Title
Grants, Gifts, and Other Resources Delegation Policy
Body
Agenda of: July 22, 2020
Item No.: 2020-248
Amount: Not to Exceed $40,000,000
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: July 22, 2020
RE: Grants, Gifts, and Other Resources Delegation Policy
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the Grants, Gifts, and Other Resources Delegation Policy as presented with an immediate effective date, and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Articles of Incorporation <https://www.glwater.org/wp-content/uploads/2018/09/2-COMPLETE-Articles-of-Incorporation.pdf> for the Great Lakes Water Authority (GLWA) provide authority for GLWA’s Board of Directors to solicit and receive grants, gifts, and other resources as stated in Article 4 - Powers, Section B(4). Excerpts are below.
B. Except as otherwise provided in the Act or these Articles, and without limiting the generality of the foregoing paragraph (A), the Authority may do all things necessary or convenient to implement the purposes, objectives, and provisions of the Act and the purposes, objectives, and jurisdictions vested in the Authority or the Board by the Act or other law, including, but not limited to, all of the following:
…
(4) Solicit, receive, and accept gifts, grants, labor, loans, contributions of money, property, or other things of value, and other aid or payment from any federal, state, local, or intergovernmental government agency or from any other person or entity, public or private, upon terms and conditions acceptable to the Authority, or participate in any other way in a federal, state, local, or intergovernmental government program.
JUSTIFICATION
A key driver in Board engagement in the above provision is to ensure that the commitment of GLWA resources (financial or in-kind) are appropriate and do not impact current or future budgets as well as to ensure alignment with the Board’s priorities and objectives.
As a practical matter, however, engagement of the Board in all aspects of soliciting and receiving grants is problematic - largely from a timing and, in some cases, a materiality perspective. For this reason, a Grants, Gifts, and Other Resources Delegation Policy is proposed that bridges the intent of the Articles with the agility needed for team members to secure grants and other resources. Key elements include the following.
1. Loans are exempt from this policy as the GLWA Board has a Debt Management Policy which encompasses loans.
2. Intergovernmental agreements and other activities that are addressed in the GLWA Board Procurement Policy are exempt from this policy.
3. For the remaining activities in Article 4 - Powers, Section B(4), delegation of authority is provided to the Chief Executive Officer.
4. The delegation of authority does not preclude the CEO from seeking Board action related to the subject activities.
5. To ensure transparency and timely communication, a report will be provided to the Board, no less than quarterly related to activities subject to this policy. That report will, at a minimum, include description, type of activity, dollar amount, and status.
6. Effective date is immediate.
7. The inaugural Grants, Gifts, and Other Resources report will provide all known activity as of the effective date and be provided within the subsequent 30 days of that effective date.
A proposed policy document is attached as well as a sample report. That report includes the current Federal Emergency Management Agency (FEMA) activity related to COVID-19. Staff would like to submit the initial reimbursement request in August 2020.
BUDGET IMPACT
None
COMMITTEE REVIEW
This matter was reviewed by the GLWA Audit Committee at its meeting on July 17, 2020. With the addition of the “scope” section, the Audit Committee unanimously recommends that the Board of Directors approve Grants, Gifts, and Other Resources Delegation Policy with an immediate effective date.