Single Audit Act and 2 C.F.R, Part 200, Subpart F. Separately or in addition, many recipients may choose to provide a subaward (e.g., via contract or grant) to other entities to provide services to other end - users. For example, a recipient may provide a grant to a nonprofit to provide homeless services to individuals experiencing homelessness. In this case, the subaward to a nonprofit is based on the services that the Recipient intends to provide, assistance to households experiencing homelessness, and the nonprofit is serving as the subrecipient, providing services on behalf of the recipient. Subrecipients are subject to audit pursuant to the Single Audit Act and 2 CFR part 200, subpart F regarding audit requirements; and WHEREAS Subpart D oft the UG dictates subrecipient and award requirements for expenditure of [ARP/CSLFRF funds; and WHEREAS 2 CFR 200.332 states that: All pass-through entities must: (a) Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the required information at the time of the subaward, When some of the required information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. (b) Evaluate each subrecipient's risk of noncompliance with Federal statues, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring. (c) Consider imposing specific subaward conditions upon a subrecipient if appropriate as described by 2 CFR 200.208. (d) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statues, regulations, and the terms and conditions of the subaward; and that subaward performance, goals are achieved. (e) Depending upon the pass-through entity's assessment of risk posed by the subrecipient, monitoring tools may be useful for the pass-through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals. (f) Verify that every subrecipient is audited as required by [2 CFR 200, Subpart F] when it is expected that the subrecipient's Federal awards expended during the 2of40 respective fiscal year equaled or exceeded the threshold set forth in 2 CFR 200.501. (g) Consider whether the results of the subrecipient's audits, on-site reviews, or other monitoring indicate conditions that necessitate adjustments to the pass- through entity's own records. (h) Consider taking enforcement action against noncompliant subrecipients as described in 2 CFR 200.339 and in program regulations. NOW, THEREFORE, BE IT RESOLVED that the governing board of Town of Newland hereby adopts and enacts the following Subaward and Monitoring Policy for the expenditure of ARP/CSLFRF funds. Adopted this the 1st day of April, 2025. 4 VOTE: Aye Nay Alderman Dave Calvert (absent) Derék A. Roberts, Mayor Attest: Guics Bwhonon Jéssica Buchanan, Town Clerk 30 of40 SUBAWARD AND MONITORING POLICY FOR EXPENDITURE OF AMERICAN RESCUE PLAN ACT OF 2021 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS I. POLICY OVERVIEW Title 2 U.S. Code of Federal Regulations Part 200, (2 CFR 200) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly called Uniform Guidance (UG), specifically Subpart D, defines requirements of pass-through entities initiating subaward agreements with Coronavirus State and Local Fiscal Recovery Funds of H.R. 1319 American Rescue Plan Act of 2021 (ARP/CSLFRF). Town of Newland (hereinafter Town shall adhere to all applicable subaward and monitoring requirements governing the use of ARP/CSLFRF. This policy establishes procedures for classifying, making an award to, and monitoring a sub-recipient consistent with ARP/CSLFRF grant award terms and all applicable federal regulations in the UG. Responsibillity for following these guidelines lies with the Town Council, Town Manager, and Finance Officer, who are charged with the administration and financial oversight of the [ARP/CSLFRF). II. DEFINITIONS The definitions in 2 CFR 200.1 apply to this policy, including the following: Contract: for the purpose of Federal financial assistance, a legal instrument by which a recipient or subrecipient purchases property or services needed to carry out the project or program under a Federal award. For additional information on subrecipient and contractor determinations, see $ 200.331. See also the definition of subaward in this section. Contractor: an entity that receives a contract as defined in this section. Pass-through Entity: a non-Federal entity that provides a subaward to a subrecipient to carry out part of a Federal program. Recipient: an entity, usually but not limited to non-Federal entities that receive a Federal award directly from a Federal awarding agency. The term recipient does not include subrecipients or individuals that are beneficiaries of the award. Subaward: an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass- through entity considers a contract. Subrecipient: an entity, usually but not limited to non-Federal entities, that receives a subaward from a pass-through entity to carry out part of a Federal award; but does not include an individual that is a beneficiary of such award. A subrecipient may also be a recipient of other Federal awards directly from a Federal awarding agency. 40 of 40 III. SUBRECIPIENT CLASSIFICATION The Town must make a case-by-case determination whether an agreement with another government entity or private entity, that is not a beneficiary, casts the party receiving the funds in the role of a subrecipient or contractor. 2 CFR 200.331. A: subaward is for the purpose of carrying out a portion of a Federal award and creates a Federal assistance relationship with the subrecipient. Characteristics which support the classification of the non- Federal entity as a subrecipient include when the non-Federal entity: (1) Determines who is eligible to receive what Federal assistance; (2) Has its performance measured in relation to whether objectives ofa Federal program were met; (3) Has responsibility for programmatic decision-making; (4) Is responsible for adherence to applicable Federal program requirements specified in the Federal award; and (5) In accordance with its agreement, uses the Federal funds to carry out a program for a public purpose specified in authorizing statutes, as opposed to providing goods or services for the benefit of the pass-through entity. A contract is for the purpose of obtaining goods and services fort the non-Federal entity's own use and creates a procurement relationship with the contractor. Characteristics indicative of a procurement relationship between the non-Federal entity and a contractor are when the contractor: (1) Provides the goods and services within normal business operations; (2) Provides similar goods or services to many different purchasers; (3) Normally operates in a competitive environment; (4) Provides goods or services that are ancillary to the operation of the Federal program; and (5) Is not subject to compliance requirements of the Federal program as a result of the agreement, though similar requirements may apply for other reasons. In determining whether an agreement between a pass-through entity and another non-Federal entity casts the latter as a subrecipient or a contractor, the substance of the relationship is more important than the form of the agreement. All of the characteristics listed above may not be present in all cases, and the pass-through entity must use judgment in classifying each agreement as a subaward or a procurement contract. The Town will use the above criteria to determine if an agreement involving the expenditure of ARP/CSLFRF is a contract or subaward. The Town Council, Town Manager, and Finance Officer will document the determination in the Subrecipient or Contractor Classification Checklist in Appendix 1. (Appendix 1: Subrecipient or Contractor Classification Checklist.) If the agreement involves a contractor relationship (including a contract for services), the Town must follow its UG Procurement Policy when entering into a contract. If the agreement involves a subrecipient relationship, the Town must proceed to Sections IV. through VII. below. 50 of4 40 IV. ASSESSMENT OF RISK Before engaging in a subaward, the Town must evaluate a subrecipient's risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward to determine whether to award the subaward and the appropriate subrecipient monitoring. The Town Council or Town Manger will conduct the risk assessment, which will include consideration of the following factors: (1) The subrecipient's prior experience with the same or similar subawards; (2) The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with 2 CFR 200 Subpart F: and the extent to which the same or: similar subaward has been audited as a major program; (3) Whether the subrecipient has new personnel or new or substantially changed systems; and (4) The extent and results of Federal awarding agency monitoring (e.g., if the subrecipient also receives Federal awards directly from a Federal awarding agency). 2 CFR 200.332(b). The results of the risk assessment must be documented in the Subrecipient Assessment of Risk form in Appendix 2 and will be used to dictate the types and degree of subrecipient monitoring. (Appendix 2: Subrecipient, Assessment of Risk/The Town will assign an overall risk level to the subrecipient indicating the following: Low Risk Moderate Risk High Risk There is a low risk that the There is moderate risk that the There is high risk that the subrecipient will fail to meet subrecipient will fail to meet subrecipient will fail to meet project or programmatic project or programmatic project or programmatic objectives or incur significant objectives or incur significant objectives or incur significant deficiencies in financial, deficiencies in financial, deficiencies in financial, regulatory, reporting, or other regulatory, reporting, or other regulatory, reporting, or other compliance requirements. compliance requirements. compliance requirements. If a proposed subrecipient is deemed high risk, the Town Council must provide written justification to proceed with the subaward. The justification must be approved by the Town of Newland attorney. V. SUBRECIPIENT MONITORING The Town will develop and implement a subrecipient monitoring plan for the particular subaward based on the findings of the Subrecipient Assessment of Risk. According to 2 CFR 200.332(d), the monitoring plan must involve: (1) Reviewing financial and performance reports required by the pass-through entity. (2) Following up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward. (3) Issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by 2 CFR 200.521. (4) The pass-through entity is responsible for resolving audit findings specifically related to the subaward and not responsible for resolving crosscutting findings. If a subrecipient has a current Single Audit report posted in the Federal Audit Clearinghouse and has not otherwise been 6of40 excluded from receipt of Federal funding (e.g., has been debarred or suspended), the pass- through entity may rely on the subrecipient's cognizant audit agency or cognizant oversight agency to perform audit follow-up and make management decisions related to cross-cutting findings in accordance with section 2 CFR 200.513a)3)vi). Such reliance does not eliminate the responsibility of the pass-through entity to issue subawards that conform to agency and award- specific requirements, to manage risk through ongoing subaward monitoring, and to monitor the status of the findings that are specifically related to the subaward. The Town's monitoring plan will vary based on the overall subrecipient risk assessment as low risk, medium risk, or high risk, detailed as follows: Subrecipient Deemed Low Risk Subrecipient Deemed Medium Subrecipient Deemed High Risk Risk Payment validations More detailed financial More detailed financial (monthly) reporting reporting Report reviews (quarterly) Payment validations Compliance training (one- Desk reviews (at least once (monthly) time) per year and more Report reviews (bi-monthly) Prior approvals for certain frequently if requested by Desk reviews (within 6 expenditures Town or subrecipient) months of project start and Payment validations Onsite reviews (upon every six months (monthly) request of Town or thereafter) Report reviews (monthly) subrecipient) Onsite reviews (within 12 Desk reviews (within 3 Audit review (yearly) months of project start and months of project start and annually thereafter, or at least quarterly more frequently as thereafter) requested by the Town or Onsite reviews (within 6 subrecipient) months of project start and Audit review (yearly) bi-annually thereafter, or Procedures engagement (if more frequently as subrecipient not subject to requested by Town or Single Audit Act; yearly) subrecipient) Audit review (yearly) Procedures engagement (if subrecipient not subject to Single Audit Act; yearly) Payment validation: All subrecipient documentation for project expenditures must be reviewed by the Town for compliance with subaward requirements. Any non-compliant expenditures will be denied and the subrecipient will be provided a reasonable description of the reason for denial and an opportunity to cure the deficiency. For a subrecipient on a reimbursement-based payment structure, validation will occur before a reimbursement payment is approved. Fora subrecipient that received an up-front payment, any funds found to have been expended in violation of the subaward requirements must be repaid to the Town. Report review: A subrecipient must submit quarterly financial and performance reports, based on the schedule set forth in the subaward. The nature and scope of the reports will depend on the project and be spelled out in the subaward. The reports will be reviewed by the Town Council or Town Manager. Any deficiencies or other performance concerns will be addressed 7 of40 with the subrecipient in a timely manner and could trigger additional monitoring requirements or other interventions, as. specified in the subaward. Desk review: The Town will conduct a meeting to review the subrecipient's S award administration capacity and financial management. The meeting may be held virtually or in person. Topics covered will depend on project scope and subrecipient risk assessment and may include governance, budgeting, accounting, internal controls, conflict of interest, personnel, procurement, inventory, and record keeping. The Town will produce a report which summarizes the results and any corrective actions if deemed necessary, The report will be shared in a timely manner with the subrecipient. Onsite review: The Town will conduct an on-site meeting at the subrecipient's location to review the subrecipient's project performance and compliance. Topics covered will depend on project scope and subrecipient risk assessment and may include project procurement, data systems, activity and performance tracking, project reporting, inventory, and software systems. The Town will produce a report which summarizes the results, and any corrective actions deemed necessary, The report will be shared in a timely manner with the subrecipient. Audit review: The Town must verify that every subrecipient is audited as required by 2 CFR 200 Subpart F (Single Audit) when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 2 CFR 200.501. The Town must obtain a copy of the subrecipient's Single Audit from the Federal Audit Clearinghouse (FAC). Within six months of the acceptance of the audit report by the FAC, the Town will issue a management decision for any audit findings related to the subaward. The decision will clearly state whether or not the audit finding is sustained, the reasons for the decision, and the expected auditee action to repay disallowed costs, make financial adjustments, or take other action. (The decision will include reference numbers the auditor assigned to each finding.) The decision will provide a timetable for responsive actions by the subrecipient. Prior to issuing the management decision, the Town may request additional information or documentation from the auditee, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. Procedures engagement: Applicable only to subrecipients who are not subject to the Single Audit Act. An auditor will perform specific procedures and report on findings. The scope must be limited to the following compliance requirements: activities allowed or unallowed; allowable costs/cost principles; eligibility; and reporting. The review will be arranged and paid for by the Town. The Town will verify completion of the procedures engagement. Within six months of the acceptance of the procedures engagement report, the Town will issue a management decision for any findings related to the subaward. The decision will provide a timetable for responsive actions by the subrecipient. Prior to issuing the management decision, the Town may request additional information or documentation from the subrecipient, including a request for auditor assurance related to the documentation, as a way of mitigating disallowed costs. The specific monitoring plan for each subrecipient, including the type and frequency of reviews, will be detailed in the subaward agreement. For all requirements beyond those listed under the Low-Risk category above, the Town will notify the subrecipient of the following in the subaward: (1) The nature of the additional requirements; (2) The reason why the additional requirements are being imposed; (3) The nature of the action needed to remove the additional requirement, if applicable; (4) The time allowed for completing the actions if applicable; and 80 of40 (5) The method for requesting reconsideration of the additional requirements imposed. To implement the monitoring plan, Town Council or Town Manager must perform periodic reviews and document findings in the Subrecipient Monitoring Form (Appendix 3: Subrecipient Monitoring Form). VI. SUBRECIPIENT INTERVENTIONS The Town may adjust specific subaward conditions as needed, in accordance with 2 CFR 200.208 and 2 CFR 200.339. If the Town determines that the subrecipient is not in compliance with the subaward, the Town may institute an intervention. The degree of the subrecipient's performance or compliance deficiency will determine the degree of intervention. All possible interventions must be indicated in the subaward agreement. The Town must provide written notice to the subrecipient of any intervention within thirty days of completion of a report review, desk review, onsite review, audit review, or procedures engagement review or as soon as possible after the Town otherwise learns of a subaward compliance or performance deficiency. Pursuant to 2 CFR 200.208, the written notice must notify the subrecipient of the following related to the intervention: (1) The nature of the additional requirements; (2) The reason why the additional requirements are being imposed; (3) The nature of the action needed to remove the additional requirement, ifapplicable; (4) The time allowed for completing the actions if applicable; and (5) The method for requesting reconsideration of the additional requirements imposed. The following interventions may be imposed on a subrecipient, based on the level of compliance or performance deficiency: Level 1 Interventions. These interventions may be required for minor compliance or performance issues. (1) Subrecipient addresses specific internal control, documentation, financial management, compliance, or performance issues within a specified time period (2) More frequent or more thorough reporting by the subrecipient (3) More frequent monitoring by the Town (4) Required subrecipient technical assistance or training Level 2 Interventions. These interventions may be required, in addition to Level 1 interventions, for more serious compliance or performance issues. (1) Restrictions on funding payment requests by subrecipient (2) Disallowing payments to subrecipient (3) Requiring repayment for disallowed cost items (4) Imposing probationary status on subrecipient Level 3 Interventions. These interventions may be required, in addition to Level 1 and 2 interventions, for significant and/or persistent compliance or performance issues. (1) Temporary or indefinite funding suspension to subrecipient (2) Nonrenewal of funding to subrecipient in subsequent year 9of40 (3) Terminate funding to subrecipient in the current year (4) Initiate legal action against subrecipient VII. SUBAWARD AGREEMENT & EXECUTION The subaward agreement will be drafted by the Town Council or Town Manager using the Subaward Agreement Template. Contract terms and conditions may vary based on several factors, including subrecipient risk assessment findings, as documented in the Subrecipient Assessment of Risk. After review by the Town Council or Town Manager, the Town Council or Town Manager may fully execute the subaward agreement, subject to any required budget amendments by the Town's governing board, preaudit requirements, and other contract execution prerequisites set by the Town. 10 of 40 APPENDIX 1: Subrecipient or Contractor Classification Checklist Ift the Town of Newland wishes to contract with another government entity or a private entity and use. ARP/CSLFRF funds to pay for that contract, the Town must determine if the relationship with the outside entity is a contractor or subrecipient. To make this determination the Town must review the project proposal, budget classification, and other related proposal documents, as well as engage in discussions with key personnel about the nature oft the proposed agreement. The determination of whether a proposed agreement involves a contractor or subrecipient relationship must be recorded on this form and maintained in the project file for the duration of the records retention period for ARP/CSLFRF reçords. Instructions: Complete Sections one through three. The section with the greatest number of marked characteristics indicates the likely type of relationship. The substance of the relationship should be given greater consideration than thet form of agreement between the Town and outside entity. In borderline cases, the Town may either provide a written justification for its determination in Section three or, if appropriate, restructure the agreement to more clearly define it as either a contractor or subrecipient relationship. Name of Outside Entity: Section 1 Brief Description of Nature of Proposed Agreement: Section 1 - Subrecipient. A subaward is for the purpose of carrying out a portion of a Federal award and creates a Federal assistance relationship between the recipient and the: subrecipient. Subrecipients may have one or more of the following characteristics: May determine who may be eligible to receive Federal assistance under the program guidelines. For example: A subrecipient that identifies mentors and mentees under a mentoring program. Has its performance measured in relation to whether objectives of a Federal program were met? The recipient will rely upon the subrecipient's data to submit its own performance data to Treasury. Has responsibility for programmatic decision making. For example: If the recipient funds a subrecipient to develop (or improve) a particular program and the. subrecipient will use its ownjudgment, discretion, and expertise to develop all or part of the program. In accordance with its subaward agreement (which may be in thel legal form of a contract), the subrecipient uses the Federal funds to carry out a program for a public purpose specified in authorizing statutes, as opposed to providing goods or services for the benefit oft the recipient. For example: To provide crime- or crimindl-justice-related services (and, in the case of crime victims, compensation) to individual members of the public, such as victims of crime, or at-risk youth. The subrecipient will not earn a profit under the agreement. The subrecipient is required to contribute cash or in-kind matches in support of the subaward. Section 2 - Contractor. A contract is for the purpose of obtaining goods and services for the recipient's own use and creates a procurement relationship between the recipient and the contractor, Entities that include these characteristics are not subject to compliance requirements ofthe Federal program because of the agreement, though similar requirements may apply for other reasons. A contractor relationship may have one or more of the following characteristics: 11 of 40 Provides goods and services within normal business operations. Provides similar goods or services to many different purchasers. Normally operates in a competitive environment. Provides goods or services that are ancillary to the operation of the Federal program. Examples include but are not limited to: Office equipment, supplies, software licenses, reference books, chemical reagents, cell phones, body-worn cameras, body armor, internet services, cell phone service, website hosting, copying/printing, lodging. The entity may earn a profit under the contract. FINAL DETERMINATION: Subrecipient Contractor Section 3 - Justification. In determining whether an agreement between a recipient and another non-Federal entity reflects a subrecipient or a contractor relationship, the substance of the relationship is more important than the form of the agreement. Considering the characteristics checked above, provide a written justification for the final determination of either a subrecipient or contractor relationship. Explanation of Justification Determination: Signature: Date: Print Name and Title: 12 of 40 APPENDIX 2: Subrecipient Risk Assessment Subrecipient Information: Subrecipient Name [INSERT SUBRECIPIENT NAME, WHICH MUST MATCH THE NAME ASSOCIATED WITH ITS UNIQUE ENTITY IDENTIFIER Subrecipient Unique Entity Identifier: [INSERT SUBRECIPIENT UNIQUE ENTITY IDENTIFIER] Brief Description of Subaward Project and Role [INSERT AI BRIEF DESCRIPTION OF SUBAWARD PROJECT AND of Subrecipient: ROLE OF SUBRECIPIENT Name and Title of Subrecipient Personnel [INSERT NAME AND TITLE OF SUBRECIPIENT PERSONNEL Providing Information for this Risk. Assessment PROVIDIN INFO. FOR THIS RISK ASSESSMENT) Choose an item. Is the entity prohibited from receiving Federal funds due to suspension or debarment per the Excluded Parties List located in the System for Award Management (SAM)? mwahmalomeulene. Choose an item. Is the entity in good standing with Town of Newland? Discuss with appropriate staff. Choose an item. Has Data Collection Form on Federal Audit Clearinghouse (FAC) been reviewed? htps/lacweh.ensusgoVuploadpdaspal Ifyes, List Findings: Risk Category Rating Label Comments General Assessments 1. Is the proposed subrecipient entity's Choose an (hereinafter "entity") facility, equipment, item. supplies, and staffing adequate for the needs of the award? 2. Has the entity adopted and implemented all Choose an required Uniform Guidance policies and item. procedures? 3. Has the entity adopted and implemented Choose an records retention, conflict of interest, and item. nondiscrimination policies, consistent with the ARP/CSLFRF award terms? 4. Is the entity properly licensed or certified by Choose an ar recognized source (i.e., the Internal item. Revenue Service non-profit determination letter, bonded and insured if performing construction-related activities, etc.)? 5. Does the entity have a Code of Ethics policy Choose an which is provided to all associated item. employees? 6. Has the entity's management demonstrated Choose an a commitment to compliance with the item. subaward terms and all applicable laws and regulations? Financial Management, Systems, & Personnel 13 of 40 7. Does the entity have a financial Choose an management system that provides records item. that can identify the sources and application of funds for subaward funded activities? 8. Does the entity's financial management Choose an system provide for the control and item. accountability of project funds, property, and other assets? 9. What is the current staffing level of the Choose an entity? item. 10. Has there been any change in the entity's Choose an key staffing positions in the last 2 years? item. 11, What is the entity's staff's experience in Choose an performing stated activities in the proposed item. subaward? 12. Does the entity have a formal, written Choose an personnel policy that addresses: item. (a) Pay rates & benefits (b) Time & attendance (c) Leave (d) Discrimination (e) Nepotism (f) Conflict of Interest? 13. Does the entity have sufficient internal Choose an controls related to the subaward funds? item. 14. Does the entity have sufficient cash flow to Choose an carry out the subaward terms? item. Experience with Other Federal Grants 15. Has the entity previously done work for the Choose an If low or moderate (yes), list the last federal government? item. three agencies and award periods. (a) If low or moderate (yes), what is the Choose an entity's past performance on meeting item. federal program outcomes and managing federal funds in compliance with federal regulations? 16. Is the entity experienced in managing federal Choose an funds oft the scope of this proposed item. subaward? 17. Identify any monitoring interventions the Choose an entity is currently subject to related to other item. federal grant awards. 18. Does the entity maintain an inventory of Choose an federal government property that, at a item. minimum, identifies purchase date, cost, vendor, description, serial number, location, and ultimate disposition data? Audits 19. Does the entity have a designated federal Choose an Iflow (yes), provide name of audit cognizant audit agency? item. agency. 20. Has the entity completed a Single Audit in Choose an Iflow or moderate (yes), provide a the past five years? item. copy of the most recent audit and do not complete the rest of the Audit Section. 14 of 40 (a) If high (no) to 20., does the entity have Choose an Ifyes, please provide a copy oft the annual financial statements that have been item. statements for the most current fiscal reviewed of audited by an independent audit year. Ifno, please explain. firm? Indirect Rate Information 21. Does the entity have a negotiated federal Choose an Ify yes, what is the rate? indirect/F&A rate? (Note: This question does item. If no, indicate that de minimis 10% not impacted weight of risk assessment) indirect rate will apply Overall Risk Assessment 22. Based on the overall assessment, does the Choose an reviewer anticipate any implementation item. problems with the proposed subaward? 23. What percentage of the entity's overall Choose an annual budget will this subaward comprise? item. 24. Considering all factors above, assess overall Choose an item. level of risk Document any additional findings, mitigating factors, and recommendations here. Assessment Completed By: Date of Assessment: 15 of 40 APPENDIX 3: Subreciplent Monitoring Form This report reflects the Town's substantive assessment of the subrecipient's project implementation and subaward compliance. The Town's project manager assigned to the subaward, or finance officer must complete this report for each payment validation, report review, desk review, site review, and audit or procedures engagement review during the subaward term (and, as appropriate, after the expiration or termination of the subaward). Upon completion, and following review by [LIST APPROPRIATE STAFFI, the original willl be filed in the subaward file. Any required subrecipient corrective actions will be detailed in writing and provided to the subrecipient within thirty days of the completion of this report. I. Subaward Overview (complete this section for all reviews) STAFF INFORMATION Reviewed conducted by: Date: Type programmatic, Date: financial, or both) Review confirmed by: Date: SUBRECIPIENT INFORMATION Subrecipient Name: Subrecipient Program Personnel (who participated in the review): Subrecipient Contact Phone Number: Subrecipient Fiscal/Audit Personnel (who participated in the review): Subrecipient Fiscal Contact Phone Number: GRANT REVIEW INFORMATION Grant Project # Award $ POP Begin POP End. Review. Period: Beginning Ending Date. Date TYPE OF MONITORING Type of Monitoring Date Comments Completed Payment Validation (Complete this column, but not the rest of the form.) Report Review (Complete this column, but not the rest of the form.) 16 of 40 Audit or Procedures Engagement Review (Complete this column, but not the rest of the form.) Desk Review (If desk review, complete the rest of the form.) Onsite Review (If onsite review, complete the rest of the form.) II. Desk and Onsite Reviews (complete this section for desk and onsite reviews only) PRE-MEETING NOTES List any issues, concerns, or other specialty items for follow-up during review. 1. 2. SUMMARY OF PROGRESS Subrecipient must submit a written summary of the major workplan milestones during the review period at least one week prior to the review. The summary must address 1) number of clients served as compared with projections; 2) staffing; 3) activities undertaken; and 4) significant accomplishments. A copy of that summary will be appended to this written review report. MONITORING OVERVIEW PROGRAM IMPLEMENTATION Indicate milestones met this quarter and identify milestones as scheduled to occur in the following quarter. ACTIVITES/PRODUCIS Identify any reports or products that were submitted during the quarter, and identify those due the following quarter. 17 of 40 CORRECTIVE ACTIONS FROM PRIOR REVIEWS Indicate actions taken in response to prior review issues. ASSESSMENT OF QUALITY OF IMPLEMENTATION Is the project being implemented on schedule? Are the activities impacting the goals and objectives as outlined in approved application? SSUES/PROBLEMS Discuss significant new issues/problems with respect to projected milestones, audits, staffing, client flow, departures from approved goals, late reports, etc. 18 of 40 MONITORING SPECIFICS (Complete all fields that are applicable to the subaward.) Activity Goals D N/A Yes No N/A Scope of Service, Number of People to be Served, and any Special Terms stated within the Subaward Agreement. 1. Has there been a change in the activity goals, scope of service, number of people D - to be served or other special terms as indicated in the Agreement between the Subrecipient and the Recipient? (a)! If yes, was the Recipient informed of the change? D 2. Did the activity conform to any additional or special terms as reflected in the L Subaward Agreement? 3. Is the subrecipient providing thet full scope of services as stated in the application and Subaward Agreement? 4. Are the actual accomplishments at thet time of this review the: same as the planned accomplishments? Is the activity achieving the expected quantifiable levels of performance (number of persons served, achieving goals set for clients, etc.) reaching the intended client group? 5. Is the overall activity performance: schedule being met in a timely manner (i.e. goal for number of clients served, expenditure of funds in timely manner, reporting requirements)? 6. Didi the activity operate within the approved budget as detailed in the Subaward Agreement? (i.e., budgetary line items both accurate and realistic for activity expenses; source and use of match funds accurate) 7. Did the activity funding source change? D a J 8. Was there a change in make-up or responsibility of staff for the activity? D D a 9. Were invoices for reimbursement payments submitted with support D documentation? 10. Were reports outlined in the Subaward Agreement submitted on time? General Comments General Compliance Yes No N/A Request a copy of all applicable policies and procedures required byt the ARP/CSLFRF award terms and Uniform Guidançe. 11, Does the subrecipient have written policies and procedures to adequately administer the ARP/CSLFRF subaward? 12. Does the subrecipient have a written conflict of interest policy for their employees? 13. Are there sufficient internal controls in place to protect against waste, fraud and abuse of Federal funds (segregation of duties, etc.)? 14. Ifp program income will be generated by the subrecipient, have provisions been made to ensure that it is used in accordance with ARP/CSLFRF and Uniform Guidance requirements? What procedures does the subrecipient use to identify and account for federai property purchased with subaward funds? Does the subrecipient have adequate safeguards for preventing loss, damage, or theft of property held (inventory control, etc.)? Describe any technical assistance/training provided to subrecipient during the project period. General Comments 19 of 40 Employee Reimbursement a N/A: Yes No N/A Request a copy of the employee reimbursement policy, and/or have the subrecipient describe the procedure for approving and documenting expenses that are reimbursed. 15. Are detailed receipts (i.e., receipts that do not merely show a total, but the detail of what was purchased) provided for reimbursement? 16. Are reimbursements reviewed and approved by a supervisor or project manager prior to being submitted to the Fiscal Officer/Accounting Staff for payment? 17. Does the subrecipient have a Reimbursement Policy? Examine two or more reimbursements that were paid out of the grant being monitored. 18. Were the detailed receipts provided to support the amounts requested? 19. Were the expenses in compliance with grant quirement/guldelnes and UG? 20. If reimbursed for training or conference expenses, was a certificate of attendance or completion, or agenda and brochure provided to support request for reimbursement? General Comments Equipment N/A: Yes No N/A. What is the purchasing procedure for equipment purchased with grant funds? Attach copies of relevant policies and of any purchasing documentation during the review period. How is equipment inventoried, insured, and managed? Attach copies of relevant policies and current inventory information. What is the procedure for transferring equipment purchased with grant funds to another entity? Attach copies of relevant policies and documentation for any transfers during review period. Request an inventory list, physically locate selected items, and examine items to ensure compliance. 1. Were all transactions conducted in a manner providing full and open competition, and quotations obtained from an adequate number of sources? 2. Has all equipment indicated as purchased actually been purchased? 3. Was equipment purchased in accordance with required procurement rules/policies? 4. Were additions and deletions to the equipment budget made and approved prior to the purchase/procurement dates? 5. Does a detailed expenditure list indicate any equipment purchased that is not accounted for in the subaward budget? 6. Is equipment purchased with subaward funds in prior years still in inventory and still being used for subaward purposes? 7. Has the inventory been updated, and did it account for all items transferred to other entities? 8. For equipment that was transferred, aside from normal office equipment, was the transferee properly trained on the equipment, and is there a record of that training? 9. For equipment transferred to other entities; have they added it to their inventory records and is it maintained/used for intended purposes? General Comments 20 of 40 Financial Management N/A Ves No N/A What is the Accounting System for each grant program? 1. Is there a separate accounting for all financial transactions for the subaward? 2. Is a process in place to prevent co-mingling of funds? 3. Does the accounting system prevent obligation or expenditure off funds outside the subaward's period of availability? 4. Are accounting records supported by source documentation? 5. Were any illegal transfers or unusual activities noted during a review of the subrecipient's fund activity reports? 6. Does the system provide for prompt and timely recording and reporting of all financial transactions? 7. Is proper Fiscal record retention being followed (through Dec. 31, 2031)? What is the process for approval and payment of expenditures and posting to the General Ledger? 8. Are subaward costs identified as eligible prior to encumbering funds and placing an order? 9. Were the applicable State/Federal suspension and debarment listings consulted prior to doing business with a vendor and/or contractor? 10. Are all invoices reviewed by the project director for eligibility and marked 'okay to pay' prior to being submitted to thet fiscal office or accounting staff for payment? 11. Are disbursements fully supported by invoices, requisitions, purchase orders, or similar documents? 12. Are cancelled checks or warrants available for review? 13. Were all subaward funds that were received disabused within the allowable timeframe? What is the reconciliation process, and how are errors or adjustments handled? 14. Does the subrecipient perform routine reconciliations of its records against the General Ledger? By whom and how often? 15. Does the subrecipient have sufficient internal controls related to reconcliations? 16. Were actions taken to promptly correct any errors and/or resolve issues? General Comments Other Direct Costs D N/A Ves No N/A How are rent, utilities, and other items allocated for the program? 1. Are rent payments documented by a copy of the lease agreement, and canceled checks or receipts? 2. Are receipts, bills, and invoices properly maintained? 3. Is the actual rate and method being charged to the grant consistent with the rate and method approved in the budget? 4. Are costs shared with other programs or funding sources? Ify yes, how are costs allocated? General Comments 21 of 40 Personnel/Direct Labor D N/A Yes No N/A Describe the payroll process and who is paid by the subaward. 1. Are personnel files maintained for each employee that include current job descriptions, performance and evaluations, and changes in pay rates? 2. Are time sheets, activity reports, or payroll files available for review? These documents should clearly show the effort toward the subaward charged. 3. Are individual employee time sheets and attendance records: Prepared and signed by each employee for each pay period? Reviewed and signed by each employee's supervisor? Reconciled to the payroll master ledger? 4. Are all authorized staff positions filled for the approved budget? 5. Are staff salaries consistent with the approved budget? 6. Are fringe benefits the same as what is listed in the approved budget? General Comments Réporting Requirements 4 N/A Yes No N/A: Subrecipients are required to report on progress toward implementing plans described in their application/proposal. 1. Progress reports must be submitted based on approved work plan. Have all ofi the reports been submitted for this reporting period? 2. Are there any outstanding data elements that must be tracked and reported by the subrecipient? If so, detail the plan for the subrecipient to comply with this requirement. Comments Supplies & Materials L N/A Yes No N/A Explain the process of allocating supply costs to the subaward. 1. Are purchases of supplies approved and well documented by quotes, invoices, or receipts? 2. Are expenditures for supplies consistent with the approved budget? 3. Is there a substantial supply inventory remaining at the project termination date? 4. Were all transactions conducted in a manner providing full and open competition, and quotations obtained from an adequate number of sources? General Comments Travel/Vehicle Mileage D N/A Yes No N/A Request a copy of the subrecipient's travel policy or have them describe the procedure for approving and documenting travel expenses. 1. Is employee travel approved in advance by a supervisor or project manager? 2. Are travel expenditures documented with expenses reports and/or detailed receipts (i.e., receipts do not merely show total but detail of what was purchased)? 22 of 40 3. Are travel expenditures appropriately supported within subaward guidelines and in the approved budget? 4. Are mileage reimbursements supported by a mileage log or similar documentation? General Comments Single Audit Review- D N/A Yes No: N/A Obtain a copy of the subrecipient's most recent audit from FAC. Attach it to this review form. 1. Was the Major Programs' Compliance Opinion in the Summary of Auditor's Results in the Schedule of Findings qualified? 2. Were there any findings and/or questioned costs fori federal awards in the Schedule of Findings? Were any other operational issues such as the handling of assets, lack of policies and procedures, contract non-compliance, etc., which would impact Federal dollars received? 3. Were past audit findings and/or questioned costs for federal awards satisfactorily resolved? 4. Was any control issue identified which would impact the processing of Federal grant dollars (i.e., control weaknesses)? General Comments (If yes response to questions 1, 2, and/or 4, then comment on the issues noted from the audit and how this was addressed during the onsite review). RECOMMENDED CHANGES AND/OR NEW MONITORING INTERVENTIONS Please document any recommendations for financial, programmatic, or other changes. Indicate if further monitoring interventions are warranted. 23 of40 APPENDIX 4: Subaward Agreement Template American Rescue Plan Act of 2021 Coronavirus State and Local Fiscal Recover Funds Subaward Agreement Between The Town of Newland, North Carolina and [NAME OF SUBRECIPIENT) Article I. Overview. Section 1.1. Parties. The parties to this agreement are Town of Newland, North Carolina, a body politic and political subdivision of the State of North Carolina ("Town") and [FULL LEGAL NAME OF SUBRECIPIENT), a North Carolina SUBRECIPIENT ENTITY TYPE (EG., NON-PROFIT CORPORTATION, FOR-PROFIT CORPORATION, GOVERNMENT ENTITY, ETC.)] ("Subrecipient"). Section 1.2. Definitions. The definitions in 2 CFR 200.1 are hereby incorporated into this Agreement. Section 1.3. Roles. For the purposes of this Agreement, the Town serves as a pass-through entity. Section 1.4. Source of Funding. This Agreement is funded by a portion of the [DOLLAR VALUE ALLOCATED TO LOCAL GOVERNMET) allocated to the Town by the Coronavirus State Local Fiscal Recovery Fund created under section 603 ofthe American Rescue Plan Act of 2021 (ARP/CSLFRF). Section 1.5. Purpose. The purpose of this Agreement is to establish the terms and conditions for a subaward allocated to the Subrecipient from the Town. Section 1.6. Disclosures. Federal regulations, specifically 2 CFR 200.331(a)(1), require the Town to provide the Subrecipient with specific information about this subaward. All required information is listed in Exhibit A (Subaward Data). Section 1.7. Term. This Agreement shall govern the pertormance of the parties for the period [START DATE] (the "Effective Date") through [END DATE] ("Expiration Date"), unless earlier terminated by either party in accordance with thei terms ofthis Agreement ("Agreement Term"). Article II, Scope of Funded Activities. Section 2.1. Scope of Services. Subrecipient shall perform all activities described in the scope of activities, attached hereto as Exhibit B (Approved Activities). Section 2.2. Budget. Subrecipient shall perform the Approved Activities in accordance with the program budget as approved by the Town and attached hereto as Exhibit C(Approved Budget). Section 2.3. Prior Approval for Changes. Subrecipient may not transfer allocated funds among cost categories within a budgeted program account without the prior written approval of the Town; nor shall Subrecipient make any changes, directly or indirectly, to program design, Approved Activities, or Approved Budget without the prior written approval of Town. Article III. Compensation. Section. 3.1. Payment of Funds. Town agrees to reimburse Subrecipient for costs actually incurred and paid by Subrecipient in accordance with the Approved Budget and for the performance of the Approved Activities under this Agreement in an amount not to exceed $LJ ("Total Agreement Funds"). The amount of Total Agreement Funds, however, is subject to adjustment by the Town if a substantial change is made in the Approved Activities that affect this Agreement or if this Agreement is terminated prior to the expiration of the Agreement. Program funds shall not be expended prior to the Effective Date or following the earlier of the Expiration Date or the last 24 of 40 day of the Agreement Term. Costs incurred shall only be as necessary and allowable to carry out the purposes and activities of the Approved Activities and may not exceed the maximum limits set in the Approved Budget. Expenses charged against the Total Agreement Funds shall be incurred in accordance with this Agreement. Section. 3.2. Invoices. On or before the twentieth (20th) day of each month and in any event no later than thirty (30) days after the earlier of the expiration or termination of this Agreement, Subrecipient shall submit invoices and associated receipts, in a format dictated by Town, for the most recent month ended, to Town's Finance Officer via mail or email, setting forth actual expenditures of Subrecipient in accordance with this Agreement. Within ten (10) working days from the date it receives such invoice, Town may disapprove the requested reimbursement claim. Ifthe reimbursement claim is disapproved, Town shall notify Subrecipient as to the disapproval. A decision by Town to disapprove a reimbursement claim is final. There is no appeal process for subrecipient. If Town approves payment, then Town will disburse the funds without further notice. Section. 3.3. Town's Subaward Obligations Contingent on Federal Funding and Subrecipient Compliance. The payment of funds to Subrecipient under thei terms of this Agreement shall be contingent on the receipt of such funds by Town from the ARP/CSLFRF and shall be subject to Subrecipient's continued eligibility to receive funds under the applicable provisions of state and federal laws. Ifthe amount offunds that Town receives from the ARP/CSLFRF is reduced, Town may reduce the amount of funds awarded under this Agreement or terminate this Agreement. Town also may deny payment for Subrecipient's expenditures for Approved Activities where invoices or other reports are not submitted by the deadlines specified in this Agreement or for failure of Subrecipient to comply with the terms and conditions of this Agreement. Article IV. Financial Accountability and Grant Administration. Section. 4.1. Financial Management. Subrecipient shall maintain a financial management system and financial records related to all transactions with funds received pursuant to this Agreement and with any program income earned as a result of funds received pursuant to this Agreement. Subrecipient must administer funds received pursuant to this Agreement in accordance with all applicable federal and state requirements, including the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR Part 200, as required by the ARP/CSLFRF Assistance Listing (21.027). Subrecipient shall adopt such additional financial management procedures as may from time-to-time be prescribed by Town if required by applicable federal or state laws or regulations, or guidelines from US Department of Treasury. Subrecipient shall maintain detailed, itemized documentation and other necessary records of all income received and expenses incurred pursuant to this Agreement. Section. 4.2. Limitations on Expenditures. Town shall only reimburse Subrecipient for documented expenditures incurred during the Agreement Term that are: (i) reasonable and necessary to carry out the scope of Approved Activities described in Exhibit B; (li) documented by contracts or other evidence of liability consistent with the established Town and Subrecipient procedures; and (i) incurred in accordance with all applicable requirements for the expenditure of funds payable under this Agreement. Town may not reimburse or otherwise compensate Subrecipient for any expenditures incurred or services provided prior to the Effective Date or following the earlier of the expiration or termination of this Agreement. Section. 4.3. Indirect Cost Rate. The indirect cost rate, if any, indicated in Exhibit C (Approved Budget) shall apply to this Agreement. [NOTE: IF THE SUBRECIPIENT HAS A NICRA WITH ANOTHER FEDERAL AGENCY THAT IS HIGHER THAN THE DE MINIMIS NDIRECT RATE OF 10%, YOU MUST USE THE SUBRECIPIENT'S NICRA TO CALCULATE ITS INDIRECT RATE. SEE 2 CFR 200.332(a)(4)00) Section. 4.4. Financial and Other Reports. Subrecipient shall submit to Town such reports and back-up data as may be required by the Federal Government or Town, including such reports which enable Town to submit its own reports to the US Department of Treasury, in accordance with the following schedule, which may be amended from time to time: REPORT DEADLINE 25 of 40 [INSERT APPLICABLE REPORT REQUIREMENTS [INSERT APPLICABLE DEADLINES] HERE] [REVIEW TREASURY PROJECT & EXPENDITURE REPORT AND RECOVERY PLAN DEADLINES AS A GUIDELINE FOR DEVELOPING TIMELINE. SEE TREASURY COMPLIANCE. AND REPORTING GUIDANCE, This provision shall survive the expiration or termination of this Agreement with respect to any reports which the Subrecipient is required to submit to Town following the expiration or termination of this Agreement. Section. 4.5. Improper Payments. Any item of expenditure by Subrecipient under the terms of this Agreement which is found by auditors, investigators, and other authorized representatives of the Town, the US Department of Treasury, the NC Department of State Treasurer, or other federal or state instrumentality to be improper, unallowable, in violation of federal or state law, or the terms of this Agreement, or involving any fraudulent, deceptive, or misleading representations or activities of Subrecipient, shall become Subrecipient's liability, and shall be paid solely by Subrecipient, immediately upon notification of such, from funds other than those provided by Town under this Agreement or any other agreements between Town and Subrecipient. This provision shall survive the expiration or termination of this Agreement. Section. 4.6. Audits and Access to Records. Subrecipient certifies compliance with applicable provisions of 2 CFR 200.501-200.521, and continued compliance with these provisions during the term of this section. f Subrecipient is not required to have a Single Audit as defined by 200.501, US Department of Treasury requirements, or the Single Audit Act, then Subrecipient shall have a financial audit performed yearly by an independent Certified Public Accountant. Subrecipient shall provide notice of the completion of any required audits and will provide access to such audits and other financial information related to the. Agreement upon request. Subrecipient certifies that it will provide Town with notice of any adverse findings which impact this Agreement. This obligation extends for one year beyond the expiration or termination of this Agreement. [BASED ON THE RISK ASSESSMENT OF THE SUBRECIPIENT, THE LOCAL GOVERNMENT MAY IMPOSE A MORE LIMITED PROCEDURES ENGAGEMENT REQUIREMENT ON A SUBRECIPIENT THAT S NOT SUBJECT TO A SINGLE AUDIT. IF SO, THAT REQUIREMENT SHOULD BE SPELLED OUT HERE, THE LOCAL GOVERNMENT WILL ARRANGE FOR THE PROCEDURES ENGAGEMENT WITH THE AUDITOR AND PAY FOR IT. ARP/CSLFRF FUNDS MAY BE USED TO COVER THESE COSTS IF THE PROCEDURES ENGAGEMENT IS LIMITED TO ALLOWABLE COSTS UNDER THE UNIFORM GUIDANCE.] Section. 4.7. Closeout. Final payment request(s) under this Agreement must be received by Town no later than thirty (30) days after the earlier of the Expiration Date or the last day of the Agreement Term. Town will not accept a payment request submitted after this date without prior authorization from Town. In consideration of the execution of this Agreement by Town, Subrecipient agrees that acceptance of final payment from Town will constitute an agreement by Subrecipient to release and forever discharge Town, its agents, employees, officers, representatives, affiliates, successors and assigns from any and all claims, demands, damages, liabilities, actions, causes of action or suits of any nature whatsoever, which Subrecipient has at thet time of acceptance of final payment or may thereafter have, arising out of, in connection with or in any way relating to any and all injuries and damages of any kind as a result of or in any way relating to this Agreement. The Subrecipient's obligations to Town under this Agreement shall not terminate until all closeout requirements are completed to the satisfaction of Town. Such requirements shall include submitting final reports to Town and providing any closeout-related information requested by Town by the deadlines specified by Town. This provision shall survive the expiration or termination of this Agreement. Article V. Compliance with Grant Agreement and Applicable Laws. Section. 5.1. General Compliance. Subrecipient shall perform all Approved Activities funded by this Agreement in accordance with this Agreement, the award agreement between Town and the US Department of Treasury, and all applicable federal, state and local requirements, including all applicable statutes, rules, regulations, executive 26 of 40 orders, directives or other requirements. Such requirements may be different from Subrecipient's current policies and practices. Town may assist Subrecipient in complying with all applicable requirements. However, Subrecipient remains responsible for ensuring its compliance with all applicable requirements. Section. 5.2. Expenditure Authority. This Agreement is subject to thel laws, regulations, and guidance documents authorizing and mplementing the ARP/CSLFRF grant, including, but not limited to, thei following: Authorizing Statute. Section 603 of the. Social Security Act (42 U.S.C. 803), as added by section 9901(a) of the American Rescue Plan Act of 2021 (Pub. L. No. 117-2). Implementing Regulations. Subpart A of 31 CFR Part 35 (Coronavirus State and Local Fiscal Recovery Funds), as adopted in the Coronavirus State and Local Fiscal Recovery Funds interim final rule (86 FR 26786, applicable May 17, 2021 through March 31, 2022) and final rule (87 FR 4338, applicable January 27, 2022 through the end of the. ARP/CSLFRF award term), and other subsequent regulations implementing Section 603 of the Social Security Act (42 U.S.C. 803). Guidance Documents. Applicable guidance documents issued from time to time by the US Department of Treasury, including the currently applicable version of the Compliance and Reporting Guidance: State and Local Fiscal Recovery Funds.1 This Agreement is also subject to all applicable laws of the State of North Carolina. Section. 5.3. Federal Grant Administration Requirements. Subrecipient shall comply with the Uniform Administrative Requirements, Cost Principles, and. Audit Requirements. for Federal Awards, 2 CFR Part 200 (UG), as adopted by the Department of Treasury at 2 CFR Part 1000 and as set forth in the Assistance Listing for ARP/CSLFRF (21.027). These requirements dictate how Subrecipient must administer the subaward and how Town must oversee Subrecipient. The applicable UG provisions are as follows: Subpart A, Acronyms and Definitions Subpart B, General provisions Subpart C, Pre-Federal Award Requirements and Contents of Federal Awards (except 2 CFR 200.204, .205, .210, and 213) Subpart D, Post Federal; Award Requirements (except 2 CFR 200.305(b)(8) & (9), .308, .309, and .320(c)(4)) Subpart E, Cost Principles Subpart F, Audit Requirements 2 CFR Part 25 (Universal Identifier & System for Award Management) 2 CFR Part 170 (Reporting Subaward and Executive Compensation Information) 2 CFR Part 180 (OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Non- procurement) Subrecipient shall document compliance with UG requirements, including adoption and implementation of all required policies and procedures, within thirty (30) days oft the execution of this Agreement and during all subsequent reviews during the term of the Agreement. Town may provide sample policies or other assistance to Subrecipient in meeting these compliance requirements. Regardless of Town's assistance, it is the Subrecipient's responsibility to properly comply with all UG requirements. Failure to do SO may result in termination of the Agreement by Town. Section. 5.4. Procurement Requirements. I htps/homereasunysonlleASSREcompianseankeprtne-Gudncendt: 27 of40 (a) Federal. Consistent with UG compliance requirements, including the standards in 2 CFR 200.318 for the acquisition of property, equipment, supplies, or: services required under this Agreement, Subrecipient shall adopt and enact procurement procedures. Subrecipient's documented procurement procedures must conform to the procurement standards identified in Subpart D of 2 CFR Part 200 Procurement Standards). Such standards include, but are not limited to, the following: 1. All procurement transactions for property or services shall be conducted in a manner providing full and open competition, consistent with standards outlined in 2 CFR 200.320(1)-(3) and (5), which allows for non-competitive procurements only if either (1) thei item is below the micro-purchase threshold; (2) the item is only available from a single source; (3) the public exigency or emergency will not permit a delay from publicizing a competitive solicitation; or (4) after solicitation of a number of sources, competition is determined inadequate. 2. Subrecipient shall maintain oversight to ensure that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. 3. Subrecipient shall maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts in conformance with 2 CFR 200.318(c). Subrecipient shall immediately disclose in writing to Town any potential conflict of interest affecting the awarded funds in accordance with 2 CFR 200.112. 4. Pursuant to 2 CFR 200.321, Subrecipient shall take all necessary affirmative steps to assure that minority ousinesses, women's business enterprises, and labor surplus area firms are used when possible. 5. Subrecipient shall maintain records sufficient to detail the history of procurement. These reçords will include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price." 2 CFR 200.318(i). (b) Local. In addition to the requirements described in subsection (a), the Subrecipient shall comply with the following: 1. Reporting. Subrecipient shall document, in its quarterly report to Town, the status of all contracts executed in connection with this Agreement. 2. Town review of solicitations. Except for micro-purchases made pursuant to 2 CFR 200.320(a)(1) or procurements by small purchase procedures pursuant to 2 CFR 200.320(a)(2), if Subrecipient proposes to enter into any contract for the performance of any of the Approved Activities under this Agreement, then the Subrecipient shall forward to Town a copy of any solicitation (whether competitive or non- competitive) at least fifteen (15) days prior to the publication or communication of the solicitation. Town will review the solicitation and provide comments, if any, to Subrecipient within three (3) business days. Failure to respond within three (3) business days does not constitute approval by the Town. Consistent with 2 CFR 200.324, Town will review the solicitation for compliance with applicable procurement standards. Town's review and comments shall not constitute a binding approval of the solicitation. Regardless of Town's review, Subrecipient remains bound by all applicable laws, regulations, and Agreement terms. If during its review Town identifies any deficiencies, then Town will communicate those deficiencies to Subrecipient as quickly as possible within the three (3) business day window outlined above. 3. Town review of contracts. Except for micro-purchases pursuant to 2 CFR 200.320(a), if Subrecipient proposes to enter into any contracts for the performance of any of the Approved Activities under this Agreement, then Subrecipient shall forward to Town a copy of the written contract prior to contract execution. Town shall review the unexecuted contract for compliance with applicable requirements and provide comments, if any, to Subrecipient within three (3) business days. Failure to respond within three (3) business days does not constitute approval by the Town. Consistent with 2 C.F.R. $200.324, Town will 28 of 40 review the unexecuted contract for compliance with the procurement standards outlined in 2 C.F.R. $5200.318 through 200.327 as well as. Appendix II to 2 C.F.R. Part 200. Town's review and comments shall not constitute an approval oft the contract. Regardless of Town's review, Subrecipient remains bound by all applicable laws, regulations, and Agreement terms. If during its review Town identifies any deficiencies, then Town will communicate those deficiencies to Subrecipient as soon as possible within thet three (3) business day window outlined above. Subrecipient must correct the noted deficiencies before executing the contract. (c) Mandatory Contract Provisions, Subrecipient must include contract provisions required by UG and other state and federal laws and regulations, and as otherwise dictated by Town. Section 5.5. Subawards. In executing this Agreement, Subrecipient may not enter a subaward without prior written approval from Town. Section 5.6. Property Management. All real property acquired or improved, and equipment or supplies purchased in whole or in part with ARP/CSLFRF funds, must be used, insured, managed, and disposed of in accordance with 2 CFR 200.311 through 2 CFR 200.316. [See the Town of Newland's Property Management Policy for more information.) Section 5.7 Program Income. If Subrecipient earns program income, as defined in 2 CFR 200.1 during the term of the subaward, it must segregate the gross proceeds of the program income and follow the provisions in 2 CFR 200.307. [See the Town of Newland's Program Income Policy for more information.) Section, 5.8. Federal Restrictions on Lobbying, Subrecipient shall comply with the restrictions on lobbying in 31 CFR Part 21. Pursuant to this regulation, Subrecipient may not use anyf federal funds to pay: any person to influence or attempt 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 any of the following covered federal actions: the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. Subrecipient shall certify in writing that Subrecipient has not made and will not make any payment prohibited by these requirements using thet form provided in Exhibit D (Lobbying Certifications). Section. 5.9. Universal Identifier and System for Award Management (SAM). Subrecipient shall obtain, and provide to the Town, a unique entity identifier assigned by the System for Award Management (SAM), which is accessible at www.sam.gov. Section. 5.10. Equal Opportunity & Other Requirements. Subrecipient shall adopt and enact a nondiscrimination policy consistent with the requirements in this section. Civil Rights Laws. Subrecipient shall comply with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 55 2000d et seq.) and Treasury's implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the basis of race, color, or national origin under programs or activities receiving federal financial assistance. Fair Housing Laws. Subrecipient shall comply with the Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 55 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, familial status, or disability. Disability Protections. Subrecipient shall comply with section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination on the basis of disability under any program or activity receiving federal financial assistance. 29 of4 40 Age Discrimination. Subrecipient shall comply with the. Age Discrimination Act of 1975 (42 U.S.C. SS 6101 et seq.), and Treasury's implementing regulations at 31 CFR Part 23, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance. Americans with Disabilities Act. Subrecipient shall comply with Title II of the Americans with Disabilities Act of 1990 (42 U.S.C. SS 12101 et seq.), which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or instrumentalities or agencies thereto. Section. 5.11. Suspension and Debarment. Subrecipient shall comply with the Office of Management and Budget (OMB) Guidelines to Agencies on Governmentwide Debarment and Suspension Non-procurement) in 2 CFR Part 180, as adopted by the U.S. Department of Treasury at 31 CFR Part 19. Subrecipient represents that neither it, nor any of its principals has been debarred, suspended, or otherwise determined ineligible to participate in federal assistance awards or contracts. Subrecipient further agrees that it will notify Town immediately if it or any of its principals is placed on the list of parties excluded from federal procurement or non-procurement programs available at www.sam.gov. Section. 5.12. Federal Funding Accountabillty and Transparency Act of 2006. Subrecipient shall provide Town with all information requested by Town to enable Town to comply with the reporting requirements of the Federal Funding Accountability and Transparency, Act of 2006 (31 U.S.C. 6101 note). Section. 5.13. Licenses, Certifications, Permits, Accreditation. Subrecipient shall obtain and keep current any license, certification, permit, or accreditation required by federal, state, or local law and shall submit to Town proof of any licensure, certification, permit or accreditation upon request. Section. 5.14. Publications. Any publications produced with funds from this Agreement shall display thei following language: "This project [is beingl [was] supported, in whole or in part, by federal award number [enter project FAIN] awarded to Town of Newland, North Carolina by the U.S. Department of the Treasury." Section 5.15. Program for Enhancement of Contractor Employee Protections. Subrecipient is hereby notified that they are required to: inform its employees working on any federal award that they are subject to the whistleblower rights and remedies of the program; inform its employees in writing of employee whistleblower protections under 41 U.S.C $4712 in the predominant native language of the workforce; and include such requirements in any agreement made with a subcontractor or subgrantee. Section 5.16. Prohibition on Certain Telecommunication and Video Surveillance Services or Equipment. Pursuant to 2 CFR 200.216, Subrecipient shall not obligate or expend funds received under this Subaward to: (1) procure or obtain; (2) extend or renew a contract to procure or obtain; or (3) enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services (as described in Public Law 115-232, section 889) as a substantial or essential component of any system, or as a critical technology as part of any system. Section 5.17. Use of Name. Neither party to this Agreement shall use the other party's name, trademarks, or other logos in any publicity, advertising, or news release without the prior written approval of an authorized representative of that party. The parties agree that each party may use factual information regarding the existence and purpose of the relationship that is the subject oft this Agreement for legitimate business purposes, to satisfy any reporting and funding obligations, or as required by applicable law or regulation without written permission from the other party. In any such statement, the relationship of the parties shall be accurately and appropriately described. Section 5.18. Highest Compensated Officers. The names and total compensation of the five most highly compensated officers of Subrecipient shall be listed if the Subrecipient in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities 30 of 40 Exchange Act of 1934 (15 U.S.C. SS 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. See FFATA S 2(b)(1) Code of 1986. If this requirement applies to Subrecipient, Subrecipient will submit the list of its five most highly compensated officers to Town within thirty (30) days of the execution of this Agreement and yearly thereafter during the. Agreement term. Section 5.19. Statement of Assurances. Subrecipient certifies compliance with SF 424B (Statement of Assurances - Non-Construction) and SF424D Statement of Assurances - Construction). Section 5.20. Drug-free Workplace Requirements. Section 5.21. Stevens Amendments Requirements. Subrecipient shall identify that federal assistance funds were used to fund Approved Activities under this Agreement in any publicity and /or signage relating to the funded project or program. Article VI. Cooperation in Monitoring and Evaluation. Section. 6.1. Town Responsibilities. Town shall monitor, evaluate, and provide guidance and direction to Subrecipient in the conduct of Approved Activities performed under this Agreement. Town must determine whether Subrecipient has spent funds in accordance with applicable laws, regulations, including the federal audit requirements and agreements and shall monitor the activities of Subrecipient to ensure that Subrecipient has met such requirements. Town may require Subrecipient to take corrective action if deficiencies are found. The type and degree of monitoring activities depends on the results of the Subrecipient Risk Assessment, as detailed in Town's Subaward and Monitoring Policy for the expenditure of ARP/CSLFRF funds, see Exhibit E (Subaward Policy). The following specific monitoring activities apply to this Agreement: [LIST APPROPRIATE MINIMUM MONITORING ACTIVITIES HERE - REFERENCE LISTS IN SUBAWARD POLICY. IF MEDIUM OR HIGH RISK MONITORING APPLIES, ADD THE FOLLOWING DETAILED INFORMATION: The nature of the additional requirements; (2) The reason why the additional requirements are being imposed; (3) The nature of the action needed to remove the additional requirement, if applicable; (4) The time allowed for completing the actions if applicable; and (5) The method for requesting reconsideration of the additional requirements imposed.] Section. 6.2. Subrecipient Responsibilities. (a) Cooperation with Town Oversight. Subrecipient shall permit Town to carry out monitoring and evaluation activities, including any performance measurement system required by applicable law, regulation, funding sources guidelines or by the terms and conditions of the applicable grant award, and Subrecipient agrees to ensure, to the greatest extent possible, the cooperation of its agents, employees and board members in such monitoring and evaluation efforts. This provision shall survive the expiration or termination of this Agreement. (b) Cooperation with Audits. Subrecipient shall cooperate fully with any reviews or audits of the activities under this Agreement by authorized representatives of Town, the North Carolina State Auditor, the US Department of Treasury, and the US Government Accountabillity Office. Subrecipient agrees to ensure to the extent possible the cooperation of its agents, employees, and board members in any such reviews and audits. This provision shall survive the expiration or termination oft this Agreement. Section 6.3. Interventions. If Town determines that Subrecipient is not in compliance with this Agreement, Town may initiate an intervention, in accordance with 2 CFR 200.208 and 2 CFR 200.339. The degree ofs Subrecipient's performance or compliance deficiency will determine the degree of intervention. All possible interventions are listed below and will depend on the degree of deficiency in Subrecipient's performance or compliance deficiency, If Town determines that an intervention is warranted, it shall provide written notice to Subrecipient of the intervention within thirty (30) days of the completion of a report review, desk review, onsite review, audit review, 31 of 40 or procedures engagement review or as soon as possible after the Town otherwise learns of a compliance or performance deficiency related to the execution of this Agreement. The written notice shall notify Subrecipient of the following related to the intervention: (1) The nature of the additional requirements; (2) The reason why the additional requirements are being imposed; (3) The nature of the action needed to remove the additional requirement, ifa applicable; (4) The time allowed for completing the actions if applicable; and (5) The method for requesting reconsideration of the additional requirements imposed. Town may impose the following interventions on Subrecipient, based on the level of the compliance or performance deficiency that Town determines: Level 1 Interventions. These interventions may be required for minor compliance or performance issues. (1) Subrecipient addresses specific internal control, documentation, financial management, compliance, or performance issues within a specified time period (2) More frequent or more thorough reporting by the Subrecipient (3) More frequent monitoring by the Town (4) Required Subrecipient technical assistance or training Level 2 Interventions. These interventions may be required for more serious compliance or performance issues. (1) Restrictions on funding payment requests by Subrecipient (2) Disallowing payments to Subrecipient (3) Requiring repayment for disallowed cost items (4) Imposing probationary status on Subrecipient Level 3 Interventions. These interventions may be required for significant and/or persistent compliance or performance issues. (1) Temporary or indefinite funding suspension to Subrecipient (2) Nonrenewal of funding to Subrecipient in subsequent year (3) Terminate funding to Subrecipient in the current year (4) Initiate legal action against Subrecipient Interventions will remain in place until the underlying performance or compliance deficiency is addressed to the sole satisfaction of the Town. Section 6.4. Records Retention and Access. Subrecipient shall maintain all records, books, papers and other documents related to its performance of Approved Activities under this Agreement (including without limitation personnel, property, financial and mediçal records) through at least December 31, 2031, or. such longer period as is necessary for the resolution of any litigation, claim, negotiation, audit or other inquiry involving this Agreement. Subrecipient shall make all records, books, papers and other documents that relate to this Agreement available at all reasonable times for inspection, review and audit by the authorized representatives of Town, the North Carolina State Auditor, the US Department of Treasury, the US Government Accountability Office, and any other authorized state or federal oversight office. Section 6.5. Key Personnel. Subrecipient shall identify all personnel who will be involved in performing Approved Activities and otherwise administering the Agreement, including at least one project manager and one fiscal officer (Key Personnel). Subrecipient shall notify Town of any changes to these personnel within thirty (30) days of the change. Key personnel names, titles, and contact information are listed in Exhibit F (Key Personnel). Article VII. Default and Termination. Section. 7.1. Termination for Cause. Town may terminate this Agreement for cause after three days written notice. Cause may include misuse of funds, fraud, lack of compliance with applicable rules, laws and regulations, failure to perform on time, or failure to comply with any of the requirements of this Agreement. 32 of 40 Sec. 7.2. Termination Without Cause. Town may terminate this Agreement for any reason, in its sole discretion, by providing Subrecipient with thirty (30) days prior written notice. Sec. 7.3. Termination by Mutual Agreement. Town and Subrecipient may agree to terminate this Agreement for their mutual convenience through a written amendment to this Agreement. The amendment will state the effective date of the termination and the procedures for proper closeout of the Agreement. Sec. 7.4. Termination Procedures. If this Agreement is terminated, Subrecipient may not incur new obligations for thet terminated portion ofi the Agreement after Subrecipient has received the notification of termination. Subrecipient must cancel as many outstanding obligations as possible. Costs incurred after receipt of the termination notice will be disallowed. Subrecipient shall not be relieved ofl liability to Town because of any breach of Agreement by Subrecipient. Town may, to the extent authorized by law, withhold payments to Subrecipient for the purpose of set-off until the exact amount of damages due Town from Subrecipient is determined. Article VIII. General Conditions. Section. 8.1. Indemnification. To the extent permitted by law, Subrecipient agrees to indemnify and hold harmless Town, and any of its officers, agents and employees, and the Federal Government from any claims of third parties arising out of any act or omission of Subrecipient in connection with the performance of this Agreement. Section. 8.2. Insurance. Subrecipient must maintain insurance policies with minimum limits as follows: [INDICATE YOUR LOCAL GOVERNMENT'S INSURANCE REQUIREMENTS BELOW.] Coverage Minimum Limits Town may require higher limits if warranted by the nature of this Agreement and the type of activities to be provided. The insurer must provide Town with a Certificate of Insurance reflecting the coverage required in this Section. All Certificates of Insurance shall reflect thirty (30) days written notice by thei insurer in the event of cancellation, reduction, or other modification of coverage. In addition to this notice requirement, Subrecipient must provide Town prompt written notice of cancellation, reduction, or material modification of coverage of insurance. IfSubrecipient fails to provide such notice, the Subrecipient assumes sole responsibility for all losses incurred by Town for which insurance would have provided coverage. Thel insurance policies must remain in effect during the term of this Agreement. Subrecipient shall name Town as an additional insured except as to workers compensation insurance and it is required that coverage be placed with an "A" rated insurance company acceptable to Town. If Subrecipient fails at any time to maintain and keep in force the required insurance, Town may cancel and terminate the Agreement without notice. Section. 8.3. Venue and Jurisdiction. Town and Subrecipient agree that they executed and performed this Agreement in Avery County, North Carolina. This Agreement will be governed by and construed in accordance with the laws of North Carolina. The exclusive forum and venue for all actions arising out of this Agreement is the appropriate division of the North Carolina General Court of Justice in Avery County. Such actions may not be commenced in, nor removed to, federal court unless required by law. Section. 8.4. Nonwaiver. No action or failure to act by Town constitutes a waiver of any ofi its rights or remedies that arise out of this Agreement, nor shall such action or failure to act constitute approval of or acquiescence in a breach of this Agreement, except as specifically agreed in writing. 33 of40 Section. 8.5. Limitation of Town Authority. Nothing contained in this Agreement may be deemed or construed to in any ways stop, limit, or impair Town from exercising or performing any regulatory, policing, legislative, governmental, or other powers or functions. Section. 8.6. Severability. If any provision of this Agreement is determined to be unenforceable in a judicial proceeding, the remainder of this Agreement will remain in full force and effect to the extent permitted by law. Section. 8.7. Assignment. Subrecipient may not assign or delegate any of its rights or duties that arise out of this Agreement without Town's prior written consent. Unless Town otherwise agrees in writing, Subrecipient and all assigns are subject to all Town's defenses and are liable for all Subrecipient's duties that arise from this Agreement and all Town's claims that arise from this Agreement. Section. 8.8. Integration. This Agreement contains the entire agreement between the parties pertaining to the subject matter of this Agreement. With respect to that subject matter, there are no promises, agreements, conditions, inducements, warranties, or understandings, written or oral, expressed, or implied, between the parties, other than as set forth or referenced in this Agreement. Section. 8.9. Notices. All notices and other communications required or permitted by this Agreement must be in writing and must be given either by personal delivery, approved carrier, email, or mail, addressed as follows: (a) fto the Town: 301 Cranberry Street, Newland, North Carolina 28657 mamgeretownoinewandos (b) Ifto the Subrecipient: [ADDRESS HERE] [EMAIL HERE] IN WITNESS WHEREOF, the parties have caused this Agreement to the signed by their duly constituted legal representatives and is effective as of the Effective Date. [INCLUDE SIGNATURE LINES AND ATTESTATIONS HERE] Adopted this the 1st day of April 2025. 34 of 40 Exhibit A: Subaward Data Subrecipient Name [Insert Subrecipient name, which must match the name associated with its unique entity identifier] Subrecipient Unique Entityl Identifier: [Insert Subrecipient Unique Entity Identifier] Federal Award Identification Number (FAIN): [Insert Federal Award Identification #] Federal Award Date of Award to the Recipient by the Federal [Insert date] Agency: Subaward Period of Performance Start Date: [Insert date] Subaward Period of Performance End Date: [Insert date] Amount of Federal Funds Obligated by this Action by the [Insert Total Agreement Funds] Pass-Through Entity to the Subrecipient: Total Amount of Federal Funds Obligated to the Subrecipient [lf additional federal awards have been by thel Pass-Through Entity Including the Current Obligation: awarded to the Subrecipient, insert total amount, including the Total Agreement Funds specified above] Total Amount oft the Federal Award Committed to the [Insert amount] Subrecipient by the Pass-Through Entity: Federal Award Project Description: [Insert description] Name of Federal Awarding Agency: Department of Treasury Name of Pass-Through Entity: Town of Newland, North Carolina Contact Information for Town of Newland Authorizing [Insert contact information! Official: Contact Information for City Project Manager: [Insert contact information) CFDA Number and Name: 21.027- Coronavirus State and Local Fiscal Recovery Funds Identification of Whether Subaward is R&D: Not R&D Subrecipient Indirect Costs: See Exhibit C - Approved Budget 35 of 40 Exhibit B: Approved Activities [DESCRIBE N DETAIL WHAT THE SUBRECIPIENT WILL DO WITH THE MONEY] 36 of 40 Exhibit C: Approved Budget Consult the Town's Allowable Costs and Cost Principles Policy and the ARP/CSLFRF Final Rule for specific directives and limitations on cost items. REVENUES Total Revenue Town of Newland Coronavirus State and Local Fiscal $ Recovery Funds Awarded OMB Uniform Guidance Federal Total Budget Cost Categories Awards Reference 2 CFR 200 Expenditures 1. Personnel (Salary and' Wages) $ 2. Fringe Benefits $ 3. Travel $ 4. Equipment $ 5. Supplies $ 6. Contractual Services and Subawards $ 7. Consultant (Professional Service) $ 8. Construction $ 9. Occupancy (Rent and Utilities) $ 10. Research and Development (R&D) $ 11. Telecommunications $ 12. Training and Education $ 13. Direct Administrative Costs $ 14. Miscellaneous Costs $ a. Advertising and public relations costs b. Materials and supplies costs, including costs of computing devices 15. Add additional cost items as needed 16. Total Direct Costs (add lines 1-15) $ 17. Total Indirect Costs Rate %: $ Base*: 18. Total Costs Federal Grant Funds (Lines 16 and 17) $ MUST EQUAL REVENUE TOTALS ABOVE * The Base is modified direct total costs (MTDC) oft the subaward project. Pursuant to 2 CFR. 200.68, MTDC means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance of the subawards under the award). MTDC excludes equipment, capital expenditures charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant: support costs and the, portion ofeach subaward in excess of $25,000. Other items may only be excluded when necessary to avoid a serious inequity in the distribution of indirect costs, and with the approval ofthe cognizant agency for indirect costs. 37 of40 Exhibit D; Lobbying Certification The undersigned certifies, to the best of his or her knowledge and belief, that: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence 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, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation offact upon which reliance was plaçed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering 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. Signature of Subrecipient's Authorized Official Name and Title of Subrecipient's Authorized Official Date 38 of 40 Exhibit E: Subaward Policy [APPEND THE TOWN'S SUBAWARD POLICY HERE.] 39 Exhibit F: Key Personnel [CREATE CONTACT INFORMATION FORM HERE] OMAINFORMATONS a Administrative. Address: Invoice Address: Project Manager Name: Project Manager Title: Project Manager Email: Project Manager Phone: Fiscal Officer Name: Fiscal Officer Title: Fiscal Officer Email: Fiscal Officer Telephone: SUAEPKABIBOAOMIDNE - 4 a G M - - W - Administrative Address: Invoice. Address: Project Manager Name: Project Manager Title: Project Manager Email: Project Manager Telephone: Fiscal Officer Name: Fiscal Officer Title: Fiscal Officer Email: Fiscal Officer Telephone: 40 CAR ROI RESOLUTION TO ENACT A PROPERTY MANAGEMENT POLICY FOR ARPA GRANTS WHEREAS the Town of Newland has received an allocation of funds from the Coronavirus State and Local Fiscal Recovery Funds of H.R. 1319 American Rescue Plan Act of 2021 (ARP/CSLFRF); and WHEREAS the funds may be used for projects within these categories, to the extent authorized by state law. 1. Support COVID-19 public health expenditures, by funding COVID-19 mitigation and prevention efforts, medical expenses, behavioral healthcare, preventing and responding to violence, and certain public health and safety staff; 2. Address negative economic impacts caused by the public health emergency, including economic harms to households, small businesses, non-profits, impacted industries, and the public sector; 3. Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; 4. Provide premium pay for essential workers, offering additional support to those who have borne and will beari the greatest health risks because oftheir service in critical infrastructure sectors; and, 5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet; and WHEREAS the ARP/CSLFRF are subject to the provisions of the federal Uniform Grant Guidance, 2 CFR Sect. 200 (UG), as provided in the Assistance Listing; and WHEREAS the Compliance and Reporting Guidance for the State and Local Fiscal Recovery Funds (v4.1. June 2022) provides, in relevant part: Equipment and Real Property Management. Any purchase of equipment or real property with SLFRF funds must be consistent with the Uniform Guidance at 2 CFR Part 200, Subpart D. Equipment and real property acquired under this program must be used for the originally authorized purpose. Consistent with 2 CFR 200.311 and 2 CFR 200.313, any equipment or real property acquired using SLFRF funds shall vest in the non-Federal entity. Any acquisition and maintenance of equipment or real property must also be in compliance with relevant laws and regulations. WHEREAS Subpart D of the UG dictates title, use, management, and disposal of real property, equipment, and supplies acquired in whole or in part with ARP/CSLFRF funds; NOW, THEREFORE, BE IT RESOLVED, that the governing board of the Town of Newland hereby adopts and enacts the following UG Property Management Policy for the expenditure of ARP/CSLFRF funds. Adopted this the 1st day of April, 2025. 4 VOTE: Nay 0 Alder man Dave Calver+ Dérek A. Roberts, Mayor (absent) Attest: Gunice Buchonon Jéssica Buchanan, Town Clerk