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grant funds will be requested than what is available, meaning applicants may not receive their full request. Grant awards will be encumbered to each municipality by this process: o Half of the available grant funds will be divided equally among participants. o The remaining half will be distributed to participants based on the size of their grant request. Municipalities will be informed of their total grant amount for the program year at the start of the program year. ES will send grant agreements to municipalities for signature and, upon return, will sign, and will create purchase orders payable to the applicant municipality. Signed agreements and application must be returned to ES prior to participation in the program. Reporting Requirements and Reimbursement Each quarter, municipalities will submit the PPII Reporting Form Excel workbook of work completed, invoices, and certificates of completeness to certify the work for each grant was done and records auditable. Only one grant per property may be awarded. o ES has provided a list of verified Metropolitan Council Underutilized Business (MCUB) contractors able to perform water and sewer work (attached). It is not required to use the contractors on that list, but it is provided as an option. More information on the Met Council MCUB program can be found here: https://metrocouncil.org/About-Us/What-We- Do/DoingBusiness/Small-Business-Programs/mcub.aspx ES will review the PPII Reporting Form Excel workbook and supporting documentation and issue grant reimbursement. Municipalities have until March 31 of the following year to submit all paperwork for work performed during the program year. Any funds encumbered to a municipality and not spent during the program year will remain in ES's PayGo fund. The Council reserves the right to change these guidelines if, in its sole discretion, the results of the process do not equitably allocate the funds. Equity Component Thrive MSP 2040 is the Met Council's vision for the region through the year 2040. It reflects concerns, needs, and aspirations for the region and addresses our responsibility to future generations. Thrive MSP 2040 has five outcomes that reinforce and support each other to produce greater benefits for the region. Those outcomes are Stewardship, Prosperity, Equity, Livability, and Sustainability. Thrive MSP 2040 provides the following definition of equity: "Equity connects all residents to opportunity and creates viable housing, transportation, and recreation options for people of all races, ethnicities, incomes, and abilities so that all communities share the opportunities and challenges of growth and change. For our region to reach its full economic potential, all of our residents must be able to access opportunity. Our region is stronger when all people live in communities that provide them access to opportunities for success, prosperity and quality of life." (Metropolitan Council, 2014). The equity component of allowing grant reimbursement up to a $10,000 cap for private property owners meeting a municipality's equity criterion is one way equity is incorporated into this program. It is acknowledged that each municipality has different equity considerations and knows the needs of their residents the best; therefore, it is up to the municipality to determine if a resident has an equity need and up to the municipality to determine the resident's final grant award, up to $10,000. If a repair is higher than the program cap of $10,000, options, among others, to cover that cost include a municipality match, assessing the property for the remaining amount, or requesting payment from the resident. The means of collection are up to each municipality. Be advised, if grant awards are paid directly to the private property owner, it is recommended to speak with a tax professional, as the municipality may have to provide a 1099 tax form. Page - 2 1 METROPOLITAN COUNCIL