2022-001 NON-COMPLIANCE WITH WAGE RATE REQUIREMENTS Corrective Action Plan: In October 2020 the School District closed on and received funding for the 2020 Building and Site Bond project. The purpose of this bond issuance was for the renovation and updating of numerous schools throughout the district. Due to the COVID-19 pandemic, the price of materials increased dramatically and the on-going shutdowns in the business sector led to supply-chain issues. These issues resulted in an overall cost increase to the bond project. In response to the COVID-19 pandemic, the federal government released billions of dollars in federal funding to mitigate the negative impacts on the national economy and to reduce the spread of the virus. One of the federal programs initiated in response to the pandemic was the American Rescue Plan Act (ARP Act), which was enacted March 11, 2021. The ARP Act is the sole source for the Elementary and Secondary School Emergency Relief III (ESSER III) funding passed through to the District from the Michigan Department of Education. A window replacement project at the Middle School qualified as an allowable expenditure under ESSER III funding. Replacing non-functioning windows allowed for greater air flow within the classrooms, reducing the risk of spreading the COVID-19 virus. The decision to utilize ESSER III funding for a portion of the Middle School window replacement project was made after the contract was executed and as such the construction contract did not include the required prevailing wage language as required under the grant. The School District used a union contractor that did pay at and above the required wage rates; however, certified payrolls were not required to be provided and the subcontractor agreements were not required to have prevailing wage language while using bond funds. It is impossible for the School District to retroactively apply those requirements. Responsible Parties: ? Superintendent, Dan Skewis ? Business Manager, Geoff Lasich Anticipated Completion Date: Not applicable.