NCC240062_(ARPA) DWI Letter of Intent to Fund_20240116

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ROY COOPER
Governor mac.
ELIZABETH S.BISER ` ...,x, '
Secretary *`$ a aN r
SHADI ESKAF NORTH CAROLINA
Director Environmental Quality
August 24, 2022
Mr. Delane Jackson, Town Manager
Town of River Bend
45 Shoreline Drive
River Bend,NC 28562
Subject: Letter of Intent to Fund
Town of River Bend
Wastewater Treatment Plant Enhancements
Project No.: SRP-W-ARP-0241
Dear Mr. Jackson:
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$9,108,500 from the following funding:
American Rescue Plan Act(ARPA)funding from the State Fiscal Recovery Fund
established in S.L. 2022-74. 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$9,108,500.
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.
CAROLINA
North12N.CarolinaSalisbury DepartStreetm1 ent1633 of
Mail EnvironServicemental QCenteruality
IRa I DleighivisionNort ofh Carolina Water Infrastructure
tIORTH � 5 , 633
Department o blWaft/ /""i 919.707.9160

Mr. Delane Jackson, 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. Delane Jackson, 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 Trupti Desai, PE, by phone at [phone]
or by email at [e-mail].
Sincerely,
2,5w,
Jon Risgaard, Chief
State Revolving Fund Section
CC: Gregory J. Churchill,PE, Rivers &Associates,Inc., Greenville
Ken Pohlig, PE
Mark Hubbard,PE(DWI,via email)
Trupti Desai, PE (via email)
ARPA(COM_LOIF)
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Clean Water State Revolving Fund
Priority Rating System Narrative
Town of River Bend
WWTP Enhancements
Category 1 — Project Purpose
1.0—Project will rehabilitate or replace infrastructure
The Town of River Bend's Wastewater Treatment Plant was originally constructed as a 35,000
gpd plant in 1978. It was expanded in 1982, 1985 and 1988 to increase treatment capacity. The
facility is currently permitted for 0.33 MGD under NPDES Permit Number NC NC0030406. The
facility was designed to treat raw wastewater to secondary levels, and includes static screen,
grit settling tank, 35,000 gallon surge tank and two concentric ring, activated sludge treatment
units. Chlorination and dechlorination feed systems are provided. The biological treatment
units are field erected steel-walled tanks on reinforced concrete foundations. Treatment Unit
#1 is the older of the two trains is approximately half the size as Treatment Unit #2. Each
treatment unit includes peripheral tanks for aeration, chlorine contact and aerobic digestion
located around a central clarifier. Secondary treatment standards are achieved primarily as a
function of BOD oxidation, assimilation and nitrification to reduce ammonia nitrogen (NH3-N),
and settling/wasting of TSS to meet the current NPDES discharge limit. Centrifugal blowers, air
piping and coarse bubble diffusers provide oxygen and mixing to the aeration tanks, digesters
and surge tank. Chlorination is accomplished via liquid sodium hypochlorite feed while
dechlorination is accomplished via injection of liquid sodium bisulfite at the gravity outfall line.
Setttled sludge is returned from each secondary clarifier to its respective aeration basin via air
lifts. In addition, sludge is wasted to each of the integral aerated digesters where it is
subsequently pumped to an in-ground rectangular steel tank for further digesting, thickening
and lime stabilization. Lewis Farms & Liquid Waste, Inc. of Currie, NC provides contract hauling
and disposal of the stabilized sludge to Class B permitted disposal sites.
The proposed project includes treatment modifications and enhancements, but does not
increase the treatment capacity. The modifications and enhancements are intended to provide
improved effluent quality, as well as increased service life. Where economically viable and
justifiable, based on economy of scale, the design for some treatment units was based on a
future capacity of 0.685 MGD average daily flow, in order to minimize redundant expenditures
in the future.
The existing treatment facility is a suspended growth, complete-mix, single-stage nitrification,
activated sludge plant capable of routinely meeting the secondary effluent limits contained in
the current NPDES discharge permit. The proposed plant enhancements will produce a tertiary
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treatment facility with nutrient removal capability designed to treat primary waste constituents
to the lower levels anticipated by future NPDES discharge permit as discussed further herein.
WWTP enhancements include a new headworks, new influent and effluent flow meters and
composite samplers, new complete package preliminary screen with grit removal, renovation of
the existing surge tank, installation of new surge dosing pumps, renovation to the existing
treatment units, continued use of the existing blowers, new alum feed system for phosphorous
removal, new filter feed pump station, new methanol feed system and denitrification filters for
nitrogen removal, continued use/relocation of the chlorine injection system, new chlorine
contact tank and reaeration basin, continued use/relocation of the dechlorination system,
connection and continued use of the existing outfall and diffuser, new aerobic digester, new
cellular SCADA monitoring system, and proper abandonment of the existing in-ground steel
digester tank.
Construction plans (CD File: A-Construction Plans.pdf) and specifications (CD File: B-
Specifications.pdf) for the project were completed in 2015. All required permits and an
Authorization to Construct (CD File: C-Permits.pdf, D-NPDES ATC.pdf) were obtained at that
time.
The project has not been constructed due to lack of funding. However, with sufficient funding,
the plans and specifications can be made current with minimal effort, and all required permits
and Authorization to Construct can be obtained in a reasonably short period of time.
1.C.1—Treatment units,pumps and/or pump stations to be rehabilitated or replaced are
greater than 20 years old.
As noted in Item 1.0 above, the existing treatment units and pumps are between 34—44 years
old. The 1988 WWTP Expansion Plans (CD File: E-Proposed 1988 WWTP Expansion) are
provided on the enclosed CD. The Project Budget included in the Application distinguishes the
construction cost for components that exceed 20 years of age from those that do not. The
following table summarizes costs for construction items that replace existing components that
exceed 20 years of age.
Construction Costs > 20 yrs < 20 yrs
Contract I —Clearing& Intermediate Site Grading:
1. Mobilization $0 $5,000
2. Clearing& Grubbing w/Offsite Disposal $0 $12,000
3. Removal of Aggregate, Debris, Spoil Piles $0 $11,250
4. Muck out Ditches w/ Offsite Disposal $0 $12,500
5. Undercut Excavation w/Offsite Disposal $0 $8,000
6. Offsite Select Borrow Material $0 $20,000
7. Offsite Borrow& Backfill for WWTP Structures $0 $80,000
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8. Unclassified Excavation w/Onsite Disposal $0 $4,800
9. Erosion Control $0 $12,000
10. Seeding and Mulching $0 $2,200
Contract II—WWTP Enhancements
11. Mobilization $130,500 $93,500
12. Demolition $18,000 $0
13. Sitework $0 $60,000
14. Yard Piping $0 $370,000
15. Influent Flow Meter&Vault $0 $27,000
16. Preliminary Treatment Unit $390,000 $0
17. Equalization Basin Renovations $140,000 $0
18. Treatment Unit#1 Rehabilitation $1,040,000 $0
19. Treatment Unit#2 Rehabilitation $1,025,000 $0
20. Alum Feed System $0 $107,000
21. Filter Feed Pump Station $0 $195,000
22. Methanol Feed System $0 $45,000
23. Tertiary Denitrification Filters $0 $1,730,000
24. Methanol Sample System $0 $12,000
25. Chlorine Feed System Modification $27,000 $0
26. Chlorine Contact Tank/Reaeration Basin $190,000 $0
27. De-chlorination Feed System Modifications $2,000 $0
28. Non-potable Water System $0 $40,000
29. Aerobic Digester $750,000 $0
30. Dual Positive Displacement Blowers/Piping $103,000 $0
31. Instrumentation and Controls $75,000 $0
32. Electrical Systems $478,700 $343,300
33. Water/Wastewater Sampling Lab Building/Site $80,000 $0
Contingency(10%of construction costs): $444,750 $319,000
Construction Subtotals: $4,893,950 $3,509,550
of Total Construction: 58.24% %41.76
Total Construction Cost: $8,403,500
Category 2— Project Benefits
2.D—Project addresses promulgated but not yet effective regulations
The Town of River Bend's WWTP serves 966 of the Town's homes and businesses. The
remaining 514 units are served by individual onsite septic tanks and nitrification fields. Those
units coupled with buildable vacant lots could effectively double the number of homes and
businesses served with public sewer service in the future.
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Many of the existing unsewered homes were built prior to the requirement for a nitrification
field repair area. The Town has encouraged the unsewered portion of the community to
voluntarily agree to connect to the public sewer system. At present, the unserved community
has not agreed to public service since their onsite systems are not experiencing widespread
failures, and there is resistance to the increased cost for public service.
In the future, it may become necessary for the unsewered community to connect to the public
sewer system and WWTP. Regardless, improvements to the WWTP are required to provide
continued future service due to the age and condition of the WWTP facilities. Flow projections
suggest that a future capacity increase may be warranted to handle the needs of the
unsewered community and buildout. The anticipated future capacity is 0.685 MGD.
Based on the requirements of the Neuse Nutrient Strategy's Wastewater Discharge
Requirements (CD File: F-Neuse Nutrient Discharge Requirements.pdf) and the Town's current
NPDES Permit(CD File: G-NPDES Permit),the Town is allotted a maximum Total Nitrogen (TN)
mass loading of 7,482 lb/yr. In addition,the Town will be required to meet a Total Phosphorous
(TP) concentration of 1.0 mg/L. At present capacity, the Town is only required to monitor and
report their TN effluent load and TP concentration, and the WWTP is routinely in compliance
with permit limitations. However,the Town elected while designing the 2015 WWTP
Enhancements Project to improve its treatment capability by incorporating process
modifications and equipment that will be required to meet the speculative effluent limits
including reduced BOD and TSS concentrations, maximum TN mass loading and required TP
concentration when a future capacity increase is required.
The major process and equipment changes incorporated into the proposed project include:
• Installation of a new influent flow meter and vault,
• Decommission the existing Static Screen and Grit Settling Tank,
• Installation of a new Preliminary Treatment Unit consisting of mechanical screening,
dewatering, conveying, washing, grit removal and grease removal,
• Refurbish existing Surge Tank to include manual screen, air diffusers and surge dosing
pumps, piping and controls,
• Refurbish and revamp existing Treatment Unit#1 to include 101,100 gallon Aeration
tank, new diffusers, new sludge metering boxes, 33,700 gallon integral Digester, new
diffusers, new supernatant withdrawal, new sludge transfer pump, 20,500 gallon
Clarifier with new alum feed, refurbished internal mechanical components, piping and
controls,
• Refurbish and revamp existing Treatment Unit#2 to include 221,700 gallon Aeration
tank, new diffusers, new sludge metering boxes, 30,900 gallon integral Digester, new
diffusers, new supernatant withdrawal, new sludge transfer pump, 68,900 gallon
Clarifier with new alum feed, refurbished internal mechanical components, piping and
controls,
• Decommission the existing chlorine contact tank,
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• Installation of new Filter Feed Pump Station,
• Installation of new Methanol Feed System with feed pumps, inline meter, methanol
injector and methanol drum storage containment area,
• Installation of new Effluent Denitrification Filter consisting of 4 filter cells, media ,
internals for gravity filtration and backwash, 5,100 gallon Mudwell with Mudwell
pumps, 6,00 gallon Clearwell with Backwash Pumps, Nitrate Sample Pump and Nitrate
Analyzer, Backwash Scour Blowers and controls,
• Installation of new Alum Storage/Transfer System consisting of alum solution tanks,
metering pumps, piping and controls,
• Installation of new Chlorine Injection System consisting of chlorine injector and vault
with piping and controls,
• Installation of new Chlorine Contact Chamber consisting of dual 1,967 cf serpentine
channels, 314 cf dechlorination chamber with dichlorination diffuser,
• Installation of new Reaeration Basin consisting of 1,232 cf chamber, new diffusers,
submersible Non-Potable Water Pump System, effluent flow meter and weir,
• Decommission existing buried steel Digester,
• Installation of new 220,300 gallon Aerobic Digester with diffusers,telescoping decant
system, side drain, piping and controls, and new 900 CFM blower.
2.1— Project improves treated water quality by adding or upgrading a unit process
The River Bend WWTP Enhancement Project includes numerous treated water quality
improvements by adding or upgrading unit processes. Please refer to discussion in Item 2.D
above for the specific treatment unit upgrades. The current effluent limits versus the expected
design performance parameters are summarized in the table below. Refer to the Design
Memorandum and Design Calculations(CD File: H-Design Calculations).
Parameter Current Limit (Monthly Avg.) Design (Monthly Avg.)
Permitted Flow (MGD) 0.33 0.33
BOD5 (mg/I) 30.0 5.0
TSS (mg/I) 30.0 5.0
NH3-N (mg/I) 6.7 0.3
Total Residual Chlorine (ug/l) 13 13
Enterococci (No./100 ml) 35 35
Dissolved Oxygen (mg/I) >5.0 >5.0
Temperature Monitor Monitor
pH 6.8—8.5 6.8—8.5
TKN (mg/I) Monitor 2.5
NO2 + NO3 (mg/I) Monitor 1.0
Total Nitrogen (mg/I) Monitor' 3.5
Total Nitrogen Load (Ib/yr) Monitor' 3,516
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Total Phosphorous (mg/I) Monitor 1.0
Total Mercury Monitor Monitor
1. In addition to the effluent limits listed above the NPDES Permit assigns the River Bend
WWTP a base Total Nitrogen allocation of 7,482 lb/yr with a transport factor of 100%.
At 0.33 MGD capacity this equates to an average daily concentration of 7.45 mg/L.
2.N.1— Project relocates infrastructure from inside 100-year floodplain to outside 500-year
floodplain
The River Bend Water/Wastewater Laboratory is located at Latitude 35°4'20.08"N, Longitude
77°8'48.60"W beside the pond just off of Linksiders Road. The Laboratory Building is located
along the edge of the 100-year floodplain as indicated on the attached Flood Insurance Rate
Map (CD File: I-Flood Insurance Rate Map.jpg).
The project proposes to construct a new building to house a new Water/Wastewater
Laboratory at Latitude 35°4'15.62"N, Longitude 77°9'26.51"W near the northwest termination
of Plantation Drive across the street from the 300,000 gallon elevated water storage tank. The
proposed location is well outside of the 500-year floodplain.
2.N.7— Project provides redundancy/resiliency for critical treatment system functions
including backup electrical power source
This project provides rehabilitation and enhancement of the existing River Bend WWTP without
expanding capacity. The design includes the following redundant/resilient treatment and
transmission measures (CD Files: A-Construction Plans.pdf and B-Specifications.pdf:
• The Filter Feed Pump Station includes redundant submersible pumps and variable
frequency drives (VFDs) to ensure that clarified effluent can be continuously transmitted
to the Effluent Denitrification Filters in the event that a single pump was to fail. The
redundant pump and VFD will allow the WWTP to operate at full capacity with a single
pump and/or VFD out of service without increasing WWTP capacity.
• The Effluent Denitrification Filters include four filter cells that allow any three filters to
operate at full capacity with any single filter out of service. The redundant fourth filter
cell will enable the plant to operate at full capacity with any single filter out of service
while not increasing plant capacity. The Denite Filters also include redundant backwash
pumps, redundant blowers, redundant mudwell pumps, and redundant motor starters
for each. The redundant backwash pumps, blowers and associated motor starters allow
the filters to be backwashed if a single pump, blower or starter are out of service
without increasing WWTP capacity. Similarly,the redundant mudwell pumps and
associated motor starters allow the dirty backwash water to be returned to the head of
the plant for further treatment/removal. The redundant mudwell pumps and starters
do not increase plant capacity.
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• The Methanol Feed System includes dual chemical feed pumps to ensure a continuous
supply of methanol to augment and enhance nitrogen removal via the Denite Filters
beyond that which can be achieved via the activated sludge process. The redundant
methanol feed pump will allow the WWTP to operate at full capacity with a single pump
out of service while not increasing WWTP capacity.
• The Alum Feed System includes dual chemical feed pumps to ensure a continuous
supply of alum to augment and enhance phosphorous removal in the Clarifiers beyond
that which can be achieved via the activated sludge process. The redundant alum feed
pump will allow the plant to operate at full capacity with a single pump out of services
without increasing the plant capacity.
• The Chlorine Contact Chamber includes dual serpentine channels to allow continuous
flow through a single channel in the event that repairs or maintenance is required on
the other chamber. The redundant channel will allow the WWTP to continue operations
if a channel is out of service while not increasing the plant capacity.
• The Aerobic Digester provides additional and redundant tankage for sludge digestion
and thickening to that provided by the existing digesters (2 small digesters internal to
Treatment Units#1 and#2 and 1 larger buried steel digester tank). The Aerobic
Digester will allow the plant to provide continuous waste solids handling operations
when the buried steel digester tank is decommissioned. The Aerobic Digester does not
increase the WWTP treatment capacity. The Aerobic Digester also include dual positive
displacement blowers and VFDs to supply air for digestion, mixing and thickening. The
blowers and associated VFDs allow continuous operation of the Aerobic Digester in the
event that the alternate blower or VFD is out of service. The blowers/VFDs allow the
WWTP to operate at full capacity with a single blower/VFD out of service while not
increasing WWTP capacity.
2.R—Primary purpose of the project is to achieve at least 20% reduction in energy use
By far, the most energy consuming asset for the River Bend WWTP is operation of the
centrifugal blowers that provide air to the two aeration basins within the circular concentric
ring treatment units to provide BOD oxidation and nitrification of wastewater to secondary
standards. Air is supplied to the diffusers by one of three existing centrifugal blowers. Two of
the blowers are rated at 40 HP with one rated at 50 HP. Currently, the Town operates any one
of the blowers at full constant speed continuously 24 hours/day and 7 days/week in order to
supply the required air. As a result, the Dissolved Oxygen (DO) concentration in the aeration
basins vary from 1.5 mg/I —4.0 mg/I although the desired target concentration is 2.0 mg/I.
The Town proposes to install Variable Frequency Drives (VFDs) on each blower, Dissolved
Oxygen Sensors in each aeration basin, and Control Logic to monitor and automatically regulate
the blower speed in order to maintain the target DO concentration and reduce the power
consumption.
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This improvement is estimated to result in a 27.25% reduction in energy usage. Calculations
reflecting the expected energy reduction are included as CD File: J - Energy Reduction Estimate.
In addition to the above, VFDs are also being provided for the proposed Filter Feed pumps.
Tertiary Denitrification Filter Backwash Pumps, and Aerobic Digester blowers to provide
superior process control and additional energy savings.
Category 3—System Management
3.A.2—Applicant has a current Capital Improvement Plan (CIP)that spans at least 10-years
and proposed project
The Town of River Bend's 10-year Capital Improvements Plan is enclosed on the attached CD
(CD File: K-10 Year CIP.pdf). The CIP was adopted on April 21, 2022 and spans ten years from
the date of adoption. Cost estimates are included for projects scheduled in the first five years
including the proposed project. A resolution is attached (CD File: L-CIP Resolution.pdf) which
documents the adoption of the current CIP in its entirety.
3.B—System Operating Ratio is greater than or equal to 1.00 based on current audit,or is less
than 1.00 and unit cost is greater than 2.5%
Operating Ratio: Sewer Fund Only
Total Operating Revenues $618,512
Total Operating Expenditures $456,622
Debt Principal $108,895
Interest $19,624
Capital Outlay $17,532
Operating Revenues
operating Ratio (Total Expenses+Debt Principal+Interest+Capital Outlay)
$618,512
Operatil7gRatio ($456,622+$108,895+$19,624+$17,532)
Operating Ratio 1.03
Category 4—Affordability
4.A.3—Less than 1,000 residential connections
The total number of residential sewer connections is 954. Refer to the Billing Report (CD File:
M-Sewer Billing Report).
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4.B.2—Greater than$107
Current Monthly Combined Utility Rates at 5,000 Usage (CD File: N-Rate Schedule):
Class 1 and 2—Residential Water Sewer
Rates
Residential Customer Base $15.24 $24.18
Charge per month
1 Usage per 1,000 gallons $4.22 I $9.30
Combined Utility Rate at 5,000 gallons/customer= [$15.24+ (5 x$4.22) +$24.18+ (5 x$9.30)]
= $107.02/month
4.C.1—3 out of 5 LGU indicators worse than state benchmark
The Town of River Bend has 3 out of 5 LGU indicators that are worse than the state benchmark.
Refer to Grant Eligibility and Affordability Calculator(CD File: 0-Affordability Calculator).
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