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HomeMy WebLinkAbout020722ca02 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS CONSENT AGENDA REQUEST TO: Board of County Commissioners FROM: Mark McCauley, Interim County Administrator DATE: February 7, 2022 SUBJECT: Request for Board of County Commissioners approval of an American Rescue Plan Act(ARPA) grant to Jefferson County Public Utility District No. 1 (PUD) in the amount of$750,000 to facilitate broadband access to residents of Jefferson County STATEMENT OF ISSUE: The PUD submitted a grant application to the Washington State Broadband Office which, if approved, would enable the PUD to connect around 650 homes with fiber optic cable. Prior to submitting the grant application, the PUD was invited to brief the Board of County Commissioners on the grant. During the briefing the County learned that the PUD was putting up 10%local match. To make the application more competitive the Board committed$750,000 in ARPA funds to increase the match percentage to 20% thereby making the grant application much more competitive. ANALYSIS: The PUD's grant application was approved in the amount of$9.7 million dollars. Including the local match, the total project cost is $11.4 million. This will cover the installation of 100 miles of overhead and underground fiber connecting hundreds of homes in three zones: Cape George Road along Discovery Bay to Middlepoint Road; Woodland Hills between Highway 19 and Kala Point; and Marrowstone Island. Now that the state grant has been approved the County and the PUD need to execute a grant agreement for the $750,000 the Board committed in support of the project. A proposed grant agreement is attached. FISCAL IMPACT: $750,000 to be paid out of the Grant Management Fund using ARPA funds. RECOMMENDATION: That the Board approve the attached grant agreement with the PUD. REVIE ,%B °V5/2' .R" Mark McCaule I terim County Adminis Date GRANTEE AGREEMENT WITH JEFFERSON COUNTY PUBLIC UTILITY DISTRICT NO. 1 (PUD) FOR LOCAL MATCH FOR A BROADBAND GRANT This Grantee Agreement ("Agreement") is by and between Jefferson County, a Washington political subdivision ("County") and Jefferson County Public Utility District No. 1,("Grantee"). WHEREAS, on March 11, 2021, President Biden signed the American Rescue Plan (ARPA) into law; and WHEREAS, the ARPA allows that funds received under the act can be used to promote the development of broadband infrastructure; and WHEREAS, the PUD, being a major provider of broadband interne connectivity in Jefferson County, has a need for funds to increase broadband coverage within and throughout Jefferson County; and WHEREAS, the Jefferson County Board of Commissioners previously awarded the PUD an ARPA grant of$150,000 for this purpose; and WHEREAS, the Board of Commissioners wished to make the PUD's broadband grant submission more competitive by committing $750,000 in ARPA funding to increase the local grant match percentage to 20%; and WHEREAS, the PUD was awarded the grant for which they applied, NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, and the terms and conditions set forth below, the parties agree as follows: 1. Effective Date and Term. This Agreement shall commence on when last executed by the parties and remain in effect until December 31, 2022, unless terminated earlier by the County in writing. 2. Grant Amount and Grantee's Use of Grant Funds. The Grantee shall ensure that the any funds expended are eligible in accordance with the terms of the grant, to include the grant proposal attached. The Grant amount is $750,000. 3. Termination. The County may terminate this Agreement, for convenience or otherwise and for no consideration or damages, upon prior notice to the Grantee. 4. Independent Grantee. Each party under this Agreement shall be for all purposes an independent Grantee. Nothing contained herein will be deemed to create an association, a partnership, a joint venture, or a relationship of principal and agent, or employer and employee between the parties. The Grantee shall not be, or be deemed to be, or act or purport to act, as an employee, agent, or representative of the County for any purpose. 5. Indemnification. The Grantee agrees to defend, indemnify and hold the County, its officers,officials,employees, agents and volunteers harmless from and against any and all claims, 1 injuries, damages, losses or expenses including without limitation personal injury, bodily injury, sickness, disease, or death, or damage to or destruction of property, which are alleged or proven to be caused in whole or in part by an act or omission of the Grantee, its officers, directors, employees, and/or agents relating to the Grantees' performance or failure to perform under this Agreement. The section shall survive the expiration or termination of this Agreement. 6. Insurance. Prior to commencing work, the Grantee shall obtain at its own cost and expense the following insurance coverage specified below and shall keep such coverage in force during the terms of the Agreement. Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage for all owned and non-owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than$500,000 each occurrence with the County named as an additional insured in connection with the Grantee's performance of his Agreement. This insurance shall indicate on the certificate of insurance the following coverage: (a) Owned automobiles; (b) Hired automobiles; and, (3) Non-owned automobiles. Commercial General Liability. Insurance in an amount not less than a single limit of $1,000,000 per occurrence and an aggregate of not less than two (2)times the occurrence amount ($2,000,000.00 minimum) for bodily injury, including death and property damage, unless a greater amount is specified in the contract specifications. The commercial general liability insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage: a. Broad Form Property Damage, with no employee exclusion; b. Personal Injury Liability, including extended bodily injury; c. Broad Form Contractual/Commercial Liability — including coverage for products and completed operations; d. Premises— Operations Liability (M&C); e. Blanket Contractual Liability. The County shall be named as an "additional named insured"under all insurance policies required by this Agreement, except Professional Liability Insurance when not allowed by the insurer, and shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to the County. Such insurance coverage shall be evidenced by one of the following methods: (a) Certificate of Insurance; or, (b) Self-insurance through an irrevocable Letter of Credit from a qualified financial institution. The Grantee shall furnish the County with properly executed certificates of insurance that, at a minimum, shall include: (a) The limits of overage; (b) The project name to which it applies; (c) The certificate holder as Jefferson County, Washington and its elected officials, officers, and employees with the address of Jefferson County Risk Management, P.O. Box 1220, Port Townsend, WA 98368, and, (d) A statement that the insurance policy shall not be canceled or 2 allowed to expire except on thirty (30) days prior written notice to the County. If the proof of insurance or certificate indicating the County is an "additional insured" to a policy obtained by the Grantee refers to an endorsement (by number or name) but does not provide the full text of that endorsement, then it shall be the obligation of the Grantee to obtain the full text of that endorsement and forward that full text to the County. Certificates of coverage as required by this section shall be delivered to the County within fifteen (15) days of execution of this Agreement. Failure of the Grantee to take out or maintain any required insurance shall not relieve the Grantee from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations concerning indemnification of the County. The Grantee's insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the parties that the insurance policies, with the exception of Professional Liability Insurance, so affected shall protect all the parties and shall be primary coverage for all losses covered by the above described insurance. Insurance companies issuing the Grantee's insurance policy or policies shall have no recourse against the County (including its employees and other agents and agencies) for payment of any premiums or for assessments under any form of insurance policy. All deductibles in the Grantee's insurance policies shall be assumed by and be at the sole risk of the Grantee. Any deductibles or self-insured retention shall be declared to and approved by the County prior to the approval of this Agreement by the County. At the option of the County, the insurer shall reduce or eliminate deductibles or self-insured retention, or the Grantee shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Any judgments for which the County may be liable, in excess of insured amounts required by this Agreement, or any portion thereof, may be withheld from payment due, or to become due, to the Grantee until the Grantee shall furnish additional security covering such judgment as may be determined by the County. Any coverage for third party liability claims provided to the County by a "Risk Pool" created pursuant to Ch. 48.62 RCW shall be non-contributory with respect to any insurance policy the Grantee shall provide to comply with this Agreement. The County may, upon the Grantee's failure to comply with all provisions of this Agreement relating to insurance, withhold payment or compensation that would otherwise be due to the Grantee. The Grantee shall provide a copy of all insurance policies specified in this Agreement. Written notice of cancellation or change in the Grantee's insurance required by this Agreement shall reference the project name and agreement number and shall be mailed to the County at the following address: Jefferson County Risk Management, P.O. Box 1220, Port Townsend, WA 98368. 3 The Grantee's liability insurance provisions shall be primary and noncontributory with respect to any insurance or self-insurance programs covering the County, its elected and appointed officers, officials, employees, and agents. Any failure to comply with reporting provisions of the insurance policies shall not affect coverage provided to the County, its officers, officials, employees, or agents. The Grantee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. The Grantee shall include all Sub-Grantees as insured under its insurance policies or shall furnish separate certificates and endorsements for each Sub-Grantee. All insurance coverage for Sub- Grantees shall be subject to all the requirements stated in this Agreement. The insurance limits mandated for any insurance coverage required by this Agreement are not intended to be an indication of exposure nor are they limitations on indemnification. The Grantee shall maintain all required insurance policies in force from the time services commence until services are completed. Certificates, insurance policies, and endorsements expiring before completion of services shall be promptly replaced. All the insurance policies required by this Agreement shall provide that thirty (30) days prior to cancellation, suspension, reduction or material change in the policy, notice of same shall be given to the County Risk Manager by registered mail, return receipt requested. The Grantee shall place insurance with insurers licensed to do business in the State of Washington and having A.M. Best Company ratings of no less than A-, with the exception that excess and umbrella coverage used to meet the requirements for limits of liability or gaps in coverage need not be placed with insurers or re-insurers licensed in the State of Washington. The County reserves the right to request additional insurance on an individual basis for extra hazardous contracts and specific service agreements. 7. Worker's Compensation (Industrial Insurance). The Grantee shall maintain workers' compensation insurance at its own expense, as required by Title 51 RCW, for the term of this Agreement and shall provide evidence of coverage to Jefferson County Risk Management, upon request. Worker's compensation insurance covering all employees with limits meeting all applicable state and federal laws. This coverage shall include Employer's Liability with limits meeting all applicable state and federal laws. This coverage shall extend to any Sub-Grantee that does not have their own worker's compensation and employer's liability insurance. The Grantee expressly waives by mutual negotiation all immunity and limitations on liability, with respect to the County, under any industrial insurance act, disability benefit act, or other employee benefit act of any jurisdiction which would otherwise be applicable in the case of such claim. 4 If the County incurs any costs to enforce the provisions of this subsection,all cost and fees shall be recoverable from the Grantee. 8. Compliance with Laws. Guidelines. The Grantee shall comply with all federal, state, and local laws and all requirements (including certifications and audits), to the extent applicable, when seeking Reimbursement. 9. Maintenance and Audit of Records. The Grantee shall maintain records, books, documents, and other materials relevant to its performance under this Agreement. These records shall be subject to inspection, review and audit by the County or its designee, the Washington State Auditor's Office. If it is determined during the course of the audit that the Grantee was reimbursed for unallowable costs under this Agreement or any, the Grantee agrees to promptly reimburse the County for such payments upon request. 10. Notices. Any notice desired or required to be given hereunder shall be in writing, and shall be deemed received five(5)days after deposit with the U.S. Postal Service,postage fully prepaid, certified mail, return receipt requested, and addressed to the party to which it is intended at its last known address, or to such other person or address as either party shall designate to the other from time to time in writing forwarded in like manner: Grantee Kevin Streett General Manager Jefferson County Public Utility District No. 1 310 Four Corners Road Port Townsend, WA 98368 Jefferson County Mark McCauley Interim County Administrator Jefferson County Courthouse 1820 Jefferson Street Port Townsend, WA 98368 11. Improper Influence. Each party warrants that it did not and will not employ, retain, or contract with any person or entity on a contingent compensation basis for the purpose of seeking, obtaining, maintaining, or extending this Agreement. Each party agrees, warrants, and represents that no gratuity whatsoever has been or will offered or conferred with a view towards obtaining, maintaining, or extending this Agreement. 12. Conflict of Interest. The elected and appointed officials and employees of the parties shall not have any personal interest, direct or indirect, which gives rise to a conflict of interest. 13. Time. Time is of the essence in this Agreement. 14. Survival. The provisions of this Agreement that by their sense and purpose should survive expiration or termination of this Agreement shall so survive. Those provisions include without limitation Indemnification and Maintenance and Audit of Records. 5 15. Amendment. No amendment or modification to this Agreement will be effective without the prior written consent of the authorized representatives of the parties. 16. Governing Law: Venue. This Agreement will be governed in all respects by the laws of Washington state, both as to interpretation and performance, without regard to conflicts of law or choice of law provisions. Any action arising out of or in connection with this Agreement may be instituted and maintained only in a court of competent jurisdiction in Jefferson County, Washington or as provided by RCW 36.01.050. 17. Non-Waiver. No failure on the part of the County to exercise, and no delay in exercising, any right hereunder shall operate as a wavier thereof; nor shall any single or partial exercise by the County of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedy available to the County at law or in equity. 18. Binding Effect.This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors. 19. Assignment. Neither party shall assign or transfer any of its interests in or obligations under this Agreement without the prior written consent of the other party. 20. Entire Agreement. This Agreement constitutes the entire agreement between the County and the Grantee for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the parties with respect to this Agreement. 21. No Third-Party Beneficiaries. Nothing herein shall or be deemed to create or confer any right, action, or benefit in, to, or on the part of any person or entity that is not a party to this Agreement. This provision shall not limit any obligation which either party has to the Washington State Department of Commerce of these grant funds, including the obligation to provide access to records and cooperate with audits as provided in this Agreement. 22. Severability.In the event that one or more provisions of this Agreement shall be determined to be invalid by any court of competent jurisdiction or agency having jurisdiction thereof,the remainder of this Agreement shall remain in full force and effect and the invalid provisions shall be deemed deleted. 23. Counterparts. This Agreement may be executed in counterparts, any of which shall be deemed an original but all of which together shall constitute one and the same instrument. 24. Authorization. Each party warrants to the other party, that the person executing this Agreement on its behalf has the full power and authority to do so. 25. Public Records Act.Notwithstanding any provisions of this Agreement to the contrary, to the extent any record, including any electronic, audio, paper or other media, is required to be kept or indexed as a public record in accordance with the Washington Public Records Act,Chapter 42.56 RCW (as may be amended), the Grantee agrees to maintain all records constituting public records and to produce or assist the County in producing such records, within the time frames and parameters set forth in state law. The Grantee also agrees that upon receipt of any written public 6 record request, Grantee shall, within two business days, notify the County by providing a copy of the request per the notice provisions of this Agreement. (SIGNATURES APPEAR ON THE NEXT PAGE) 7 IN WITNESS WHEREOF, this Agreement is executed and shall become effective as of the last date signed below. JEFFERSON COUNTY BOARD OF JEFFERSON PUBLIC UTILITY COMMISSIONERS DISTRICT NO. 1 By: By: Heidi Eisenhour, Chair DATE Kevin Streett,General Manager DATE Kate Dean,Member DATE Greg Brotherton, Member DATE SEAL: ATTEST: Carolyn Galloway DATE Clerk of the Board Approved as to form only: Philip C. Hunsucker DATE Chief Civil Deputy Prosecuting Attorney 8 Board of Commissioners: Jeff Randall, District 1 Kenneth Collins, District 2 Dan Toepper, District 3 Kevin Streett, General Manager Jefferson County Public Utility District January 27, 2022 To: Mark McCauley & Jefferson County Board of Commissioners 1820 Jefferson Street Port Townsend, WA 98368 RE: American Rescue Plan Funding Request The PUD greatly appreciates Jefferson County's pledge of$750,000 in matching funds for our successful application to the Washington State Broadband Office to connect around 650 homes with fiber optic cable. As you know, the Covid-19 pandemic has shown that access to broadband is essential for full engagement with work, schooling, healthcare, and even the basics citizenship. Jefferson County PUD has made it a goal to facilitate access to broadband for all residents in its electric service territory. This grant project is one of many the PUD has applied for and one of two the PUD has been awarded to date. The total cost of the project is $11.4M. The award from the state is $9.7M. 100 miles of fiber will be run overhead and underground to connect the hundreds of homes in the project area, which is broken up into the following three zones: Cape George Rd. along Discovery Bay to Middlepoint Rd; Woodland Hills between Hwy 19 and Kala Point; and Marrowstone Island. In each zone, residents have struggled for years to gain access to adequate and functional internet service. Most have outdated DSL delivering barely better than dial-up speeds, far below the minimum broadband speed standard of 25mbps downloads and 3mbps uploads. Some are unable to get any internet at all, or use expensive and unreliable service like cellular hotspots and satellite connections. Construction on the project is expected to begin in the second half of 2022 and will be completed in 2023. Unique in WA state, the PUD will both construct and maintain the fiber and provide retail internet service to end users over its open access network, guaranteeing high quality, affordable, reliable service from day one. 9 Jefferson County's matching contribution to this project was essential, and helped make our application the only funded grant directly to a PUD from the State Broadband Office. The commissioners and I greatly appreciate the generosity and camaraderie the County has shown in its willingness to share federal funding with the PUD and other local agencies during the last year. Please let me know if you have any questions or would like additional information. Sincerely, Kevin Streett General Manager 10