HomeMy WebLinkAboutBiomass Grant Agreement 1
GRANT CONTRACT AGREEMENT BETWEEN
OREGON DEPARTMENT OF FORESTRY
And
Deschutes County
FEDERAL GRANT NUMBER: 10-DG-11060489-053 the American Recovery and
Reinvestment Act Funded Program (CFDA Number 10.688 (Wildland Fire))
ODF PROJECT NUMBER: 4S5010-01
Deschutes County Hazardous Fuels Reduction for Energy Production
This contract is entered into between the State of Oregon acting by and through the Oregon
Department of Forestry (Grantee, hereinafter referred to as "ODF"), and Deschutes County, (Sub-
Grantee). In accordance with the terms and conditions of this contract, ODF shall sub-grant to
Deschutes County a maximum sum of $676,600 for the purpose of funding work associated with
collecting woody biomass that is produced by thinning overstocked stands and processing it for
energy production using funds provided through the United States Department of Agriculture Forest
Service American Recovery and Reinvestment Act as part of Catalog of Federal Domestic
Assistance #10.688 (hereinafter referred to as “ARRA”). This contract is contingent upon the
availability of Federal funds. The parties agree and acknowledge that their relationship is that of
independent contracting parties and that is neither an officer, employee, or agent of the State of
Oregon as those terms are used in ORS 30.265 or otherwise.
This contract, including all exhibits, constitutes the entire contract between the parties. The failure of
a party to enforce a provision of this contract does not constitute a waiver by that party of that or any
other provision. A copy of the Project Plan is hereby considered to be a part of this contract (Exhibit
A).
STATEMENT OF WORK
Deschutes County shall perform the work as set forth in the Project Plan (Exhibit A) in
accordance with the terms and conditions of this contract.
SECTION 1: TERMS AND CONDITIONS
1.1. General Assurances. In the use of ARRA funds, Deschutes County shall comply with all
applicable Federal, State, and local laws, and all regulations, policies, standards, and guidelines
provided in, but not limited to: OMB Circular A-133 entitled “Audits of States, Local Governments
and Non-Profit Organizations”; 2 CFR part 215; OMB Circular A-87, entitled “Cost Principles for
State, Local and Indian Tribal Governments”; OMB Circular A-102, Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local Governments; OMB
Federal Register Notice; Forest Service Award Provisions; Forest Service Provisions for Grants and
Cooperative Agreements Awarded Under ARRA of 2009; Oregon Revised Statutes (Chapter 477,
Fire Protection of Forests and Vegetation) http://www.leg.state.or.us/ors/477.html and associated
administrative rules (OAR Chapter 629, Division 43)
http://arcweb.sos.state.or.us/rules/OARS_600/OAR_629/629_043.html; the Oregon Forest
Practices Act (ORS 527) http://www.leg.state.or.us/ors/527.html; and, administrative rules (OAR
629, Divisions 600-680 http://arcweb.sos.state.or.us/rules/OARS_600/OAR_629/629_tofc.html.
Copies of OMB circulars may be found at: http://www.whitehouse.gov/omb/circulars/index.html.
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1.2. Impermissible Uses. Grant funds are not available to retire any debt, supplant or replace
funds or other resources that would otherwise have been made available for the Project, to
construct new buildings or remodel existing facilities, to purchase land, to purchase buildings, to
provide or support for activity outside the scope or timeframe of the project, or to cover any costs
incurred prior to the effective date of this contract or after termination of this contract.
1.3. Term of Contract. This Contract is effective on the date it has been signed by all parties
and all required State of Oregon approvals have been obtained, and shall continue in full force
until December 31, 2011, unless extended by written contract of all parties or terminated per the
following contract provisions.
1.3.1. Inadequate or Non-performance. ODF reserves the right to terminate this grant award for
inadequate or non-performance of the Project Plan, and Sub-Grantee agrees to return any
grant funds in the event the terms, conditions, or certifications of this contract are not met to
the satisfaction of ODF.
1.3.1.1. Inadequate performance is defined as problems in the administration or delivery of
accomplishments. ODF shall provide written notice to Deschutes County describing the
performance deficiency. ODF may provide Deschutes County with a time period for
corrective action not to exceed ninety (90) calendar days from the date of effective
notice.
1.3.1.2. Non-performance is described as specific provisions provided in the contract, Federal
regulations, and State regulations (particularly the Forest Practices Act) governing this
contract. ODF shall provide Deschutes County with a time period for corrective action
not to exceed thirty (30) calendar days from the date of effective notice.
1.3.2. Notice of Termination. This contract may be terminated by either party, or performance
suspended by either party, with thirty (30) calendar days’ advance notice in writing under
the following conditions:
1.3.2.1. In the event that funds for the continuation of the program become, for any reason,
unavailable or so substantially curtailed as to make continued performance an
unreasonable burden upon either party.
1.3.2.2. In the event that Deschutes County determines that the grant activities herein
contemplated are no longer appropriate services to be provided by the Deschutes
County.
1.3.3. Responsibilities after Termination. Termination of this contract shall not affect the
Deschutes County obligations under this contract or ODF’s right to enforce this contract in
accordance with its terms. Specifically, termination of this contract shall not affect the
Deschutes County representations and warranties, reporting obligations, indemnification
obligations, obligations regarding use of the grant funds, record-keeping, audit, access and
confidentiality obligations, obligations to comply with applicable federal requirements, or the
ODF’s right to recover from Deschutes County grant funds actually received by Deschutes
County. In addition, termination of this contract shall not affect ODF’s obligation to
reimburse Deschutes County, or Deschutes County’s right to obtain reimbursement from
ODF, in accordance with Section 1.6 of this contract, for all actual allowable costs
necessarily incurred by Deschutes County, during the period commencing on the effective
date of this contract and ending on the termination date of this contract.
1.4. Fiscal Accountability, Financial Records, and Records Retention. Unless applicable
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federal law requires Deschutes County to utilize a different accounting system, Deschutes County
shall create and maintain all fiscal records in accordance with generally accepted accounting
principles and in sufficient detail to permit ODF, the Secretary of State’s Office of the State of
Oregon, the United States Department of Agriculture Forest Service, and their authorized
representatives to verify how grant funds were used.
1.4.1. Expenditures. All grant expenditures shall be documented in such a way as to readily
identify and distinguish expenditures specific to this contract from other federal or non-
federal funding sources.
1.4.2. Funds Received. Deschutes County shall assume liability for all funds received pursuant
to this contract and shall assume responsibility for repayment to ODF of any expenditures
not authorized by the contract.
1.4.3. Documentation. Deschutes County shall retain all documents (whether in electronic or
hard copy form) relevant to the contract (fiscal, program, and administrative) for a period of
at least seven (7) years from the date of termination of the contract.
1.5. Audits. Deschutes County will comply with requirements and standards under OMB
Circular A-133. In the event that Deschutes County expends $500,000 or more per year in federal
funds, an audit pursuant to this circular is required.
1.5.1. Qualify for OMB Circular A-133 Audit. If Deschutes County qualifies for an OMB Circular
A-133 audit, Deschutes County shall notify ODF in writing of such qualification promptly
after Deschutes County determines that it so qualifies. Deschutes County shall report the
grant funds received hereunder as pass-through funds on Deschutes County Schedule of
Expenditures of Federal Awards, and promptly after completion of the audit shall furnish
ODF with a written copy of all audit findings applicable to Deschutes County project or notify
ODF in writing that the audit resulted in no findings applicable to Deschutes County project.
Deschutes County shall assist in all compliance audits of Deschutes County’s project
conducted by ODF, the Secretary of State Office of the State of Oregon, the United States
Department of Agriculture Forest Service, or their duly authorized representatives.
1.5.2. Record Availability. At any time during normal business hours, all records including
landowner participant, program, and financial records pertaining to this contract, shall be
available and accessible to the ODF or any of their duly authorized representatives for the
purpose of audit, monitoring, or examination.
1.5.3. Record Retention. If there are unresolved audit questions at the end of the seven-year
period, Deschutes County shall retain the records until Deschutes County receives notice
from ODF that the audit questions have been resolved.
1.6. Basis of Payment. This is a reimbursable grant program. Sub-Grantee must complete or
make progress on the Project Plan before grant funds will be disbursed. Grant funds are made on a
reimbursable basis, after the Sub-Grantee has completed Project Plan work on the project. Sub-
Grantee may request disbursement of the grant funds for up to a three month period, but no more
than once per month, using the Request for Reimbursement, Financial and Accomplishment Report
form (Exhibit B).
1.6.1. Funds Disbursement. As described in more detail in Exhibit A, ODF shall disburse grant
funds within forty-five (45) calendar days of receiving a properly completed, including, but
not limited to, being true and accurate Request for Reimbursement, Financial and
Accomplishment Report form from Deschutes County. The invoice shall also include the
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number of acres accomplished, the project targets, the number of workers, and the total
number of hours invoiced.
1.6.2. Recovery of Grant Funds. In the event of Deschutes County’s default hereunder and in
addition to any other remedies that may be available to ODF, ODF may demand repayment
of any or all of the grant funds previously disbursed to Deschutes County hereunder and
Deschutes County shall repay such sums to ODF upon ODF’s demand.
1.7. Amendments. Amendments to this Contract, including, but not limited to the following types
of changes, shall require a written Amendment between Deschutes County and ODF.
1.7.1. Significant Change. A significant change, as determined by ODF, in program content or
scope of work as described in the attached (Exhibit A) project application materials.
1.7.2. Contract Provisions. A change in any of the provisions of this contract.
1.7.3. Term of Contract. A change in the Term of the contract (as outlined in section 1.3) to
extend the time period of the contract.
1.7.4. Expanded Project Budget. A change in the Expanded Project Budget (Exhibit C) due to a
shift between budget categories in excess of 10% of the grant ($67,660).
1.8. Reporting Requirements. Request for Reimbursement, Financial and Accomplishment
Report (Exhibit B) will be submitted to the Field Project Coordinator at the ODF Prineville] office.
1.9. Program Income. Except as provided herein, Deschutes County may not collect cash
associated with activities carried out under this grant. If, for any reason, program income is
anticipated, Deschutes County shall provide ODF with a written description of such resource. Prior
approval by ODF and Federal representatives will be required before any source of program
income can be collected. Examples of possible program income include commercial timber sales
and biomass utilization revenues.
1.10. Terms of Contract. Deschutes County is subject to the terms of that certain contract
between ODF and the United States Forest Service, attached hereto as Exhibit C.
SECTION 2: PROGRAM IMPLEMENTATION GUIDANCE
2.1. Project Site Inspection. Sub-Grantee agrees to allow the ODF the right to periodic
inspection, without notice to Deschutes County, of the proposed project site.
2.2. Publications. In addition to the requirement in Section 5.16, any product, publication,
and/or publicity must list the ODF and the United States Department of Agriculture Forest Service
as grant sponsors and/or financial contributors to the project. ODF will receive, from Deschutes
County, two (2) copies of any publication or report arising from the use of these grant funds.
2.3. Forest Practices Act Compliance. All biomass treatment areas are considered forest
operations and must comply with the Oregon Forest Practices Act of 1971 rules and the Oregon
Revised Statutes (Chapter 477, Fire Protection of Forests and Vegetation). These rules apply to
timber harvesting, reforestation, road construction and repair, slash disposal (treetops, branches,
brush, and tree limbs), chemical use and stream, and lake and wetland protection. Sensitive
resource sites, such as bird nesting and roosting locations, and threatened and endangered
species sites are also protected under the rules. Deschutes County must notify ODF of any forest
activity at least fifteen (15) calendar days before beginning such activity by completing a Notification
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of Operations form at the Prineville ODF office.
2.4. Suspension and Debarment. Deschutes County certifies pursuant to 31 CFR Part 19 that
neither it nor its contractors are presently debarred, suspended, proposed for debarment, declared
ineligible, or voluntarily excluded from participation in this grant contract by any federal department
or agency. Contractor(s) refers to those contracted by Deschutes County to conduct the work in
the grant.
2.5. Confidentiality. Subject to Section 2.5.2, each party shall use reasonable efforts to
maintain the confidentiality of any Confidential Information received from the other party and
shall not use such Confidential Information except in performing its obligations pursuant to this
Contract. For purposes of Section 2.5, "Confidential Information" means information marked or
designated in writing by either party as “confidential” prior to initial disclosure.
2.5.1. Exceptions. The confidentiality obligations imposed by Section 2.5 do not apply to: (a)
information that becomes part of the public domain through lawful means and without
breach of any confidentiality obligation by the Grantee; (b) information subsequently and
rightfully received from third parties who have the necessary rights to transfer the
information without any obligation of confidentiality; (c) information that was known to the
Grantee prior to the Effective Date without obligation of confidentiality; (d) information
that is independently developed by Grantee and documented in writing without use of, or
reference to, any Confidential Information of the other party; or (e) information required
to be disclosed by compulsory judicial or administrative process or by law or regulation;
provided that if either party is required to disclose Confidential Information under clause
(e), that party shall first give the other party notice and shall provide such information as
may reasonably be necessary to enable the other party to take action to protect its
interests.
2.5.2. Public Records. ODF may disclose Confidential Information to the extent disclosure is
required by the Oregon Public Records Law (ORS 192.410 to 192.505). If ODF receives
from a third party any request under the Oregon Public Records Law for the disclosure
of Sub-Grantee Confidential Information, ODF shall notify Sub-Grantee within a
reasonable period of time of the request. Sub-Grantee is exclusively responsible for
defending Sub-Grantee’s position concerning the confidentiality of the requested
information. ODF is not required to assist Sub-Grantee in opposing disclosure of
Confidential Information.
SECTION 3: GENERAL PROVISIONS
3.1 Force Majeure. No party shall be held responsible for delay or default caused by fire, civil
unrest, natural causes, and war that is beyond that party’s reasonable control. Each party shall,
however, make all reasonable efforts to remove or eliminate such cause of delay or default and
shall, upon the cessation of the cause, diligently pursue performance of its obligations under this
contract.
3.2 Indemnification. Deschutes County assumes all responsibility for compliance with the
regulations and guidelines and agrees to defend or cause to be defended and to indemnify and
hold harmless (subject to any limitation imposed by ORS chapter 180) the State of Oregon, the
Oregon Board of Forestry, the State Forester, and the Oregon Department of Forestry, it’s officers,
agents, employees, and members against any and all claims, suits, liens, damages, or causes of
action for damages of any nature resulting from or arising out of the project activities of Deschutes
County, its contractors, subcontractors, agents, or employees under the activities of this contract.
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3.3 Insurance.
3.3.1. Required Insurance. Deschutes County shall obtain at Deschutes County’s expense
the insurance specified in this section prior to performing under this Contract and shall
maintain it in full force and at its own expense throughout the duration of this Contract
and all warranty periods. Deschutes County shall obtain the following insurance from
insurance companies or entities that are authorized to transact the business of
insurance and issue coverage in State and that are acceptable to Agency.
3.3.1.1. Workers Compensation. All employers, including Deschutes County, that employ
subject workers, as defined in ORS 656.027, shall comply with ORS 656.017 and
shall provide workers' compensation insurance coverage for those workers, unless
they meet the requirement for an exemption under ORS 656.126(2). Deschutes
County shall require and ensure that each of its contractors complies with these
requirements.
3.3.1.2. Commercial General Liability. Commercial General Liability Insurance covering bodily
injury, death and property damage in a form and with coverages that are satisfactory to
the State. This insurance shall include personal injury liability, products and completed
operations. Coverage shall be written on an occurrence basis. Deschutes County shall
provide proof of insurance of not less than the following amounts as determined by the
Agency.
3.3.1.2.1. Bodily Injury/Death.
Per occurrence limit for any single claimant:
From commencement of the Contract term to June 30, 2010: $1,500,000.
July 1, 2010 to June 30, 2011: $1,600,000.
July 1, 2011 to June 30, 2012: $1,700,000.
Per occurrence limit for multiple claimants:
From commencement of the Contract term to June 30, 2010: $3,000,000.
July 1, 2010 to June 30, 2011: $3,200,000.
July 1, 2011 to June 30, 2012: $3,400,000.
3.3.1.2.2. Property Damage.
Per occurrence limit for any single claimant:
From commencement of the Contract term to June 30, 2010: $100,000.
From July 1, 2010, and every year thereafter the adjusted limitation as determined
by the State Court Administrator pursuant to Oregon Laws 2009, chapter 67,
section 5 (Senate Bill 311).
Per occurrence limit for multiple claimants:
From commencement of the Contract term to June 30, 2010: $500,000.
From July 1, 2010, and every year thereafter the adjusted limitation as determined
by the State Court Administrator pursuant to Oregon Laws 2009, chapter 67,
section 5 (Senate Bill 311).
3.3.1.3. Automobile Liability. Automobile Liability Insurance covering all owned, non-owned, or
hired vehicles. This coverage may be written in combination with the Commercial
General Liability Insurance (with separate limits for “Commercial General Liability” and
“Automobile Liability”). Deschutes County shall provide proof of insurance of not less
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than the following amounts as determined by the Agency:
Per occurrence limit for any single claimant:
From commencement of the Contract term to June 30, 2010: $1,500,000.
July 1, 2010 to June 30, 2011: $1,600,000.
July 1, 2011 to June 30, 2012: $1,700,000.
Per occurrence limit for multiple claimants:
From commencement of the Contract term to June 30, 2010: $3,000,000.
July 1, 2010 to June 30, 2011: $3,200,000.
July 1, 2011 to June 30, 2012: $3,400,000.
3.3.1.3.1. Property Damage.
Per occurrence limit for any single claimant:
From commencement of the Contract term to June 30, 2010: $100,000.
From July 1, 2010, and every year thereafter the adjusted limitation as determined
by the State Court Administrator pursuant to Oregon Laws 2009, chapter 67,
section 5 (Senate Bill 311).
Per occurrence limit for multiple claimants:
From commencement of the Contract term to June 1, 2010: $500,000.
From July 1, 2010, and every year thereafter the adjusted limitation as determined
by the State Court Administrator pursuant to Oregon Laws 2009, chapter 67,
section 5 (Senate Bill 311).
3.3.2. Additional Insured. The Commercial General Liability insurance and Automobile
Liability insurance required under this Contract shall include the State of Oregon, its
officers, employees and agents as Additional Insureds but only with respect to
Deschutes County's activities to be performed under this Contract. Coverage shall be
primary and non-contributory with any other insurance and self-insurance.
3.3.3. "Tail" Coverage. If any of the required insurance is on a "claims made" basis,
Deschutes County shall maintain either “tail" coverage or continuous "claims made"
liability coverage, provided the effective date of the continuous “claims made” coverage
is on or before the effective date of this Contract, for a minimum of 24 months following
the later of (i) Deschutes County’s completion and Agency’s acceptance of all Services
required under this Contract, or, (ii) The expiration of all warranty periods provided under
this Contract. Notwithstanding the foregoing 24-month requirement, if Deschutes County
elects to maintain “tail” coverage and if the maximum time period “tail” coverage reasonably
available in the marketplace is less than the 24-month period described above, then
Deschutes County shall maintain “tail” coverage for the maximum time period that “tail”
coverage is reasonably available in the marketplace for the coverage required under this
Contract. Deschutes County shall provide to Agency, upon Agency’s request, certification
of the coverage required under this section 3.3.
3.3.4. Notice of Cancellation or Change. There shall be no cancellation, material change,
potential exhaustion of aggregate limits, or non-renewal of insurance coverage(s)
without sixty (60) calendar day’s written notice from Deschutes County or its insurer(s) to
Agency. Any failure to comply with the reporting provisions of this clause shall constitute
a material breach of Contract and shall be grounds for immediate termination of this
Contract by Agency.
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3.3.5. Certificate(s) of Insurance. Deschutes County shall provide to Agency Certificate(s) of
Insurance (Exhibit D) for all required insurance before delivering any Goods and
performing any Services required under this Contract. The Certificate(s) must specify all
entities and individuals who are endorsed on the policy as Additional Insured (or Loss
Payees). Deschutes County shall pay for all deductibles, self-insured retention, and self-
insurance, if any.
3.4. Sub-Grantee’s Sole Liability. Deschutes County, pursuant to this agreement with the
State of Oregon, shall assume sole liability for Deschutes County’s breach of the
conditions of the grant, and shall, upon Deschutes County’s breach of grant conditions
that causes or requires the State of Oregon to return funds to the grantor, hold harmless
and indemnify the State of Oregon for an amount equal to the funds which the State of
Oregon is required to pay to Deschutes County.
SECTION 4: CONTACTS
4.1 ODF Field Representative. Kevin Benton, Field Project Coordinator (541-447-5658 ext.
230); Alternate: Brian Broznitisky, (541-447-5658 ext. 233);
Address: P.O. Box 670, 3501 E 3rd Street, Prineville, OR 97754
• Serve as Contract Officers Representative responsible for the field administration
oversight of this contractual agreement to ensure compliance with all terms and
provisions contained herein.
4.2 ODF Contract Monitoring and Management. Norm Miller, Salem Grant Coordinator(503-
945-7419)
Address: 2600 State Street, Salem, OR 97310
• Technical assistance on contract provisions
• Receives reports and payments requests from ODF Deschutes District for reporting
compilation and payment processing
4.3 Deschutes County Representative. Joe Stutler (541-322-7117); Katie Lighthall (541-408-
3048).
Address: Deschutes County, 61150 SE 27th Street, Bend, OR 97702
SECTION 5: PROVISIONS SPECIFIC TO ARRA
5.1 Compliance with ARRA Requirements. Sub-Grantee specifically agrees to comply
with all requirements of the American Recovery and Reinvestment Act of 2009, Pub.L.111-5
(“ARRA” or “the Act”) and the ARRA-related terms and conditions of this Contract. Sub-Grantee
understands and acknowledges that the federal stimulus process is still evolving and that new
requirements relating to ARRA compliance may still be forthcoming from the federal government
and the State of Oregon. Accordingly, Sub-Grantee specifically agrees that both it and its
contractors will comply with all current requirements and all future requirements of the federal
government and the State of Oregon while the Contract is in force.
5.2 Registration. Under Section 1512 of the Act, Sub-Grantee shall obtain a Dun and
Bradstreet Data Universal Numbering System (“DUNS”) number, and have registered with the
Central Contractor Registration (“CCR”), on or before full execution of the Contract. Sub-
Grantee shall keep its DUNS and CCR information current, while the Contract is in force.
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5.3 Reporting. Under Section 1512 of ARRA, state agencies receiving ARRA funds (ODF)
must submit a report to the federal government no later than ten (10) calendar days after the
end of each calendar quarter. This report must contain at least the information outlined below.
Accordingly, Sub-Grantee agrees to provide the State with the following information on or before
the third day following the end of the calendar quarter, in order for the State to timely provide the
required information to the federal government.
Standard data elements and federal instructions for use in complying with reporting
requirements under Section 1512 of ARRA are pending review by the federal government, and
were published in the Federal Register on April 1, 2009 [74 FR 14824 (to become part of 2 CFR
176)] See also OMB guidance memo M-09-21, Implementing Guidance for the Reports on Use
of Funds Pursuant to the American Recovery and Reinvestment Act of 2009 (June 22, 2009), as
supplemented, and any additional guidance that OMB may issue later. Final reporting rules and
an online recipient reporting tool will be provided at: www.federalreporting.gov
The Sub-Grantee shall be required to submit with invoices in addition to the requirements set
out in Section 1512 of ARRA:
• Total number of hours invoiced
• Time period of invoice
Sub-Grantee’s failure to provide complete, accurate, and timely reports shall constitute an
“Event of Default” under the contract. Upon the occurrence of an Event of Default, the Agency
may terminate the Contract upon thirty (30) calendar days prior written notice, if the default
remains uncured for five (5) calendar days following the last day of the calendar quarter, in
addition to any other remedy available to the State in law or equity.
5.4 Whistleblower Protection. Sub-Grantee shall, and in its contracts shall require its
contractors to, comply with Section 1553 of ARRA, which prohibits all non-federal contractors of
ARRA funds, including the State of Oregon, and all contractors of the State, from discharging,
demoting, or otherwise discriminating against an employee as a reprisal for the employee’s
disclosure of information that the employee reasonably believes is evidence of: (a) gross
mismanagement of a contract or grant relating to ARRA funds; (b) a gross waste of ARRA
funds; (c) a substantial and specific danger to public health or safety related to the
implementation or use of ARRA funds; (d) an abuse of authority related to implementation or
use of ARRA funds; or (e)a violation of law, rule, or regulation related to an agency contract
(including the competition for or negotiation of a contract) or grant, awarded or issued relating to
ARRA funds. Sub-Grantee shall, and in its contracts shall require its contractors to, post notice
of the rights and remedies available to employees under Section 1553 of ARRA.
5.5 Prohibition of Use of ARRA Funds. Under Section 1604 of ARRA, Sub-Grantee
agrees that none of the funds made available under this contract may be used for any casino or
other gambling establishment, aquarium, zoo, golf course, swimming pools, or similar projects.
5.6 Inspection of Records. Sub-Grantee shall comply with Section 902 of ARRA, which
grants the U.S. Comptroller or its designated representatives the authority “to examine any
records of the Sub-Grantee or any of its contractors, or any state or local agency administering
such contract, that directly pertain to, and involve transactions relating to, the contract or
subcontract;” and “to interview any officer or employee of the Sub-Grantee or any of its
contractors, or of any state or local government agency administering the contract, regarding of
such transactions.”
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Sub-Grantee shall comply with Section 1515 of ARRA, which grants the Inspector General or its
designated representatives the authority “to examine any records of the Sub-Grantee, any of its
contractors, or any state or local agency administering such contract, that pertain to, and involve
transactions relating to, the contract, subcontract, grant, or sub-grant;” and “to interview any
officer or employee of the contractor, grantee, sub-grantee, or agency regarding such
transactions.”
5.7 Signage. In addition to any other signage requirements that the State may require,
upon written notice to Sub-Grantee, the State may require the Sub-Grantee to post State-
provided ARRA signage to designate the project as a federal stimulus recovery project.
5.8 False Claims Act. Sub-Grantee shall promptly refer to an appropriate federal inspector
general any credible evidence that a principal, employee, agent, contractor, or other person has
committed a false claim under the False Claims Act (31 U.S.C. §§ 3729-3733) or has committed
a criminal violation of laws pertaining to fraud, conflict of interest, bribery, gratuity or similar
misconduct involving those funds.
5.9 Enforceability. Sub-Grantee agrees that if Sub-Grantee or one of its contractors fails to
comply with all applicable federal and state requirements governing the use of ARRA funds, the
federal agency or the State may withhold or suspend, in whole or in part, funds awarded under
the program, or recover misspent funds following an audit. This provision is in addition to all
other remedies available to the State under all applicable State and federal laws.
5.10 Segregation of Funds. Sub-Grantee shall segregate obligations and expenditures of
ARRA funds from other funding. No part of funds made available under ARRA may be
commingled with any other funds or used for a purpose other than that of making payments for
costs allowable under ARRA.
5.11 Contractor Contracts. Sub-Grantee shall include these standard terms and conditions,
including this requirement, in any of its contracts in connection with projects funded in whole or
in part with funds available under ARRA.
5.12 Conflicting Provisions. Sub-Grantee agrees that, to the extent ARRA requirements
conflict with State requirements, the ARRA requirements control.
5.13 State of Oregon WorkSource Posting Requirements. Sub-Grantee shall list any job
openings at Sub-Grantee’s firm/business through WorkSource Oregon. Sub-Grantee shall also
require its contractors and consultants to list any job openings at the contractor’s/consultant’s
firms/businesses through WorkSource Oregon. Sub-Grantee is not required to list job openings
(or require listing by Sub-Grantee’s contractors or consultants), where an employer, contractor,
or subcontractor of an ARRA-funded State contract intends to fill the job opening created by
ARRA funding with a present employee, a laid-off former employee, or a job candidate from a
previous recruitment.
5.14 Eligible Workers. Sub-Grantee shall ensure that all employees complete the I-9 form to
certify that they are eligible for lawful employment under the Immigration and Nationality Act (8
U.S.C. 1324a). Sub-Grantee shall comply with regulations regarding certification and retention
of the completed forms.
5.15 U.S. Forest Service Acknowledged in Publications, Audio Visuals, and Electronic
Media. Sub-Grantee shall acknowledge U.S. Forest Service support in any publications, audio
visuals, and electronic media developed as a result of this Contract.
11
SIGNATURES
NOW, THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree. IN WITNESS WHEREOF, the parties hereto have caused this
contract to be duly executed as of the dates set forth with their respective signatures.
OREGON STATE DEPARTMENT OF FORESTRY:
Norman Miller Date
Partnership Development Program Director
Deschutes County is a government entity duly organized and validly existing under the
laws of the State of Oregon. Deschutes County has full power, authority and legal right to
make this contract and incur and perform its obligations hereunder.
Deschutes County Date
12
Exhibit A
Project Plan
Deschutes County Hazardous Fuels Removal for Energy Production
The information below describes the purpose and need for the Deschutes County Hazardous Fuels
Removal for Energy Production Grant (Grant) approved and funded by the American Reinvestment
and Recovery Act of 2009 (ARRA). The resulting contract is between the Oregon Department of
Forestry (ODF) as the Grantee and Deschutes County as the Sub-Grantee.
Scope
The purpose of the Grant is to fund work associated with collecting woody biomass that is produced
by thinning overstocked stands and processing it for energy production. Many communities in
Central Oregon are at increased risk for wildfire due to overstocked forest stand conditions.
Communities in Deschutes, Crook, Jefferson, and surrounding counties have created Community
Wildfire Protection Plans (CWPPs) that have been successful in reducing hazards to communities
and fire fighters. In many cases, fuels reduction treatments are being funded through other ARRA
and TARP grants. However, the grants do not include financial support for the utilization of the
woody biomass for energy production. This grant funding will be used to provide this additional
support to collect the woody biomass and process it for use at nearby energy facilities. This will
promote a high level of cooperation with local partners.
The marginal economics of creating and transporting biomass especially during the recent
downturn in the economy has decreased the utilization of this material for producing renewable
energy. The cost of processing and transporting woody biomass using existing techniques currently
exceeds the value placed on the biomass as renewable energy. Consequently, the woody biomass
from hazardous fuel treatment projects has been burned or the disposal has been postponed
resulting in loss of jobs both in the field and at biomass energy facilities.
Deschutes County Forestry Departments’ knowledge of both the community’s workforce and
biomass energy plant needs will allow for the use of different types of collection and transportation
methods to maximize efficiency. Locations within the communities will be identified as convenient
collection sites for material brought from harvest sites. Collaboration with contractors and other
partners will serve to organize timing of operations to maximize efficiency and reduce costs.
Increasing the availability of biomass material will help to fill raw material gaps and allow retention of
employees at facilities that produce energy from biomass.
Additionally, the state, in general, will benefit from using a local electrical and renewable energy
source, as encouraged and directed by the Governor’s Renewable Energy Action Plan.
Targets
The following are the measurable outcomes for the project:
1. Slash disposal for approximately 1,000 acres on private timberlands and Wildland Urban
Interface lands in rural Central Oregon.
2. Recovery of approximately 22,000 green tons of hog fuel.
The slash loading on units varies depending on a number of factors, so the targets are used as
estimates of what can be obtained given the approved budget. By utilizing increasingly efficient
methods, costs are anticipated to decrease, thus providing for additional treatment of acres/tons of
13
biomass. The acres treated represent expected harvest acres as a result of current conditions for
fuels reduction activities.
Statement of Work
Contractual Categories
The processes described in the Statement of Work below will occur after or concurrently with forest
health and hazardous fuel reduction operations. Where such operations occur concurrently, specific
costs attributed to the collection and processing of slash will be separated from forest health or fuels
reduction activities and itemized appropriately.
Deschutes County will perform or contract with contractors to perform the work as described below
(contractual categories).
Slash Collection: Slash will be collected from harvest units and transported to a disposal site.
Minor emphasis will be placed on this process because slash collection may or may not be required
to get the slash to a disposal site for grinding. Methods of handling and hauling slash will be
evaluated to achieve lowest cost and increase effectiveness.
Grinding: The grinding process occurs at the disposal site when the slash is processed into hog
fuel used for energy production. Transportation to the energy production facilities is included in the
grinding process.
Equipment Mobilization: The equipment utilized for slash collection, grinding, and road
maintenance will be moved to the job site to perform the work.
Road Maintenance: Roads that access collection sites that are used for the transportation of slash
under the Grant will need to be maintained to prevent damage and protect forest resources. Roads
used to transport the hog fuel from the disposal site to the energy facility will also need to be
maintained.
Administration: A DESCHUTES representative will oversee the project and collect cost data for
each operational unit for each of the contractual categories. The data will be provided to ODF to
show expended costs and cost comparisons among biomass recovery systems.
Responsibilities
The Oregon Department of Forestry (ODF) and Deschutes County Forestry Department
(DESCHUTES) duties as it pertains to this agreement are described below. Methods are
subject to change in order to satisfy requirements of ARRA reporting, or to accommodate
developing DESCHUTES or ODF methodologies. ODF work will be based at the Prineville ODF
office.
DESCHUTES Responsibilities:
1. DESCHUTES will identify operations available to harvest biomass. Operational areas
will be in Central Oregon, on privately, local government, or state owned land in
Deschutes, Crook, Jefferson, or surrounding counties.
2. DESCHUTES will solicit bids for activities to achieve the objective of the grant.
3. Information packet. DESCHUTES will present to ODF, prior to the commencement of
any work, an information packet of not more than $75,000 per packet regarding each
operational area for approval. Each packet will include:
14
a. Exhibit map(s) illustrating the location of the collection site(s) and grinding site(s)
with applicable roads and property lines and the roads to be maintained. The map
legend will include the collection site name/number, acreage, and estimated
tonnage.
b. Summary table with all collection unit names/numbers, acres, estimated tonnage,
and estimated costs to collect and grind the slash and to do road maintenance or
equipment mobilization.
4. DESCHUTES will provide performance reporting details as requested.
5. DESCHUTES will notify ODF at the completion of each operational unit.
6. Billing packet. DESCHUTES will prepare a billing packet, of not more than $75,000 per
payment request, to be submitted to ODF for payment through the grant.
Reimbursement will be for actual costs. The billing packet will include:
a. Request for Reimbursement, Financial Accomplishment Report (Exhibit B).
b. For each operational area and disposal site:
i. Exhibit map(s) used for the information packet.
ii. Cost Summary spreadsheet prepared by DESCHUTES (Exhibit E). The
spreadsheet will include operator/equipment costs shown by activity, rate of
payment, unit of payment, total cost, and invoice number, where applicable. The
spreadsheet will also contain the total amount of green tons processed and
corresponding bone dry tons. The spreadsheet shall clearly show administration
costs, costs of collection and costs of road maintenance or other costs. The
spreadsheet shall have a clearly marked line item of requested funds to be
reimbursed through the grant.
iii. Invoice(s) from contractor(s) that completed the work shall be on the contractor’s
letterhead, when possible, identifying the company and the company’s contact
information. (ODF reserves that right to review invoices with applicable
companies). Invoice(s) shall contain a description of the work completed and the
hours worked for associated categories: slash collection, grinding, road
maintenance, and equipment mobilization.
7. After ODF approval of the proposal, DESCHUTES will coordinate and contract as
necessary to carry out the proposed activities.
ODF Responsibilities:
1. ODF representative will assist DESCHUTES in the identification of potential landowners
in Central Oregon that have biomass and meet the grant requirements.
2. Upon receipt of DESCHUTES information packet, ODF representative will review the
proposal.
3. ODF reserves the right to conduct a preliminary site visit.
4. ODF will have the opportunity to discuss and modify proposals with DESCHUTES to
satisfy grant requirements. If the project is not appropriate, ODF will initiate discussions
to modify the project to meet the objectives of the grant.
5. ODF representative will notify DESCHUTES of project approval via written
communication within five (5) business days of receiving the complete information
packet.
15
6. ODF reserves the right to visit site(s) during operational periods to monitor work to
ensure compliance with ARRA, this agreement, and the Oregon Forest Practices Act.
7. ODF reserves the right to visit the sites to verify that the work was completed.
8. ODF will receive the billing packets from DESCHUTES and review them for proper
content.
9. When all reviews are complete, ODF will prepare a cover page illustrating:
a. Payment amount.
b. Tonnage utilized.
c. Acres treated.
d. Number of positions utilized (FTE).
e. Other requirements of ARRA reporting.
10. The ODF field representative will forward the completed packet to the Partnership
Development Office in Salem for official processing and approval within thirty (30)
business days of receiving complete packet.
16
Exhibit B
REQUEST FOR REIMBURSEMENT, FINANCIAL AND ACCOMPLISHMENT REPORT (page 1)
AGENCY NAME: Deschutes County Hazardous Fuels Reduction for Energy Production
TIN NUMBER:
REPORT FOR MONTH OF:
Deschutes Co. SIGNATURE:
Deschutes Co. SIGNATURE:
DATE SUBMITTED:
FINANCIAL (report grant $$ only) This Month Cumulative
Personnel/Labor
Contractual Services
Indirect Costs
TOTAL (This Month is the
amount of reimbursement
requested):
Coding: 4S5011-01
A) ACCOMPLISHMENT This Month Cumulative
Number of acres treated
Number of hours worked
B) NFPORS REPORT– see
Contract Exhibit C for legend
1-A Chipping acres
1-C Hand Pile acres
1-D Lop & Scatter acres
1-F Machine Pile acres
1-G Biomass Removal acres
1-H Thinning acres
2-A Broadcast acres
2-C Hand Pile acres
If no acres have been treated for the month of this report, please explain why and any problems or issues that
are currently hindering progress on the project.
ODF USE ONLY REVIEW and APPROVAL: I have reviewed this request for payment and supporting
documents against the grant application. I am approving this to proceed to payment.
, Field Project Coordinator Signature Date
, Federal Grant Coordinator signature Date
This report should be submitted on a monthly basis, by the 10th of the month following a month of grant
activity. Submit to Kevin Benton, Oregon Department of Forestry, P.O. Box 670, 3501 E 3rd Street, Prineville,
OR 97754
17
(Page 2)
National Fire Plan Operations and Reporting System (NFPORS) Report
For purposes of meeting Federal reporting requirements, the following detail
information shall be tracked and reported on a regular basis. In addition to the
numbers of acres treated, Sub-Grantee shall identify the types of treatments
performed on acreage in the following categories. Multiple treatments may apply
to any one site area
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18
Exhibit C
Insert: Contract between ODF and the United States Forest Service
19
Exhibit D
Example: Agency Certificate(s) of Insurance
Insurance Agent Clarification
Please note that ODF is transitioning to new insurance requirements (see Senate Bill 311) and
interpreting the general and automobile liability policies to include property damage coverage IN
ADDITION TO and SEPERATE FROM bodily injury/death coverage.
With the PER OCCURRENCE level of coverage for ANY NUMBER OF CLAIMANTS,
contractors must meet or exceed $3.5 million of coverage for each general, professional, and
auto liability policy, for those contracts completed by June 30, 2010. (Please see Insurance
Requirements schedule for other applicable dates and related insurance requirements). If those
amounts cannot be obtained for the policies, the purchase of umbrella liability policies will
suffice to meet the requirements. For example, a $1 million automobile liability policy with a $3
million umbrella policy is equivalent to a $4 million automobile liability policy.
The attached insurance certificate illustrates both these points.
20
DATE (MM/DD/YY) CERTIFICATE OF LIABILITY INSURANCE 1/1/2010
PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND
CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE
AFFORDED BY ANY POLICIES LISTED BELOW.
Any Insurance Agency
123 Main St.
Anywhere, OR 97000
INSURERS AFFORDING C0VERAGE
INSURER A: Insurance Company 1
INSURER B: Insurance Company 2
INSURER C: Insurance Company 3
INSURED D:
INSURED
Hard Working Contractor
456 Main St.
Anywhere, OR 97000 INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE NAMED ABOVE FOR THE POLICY PERIOD INDICATED,
NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE
TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMIT SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS
INSR
LTR TYPE OF INSURANCE POLICY NUMBER
POLICY
EFFECTIVE
DATE
(MM/DD/YY)
POLICY EXP
DATE
(MM/DD/YY)
LIMITS
A GENERAL LIABILITY EACH OCCURRENCE $1,000,000
FIRE DAMAGE (Any one fire) $100,000
Commercial General Liability ABC123 1/1/2010 1/1/2011 MED EXP (Any One person) $
Claims Made Occur PERSONAL & ADV INJURY $1,000,000
GENERAL AGGREGATE $2,000,000
PRODUCTS– COMP/OP AGG $2,000,000
General Aggregate Limit Applies Per:
Policy Project Loc
A AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea
accident)) $1,000,000
ANY AUTO ABC123 1/1/2010 1/1/2011 BODILY INJURY (Per person) $
ALL OWNED AUTOS BODILY INJURY (Per accident) $
SCHEDULED AUTOS
HIRED AUTOS
PROPERTY DAMAGE (Per
accident $
NON-OWNED AUTOS
GARAGE LIABILITY AUTO ONLY- EA ACCIDENT $
ANY AUTO OTHER THAN EA ACC $
AUTO ONLY: AGG $
B EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $3,000,000
OCCUR CLAIMS MADE XYZ789 1/1/2010 1/1/2011 AGGREGATE $3,000,000
$
DEDUCTIBLE $
RETENTION $ $
C 1234567 1/1/2010 1/1/2011 X WC STATU-
TORY LIMITS OTHER $
WORKERS COMPENSATION
AND EMPLOYERS’ LIABILITY
E.L. EACH ACCIDENT $500,000
E.L. DISEASE – EA EMPLOYEE $500,000
E.L. DISEASE – POLICY LIMIT $500,000
OTHER
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS
ADDITIONAL INSURED: The State of Oregon, its officers, employees and agents as Additional Insureds but only with respect to
Contractor’s activities to be performed under this Contract. Coverage shall be primary and non-contributory with any other
insurance and self-insurance.
CERTIFICATE HOLDER ADDITIONAL INSURED; INSURER LETTER____ CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED
BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER,
WILL ENDEAVOR TO MAIL WITHIN __60____ DAYS WRITTEN NOTICE TO
THE CERTIFICATE HOLDER TO THE LEFT.
STATE OF OREGON
DEPARTMENT OF FORESTRY
PROCUREMENT OFFICE
2600 STATE STREET
SALEM, OR. 97301 AUTHORIZED REPRESENTATIVE
Exhibit E
21
Example of Cost Summary (on Company Letterhead)
Grant Name: Deschutes County Hazardous Fuels Reduction for Energy Production
Date Submitted:
Unit Name/Budget Item Cost
Green
Tons
Bone Dry
Tons
Acres
Treated
Person Hours
Worked
Total
ODF USE ONLY REVIEW AND APPROVAL: I have reviewed this request for payment and
supporting documents against the grant application. I am approving this to proceed to payment.
Project Coding:4S5011-01
Field Project Coordinator
Signature:
Date:
Grant Coordinator Signature: Date:
This report should be submitted as specified in the Landowner Responsibilities in Exhibit A. Submit to
Kevin Benton, Oregon Department of Forestry, P.O. Box 670, 3501 E 3rd Street, Prineville, OR 97754