20200619 Ver 1_Letter of Intent to Fund (LOIF)_20200508

Water Infrastructure
ENVIRONMENTAL QUALITY
March 1, 2018
Mr. James Michael Boaz, Town Manager
Town of Pilot Mountain
124 West Main Street
Box 1
Pilot Mountain, NC 27041
Dear Mr. Boaz:
ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
KIM H. COLSON
Director
Subject: Letter of Intent to Fund
Town of Pilot Mountain Water Treatment
Plant Upgrade
September 2017 Application Cycle
Project No.: H-SRP-D-17-0142
The Division of Water Infrastructure has reviewed your application, and the State Water
Infrastructure Authority has approved your project as eligible to receive funding. The State
Reserve Project Grant will be 50% of eligible project costs up to a maximum of $1,950,000. The
associated state loan will be $1,950,000 at zero interest. A grant fee of 1.5% and a loan fee of 2%
will be invoiced after bids have been received.
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
July 2, 2018
Engineering Report Approval
December 3, 2018
Bid and Design Package Submittal
June 3, 2019
Bid and Design Package Approval
October 1, 2019
Advertise Project, Receive Bids, Submit Bid Information,
and Receive Authority To Award
February 3, 2020
Execute Construction Contract(s)
March 2, 2020
The first milestone is the submittal of an Engineering Report by close of business on
July 2, 2018. The Engineering Report must be developed using the guidance found on our
website-(http://portal.ncdenr.org/web/wi/home). ]Failure to meet any milestone may result in
the forfeiture of funding for the proposed project.
NdD'thling Comj pare sue'
State of North Carolina I Environmental Quality I Water Infrastructure
512 N. Salisbury Street, Raleigh, North Carolina 27604 1 1633 Mail Service Center, Raleigh, North Carolina 27699-1633
919 707 9160

Mr. James Michael Boaz, Town Manager
March 1, 2018
Page 2 of 2
The State Environmental Policy Act exempts projects funded by the State Reserve (SRP)
from environmental review. [NCGS 11 3A- 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 loan 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 loan
amount and loan terms.
General Assembly Notification Requirements
In accordance with G.S. 120-157.1 through 157.9, enacted on June 24, 2011, 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 this letter and providing a copy to the Division of Water
Infrastructure upon receipt of this approval letter.
Drought Bill Requirements
In accordance with G.S. 143-355.4, a project "for the purpose of extending waterlines or
expanding water treatment capacity" must document numerous requirements during the
Engineering Report review process. You can find additional information at the following link:
htW://www.ncleg.net/enactedlegislation/statutes/htnil/bysection/chpter 143/gs 143-355.4.html
If you have questions, please contact Seth Robertson, PE, Chief, State Revolving Fund
Section at 919-707-9175.
Sincerely,
Kim H. Colson, P.E.
CC: DougCzhapman, PE,, McGill; Associates, RA -.;,'Hickory
Vincent Jude Tomaino, PE
Marls Hubbard, PE
Project File (C®M_L®IF)