SWG040156_(SL 2023-134) DWI Letter of Intent to Fund_20241029

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-lBEF1D2DEFF6
.N STATE,
ROY COOPER v = o
Governor
MARY PENNY KELLEY
Secretary
SHADI ESKAF NORTH CAROLINA
Director Environmental Quality
October 24, 2024
Mr. Eric Credle, Chief Financial Officer
New Hanover County
230 Government Center Drive, Suite 165
Wilmington,NC 28403
SUBJECT: Funding Offer
Project No. SRP-M-134-0100
Last Frontier
Dear Mr. Credle:
New Hanover County has been approved for funding assistance according to the subject
funding offer. This offer is made subject to the Assurances and Conditions attached to this
document.
Upon your acceptance,please submit the following items via Laserfiche at the following link:
https://edocs.deq.nc.gov/Forms/DW-Document-Upload-Form.
1. One (1) copy of the original Offer and Acceptance Document executed by the
Authorized Representative for the project, along with the Conditions and
Assurances. Retain the other copy for your files.
2. A resolution adopted by the governing body accepting the funding offer and
making the applicable Conditions and Assurances contained therein. (Sample
copy attached)
3. Federal Identification Number and Unique Entity ID Number of the Subrecipient
(UElD required for federally funded projects)
4. Sales-Tax Certification (attached)
The Site Certification and a Capital Project Ordinance (or budget ordinance covering the
project) are due before disbursements begin.
Disbursement requests are to be submitted via Laserfiche at the following link:
https://edocs.deq.nc.gov/Forms/DW-Document-Upload-Form. A reference copy of the
Disbursement Request Form(also found on the DWI website)has been enclosed for your
convenience.
D EQ North Carolina Department of Environmental Quality I Division of Water Infrastructure
512 N.Salisbury Street 1 1633 Mail Service Center I Raleigh,North Carolina 27699-1633
Nolan.cnaoura �
919.707.9160

Docusign Envelope ID:A31 CE77A-66F0-4597-A8F2-1 BEF1 D2DEFF6
On behalf of the Department of Environmental Quality, I am pleased to make this
funding offer. Should you have any questions concerning this offer of funding, or any of the
stipulations outlined in this offer package,please contact David Smith at
[e-mail] or(919) 707-3885.
Sincerely,
D�o�eu/Signned by:
6300A872077B4C5_.
Shadi Eskaf, Director
Division of Water Infrastructure,NCDEQ
Enclosures: Offer and Acceptance Document
Assurances & Conditions
Federal ID and UEID Number Request Memo
Resolution to Accept Funding Offer(suggested format)
Sales-Tax Certification Form
Disbursement Request Form
Guidance Document(North Carolina Wastewater Funding Programs Overview)
Site Certification
Capital Project Ordinance (Sample)
cc: Eric Credle, Chief Financial Officer,New Hanover County
(ecredlegnhc gov.com)
Sean Kenyon, P.E., McKim & Creed(skenyongmckimcreed.com)
Mark Hubbard(Via DocuSign)
David Smith (Via DocuSign)
DWI Administrative Unit (Via DocuSign)
Carrie Shortt(Via DocuSign)
Teresa Tripp (Via DocuSign)
DEQ.DWI.Fundin Og ffergdeq.nc.gov
FILE: SRP-134 Project File (COM_LOX)
Agreement ID#: 2000075946
D E Q­'� North Carolina Department of Environmental Quality I Division of Water Infrastructure
512 N.Salisbury Street 1 1633 Mail Service Center I Raleigh,North Carolina 27699-1633
NOPIH CAPU'_INA
ocean W E.Wo—NI /� 919.707.9160

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D21DEFF6
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER INFRASTRUCTURE
Funding Offer and Acceptance
Legal Name and Address of Award Recipient Project Number(s): SRP-M-134-0100
New Hanover County
230 Government Center Drive, Suite 165 Assistance Listing Number: N/A
Wilmington, NC 28403 Unique Entity ID Number: F7TLT2GMEJEI
Funding Program
Drinking Water ® Additional Amount for Previous Total Total Offered
Stormwater ❑ Funding Increases
Wastewater
State Revolving Fund-Repayable Loan ❑
State Revolving Fund-Principal Forgiveness ❑
State Reserve Loan ❑
State Reserve Grant ❑
State Reserve Earmark (S.L. 2023-134)* ® $29,550,000
American Rescue Plan Act- ❑
Project Description:
Last Frontier Total Financial Assistance Offer: 1$29,550,000
Total Project Cost: $42,642,554
Estimated Closing Fee**: $ 0
For Loans
Interest Rate: -- Per Annum
Maximum Loan Term: --Years
*Federal conditions and requirements will also apply to S.L 2023-134 projects co funded with federal funds.
**Estimated closing fee calculated based on grant and loan amount.
Pursuant to North Carolina General Statute 159G:
• The applicant is eligible under Federal and State law,
• The project is eligible under Federal and State law, and
• The project has been approved by the Department of Environmental Quality as having sufficient priority to
receive financial assistance.
The Department of Environmental Quality, acting on behalf of the State of North Carolina, hereby offers the financial
assistance described in this document.
For The State of North Carolina: Shadi Eskaf, Director, Division of Water Infrastructure
oocu8igned by: North Carolina Department of Environmental Quality
L "-� 10/29/2024
630075872077B4C5.:--------------------------------------------------- --------------------------------------------------
Signature Date
On Behalf of: New Hanover County
Name of Representative in Resolution:
Title (Type or Print):
I, the undersigned, being duly authorized to take such action, as evidenced by the attached CERTIFIED COPY OF
AUTHORIZATION BY THE APPLICANT'S GOVERNING BODY, do hereby accept this Financial Award Offer and will comply
with the attached Assurances and the Standard Conditions.
--------------------------------------------------------------------------- --------------------------------------------------
Signature Date

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D21DEFF6
STANDARD CONDITIONS&ASSURANCES FOR STATE RESERVE PROJECTS
Project Subrecipient: New Hanover County Project Number(s): SRP-M-134-0100
1. The Subrecipient intends to construct the project or cause it to be constructed to final completion in accordance
with the Application or Request for Funding approved for financial assistance by the Division.
2. If the project is co-funded with federal funding sources (e.g., State Revolving Funds, CDBG-Infrastructure,
American Rescue Plan Act),the conditions and assurances of the federal funding program will also apply.
3. The Subrecipient acknowledges that in the event a milestone contained in the most recent Letter of Intent to
Fund is missed,the Department of Environmental Quality may rescind this Funding Offer.
4. The Subrecipient is responsible for paying for the costs ineligible for DWI funding.
S. All projects must comply with North Carolina General Statute 143-64.31, Article 3D Procurement of
Architectural, Engineering, and Surveying Services. Any services provided that were not selected in compliance
with state requirements will be ineligible for disbursement.
6. The construction of the project, including the letting of contracts in connection therewith, conforms to the
applicable requirements of State and local laws and ordinances.
7. As of the acceptance of this Funding Award Offer, steps identified in the SRP Guidance will be complete.These
Assurances, likewise, incorporate the most recent version of the SRP Guidance, and the Subrecipient hereby
certifies by accepting this Funding Award Offer that it will adhere to the subsequent steps in the SRP Guidance
document.The remaining steps generally govern project design, bidding, contracting, inspection,
disbursements, closeout and repayment.
8. The Subrecipient will provide and maintain adequate engineering supervision and inspection.
9. The Subrecipient agrees to establish and maintain a financial management system that adequately accounts for
revenues and expenditures.Adequate accounting and fiscal records will be maintained during the construction
of the project and these records will be retained and made available for a period of at least three years following
completion of the project.
10. All SRP funds must be expended solely for carrying out the approved project, and an audit shall be performed in
accordance with G.S. 159-34. Partial disbursements on this loan or grant will be made promptly upon request,
subject to adequate documentation of incurred eligible costs, and subject to the Subrecipient's compliance with
the Standard Conditions of this Award.The Subrecipient agrees to make prompt payment to its contractor, and
to retain only such amount as allowed by North Carolina General Statute.
11.The Subrecipient will expend all of the requisitioned funds for the purpose of paying the costs of the project
within three (3) banking days following the receipt of the funds from the State. Please note that the State is not
a party to the construction contract(s) and the Subrecipient is expected to uphold its contract obligations
regarding timely payment.
12.The Subrecipient, if a local government unit or public authority, must comply with the requirements of NC GS
159-34 in having its accounts audited each fiscal year and to submit a copy of the audit report to the Secretary
of the Local Government Commission by the established deadlines. Failure to comply with these requirements
may result in delays in disbursement of the funds to the Subrecipient and/or the rescission of this Funding Offer.
13.The Subrecipient acknowledges that any loan funds contained in this Funding Offer requires approval from the
North Carolina Local Government Commission before they can be disbursed.
14. Local government units designated as distressed must complete associated requirements of statute§159G-45(b).

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D2DEFF6
FEDERAL ID & Unique Entity ID# REQUEST MEMO
TO: All Loan and Grant Recipients
SUBJECT: Federal Identification Number
Please be advised that all local government units receiving grant or loan funds from the State of
North Carolina must supply their Federal Identification Number to this office upon acceptance
of your loan/grant offer. Therefore, please provide the information below and return to the
Division via email at [e-mail].
RECIPIENT:
PROJECT NUMBER:
FEDERAL IDENTIFICATION NUMBER:
UNIQUE ENTITY ID:

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D2DEFF6
(Suggested Format)
RESOLUTION BY GOVERNING BODY OF RECIPIENT
WHEREAS, the (unit of Government)has received a Directed Projects grant from the
2023 Appropriations Act, Session Law 2023-134, administered through the
Drinking Water Reserve and Wastewater Reserve to assist eligible units of
government with meeting their water/wastewater infrastructure needs, and
WHEREAS, the North Carolina Department of Environmental Quality has offered 2023
Appropriations Act funding in the amount of$ to perform work
detailed in the submitted application, and
WHEREAS, the (unit of government) intends to perform said project in accordance with the
agreed scope of work,
NOW, THEREFORE,BE IT RESOLVED BY THE (GOVERNING BODY) OF THE
(UNIT OF GOVERNMENT):
That(unit of government) does hereby accept the 2023 Appropriations Act Directed
Projects Grant offer of$
That the (unit of government) does hereby give assurance to the North Carolina
Department of Environmental Quality that any Conditions or Assurances contained in the
Award Offer will be adhered to.
That(name and title of authorized representative), and successors so titled, is hereby
authorized and directed to furnish such information as the appropriate State agency may
request in connection with this project; to make the assurances as contained above; and to
execute such other documents as may be required by the Division of Water Infrastructure.
Adopted this the (date adopted) at(place),North Carolina.
(Signature of Chief Executive Officer)
Date

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D2DEFF6
SALES-TAX REIMBURSEMENT CERTIFICATION FORM
(FOR FUNDING PROGRAMS IN THE DIVISION OF WATER INFRASTRUCTURE)
Applicant:
Project Number:
❑ Check If Applicant is not a unit of government under North Carolina law
If Applicant noted above is a Unit of Government in North Carolina, check the applicable box below.
Sales Tax IS deducted in this scenario. Please show this on the disbursement requests.
❑ The construction contract was bid with sales taxes and the unit of government will request
reimbursement from the DOR.
Sales Tax IS NOT deducted in either of these scenarios.
❑ The construction contract was bid with sales taxes and the unit of government will not request
reimbursement from the DOR.
❑ The construction contract was bid without sales taxes
(Printed Name and Title of Authorized Representative)
(Signature of Authorized Representative)
(Date)

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D21DEFF6
DISBURSEMENT REQUEST FORM NC Division of Water Infrastructure
Funding Recipient: Payment No. Page No.
DWI Project No. Period Covered From: To:
CONSTRUCTION Cumulative Cost Minusinus Overruns Not Subtotal of Minus Retainage on Minus Cumulative Other Adjustments Minus Previously Requested For This
Ineligibles
(Rename as appropriate) to Date ApMp'd By Change Order Payable Cost Payable Cost Sales Tax (Other Funds e.g.) Paid to Date Pay Request
Contract 1 $1,200,000 ($100,000) ($100,000) $1,000,000 ($50,000) ($50,000) ($500,000) ($300,000) $100,000
Contract 2 $505,000 ($5,000) $500,000 ($25,000) ($10,000) ($400,000) $65,000
Contract 3
Contract 4
Contract 5
ENGINEERING Cumulative Cost Other Adjustments Minus Previoussy Requested For This
(Rename as appropo(e) to Date (Other Funds e.g.) Paid to Date Pay Request
Item 1 $250,000 ($250,000) $0
Item 2
Item 3
Item 4
OTHER COSTS Cumulative Cost Other Adjustments Minus Previously Requested For This
Rename as A ro date to Date (Other Funds e.g.) Paid to Date Pay Request
Item 1
Item 2
Item 3
Cumulative Cost Minus Overruns Not Minus Retainage on Minus Cumulative Other Adjustments Minus Previously Total Requested For
PAY REQUEST TOTALS to Date Minus Ineligibles A d Bs Change Order Payable Cost Sales Tax Other Funds e. Paid to Date This Pa Request
PPS Y 9 Y ( 9�) Y q
$1,955,000 ($100,000) ($105,000) ($75,000) ($60,000) ($500,000) ($950,000) $1659000
Certification Grant Percentage for SRP Projects:
-I certify that to the best of my knowledge and belief the incurred costs being requested for disbursement are in accordance with terms of the project and that this request represents the %
monies due which have not been previously received and that an inspection has been performed and all work is in accordance with the terms and conditions of the award.
-For applicable SRF projects,the project remains in compliance with Davis-Bacon and American Iron and Steel conditions or is the process of remediating noncompliance.
You must check ONE of the boxes below or your payment will not be processed:
The funds requested above have already been paid to the respective vendors,consultants&contractors by the funding recipient ❑
OR
The funds requested above have not been paid to the respective vendors,consultants&contractors.
Funds received from the State will be disbursed to these entities within three(3)banking days. ❑
Type or Print Name and Title Signature of Authorized Representative Date
DWI comments
Instructions and notes on how to use this form
Complete guidance for preparing disbursement requests can be found in section G.2.of the North Carolina SRF Program Overiew and Guidance that was included with your Funding offer(applicable to State grants and loans too).
The form,as downloaded,is filled out with sample numbers.It is suggested that the sample be used as a reference(saved or printed).
Please submit ONE COPY of this form and backup documents when requesting funds.
Only the Authorized Representive can sign this form,unless declared otherwise in a resolution.
Construction contract line item overruns and engineering contract overruns must have approved change orders or engineering amendments before those costs will be paid.
Rev 01/12/24

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D2DEFF6
:may
Water Infrastructure
ENVIRONMENTAL OVALITY
CERTIFICATION REGARDING UNIFORM RELOCATION
ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES
(URLAP)ACT OF 1970
Applicant:
Project No.:
Project Name:
Please check appropriate boxes:
I certify that all real property(including easements)has been
acquired or condemnation proceedings have been entered into for
property thereby providing legal access for this project.
AND
13 I certify to the best of my knowledge and belief that the acquisition
of property specifically for the above referenced project is in
compliance with the URLAP Act of 1970(the Uniform Act). The
acquisition either:
Acquisition of real property did not result in the
displacement of any person,business or farm operation.
13 or relocation was involved in the land acquisition,the
Federal Highway Administration(FHA)was contacted for
technical assistance.
OR
CI Compliance with the Uniform Act does not apply because the land
and/or easements associated with the above referenced project were
acquired prior to the inception of the project. Date land
acquired:
I understand that a false statement on this certification may be grounds for rejection or
termination of this loan.
Signature of Applicant's Authorized Representative or Attorney Date
Typed Name and Title

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D21DEFF6
Capital Project Ordinance
Be it ORDAINED by the Governing Board of the (Town of Anywhere), North Carolina,that pursuant to
section 13.2 of Chapter 159 of the General Statutes of North Carolina,the following capital Project
Ordinance is herby adopted.
Section 1:The Project authorized is the (construction/rehabilitation of a wastewater
treatment/collection System)to be financed by(the sale of general obligation bonds/ARRA loan/federal
loan/state loan/state grants and reserves).
Section 2: The officers of this unit are hereby directed to proceed with the capital project within the
terms of the board resolution, loan documents and the budget contained herein.
Section 3:The following amounts are appropriated for the project:
Engineering $ 120,000
Land 90,000
Construction 1 440 000
$ 1,650,000
Section 4: The following revenues are anticipated to be available to complete this project:
Federal/ARRA Loan $ 1,100,000
Proceeds from general Obligation Bonds $ 500,000
Transfer from Wastewater treatment capital Reserve $___ 201000
S 1,650,000
Section 5: The finance officer is hereby directed to maintain within the capital project fund sufficient
specific detailed accounting records to satisfy the requirements of the grantor agency, the grant
agreements, and federal regulations.The terms of the bond resolution also shall be met.
Section 5: Funds may be advanced from the General Fund for the purpose of making payments as due.
Disbursement requests should be made to the grantor agency in an orderly and timely manner. Section
7: The finance officer is directed to report, on a quarterly basis, on the financial status of each project
element in section 3 and on the total grant/loan revenues received or claimed.
Section 8: The Budget Officer is directed to include a detailed analysis of past and future costs and
revenues on this capital project in every budget submission made to this board.
Section 9: Copies of this capital project ordinance shall be furnished to the clerk to the Governing Board,
and to the Budget Officer and the Finance officer for direction in carrying out this project.
Duly adopted this_day of 201_.
Signature, (Authorized Rep)
(Seal)
Attest:
Signature (Town Clerk)

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D2DEFF6
North Carolina Wastewater Funding Programs Overview ij
Division of Water Infrastructure Website: https://www.deq.nc.gov/about/divisions/water-infrastructure
A) Application Filing
1. Application deadlines are twice a year.The deadlines are typically March and September.
2. If SRF and State Reserve funding are both available,an applicant will simply apply for
funding and DWI will slot successful applications into the funding program that best suits
the situation(most grant or principal forgiveness,most total dollars etc.)
3. Letter of Intend to Fund(LOIF)letters are mailed after DWI evaluation and State Water
Infrastructure Authority approval. Recipients of LOIF letters are placed on a schedule for
completing the rest of the steps to start construction.
4. Consult the website for the current application forms.
B) Engineering Report Submission and Approval(See website for guidance and details)
1. From the Date of the LOIF,an Engineering Report(ER)must be submitted within 4 months.
2. From the Date of the LOIF,the ER must be approved within 9 months.
3. Consult the website for submittal checklists and instructions.
C) Application Approval by the Local Government Commission
1. For projects with a loan component, the Local Government Commission must
approve the ability to take on the requested debt. This is done after the
Engineering Report is approved. DWI staff will transmit the required
information to the LGC on behalf of the project applicant. Note that LGC 108A
& 108C forms are now not requested by DWI until the ER is approved. The
ER approval letter asks the applicant to obtain the forms from the website
and return them to DWI. Please do this as soon as possible.
2. Terms:
a) Projects with interest bearing loans will receive the lower of two interest rates.The
two rates are the current rate when applications are due and the rate when the
LGC approves the loan.The Loan Offer(discussed in D, below)will reflect the lower
rate.The rates are%Z the 20-year municipal bond buyers index.Certain,qualifying
applications receive 0%interest loans.
b) The LGC sets the loan term with a maximum term of 20 years.Applicants may want to
contact the LGC earlier than this to ensure they are able to meet LGC approval
requirements.Currentlythe LGC is not allowed to review applications for$1,00g000 or more
unless a letterto the Joint Legislative Committee on Local Government and the Fiscal Research
Division has been provided.
c) Loan Offers can be written for as much as 110%ofthe LGC approved amount.The applicant
mustjustify this,and request it in writing from the DWI.
d) In some rare cases a 30 year term may be available.Please consult DWI management to
discuss if this is potentially available foryour situation.
D) Loan Offer
1. After approval of the Engineering Report and debt capacity by the LGC(for loans),a
formal Award Offer is prepared which includes the Award's details and applicable
assurances and conditions.
September 27, 2017

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D21DEFF6
a) Two copies of the Award Offer are sent to recipients.Return the following to DWI:
b) One signed copy(keep the other copy)of the Loan Offer.
c) Resolution accepting the Award Offer.
d) Federal ID and DUNS#form.
e) Sales Tax Certification.
f) A Fiscal Sustainability Plan(FSP)Certification for certain new SRF projects.This
must be returned before a project's final reimbursement will be made.
2. In the event of bids that exceed the project budget,a loan increase for up to 10%can
be authorized without additional approval of the LGC.Amounts above 10%require a
modified application to be approved by the LGC.
3. Closing Fees are invoiced with the Authority to Award letter.(paragraph F below).The
Award Offer contained an estimated closing fee but actual closing costs are based on the
total costs after bids are received.Loan Fees are 2%and Grant Fees 1.5%.
E) Plans and Specifications Approval (see website for guidance and details)
1. Plans &Specifications must be submitted within 15 months of the LOIF.
2. Plans and Specifications must be approved within 19 months of the LOIF letter.
This includes issuance of all permits.
3. The project's plans and specifications must be approved by the Division prior
to advertising for bids. Changes by addendum must be submitted to the
Division for approval. Changes by change order must also be submitted for
approval.
F) Bidding and Issuance of Authority to Award(ATA)the Construction Contract
1. Issuance of the ATA letter must be within 23 months of the LOIF letter.Awarding
contracts before issuance of the ATA letter is at the risk of the owner.
2. The contracts may be advertised as soon as plans&specifications are approved and
permits are issued. NC General Statutes require the project to be advertised for 7
days,however DWI prefers projects to be advertised for 30 days. For the initial
advertisement period,three bids must be received in order for an award to be made.
The Plans&Specifications approval letter has the Project Bid Information form
attached. It,and the other information described in it,must be submitted to and
approved by this office before contracts can be awarded.This information is:
a. Project Bid Information Form,signed by authorized representative
b. Bid tabulation,sealed by the consulting engineer
c. Proposals of the successful bidders
d. Tentative award resolution from loan recipient subject to DWI approval
e. Engineer's recommendation
f. Proof of Advertisement
g. American Iron and Steel Certification (SRF only)
h. MBE/WBE requirements.(Detailed guidance on the website).
3. In an environment where program funding is limited,costs not
demonstrated to be needed by the applicant,will immediately be
made available in future funding rounds(deobligated).
September 27, 2017

Docusign Envelope ID:A310E77A-66F0-4597-AU2-1BEF1D21DEFF6
G) Construction Phase of Project
1. Inspections
a) Site Inspections will be conducted for all funded projects. Coordinate the
Preconstruction Conference with the Inspector assigned to project.The number of
inspections performed will be determined based on the length of the
project, type of project, amount of funding involved and other factors. Any
duly authorized representative of the State will have access to the work
site and the contractor will provide proper facilities for such access and
inspection. Further, any authorized representative of the State shall have
access, for the purpose of audit and examination, to any records pertinent
to the funds.
b) A primary duty of the administering State agency is to guard against fraud,
waste and abuse of Federal funds. To ensure proper use of Federal funds,
State personnel may review submittals, daily logs, testing reports, as-builts
and other appropriate construction documentation to verify that project
elements meet approved specifications. Generally, any changes to unit
quantities or changes in specifications that result in substantial monetary
savings for the owner, will need to be documented by change order.
c) Conformance with SRF standard conditions is a primary program responsibility.These
include Davis-Bacon and American Iron and Steel currently.
d) Additionally, inspections may uncover unsafe construction practices and
environmental compliance violations. While not necessarily in SRF staff jurisdiction,
deficiencies may be referred to appropriate enforcement agencies. Expeditious and
timely use of SRF funds is a program goal and avoidance of any delay in construction is
a concern,particularly delays associated with public health or worker safety which are
of concern in their own right.
2. Disbursements($$$)
a) First Reimbursement
i) Approval of Construction Contracts must happen with 24 months of
the LOIF letter.The following items are required for approval:
o Contract must be fully executed
o Notice to Proceed must be executed by owner and contractor
o The project specifications must include 100%performance and payment bonds.
Bonds must be dated on or after contract date
o Original power of attorney must be dated on or after bonds
o The contractor must provide current Insurance
o All documents must be bound with the specifications
o Davis-Bacon Documents must be present in the specifications
ii) Capital Project Ordinance submitted as required by G.S. 159-13.2.
Alternately a budget ordinance that clearly identifies the
project being funded by the SRF can be submitted.
iii) All items under Item DJ.
iv) Site Certificate
v) Engineering Contracts and Engineering Procurement Certification(2
items)
vi) Closing Fee must have been received
September 27, 2017

Docusign Envelope ID:A310E77A-66F0-4597-AU2-1BEF1D21DEFF6
vii) For Loans, promissory note executed and returned to the Local Government
Commission (this is requested from the LGC upon receipt of the executed
construction contract and is for the amount noted in the ATA letter)
b) Disbursements-General Information
i) Forms can be found online.A sample was included with the Loan Offer
ii) Disbursement requests should be sent to Jackie Moore; 1633 Mail Service
Center; Raleigh NC 27699-1633.
iii) All items must be approved in advance before being reimbursed.
iv) One copy of the following information is required for
reimbursements:
o Reimbursement request form with original signature.
o Contractor monthly estimates
o Engineering invoices
o Invoices for any other approved costs
o Eligible land costs will be reimbursed when the land has either been acquired or
is under condemnation.In both cases and a copy of an offer to purchase the land
must be submitted with the appraisal.
v) Indicate cumulative totals on the reimbursement form
vi) Check the appropriate box regarding whether or not contractors have
already been paid. Note,that if the DWI funds are needed to pay the
contracts,the funds must be disbursed within 3 banking days of receipt.
vii) As noted in the Award Offer Assurances,sales taxes will be deducted from
disbursements if an applicant indicates they intend to seek reimbursement for
them from the Department of Revenue.A certification form is provided on our
website to indicate what the owner intends to do regarding sales tax.
viii) Note that Davis-Bacon certified payrolls and materials invoices that support
the contract summary invoice do not need to be submitted with
reimbursement requests.
c) Project Closeout and Final Disbursement
i) Funds are held at 95%until the final payment is authorized.
ii) Required items for final payment include:
o The inspector must issue final inspection report signifying that project is
complete and all concerns have been satisfied and all change orders must
have been submitted and approved.
o Final invoices must show zero retainage.
o Submit to Pam Whitley:
✓ Engineer's certifications.
✓ Owner's Certification of Completion
✓ Signed Closeout Checklist.
✓ Fiscal Sustainability Plan(CWSRF Only).
September 27, 2017

Docusign Envelope ID:A310E77A-66F0-4597-A8F2-1BEF1D2DEFF6
H) REPAYMENT(LoansOnly)
1. Repayments will be reflected in the final promissory note and will be for the
actual funds borrowed.
2. Repayments by the recipient begin on the May 1st or the November 1st that is
between 6 months and 12 months after original project completion in the notice to
proceed.
3. The May 1st payment includes principal and interest and the November 1st payment is
only interest.
4. Interest begins to accrue from the date of completion on the Notice to Proceed.
For multi-prime contracts the General contract will be used to set this date.
5. Construction Manager at Risk and Design Build Contracts,should set a date of
completion in that contract.
September 27, 2017

Docusign Envelope ID:A310E77A-66F0-4597-AU2-1BEF1D21DEFF6
1. R�horyAudiority-CiNSRF
a) The types of projects that can be funded are loosely defined under Sections 212,319
and 320 of the Clean Water Act.These can be described as publically owned
wastewater treatment and transport systems and stormwater pollution treatment and
control projects.
2. Construction-Items Not Eligible
a) Project elements not related to the scope of the approved project.
b) The SRF will pay to restore project related items such as road patching,sidewalks
Fences,seeding,etc. Complete paving of streets unless warranted by disturbance
of construction activities, even if required by NCDOT
c) Note that items or rework that should be covered by bonds,insurance or liquidated damages
will not be covered by the SRF funds.
d) Any installation of service lines or service laterals outside the right-of-way.
e) Operation and maintenance type work (e.g. sludge removal not necessary for
construction of the project), or items such as spare parts.
f) Extended warranties or maintenance contracts.
g) Drinking water facilities are not eligible for CWSRF projects unless changes
are necessary to complete the sewer project (e.g. moving a water line,
providing potable water to wastewater facility).
3. Engineering and Technical Services-Eligibility Considerations
a) Planning and Design Contracts
i. Must include task descriptions and these tasks must be associated
with the project being built
b) Construction Administration and Inspection
i) Task Description must be included and tasks must be associated with eligible
construction work
ii) Typical tasks include but are not limited to:attending meetings, provide plan
copies, review testing, review shop drawings, review payment applications,
prepare change orders,coordinate with DWI,as-builts
iii) Price should be cost plus fixed fee or per diem with a ceiling.This fee schedule
should be in the contract.
iv) Invoices must include hours,rate and task
v) Contract must be amended to pay beyond the ceiling. Must be accompanied
by justification such as a corresponding change order.
c) Other eligible engineering activities include bidding,0&M manuals,soils reports,hydro-
geologic reports,TVing and cleaning of lines etc.
4. Other Eligibility Notes
a) Legal-Legal fees for contract review and for advertisements etc.
b) Real Property and easements associated with the approved project scope are
eligible expenses.All cost items associated with acquiring the property may be
paid for if properly documented.
c) Preparation of permits required by Federal,or State regulations or procedures.
d) Permits imposed by the applicant such as building permits are not eligible.
September 27, 2017 •