NCC240696_(ARPA) DWI Letter of Intent to Fund_20240319

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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 [e-mail].
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 [e-mail].
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)