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HomeMy WebLinkAboutPR 24546: AMENDMENT NO. 3 TO REDUCE THE FY 2026 PUBLIC HEALTH PREPAREDNESS FUNDING BY 28 PERCENT City of city - �� )�►\ C� ort rtizu Tc.ru.c Date: September 18, 2025 To: Ron Burton, CPM, City Manager From: Judith A. Smith, RN, BSN, Director of Health Services 4 RE: PR#24546 Approval for Amendment No. 3 to reduce the FY 2026 Public Health Preparedness (PHEP) funding by 28 percent. Nature of the Request: The Department of State Health Services provides funding to local health departments so each facility can perform activities that plans and prepares for natural and man-made disasters. The original FY 2026 contract was approved on April 21, 2025 pursuant to Res. 24-182, and now the Department of State Health Services is amending the contract and reducing the grant by 28 percent. Staff Analysis, Considerations: This grant will cover 70 percent of the salary and fringe for one (1)epidemiologist who provides surveillance and case reporting for South Jefferson County. Recommendations: It is recommended that the City Council approve P.R. No. 24546, amending the FY 2026 contract by 28 percent. Budget Considerations: The total amount for the contract period is $178,032.00 with $74,525.00 allocated for FY 2026 and the cash match $7,453. This amount is budgeted in health grant accounts 101-23-061-5111-00-50-000. "REMEMBER WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" P.O.BOX 1089•PORTARTHUR, TX 77641-1089.409/983-8101 FAX 409/982-6743 PR No. 24546 09/17/2025-js /tnr RESOLUTION NO. A RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER AND THE DIRECTOR OF THE CITY OF PORT ARTHUR HEALTH DEPARTMENT TO EXECUTE AMENDMENT NO. 3 TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND THE TEXAS DEPARTMENT OF STATE HEALTH SERVICES FOR THE PUBLIC HEALTH EMERGENCY PREPAREDNESS PROGRAM; PROVIDING FOR FUNDING; AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS the contract between the City of Port Arthur and the Department of State Health Services provides financial assistance to the Port Arthur City Health Department to supplement the delivery of public health services, including responding to bioterrorism, outbreaks of infectious disease, and other public health threats and emergencies in accordance with an established set of public health preparedness capabilities; and, WHEREAS, the City has been a recipient of the Public Health Emergency Preparedness ("PHEP") grant since 2011 and continues to provide these critical services for South Jefferson County; and, WHEREAS, pursuant to Resolution No. 24-182, the City Council approved the original contract on April 23, 2024, and pursuant to Resolution No. 25-170, the City Council approved the FY 2026 contract amendment on April 21, 2025; and, WHEREAS, for the fiscal year 2026 funding appropriation, DSHS has since reduced the program's funding allocation by twenty-eight percent (28%), this grant appropriation shall cover a portion of the salary and fringe of one (1) epidemiologist responsible for surveillance and case reporting for South Jefferson County; and, WHEREAS, the current amendment reflects the budget reduction, for the fiscal year 2026 funding appropriation, resulting in an annual allocation of$74,525.00, with a required ten percent (10%) local match in the amount of$7,452.00, for FY 2026; and, WHEREAS, the total award for FY 2025 and FY 2026 combined is $178,032.00, with a total City match obligation of$17,804.00; and, WHEREAS, the contract period is from July 1, 2024, through June 30, 2029. However, the agreement remains subject to annual appropriations through June 30, 2029, as actual costs for future years cannot be determined in advance. PR No. 24546 09/17/2025-js/tnr NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. That the facts and opinions are true and correct. Section 2. The City Council hereby approves Amendment No. 3 to the contract agreement between the City of Port Arthur and the Texas Department of State Health Services for participation in the Public Health Emergency Preparedness Program. Section 3. The total amount of the grant agreement shall not exceed $178,032.00, with a ten percent (10%) local match in the amount of $17,804.00, including an allocation of $74,525.00 for FY 2026, with an effective funding period of July 1, 2025, through June 30, 2026. Section 4. The City Council hereby authorizes and directs the City Manager and the Director of the City's Health Department to execute Amendment No. 3 to the contract, in substantially the same form as attached hereto as Exhibit"A". Section 5. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of October 2025 A.D., at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following Vote: AYES: Mayor: Councilmembers: NOES: Mayor, Charlotte M. Moses ATTEST: Sherri Bellard, City Secretary PR No. 24546 09/17/2025-js /tnr APPROVED AS TO FORM: Roxann Pais Cotroneo, City Attorney AP D FO MINIST TI N: PAr cl- / . (.7/ 71Z Ron Burton, CPM City Manager —te'v qudJkll) litAiiil Judi A. Smith, RN, BSN Director of Health Services APPROVED AS TO AVAILABILITY OF FUNDS: iati Werlp\ Lynda Boswell, MA, ICMA-CM Finance Director EXHIBIT "A" Docusign Envelope ID:1F823AA9-CBD2-4E27-964F-DEB8955F77E3 DEPARTMENT OF STATE HEALTH SERVICES CONTRACT No.HHS001439500029 AMENDMENT No.3 The DEPARTMENT OF STATE HEALTH SERVICES ("System Agency" or "DSHS") and CITY OF PORT ARTHUR("Grantee"),who are collectively referred to as the"Parties,"to that certain Public Health Emergency Preparedness ("PHEP") grant agreement, effective July 1, 2024, and denominated DSHS Contract No. HHS001439500029 ("Grant Agreement" or "Contract"), as amended, now desire to further amend the Grant Agreement. WHEREAS, the Parties desire to decrease the Grant Agreement amount by 28% for the FY2026 extension period and revise the Budget and Statement of Work accordingly; and WHEREAS, the System Agency desires to revise the federal award information. Now,THEREFORE, the Parties amend and modify the Grant Agreement as follows: 1. SECTION V, BUDGET, of the Grant Agreement is deleted in its entirety and replaced with the following: V. BUDGET The total amount of this Grant Agreement will not exceed ONE HUNDRED NINETY-FIVE THOUSAND EIGHT HUNDRED THIRTY-SIX DOLLARS($195,836.00). This includes the System Agency share of ONE HUNDRED SEVENTY-EIGHT THOUSAND THIRTY-TWO DOLLARS ($178,032.00) and Grantee's required match amount of SEVENTEEN THOUSAND EIGHT HUNDRED FOUR DOLLARS($17,804.00). The total not-to-exceed amount includes the following: Total Federal Funds: $178,032.00 Total State Funds: $0.00 Funds will be allocated for each Project Fiscal Year("FY"),which means the period beginning July 1 and ending June 30 each year, under this Grant Agreement. All expenditures under the Grant Agreement must be within the identified FY,and in accordance with ATTACHMENT B.2, REVISED BUDGET(AUG.2025). 2. SECTION X,FEDERAL AWARD INFORMATION,of the Grant Agreement is deleted in its entirety and replaced with the following: GRANTEE'S UNIQUE ENTITY IDENTIFIER IS: EMVNEFYW2KN4 Federal Award Identification Number(FAIN): 5 NU9OTU000053-02-00 DSHS Contract No.HHS001439500029 Amendment No.3 Page 1 of 3 Docusign Envelope ID:1F823AA9-CBD2-4E27-964F-DEB8955F77E3 A. Assistance Listings Title, Number, and Dollar Amount: Centers for Disease Control and Prevention, Public Health Emergency Preparedness (PHEP) Cooperative Agreement, 93.069, $35,995,796.00 B. Federal Award Date: 06/11/2024 C. Federal Award Period: July 1,2024—June 30, 2029 D. Name of Federal Awarding Agency: Centers for Disease Control and Prevention E. Federal Award Project Description: Texas DSHS Public Health Emergency Preparedness (PHEP) Cooperative Agreement. F. Awarding Official Contact Information: Ms. Kimberly Champion Grants Management Specialist (404)498-4229 grf9@cdc.gov G. Total Amount of Federal Funds Awarded to System Agency: $35,995,796.00 H. Amount of Funds Awarded to Grantee: $74,525.00 I. Identification of Whether the Award is for Research and Development: No 3. The Grant Agreement is amended to add ATTACHMENT A.3,FY2026 STATEMENT OF WORK, which is attached to this Amendment and incorporated into the Grant Agreement for all purposes. 4. ATTACHMENT B.1, FY2026 BUDGET, of the Grant Agreement is deleted in its entirety and replaced with ATTACHMENT B.2, REVISED BUDGET (AUG. 2025), which is attached to this Amendment and incorporated into the Grant Agreement for all purposes. 5. This Amendment is effective upon execution by the last Party to sign below. 6. Except as amended and modified by this Amendment No. 3, all terms and conditions of the Grant Agreement, as amended, shall remain in full force and effect. 7. Any further revisions to the Grant Agreement shall be by written agreement of the Parties. 8. Each Party represents and warrants that the person executing this Amendment No. 3 on its behalf has full power and authority to enter into this Amendment. SIGNATURE PAGE FOLLOWS DSHS Contract No.HHS001439500029 Amendment No.3 Page 2 of 3 Docusign Envelope ID: 1F823AA9-CBD2-4E27-964F-DEB8955F77E3 SIGNATURE PAGE FOR AMENDMENT No.3 DEPARTMENT OF STATE HEALTH SERVICES CONTRACT No.HHS001439500029 DEPARTMENT OF STATE HEALTH SERVICES CITY OF PORT ARTHUR By: By: Name: Name: Title: Title: Date of Execution: Date of Execution: DSHS Contract No.HHS001439500029 Amendment No.3 Page 3 of 3 Docusign Envelope ID: 1F823AA9-CBD2-4E27-964F-DEB8955F77E3 PIZ ATTACHMENT A.3 017`5 FY2026 STATEMENT OF WORK GRANTEE RESPONSIBILITIES A. Grantee shall perform activities in support of the Public Health Emergency Preparedness ("PHEP") Cooperative Agreement between the Centers for Disease Control and Prevention ("CDC") and the Department of State Health Services ("System Agency")to advance public health emergency preparedness. B. Grantee shall perform the activities required under this Grant Agreement in the following cities,counties,or groups of counties(cumulatively, Grantee's"Jurisdiction"): Jefferson. C. Grantee shall provide System Agency with situational awareness data generated through interoperable networks of electronic data systems. D. Grantee shall coordinate with System Agency program staff to develop a preparedness activity plan for the Grantee's Jurisdiction.At minimum,the Grantee shall ensure the following public health emergency preparedness capabilities are all addressed in their workplan over by FY29: 1. Capability 1 — Community preparedness is the ability of communities to prepare for, withstand, and recover from public health incidents in both the short-term and long-term. 2. Capability 2—Community recovery is the ability of communities to identify critical assets, facilities, and other services within public health, emergency management, health care, human services,mental/behavioral health,and environmental health sectors that can guide and prioritize recovery operations. 3. Capability 3 — Emergency operations coordination is the ability to coordinate with emergency management and to direct and support an incident or event with public health or health care implications by establishing a standardized, scalable system of oversight, organization, and supervision that is consistent with jurisdictional standards and practices and the National Incident Management System("NIMS"). 4. Capability 4 — Emergency public information and warning is the ability to develop, coordinate, and disseminate information, alerts, warnings, and notifications to the public and incident management personnel. 5. Capability 5 —Fatality management is the ability to coordinate with partner organizations and agencies to provide fatality management services to ensure the proper recovery and preservation of remains;identification of the deceased;determination of cause and manner of death;release of remains to an authorized individual;and provision of mental/behavioral health assistance for the grieving. The role also may include supporting activities for the identification, collection, documentation, retrieval, and transportation of human remains, personal effects,and evidence to the examination location or incident morgue. 6. Capability 6 — Information sharing is the ability to conduct multijurisdictional and multidisciplinary exchange of health-related information and situational awareness data among federal, state, local, tribal, and territorial levels of government and the private sector.This capability includes the routine sharing of information,as well as the issuing of public health alerts to all levels of government and the private sector in preparation for, and in response to,events or incidents of public health significance. DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 1 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 7. Capability 7 — Mass care is the ability of public health agencies to coordinate with and support partner agencies to address, within a congregate location (excluding shelter-in- place locations), the public health, health care, mental/behavioral health, and human services needs of those impacted by an incident. This capability includes coordinating ongoing surveillance and public health assessments to ensure that health needs continue to be met as the incident evolves. 8. Capability 8 — Medical countermeasure dispensing and administration is the ability to provide medical countermeasures to targeted population(s)to prevent,mitigate,or treat the adverse health effects of a public health incident, according to public health guidelines. This capability focuses on dispensing and administering medical countermeasures, such as vaccines, antiviral drugs, antibiotics, and antitoxins. 9. Capability 9 — Medical materiel management and distribution is the ability to acquire, manage,transport, and track medical materiel during a public health incident or event and the ability to recover and account for unused medical materiel, such as pharmaceuticals, vaccines, gloves,masks,ventilators, or medical equipment after an incident. 10. Capability 10 — Medical surge is the ability to provide adequate medical evaluation and care during events that exceed the limits of the normal medical infrastructure of an affected community.It encompasses the ability of the health care system to endure a hazard impact, maintain or rapidly recover operations that were compromised,and support the delivery of medical care and associated public health services, including disease surveillance, epidemiological inquiry, laboratory diagnostic services, and environmental health assessments. 11. Capability 11 —Non-pharmaceutical interventions are actions that people and communities can take to help slow the spread of illness or reduce the adverse impact of public health emergencies. This capability focuses on communities, community partners, and stakeholders recommending and implementing non-pharmaceutical interventions in response to the needs of an incident, event, or threat. Non-pharmaceutical interventions may include isolation; quarantine; restrictions on movement and travel advisories or warnings; social distancing; external decontamination; hygiene; and precautionary protective behaviors. 12. Capability 12 — Public health laboratory testing is the ability to implement and perform methods to detect, characterize, and confirm public health threats. It also includes the ability to report timely data,provide investigative support, and use partnerships to address actual or potential exposure to threat agents in multiple matrices, including clinical specimens, and food, water, and other environmental samples. This capability supports passive and active surveillance when preparing for, responding to, and recovering from biological, chemical, and radiological (if a Radiological Laboratory Response Network is established)public health threats and emergencies. 13. Capability 13 —Public health surveillance and epidemiological investigation is the ability to create,maintain, support,and strengthen routine surveillance and detection systems and epidemiological investigation processes.It also includes the ability to expand these systems and processes in response to incidents of public health significance. 14. Capability 14—Responder safety and health is the ability to protect public health and other emergency responders during pre-deployment, deployment,and post-deployment. 15. Capability 15 — Volunteer management is the ability to coordinate with emergency management and partner agencies to identify, recruit, register, verify, train, and engage volunteers to support the jurisdictional public health agency's preparedness,response, and DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 2 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 recovery activities during pre-deployment,deployment,and post-deployment. E. Grantee shall coordinate with System Agency program staff to develop a preparedness activity plan for the Grantee's Jurisdiction. CDC released the Public Health Response Readiness Framework that defines excellence in response operations. The Grantee shall be knowledgeable of these items and ensure the items are addressed throughout the deliverables: 1. Prioritize a risk-based approach—to all-hazards planning that addresses evolving threats and supports medical countermeasure logistics. 2. Enhance partnerships—(federal and nongovernmental organizations)to effectively support community preparedness efforts. 3. Expand local support — to improve jurisdictional readiness to effectively manage public health emergencies. 4. Improve administrative and budget preparedness systems — to ensure timely access to resources for supporting jurisdictional responses. 5. Build workforce capacity — to meet jurisdictional surge management needs and support staff recruitment,retention,resilience, and mental health. 6. Modernize data collection and systems—to improve situational awareness and information sharing with healthcare systems and other partners. 7. Strengthen risk communications activities — to improve proficiency in disseminating critical public health information and warnings and address mis/disinformation. 8. Incorporate practices — to enhance preparedness and response support for communities experiencing differences in health status due to structural barriers. 9. Advance capacity and capability of public health laboratories—to characterize emerging public health threats through testing and surveillance. 10. Prioritize community recovery efforts —to support health department reconstitution and incorporate lessons learned from public health emergency responses. F. Grantee shall match funds awarded under this Grant Agreement with costs or third-party contributions that are not paid by the federal government under another award, except where authorized by federal statute to be used for cost-sharing or matching. The non-federal contributions ("match")may be provided directly or through donations from public or private entities and may be in cash or in-kind donations, fairly evaluated, including plant, equipment, or services. The costs that the Grantee incurs in fulfilling the matching or cost-sharing requirement are subject to the same requirements, including the cost principles, that apply to the use of federal funds, including prior approval requirements and other rules for allowable costs as described in 45 Code of Federal Regulations (CFR) 74.23 and 45 CFR 92.24, as amended. Grantee shall provide matching funds in the amount of ten percent(10%)of the DSHS Direct Costs and Indirect Costs amount as outlined in ATTACHMENT B.2,REVISED BUDGET(AUG. 2025). "Cash match" is defined as an expenditure of cash by the Grantee on allowable costs under this Grant Agreement that are borne by the Grantee. "In-kind match" is defined as the dollar value of non-cash contributions by a third party given in goods,commodities,or services that are used in activities that benefit this Grant Agreement's project, and that are contributed by non-federal third parties without charge to the Grantee. The criteria for a match must: DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 3 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 1. Be an allowable cost under the applicable federal cost principle; 2. Be necessary and reasonable for the efficient accomplishment of project or program objectives; 3. Be verifiable within the Grantee's (or subgrantee's)records; 4. Be documented, including methods and sources, in the approved budget (applies only to cost reimbursement contracts); 5. Not be included as contributions toward any other federally assisted project or program (match can count only once); 6. Not be paid by the federal government under another award, except where authorized by federal statute to be used for cost-sharing or match; 7. Conform to other provisions of governing circulars/statutes/regulations as applicable for the Grant Agreement; 8. Be adequately documented; 9. Follow procedures for generally accepted accounting practices as well as meet audit requirements; and 10. Value the in-kind contributions reported and be supported by documentation reflecting the use of goods and/or services during the Grant Agreement term. G. Grantees budgeting indirect costs shall provide one of the following Indirect Cost Letters (ICR), as applicable. Indirect Cost Rate Letter; Indirect Cost Rate Acknowledgement Letter—De Minimis(up to 15%); or Indirect Cost Rate Agreement Letter. System Agency will request a copy of Grantee's most recent ICR letter at the time of Grant Agreement Execution and during subsequent renewals.Grantee shall provide any revised ICR letters done outside of the annual renewal process.Changes to the Indirect Cost Rate allocation in the Grantee's budget, or to the Grantee's approved Indirect Cost Rate Letter,will require a Grant Agreement amendment. Grantee shall contact the Federal Funds Indirect Cost Rate Group Landing Page with questions related to the indirect cost rate process. Grantee may also email IndirectCostRateGroup cz hhs.texas.gov with additional questions. H. Grantee shall in the event of a public health emergency involving a portion of the state, mobilize and dispatch staff or equipment purchased with funds from previous PHEP cooperative agreements, and not currently performing critical duties in the Grantee's Jurisdiction, to the affected area of the state upon receipt of a written request from System Agency. I. Grantee shall,in the event of a local, state,or federal incident,emergency or disaster,have the option to request from System Agency the United States Department of Health and Human Services (HHS) empower Individual Data Set (hereinafter, the "CMS data") for PHEP services. To access CMS data, Grantee shall submit to System Agency a written request that describes how the CMS data will be used to perform emergency planning for identifying, and/or conducting outreach to at-risk Medicare beneficiaries to ensure they have the necessary DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 4 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 medical resources and assistance throughout and during recovery from the incident,emergency or disaster. System Agency reserves the right to request additional information from Grantee. System Agency will review Grantee's request and provide a written approval or denial. Grantee's access to and use of the CMS data and any derivative data is provided to allow Grantee to perform specified and System Agency-approved public health activities under the Grant Agreement. When accessing the CMS data or derivative data, Grantee shall: 1. Ensure Confidential Information is handled in compliance with the HHS Data Use Agreement and the Centers for Medicare and Medicaid Services Data Use Agreement and any associated DUA Addendum; 2. Employ appropriate administrative, technical, and physical safeguards to protect the confidentiality of the CMS data and/or derivative data. Such protections shall include,but not be limited to measures that prevent unauthorized use or access to or use of such data, logon protocols and passwords for electronic access to such data, encryption of such data at rest and in transit, permanent deletion of internet histories when using third party resources,and redaction of information when fully identifiable information is not required, and the use of sufficient overwriting to ensure permanent deletion of electronic copies of such data or the physical destruction of such data in accordance with terms of this section; 3. Only utilize CMS data and derivative data to perform public health activities and only for the purposes specifically requested and approved by System Agency and not for any other purpose; 4. Ensure CMS data or derivative data is not entered into any type of registry,unless approved in writing by System Agency; 5. Destroy all source data and derivative data within 30 calendar days from the date of disclosure. In the event the incident, emergency, or disaster extends past the 30 calendar days, Grantee may request a 30-day extension to continue the response and outreach by submitting a written request to System Agency with justification for the continued use of the data. Grantee shall submit written attestation to System Agency certifying that destruction of all data was completed; 6. Ensure Grantee staff who have access to CMS data or any derivative data complete HIPPA training prior to accessing any data set. Grantee shall produce evidence of completed training to System Agency upon request; 7. Ensure Grantee staff who have access to CMS data or any derivative data obtain role-based access to the CMS data or any derivative data; and 8. Attest that each staff member accessing the CMS data does not have a criminal background or disqualifying criminal history record information or is not otherwise prohibited from accessing the CMS data as set forth in state or federal law or rule, including CMS requirements. J. Grantee shall coordinate activities and response plans within Grantee's Jurisdiction with the state, regional, and other local jurisdictions, among local agencies, and with hospitals and major health care entities, jurisdictional Metropolitan Medical Response Systems, and Councils of Government. DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 5 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 K. Grantee shall inform System Agency in writing if Grantee will not continue performance under this Grant Agreement within thirty (30) calendar days of receipt of System Agency's notification of an amended standard(s) or guideline(s). In such event, System Agency may terminate this Grant Agreement immediately or within a reasonable period of time, as determined by System Agency. L. Grantee shall develop, implement, and maintain a timekeeping system for accurately documenting staff time and salary expenditures for all staff funded through this Grant Agreement, including partial full-time employees and temporary staff. M. Grantee shall complete and submit programmatic reports as directed by System Agency in a format specified by System Agency and as needed to satisfy information-sharing requirements set forth in Texas Government Code Sections 421.071 and 421.072(b and c), as amended. Grantee must provide System Agency other reports, including financial reports, that System Agency determines necessary to accomplish the objectives of this Grant Agreement and to monitor compliance. N. Grantee shall conduct all exercises and training in accordance with Homeland Security Exercise Evaluation Program ("HSEEP") guidance. Have plans, processes, and training in place to meet NIMS compliance requirements. O. Grantee shall, when using volunteers during the Grant Agreement term, designate a Texas Disaster Volunteer Registry ("TDVR") State Emergency System for the Advanced Registration of Volunteer Health Professionals ("ESAR-VHP") System Administrator, participate in required administrator trainings, and utilize the system to identify volunteers. P. Grantee shall coordinate all planning, training, and exercises performed under this Grant Agreement with other Local Health Entities, the Texas Division of Emergency Management ("TDEM"),or other points of contact at the discretion of System Agency,to ensure consistency and coordination of requirements at the local level and eliminate duplication of effort between the various domestic preparedness funding sources in the state. Q. Grantee shall coordinate all risk communication activities with the System Agency Communications Unit by using System Agency's core messages posted on the System Agency website and submitting copies of draft risk communication materials to System Agency for coordination prior to dissemination. R. Grantee shall work with the DSHS Public Health Region and their Regional Health Care Coalition to develop comprehensive preparedness strategies by participating in meetings, trainings, and exercises. S. Grantee shall comply with all state and System Agency guidance and standards, including the following: Texas Grant Management Standards, located at the following URL: https://comptroller.texas.gov/purchasing/grant-management/. DSHS Contract No.HHS001439500029 Attachment A3—FY2026 Statement of Work Page 6 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 T. Grantee shall comply with all applicable federal and state laws, rules, and regulations, as amended,including,but not limited to,the following: 1. Texas Government Code Chapter 418; 2. Public Law 116-22, Pandemic and All-Hazards Preparedness and Advancing Innovation Act("PAHPAI"); 3. Public Law 109-417 Pandemic and All-Hazards Preparedness Act("PAHPA"); 4. Texas Health and Safety Code Chapter 81; 5. Section 319 C-1 of the Public Health Service(PHS)Act(47 USC § 247d-3a), as amended; and 6. 2 CFR Part 200. U. Grantee shall comply with all requirements related to purchases made with grant funds and uses of grant funds under this Grant Agreement. The requirements regarding purchases made with grant funds and uses of grant funds under this Grant Agreement include the following: 1. Grantee may not use funds for research, clinical care, fundraising activities or lobbying, construction or major renovations,reimbursement of pre-award costs,to supplant existing state or federal funds for activities,payment or reimbursement of backfilling costs for staff, purchase of vehicles of any kind,uniforms,buildings or real property,or funding an award to another party or provider who is ineligible. 2. Grantee may not use funds made available under this Grant Agreement to promote or advocate the legalization or practice of prostitution or sex trafficking. Nothing in the preceding sentence shall be construed to preclude the provision to individuals of palliative care, treatment, or post-exposure pharmaceutical prophylaxis, and necessary pharmaceuticals and commodities, including test kits, condoms, and, when proven effective,microbicides. 3. Grantee must initiate the purchase of all equipment approved in writing by System Agency, as applicable.Failure to timely initiate the purchase of equipment may result in the loss of availability of funds for the purchase of equipment. Requests to purchase equipment must be submitted to the assigned System Agency Contract Representative. 4. At the expiration or termination of this Grant Agreement for any reason, title to any remaining equipment and supplies purchased with funds under this Grant Agreement reverts to System Agency. Title may be transferred to another party at the sole discretion of System Agency. System Agency may, at its option and to the extent allowed by law, transfer the reversionary interest to such property to Grantee. 5. Grantee shall not use System Agency funds to lease buildings or real property without prior written approval from System Agency.Further,Grantee shall not use System Agency funds for the purchase of buildings or real property under any circumstance. 6. System Agency reserves the right, where allowed by legal authority, to redirect funds in the event of financial shortfalls. 7. System Agency will monitor Grantee's expenditures on a monthly basis. If expenditures are below the amount projected in Grantee's total FY amount, Grantee's budget may be subject to a decrease for the remainder of the FY. V. Grantee shall comply with requirements related to the cost reimbursement budget under this Grant Agreement. The cost reimbursement budget requirements include the following: DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 7 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 1. Grantee's approved cost reimbursement budget must document all approved and allowable expenditures. 2. Grantee shall only utilize funding under this Grant Agreement for approved and allowable costs. If Grantee requests to utilize funds for an expense not documented in the approved cost reimbursement budget, Grantee shall notify the System Agency Contract Representative,in writing,and request approval prior to utilizing the funds.System Agency shall provide written notification whether the requested expense is approved or denied. 3. Grantee shall maintain an inventory of equipment, supplies defined as Controlled Assets, and real property. Submit an annual cumulative report of the equipment and other property on HHS System Agency Grantee's Property Inventory Report to FSOequipadshs.texas.sov, with a copy to the assigned System Agency Contract Representative by email not later than October 15 of each year. Controlled Assets include firearms, regardless of the acquisition cost, and the following assets with an acquisition cost of $500 or more, but less than $10,000: desktop and laptop computers (including notebooks, tablets and similar devices), non-portable printers and copiers, emergency management equipment, communication devices and systems, medical and laboratory equipment,and media equipment. Controlled Assets are considered Supplies. W. Grantee shall comply with the reporting requirements and due dates established in this ATTACHMENT A.3, FY2026 STATEMENT OF WORK, and SECTION VII, REPORTING REQUIREMENTS, of the Grant Agreement. Unless stated otherwise in this Grant Agreement, Grantee must submit the reports via Qualtrics, a web-based system, according to instructions provided by System Agency. Programmatic reports satisfy the information-sharing requirements set forth in Texas Government Code, Sections 421.071 and 421.072(b)and(c). The reporting requirements include the following: 1. Grantee must prepare an Initial Work Plan each FY and submit it to System Agency via Qualtrics, using a URL provided by System Agency. For FY2026, Grantee must submit the Initial Work Plan to System Agency by July 31, 2025. This requirement must be reviewed and approved by System Agency to receive credit. 2. Grantee must prepare and submit a Jurisdictional Risk Assessment (JRA) to System Agency via Qualtrics, using a URL provided by System Agency. For FY2026, Grantee must submit a Jurisdictional Risk Assessment to System Agency by June 15,2026. Must include disproportionately impacted populations or access and functional needs.Previously completed JRAs can be submitted if they are not more than 5 years old. The next JRA will be due within the next 5 years from the submitted JRA date. This requirement must be reviewed and approved by System Agency to receive credit. 3. Grantee must prepare and submit a self-assessment on Capacity Indicators each FY via Qualtrics. For FY2026, Grantee must submit the Capacity Indicators Form to System Agency by July 31,2025. System Agency will provide a template to Grantee, which will identify the information that Grantee must provide in its Capacity Indicators Form. This requirement must be reviewed and approved by System Agency to receive credit. 4. Grantee must prepare and submit a current Multi-Year Integrated Preparedness Plan ("MYIPP") each FY, which must include at least five (5) years of progressive exercise, planning and training,to System Agency via Qualtrics. For FY2026,Grantee must submit the MYIPP to System Agency by May 1,2026. The MYIPP must be based on the results DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 8 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 of the Grantee's training needs assessment and the evaluations of previous exercises and responses, including the After-Action Review/Improvement Plan. The MYIPP must include a description of: a) Summary of the MYIPP Workshop; b) The proposed location,month(s), and year(s)of future exercise(s); c) The type(s)of future exercise(s)that will take place; and d) The partnering entities. MYIPP must include one access and functional needs or underserved populations(FEMA Definition), training to support a ready responder workforce (WHF-B, AHA-G, LOC-B), and recovery operations (REC-A). This requirement must be reviewed and approved by System Agency to receive credit. 5. Grantee must implement an exercise program to include three (3) discussion-based exercises and one (1) Functional or Full-Scale Operational Exercise over the five (5)year Performance Period. This includes completing After Action Reports (AAR), Corrective Action and Improvement Plans. The exercises should utilize scenarios that meet your priority jurisdictional risks identified in the JRA. Submit the After-Action Review/Improvement Plan("AAR/IP")for each exercise no later than 120 days after the exercise or thirty (30) days following the contract expiration, via Qualtrics. This requirement must be reviewed and approved by System Agency to receive credit. 6. For FY2026, the Grantee must submit the Programmatic Mid-Year Performance Report to the System Agency by January 31, 2026, via Qualtrics. The System Agency will provide a template to the Grantee,which will identify the information that the Grantee must provide in its Programmatic Mid-Year Performance Report. This requirement must be reviewed and approved by System Agency to receive credit. 7. For FY2026, the Grantee must submit the Programmatic End-of-Year Performance Report to the System Agency by July 30, 2026. The System Agency will provide a template to the Grantee to identify the information that the Grantee must provide in its Programmatic End-of-Year Performance Report. This requirement must be reviewed and approved by System Agency to receive credit. 8. For FY2026,the Grantee located in DSHS Public Health Regions 7 and 8 must submit the Jurisdictional Evaluation Tool (JET) to the System Agency by June 30, 2026. The System Agency will provide a template to the Grantee to be completed using Qualtrics. This requirement must be reviewed and approved by System Agency to receive credit. If the Grantee is Project Public Health Ready(PPHR)accredited,they may submit supporting PPHR documentation in lieu of completing applicable sections of the JET survey, as determined by System Agency. 9. Grantees in DSHS Public Health Regions 1, 2/3, 4/5N, 6/5S, 7, 8, 9/10, and 11 must complete and submit the Capacity Indicators Survey in Qualtrics by July 31,2025.There will be an additional section pertaining to the JET. The System Agency will provide a template to the Grantee to be completed using Qualtrics. This requirement must be reviewed and approved by System Agency to receive credit. 10. Grantee must submit biannual Financial Status Reports (FSRs). Grantee's FSRs are due biannually.The first FSR is due on the last day of the month following the first FSR period. The second FSR is due on the last day of the month,thirty (30) days after the contract end date and following the second FSR period. The first FSR, for the period July 1, 2025, through December 31,2025,is due by January 31,2026. The second FSR, for the period January 1, 2026, through June 30, 2026, is due by July 30, 2026. Grantee shall DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 9 of 11 Docusign Envelope ID: 1F823AA9-CBD2-4E27-964F-DEB8955F77E3 electronically submit FSRs to invoices@dshs.texas.gov and fsrgrants@dshs.texas.gov, with a copy to the System Agency Contract Representative identified in SECTION VIII, CONTRACT REPRESENTATIVES, of this Grant Agreement. If the System Agency determines Grantee needs to submit FSR reports by mail or fax, Grantee must send the required information as follows: a. For submission by mail,use address below: Department of State Health Services Claims Processing Unit P.O. Box 149347, MC 1940 Austin, TX 78714-9347 b. For submission by fax,use the number below: (512)458-7442 11. Grantee must maintain an inventory of equipment,supplies defined as"Controlled Assets" (see definition in the form titled, "DSHS Contractor's Property Inventory Report (Form GC-11),"link below), and real property. Grantee shall submit an annual cumulative report of the above stated items on Form GC-11, located at the following URL: https://www.dshs.texas.gov/hiv-std-program/dshs-tb-hiv-std-section-thi si s/c o ntract- management-section-prevention. Grantee will submit the Form GC-11, via email, to FSOequipadshs.texas.gov, with a copy to the System Agency Contract Representative identified in SECTION VIII,CONTRACT REPRESENTATIVES, of this Grant Agreement, no later than October 15th of each calendar year. 12. Grantee shall provide System Agency with other reports, including financial reports, that System Agency determines necessary to accomplish the objectives of this Grant Agreement and to monitor compliance. 13. The Grantee must immediately notify the System Agency in writing if the Grantee is legally prohibited from providing any report required under this Grant Agreement. II. PERFORMANCE MEASURES A. System Agency will monitor the Grantee's performance of this Statement of Work requirements and compliance with the Grant Agreement's terms and conditions. B. Grantee must adhere to PREP reporting deadlines and the capability to receive,stage,store, distribute, and dispense materiel during a public health emergency. Failure to meet these requirements may result in the System Agency withholding a portion of the current Fiscal Year PREP award. C. Upon request by the System Agency,the Grantee shall reasonably revise any performance measure to the System Agency's satisfaction and with the requirements outlined in this Grant Agreement. III. INVOICE AND PAYMENT A. Grantee shall request monthly payments by the last business day of the month following DSHS Contract No.HHS001439500029 Attachment A.3-FY2026 Statement of Work Page 10 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 the month in which expenses were incurred and shall use the State of Texas Purchase Vouchers (Form B-13 and Form B-13A) located at https://www.dshs.texas.gov/contractor-forms Grantee's final invoice will be due thirty (30) calendar days following the expiration date of the Grant Agreement. The System Agency will issue reimbursement payments to the Grantee monthly for reported actual cash disbursements supported by adequate documentation. Invoice approval and payment is contingent upon receipt of adequate supporting documentation and submittal of acceptable supporting documentation by electronic mail to invoices@dshs.texas.gov and CMSInvoices@dshs.texas.gov, with a copy to the assigned System Agency Contract Representative identified in the Grant Agreement. At a minimum, every invoice should include: 1. Grantee name, address, email address, vendor identification number, and telephone number; 2. DSHS Contract or Purchase Order number; 3. Identification of service(s)provided; 4. The total invoice amount; and 5. Any additional supporting documentation that is required by this Statement of Work or as requested by System Agency. B. System Agency will pay Grantee monthly on a cost reimbursement basis and in accordance with ATTACHMENT B.2, REVISED BUDGET (AUG. 2025), of this Grant Agreement. System Agency will reimburse Grantee only for allowable and reported expenses incurred within the FY. C. System Agency reserves the right, where allowed by legal authority, to redirect funds in the event of financial shortfall. System Agency will monitor Grantee's expenditures on a biannual basis. If expenditures are below the amount projected in Grantee's total Grant Agreement amount, Grantee's budget may be subject to a decrease for the remainder of the Grant Agreement term. Vacant positions existing after ninety (90) days may result in a decrease in funds. Grantee must report position vacancies to their assigned Contract Manager each month until the position is filled. D. Grantee may request a one-time working capital advance not to exceed twelve percent (12%)of the total funds allotted per FY.All advances must be expended by the end of the FY.Advances not expended by the end of the Grant Agreement term must be refunded to the System Agency. System Agency may require the Grantee to repay all or part of advance funds at any time during the Grant Agreement term.However,if the advance has not been repaid before the last three(3)months of the Grant Agreement term,the Grantee must deduct at least one-third(1/3r1)of the remaining advance from each of the last three (3)months' reimbursement requests. If the advance is not repaid prior to the last three(3) months of the Grant Agreement term, System Agency will reduce the reimbursement request by one-third(1/3rd) of the remaining balance of the advance. DSHS Contract No.HHS001439500029 Attachment A.3—FY2026 Statement of Work Page 11 of 11 Docusign Envelope ID: 1 F823AA9-CBD2-4E27-964F-DEB8955F77E3 ATTACHMENT B.2 REVISED BUDGET (AUG.2025) DSHS FUNDING DSHS FUNDING TOTAL BUDGET CATEGORIES FOR FY2025(July FOR FY2026 DSHS 1,2024—June 30, (July 1,2025— FUNDING 2025) June 30,2026) Personnel $74,503.00 $48,300.00 $122,803.00 Fringe Benefits $29,004.00 $20,286.00 $49,290.00 Travel $0.00 $2,113.00 $2,113.00 Equipment $0.00 $0.00 $0.00 Supplies $0.00 $3,126.00 $3,126.00 Contractual $0.00 $0.00 $0.00 Other $0.00 $700.00 $700.00 Sum of DSHS Direct Costs $103,507.00 $74,525.00 $178,032.00 Indirect Costs $0.00 $0.00 $0.00 Sum of DSHS Direct Costs $103,507.00 $74,525.00 $178,032.00 and Indirect Costs Plus Required Match(Cash $10,351.00 $7,453.00 $17,804.00 or In-Kind) Total Contract Amount $113,858.00 $81,978.00 $195,836.00 FY is defined as the period of July 1 through June 30. I DSHS Contract No. HHS001439500029 Page 1 of 1 0 docusign Certificate Of Completion Envelope Id: 1F823AA9-CBD2-4E27-964F-DEB8955F77E3 Status:Sent Subject:Please DocuSign HHS001439500029 City of Port Arthur A3 CPS-PHEP Source Envelope: Document Pages: 15 Signatures:0 Envelope Originator: Certificate Pages:2 Initials:0 CMS Internal Routing Mailbox AutoNav:Enabled 11493 Sunset Hills Road Envelopeld Stamping:Enabled #100 Time Zone:(UTC-06:00)Central Time(US&Canada) Reston,VA 20190 CMS.InternalRouting@dshs.texas.gov IP Address: 167.137.1.17 Record Tracking Status:Original Holder:CMS Internal Routing Mailbox Location:DocuSign 9/11/2025 4:44:03 PM CMS.InternalRouting@dshs.texas.gov Signer Events Signature Timestamp Ron Burton Sent:9/11/2025 4:56:45 PM ron.burton@portarthurtx.gov City of Port Arthur Security Level:Email,Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign Lucia Kelley Lucia.Kelley@dshs.texas.gov Security Level:Email,Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign Patty Melchior Patty.Melchior@dshs.texas.gov Security Level:Email,Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign David Gruber David.Gruber@dshs.texas.gov Security Level:Email,Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Carbon Copy Events Status Timestamp Erika Flores COPIED Sent:9/11/2025 4:56:44 PM erika.flores@portarthurtx.gov Viewed:9/15/2025 1:37:38 PM Security Level:Email,Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign Judith A.Smith,BSN,RN COPIED Sent:9/11/2025 4:56:44 PM judith.smith@portarthurtx.gov L Viewed:9/15/2025 10:46:56 AM Director of Health Services City of Port Arthur Security Level:Email,Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign CMS Internal Routing Mailbox CMS.InternalRouting@dshs.texas.gov Security Level:Email,Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign Fred L.Waterman Fred.Waterman@dshs.texas.gov Security Level:Email,Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via Docusign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/11/2025 4:56:45 PM Payment Events Status Timestamps