JOINT AGENDA NORTHEAST TEXAS ECONOMIC DEVELOPMENT … · 9/9/2020 · increase Operator safety and ensure Operations continue uninterrupted. For our rural transit fleet, we have

JOINT AGENDA NORTHEAST TEXAS ECONOMIC DEVELOPMENT DISTRICT AND

ARK-TEX COUNCIL OF GOVERNMENTS BOARD OF DIRECTORS MEETING September 24, 2020

The Northeast Texas Economic Development District (NETEDD) and Board of Directors of the Ark-Tex Council of Governments (ATCOG) will meet at 10:00 a.m., Thursday, September 24, 2020, at the ATCOG Texarkana office located at 4808 Elizabeth St., Texarkana, Texas, 75503, as well as, via teleconference/webinar. Due to COVID-19, we ask that only Board Members and ATCOG staff attend in person, and wear proper face coverings until seated.

If attending via Zoom, use the following information to register for the meeting:

https://zoom.us/meeting/register/tJMldO-sqj8jEt3hO2DoBisNuwbeCtp-N0Op

If you experience issues while registering or do not have access to a computer, please contact Erin Chewning no less than two (2) workdays prior to the meeting at 903.255.3555 or [email protected].

Item 1. Call to order – Quorum Determination.

Item 2. Invocation.

Item 3. Public Comment.

ATCOG invites members of the public to provide oral comment on any item included on this agenda under this item. Each person wishing to make a public comment shall be limited to 3 minutes with comments directed to the Board as a whole. Reasonable accommodation shall be made for members of the public utilizing a translator for public comment.

NETEDD Agenda Items

Item 4. Approval of the minutes as submitted for the NETEDD meeting held Thursday, May 28, 2020, via teleconference/webinar. (See page 4)

Item 5. Review and consider approval of NETEDD’s portion of ATCOG’s Financial Plan for fiscal year ending September 30, 2021. (Handouts to be provided at meeting, to be presented by Executive Director Chris Brown)

Item 6. Review and consider approval to proceed in the submission of the Revolving Loan Fund (RLF) COVID-19 Plan with Addendum for the North East Texas Regional Development Corporation as required by Economic Development Administration (EDA) for approved funding. (See page 8 and Addendum page 1; to be presented by staff member Melody Harmon)

Item 7. Review and consider approval for the ATCOG Executive Director to apply for 3 Year NETEDD Planning Grant through the U.S Department of Commerce Economic Development Administration (EDA). (See page 10; to be presented by staff member Toni Lindsey)

This concludes all NETEDD agenda items.

ATCOG Board of Directors Agenda Items

Item 8. Review and consider consent agenda items. (To be presented by Executive Director Chris Brown)

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https://zoom.us/meeting/register/tJMldO-sqj8jEt3hO2DoBisNuwbeCtp-N0Op

mailto:[email protected]

https://atcog-my.sharepoint.com/:b:/g/personal/echewning_atcog_org/Ec9bz_V49xdBq7YGVkpeoGcBQSSmpOLHd9yMhyqv25lBFw?e=S1IDxZ

• Approval of the minutes as submitted for the ATCOG Board of Directors Meeting held Thursday, June 25, 2020, via teleconference/webinar. (See page 12)

• Ratification of the Interlocal Cooperation Agreement between ATCOG and the Public Safety Office within the Office of the Governor. (See Addendum page 21)

Executive Closed Session

Item 9. The Board of Directors will recess the Open Session and go into Executive Closed Session to discuss personnel matters as allowed in the Texas Open Meetings Act, Section 551.074, Executive Director’s performance evaluation.

Open Session/Review and Comment

Item 10. The Board of Directors will reconvene in Open Session and take action on Item 8, as necessary. (To

be presented by Board President, L.D. Williamson, Judge, Red River County)

Item 11. Review and comment on Environmental Assessments to the Texas Commission on Environmental Quality (TCEQ) for proposed Texas Pollutant Discharge Elimination System (TPDES) permit renewals to authorize the discharge of treated wastewater by the following: (See page 16; to be presented by staff member Paul Prange) • City of DeKalb - the facility is located approximately 2.1 miles south of the intersection of US Hwy

82 and FM 992 in Bowie County, Texas.

• City of Paris - the facility is located at 3700 Lake Crook Road, approximately one mile west of U.S. Highway 271, directly east of Lake Crook Dam and north of the City of Paris in Lamar County, Texas.

• City of Texarkana, Texas - the facility is located at 4,000 South State Line Avenue, Texarkana, in

Bowie County, Texas.

• City of Blossom - the facility is located approximately 3,000 feet southwest of the intersection of U.S. Highway 82 and FM 1502, approximately 4,000 feet east of the intersection of FM 194 and FM 196 in Lamar County, Texas.

Regular Business Item 12. Review and consider approval of ATCOG’s Financial Plan for fiscal year ending September 30, 2021.

(Handouts to be provided at meeting; to be presented by Executive Director Chris Brown) Item 13. Review and consider annual renewal of the ATCOG Ethics Policy Manual and review Transportation

Program funding requirements pertaining to integrity and ethical behavior as mandated by the Texas Transportation Commission and Texas Department of Transportation (TXDOT). (See page 20; to be presented by staff member Leslie McBride)

Item 14. Review and consider approval of updates to the Equal Employment Opportunity Plan as required by

the Texas Department of Transportation. (See page 23 and Addendum page 46; to be presented by Ms. McBride)

Item 15. Review and consider adoption of the ATCOG Flexible Benefits Cafeteria Plan for FY 2021, as

authorized under Section 125 of the Internal Revenue Code of 1986. (See page 25 and Addendum page 70; to be presented by Ms. McBride)

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Item 16. Review and consider approval of the revisions to the Area Agency on Aging Regional Advisory

Council by-laws. (See page 46; to be presented by staff member Lisa Reeves)

Item 17. Review and consider approval, of the purchase of 30 Operator Safety Barriers for the TRAX Rural Transportation transit fleet. (See page 52; to be presented by staff member Mark Compton)

Item 18. Review and consider approval of a resolution selecting Pattillo, Brown & Hill, LLP to provide auditing

services to begin October 1, 2020. (See page 54; to be presented by staff member Mary Beth Rudel)

Item 19. Review and consider approval of the Ark-Tex Council of Governments joining a coalition with the cities of Texarkana, TX, Texarkana, AR and TexAmericas Center to submit a grant application to the EPA Brownfields Program in an effort to obtain hazardous substances and petroleum assessment funds in the amount of $600,000.00 to be utilized within Bowie County, Texas and Miller County, Arkansas. (See page 56; to be presented by Mr. Prange)

(Lunch to be served)

Other Business

Item 20. ATCOG annual meeting presentations.

Announcements

The next Executive Committee meeting will be held Thursday, October 29, 2020, at 10:00 a.m., location and/or meeting format to be determined. Pursuant to the Texas Open Meeting Act, Government Code Chapter 551 one or more of the above items may be considered in executive session closed to the public, including but not limited to consultation with attorney pursuant to Texas Government Code Section 551.071 and Section 551.074 arising out of the attorney's ethical duty to advise ATCOG concerning legal issues arising from an agenda item. Any decision held on such matter will be taken or conducted in open session following the conclusion of the executive session. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Administration at 903-832- 8636 two (2) work days prior to the meeting so that appropriate arrangements can be made. All agendas are sent electronically and available at www.atcog.org. Should any Board Member need a copy printed and available at the meeting, please call 903.255.3555 or email [email protected].

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http://www.atcog.org/


JOINT MINUTES NORTH EAST TEXAS ECONOMIC DEVELOPMENT DISTRICT AND

ARK-TEX COUNCIL OF GOVERNMENTS EXECUTIVE COMMITTEE MEETING MAY 28, 2020

The North East Texas Economic Development District (NETEDD) and the Executive Committee of the Ark-Tex Council of Governments (ATCOG) met at 10:00 a.m., Thursday, May 28, 2020, via teleconference/webinar. (This format was made allowable by Governor Abbott’s Office in a press release on March 16, 2020.)

Item 1. L.D. Williamson, Judge, Red River County, called the meeting to order.

Item 2. Brady Fisher, Northeast Texas Resource & Conservation Area, Inc. gave the invocation.

Item 3. Executive Director Chris Brown presented for consideration adoption of rules regarding public comments during an open meeting. The rules allow public comment on any agenda item before or during the consideration of the item with a time limit of 3 minutes. Non-English speakers utilizing a translator to address the Board of Directors or Executive committee will be allowed twice the amount of time.

Motion to approve was made by Bobby Howell, Judge, Bowie County, and seconded by Brian Lee, Judge, Titus County. It was approved.


There were no members of the public present.

NETEDD Agenda Items

Item 5. The next order of business was to review and consider approval of the minutes as submitted for the NETEDD meeting held on April 30, 2020.

Motion to approve was made by Scott Lee, Judge, Franklin County and seconded by Judge Howell. It was approved.

Item 6. Mr. Brown presented for consideration approval of the submission of grant applications to the US Economic Development Administration (EDA) for CARES Act funding. Mr. Brown stated the Revolving Loan Fund (RLF) application in the amount of $550,000 is for a single supplemental financial assistance award with two components: (1) up to $500,000 to capitalize a new RLF to alleviate sudden and severe economic dislocation caused by the coronavirus (COVID-19) pandemic to serve the same lending area as our existing RLF award and (2) an additional ten percent of that amount to defray administrative costs necessary to establish the new RLF and to facilitate rapid and prudent lending to respond to the pandemic (the ten percent for administrative costs is in addition to, not a portion of, the funds used to capitalize the RLF). The Planning Grant Supplemental Awards application is for $400,000 to implement the agreed scope of work.

Motion to approve was made by Judge Brian Lee and seconded by Teresia Wims, Mayor, City of Mt. Vernon. It was approved.

Item 7. Melody Harmon, Economic Development Coordinator, presented for consideration approval of the NETEDD COVID-19 RLF Plan as required by the Economic Development Administration (EDA) for additional funding. Ms. Harmon stated that staff have created a new COVID-19 RLF Plan, which mirrors the existing NETEDD RLF Plan but includes an additional section pertaining to COVID-19. The plan includes program specific waivers and procedures specific to COVID-19 disaster loans and funds designated specifically for this purpose.

Motion to approve was made by Travis Ransom, Mayor, City of Atlanta, and seconded by Marc Reiter, Mayor Pro Tem, City of Hooks. It was approved.

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This concludes all NETEDD agenda items.

ATCOG Executive Committee Agenda Items

Item 8. Item 5. The next order of business was to review and consider approval of the minutes as submitted for

the ATCOG Executive Committee meeting held Thursday, February 27, 2020. Motion to approve was made by Judge Howell and seconded by Mayor Ransom. It was approved.

Review and Comment

Item 9. Mr. Brown introduced Dan Perry, Director of Transportation Planning and Development, Texas

Department of Transportation (TxDOT) Paris District, and Deanne Simmons, Director of Transportation Planning and Development, TxDOT Atlanta District. Mr. Perry and Ms. Simmons presented on the TxDOT Rural Transportation Improvement Program (RTIP) plan. The RTIP plan is completed every 2 years and includes both large- and small-scale improvement projects such as highways, hiking and biking paths, sidewalks, safety lights, etc. Mr. Perry and Ms. Simmons reviewed the lists of projects for the counties in the ATCOG region and stated that the list will be sent directly to the County Judges for additional review and comment. Judge Williamson, Ann Rushing, Mayor, City of Clarksville, and Mr. Brown commented on TxDOT’s good working relationship with the counties and expressed appreciation for their presentation.

Item 10. Toni Lindsey, Regional Development Coordinator, presented for review and comment on a grant application by the Salvation Army in Texarkana, Arkansas, to the Department of Housing and Urban Development for an Emergency Solutions Grant in the amount of $150,000.

Motion to approve was made by Judge Scott Lee and seconded by Mayor Rushing. It was approved.

Item 11. Ms. Lindsey presented for review and comment on a grant application by Delta County to the United

States Department of Agriculture, Rural Development Community Facilities Grant program for two (2) new patrol vehicles in the amount of $94,000. Motion to approve was made by Judge Scott Lee and seconded by Mayor Rushing. It was approved.

Item 12. Ms. Lindsey presented for review and comment on grant applications to be submitted to the Department

of Health and Human Services, Office of Head Start, for continuation/refunding of Head Start programs.

• Detroit Independent School District application in the amount of $74,632. • Sulphur Springs Independent School District application in the amount of $1,360,298.

Motion to approve was made by Judge Brian Lee and seconded by Mayor Ransom. It was approved.

Regular Business

Item 13. Mr. Brown presented for consideration public input and approval of the 2021-2022 TxCDBG Community Development Fund Regional Project Priority Scoring for the ATCOG State Planning Region. He explained the process previously used and opened the floor for discussion regarding the new project priority scoring process. Shirleen Bonacci, Grant Works representative, stated that in her discussions with many communities, communities prefer road projects to score higher. She continued by saying that road projects should be on the same priority level as water and sewer projects rather than in the second priority level. Mayor Rushing stated she would like to see road projects in the first priority level for scoring as well. Lowell Walker, Mayor, City of DeKalb, suggested that the second and third priority levels have maximum scores of 25 points and 10 points, respectively. The motion for the Regional Project Priority Scoring tool was that the first priority level will be designated for water/sewer, streets/roads, bridges, drainage, and

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septic improvements projects for a score of 50 points; the second priority level will be designated for housing projects for a score of 25 points; and the third priority level will be designated for all other eligible projects for a score of 10 points.

Motion to approve was made by Mayor Rushing and seconded by Judge Howell. It was approved.

Item 14. Steven McGary, Transportation Planner, presented for consideration approval of the submission of grant

applications to United Way of Lamar County and United Way of Greater Texarkana to support ATCOG transportation services.

• United Way of Lamar County application in the amount of $25,000 for the Paris Metro Bus System. • United Way of Greater Texarkana application in the amount of $7,260 for the TRAX Rural Public

Transportation Program.

Motion to approve was made by Mayor Pro Tem Marc Reiter and seconded by Mayor Ransom. It was approved.

Item 15. Review and consider approval of revisions to the ATCOG Rural Transit District Title VI Program Plan as

required by the Federal Transit Administration. Item 15 was withdrawn, and no action was taken. TxDOT recommended additional revisions this week, so staff will incorporate those changes into the Title VI Plan and present the updates at the next meeting.

Other Business

Item 16. Mr. Brown opened the floor for discussion regarding the current COVID-19 situation. Several elected officials shared the status of their COVID-19 testing processes and results. Mr. Brown stated that a few staff, including finance staff, are working at the office, but all others are working remotely. He concluded by saying the ATCOG Office would continue to be closed to the public and that operations were going smoothly with most staff working remotely; therefore, he has not set any immediate plans for returning staff to the office

Announcements Mr. Brown announced that the next Board of Directors meeting will be held on Thursday, June 25, 2020. Location and/or meeting format to be determined based on current COVID-19 conditions.

With no other announcements Judge Williamson adjourned the meeting.

NETEDD BOARD MEMBERS PRESENT Ann Rushing, Mayor, City of Clarksville Bobby Howell, Judge, Bowie County Brady Fisher, Northeast Texas Resource & Conservation Area, Inc. Brian Lee, Judge, Titus County Doug Reeder, Judge, Morris County L.D. Williamson, Judge Red River County Marc Reiter, Mayor Pro Tem, City of Hooks Robert Newsom, Judge, Hopkins County Scott Lee, Judge, Franklin County Teresia Wims, Mayor, City of Mt. Vernon Travis Ransom, Mayor, City of Atlanta EXECUTIVE COMMITTEE MEMBERS PRESENT Ann Rushing, Mayor, City of Clarksville Bobby Howell, Judge, Bowie County Brady Fisher, Northeast Texas Resource & Conservation Area, Inc. Brian Lee, Judge, Titus County

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Doug Reeder, Judge, Morris County L.D. Williamson, Judge Red River County Marc Reiter, Mayor Pro Tem, City of Hooks Robert Newsom, Judge, Hopkins County Scott Lee, Judge, Franklin, County Teresia Wims, Mayor, City of Mt. Vernon Travis Ransom, Mayor, City of Atlanta ATCOG BOARD MEMBERS PRESENT Lowell Walker, Mayor, City of DeKalb GUESTS PRESENT Aubrey-Ann Gilmore, Texas Department of Agriculture Charles Edwards, Grant Consultant Representative Dan Perry, Texas Department of Transportation Deanne Simmons, Texas Department of Transportation Duane Good, Texas Department of Transportation Jennifer Johnston, Small Business Development Center Paris Junior College Katie Martin, Texas Department of Transportation Keith Payne, Grants Works Representative Kim Cox, The Paris News Shirleen Bonacci, Grant Works Representative Tim Wilson, Small Business Development Center Northeast Texas Community College STAFF MEMBERS PRESENT Chris Brown, Executive Director Lisa Reeve, Area Agency on Aging Manager Leslie McBride, Human Resources Manager Mary Beth Rudel, Deputy Director Melinda Tickle, Finance Director Melody Harmon, Economic Development Coordinator Paul Prange, Environmental Resources Coordinator Rea Washington, 9-1-1 Program Manager Steven McGary, Transportation Planner Toni Lindsey, Regional Development Coordinator Whitney Fezell, Homeland Security Coordinator

_________________________________________

L.D. Williamson, President Northeast Texas Economic Development District ATTEST: ____________________________

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BRIEFING PAPER

ITEM 6:

Review and consider approval to proceed in the submission of the Revolving Loan Fund (RLF) COVID-19 Plan with Addendum for the North East Texas Regional Development Corporation as required by Economic Development Administration (EDA) for approved funding.

BACKGROUND:

The COVID-19 Revolving Loan Fund (RLF) Plan, as previously approved, required terminology clarification and the addition of an addendum for tiered funding based on borrower needs.

DISCUSSION:

Development staff has added a section “COVID-19 Addendum” to the current plan which includes program specific waivers and procedures specific to COVID-19 disaster loans and funds designated specifically for this purpose.

The statement “as approved by EDA” has been added for clarification. Note: Via letter of request to EDA and subsequent approval of the request, up to $500,000 of the current capital base NETEDD RLF Funds may be transferred for use as COVID RLF Funds.

The two-tiered funding option was added as presented in the Revolving Loan Fund (RLF) COVID-19 Plan Addendum based on variation in borrower needs.

The Revolving Loan Fund Plan was amended to reflect county changes for area of service for ETCOG counties which are pending EDA approval. (If their RLF application is approved, the mentioned counties will be removed from our plan effective on the date of EDA notification).

RECOMMENDATION

Staff recommends the NETEDD Board approve the submission of the REVISED COVID-19 Plan and Addendum.

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RESOLUTION NO. BD20-41

RESOLUTION OF THE NORTHEAST TEXAS ECONOMIC DEVELOPMENT DISTRICT, INC. (NETEDD) BOARD OF DIRECTORS, APPROVING THE REVOLVING LOAN FUND (RLF) PLAN TO BE SUBMITTED TO EDA FOR APPROVAL.

WHEREAS, Under Title IX of the Public Works and Economic Development Act of 1967, as amended, the Economic Administration, herein after called EDA may assist distressed areas experiencing long-term economic deterioration or areas threatened or impacted by severe economic dislocation, and

WHEREAS, The Revolving Loan Fund Plan was developed in accordance with EDA Directive No. 17.07 dated 7/10/89 and the updated EDA Guidelines dated March 14, 2018, and

WHEREAS, the RLF Plan has become the Standard Operating Procedure for NETEDD in administering a revolving loan fund program in areas experiencing long-term economic deterioration, and/or severe economic dislocation.

NOW, THEREFORE BE IT RESOLVED BY THE NORTHEAST TEXAS ECONOMIC DEVELOPMENT DISTRICT, INC. (NETEDD):

Section 1 - That the Revolving Loan Fund (RLF) COVID-19 Plan Addendum has been reviewed by the Board of Directors.

Section 2 - That the Board has approved for the COVID-19 Loan Program the allocation of existing EDA capital base as approved by EDA of up to $500,000.

Section 3 - That the Board approves the two tiered funding options based on need as presented in the Revolving Loan Fund (RLF) COVID-19 Plan Addendum.

REVIEWED AND APPROVED THIS 24TH DAY OF SEPTEMBER, 2020.

__________________________________________ L.D. Williamson, PresidentNortheast Texas Economic Development District, Inc.

ATTEST:

__________________________________

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BRIEFING PAPER - ACTION ITEM ITEM 7: Review and consider approval for the ATCOG Executive Director to apply for the NETEDD 3 Year Planning Grant through the U.S Department of Commerce Economic Development Administration (EDA). BACKGROUND: This 3-year grant is renewed as a new application effective January 1, 2021, through December 31, 2023, with Federal funds allocated at $210,000 and in-kind match requirement of $210,000. DISCUSSION: NETEDD is applying for 3-years of federal and in-kind funding in the amount of $420,000. Budget items include Personnel expenses in the amount of $197,427 to cover Development Staff and designated finance specialist budgeted staff hours for Economic Development projects including Grants and RLF's; fringe benefits in the amount of $92,791; travel in the amount of $32,570; supplies in the amount of $9,939 for supplies required for files, electronic upgrades over three years, general office supplies and copying expenses; other expenses in the amount of $14,719, which includes rent, telephone, dues, and miscellaneous expenses; and indirect expenses in the amount of $72,554.Travel includes in-region and out-of-region staff travel to attend meetings, trainings, conferences, and online training regarding EDA, CEDS, Opportunity Zones, Pandemic Recovery, and general training; and to provide community assistance. This 3-year grant will allow NETEDD to continue working with the Comprehensive Economic Development Strategy (CEDS) committee to update the current five-year CEDS and to create a section by June 2022 with updated Economic Resiliency to include Pandemic and Economic Recovery. The CEDS will then be updated annually with any significant changes in the region. NETEDD will also continue working with strategic partners in current regional initiatives including researching deficits in the areas of communication, including broadband; the most recent issues associated with COVID-19 lock-down; an agricultural co-op to provide expanded primary and secondary markets to our producers and better profitability; transportation planning to ensure effective and efficient freight movement through the region, cost-savings to our industries, and profits to the transportation industry resulting in economic development and jobs. NETEDD will continue to partner with the Northeast Texas Workforce Board to prepare a skilled workforce. Finally, NETEDD continues to explore its role in alleviating the lack of homes, homelessness and poverty throughout the region. RECOMMENDATION: ATCOG staff recommend approval.

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RESOLUTION NO. BD20-42 RESOLUTION OF THE NORTHEAST TEXAS ECONOMIC DEVELOPMENT DISTRICT, INC. (NETEDD) BOARD OF DIRECTORS, FOR THE ATCOG EXECUTIVE DIRECTOR TO SUBMIT AN APPLICATION FOR THE NETEDD 3-YEAR PLANNING GRANT THROUGH THE U.S DEPARTMENT OF COMMERCE ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) IN THE AMOUNT OF $420,000. WHEREAS, NETEDD is applying for $210,000 of federal funds and providing in-kind match of $210,000; and WHEREAS, the NETEDD Board of Directors finds it in the best interest of the NETEDD Region, that the 3-Year Planning Grant be executed from January 1, 2021 through December 31, 2023; and WHEREAS, this 3-year grant will allow NETEDD to continue working with the Comprehensive Economic Development Strategy (CEDS) committee to update the current five-year CEDS and to create a section by June 2022 with updated Economic Resiliency to include Pandemic and Economic Recovery; and WHEREAS, the NETEDD Board of Directors designates the Executive Director as the grantee’s authorized official. The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on the behalf of the applicant agency. NOW, THEREFORE, BE IT RESOLVED BY THE NORTHEAST TEXAS ECONOMIC DEVELOPMENT DISTRICT, INC.: Section 1 - That the NETEDD Board of Directors approves submission of the grant application

for the NETEDD 3-YEAR Planning Grant through the U.S Department of Commerce Economic Development Administration (EDA).

REVIEWED THIS 24th DAY OF September, 2020.

______________________________________ L.D. Williamson, President Ark-Tex Council of Governments

ATTEST: ______________________________

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MINUTES ARK-TEX COUNCIL OF GOVERNMENTS

BOARD OF DIRECTORS MEETING

June 25, 2020

The Board of Directors of the Ark-Tex Council of Governments (ATCOG) met at 10:00 a.m., Thursday, June 25, 2020, via teleconference/webinar. (This format was made allowable by Governor Abbott’s Office in a press release on March 16, 2020.)

Item 1. Meeting was called to order.

Item 2. Brady Fisher, Northeast Texas Resource & Conservation Area, Inc. gave the invocation.


There were no members of the public present.

Item 4. Chris Brown, Executive Director, presented the following consent agenda items:

• Approval of the minutes as submitted for the ATCOG Board of Directors meeting held Thursday,April 30, 2020.

• Ratification of the contract with Texas Department of Housing and Community Affairs (TDHCA)for the CARES Emergency Solutions Grant (ESG) Program funding.

• Ratification of the project grant agreement with Texas Department of Transportation for CARESAct Rural Area Federal Formula Program funding.

Motion to approve was made by Brian Lee, Judge, Titus County, and seconded by Marc Reiter, Mayor, City of Hooks. It was approved.

Review and Comment

Item 5. Paul Prange, Environmental Resources Coordinator, presented for review and comment on an application by the US Department of the Army, Red River Army Depot, to the Texas Commission on Environmental Quality (TCEQ) for the renewal and revision of Federal Operating Permit No. 01646 to authorize the operation of the Red River Army Depot, a National Security facility, located at 100 James Carlow Drive, Texarkana, Texas.

Motion to approve was made by Scott Norton, CEO, TexAmericas Center, and seconded by Sheryl Collum, Mayor, City of Wake Village. It was approved.

Item 6. Toni Lindsey, Regional Development Coordinator, presented for review and comment on a grant application by the City of Texarkana, Texas, to the US Environmental Protection Agency (EPA) for a Brownfields Program Revolving Loan Supplemental Funding grant.

Motion to approve was made by Bobby Howell, Judge, Bowie County, and seconded by Mayor Reiter. It was approved.

Regular Business

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Item 7. Mary Beth Rudel, Deputy Director, presented for consideration approval of revisions to the ATCOG Policies and Procedures Manual.

Motion to approve was made by Mayor Collum and seconded by Judge Brian Lee. It was approved.

Item 8. Leslie McBride, Human Resources Manager, presented for consideration approval of the Texas Municipal League (TML) Health Rerate and Benefit Verification Form to continue providing insurance benefits for Plan Year 2020-2021.

Motion to approve was made by Judge Brian Lee and seconded by Mayor Collum. It was approved.

Item 9. Melinda Tickle, Finance Director, presented for consideration approval of the Investment Policy that establishes procedures to be followed in investing funds for ATCOG.

Motion to approve was made by Mr. Norton and seconded by Mayor Collum. It was approved.

Item 10. Ms. Tickle presented for consideration approval of the proposed Salary Schedule for ATCOG for fiscal year ending September 30, 2021.

Motion to approve was made by Mayor Reiter and seconded by Judge Brian Lee. It was approved.

Item 11. Mae Lewis, Housing Director, presented for consideration approval of the submission of an application to Texas Department of Housing and Community Affairs for 2020 ESG Program funds authorizing the Executive Director as the ATCOG Authorized Official.

Motion to approve was made by Judge Brian Lee and seconded by Becky Wilbanks, Judge, Cass County. It was approved.

Item 12. Steven McGary, Transportation Planner, presented for consideration approval of revisions to the ATCOG Rural Transit District Title VI Program Plan as required by the Federal Transit Administration.

Motion to approve was made by Mayor Reiter and seconded by Mayor Collum. It was approved.

Item 13. Mr. Brown presented a review and consider approval of the utilization of ATCOG’s indirect cost rate for ATCOG employees working on behalf of the Texarkana Urban Transit District.

Motion to approve was made by Judge Howell and seconded by Judge Wilbanks. It was approved.

Item 14. Mr. Brown presented for consideration approval of the submission of an interest form to the Texas Water Development Board for consideration as the Region 2 Designated Flood Planning Group Sponsor.

Motion to approve was made by Lowell Walker, Mayor, City of DeKalb, and seconded by Scott Norton, CEO, TexAmericas Center. It was approved.

Item 15. Mr. Brown presented a review and consider approval/ratification of the ATCOG COVID-19 Returning to Work at the Office Phase 1 Policy and Updated Driver Protocols.

Motion to approve was made by Judge Brian Lee and seconded by Mayor Collum. It was approved.

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Other Business

Item 16. Whitney Fezell, Homeland Security Coordinator, presented the Homeland Security Special Events Reporting Update. She encouraged the board members to participate in the 2021 Data Call for special events within their jurisdictions. The Texas Division of Emergency Management was responsible for submitting the data for each region in previous years but is asking the Councils of Governments to complete the task this year. The types of events that should be included in the data call are any preplanned special events occurring in calendar year 2021. If the event is significant to the jurisdiction, include it in the data call. The information gathered during the data call will affect the regional Homeland Security Funding allocation. The more events included in the reporting could potentially mean increased funding for the region. The emergency management coordinators will need to include information about the resources required during the event as well. Whitney will be reaching out to the Judges’ offices and the chambers of commerce to help collect the information.

Announcements

The next Executive Committee Meeting will be held Thursday, July 30, 2020. Location and/or meeting format to be determined based on current COVID-19 conditions.

EXECUTIVE COMMITTEE MEMBERS PRESENT Becky Wilbanks, Judge, Cass County Bobby Howell, Judge, Bowie County Brady Fisher, Northeast Texas Resource & Conservation Area, Inc. Brian Lee, Judge, Titus County Doug Reeder, Judge, Morris County L.D. Williamson, Judge Red River CountyMarc Reiter, Mayor, City of HooksScott Lee, Judge, Franklin, CountyScott Norton, CEO, TexAmericas Center

BOARD MEMBERS PRESENT Jean Matlock, Councilwoman, City of Texarkana, Texas John Francis, Mayor, City of Deport Lowell Walker, Mayor, City of DeKalb Sheryl Collum, Mayor, City of Wake Village

GUESTS PRESENT Rea Donna Jones, Texarkana Metropolitan Planning Organization Dan Perry, Texas Department of Transportation Tim Wilson, Northeast Texas Community College

STAFF MEMBERS PRESENT Chris Brown, Executive Director Lisa Reeve, Area Agency on Aging Manager Leslie McBride, Human Resources Manager Mae Lewis, Housing Manager Mary Beth Rudel, Deputy Director Melinda Tickle, Finance Director Melody Harmon, Economic Development Coordinator Paul Prange, Environmental Resources Coordinator Rea Washington, 9-1-1 Program Manager Steven McGary, Transportation Planner Toni Lindsey, Regional Development Coordinator Whitney Fezell, Homeland Security Coordinator

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__________________________________

L.D. Williamson, President Ark-Tex Council of Governments ATTEST: ____________________________

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--ARK-TEX COUNCIL OF GOVERNMENTS

APPLICATION / PROJECT STAFF REVIEW FOR ENVIRONMENTAL ASSESSMENT

Project SAI No: N/A Date Received: 08-17-20 Staff Assignment: Paul Prange

Applicant: City of DeKalb, Texas

Project Description: The City of DeKalb has applied to the Texas Commission on Environmental Quality (TCEQ) to renew Texas Pollutant Discharge Elimination System (TPDES) Permit No. WQ0010062002, to authorize the discharge of treated wastewater at a volume not to exceed a daily average flow of 350,000 gallons per day. The domestic wastewater treatment facility is located south of DeKalb, approximately 2.1 miles south of the intersection of US Hwy 82 and FM 992 in Bowie County, Texas. Discharge route is from the plant site to Anderson Creek; thence to Wright Patman Lake.

PROJECT/EA REVIEW: Area to be served: DeKalb, Bowie County, Texas.

Does the project comply or furnish reasonable assurances of compliance with applicable federal, state, and local laws, regulations, and ordinances? Yes. The TCEQ executive director has determined that the application is administratively complete and will conduct a technical review of the application.

Is the project consistent with state, area wide, and/or local planning or does it contribute toward goals or objectives identified at one or more of governmental levels? Yes. This permit application meets all statutory and regulatory requirements.

Has this project been coordinated through the Texas Commission on Environmental Quality? Yes, coordination is in progress.

Does the project address a clearly defined need and does the project take into account preservation of the environment? There is a clearly defined need for the renewal of this TPDES Permit to allow the continued operation of the domestic wastewater treatment facility. This facility serves the needs of all residents living within the City of DeKalb. All guidelines required by TCEQ to protect the environment are being followed, thus minimal disruption of the environment is expected.

Is the project likely to produce any significant adverse effects on the environment? No. The renewal of this permit will not authorize an increase in the number gallons of treated wastewater that can be discharged into the environment. This facility is in good operational condition. Before being discharged, the water passes through particulate filters and is then piped to a sedimentation pond located at this facility.

Do the anticipated accomplishments of the project justify the disruption to the environment? Yes. The renewal of this permit will allow the continued operation of this facility, which directly serves the needs of all citizens living within the City of DeKalb. The disruption of the environment is minimal compared to the accomplishments.

STAFF ASSESSMENT OF ENVIRONMENTAL IMPACT: The permit renewal will not create any significant detrimental impact to the environment, as determined by TCEQ.

RECOMMENDED COMMENT: Staff recommends support of this permit renewal application by the City of DeKalb, TX.

Page 16 of 66




Applicant: City of Paris, Texas

Project Description: The City of Paris has applied to the Texas Commission on Environmental Quality (TCEQ) to renew Texas Pollutant Discharge Elimination System (TPDES) Permit No. WQ0010479001, to authorize the discharge of treated wastewater at a volume not to exceed a daily average flow of 1,200,000 gallons per day. The domestic wastewater treatment facility is located at 3700 Lake Crook Road, approximately one mile west of U.S. Highway 271, directly east of Lake Crook Dam and north of the City of Paris in Lamar County, Texas. The discharge route is from the plant site to an open ditch; thence to Pine Creek; thence to Red River below Lake Texoma in Segment No. 0202 of the Red River Basin. PROJECT/EA REVIEW: Area to be served: Paris, Lamar County, Texas.

Does the project comply or furnish reasonable assurances of compliance with applicable federal, state, and local laws, regulations, and ordinances? Yes. The TCEQ executive director has determined that the application is administratively complete and has conducted a technical review of the application.



Does the project address a clearly defined need and does the project take into account preservation of the environment? There is a clearly defined need for the renewal of this TPDES Permit to allow the continued operation of the domestic wastewater treatment facility. This facility serves the needs of all residents living within the City of Paris. All guidelines required by TCEQ to protect the environment are being followed, thus minimal disruption of the environment is expected.

Is the project likely to produce any significant adverse effects on the environment? No. The renewal of this permit will not authorize an increase in the number gallons of treated wastewater that can be discharged into the environment. This facility is in good operational condition. Before being discharged, the wastewater is chemically treated to reduce harmful bacteria levels and to remove suspended solids.

Do the anticipated accomplishments of the project justify the disruption to the environment? Yes. The renewal of this permit will allow the continued operation of this facility, which directly serves the needs of all citizens living within the City of Paris. The disruption of the environment is minimal compared to the accomplishments.


RECOMMENDED COMMENT: Staff recommends support of this permit renewal application by the City of Paris, TX.

Page 17 of 66




Applicant: The City of Texarkana, Texas

Project Description: The City of Texarkana has applied to the Texas Commission on Environmental Quality (TCEQ) to renew Texas Pollutant Discharge Elimination System (TPDES) Permit No. WQ0010374005, to authorize the discharge of treated wastewater at a volume not to exceed a daily average flow of 18,000,000 gallons per day. The domestic wastewater treatment facility is located at 4,000 South State Line Avenue, Texarkana, in Bowie County, Texas. The discharge route is from the plant site directly to Days Creek.

PROJECT/EA REVIEW: Area to be served: Texarkana, Bowie County, Texas.




Does the project address a clearly defined need and does the project take into account preservation of the environment? There is a clearly defined need for the renewal of this TPDES Permit to allow the continued operation of the domestic wastewater treatment facility. This facility serves the needs of the entire population of the City of Texarkana. All guidelines required by TCEQ to protect the environment are being followed, thus minimal disruption of the environment is expected.

Is the project likely to produce any significant adverse effects on the environment? No. The renewal of this permit will not authorize an increase in the number gallons of treated wastewater that can be discharged into the environment. This facility is in good operational condition. Before being discharged, the water passes through particulate filters and is then piped to sedimentation ponds located at this facility.

Do the anticipated accomplishments of the project justify the disruption to the environment? Yes. The renewal of this permit will allow the continued operation of this facility, which directly serves the needs of all citizens living within the City of Texarkana. The disruption of the environment is minimal compared to the accomplishments.


RECOMMENDED COMMENT: Staff recommends support of this permit renewal application by the City of Texarkana.

Page 18 of 66




Applicant: City of Blossom, Texas.

Project Description: The City of Blossom, Texas has applied to the Texas Commission on Environmental Quality (TCEQ) to renew Texas Pollutant Discharge Elimination System (TPDES) Permit No. WQ0010715002 to authorize the discharge of treated wastewater at a volume not to exceed a daily average flow of 200,000 gallons per day. The facility is located approximately 3,000 feet southwest of the intersection of U.S. Highway 82 and FM 1502, approximately 4,000 feet east of the intersection of FM 194 and FM 196 in Lamar County, Texas. The discharge route is from the plant site to Cuthand Creek; thence to the Sulphur/South Sulphur River.

PROJECT/EA REVIEW: Area to be served: Blossom, Lamar County, Texas.




Does the project address a clearly defined need and does the project take into account preservation of the environment? There is a clearly defined need for the renewal of this TPDES Permit to allow the continued operation of the domestic wastewater treatment facility. This facility serves approximately 1,500 residents within the City of Blossom. All guidelines required by TCEQ to protect the environment are being followed, thus minimal disruption of the environment is expected.

Is the project likely to produce any significant adverse effects on the environment? No. The renewal of this permit will not authorize an increase in the number gallons of treated wastewater that can be discharged into the environment. Before being discharged, the water passes through particulate filters and is then piped to three sedimentation ponds located at this facility.

Do the anticipated accomplishments of the project justify the disruption to the environment? Yes. The renewal of this permit will allow the continued operation of this facility, which serves the entire population of the City of Blossom. The disruption of the environment is minimal compared to the accomplishments.


RECOMMENDED COMMENT: Staff recommends support of this permit renewal application by the City of Blossom, Texas.

Page 19 of 66

BRIEFING PAPER – ACTION ITEM

ITEM 13:

Review and consider annual renewal of the ATCOG Ethics Policy Manual and review Transportation Program funding requirements pertaining to integrity and ethical behavior as mandated by the Texas Transportation Commission and Texas Department of Transportation (TXDOT).

BACKGROUND:

On January 29, 2009, the Texas Transportation Commission adopted administrative rules that require outside entities to implement internal ethics and compliance programs. In order to remain eligible to receive the funding ATCOG is required to renew the manual annually. In addition, another rule adopted on March 25, 2010, requires public transportation entities to implement and enforce a compliance program meeting the minimum rules in order to be eligible for state and federal funding awarded after January 1, 2011, by the Texas Transportation Commission.

DISCUSSION:

The rules adopted by the Texas Transportation Commission established a framework for the internal ethics and compliance program of any entity that receives financial assistance from the department. The compliance program must satisfy certain requirements, with the goal of discouraging fraud and illegal activity. TXDOT also instituted an internal ethics and compliance program designed to further encourage ethical behavior within the department, as well as compliance with the law and departmental policies.

As a result of these rules, the Ark-Tex Council of Governments (ATCOG) compiled an “Ethics Policy Manual” consisting of sections covering all requirements, to include Record Retention, Fraud, Equal Opportunity Employment, Sexual Harassment and Sexual Misconduct, Conflicts of Interest, Personal Use of Property, and Gifts and Honoraria. The manual also includes a copy of the Code of Ethics which mirrors that established by the American Society for Public Administration and incorporates the general principles of ethical conduct set forth in Executive Order 12674. This Ethics Policy Manual was approved by the Board of Directors on December 16, 2010, making our agency eligible to apply for and receive state and federal funding.

ATCOG enforces a compliance program by reviewing and providing all employees a copy of the “Ethics Policy Manual” during new hire orientation; by conducting yearly Ethics Manual Training that is mandatory for all employees; by reminding Board members of the standard of ethical behavior that our employees and board members must meet; by internal controls used to monitor activities; and by conducting investigations of any alleged misconduct. A copy of the Ethics Policy Manual is also available on the shared administration computer folder for constant access by employees.

RECOMMENDATION:

Page 20 of 66

Staff recommends approval for the renewal of the Ethics Policy Manual. This also serves as a reminder to all Board members of the ethical requirements we must meet to receive Transportation funding and what is expected of them in their role as a member of the Board of Directors.

Page 21 of 66


RESOLUTION OF THE ARK-TEX COUNCIL OF GOVERNMENTS FOR RENEWAL OF ETHICS POLICY MANUAL FOR ARK-TEX COUNCIL OF GOVERNMENTS (ATCOG) DATED DECEMBER 16, 2010, AS REVISED MARCH 27, 2014.

WHEREAS, the Ark-Tex Council of Governments is a Regional Planning Commission established pursuant to the authority granted by Article 1011m, Revised Civil Statutes of Texas, and Arkansas Interlocal Cooperation Act 430; and

WHEREAS, the Ark-Tex Council of Governments’ Board of Directors approved a new Ethics Policy Manual in December 2010, as required by the Texas Transportation Commission in order to be eligible for state and federal funding awarded after January 1, 2011; and

WHEREAS, annual renewal of the Ethics Policy Manual is required in order to remain eligible to receive funding, such renewal being required by the Texas Department of Transportation the first month of the grant period; and

WHEREAS, the new Transportation Program grant period begins October 1, 2020, making annual renewal necessary at the September Full Board Meeting.

NOW, THEREFORE, BE IT RESOLVED BY THE ARK-TEX COUNCIL OF GOVERNMENTS BOARD OF DIRECTORS:

Section 1 - That the Ark-Tex Council of Governments approves renewal of the Ethics Policy Manual as adopted December 16, 2010, and revised March 27, 2014.

Section 2 - That the Ethics Policy Manual meets or exceeds the minimum requirements for a compliance program as set forth by the Texas Transportation Commission, thus making ATCOG eligible to receive state and federal funding.

Section 3 - That Ark-Tex Council of Governments’ staff have been trained on and adhere to all ethics policies set forth in the Ethics Policy Manual, such training to be held annually.

Section 4 - That this Resolution shall be in effect immediately upon its execution.

REVIEWED AND APPROVED THIS 24th DAY OF SEPTEMBER 2020.

_________________________________________ L. D. Williamson, PresidentArk-Tex Council of Governments

ATTEST:

______________________________

Page 22 of 66


ITEM 14:

Review and consider approval of updates to the Equal Employment Opportunity Plan as required by the Texas Department of Transportation.

BACKGROUND:

ATCOG Transportation Department has over 50 employees and is required to have an Equal Employment Opportunity Plan in place per the Texas Department of Transportation. ATCOG is required to make updates to this plan as needed.

DISCUSSION:

The purpose of the Equal Employment Opportunity Plan is to affirm that ATCOG will provide a work environment that is free from discrimination, including harassment, based on race, color, religion, age, sex, national origin, disability status, genetics, protected veteran status, sexual orientation, gender identity or expression.

The plan provides guidelines for employment practices, goals and timetables, the complaint process and data representing the ATCOG workforce. This data includes demographics of employees in each job category, salary ranges by job category, and employment practices such as separations, disciplinary actions, promotions, and hiring.

The only updates made in the plan are to update our affirmative action statement to include the newly added protected classes and the Workforce Utilization Analysis data. This section refers to our employees’ demographics. ATCOG appears to have a commendable diversity of ethnicity and gender in every job category. ATCOG is continuing to make an effort to recruit Hispanic/Latin employees.

By approving the updates to the Equal Employment Opportunity Plan, ATCOG hereby affirms to continue to commit to equal employment for all persons, regardless of race, color, creed, national origin, genetic information, sex or age.

RECOMMENDATION:

The Texas Department of Transportation has reviewed and approves the updates made in the plan. Staff recommends approval of the updates to the Equal Employment Opportunity Plan as required by the Texas Department of Transportation.

Page 23 of 66


RESOLUTION OF THE ARK-TEX COUNCIL OF GOVERNMENTS FOR APPROVAL OF THE UPDATES TO THE EQUAL EMPLOYMENT OPPORTUNITY PLAN FOR ARK-TEX COUNCIL OF GOVERNMENTS (ATCOG) DATED JUNE 29, 2017.

WHEREAS, the Ark-Tex Council of Governments is a Regional Planning Commission established pursuant to the authority granted by Article 1011m, Revised Civil Statutes of Texas, and Arkansas Interlocal Cooperation Act 430; and

WHEREAS, the Texas Department of Transportation requires ATCOG to update the Equal Employment Opportunity Plan in order to continue to receive funding (as defined in circular FTA C4704.1A); and

WHEREAS, the Equal Employment Opportunity Plan is required for ATCOG because our Transportation Program exceeds 50 employees.


Section 1 - That the Ark-Tex Council of Governments approves updates to the Equal Employment Opportunity Plan dated June 29, 2017.

Section 2 - That the Equal Employment Opportunity Plan meets or exceeds the minimum requirements provided by the Texas Department of Transportation.

Section 3 - That all ATCOG employees will be informed of the Equal Employment Opportunity Plan and will be given access to the plan on the web site and in designated locations throughout the office buildings.




ATTEST:

______________________________

Page 24 of 66

THE ARK TEX COUNCIL OF GOVERNMFBP CAFETERIA PLAN

SUMMARY PLAN DESCRIPTION

Page 25 of 66

ARK TEX COUNCIL OF GOVERNM FBP sponsors the ARK TEX COUNCIL OF GOVERNM FBP Cafeteria Plan (the"Cafeteria Plan") that allows eligible Employees to choose from a menu of different benefits paid for with pre-tax dollars.(Such plans are also commonly known as "salary reduction plans" or "Section 125 plans"). This Summary Plan Description ("SPD") describes the basic features of the Cafeteria Plan, how it generally operates andhow Employees can gain the maximum advantage from it. PLEASE NOTE: This SPD is for general informational purposes only. It does not describe every detail of the Cafeteria Plan. Ifthere is a conflict between the Cafeteria Plan documents and this SPD, then the Cafeteria Plan documents will control.

Introduction

Cafeteria Plan

CAF Q-1. How do I pay for ARK TEX COUNCIL OF GOVERNM FBP benefits on a pre-tax basis?If you become eligible for the plan during the plan year, your Employer will automatically enroll you in the plan unless youindicate to your Employer in writing (or electronically) that you do not wish to be so enrolled.

For subsequent plan years, you may elect to pay for benefits on a pre-tax basis by entering an election with the Employerduring the Open Enrollment Period. At the Employer's option, this may be done with a traditional "paper" salary reductionagreement or it may be done in electronic form. Whatever medium is used, it shall be referred to as a Salary ReductionAgreement for purposes of this SPD.

When you pay for benefits on a pre-tax basis, you reduce your salary to pay for your share of the cost of coverage with pretaxfunds instead of receiving a corresponding amount of your regular pay that would otherwise be subject to taxes.");

Example CAF Q-1(a): Sally is paid an annual salary of $30,000. Sally elects to pay for $2,000 worth of benefits for the PlanYear on a pre-tax basis. By doing so, she is electing to reduce her salary, and therefore also her taxable income, by $2,000for the year to $28,000.

From then on, you must pay contributions for such coverage by having that portion deducted from each paycheck on a pre-tax basis (generally an equal portion from each paycheck, or an amount otherwise agreed to or as deemed appropriate by thePlan Administrator).

Example CAF Q-1(b): Using the same facts from Example Q-1(a), suppose Sally is paid 26 times a year (bi-weekly). Becauseshe has elected $2,000 in benefits, she will have $76.92 deducted from each paycheck for the year ($2,000 divided by 26paychecks equals $76.92).

CAF Q-2. What benefits may be elected under the Cafeteria Plan?

The Cafeteria Plan includes the following benefit plans:

The Premium Payment Component permits an Employee to pay for his or her share of contributions for insurance plans withpretax dollars. Under the ARK TEX COUNCIL OF GOVERNM FBP Cafeteria Plan, these benefits may include:

* Accident* Bridge* Dental* Disability* Hospital Indemnity* Specific Disease or Condition* Medical* Vision

If you select any or all of these benefits, you will likely pay all or some of the contributions; the Employer may contribute someor no portion of them. The applicable amounts will be described in documents furnished separately to you as necessary fromtime to time.

The Employer may at its own discretion offer cash in lieu of benefits for participants who do not choose benefits. If theEmployer does choose this option, participants will be informed through other communications.

CAF Q-3. Who can participate in the Cafeteria Plan?

Employees who are working 30 hours per week or more are eligible to participate in the Cafeteria Plan following 0 days ofemployment with the Employer, provided that the election procedures in CAF Q-5 are followed.Page 26 of 66

An "Employee" is any individual who the Employer classifies as a common-law employee and who is on the Employer's W-2payroll.

Please note: "Employee" does not include the following:

(a) any leased employee (including but not limited to those individuals defined as leased employees in Code § 414(n)) or anindividual classified by the Employer as a contract worker, independent contractor, temporary employee, or casual employeefor the period during which such individual is so classified, whether or not any such individual is on the Employer's W-2payroll or is determined by the IRS or others to be a common-law employee of the Employer;

(b) any individual who performs services for the Employer but who is paid by a temporary or other employment or staffingagency for the period during which such individual is paid by such agency, whether or not such individual is determined bythe IRS or others to be a common-law employee of the Employer;

(c) ***RESERVED***;

(d) any individual considered "self-employed" by the IRS because of an ownership interest in ARK TEX COUNCIL OFGOVERNM FBP;

CAF Q-4. What tax savings are possible under the Cafeteria Plan?

You may save both federal income tax and FICA (Social Security/Medicare) taxes by participating in the ARK TEX COUNCILOF GOVERNM FBP Cafeteria Plan.

Example CAF Q4(a): Suppose Sally pays 15% in federal income taxes for the year. With an annual salary of $30,000, thatcould mean as much as $4,500 in federal income taxes, plus $2,295 in FICA taxes (calculated at 7.65% of income). But byelecting $2,000 of cafeteria plan benefits for the year, Sally lowers her income by $2,000, meaning she is only taxed on$28,000. This comes out to $4,200 in income tax plus $2,142 in FICA tax. That's a $453 tax savings for the year.

(Caution: This example is intended to illustrate the general effect of "pre-taxing" benefits through a cafeteria plan. It does nottake into account the effects of filing status, tax exemptions, tax deductions and other factors affecting tax liability.Furthermore, the amount of the contributions used in this example is not meant to reflect your actual contributions. It is alsonot intended to reflect specifically upon your particular tax situation. You are encouraged to consult with your accountant orother professional tax advisor with regard to your particular tax situation, especially with regard to state and local taxes.)

CAF Q-5. When does participation begin and end in the Cafeteria Plan?

After you satisfy the eligibility requirements, you can become a Participant on the first day of the next calendar month byelecting benefits in a manner such as described in CAF Q-1. An eligible Employee who does not elect benefits will not beable to elect any benefits under the Cafeteria Plan until the next Open Enrollment Period (unless a "Change in ElectionEvent" occurs, as explained in CAF Q-7).

An Employee continues to participate in the Cafeteria Plan until (a) termination of the Cafeteria Plan; or (b) the date on whichthe Participant ceases to be an eligible Employee (because of retirement, termination of employment, layoff, reduction ofhours, or any other reason). However, for purposes of pre-taxing COBRA coverage for Health Insurance Benefits, certainEmployees may be able to continue eligibility in the Cafeteria Plan for certain periods. See CAF Q-8 and CAF Q-12 for moreinformation about this as information about how termination of participation affects your Benefits.

CAF Q-6. What is meant by "Open Enrollment Period" and "Plan Year"?

The "Open Enrollment Period" is the period during which you have an opportunity to participate under the Cafeteria Plan byelecting to do so. (See Q-5.) You will be notified of the timing and duration of the Open Enrollment Period, which for any newPlan Year generally will occur during the quarter preceding the new Plan Year.

The Plan Year for the ARK TEX COUNCIL OF GOVERNM FBP Cafeteria Plan is the period beginning on 10/1/2020 andending on 9/30/2021.

CAF Q-7. Can I change my elections under the Cafeteria Plan during the Plan Year?

Except in the case of HSA elections, you generally cannot change your election to participate in the Cafeteria Plan or vary thesalary reduction amounts that you have selected during the Plan Year (this is known as the "irrevocability rule"). Of course,you can change your elections for benefits and salary reductions during the Open Enrollment Period, but those electionchanges will apply only for the following Plan Year.

However, there are several important exceptions to the irrevocability rule, many of which have to do with events in yourpersonal or professional life that may occur during the Plan Year.

Here are the exceptions to the irrevocability rule:Page 27 of 66

1. Leaves of Absence

You may change an election under the Cafeteria Plan upon FMLA and non-FMLA leave only as described in CAF Q-14.

2. Change in Status.

If one or more of the following Changes in Status occur, you may revoke your old election and make a new election, providedthat both the revocation and new election are on account of and correspond with the Change in Status (as described in item 3below). Those occurrences that qualify as a Change in Status include the events described below, as well as any otherevents that the Plan Administrator, in its sole discretion and on a uniform and consistent basis, determines are permittedunder IRS regulations:

a change in your legal marital status (such as marriage, death of a Spouse, divorce, legal separation, or annulment);●

a change in the number of your Dependents (such as the birth of a child, adoption or placement for adoption of aDependent, or death of a Dependent);

●

any of the following events that change the employment status of you, your Spouse, or your Dependent and that affectbenefits eligibility under a cafeteria plan (including this Cafeteria Plan) or other employee benefit plan of you, yourSpouse, or your Dependents. Such events include any of the following changes in employment status: termination orcommencement of employment; a strike or lockout; a commencement of or return from an unpaid leave of absence; achange in worksite; switching from salaried to hourly-paid, union to non-union, or full-time to part-time (or vice versa);incurring a reduction or increase in hours of employment; or any other similar change that makes the individual become(or cease to be) eligible for a particular employee benefit;

●

an event that causes your Dependent to satisfy or cease to satisfy an eligibility requirement for a particular benefit (suchas an employee's child covered as a dependent by an accident or health plan who turns 27 during the taxable year); or

●

a change in your, your Spouse's, or your Dependent's place of residence.●

3. Change in Status - Other Requirements.

If you wish to change your election based on a Change in Status, you must establish that the revocation is on account of andcorresponds with the Change in Status. The Plan Administrator, in its sole discretion and on a uniform and consistent basis,shall determine whether a requested change is on account of and corresponds with a Change in Status. As a general rule, adesired election change will be found to be consistent with a Change in Status event if the event affects coverage eligibility.

In addition, you must satisfy the following specific requirements in order to alter your election based on that Change in Status:

Loss of Spouse or Dependent Eligibility; Special COBRA Rules. For Health Insurance Benefits, a special rule governswhich type of election changes are consistent with the Change in Status. For a Change in Status involving your divorce,annulment, or legal separation from your Spouse, the death of your Spouse or your Dependent, or your Dependent'sceasing to satisfy the eligibility requirements for coverage, you may elect only to cancel the accident or health benefitsfor the affected Spouse or Dependent. A change in election for any individual other than your Spouse involved in thedivorce, annulment, or legal separation, your deceased Spouse or Dependent, or your Dependent that ceased to satisfythe eligibility requirements would fail to correspond with that Change in Status.

However, if you, your Spouse, or your Dependent elects COBRA continuation coverage under the Employer's planbecause you ceased to be eligible because of a reduction of hours or because your Dependent ceases to satisfyeligibility requirements for coverage, and if you remain a Participant under the terms of this Cafeteria Plan, then you mayin certain circumstances be able to increase your contributions to pay for such coverage. See CAF Q-12.

●

Gain of Coverage Eligibility Under Another Employer's Plan. For a Change in Status in which you, your Spouse, or yourDependent gains eligibility for coverage under another Employer's cafeteria plan (or qualified benefit plan) as a result ofa change in your marital status or a change in your, your Spouse's, or your Dependent's employment status, yourelection to cease or decrease coverage for that individual under the Cafeteria Plan would correspond with that Changein Status only if coverage for that individual becomes effective or is increased under the other Employer's plan.

●

4. Special Enrollment Rights. In certain circumstances, enrollment for Health Insurance Benefits may occur outside thePage 28 of 66

Open Enrollment Period, as explained in materials provided to you separately describing the Health Insurance Benefits.When a special enrollment right explained in those separate documents applies to your Medical Insurance Benefits, you maychange your election under the Cafeteria Plan to correspond with the special enrollment right. Special enrollments may alsobe available as a result of a loss of eligibility for Medicaid or for coverage under a state children's health insurance program(SCHIP) or as a result of eligibility for a state premium assistance subsidy under the plan from Medicaid or SCHIP.

5. Certain Judgments, Decrees, and Orders. If a judgment, decree, or order from a divorce, separation, annulment, orcustody change requires your child (including a foster child who is your Dependent) to be covered under the Health InsuranceBenefits, you may change your election to provide coverage for the child. If the order requires that another individual (such asyour former Spouse) cover the child, then you may change your election to revoke coverage for the child, provided that suchcoverage is, in fact, provided for the child.

6. Medicare or Medicaid. If you, your Spouse, or your Dependent becomes entitled to (i.e., becomes enrolled in) Medicareor Medicaid, then you may reduce or cancel that person's accident or health coverage under the Medical Insurance Plan.Similarly, if you, your Spouse, or your Dependent who has been entitled to Medicare or Medicaid loses eligibility for suchcoverage, then you may elect to commence or increase that person's accident or health coverage.

7. Change in Cost. If the cost charged to you for your Health Insurance Benefits significantly increases during the Plan Year,then you may choose to do any of the following: (a) make a corresponding increase in your contributions; (b) revoke yourelection and receive coverage under another benefit package option (if any) that provides similar coverage, or elect similarcoverage under the plan of your Spouse's employer; or (c) drop your coverage, but only if no other benefit package optionprovides similar coverage. Coverage under another employer plan, such as the plan of a Spouse's or Dependent's employer,may be treated as similar coverage if it otherwise meets the requirements of similar coverage.) If the cost of Health Insurancesignificantly decreases during the Plan Year, then the Plan Administrator may permit the following election changes: (a) if youare enrolled in the benefit package option that has decreased in cost, you may make a corresponding decrease in yourcontributions; (b) if you are enrolled in another benefit package option (such as the HMO option under the Medical InsurancePlan), you may change your election on a prospective basis to elect the benefit package option that has decreased in cost(such as the PPO option under the Medical Insurance Plan); or (c) if you are otherwise eligible, you may elect the benefitpackage option that has decreased in cost on a prospective basis, subject to the terms and limitations of the benefit packageoption.

For insignificant increases or decreases in the cost of benefits, however, the Plan Administrator will automatically adjust yourelection contributions to reflect the minor change in cost.

The Plan Administrator generally will notify you of increases or decreases in the cost of Health Insurance benefits.

8. Change in Coverage. You may also change your election if one of the following events occurs:

Significant Curtailment of Coverage. If your Health Insurance Benefits coverage is significantly curtailed without a loss ofcoverage (for example, when there is an increase in the deductible under the Medical Insurance Benefits), then you mayrevoke your election for that coverage and elect coverage under another benefit package option that provides similarcoverage. (Coverage under a plan is significantly curtailed only if there is an overall reduction of coverage under theplan generally loss of one particular physician in a network does not constitute significant curtailment.) If your HealthInsurance Benefits coverage is significantly curtailed with a loss of coverage (for example, if you lose all coverage underthe option by reason of an overall lifetime or annual limitation), then you may either revoke your election and electcoverage under another benefit package option that provides similar coverage, elect similar coverage under the plan ofyour Spouse's employer, or drop coverage, but only if there is no option available under the plan that provides similarcoverage. (The Plan Administrator generally will notify you of significant curtailments in Medical Insurance Benefitscoverage.

●

Addition or Significant Improvement of Cafeteria Plan Option. If the Cafeteria Plan adds a new option or significantlyimproves an existing option, then the Plan Administrator may permit Participants who are enrolled in an option otherthan the new or improved option to elect the new or improved option. Also, the Plan Administrator may permit eligibleEmployees to elect the new or improved option on a prospective basis, subject to limitations imposed by the applicableoption.

●

Loss of Other Group Health Coverage. You may change your election to add group health coverage for you, yourSpouse, or your Dependent, if any of you loses coverage under any group health coverage sponsored by agovernmental or educational institution (for example, a state children's health insurance program or certain Indian tribalprograms).

●

Change in Election Under Another Employer Plan. You may make an election change that is on account of andcorresponds with a change made under another employer plan (including a plan of the Employer or a plan of your

●

Page 29 of 66

Spouse's or Dependent's employer), so long as (a) the other cafeteria plan or qualified benefits plan permits itsparticipants to make an election change permitted under the IRS regulations; or (b) the Cafeteria Plan permits you tomake an election for a period of coverage (for example, the Plan Year) that is different from the period of coverageunder the other cafeteria plan or qualified benefits plan, which it does.

For example, if an election to drop coverage is made by your Spouse during his or her Employer's open enrollment, you mayadd coverage under the Cafeteria Plan to replace the dropped coverage.

9. Intention or Need to Obtain Coverage though a Marketplace Established under the Affordable Care Act.

You may revoke your Health Insurance Benefits coverage mid-Plan Year if either one of the following applies:

You are seeking to enroll yourself and any other related individuals in coverage to be obtained through a Marketplace.●

You have experienced a reduction of hours and reasonably expect to be working less than 30 hours for the foreseeablefuture and will seek coverage to be obtained through a Marketplace.

●

CAF Q-8. What happens if my employment ends during the Plan Year or I lose eligibility for other reasons?

If your employment with the Employer is terminated during the Plan Year, then your active participation in the Cafeteria Planwill cease and you will not be able to make any more contributions to the Cafeteria Plan for Insurance Benefits.

See CAF Q-12 for information on your right to continued or converted group health coverage after termination of youremployment.

For purposes of pre-taxing COBRA coverage for Health Insurance Benefits, certain Employees may be able to continueeligibility in the Cafeteria Plan for certain periods. See CAF Q-12.

If you are rehired within the same Plan Year and are eligible for the Cafeteria Plan, then you may make new elections,provided that you are rehired more than 30 days after you terminated employment. If you are rehired within 30 days or lessduring the same Plan Year, then your prior elections will be reinstated.

If you cease to be an eligible Employee for reasons other than termination of employment, such as a reduction of hours, thenyou must complete the waiting period described in CAF Q-3 before again becoming eligible to participate in the Plan.

CAF Q-9. ***RESERVED***

CAF Q-10. How long will the Cafeteria Plan remain in effect?

Although the Employer expects to maintain the Cafeteria Plan indefinitely, it has the right to amend or terminate all or any partof the Cafeteria Plan at any time for any reason. It is also possible that future changes in state or federal tax laws may requirethat the Cafeteria Plan be amended accordingly.

CAF Q-11. What happens if my claim for benefits is denied?

Insurance Benefits

The applicable insurance company will decide your claim in accordance with its claims procedures. If your claim is denied,you may appeal to the insurance company for a review of the denied claim. If you don't appeal on time, you will lose yourright to file suit in a state or federal court, as you will not have exhausted your internal administrative appeal rights (whichgenerally is a prerequisite to bringing a suit in state or federal court). For more information about how to file a claim and fordetails regarding the medical insurance company's claims procedures, consult the claims procedure applicable under thatplan or policy, as described in the plan document or summary plan description for the Insurance Plan.

Appeals.

If your claim is denied in whole or part, then you (or your authorized representative) may request review upon writtenapplication to the "Committee" (the Benefits Committee that acts on behalf of the Plan Administrator with respect to appeals).Your appeal must be made in writing within 180 days after your receipt of the notice that the claim was denied. If you do notappeal on time, you will lose the right to appeal the denial and the right to file suit in court. Your written appeal should statethe reasons that you feel your claim should not have been denied. It should include any additional facts and/or documentsthat you feel support your claim. You will have the opportunity to ask additional questions and make written comments, andyou may review (upon request and at no charge) documents and other information relevant to your appeal.

Decision on Review. Page 30 of 66

Your appeal will be reviewed and decided by the Committee or other entity designated in the Plan in a reasonable time notlater than 60 days after the Committee receives your request for review. The Committee may, in its discretion, hold a hearingon the denied claim. Any medical expert consulted in connection with your appeal will be different from and not subordinate toany expert consulted in connection with the initial claim denial. The identity of a medical expert consulted in connection withyour appeal will be provided. If the decision on review affirms the initial denial of your claim, you will be furnished with a noticeof adverse benefit determination on review setting forth:

the specific reason(s) for the decision on review;●

the specific Plan provision(s) on which the decision is based;●

a statement of your right to review (upon request and at no charge) relevant documents and other information;●

if an internal rule, guideline, protocol, or other similar criterion is relied on in making the decision on review, then adescription of the specific rule, guideline, protocol, or other similar criterion or a statement that such a rule, guideline,protocol, or other similar criterion was relied on and that a copy of such rule, guideline, protocol, or other criterion willbeprovided free of charge to you upon request;

●

CAF Q-12. What is "Continuation Coverage" and how does it work?

COBRA

If you have elect Health Insurance Benefits under this Plan, you may have certain rights to the continuation of such benefitsafter a "Qualifying Event" (e.g., a termination of employment). See Appendix B of this SPD for a detailed description of yourrights to "continuation coverage" under COBRA.

USERRA

Continuation and reinstatement rights may also be available if you are absent from employment due to service in theuniformed services pursuant to the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). Moreinformation about coverage under USERRA is available from the Plan Administrator.

CAF Q-13. How will participating in the Cafeteria Plan affect my Social Security and other benefits?

Participating in the Cafeteria Plan will reduce the amount of your taxable income, which may result in a decrease in yourSocial Security benefits and/or other benefits which are based on taxable income. However, the tax savings that you realizethrough Cafeteria Plan participation will often more than offset any reduction in other benefits. If you are still unsure, you areencouraged to consult with your accountant or other tax advisor.

CAF Q-14. How do leaves of absence (such as under FMLA) affect my benefits?

FMLA Leaves of Absence.

If the Employer is subject to the federal Family and Medical Leave Act of 1993 and you go on a qualifying leave under theFMLA, then to the extent required by the FMLA your Employer will continue to maintain your Health Insurance Benefits on thesame terms and conditions as if you were still active (that is, your Employer will continue to pay its share of the contributionsto the extent that you opt to continue coverage). Your Employer may require you to continue all Medical Insurance Benefitscoverage while you are on paid leave (so long as Participants on non-FMLA paid leave are required to continue coverage). Ifso, you will pay your share of the contributions by the method normally used during any paid leave (for example, on a pre-taxsalary-reduction basis).

If you are going on unpaid FMLA leave (or paid FMLA leave where coverage is not required to be continued) and you opt tocontinue your Insurance Benefits, then you may pay your share of the contributions in one of three ways: (a) with after-taxdollars while on leave; (b) with pretax dollars to the extent that you receive compensation during the leave, or by pre-payingall or a portion of your share of the contributions for the expected duration of the leave on a pre-tax salary reduction basis outof your pre-leave compensation, including unused sick days and vacation days (to pre-pay in advance, you must make aspecial election before such compensation normally would be available to you (but note that prepayments with pre-tax dollarsmay not be used to pay for coverage during the next Plan Year); or (c) by other arrangements agreed upon by you and thePlan Administrator (for example, the Plan Administrator may pay for coverage during the leave and withhold amounts fromyour compensation upon your return from leave).

If your Employer requires all Participants to continue Insurance Benefits during the unpaid FMLA leave, then you maydiscontinue paying your share of the required contributions until you return from leave. Upon returning from leave, you mustpay your share of any required contributions that you did not pay during the leave. Payment for your share will be withheldfrom your compensation either on a pre-tax or after-tax basis, depending on what you and the Plan Administrator agree to.

If your Health Insurance coverage ceases while you are on FMLA leave (e.g., for non-payment of required contributions), youwill be permitted to re-enter such Benefits, as applicable, upon return from such leave on the same basis as when you were

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participating in the Plan before the leave or as otherwise required by the FMLA. You may be required to have coverage forsuch Benefits reinstated so long as coverage for Employees on non-FMLA leave is required to be reinstated upon return fromleave.

If you are commencing or returning from FMLA leave, then your election for non-health benefits provided under this Plan, ifany, will be treated in the same way as under your Employer's policy for providing such Benefits for Participants on a non-FMLA leave (see below). If that policy permits you to discontinue contributions while on leave, then upon returning from leaveyou will be required to repay the contributions not paid by you during leave. Payment will be withheld from your compensationeither on a pre-tax or after-tax basis, as agreed to by the Plan Administrator and you or as the Plan Administrator otherwisedeems appropriate.

Non-FMLA Leaves of Absence.

If you go on an unpaid leave of absence that does not affect eligibility, then you will continue to participate and thecontribution due from you (if not otherwise paid by your regular salary reductions) will be paid by pre-payment before goingon leave, with after-tax contributions while on leave, or with catch-up contributions after the leave ends, as determined by thePlan Administrator. If you go on an unpaid leave that does affect eligibility, then the Change in Status rules will apply.

Premium Payment BenefitsPREM Q-1. What are "Premium Payment Benefits"?

As described in CAF Q-1, if you elect Premium Payment Benefits you will be able to pay for your share of contributions forInsurance Benefits with pre-tax dollars by electing to do so. Because the share of the contributions that you pay will be withpre-tax funds, you may save both federal income taxes and FICA (Social Security) taxes. See Q-4.

PREM Q-2. How are my Premium Payment Benefits paid?

As described in CAF Q-1 and in PREM Q-1, if you select an Insurance Plan described in CAF Q-2, then you may be requiredto pay a portion of the contributions. When you complete the Election Form/Salary Reduction Agreement, if you elect to payfor benefits on a pre-tax basis you agree to a salary reduction to pay for your share of the cost of coverage (also known ascontributions) with pre-tax funds instead of receiving a corresponding amount of your regular pay that would otherwise besubject to taxes. From then on, you must pay a contribution for such coverage by having that portion deducted from eachpaycheck on a pre-tax basis (generally an equal portion from each paycheck, or an amount otherwise agreed to or asdeemed appropriate by the Plan Administrator).

The Employer may contribute all, some, or no portion of the Premium Payment Benefits that you have selected, as describedin documents furnished separately to you from time to time.

MiscellaneousMISC Q-1

What are my ERISA Rights?

The Cafeteria Plan is not an ERISA welfare benefit plan under the Employee Retirement Income Security Act of 1974(ERISA). The SPDs of the various benefits components of the Plan will describe your rights under ERISA, if applicable, underthat component.

Regardless, a participant in the Cafeteria Plan, you are entitled to certain rights and protections under ERISA. ERISAprovides that all participants shall be entitled to:

Examine, without charge, at the Plan Administrator's office and at other specified locations (such as worksites) alldocuments governing the Plan, including insurance contracts, and a copy of the latest annual report (Form 5500 Series),if any, filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the EmployeeBenefits Security Administration;

●

Obtain, upon written request to the Administrator, copies of documents governing the operation of the Plan, includinginsurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series)

●

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and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies); andReceive a summary of the Plan's annual financial report, if any. The Plan Administrator is required by law to furnisheach participant with a copy of this summary annual report.

●

COBRA and HIPAA Rights. You have a right to continue your Health Insurance Plan coverage for yourself if there is a lossof coverage under the plan as a result of a qualifying event. You or your dependents may have to pay for such coverage.Review this SPD and the documents governing the plan on the rules governing your COBRA continuation coverage rights.

HIPAA Privacy Rights. Under another provision of HIPAA, group health plans are required to take steps to ensure thatcertain "protected health information" (PHI) is kept confidential. You may receive a separate notice from the Employer (ormedical insurers) that outlines its health privacy policies.

Fiduciary Obligations. In addition to creating rights for participants, ERISA imposes duties upon the people who areresponsible for the operation of the employee benefits plan. The people who operate your plan, called "fiduciaries" of theplan, have a duty to do so prudently and in the interest of you and other participants.

No Discrimination. No one, including your employer or any other person, may fire you or otherwise discriminate against youin any way to prevent you from obtaining a plan benefit or exercising your rights under ERISA.

Right to Review. If your claim for a benefit is denied or ignored in whole or in part, you have a right to know why this wasdone, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain timeschedules.

Enforcing Your Rights. Under ERISA, there are steps that you can take to enforce these rights. For instance, if you requesta copy of plan documents or the latest annual report (if any) from the plan and do not receive them within 30 days, you mayfile suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay youup to $110 a day until you receive them, unless the materials were not sent because of reasons beyond the control of thePlan Administrator. If you have a claim for benefits that is denied or ignored in whole or in part, then you may file suit in astate or federal court (but only if you have first filed your claim under the Plan's claims procedures and, if applicable, filed atimely appeal of any denial of your claim).

If it should happen that plan fiduciaries misuse the plan's money, or if you are discriminated against for asserting your rights,you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide whoshould pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costsand fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

Assistance With Your Questions. If you have any questions about your plan, you should contact the Plan Administrator. If youhave any questions about this statement or about your rights under ERISA or HIPAA, or if you need assistance in obtainingdocuments from the Plan Administrator, you should contact the nearest office of the Employee Benefits SecurityAdministration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance andInquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington,D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling thepublications hotline of the Employee Benefits Security Administration

MISC Q-2. What other general information should I know?

This MISC Q-2 contains certain general information that you may need to know about the Plan.

Plan Information

Official Name of the Plan: ARK TEX COUNCIL OF GOVERNM FBP Cafeteria Plan

Plan Number: 501

Effective Date: 10/1/2020.

Plan Year: 10/1/2020 to 9/30/2021. Your Plan's records are maintained on this period of time

Type of Plan: Welfare plan providing various insurance benefits

Employer/Plan Sponsor Information

Name and Address:

ARK TEX COUNCIL OF GOVERNM FBP Page 33 of 66

PO BOX 5307TEXARKANA, TX 75505Federal employee tax identification number (EIN): 751293383

Plan Administrator Information

Name, Address, and business telephone number:

ARK TEX COUNCIL OF GOVERNM FBP

PO BOX 5307TEXARKANA, TX 75505Attention: Human Resources ManagerTelephone: 9038328636Agent for Service of Legal Process

The name and address of the Plan's agent for service of legal process is:

ARK TEX COUNCIL OF GOVERNM FBP

PO BOX 5307TEXARKANA, TX 75505Attention: Benefits CommitteeQualified Medical Child Support Order

The Health Insurance Plans will provide benefits as required by any qualified medical child support order (QMCSO), asdefined in ERISA § 609(a). The Plan has detailed procedures for determining whether an order qualifies as a QMCSO.Participants and beneficiaries can obtain, without charge, a copy of such procedures from the Plan Administrator.

Newborns' and Mothers' Health Protection Act of 1996

Group health plans and health insurance issuers generally may not, under federal law, restrict benefits for any hospital lengthof stay in connection with childbirth for the mother or newborn child to less than 48 hours following a vaginal delivery or toless than 96 hours following a cesarean section. However, federal law generally does not prohibit the mother's or newborn'sattending provider, after consulting with the mother, from discharging the mother or her newborn earlier than 48 hours (or 96hours, as applicable). In any case, plans and issuers may not, under federal law, require that a provider obtain authorizationfrom the plan or the issuer for prescribing a length of stay not in excess of 48 hours (or 96 hours).

Page 34 of 66

Appendix A

***Affiliated Employers***

Page 35 of 66

Appendix B

COBRA CONTINUATION COVERAGE RIGHTS under the ARK TEX COUNCIL OF GOVERNM FBPCafeteria Plan (the "Plan")The following paragraphs generally explain COBRA coverage, when it may become available to you and your family, andwhat you need to do to protect the right to receive it. PLEASE READ THE FOLLOWING CAREFULLY.

The ARK TEX COUNCIL OF GOVERNM FBP Cafeteria Plan has group health insurance components and you may beenrolled in one or more of these components. COBRA (and the description of COBRA coverage contained in this SPD)applies only to the group health plan benefits offered under the Plan and not to any other benefits offered under the Plan orby ARK TEX COUNCIL OF GOVERNM FBP. The Plan provides no greater COBRA rights than what COBRA requires -nothing in this SPD is intended to expand your rights beyond COBRA's requirements.

What Is COBRA Coverage?

COBRA coverage is a continuation of Plan coverage when coverage would otherwise end because of a life event known as a"qualifying event." Specific qualifying events are listed below in the section entitled "Who Is Entitled to Elect COBRA?"

COBRA coverage may become available to "qualified beneficiaries"

After a qualifying event occurs and any required notice of that event is properly provided to ARK TEX COUNCIL OFGOVERNM FBP, COBRA coverage must be offered to each person losing Plan coverage who is a "qualified beneficiary."You, your spouse, and your dependent children could become qualified beneficiaries and would be entitled to elect COBRA ifcoverage under the Plan is lost because of the qualifying event. (Certain newborns, newly adopted children, and alternaterecipients under QMCSOs may also be qualified beneficiaries. This is discussed in more detail in separate paragraphsbelow.)

Who Is Entitled to Elect COBRA?

We use the pronoun "you" in the following paragraphs regarding COBRA to refer to each person covered under the Plan whois or may become a qualified beneficiary.

Qualifying events for the covered employee

If you are an employee, you will be entitled to elect COBRA if you lose your group health coverage under the Plan becauseeither one of the following qualifying events happens:

your hours of employment are reduced; or●

your employment ends for any reason other than your gross misconduct.●

Qualifying events for the covered spouse

If you are the spouse of an employee, you will be entitled to elect COBRA if you lose your group health coverage under thePlan because any of the following qualifying events happens:

your spouse dies;●

your spouse's hours of employment are reduced;●

your spouse's employment ends for any reason other than his or her gross misconduct;●

you become divorced or legally separated from your spouse. Also, if your spouse (the employee) reduces or eliminatesyour group health coverage in anticipation of a divorce or legal separation, and a divorce or legal separation lateroccurs, then the divorce or legal separation may be considered a qualifying event for you even though your coveragewas reduced or eliminated before the divorce or separation.

●

Qualifying events for dependent children

If you are the dependent child of an employee, you will be entitled to elect COBRA if you lose your group health coverageunder the Plan because any of the following qualifying events happens:

your parent-employee dies;●

your parent-employee's hours of employment are reduced;●

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your parent-employee's employment ends for any reason other than his or her gross misconduct;●

you stop being eligible for coverage under the Plan as a "dependent child."●

Electing COBRA after leave under the Family and Medical Leave Act (FMLA)

Under special rules that apply if an employee does not return to work at the end of an FMLA leave, some individuals may beentitled to elect COBRA even if they were not covered under the Plan during the leave. Contact ARK TEX COUNCIL OFGOVERNM FBP for more information about these special rules.

Special second election period for certain eligible employees who did not elect COBRA

Certain employees and former employees who are eligible for federal trade adjustment assistance (TAA) or alternative tradeadjustment assistance (ATAA) are entitled to a second opportunity to elect COBRA for themselves and certain familymembers (if they did not already elect COBRA) during a special second election period of 60 days or less (but only if theelection is made within six months after Plan coverage is lost).

When Is COBRA Coverage Available?

When the qualifying event is the end of employment, reduction of hours of employment, or death of the employee, the Planwill offer COBRA coverage to qualified beneficiaries. You need not notify ARK TEX COUNCIL OF GOVERNM FBP of any ofthese qualifying events.

Caution:

You stop being eligible for coverage as dependent child whenever you fail to satisfy any part of the plan's definition ofdependent child.

You must notify the plan administrator of certain qualifying events by this deadline

For the other qualifying events (divorce or legal separation of the employee and spouse or a dependent child's losingeligibility for coverage as a dependent child), a COBRA election will be available to you only if you notify ARK TEX COUNCILOF GOVERNM FBP in writing within 60 days after the later of (1) the date of the qualifying event; or (2) the date on which thequalified beneficiary loses (or would lose) coverage under the terms of the Plan as a result of the qualifying event.

No COBRA election will be available unless you follow the Plan's notice procedures and meet the notice deadline

In providing this notice, you must use the Plan's form entitled "Notice of Qualifying Event Form" and you must follow thenotice procedures specified in the section below entitled "Notice Procedures." If these procedures are not followed or if thenotice is not provided to ARK TEX COUNCIL OF GOVERNM FBP during the 60-day notice period, YOU WILL LOSE YOURRIGHT TO ELECT COBRA.

How to elect COBRA

To elect COBRA, you must complete the Election Form that is part of the Plan's COBRA election notice and mail or hand-deliver it to ARK TEX COUNCIL OF GOVERNM FBP. An election notice will be provided to qualified beneficiaries at the timeof a qualifying event. You may also obtain a copy of the Election Form from ARK TEX COUNCIL OF GOVERNM FBP.

Deadline for COBRA election

If mailed, your election must be postmarked (or if hand-delivered, your election must be received by the individual at theaddress specified on the Election Form) no later than 60 days after the date of the COBRA election notice provided to you atthe time of your qualifying event (or, if later, 60 days after the date that Plan coverage is lost). IF YOU DO NOT SUBMIT ACOMPLETED ELECTION FORM BY THIS DUE DATE, YOU WILL LOSE YOUR RIGHT TO ELECT COBRA.

Independent election rights

Each qualified beneficiary will have an independent right to elect COBRA.

Any qualified beneficiary for whom COBRA is not elected within the 60-day election period specified in the Plan's COBRAelection notice WILL LOSE HIS OR HER RIGHT TO ELECT COBRA COVERAGE.

Special Considerations in Deciding Whether to Elect COBRA

In considering whether to elect COBRA, you should take into account that a failure to elect COBRA will affect your futurerights under federal law. You have the right to request special enrollment in another group health plan for which you areotherwise eligible (such as a plan sponsored by your spouse's employer) within 30 days after your group health coverage

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under the Plan ends because of one of the qualifying events listed above. You will also have the same special enrollmentright at the end of COBRA coverage if you get COBRA coverage for the maximum time available to you.

Length of COBRA Coverage

COBRA coverage is a temporary continuation of coverage. The COBRA coverage periods described below are maximumcoverage periods.

COBRA coverage can end before the end of the maximum coverage period for several reasons, which are described in thesection below entitled "Termination of COBRA Coverage Before the End of the Maximum Coverage Period."

Death, divorce, legal separation, or child's loss of dependent status

When Plan coverage is lost due to the death of the employee, the covered employee's divorce or legal separation, or adependent child's losing eligibility as a dependent child, COBRA coverage under the Plan's Medical and Dental componentscan last for up to a total of 36 months.

If the covered employee becomes entitled to Medicare within 18 months before his or her termination of employment orreduction of hours.

When Plan coverage is lost due to the end of employment or reduction of the employee's hours of employment, and theemployee became entitled to Medicare benefits less than 18 months before the qualifying event, COBRA coverage under thePlan's Medical and Dental components for qualified beneficiaries (other than the employee) who lose coverage as a result ofthe qualifying event can last until up to 36 months after the date of Medicare entitlement. For example, if a covered employeebecomes entitled to Medicare eight months before the date on which his employment terminates, COBRA coverage for hisspouse and children who lost coverage as a result of his termination can last up to 36 months after the date of Medicareentitlement, which is equal to 28 months after the date of the qualifying event (36 months minus eight months). This COBRAcoverage period is available only if the covered employee becomes entitled to Medicare within 18 months BEFORE thetermination or reduction of hours.

Termination of employment or reduction of hours

Otherwise, when Plan coverage is lost due to the end of employment or reduction of the employee's hours of employment,COBRA coverage under the Plan's Medical and Dental components generally can last for only up to a total of 18 months.

Extension of Maximum Coverage Period

If the qualifying event that resulted in your COBRA election was the covered employee's termination of employment orreduction of hours, an extension of the maximum period of coverage may be available if a qualified beneficiary is disabled ora second qualifying event occurs. You must notify ARK TEX COUNCIL OF GOVERNM FBP of a disability or a secondqualifying event in order to extend the period of COBRA coverage. Failure to provide notice of a disability or second qualifyingevent will eliminate the right to extend the period of COBRA coverage.

Disability extension of COBRA coverage

If a qualified beneficiary is determined by the Social Security Administration to be disabled and you notify ARK TEXCOUNCIL OF GOVERNM FBP in a timely fashion, all of the qualified beneficiaries in your family may be entitled to receiveup to an additional 11 months of COBRA coverage, for a total maximum of 29 months. This extension is available only forqualified beneficiaries who are receiving COBRA coverage because of a qualifying event that was the covered employee'stermination of employment or reduction of hours. The disability must have started at some time before the 61st day after thecovered employee's termination of employment or reduction of hours and must last at least until the end of the period ofCOBRA coverage that would be available without the disability extension (generally 18 months, as described above). Eachqualified beneficiary will be entitled to the disability extension if one of them qualifies.

You must notify ARK TEX COUNCIL OF GOVERNM FBP of a qualified beneficiary's disability by this deadline

The disability extension is available only if you notify ARK TEX COUNCIL OF GOVERNM FBP in writing of the SocialSecurity Administration's determination of disability within 60 days after the latest of:

the date of the Social Security Administration's disability determination;●

the date of the covered employee's termination of employment or reduction of hours; and●

the date on which the qualified beneficiary loses (or would lose) coverage under the terms of the Plan as a result of thecovered employee's termination of employment or reduction of hours.

●

You must also provide this notice within 18 months after the covered employee's termination of employment or reduction ofhours in order to be entitled to a disability extension.

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No disability extension will be available unless you follow the Plan's notice procedures and meet the notice deadline

In providing this notice, you must use the Plan's form entitled "Notice of Disability Form" and you must follow the noticeprocedures specified in the section below entitled "Notice Procedures."

If these procedures are not followed or if the notice is not provided to ARK TEX COUNCIL OF GOVERNM FBP during the 60-day notice period and within 18 months after the covered employee's termination of employment or reduction of hours, thenthere will be no disability extension of COBRA coverage.

Second qualifying event extension of COBRA coverage

An extension of coverage will be available to spouses and dependent children who are receiving COBRA coverage if asecond qualifying event occurs during the 18 months (or, in the case of a disability extension, the 29 months) following thecovered employee's termination of employment or reduction of hours. The maximum amount of COBRA coverage availablewhen a second qualifying event occurs is 36 months. Such second qualifying events may include the death of a coveredemployee, divorce or legal separation from the covered employee, or a dependent child's ceasing to be eligible for coverageas a dependent under the Plan. These events can be a second qualifying event only if they would have caused the qualifiedbeneficiary to lose coverage under the Plan if the first qualifying event had not occurred. (This extension is not availableunder the Plan when a covered employee becomes entitled to Medicare after his or her termination of employment orreduction of hours.)

You must notify ARK TEX COUNCIL OF GOVERNM FBP of a second qualifying event by this deadline

This extension due to a second qualifying event is available only if you notify ARK TEX COUNCIL OF GOVERNM FBP inwriting of the second qualifying event within 60 days after the date of the second qualifying event.

No extension will be available unless you follow the Plan's notice procedures and meet the notice deadline

In providing this notice, you must use the Plan's form entitled "Notice of Second Qualifying Event Form" (you may obtain acopy of this form from ARK TEX COUNCIL OF GOVERNM FBP at no charge), and you must follow the notice proceduresspecified in the section below entitled "Notice Procedures." If these procedures are not followed or if the notice is not providedto ARK TEX COUNCIL OF GOVERNM FBP during the 60-day notice period, then there will be no extension of COBRAcoverage due to a second qualifying event.

Termination of COBRA Coverage Before the End of the Maximum Coverage Period

COBRA coverage will automatically terminate before the end of the maximum period if:

any required premium is not paid in full on time;●

a qualified beneficiary becomes entitled to Medicare benefits (under Part A, Part B, or both) after electing COBRA;●

the employer ceases to provide any group health plan for its employees; or●

during a disability extension period, the disabled qualified beneficiary is determined by the Social Security Administrationto be no longer disabled (COBRA coverage for all qualified beneficiaries, not just the disabled qualified beneficiary, willterminate).

●

COBRA coverage may also be terminated for any reason the Plan would terminate coverage of a participant or beneficiarynot receiving COBRA coverage (such as fraud).

You must notify ARK TEX COUNCIL OF GOVERNM FBP if a qualified beneficiary becomes entitled to Medicare or obtainsother group health plan coverage

You must notify ARK TEX COUNCIL OF GOVERNM FBP in writing within 30 days if, after electing COBRA, a qualifiedbeneficiary becomes entitled to Medicare (Part A, Part B, or both) or becomes covered under other group health plancoverage. In addition, if you were already entitled to Medicare before electing COBRA, notify Employer of the date of yourMedicare entitlement at the address shown in the section below entitled "Notice Procedures."

You must notify ARK TEX COUNCIL OF GOVERNM FBP if a qualified beneficiary ceases to be disabled

If a disabled qualified beneficiary is determined by the Social Security Administration to no longer be disabled, you must notifyARK TEX COUNCIL OF GOVERNM FBP of that fact within 30 days after the Social Security Administration's determination.

Cost of COBRA Coverage

Each qualified beneficiary is required to pay the entire cost of COBRA coverage. The amount a qualified beneficiary may berequired to pay may not exceed 102% (or, in the case of an extension of COBRA coverage due to a disability, 150%) of the

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cost to the group health plan (including both employer and employee contributions) for coverage of a similarly situated planparticipant or beneficiary who is not receiving COBRA coverage. The amount of your COBRA premiums may change fromtime to time during your period of COBRA coverage and will most likely increase over time. You will be notified of COBRApremium changes.

Payment for COBRA Coverage

How premium payments must be made

All COBRA premiums must be paid by check. Your first payment and all monthly payments for COBRA coverage must bemailed or hand-delivered to the individual at the payment address specified in the election notice provided to you at the timeof your qualifying event. However, if the Plan notifies you of a new address for payment, you must mail or hand-deliver allpayments for COBRA coverage to the individual at the address specified in that notice of a new address.

When premium payments are considered to be made

If mailed, your payment is considered to have been made on the date that it is postmarked. If hand-delivered, your payment isconsidered to have been made when it is received by the individual at the address specified above. You will not beconsidered to have made any payment by mailing or hand-delivering a check if your check is returned due to insufficientfunds or otherwise.

First payment for COBRA coverage

If you elect COBRA, you do not have to send any payment with the Election Form. However, you must make your firstpayment for COBRA coverage not later than 45 days after the date of your election. (This is the date your Election Form ispostmarked, if mailed, or the date your Election Form is received by the individual at the address specified for delivery of theElection Form, if hand-delivered.) See the section above entitled "Electing COBRA Coverage."

Your first payment must cover the cost of COBRA coverage from the time your coverage under the Plan would haveotherwise terminated up through the end of the month before the month in which you make your first payment. (For example,Sue's employment terminates on September 30, and she loses coverage on September 30. Sue elects COBRA on November15. Her initial premium payment equals the premiums for October and November and is due on or before December 30, the45th day after the date of her COBRA election.)

You are responsible for making sure that the amount of your first payment is correct. You may contact ARK TEX COUNCILOF GOVERNM FBP using the contact information provided below to confirm the correct amount of your first payment. Claimsfor reimbursement will not be processed and paid until you have elected COBRA and made the first payment for it.

If you do not make your first payment for COBRA coverage in full within 45 days after the date of your election, you will loseall COBRA rights under the Plan.

Monthly payments for COBRA coverage

After you make your first payment for COBRA coverage, you will be required to make monthly payments for each subsequentmonth of COBRA coverage. The amount due for each month for each qualified beneficiary will be disclosed in the electionnotice provided to you at the time of your qualifying event. Under the Plan, each of these monthly payments for COBRAcoverage is due on the first day of the month for that month's COBRA coverage. If you make a monthly payment on or beforethe first day of the month to which it applies, your COBRA coverage under the Plan will continue for that month without anybreak. ARK TEX COUNCIL OF GOVERNM FBP will not send periodic notices of payments due for these coverage periods(that is, we will not send a bill to you for your COBRA coverage - it is your responsibility to pay your COBRA premiums ontime).

Grace periods for monthly COBRA premium payments

Although monthly payments are due on the first day of each month of COBRA coverage, you will be given a grace period of30 days after the first day of the month to make each monthly payment. Your COBRA coverage will be provided for eachmonth as long as payment for that month is made before the end of the grace period for that payment. However, if you pay amonthly payment later than the first day of the month to which it applies, but before the end of the grace period for the month,your coverage under the Plan will be suspended as of the first day of the month and then retroactively reinstated (going backto the first day of the month) when the monthly payment is received. This means that any claim you submit for benefits whileyour coverage is suspended may be denied and may have to be resubmitted once your coverage is reinstated.

If you fail to make a monthly payment before the end of the grace period for that month, you will lose all rights to COBRAcoverage under the Plan.

More Information About Individuals Who May Be Qualified Beneficiaries

Children born to or placed for adoption with the covered employee during a period of COBRA coveragePage 40 of 66

A child born to, adopted by, or placed for adoption with a covered employee during a period of COBRA coverage isconsidered to be a qualified beneficiary provided that, if the covered employee is a qualified beneficiary, the coveredemployee has elected COBRA coverage for himself or herself. The child's COBRA coverage begins when the child isenrolled in the Plan, whether through special enrollment or open enrollment, and it lasts for as long as COBRA coverage lastsfor other family members of the employee. To be enrolled in the Plan, the child must satisfy the otherwise applicable Planeligibility requirements (for example, regarding age).

Alternate recipients under QMCSOs

A child of the covered employee who is receiving benefits under the Plan pursuant to a qualified medical child support order(QMCSO) received by ARK TEX COUNCIL OF GOVERNM FBP during the covered employee's period of employment withARK TEX COUNCIL OF GOVERNM FBP is entitled to the same rights to elect COBRA as an eligible dependent child of thecovered employee.

NOTICE PROCEDURES ARK TEX COUNCIL OF GOVERNM FBP Welfare Benefits Plan (the Plan)

WARNING: If your notice is late or if you do not follow these notice procedures, you and all related qualified beneficiaries willlose the right to elect COBRA (or will lose the right to an extension of COBRA coverage, as applicable).

Notices Must Be Written and Submitted on Plan Forms

Any notice that you provide must be in writing and must be submitted on the Plan's required form (the Plan's required formsare described above in this SPD, and you may obtain copies from ARK TEX COUNCIL OF GOVERNM FBP without charge).Oral notice, including notice by telephone, is not acceptable. Electronic (including e-mailed or faxed) notices are notacceptable.

How, When, and Where to Send Notices

You must mail or hand-deliver your notice to:

Human Resources Manager

ARK TEX COUNCIL OF GOVERNM FBPPO BOX 5307TEXARKANA TX 75505However, if a different address for notices to the Plan appears in the Plan's most recent summary plan description, you mustmail or hand-deliver your notice to that address (if you do not have a copy of the Plan's most recent summary plandescription, you may request one from ARK TEX COUNCIL OF GOVERNM FBP).

If mailed, your notice must be postmarked no later than the last day of the applicable notice period. If hand-delivered, yournotice must be received by the individual at the address specified above no later than the last day of the applicable noticeperiod. (The applicable notice periods are described in the paragraphs above entitled "You must notify the plan administratorof certain qualifying events by this deadline," "You must notify ARK TEX COUNCIL OF GOVERNM FBP of a qualifiedbeneficiary's disability by this deadline", and "You must notify ARK TEX COUNCIL OF GOVERNM FBP of a secondqualifying event by this deadline.")

Information Required for All Notices

Any notice you provide must include (1) the name of the Plan (ARK TEX COUNCIL OF GOVERNM FBP Welfare BenefitsPlan); (2) the name and address of the employee who is (or was) covered under the Plan; (3) the name(s) and address(es) ofall qualified beneficiary(ies) who lost coverage as a result of the qualifying event; (4) the qualifying event and the date ithappened; and (5) the certification, signature, name, address, and telephone number of the person providing the notice.

Additional Information Required for Notice of Qualifying Event

If the qualifying event is a divorce or legal separation, your notice must include a copy of the decree of divorce or legalseparation. If your coverage is reduced or eliminated and later a divorce or legal separation occurs, and if you are notifyingARK TEX COUNCIL OF GOVERNM FBP that your Plan coverage was reduced or eliminated in anticipation of the divorce orlegal separation, your notice must include evidence satisfactory to ARK TEX COUNCIL OF GOVERNM FBP that yourcoverage was reduced or eliminated in anticipation of the divorce or legal separation.

Additional Information Required for Notice of Disability

Any notice of disability that you provide must include (1) the name and address of the disabled qualified beneficiary; (2) thedate that the qualified beneficiary became disabled; (3) the names and addresses of all qualified beneficiaries who are stillreceiving COBRA coverage; (4) the date that the Social Security Administration made its determination; (5) a copy of theSocial Security Administration's determination; and (6) a statement whether the Social Security Administration has

Page 41 of 66

subsequently determined that the disabled qualified beneficiary is no longer disabled.

Additional Information Required for Notice of Second Qualifying Event

Any notice of a second qualifying event that you provide must include (1) the names and addresses of all qualifiedbeneficiaries who are still receiving COBRA coverage; (2) the second qualifying event and the date that it happened; and (3)if the second qualifying event is a divorce or legal separation, a copy of the decree of divorce or legal separation.

Who May Provide Notices

The covered employee, a qualified beneficiary who lost coverage due to the qualifying event described in the notice, or arepresentative acting on behalf of either may provide notices. A notice provided by any of these individuals will satisfy anyresponsibility to provide notice on behalf of all qualified beneficiaries who lost coverage due to the qualifying event describedin the notice.

THIS CONCLUDES THE SUMMARY OF YOUR CONTINUATION COVERAGE RIGHTS UNDER COBRA. PLEASECONTACT THE HUMAN RESOURCES OFFICE (OR THE EQUIVALENT THEREOF) OF ARK TEX COUNCIL OFGOVERNM FBP IF YOU HAVE ANY QUESTIONS OR NEED MORE INFORMATION.

Page 42 of 66

ARK TEX COUNCIL OF GOVERNM FBP Cafeteria Plan Summary PlanDescription Addendum with Regard to Health Savings Accounts

HSA Q-1. What are "HSA Benefits"?

As described in HSA Q-2, an HSA permits Employees to make pre-tax contributions to an HSA established and maintainedoutside the Plan with the Employee's HSA trustee/custodian. For purposes of this Cafeteria Plan, HSA Benefits consist solelyof the ability to make such pre-tax contributions under this Cafeteria Plan.

If you elect HSA Benefits, then you will be able to provide a source of pre-tax contributions by entering into a SalaryReduction Agreement with your Employer. Because the share of the contributions that you pay will be with pre-tax funds, youmay save both federal income taxes and FICA taxes.

To participate in the HSA Benefits, you must be an "HSA-Eligible Individual." This means that you are eligible to contribute toan HSA under the requirements of Code § 223 and that you have elected qualifying High Deductible Health Plan coverageoffered by the Employer and have not elected any disqualifying non- High Deductible Health Plan coverage offered by theEmployer. ("High Deductible Health Plan" means the high deductible health plan offered by your Employer that is intended toqualify as a high deductible health plan under Code § 223(c)(2), as described in materials that will be provided separately toyou by the Employer.) If you elect HSA Benefits, you will be required to certify that you meet all of the requirements underCode § 223 to be eligible to contribute to an HSA. These requirements include such things as not having any disqualifyingcoverage and you should be aware that coverage under a Spouse's plan could make you ineligible to contribute to an HSA.

In order to elect HSA Benefits under the Plan, you must establish and maintain an HSA outside of the Plan with an HSAtrustee/custodian and you must provide sufficient identifying information about your HSA to facilitate the forwarding of yourpre-tax Salary Reductions through the Employer's payroll system to your designated HSA trustee/custodian.

HSA Q-2. What is my "HSA"?

The HSA is not an employer-sponsored employee benefit plan it is an individual trust or custodial account that you open withan HSA trustee/custodian to be used primarily for reimbursement of "eligible medical expenses" as set forth in Code § 223.Your HSA is administered by your HSA trustee/custodian. Consequently, an HSA trustee/custodian, not the Employer, willestablish and maintain your HSA. Your Employer's role is limited to allowing you to contribute to your HSA on a pre-taxSalary-Reduction basis. The HSA trustee/custodian will be chosen by you, as the Participant, and not by the Employer. YourEmployer may, however, limit the number of HSA providers to whom it will forward pretax Salary Reductions, a list of whomwill be provided upon request. Any such list of HSA trustees/custodians, however, shall be maintained for administrativesimplification and shall not be an endorsement of any particular HSA trustee/custodian. Your Employer has no authority orcontrol over the funds deposited in your HSA.

The Plan Administrator will maintain records to keep track of HSA contributions that you make via pre-tax Salary Reductions,but it will not create a separate fund or otherwise segregate assets for this purpose.

HSA Q-3. What are the maximum HSA Benefits that I may elect under the Cafeteria Plan?

Your annual contribution for HSA Benefits is equal to the annual benefit amount that you elect (for example, if a $2,000annual benefit amount is elected for 2010, then the annual contribution amount is also $2,000). The amount you elect mustnot exceed the statutory maximum amount for HSA contributions applicable to your High Deductible Health Plan coverageoption (i.e., single or family) for the calendar year in which the contribution is made. (Note: The statutory limits for 2018 are$3,450 for single and $6,900 for family. The 2019 limits have been updated to $3,500 for single and $7,000 for family and the2020 limits are $3,550 for single and $7,100 for family.) An additional catch-up contribution of up to $1,000 may be made ifyou are age 55 or older.

In addition, the maximum annual contribution shall be: (a) reduced by any matching (or other) Employer contribution made onyour behalf (there are currently no such Employer contributions (other than pre-tax Salary Reductions) made under the Plan);and (b) pro-rated for the number of months in which you are an HSA-Eligible Individual.

Note that if you are an HSA-Eligible Individual for only part of the year but you meet all of the requirements under Code § 223to be eligible to contribute to an HSA on December 1, you may be able to contribute up to the full statutory maximum amountfor HSA contributions applicable to your coverage option (i.e., single or family). However, any contributions in excess of yourannual contribution under the Plan for HSA benefits (as described above), but not in excess of the applicable full statutorymaximum amount, must be made outside the Plan. In addition, if you do not remain eligible to contribute to an HSA under therequirements of Code § 223 during the following year, the portion of HSA contributions attributable to months that you werenot actually eligible to contribute to an HSA will be includible in your gross income and subject to a 10% penalty (exceptionsapply in the event of death or disability).

HSA Q-4. How are my HSA Benefits paid for under the Cafeteria Plan?Page 43 of 66

When you complete the Salary Reduction Agreement, you specify the amount of HSA Benefits that you wish to pay for withyour salary reduction. From then on, you make a contribution for such coverage by having that portion deducted from eachpaycheck on a pre-tax basis (generally an equal portion from each paycheck or an amount otherwise agreed to or as deemedappropriate by the Plan Administrator).

For example, suppose that you have elected to contribute up to $2,000 per year for HSA Benefits and that you have chosenno other benefits under the Cafeteria Plan. If you pay all of your contributions, then our records would reflect that you havecontributed a total of $2,000 during the Plan Year. If you are paid biweekly, then our records would reflect that you have paid$76.92 ($2,000 divided by 26) each pay period in contributions for the HSA Benefits that you have elected. Such contributionswill be forwarded to the HSA trustee/custodian (or its designee) within a reasonable time after being withheld.

The Employer makes no contribution to your HSA and your Employer has no authority or control over the funds deposited inyour HSA.

HSA Q-5. Will I be taxed on the HSA Benefits that I receive?

You may save both federal income taxes and FICA taxes by participating in the Cafeteria Plan. However, very different rulesapply with respect to taxability of HSA Benefits than for other Benefits offered under this Plan. For more information regardingthe tax ramifications of participating in an HSA as well as the terms and conditions of your HSA you may want to refer to thecommunications materials provided by your HSA trustee/custodian as well as IRS Publication 969 ("Health Savings Accountsand Other Tax-Favored Health Plans").

The Employer cannot guarantee that specific tax consequences will flow from your participation in the Cafeteria Plan.Ultimately, it is your responsibility to determine the tax treatment of HSA Benefits. Remember that the Plan Administrator isnot providing legal advice. If you need an answer upon which you can rely, you may wish to consult a tax advisor.

HSA Q-6. Who can contribute to an HSA under the Cafeteria Plan?

Only Employees who are HSA-Eligible Individuals can participate in the HSA Benefits. An HSA-Eligible Individual means anindividual who meets the eligibility requirements of Code § 223 and who has elected qualifying High Deductible Health Plancoverage offered by the Employer and who has not elected any disqualifying non-High Deductible Health Plan coverage. Theterms of the High Deductible Health Plan that has been selected by your Employer will be further described in materials thatwill be provided separately to you by the Employer.

HSA Q-7. Can I change my HSA Contribution under the Cafeteria Plan?

Unlike the other benefits offered under the Cafeteria Plan, you may increase, decrease, or revoke your HSA contributionelection at any time during the plan year for any reason by submitting an election change form to the Plan Administrator (or toits designee). Your election change will be prospectively effective on the first day of the month following the month in whichyou properly submitted your election change. Your ability to make pre-tax contributions under this Plan to the HSA identifiedabove ends on the date that you cease to meet the eligibility requirements.

HSA Q-8. Where can I get more information on my HSA and its related tax consequences?

For details regarding your rights and responsibilities with respect to your HSA (including information regarding the terms ofeligibility, what constitutes a qualifying High Deductible Health Plan, contributions to the HSA, and distributions from theHSA), please refer to your HSA trust or custodial agreement and other documentation associated with your HSA andprovided to you by your HSA trustee/custodian. You may also want to review IRS Publication 969 ("Health Savings Accountsand Other Tax-Favored Health Plans").

Page 44 of 66


RESOLUTION OF THE ARK-TEX COUNCIL OF GOVERNMENTS (ATCOG) FOR REVIEW AND ADOPTION OF THE ATCOG FLEXIBLE BENEFITS PLAN (FBP) CAFETERIA PLAN FOR FY 2021.

WHEREAS, the Ark-Tex Council of Governments (ATCOG) is a Regional Planning Commission established pursuant to the authority granted by Article 1011m, Revised Civil Statutes of Texas, and Arkansas Interlocal Cooperation Act 430; and

WHEREAS, ATCOG wishes to adopt the form of Cafeteria Plan, as authorized under Section 125 of the Internal Revenue Code of 1986, such Plan presented to the Board of Directors this date; and

WHEREAS, the Plan Year shall be for a period beginning October 1, 2020, and ending September 30, 2021; and

WHEREAS, ATCOG, the Employer, shall submit to the Plan amounts collected from participating employees sufficient to meet their obligation under the Cafeteria Plan, in accordance with the terms of the Plan Document, and shall notify the Plan Administrator to which periods said contributions shall be applied; and

WHEREAS, ATCOG, the Employer, shall notify employees immediately of the adoption of the Cafeteria Plan by making available for review to each employee the Summary Plan Description, such form presented and approved at this meeting.


Section 1 - That the Board of Directors approves the Ark-Tex Council of Governments FBP Cafeteria Plan.

Section 2 - That Exhibits A and B attached hereto are true copies of the Plan Document and Summary Plan Description for Ark-Tex Council of Governments FBP’s Flexible Benefits Plan.

Section 3 - That this Plan shall be made available for review by all employees of Ark-Tex Council of Governments upon its approval.




ATTEST:

______________________________

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ITEM 16:

Review and consider approval of the revisions to the Area Agency on Aging Regional Advisory Council by-laws.

BACKGROUND:

The Area Agency on Aging is seeking approval by the Ark-Tex Council of Governments’ (ATCOG) Board for approval to revisions made to the by-laws by the Aging Regional Advisory Council. A committee met to discuss possible changes to the by-laws. The proposed changes were presented to the Council by The Honorable L.D. Williamson.

DISCUSSION:

The by-laws are attached and the changes are in blue.

1. State agency names have changed, and they were updated.2. Any Texas Silver-Haired Legislator representing the Ark-Tex region will serve as an

ex-officio member of the Council.3. The wording for the appointment of new members was revised to reflect current

procedures.4. The word elderly was changed to older adult throughout the document.5. Meeting dates and notifications specified in the document were revised.6. Officer election dates were revised from fourth quarter. The wording reads: prior to

the start of the fiscal year.7. A State Advisory Council is referenced in the by-laws and it no longer exists, therefore

Section 1 in Article IX was deleted.

A motion was made to accept the by-laws as revised by The Honorable Robert Newsom and seconded by Ruth Brown. The motion passed.

RECOMMENDATION:

Staff recommends approval of these changes to the by-laws.

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APPENDIX C

REGIONAL ADVISORY COUNCIL

OF THE

ARK-TEX COUNCIL OF GOVERNMENTS

AREA AGENCY ON AGING

REGIONAL ADVISORY COUNCIL

ARTICLE I - NAME OF ORGANIZATION

The name of this organization shall be the Ark-Tex Council of Governments (ATCOG)

Area Agency on Aging (AAA) Regional Advisory Council. ATCOG has been designated

by the Texas Department on Aging (TDoA) Texas Health and Human Services

Commission as the AAA for planning and services in Region V. Region V includes the

nine (9) counties of Bowie, Cass, Delta, Franklin, Hopkins, Lamar, Morris, Red River and

Titus.

ARTICLE II - AUTHORITY

The creation of the ATCOG AAA Regional Advisory Council was authorized by ATCOG

on November 7, 1974, under Section 903.66 of Public Law 93-29, as amended, as a

necessary component to enable ATCOG to initiate and conduct area wide aging

planning under the above cited act and according to the State Plan for Aging Programs

for the State of Texas.

ARTICLE III - PURPOSE

The purpose of the ATCOG-AAA Regional Advisory Council, shall be to fulfill the

mandate of the Older Americans Act of 1965, as amended, Section 903.66 (13), to

advise the ATCOG-AAA on all matters relating to the development and administration

of the area plan on aging and operations conducted thereunder.

ARTICLE IV - MEMBERSHIP

Section 1 - The Council shall consist of the following:

A. One (1) representative from each of the nine (9) counties in the Ark-Tex

region;

B. Two (2) elected officials;

C. One (1) representative from the general public;

D. One (1) representative from the private sector;

E. One (1) representative from a health care organization;

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F. One (1) representative from the Title III Service Providers;

G. One (1) representative from the Veterans Administration;

H. Two (2) representatives from social service agencies;

I. One (1) representative from a hospital;

J. Any Texas Silver-Haired Legislature member representing the Ark-Tex

region..

Section 2 - Representatives shall be appointed for a term of five (5) years or until

a replacement is found. Regional Advisory Council members are appointed to

the Council by the ATCOG Board of Directors, the County Judge, or Title III

Service Providers and/or Chambers of Commerce, subject to approval by the

ATCOG Board of Directors.

Section 3 - Representatives are expected to attend all meetings. Members who

cannot attend the meeting are expected to send a replacement with a written

proxy. Two (2) consecutive unexcused absences from meetings without a

written proxy shall be cause for removal from the Regional Advisory Council.

Unexcused absences shall be defined as those absences which do not carry

proxies or in which no notification has been given to the Area Agency on Aging

in advance of the absence.

Section 4 - Representatives shall act as liaisons between the Area Agency on

Aging staff, the general public, health care organizations, private sector, elected

officials, service providers, and the elderly older adults in disseminating

information and planning for the elderly within the ATCOG region.

Section 5 - Service Providers (those entities holding bonafide contracts with the

AAA) may appoint one voting representative to the Regional Advisory Council

with the approval of the ATCOG Board of Directors.

Section 6 - The Regional Advisory Council shall consist of more than fifty

percent (50%) persons age sixty (60) and older.

ARTICLE V - MEETINGS

Section 1 - The ATCOG Regional Advisory Council shall meet quarterly and at

such times as the Chairperson deems necessary. If a meeting is cancelled, the

meeting will be rescheduled as soon as possible.

Section 2 - The quarterly ATCOG Regional Advisory Council on Aging will meet

the second first Thursday in Mt. Pleasant, Texas, unless otherwise specified.

Notices thereof shall be mailed and emailed by the AAA to each member, the

county judges’ office for posting in the courthouse, and to the area news media

no fewer than five (5) days prior to a regular meeting.

Section 3 - Notice of any special meeting, in matters of urgent business, shall be

distributed at least seventy-two (72) hours prior to any special meeting.

Section 4 - All meetings of the Council or of special committees shall be open to

the public, and public notice of such meeting shall be given.

Page 48 of 66

Section 5 - A quorum at any Council meeting will be a minimum of at least five

(5) voting members in attendance. An act of the majority of the Council

members, in a meeting at which a quorum is present will be the act of the

Council, unless otherwise specified in the By-Laws.

Section 6 - The Manager of the Area Agency on Aging of the ATCOG and/or a

designated ATCOG staff person shall serve as an ex-officio member of all

committees; and said person, shall attend each Council and committee meeting.

Section 7 – The Texas Silver-Haired Legislators representing the Ark-Tex region

will serve as ex-officio members of the Council.

Section 78 - A voting member of the Council is one that is appointed/elected to

represent a county, an elected official, a general public representative, the

private sector representative, a health care organization representative, a Title III

Service provider representative, or a representative of the Veterans

Administration. A voting member or the chairperson may carry a written proxy

vote for an absent representative.

ARTICLE VI - OFFICERS

Section 1 - The officers of the Council shall be a Chairperson and a Vice-

Chairperson, both of whom shall be elected from the voting membership for the

Council. Officers shall serve terms for two (2) years, with election to occur

during the fourth quarter (August) prior to the start of the fiscal year meeting of

each year for office to begin at the commencement of each fiscal year.

Section 2 - The Chairperson shall preside at all meetings of the Council. The

Chairperson shall be an ex-officio member of all committees. The Chairperson

shall represent the Council in presentations to the ATCOG Board of Directors,

unless such responsibility is delegated by the Chairperson.

Section 3 - The Vice-Chairperson shall perform all duties of the Chairperson in

the case of the absence or disability of the former, and such other duties as may

arise, from time to time, when required or requested by the Council.

Section 4 - In case the Chairperson and the Vice-Chairperson are both absent or

unable to perform their duties, the Council shall appoint a Chairperson pro-

tempore.

Section 5 - The staff of the Area Agency on Aging, under the direction of the

Manager of the Area Agency on Aging, shall assist the officers of the Council in

any fashion desired. Specifically, the Manager of the Area Agency on Aging will

appoint a member of the staff to take and maintain the minutes of the Council

meetings, arrange for the mailing of minutes, agendas, and any other

information which is deemed pertinent.

ARTICLE VII- COMMITTEES

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Section 1 - Special committees may be appointed by the Chairperson with

approval of the Council. Special committees shall serve for special purposes to

comply with special needs under Article III.

Section 2 - Terms of membership on special committees shall be established to

achieve the purpose for which the committee was created.

Section 3 - Standing committees will be appointed by the Chairperson with

approval of the Council. Membership on standing committees shall be for one

year. Consecutive terms are permitted.

Section 4 - The method for calling committee meetings shall be the same as that

for Council meetings. Special/standing committees may be convened at the

discretion of the committee membership to discharge their responsibility.

Public notice shall be required, when applicable.

Section 5 - The special/standing committee chairperson shall be selected by the

chairperson of the Advisory Council.

ARTICLE VIII - AMENDMENTS

Amendment by the Regional Advisory Council. These By-Laws may be

amended by a vote of the Regional Advisory Council approving the amendment

at any meeting, provided that the proposed amendment has been submitted in

writing to each member of the Council at least five (5) days in advance of each

meeting and ratified by a majority vote of fifty-one percent (51%) of the Regional

Advisory Council members present and/or voting by proxy at any meeting.

ARTICLE IX - AMENDMENT TO BY-LAWS

Section 1 - The Regional Advisory Council shall appoint the member to the State

Citizens Advisory Council using the following criteria (as defined in 40 Texas

Administrative Code (TAC) Chapter 261, Citizen's Advisory Council on Aging

Policies and Procedures):

Three (3) members shall be nominated from each designated Area Agency on

Aging. These members shall also be a member of the local Area Agency on

Aging's Advisory Council and the nominee must be approved by the Regional

Advisory Council. Termination of Regional Advisory Council membership will

result in termination of membership on the State Advisory Council.

Section 2 Section 1 - Regional Advisory Council members who are Title III

subcontractors shall not vote on agenda items that would be considered conflict

of interest. Advisory Council members who have a conflict of interest on any

agenda item of a meeting recorded in the minutes of the meeting stand as an

official record of the abstention. A conflict of interest would be indicated when

an individual is:

Page 50 of 66

A. employed by, cohabitates with, or the spouse of an employee or council

member, or participates in the management of a business entity, agency

or other organization regulated by or receiving funds from Title III

program;

B. uses or receives a substantial amount of tangible goods, services, or

funds from program authorized by the Older Americans Act of 1965, as

amended.

Page 51 of 66


ITEM 17:

Review and consider approval, of the purchase of 30 Operator Safety Barriers for the TRAX Rural Transportation transit fleet.

BACKGROUND

In response to the COVID-19 pandemic, the Transportation Department has researched ways to increase Operator safety and ensure Operations continue uninterrupted. For our rural transit fleet, we have located a sole source of custom designed plexiglass shields. These shields will provide a sealed barrier to help prevent the spread of COVID-19 while increasing Operator protection from assault and theft.

DISCUSSION

The Operator Safety Barriers cost $96,000 for 30 kits and installation. TxDot has allowed the Transportation Department to amend our current Section 5311 – Rural Area Federal Formula Program grant to finance this purchase. TxDot is also providing $19,200 in Transportation Development Credits to cover the local match requirement for this purchase.

The ATCOG Procurement Policy states that all purchases of $50,000 and above require ATCOG Board approval.

RECOMMENDATION

In adherence to ATCOG Procurement Policy, staff requests approval of the Operator Safety Barrier purchase.

Page 52 of 66


RESOLUTION OF THE BOARD OF DIRECTORS OF ARK-TEX COUNCIL OF GOVERNMENTS APPROVING THE PURCHASE OF THIRTY OPERATOR SAFETY BARRIERS.

WHEREAS, the Ark-Tex Council of Governments (ATCOG) approved the ATCOG Procurement Policy and Procedure Manual on December 14, 2017; and

WHEREAS, ATCOG Procurement Policy and Procedure Manual states ATCOG Board approval is required for all purchases of $50,000 and above; and

WHEREAS, the Transportation Program needs to purchase 30 protective barriers for the purpose of Operator safety; and

WHEREAS, the funding for the purchase is available through Federal Section 5311 – Rural Area Federal Formula Program grant

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ARK-TEX COUNCIL OF GOVERNMENTS:

Section 1 That the Board approves the purchase of thirty Operator safety barriers.

Section 2 That the Executive Director, Chris Brown, has full signature authority to act on behalf of the ATCOG Board relating to the aforementioned purchase.

Section 3 That this resolution is approved by majority vote in accordance with the bylaws of Ark-Tex Council of Governments and applicable law, and shall be in effect immediately upon its adoption.

SIGNED AND APPROVED THIS 24th DAY OF SEPTEMBER 2020

____________________________________ L. D. Williamson, PresidentArk-Tex Council of Governments

ATTEST:

__________________________________

Page 53 of 66

BRIEFING PAPER

ITEM 18:

Review and consider approval of a resolution selecting Pattillo, Brown & Hill, LLP to provide auditing services to begin October 1, 2020.

BACKGROUND:

On August 3, 2020, Ark-Tex Council of Governments (ATCOG) issued a Request for Proposal (RFP) for auditing services. This RFP was issued because the terms of the agreements with the current auditing service provider will lapse on September 30, 2020.

DISCUSSION:

Our agency received three proposals in response to our RFP by the deadline of August 28, 2020, which were Whitley Penn, LL; Pattillo, Brown & Hill, LLP; and Carr, Riggs & Ingram, LLC. Three staff members scored the proposals based on certain criteria, with all firms meeting the criteria and being eligible for selection.

Pattillo, Brown, & Hill’s proposal was selected for recommendation to the Board based on the overall cost effectiveness and relevant experience with similar agencies. The auditing services will begin October 1, 2020, and extend through September 30, 2021, with four possible one-year extensions, if approved by ATCOG Board of Directors.

RECOMMENDATION:

Staff recommend approval of a resolution selecting Pattillo, Brown & Hill to provide auditing services to begin October 1, 2020.

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RESOLUTION OF THE ARK-TEX COUNCIL OF GOVERNMENTS BOARD OF DIRECTORS APPROVING THE SELECTION OF PATTILLO, BROWN, & HILL TO PROVIDE AUDITING SERVICES TO BEGIN OCTOBER 1, 2020.

WHEREAS, the Ark-Tex Council of Governments (ATCOG) issued a Request for Proposal (RFP) for banking services on August 3, 2020; and

WHEREAS, Pattillo, Brown & Hill responded to our RFP by the deadline of August 28, 2020, with a proposal that met all the required criteria; and

WHEREAS, the proposal by Pattillo, Brown & Hill received the highest score of the proposals submitted and was selected for recommendation to the Board of Directors; and

WHEREAS, ATCOG feels that Pattillo, Brown & Hill will provide all the requested services to our satisfaction and will provide the most cost savings to our agency.

NOW, THEREFORE, BE IT RESOLVED BY THE ARK-TEX COUNCIL OF GOVERNMENTS:

Section 1 - That the Board approves selection of Pattillo, Brown & Hill as the provider of auditing services.

Section 2 - That the Board authorizes ATCOG to enter into a contract with Pattillo, Brown & Hill for auditing services to begin October 1, 2020.

Section 3 - That the Executive Director, Chris Brown, has full authority to act on behalf of the ATCOG Board in all matters pertaining to auditing services with Pattillo, Brown & Hill.

Section 4 - That this resolution is approved by majority vote in accordance with the bylaws of Ark-Tex Council of Governments and applicable law, and shall be in effect immediately upon its adoption.

REVIEWED AND APPROVED THIS 24TH DAY OF SEPTEMBER, 2020.

____________________________________ L. D. Williamson, PresidentArk-Tex Council of Governments

ATTEST:

__________________________________

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BRIEFING PAPER - ACTION ITEM

ITEM 19: Review and consider approval of the ATCOG Executive Director to enter into an interlocal agreement with the cities of Texarkana, TX, Texarkana, AR, and TexAmericas Center for the purpose of submitting an application to the EPA Brownfields Assessment Grant Program. BACKGROUND: The City of Texarkana, TX, reached out to the Ark-Tex Council of Governments, the City of Texarkana, AR and TexAmericas Center in order to form the Texarkana Brownfields Regional Environmental Coalition (TBREC) for the purpose of applying for hazardous substances and petroleum assessment funds from the EPA Brownfields Assessment Grant Program in the amount of $600,000. The City of Texarkana, Texas, will serve as the Lead Applicant on behalf of the coalition. DISCUSSION: The funds will be utilized within Bowie County, Texas and Miller County, Arkansas, to conduct environmental site assessments. The locations of the site assessments include, but are not limited to, the Perot Market Square, Union Station, the area surrounding Beverly Park, the former Boys and Girls Club, and the TexAmericas Center. The goal is to identify the conditions at these locations which may present threats to public health, to develop cleanup strategies to remediate any existing hazardous substances or petroleum contamination, and to encourage reuse of underutilized properties by promoting job growth and economic development in these areas. RECOMMENDATION Staff recommends Board approval of the ATCOG Executive Director entering into an interlocal agreement to form the TBREC to submit an application to the EPA Brownfields Assessment Grant Program.

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Interlocal Agreement

Texarkana Brownfields Regional Environmental Coalition

This Interlocal Agreement [hereafter referred to as “Agreement”] is entered into by and between the following participating entities: City of Texarkana, Bowie County, Texas; City of Texarkana, Miller County Arkansas; Ark-Tex Council of Governments, and the TexAmericas Center [all parties hereafter referred to as “Parties or Party”].

The City of Texarkana, Arkansas, Ark-Tex Council of Governments, and TexAmericas Center herein agree to contract with the City of Texarkana, Texas to administer this Interlocal Agreement. In consideration of the mutual promises and covenants contained in this Agreement, the Parties hereby agree as follows:

I. PURPOSE

The Parties are desirous of applying for and receiving funding from the Environmental Protection Agency (“EPA”) for Brownfield Assessment activities. The purpose of this Agreement is to define the roles and responsibilities of the Parties in the Texarkana Brownfields Regional Environmental Coalition (“the Coalition”) in order to carry out the activities outlined in the EPA application for the funding of Brownfield Assessment activities and subsequent grant agreement documentation.

II. SCOPE OF ACTIVITIES

Activities funded through the Agreement may include inventory preparation, site selection criteria development, assessments, planning (including cleanup planning) relating to brownfield sites, outreach materials and implementation, and other eligible activities. The City of Texarkana, Texas may retain consultants and contractors to undertake various activities funded through the Agreement.

III. RESPONSIBILITIES OF THE CITY OF TEXARKANA, TEXAS

The City of Texarkana, Texas shall serve as the Lead Applicant on behalf of the Coalition. In this capacity, the City of Texarkana, Texas shall have the following responsibilities:

1. To manage and administer this Agreement; 2. To prepare grant applications to EPA and other such agencies on behalf of the

Coalition; 3. To procure the consultants in compliance with Arkansas and Texas State Statutes; to

issue Request for Proposals or Request for Qualifications; to oversee receipt of the submitted proposals and selection and award of contracts; and to negotiate the

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terms of agreements in consultation with the City of Texarkana, Arkansas, Ark-Tex Council of Governments, and the TexAmericas Center;

4. To develop a site selection process based on agreed upon factors that will ensure that a minimum of 11 sites are assessed over the life of the Agreement with an anticipated 8 Phase I sites, 8 Phase II sites and 8 clean-up site plans by requesting funding from EPA, and to submit the same to EPA for prior approval to ensure eligibility;

5. Upon designation of the specific sites, to work with the Ark-Tex Council of Governments and/or TexAmericas Center, depending on exact location for sites outside the Texarkana, Arkansas or Texarkana, Texas City Limits, to finalize the scope of work for the consultant or contractor;

6. To ensure that other activities as negotiated in the work plan, such as community outreach and involvement, are implemented in accordance with a schedule agreed upon by the Parties;

7. To maintain compliance with the statutes, regulations, and terms and conditions of any grants received by the Coalition;

8. To provide for the general administration of grants received by the Coalition; 9. To maintain compliance by the City of Texarkana, Arkansas, Ark-Tex Council of

Governments, and the TexAmericas Center with the terms and conditions of this Agreement:

10. To provide timely information to the City of Texarkana, Arkansas, Ark-Tex Council of Governments, and the TexAmericas Center regarding the management of the Agreement and any changes that may be made to the Agreement over the period of performance; and

11. Any other responsibilities that, from time to time, the Parties shall determine to be necessary and proper to accomplish the purposes of the Agreement.

IV. RESPONSIBILITIES OF THE CITY OF TEXARKANA, ARKANSAS, ARK-TEX COUNCIL OF GOVERNMENTS, AND THE TEX AMERICAS CENTER The City of Texarkana, Arkansas, Ark-Tex Council of Governments, and the TexAmericas Center will each have the following responsibilities:

1. To appoint (2) members to represent their interest in the Coalition; 2. To provide timely information to the City of Texarkana, Texas as may be requested

in performing its duties under this Agreement; 3. To participate fully in the brownfields assessment process; 4. To obtain all required permits, easements, and /or access agreements as may be

necessary to undertake assessments at the selected site; provided however, if the City of Texarkana, Arkansas, Ark-Tex Council of Governments, nor the TexAmericas

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Center has the capacity to perform these activities, the City of Texarkana, Texas may assist in securing necessary site access agreements and permits;

5. To comply with all funding requirements set forth in any grant agreements that may be entered into by the City of Texarkana or the Coalition, including an accounting of expenditures of grant funds made by each City of Texarkana, Arkansas, Ark-Tex Council of Governments, and the TexAmericas Center; and

6. To comply with any other requests that may be made by the Lead Applicant from time to time in performing its duties under this Agreement.

V. FUNDING

1. The City of Texarkana, Texas agrees that any compensation for professional services shall be paid as provided under the terms of any grants received by the Coalition.

2. Any commitment of non-grant funds must be approved pursuant to the procurement requirements of the governing bodies of the respective Parties.

3. The Parties understand and acknowledge that all funds used for payment according to this Agreement, if any, shall be derived solely from funds specifically appropriated for this Interlocal Agreement or projects relating thereto.

VI. NOTICES

Any notices required to be given under this Agreement shall be given to the Parties as follows:

For the City of Texarkana, Texas:

Shirley Jaster, City Manager 220 Texas Boulevard Texarkana, TX 75501 903-798-3930

Cc: David Orr, Assistant City Manager, [email protected] Daphnea Ryan, Grants Administration Manager, [email protected]

For the City of Texarkana, Arkansas:

Tyler Richards, Director, Department of Public Works 216 Walnut Street Texarkana, AR 71854 870-779-4975 [email protected]

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For the Ark-Tex Council of Governments:

Chris Brown 4808 Elizabeth Street Texarkana, TX 75503 903-832-8636

Cc: Paul Prange, Environmental Resources Coordinator, [email protected]

For the TexAmericas Center:

Scott Norton, Executive Director/CEO 107 Chapel Lane New Boston, TX 75570 903-223-9841 [email protected]

VII. EXECUTION IN COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one in the same instrument. This Agreement shall be executed and bound by the terms of the Texas Interlocal Agreement Statute, Chapter 791 of the Texas Government Code.

VIII. EFFECTIVE DATE

The Effective Date of this Agreement shall be the date the last Coalition representative executed the agreement and shall terminate September 30, 2024, or on the date the awarded EPA Assessment Grant expires.

IX. ASSIGNMENT

This Agreement may not be assigned unless by the written mutual consent of all Parties. X. SEVERABILITY

If any section, phrase, sentence or portion of this Agreement is, for any reason, held to be invalid by any court of competent jurisdiction, such portion shall be deemed as a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions hereof.

XI. SUCCESSORS

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This Agreement shall also be binding upon and the benefits of this Agreement shall inure to all successors of the Parties.

XII. WITHDRAWL OF PARTICIPATION

In the event that any of the Parties desire to withdraw its participation, the Party shall give a minimum of sixty (60) days prior written notice to the other Parties of its intention to discontinue its participation in the Coalition; provided, however, such action shall not relieve such Party from any obligations it may have incurred prior to the date of the notice, including any obligations arising from its receipt of grant funds.

This Agreement, and the rights and obligations of the parties, shall be construed and enforced in accordance with the laws of the State of Texas.

IN WITNESS WHEREOF the parties hereto have set their hands and seals on the date noted below.

APPROVED this _______day of ______________________, 2020

CITY OF TEXARKANA, TEXAS

By: ______________________________________ Shirley Jaster, City Manager

STATE OF TEXAS COUNTY OF BOWIE

THIS instrument was acknowledged before me on the ______ day of ______________________, 2020 by Shirley Jaster, City Manager, on behalf of the City of Texarkana, Texas.

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___________________________________ NOTARY PUBLIC, STATE OF TEXAS

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APPROVED this ______ day of ______________________, 2020

CITY OF TEXARKANA, ARKANSAS

By: _______________________________________ Tyler Richards, Public Works Director

By: _______________________________________ Dr. Kenneth Haskin, City Manager

STATE OF ARKANSAS

COUNTY OF MILLER

THIS instrument was acknowledged before me on the _______ day of ______________________, 2020 by Tyler Richards, Public Works Director and Dr. Kenneth Haskins, City Manager, on behalf of the City of Texarkana, Arkansas.

___________________________________ NOTARY PUBLIC, STATE OF ARKANSAS

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APPROVED this _______ day of ______________________, 2020

ARK-TEX COUNCIL OF GOVERNMENTS

By: __________________________________________ Chris Brown, Executive Director

STATE OF TEXAS

COUNTY OF BOWIE

THIS instrument was acknowledged before me on the _______ day of ______________________, 2020, by Paul Prange, Environmental Resources Coordinator and Chris Brown, Executive Director on behalf of the Ark-Tex Council of Governments.


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APPROVED this _______ day of ______________________, 2020

TEXAMERICAS CENTER

By: ___________________________________ Scott Norton, Executive Director/CEO

STATE OF TEXAS

COUNTY OF BOWIE

THIS instrument was acknowledged before me on the _______ day of ______________________, 2020 by Scott Norton, Executive Director, on behalf of the TexAmericas Center.


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RESOLUTION OF THE ARK-TEX COUNCIL OF GOVERNMENTS (ATCOG) APPROVING THE ATCOG EXECUTIVE DIRECTOR TO ENTER INTO AN INTERLOCAL AGREEMENT WITH THE CITIES OF TEXARKANA, TX, TEXARKANA, AR, AND TEXAMERICAS CENTER FOR THE PURPOSE OF SUBMITTING AN APPLICATION TO THE EPA BROWNFIELDS ASSESSMENT GRANT PROGRAM IN THE AMOUNT OF $600,000. WHEREAS, the aforementioned cities will enter into an interlocal agreement to form the Texarkana Brownfields Regional Environmental Coalition (TBREC); and WHEREAS, the City of Texarkana, TX, will serve as the lead applicant on behalf of the coalition; and, WHEREAS, the funds will used within Bowie County, TX, and Miller County, AR, to conduct environmental site assessments; and WHEREAS, the goal is to identify the conditions at the locations which may present threats to public health, to develop cleanup strategies to remediate any existing hazardous substances or petroleum contamination, and to encourage reuse of underutilized properties by promoting job growth and economic development in these areas. NOW, THEREFORE, BE IT RESOLVED BY THE ARK-TEX COUNCIL OF GOVERNMENTS: Section 1 - That the Board of Directors designates the Executive Director as the Authorized

Official, and he has been given the power to accept, reject, alter or terminate the interlocal agreement on behalf of the agency.

Section 2 - That the formation of the coalition is required by the EPA Brownfields Program in

order to become eligible to apply for EPA Brownfields Coalition Assessment Grant Funds through a competitive grant application process.

REVIEWED AND APPROVED THIS 24th DAY OF SEPTEMBER, 2020. ___________________________________ L. D. Williamson, President Ark-Tex Council of Governments ATTEST: __________________________________

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