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HomeMy WebLinkAboutNCC240696_(ARPA) DWI Letter of Intent to Fund_20240319 :=-t,;c STATE a ,, .-moo ROY COOPER 1 a Governor ELIZABETH S.BISER + ter'' Secretary *f#f QuA,ADt_ - SHADI ESKAF NORTH CAROLINA Director Environmental Quality August 24, 2022 Mr. Kevin Baughn, Town Manager Town of Madison 120 North Market Street Madison,NC 27025 Subject: Letter of Intent to Fund Town of Madison Sanitary Sewer Rehab and Flood Protection Project Project No.: VUR-W-ARP-0078 Dear Mr. Baughn: The Division of Water Infrastructure (Division) has reviewed your application, and the State Water Infrastructure Authority has approved your project as eligible to receive a total funding amount of$4,871,000 from the following funding: American Rescue Plan Act (ARPA) funding from the State Fiscal Recovery Fund established in S.L. 2021-180. Projects funded from the State Fiscal Recovery Fund must meet applicable federal law and guidance for the ARPA funds. The ARPA Project Grant will be one hundred percent of eligible project costs up to a maximum of$4,871,000. Please note that this intent to fund is contingent on approval of the loan through the Local Government Commission and on meeting all of the following milestones: Milestone* Date Engineering Report Submittal December 1, 2022 Engineering Report Approval May 1, 2023 Bid and Design Package Submittal November 1, 2023 Bid and Design Package Approval March 1, 2024 Advertise Project, Receive Bids, Submit Bid July 1, 2024 Information, and Receive Authority To Award Execute Construction Contract(s) August 1, 2024 *Failure to meet any milestone may result in the forfeiture of funding for the proposed project. All costs incurred prior to March 3, 2021 are not eligible for ARPA funds and the Division will make no reimbursements of ARPA funds after December 31, 2026. D E Q' North Carolina Department of Environmental Quality I Division of Water Infrastructure NORTH CAROLINA OOO 512 N.Salisbury Street 1 1633 Mail Service Center I Raleigh,North Carolina 27699-1633 � 919.707.9160 Mr. Kevin Baughn, Town Manager August 24, 2022 Page 2 of 3 The first milestone is the submittal of an Engineering Report on December 1, 2022. The Engineering Report must be developed using the guidance found on our website (https://deq.nc.gov/about/divisions/water-infrastructure/i-have-funding/engineering- reportenvironmental-information). Failure to meet any milestone may result in the forfeiture of funding for the proposed project. The State Environmental Policy Act exempts projects funded by the State Reserve from state-mandated environmental review. Federal requirements may still apply. [NCGS 113A- 12(2)h.] Upon detailed review of the project during the funding process, it may be determined that portions of your project are not eligible for funding and the total funding amount may be reduced. Additionally, changes in the scope or priority points awarded—based on additional information that becomes apparent during project review—may also result in changes to the total funding amount and loan terms. Engineering Services Procurement All projects must comply with North Carolina General Statute 143-64.31, Article 3D Procurement of Architectural, Engineering, and Surveying Services. Projects cannot be exempted from qualification-based selection of these services under N.C.G.S. 143-64.32. Any services provided that were not selected in compliance with federal requirements will be ineligible for reimbursement. US Treasury Requirements Projects with an expected total cost of ten million dollars or more must meet US Treasury requirements for prevailing wage rates,project labor agreements, and related requirements. Recipients can either certify meeting the requirements or provide plans and reports as the SLFRF Compliance and Reporting Guidance (treasury.gov) specifies. Joint Legislative Committee on Local Government Notification Requirements In accordance with G.S. 120-157.2, local government units with projects that require debt to be issued greater than $1,000,000 must submit a letter to Committee Chairs, Committee Assistant, and the Fiscal Research Division of the General Assembly at least 45 days prior to presentation before the Local Government Commission. You are responsible for submitting that letter and providing a copy to the Division. Extended Term Loan Projects that qualify for a targeted interest rate and demonstrate in the Engineering Report a weighted average design life for the major components of the project greater than 20 years are eligible for an extended loan term up to the calculated weighted average design life, but not to exceed 30 years. Request an extended term on the Engineering Report Submittal Checklist (https://deq.nc.gov/about/divisions/water-infrastructure/i-have-funding/engineering- reportenvironmental-information) and provide the necessary calculation. Mr. Kevin Baughn, Town Manager August 24, 2022 Page 3 of 3 Upon receipt of your letter of intent to fund,please fill out the attached Federal ID & Unique Entity ID (UEI) form, attached and email it to Pam Whitley at pam.whitley@ncdenr.gov. We are offering a free permit assistance service to address any questions you have about potential permitting requirements, pitfalls, fees, and timelines. If interested,please complete our online form at https://deq.nc.gov/permits-rules/permit-assistance-and-guidance/permit- assistance-request-form and a regional environmental coordinator will contact you. When applying for a permit; attach a copy of this letter to your permit application. We find this helpful to identify ARPA projects to get your permit to you faster to assist with meeting the federal expenditure deadline of December 31, 2026. If you have any questions,please contact Steve Tsadwa,by phone at(919) 707-9172 or by email at steve.tsadwa@ncdenr.gov. Sincerely, e ?-7i. Jon Risgaard, Chief State Revolving Fund Section CC: Bill Lester, Jr., PE, LKC Engineering, PLLC, Aberdeen Ken Pohlig, PE Mark Hubbard, PE (DWI, via email) Steve Tsadwa(via email) ARPA (COM_LOIF)