NCC243059_(ARPA) DWI Letter of Intent to Fund_20241002

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SHADI ESKAF NORTH CAROLINA
Director Environmental Quality
March 23, 2023
Mr. Curtis Potter, County Manager
Washington County
PO Box 1007
Plymouth,NC 27692
Subject: Letter of Intent to Fund
Washington County
Pea Ridge Water Transmission Main
September 2022 Application Cycle
Project No.: VUR-D-ARP-0104
Dear Mr. Potter:
The Division of Water Infrastructure (Division) has reviewed your application, and the
State Water Infrastructure Authority (SWIA) has approved your project as eligible to receive a
total funding amount of$5,472,000 from the following funding:
Viable Utility Reserve (VUR) grant from the American Rescue Plan Act(ARPA). Projects
funded from ARPA must meet applicable federal law and guidance. The VUR ARPA
Project Grant will be one hundred percent of eligible project costs up to a maximum of
$5,472,000.
Please note that this intent to fund is contingent on meeting all of the following milestones:
Milestone* Date
Engineering Report Submittal July 3, 2023
Engineering Report Approval September 1, 2023
Bid and Design Package Submittal March 1, 2024
Bid and Design Package Approval July 1, 2024
Advertise Project, Receive Bids, Submit Bid November 1, 2024
Information, and Receive Authority To Award
Execute Construction Contract(s) December 31, 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.
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Department E Q North Carolina Dertm ofEnvironmental Quaty I DivisionI
.Northof Carolina
Wate 27ast699-1Departmenta Environmental oirwn� /`� 919.707.9160

Mr. Curtis Potter, County Manager
March 23, 2023
Page 2 of 3
The first milestone is the submittal of an Engineering Report on July 3, 2023. 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
The Uniform Guidance 2 CFR 200.317 through 2 CFR 200.327 gives minimum requirements for
procurement, with 2 CFR 200.319(b) addressing engineering services procurement
guidelines. ARP-funded projects must also adhere to North Carolina State law. All projects must
also 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.
Requirements of Local Government Units Designated as Distressed
Additional information is required to be submitted in the Engineering Report for all distressed
systems, regardless of funding source, to demonstrate how the project moves the local
government unit towards viability. Guidance on these requirements can be found on the
Division's website on the "I Have Funding"page under the Engineering Report section. For
questions about these additional requirements, please contact Tony Dongarra of the Viable
Utility Projects Unit at 919-707-3632 or at [e-mail].
Local government units designated as "distressed"under §159G-45(b) must complete associated
requirements of the statute by:
1. Conducting an asset assessment and rate study.
2. Participating in a training and educational program.

Mr. Curtis Potter, County Manager
March 23, 2023
Page 3 of 3
3. Developing a short-term and long-term action plan considering all of the following:
a. Infrastructure repair, maintenance, and management;
b. Continuing education of the governing board and system operating staff; and
c. Long-term financial management plan.
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 review
process. You can find additional information at the following link:
http://www.ncleg.net/enactedlegislation/statutes/html/bysection/chapter 143/gs_143-355.4.html
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(alncdenr.gov.
If you choose to decline this funding, the Authorized Representative as declared in the
application must directly contact the Division project manager via email or letter on the
applicant's letterhead.
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 Jim Morrison at [e-mail] or
by phone at(919) 707-9157.
Sincerely,
?-71.--
Jon Risgaard, Chief
State Revolving Fund Section
EC: Gregory J. Churchill, PE, Rivers &Associates, Inc. (via email)
Jim Morrison (via email)
Tony Dongarra(via email)
Pam Whitley
ARPA (COM_LOIF)