NCC243534_(ARPA) DWI Letter of Intent to Fund_20241210

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
1w STATE 4
S a,,R
ROY COOPER s, 4141'
Governor ; ,':
ELIZABETH S.BISER �s n//
Y _
Secretar `$`p+N °:='
SHADI ESKAF NORTH CAROLINA
Director Environmental Quality
August 14, 2024
The Honorable Grayson Spell, Mayor
Town of Autryville
215 South Gray St.
PO Drawer 10
Autryville,NC 28318
Subject: Letter of Intent to Fund
S.L. 2023-134 Appropriations Act Directed Project
Autryville Stormwater Improvement
DWI Project No.: SRP-S-134-0155* Co-funded
with SRP-SW-ARP-0007
Dear Mayor Spell:
The Division of Water Infrastructure (Division) has received your Request for Funding for the
aforementioned project for up to $886,500 from the Drinking Water/Wastewater State Reserve as
established in Session Law (S.L.) 2023-134 and amended in S.L. 2024-1 (hereinafter referred to simply as
S.L. 2023-134). Projects funded from the State Reserve must meet applicable State laws and guidance for
expenditure of these funds. The following table shows total S.L. 2023-134 appropriations for your local
government excluding the Department's administrative fee as amended in S.L. 2024-1, awarded projects
and their funding amounts identified to date, and any remaining unobligated appropriations at the time of
this letter.
S.L. 2023-134 Appropriations Act Approved Projects
S.L. 2023-134 Approved Projects for S.L. 2023-134 Section 12.2.(e) Line # 9 Appropriation
Appropriated Funds Available for Projects $2,865,500
(excluding administrative costs)
Project Name Project Number Maximum Funding Amount
Autryville Stormwater Improvement SRP-S-134-0155* $886,500
Minnie Hall Road Water Line Extension SRP-D-134-0056 $1,970,000
Total Appropriations requested $2,865,500
Total Appropriations remaining $0
* Project applies to portion of 122(e) Line 9 appropriation which shall be used for stormwater
improvements.
D
E 4 North Carolina Department of Environmental Quality I Division of Water Infrastructure
512 N.Salisbury Street 11633 Mail Service Center I Raleigh,North Carolina 27699-1633
NOR I H CAROLINA li
om.mmdn or Environmental owxn 919.707.9160

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
The Honorable Grayson Spell, Mayor
Town of Autryville
August 14, 2024
Page 2 of 4
Other Funding Sources from the Division of Water Infrastructure *
Project Name Project Number Federal Maximum Funding
Funding Amount from Other
Source Sources _
Autryville Stormwater Improvements SRP-SW-ARP-0007 ARPA $350,000
Total Other Project Funding $350,000
* Federal conditions and requirements will also apply to S.L 2023-134 projects co-funded with federal funds.
This S.L. 2023-134 project is co-funded with federal funds from the American Rescue Plan Act (ARPA);
therefore,federal ARPA conditions and requirements will apply.Grant funds expended on this project through
December 2026, including from S.L. 2023-134, may be from the ARPA State Fiscal Recovery Fund.
However,funds from the S.L.2023-134 offer can continue to be expended after the federal ARPA expenditure
deadline of December 2026.
The first milestone for this project is the submittal of a bid-and-design package by December 1, 2025.
Please note that this intent to fund is contingent on meeting all the following milestones:
Milestone Milestone Date*
Apply for all Necessary Permits** ASAP
Bid-and-Design/Permit Package Submittal December 1, 2025
Bid-and-Design Package Approval April 1, 2026
Advertise Project, Receive Bids, Submit Bid
Information, and Receive Authority to Award June 1, 2026
Execute Construction Contract(s) September 1, 2026
* Milestone dates only apply to the S.L. 2023-134 portion of funding.
**An engineering alternatives analysis (EAA)may be required on certain projects. See:
https://deq.nc.gov/about/divisions/water-resources/water-quality-permitting/npdes-
wastewater/permitting-process
The Division will consider milestone timeline modification including extensions provided that appropriate
justification for granting extension is provided.
Environmental Review Requirements
The State Environmental Policy Act exempts projects funded by the State Reserve (such as this project)
from state-mandated environmental review. Federal requirements may still apply. [North Carolina General
Statute (NC G.S.) 113A-12.(2).(h)]

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
The Honorable Grayson Spell, Mayor
Town of Autryville
August 14, 2024
Page 3 of 4
Permitting
The NC Department of Environmental Quality(DEQ) is committed to providing efficient permit processing
for your S.L. 2023-134 project(s). To better serve you, we would appreciate your assistance in telling us the
type of DEQ permit(s) you will need and the timeframe of permit application(s) submittal. Please complete
the online form at the following link:
https://app.smartsheet.com/b/form/bb0d7d19b4024a548b8d1 c97cdad0cd8.
When applying for a permit(s), attach a copy of this letter to your permit application(s) and denote your
DWI assigned project number on the permit application if asked. If you do not know the type of permit(s)
your project may require,we offer a free permit assistance service to address any questions you may 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.
Disbursement of Funds:
These funds will be disbursed to the local government unit after relevant costs are incurred by the local
government and invoices are submitted to the Division. Up to 15% of the funds available for the project
may be disbursed after costs are incurred during the pre-construction stage to cover design and planning
costs. The remainder will be disbursed as invoices for incurred pre-construction and construction costs are
submitted by the local government during construction, which may be submitted prior to or after paying the
contractors for the incurred costs. Only costs eligible under NC G.S. 159G may be covered by these funds.
Projects must be administered in accordance with all applicable federal law and guidance, as well as North
Carolina statutes.
Electronic Document Submittal:
Recipients should submit all project documents via the supporting documentation submittal form located at
https://edocs.deq.nc.gov/Forms/DW-Document-Upload-Form. The use of this form provides more seamless
document tracking,processing, filing, accessibility, and security via our electronic document repository,
Laserfiche. The link and a list of frequently asked questions can also be accessed from the Division's I Have
Funding page, https://www.deq.nc.gov/about/divisions/water-infrastructure/i-have-funding.
Upon detailed review of the project during the funding process, it may be determined that portions of your
project are not eligible for funding. If you have any questions concerning this matter or require general
assistance, please contact the Division's project manager assigned to your project: Steve Pusey either by
telephone at 910.796.7331 or by e-mail at [e-mail].
Sincerely,
E DocuS.ig ned
by:
63 QA872077B CS... i Sha i Eska , Drector
Division of Water Infrastructure

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
The Honorable Grayson Spell, Mayor
Town of Autryville
August 14, 2024
Page 4 of 4
cc: Grayson Spell, Mayor, Town of Autryville (mayor(atownofautryville.com)
Kyle Lotier, McGill Associates ([e-mail])
R.J Mozeley, McGill Associates ([e-mail])
Antonio V. Evans, P.E. (DWI, via DocuSign)
Mark Hubbard, P.E. (DWI, via DocuSign)
Administrative Unit(DWI, via DocuSign)
LF Project File (COM—LOIF)
DWI Agreement ID: 2000059045

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
�,;,c STATE cy
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;jam// C!-»- S.
ROY COOPER �, s' . ' ri
Governor 'd el
ELIZABETH S.BISER _,.
Secretary `$
SHADI ESKAF NORTH CAROLINA
Director Environmental Quality
August 14, 2024
The Honorable Grayson Spell, Mayor
Town of Autryville
215 South Gray St.
PO Drawer 10
Autryville,NC 28318
SUBJECT: Funding Offer
Project No. SRP-S-134-0155
Co-funded with SRP-SW-ARP-0007
Autryville Stormwater Improvement
Dear Mayor Spell:
The Town of Autryville 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.
This S.L. 2023-134 project is co-funded with federal funds from the American Rescue Plan
Act (ARPA); therefore, federal ARPA conditions and requirements will apply. Grant funds
expended on this project through December 2026, including from S.L. 2023-134,maybe from the
ARPA State Fiscal Recovery Fund. However, funds from the S.L. 2023-134 offer can continue to
be expended after the federal ARPA expenditure deadline of December 2026.
Upon your acceptance,please submit the following items to the Division, via email at
[e-mail]:
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 Recipient
(UEID required for federally funded projects)
4. Sales-Tax Certification(attached)
D_E 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
Noll,Cnwo_INA
Department of umnMm«n i Dually 919.707.9160

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
The Site Certification and a Capital Project Ordinance (or budget ordinance covering the
project), and the Professional Engineering Services Procurement Form 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.
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,
r—DD�occu/S ig bed by:
6"""
6300A87�207777 B4C5...
Shadi Eskaf, Director
Division of Water Infrastructure, NCDEQ
Enclosures: Offer and Acceptance Document (two copies)
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)
Water Infrastructure Grants Legal Requirements Quick Reference Guide
Professional Engineering Services Procurement
cc: Grayson Spell, Mayor, Town of Autryville ([e-mail])
Kyle Lotier, McGill Associates ([e-mail])
R.J Mozeley, McGill Associates ([e-mail])
Mark Hubbard (Via DocuSign)
David Smith (Via DocuSign)
DWI Administrative Unit(Via DocuSign)
Carrie Shortt (Via DocuSign)
Teresa Tripp (Via DocuSign)
[e-mail]
FILE: SRP-134 Project File (COM_LOX)
Agreement ID#: 2000059045
D_E-^ Nemet f Environmental Qal I Divit Ifrru
`�7J1� 512 N.orth SalisburyCarolina Ds treetpart 1 1633no Mail Service Centeru I Raleighity ,North sionof CaroWaerlinan 27ast699-1633 cture
919.707.9160

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
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-S-134-0155***
Town of Autryville
215 South Gray St., PO Drawer 10
Autryville, NC 28318 Assistance Listing Number: N/A
Unique Entity ID Number: K4TJW2MPBCV6
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)* ® $886,500
American Rescue Plan Act-c_ ❑
Project Description:
Total Financial Assistance Offer: $ 886,500
Autryville Stormwater Improvement
Total Project Cost: $1,291,420
Estimated Closing Fee**: $ 0
***Co-funded with SRP-SW-ARP-0007 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
�DoouSigned by: North Carolina Department of Environmental Quality
CA^ 8/16/2024
--6300A672077B4C5..
Signature Date
On Behalf of: Town of Autryville
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:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
STANDARD CONDITIONS &ASSURANCES FOR STATE RESERVE PROJECTS
Project Applicant: Town of Autryville Project Number: SRP-S-134-0155
1. The Applicant intends to construct the project or cause it to be constructed to final completion in accordance
with the Application approved for financial assistance by the Division.
The recipient acknowledges that in the event a milestone contained in the most recent Clean Water State
Revolving Fund Intended Use Plan and/or the Letter of Intent to Fund is missed,the Department of Environmental
Quality will rescind this Funding Offer.
2. The Applicant is responsible for paying for the costs ineligible for DWI funding.
3. 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.
4. As of the acceptance of this Funding Award Offer, steps A-D in the SRP Guidance will be complete. These
Assurances, likewise, incorporate the most recent version of the SRP Guidance,and the Applicant 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.
5. The Applicant will provide and maintain adequate engineering supervision and inspection.
6. The recipient 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.
7 . 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 will be made promptly upon request, subject to
adequate documentation of incurred eligible costs, and subject to the recipient's compliance with the Standard
Conditions of this Award.The Applicant agrees to make prompt payment to its contractor, and to retain only
such amount as allowed by North Carolina General Statute.
8 . The applicant 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 Applicant is expected to uphold its contract obligations regarding timely
payment.
9. The applicant acknowledges that any loan funds contained in this Funding Offer requires approval from the
North Carolina Local Government Commission before they can be disbursed.

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
APPLICABLE STANDARD CONDITIONS
Project Applicant: Town of Autryville Project Number(s): SRP-SW-ARP-0007
1. Acceptance of this Funding Offer does not exempt the Recipient from complying with requirements stated in the
U.S.Treasury's Final Rule for the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) and the SLFRF
Compliance and Reporting Guidance not explicitly referred to in this document and any future requirements
implemented by the U.S Treasury.
2. Acquisition of Real Property must comply with all applicable provisions of the Uniform Relocation and Real
Property Acquisition Policies Act of 1970 (PL 92-646), as amended. The applicant shall certify that it has or will
have a fee simple or such other estate or interest in the site of the project, including necessary easements and
rights-of-way, to assure undisturbed use and possession for the purpose of construction and operation for the
estimated life of the project using a certification form provided by DEQ.
3. Specific MBE/WBE (DBE)forms and instructions are provided that are to be included in the contract
specifications.These forms will assist with documenting positive efforts made by recipients,their consultants
and contractors to utilize disadvantaged businesses enterprises. Such efforts should allow DBEs the maximum
feasible opportunity to compete for subagreements and subcontracts to be performed. Documentation of
efforts made to utilize DBE firms must be maintained by all recipients, and construction contractors, and made
available upon request.
4. Subrecipients shall fully comply with Subpart C of 2 CFR Part 180 entitled, "Responsibilities of Participants
Regarding Transactions Doing Business with Other Persons," as implemented and supplemented by 2 CFR Part
1532. Recipient is responsible for ensuring that any lower tier covered transaction, as described in Subpart B of 2
CFR Part 180, entitled "Covered Transactions," includes a term or condition requiring compliance with Subpart C.
Recipient is responsible for further requiring the inclusion of a similar term or condition in any subsequent lower
tier covered transactions. Subrecipients may access suspension and debarment information at:
http://www.sam.gov. This system allows subrecipients to perform searches determining whether an entity or
individual is excluded from receiving Federal assistance.
5. Projects with a total cost of$10,000,000 or more must meet U.S.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 specifies.
6. 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. ARPA-funded projects must also
adhere to North Carolina State law, specifically NC General Statute 143-64.31, Article 3D Procurement of
Architectural, Engineering, and Surveying (A/E) Services. NCGS 143-64.32 cannot be used to exempt funding
recipients from a qualification-based selection for A/E.The State provides applicable certification forms that must
be completed prior to receiving funds for any engineering services covered under this funding offer.
7. Local government units designated as distressed must complete associated requirements of statute§159G-45(b).
8 . Funds made available by the ARPA that are not disbursed to the entity accepting the funds in this document by
December 31st, 2026, will no longer be available for the project. Unused Federal funds will revert from the State
of North Carolina to the U.S.Treasury.

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
ASSURANCES
Project Applicant: Town of Autryville Project Number(s): SRP-SW-ARP-0007
1. The Applicant intends to construct the project or cause it to be constructed to final completion in accordance
with the Application approved for financial assistance by the Division. The recipient acknowledges that in the
event a milestone contained in the Letter of Intent to Fund is missed,the Department of Environmental Quality
will rescind this Funding Offer.
2. The Applicant is responsible for paying for the costs ineligible for ARPA funding.
3. 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.
4. The Applicant will provide and maintain adequate engineering supervision and inspection.
5. The recipient 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.
6. All ARPA funds shall 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 will be made promptly upon request, subject
to adequate documentation of incurred eligible costs, and subject to the recipient's compliance with the
Standard Conditions of this Award.The Applicant agrees to make prompt payment to its contractor, and to
retain only such amount as allowed by North Carolina General Statute.
7 . The applicant 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 Applicant is expected to uphold its contract obligations regarding timely
payment.
8 . Funds must be fully spent (i.e., fully disbursed to the recipient) by December 31, 2026.
9. The applicant acknowledges that loan funds contained in this Funding Offer require approval from the North
Carolina Local Government Commission before they can be disbursed.

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
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:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
(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:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
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.
n 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:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
DISBURSEMENT REQUEST FORM NC Division of Water Infrastructure
Funding Recipient: Payment No. Page No.
DWI Project No. Period Covered From: To:
CONSTRUCTION Cumulative Cost Minus Overruns Not Subtotal of Minus Retainage on Minus Cumulative Other Adjustments Minus Previously Requested For This
Minus Ineligibles
(Rename as appropriate) to Date App'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 Previoulsy Requested For This
(Rename as appropriate) 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 Appropriate) 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 App'd ByChange Order Payable Cost Sales Tax (Other Funds e.g.) Paid to Date This PayRequest
I pp g Y q
$1,955,000 ($100,000) ($105,000) ($75,000) ($60,000) ($500,000) ($950,000) $165,000
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:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Water Infrastructure
ENVIRONMENTAL QUALITY
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
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:
13 Acquisition of real property did not result in the
displacement of any person,business or farm operation.
or relocation was involved in the land acquisition,the
Federal Highway Administration(FHA)was contacted for
technical assistance.
OR
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:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
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 1L440�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 20,000
$ 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:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
North Carolina Wastewater Funding Programs Overview
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 1/2 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.Currently the LGC is not allowed to review applications for$1,000,000 or more
unless a letter to 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%of the LGC approved amount.The applicant
must justify this,and request it in writing from the DWI.
d) In some rare cases a 30yearterm may be available.Please consult DWI management to
discuss if this is potentially available for your 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 1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
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 2

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
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 D,1.
iv) Site Certificate
v) Engineering Contracts and Engineering Procurement Certification (2
items)
vi) Closing Fee must have been received
September 27, 2017 3

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
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 4

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
H) REPAYMENT(Loans Only)
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 5

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
I) agbitY
1. Regula /Authority-CUVSRF
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,O&M manuals,soils reports,hydro-
geologic reports,Wing 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 6

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Department of Environmental Quality
Division of Water Infrastructure
WATER INFRASTRUCTURE GRANTS
LEGAL REQUIREMENTS
QUICK REFERENCE GUIDE
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NORTH CAROLINA
Department of Environmental Quality

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Preface
Subrecipients received funds from the North Carolina Department of Environmental Quality(DEQ) in the form
of subawards, the purpose of which was to carry out a portion of NC DEQ's American Rescue Plan Act (ARPA)
State Fiscal Recovery Fund(SFRF) grant program in accordance with the applicable law.
As such, Subrecipients must carry out the responsibilities of their subawards in accordance with Section 602 of
the Social Security Act(as added by section 9901(a) of the American Rescue Plan Act of 2021), 31 C.F.R. Part
35 (U.S. Treasury's "Final Rule"), as well as any guidance provided by U.S. Treasury including, but not limited
to, the CSLFRF Compliance and Reporting Guidance and U.S. Treasury's SLFRF Final Rule Frequently Asked
Questions. Subrecipients must also comply with the applicable provisions of 2 C.F.R. Part 200 (the "Uniform
Guidance"), as implemented by the U.S. Treasury under 2 C.F.R. Part 1000, and as set forth in the CSLFRF
Assistance Listing 21.027.
In addition to the federal requirements for ARPA/SFRF subawards, subrecipients must also comply with
applicable state laws and regulations. For the most current guidance from Treasury, please see US Department
of Treasury SLFRF.
Pursuant to its responsibilities as a pass-through entity for federal financial assistance,NC DEQ created this
document to serve as a quick reference guide regarding the requirements applicable to subrecipients.
Subrecipients are responsible for properly complying with all applicable federal, state, and local requirements as
they carry out their duties under their subawards.
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
itation/
Document Description Location
w
Pre-Award Costs 2 C.F.R. § Pre-award costs as defined in 2 C.F.R. §200.458,which https://www.ecfr.gov/current/tit
200.458 includes costs incurred prior to the Federal Award Date le-2/subtitle-A/chapter-II/part-
of March 3, 2021, may not be paid with funding from 200/subpart-E/subject-group-
this award. Per U.S. Treasury guidance, pre-project ECFRed 1 f39f9b3d4e72/section
development costs that are tied to or reasonably -200.458
expected to lead to an eligible capital expenditure,such
as pre-project planning or engineering costs, are https://home.treasury.gov/syste
reimbursable under this program and not considered m/files/136/Financial-
prohibited pre-award costs. Assistance-Agreement-States-
and-Territories.pdf
(See term#5)
Period of U.S.Treasury The period of performance for ARPA/SFRF awards https://home.treasury.gov/syste
Performance CSFRF begins on March 3, 2021 and ends on December 31, m/files/136/Financial-
Financial 2026. All ARPA/SFRF funds must be obligated by Assistance-Agreement-States-
Assistance December 31, 2024, and expended by December 31, and-Territories.pdf
Agreement— 2026. Per U.S. Treasury guidance in its 2023 (See term#2)
States& Obligation Interim Final Rule, the obligation deadline
Territories does not apply to subrecipient. Subrecipients are not https://home.treasury.gov/syste
required to obligate their ARPA/SFRF funds by m/files/136/Obligation_Interim
U.S.Treasury December 31, 2024, however, they are still subject to _Final_Rule_2023.pdf
Obligation the expenditure deadline of December 31, 2026. All
Interim Final funds that are not expended by December 31, 2026,
Rule must be returned to U.S. Treasury.
Indirect Costs 2 C.F.R. § Pursuant to the terms and conditions of NC DEQ's https://www.ecfr.gov/current/tit
200.414(f) award agreement with U.S. Treasury, subrecipients are le-2/subtitle-A/chapter-II/part-
permitted to charge both direct and indirect costs to 200/subpart-E/subject-group-
U.S.Treasury their subaward as administrative costs.If a subrecipient ECFRd93f2a98b1f6455/sectio
CSFRF has a current Negotiated Indirect Costs Rate Agreement n-200.414
Financial ("NICRA") established with a Federal cognizant
Assistance agency responsible for reviewing, negotiating, and https://home.treasury.gov/syste
Agreement— approving cost allocation plans or indirect cost m/files/136/Financial-
States& proposals, then they may use their current NICRA. Assistance-Agreement-States-
Territories Subrecipients who wish to use their NICRA will need and-Territories.pdf
to send a copy of it to NC DEQ. If a subrecipient does (See term#6)
not have a NICRA,they may use the de minimis rate of
10 percent of the modified total direct costs pursuant to
2 C.F.R. § 200.414(f).
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Conflicts of 2 C.F.R. § Subrecipients are required to maintain a conflict-of- https://www.ecfr.gov/current/tit
Interest 200.112 interest policy consistent with 2 C.F.R. § 200.318(c) le-2/subtitle-A/chapter-II/part-
and, if applicable, N.C. Gen. Stat. § 14-234. The 200/subpart-B/section-200.112
2 C.F.R. § conflict-of-interest policy will be applicable to each
200.318(c) activity funded under their ARPA/SFRF subaward. https://www.ecfr.gov/current/tit
Subrecipients who are neither local government units le-2/subtitle-A/chapter-II/part-
N.C. Gen. Stat. nor public authorities will be required to provide a copy 200/subpart-D/subject-group-
§ 14-234 of their conflict-of-interest policy for management ECFR45ddd4419ad436d/sectio
employees and their governance body to NC DEQ. Per n-200.318
U.S.Treasury 2 C.F.R. § 200.112, subrecipients will also need to
CSFRF disclose in writing to NC DEQ any potential conflicts https://www.ncleg.net/Enacted
Financial of interest affecting the awarded funds. Legislation/Statutes/HTML/By
Assistance Section/Chapter 14/GS_14-
Agreement— 234.html
States&
Territories https://home.treasury.gov/syste
m/files/136/Financial-
Assistance-Agreement-States-
and-Territories.pdf
(See Term#8)
Publications U.S.Treasury If a subrecipient produces a publication using funds https://home.treasury.gov/syste
CSFRF from their ARPA subaward, they must display the m/files/136/Financial-
Financial following language: "This project is being (or was) Assistance-Agreement-States-
Assistance supported,in whole or in part,by Coronavirus State and and-Territories.pdf
Agreement— Local Recovery Funds, federal award SLFRP0129, (See term#13)
States& awarded to the State of North Carolina by the U.S.
Territories Department of Treasury." This requirement is
contained in the terms and conditions of NC DEQ's
award agreement with U.S. Treasury.
Maintenance of U.S.Treasury Pursuant to the terms and conditions of NC DEQ's https://home.treasury.gov/syste
and Access to CSFRF award agreement with U.S. Treasury and the relevant m/files/136/Financial-
Records Financial Uniform Guidance requirements, subrecipients must Assistance-Agreement-States-
Assistance preserve and provide access to their programmatic and and-Territories.pdf
Agreement— financial records related to their ARPA-funded (See term#4)
States& projects, including:
Territories a. records providing a full description of each https://www.ecfr.gov/current/tit
activity undertaken; le-2/subtitle-A/chapter-II/part-
2 C.F.R. §§ b. records demonstrating that each 200#subject-group-
200.334-38 activity undertaken meets the ECFR4acc10e7e3b676f
objectives of the federal program and
state appropriation and related
documentation;
c. records required to determine the
allowability of costs;
d. records required to document the
acquisition, improvement, use or
disposition of real property acquired
or improved with the assistance;
e. records documenting compliance
with federal and local laws; and
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
f. financial records required by program
regulations and Uniform Guidance.
In accordance with the terms and conditions of NC
DEQ's award agreement with U.S. Treasury,
subrecipients will be required to maintain records for at
least five years after all funds have been expended or
returned to U.S. Treasury, whichever is longest.
Subrecipients will be required to make all records,
books, papers, and other documents that relate to their
ARPA subaward available at all reasonable times for
inspection, review, and audit by the authorized
representatives of NC DEQ, the North Carolina State
Auditor, U.S. Treasury, the U.S. Government
Accountability Office,and any other authorized state or
federal oversight office.
Nondiscrimination U.S.Treasury Subrecipients of ARPA/SFRF funding are subject to the https://home.treasury.gov/syste
CSFRF following laws and regulations that prohibit m/files/136/Financial-
Financial discrimination in federal financial assistance programs: Assistance-Agreement-States-
Assistance a. Title VI of the Civil Rights Act of 1964, as and-Territories.pdf
Agreement— amended (42 U.S.C. § 2000d), and U.S. (See term#9(c))
States& Treasury's implementing regulations, 31
Territories C.F.R. Part 22.
b. The Fair Housing Act and Title VIII of the
Civil Rights Act of 1968 (42 U.S.C. § 3601).
c. Section 504 of the Rehabilitation Act of 1973,
as amended(29 U.S.C. § 794).
d. The Age Discrimination Act of 1975, as
amended (42 U.S.C. § 6101), and U.S.
Treasury's implementing regulations, 31
C.F.R. Part 23.
e. Title II of the Americans with Disabilities Act
of 1990, as amended(42 U.S.C. § 12101).
The above require that no person shall, on the basis of
race, color, national origin (including limited English
proficiency), sex (including sexual orientation and
gender identity), age, or disability be excluded from
participation in, be denied the benefits of, or be
otherwise subjected to discrimination under any
program for which subrecipients receive ARPA/SFRF
funding. The above also require that subrecipients
adopt and enact nondiscrimination policies consistent
with those requirements.
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
The Uniform 2 C.F.R. Part Subrecipients are responsible for complying with the https://www.ecfr.gov/current/tit
Guidance 200 Uniform Administrative Requirements, Cost le-2/subtitle-A/chapter-II/part-
Principles, and Audit Requirements for Federal 200
2 C.F.R. Part Awards,2 C.F.R.Part 200,as adopted by U.S.Treasury
1000 in its implementing regulations,2 C.F.R.Part 1000,and https://www.ecfr.gov/current/tit
as set forth in the SLFRF Assistance Listing (ALN le-2/subtitle-B/chapter-X/part-
Assistance 21.027). The Uniform Guidance provisions that apply 1000
Listing Number to ARPA/SFRF subawards are as follows:
21.027 • Subpart A,Acronyms and Definitions https://sam.gov/fal/7cecfdef62d
• Subpart B, General Provisions c42729a3fdcd449bd62b8/view
• Subpart C, Pre-Federal Award Requirements
and Contents of Federal Awards
o The following do not apply to SLFRF
funds:2 C.F.R. §§200.204,.205, .210,
& .213
• Subpart D,Post Federal Award Requirements
o The following do not apply to SLFRF
funds: 2 C.F.R. §§ 200.305(b)(8) &
(9), .308, .309, & .320(c)(4)
• Subpart E, Cost Principles
• Subpart F,Audit Requirements
• 2 C.F.R.Part 25(Universal Identifier&System
for Award Management)
• 2 C.F.R. Part 170 (Reporting Subaward and
Executive Compensation Information)
• 2 C.F.R.Part 180(Debarment and Suspension)
Prohibition on 2 CFR§ Pursuant to 2 C.F.R. § 200.216, subrecipients cannot https://www.ecfr.gov/current/tit
Certain 200.216, obligate or expend ARPA funds to: (1) procure or le-2/subtitle-A/chapter-II/part-
Telecommunication obtain; (2) extend or renew a contract to procure or 200/subpart-C/section-200.216
and Video obtain; or(3) enter into a contract (or extend or renew
Surveillance a contract)to procure or obtain equipment, services, or
Services or systems that use covered telecommunications
Equipment equipment or services(as described in Public Law 115-
232, Section 889) as a substantial or essential
component of any system,or as a critical technology as
part of any system.
Procurement N.C. Gen. Stat. Subrecipients are subject to applicable state https://www.ncleg.gov/Enacted
§ 143-64.31 procurement requirements while carrying out the Legislation/Statutes/PDF/ByAr
federal award, including N.C. Gen. Stat. § 143-64.31, ticle/Chapter_143/Article_3D.p
N.C. Gen. Stat. Article 3D(Procurement of Architectural,Engineering, df
§ 143-64.32 and Surveying(A/E) Services).N.C. Gen. Stat. § 143-
64.32 cannot be used to exempt funding recipients from
2 C.F.R. §§ a qualification-based selection for A/E. https://www.ecfr.gov/current/tit
200.317-27 le-2/subtitle-A/chapter-II/part-
In addition to state procurement requirements,subrecipients are subject to the Uniform Guidance 200#subject-group-
procurement provisions as contained in 2 C.F.R. §§ ECFR45ddd4419ad436d
200.317-27. Consistent with these requirements,
subrecipients are required to adopt and enact their own
internal procurement procedures. Standards for those
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
procedures include, but are not limited to, the
following:
a. All procurement transactions for property or
services must be conducted in a manner
providing full and open competition,consistent
with standards outlined in 2 C.F.R. §
200.320(c)(1), (2), (3), and (5), which allows
for non-competitive procurements only if
either(1)the item is below the micro-purchase
threshold; (2)the item is only available from a
single source; (3) the public exigency or
emergency will not permit a delay from
publicizing a competitive solicitation; or (4)
after solicitation of a number of sources,
competition is determined inadequate.
b. Subrecipients must maintain oversight to
ensure that their contractors perform in
accordance with the terms, conditions, and
specifications of their contracts or purchase
orders.
c. Pursuant to 2 C.F.R. § 200.321, subrecipients
must take all necessary affirmative steps to
assure that minority businesses, women's
business enterprises, and labor surplus area
firms are used when possible.
d. Subrecipients must "maintain records
sufficient to detail the history of procurement.
These records will include but are not
necessarily limited to the following: rationale
for the method of procurement, selection of
contract type, contractor selection or rejection,
and the basis for the contract price."2 C.F.R. §
200.318(i).
Mandatory 2 C.F.R. § Under 2 C.F.R. §200.327, subrecipients are required to https://www.ecfr.gov/current/tit
Contract 200.327 include certain contract provisions in their agreements le-2/subtitle-A/chapter-II/part-
Provisions with contractors and subcontractors to carry out the 200/subpart-D/subj ect-group-
2 C.F.R. Part work required for their ARPA subaward. These may ECFR45ddd4419ad436d/sectio
200,Appendix include but are not limited to provisions concerning: n-200.327
II • Administrative, contractual, or legal remedies
where contractors violate or breach contract https://www.ecfr.gov/current/tit
U.S.Treasury terms le-2/subtitle-A/chapter-II/part-
Final Rule FAQ • Termination of the contract for cause and for 200/appendix-
convenience,including the manner by which it Appendix%20II%20to%20Part
will be effected and the basis for settlement. %20200
• Equal Employment Opportunity
• Contract Work Hours and Safety Standards https://home.treasury.gov/syste
Act(40 U.S.C. 3701-3708) m/files/136/SLFRF-Final-
• Procurement of Recovered Materials(2 C.F.R. Rule-FAQ.pdf
§ 200.323) (See section#6.15)
• Domestic Preferences for Procurement (2
C.F.R. § 200.322)
• Prohibition on certain telecommunications and
video surveillance services or equipment (2
C.F.R. § 200.216)
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
• Debarment and Suspension (Executive Orders
12549 and 12689)
• Byrd Anti-Lobbying Amendment (31 U.S.C.
1352)
• Clean Air Act and the Federal Water Pollution
Control Act (42 U.S.C. 7401-7671q and 33
U.S.C. 1251-1387)
Per U.S. Treasury guidance in the SLFRF Final Rule
FAQ, Davis-Bacon Act requirements do not apply to
projects funded solely with ARPA/SFRF funds. Such
projects will not have to include a provision regarding
the Davis-Bacon Act in their agreements with
contractors or subcontractors that may otherwise be
required under 2 C.F.R. § 200.327.
Equipment& 2 C.F.R. §§ All real property acquired or improved,and equipment https://www.ecfr.gov/current/tit
Property 200.310-16 or supplies purchased in whole or in part with ARPA le-2/subtitle-A/chapter-II/part-
Management funds must be used,insured,managed,and disposed of 200/subpart-D
in accordance with 2 C.F.R. §§ 200.310-16.
Closeout 2 C.F.R. § Closeout must comply with applicable requirements of eCFR :: 2 CFR 200.344 --
200.344 2 C.F.R. § 200.344, including the requirement that Closeout.
subrecipients must, no later than ninety (90) calendar
days after the end of the period of performance, submit
to NC DEQ all required financial, performance, and
other reports. Subrecipients must also promptly refund
any unobligated cash that they are not authorized to
retain for use in other projects.
Completion of closeout does not release subrecipients
from their obligations under state and federal
compliance, legal, and regulatory requirements.
Subrecipients will continue to be subject to post-
closeout adjustments and continuing responsibilities in
accordance with 2 C.F.R. § 200.345.
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Universal Identifier 2 C.F.R. Part In accordance with 2 C.F.R. Part 25, subrecipients are https://www.ecfr.gov/current/tit
and System for 25 required to obtain, and provide to NC DEQ, a Unique le-2/subtitle-A/chapter-I/part-
Award Entity Identifier assigned by the SAM. 25
Management
(SAM)
Debarment& 2 C.F.R. Part In accordance with 2 C.F.R. Part 180, and U.S. https://www.ecfr.gov/current/tit
Suspension 180 Treasury's implementing regulations at 31 C.F.R. Part le-2/subtitle-A/chapter-I/part-
19, subawards may not be issued to anyone listed on 180
31 C.F.R. Part the govemmentwide exclusions in the SAM.
19 https://www.ecfr.gov/current/tit
le-31/subtitle-A/part-19
FFATA Required 2 C.F.R. Part Subrecipients will be required to provide NC DEQ with https://www.ecfr.gov/current/tit
Executive 170 information sufficient to allow us to meet our reporting le-2/subtitle-A/chapter-I/part-
Compensation obligations under the Federal Funds Accountability and 170
Information Transparency Act (FFATA), which requires public
disclosure of executive compensation in certain
federally funded organizations. NC DEQ will be
required to report the names and total compensation of
each of Subrecipient's five most highly compensated
executives for the preceding completed fiscal year, if:
1) In Subrecipient's preceding fiscal year, the
subgrantee received:
i. 80 percent or more of its annual gross
revenues from Federal procurement
contracts (and subcontracts) and
Federal financial assistance subject to
the Transparency Act, as defined at 2
C.F.R. 170.320(and subawards); and
ii. $25,000,000 or more in annual gross
revenues from Federal procurement
contracts (and subcontracts), and
Federal financial assistance subject to
the Transparency Act(and subawards)
2) The public does not have access to information
about the compensation of the executives
through periodic reports filed under section
13(a)or 15(d)of the Securities Exchange Act of
1934 (15 U.S.C. 78m(a), 78o(d)) or section
6104 of the Internal Revenue Code of 1986. (To
determine if the public has access to the
compensation information, see the U.S.
Security and Exchange Commission total
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
compensation filings at
http://www.sec.gov/answers/execomp.htm).
New Restrictions 31 C.F.R. Part Subrecipients are subject to the restrictions on lobbying https://www.ecfr.gov/current/tit
on Lobbying 21 in 31 C.F.R. Part 21. Pursuant to this regulation, le-31/subtitle-A/part-21
subrecipients cannot use federal funds to pay any
person to influence or attempt to influence an officer or
employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a
Member of Congress in connection with any of the
following covered federal actions: the awarding of any
federal contract, the making of any federal grant, the
making of any federal loan, the entering into of any
cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of
any federal contract, grant, loan, or cooperative
agreement. Subrecipients will be required to submit a
certification in writing that they have not made, and
will not make, any payments prohibited under these
requirements. NC DEQ will provide the necessary
certification form.
Uniform 42 U.S.C. §§ Any acquisition of real property by a subrecipient using https://uscode.house.gov/view.
Relocation and 4601-55 ARPA funds must comply with the applicable xhtml?path=/prelim%40tit1e42/
Real Property provisions of the Uniform Relocation and Real chapter6l&edition=prelim
Acquisition Policies Property Acquisition Policies Act of 1970 (42 U.S.C.
Act §§ 4601-55), as amended. Subrecipients will have to
certify in writing that they have or will have a fee
simple or such other estate or interest in the site of the
project, including necessary easements and rights-of-
way, to assure undisturbed use and possession for the
purpose of construction and operation for the estimated
life of the project.NC DEQ will provide the necessary
certification form.
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
U.S.Treasury U.S.Treasury Projects with a total cost of$10,000,000 or more must https://home.treasury.gov/syste
Wage and Labor SLFRF meet U.S. Treasury requirements for prevailing wage m/files/136/SLFRF-
Requirements Compliance& rates, project labor agreements, and related Compliance-and-Reporting-
Reporting requirements. Subrecipients can either certify meeting Guidance.pdf
Guidance the requirements or provide plans and reports as the (See page 31)
SLFRF Compliance and Reporting Guidance specifies.
Whistleblower 41 U.S.C. § These protections require subrecipients to: inform https://www.govinfo.gov/app/d
Protections 4712 employees working on any federal award that they are etails/USCODE-2022-
subject to the whistleblower rights and remedies of the title41/USCODE-2022-title4l-
U.S.Treasury program; inform employees in writing of employee subtitlel-divsnC-chap47-
CSFRF whistleblower protections under 41 U.S.C. § 4712 in sec4712
Financial the predominant native language of the workforce; and
Assistance include such requirements in any agreement made with https://uscode.house.gov/view.
Agreement— subcontractors or subgrantees. xhtml?req=(title:41%20section
States& :4712%20edition:prelim)
Territories
https://home.treasury.gov/syste
m/files/136/Financial-
Assistance-Agreement-States-
and-Territories.pdf
(See term#16)
Clean Air Act& Clean Air Act For subawards in excess of$150,000,subrecipients are https://uscode.house.gov/view.
Federal Water (42 U.S.C. required to comply with all applicable standards, xhtml?req=granuleid%3AUSC
Pollution Control 7401-7671q) orders, or regulations issued pursuant to the Clean Air -prelim-title42-
Act Federal Water Act(42 U.S.C. §§ 7401-7671q) and the Federal Water chapter85&saved=%7CKHRpd
Pollution Pollution Control Act,as amended(33 U.S.C. §§ 1251— Gx1OjQyIHN1Y3Rpb246NzQ
Control Act as 1387). wMSBIZGl0aW9uOnByZWxp
amended(33 bSk%3D%7C%7C%7C0%7Cf
U.S.C. 1251— alse%7Cprelim&edition=preli
1387). m
https://uscode.house.gov/view.
xhtml?path=/prelim@title33/ch
apter26&edition=prelim
Governmentwide Drug-Free ARPA/SFRF subrecipients are subject to the provisions https://uscode.house.gov/view.
Requirements for Workplace Act of the Drug-Free Workplace Act of 1988 (41 U.S.C. § xhtml?req=granuleid:USC-
Drug-Free of 1988 (41 701, as amended) that apply to grants and other 2000-title4l-
Workplace U.S.C. 701 et financial assistance awards, as well as U.S. Treasury's section701&num=0&edition=2
seq., as implementing regulations, 31 C.F.R. Part 20. 000
amended)
https://www.ecfr.gov/current/tit
31 C.F.R. Part le-31/subtitle-A/part-20
20
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Hatch Act Hatch Act(5 ARPA/SFRF subrecipients are subject to the applicable https://uscode.house.gov/view.
U.S.C. §§ requirements of the Hatch Act (5 U.S.C. §§ 1501-08 xhtml?path=/prelim@title5/par
1501-08 and and 7324-28),which limit certain political activities of t2/chapterl5&edition=prelim
7324-28) State or local government employees whose principal
employment is in connection with an activity financed https://uscode.house.gov/view.
in whole or in part by this federal assistance. xhtml?req=granuleid%3AUSC
-prelim-title5-
chapter73&edition=prelim
Other State N.C. General Use of these funds is subject to applicable state laws https://www.ncleg.net/Enacted
Requirements Statutes and regulations including, but not limited to, N.C. Legislation/Statutes/PDFByCh
Chapters 159, General Statutes Chapters 159 (Local Government apter/Chapter_159.pdf
159G, 143C Finance) and 159G (Water Infrastructure).
Subrecipients who are neither local government units
09 N.C.Admin. nor public authorities must also comply with applicable https://www.ncleg.gov/enactedl
Code 03M requirements of the State Budget Act and Title 09, egislation/statutes/html/bychap
Subchapter 03M of the N.C.Administrative Code. ter/chapter_159g.html
https://www.ncleg.gov/Laws/G
eneral S tatute S ections/Chapter l
43C
http://reports.oah.state.nc.us/nc
ac/title%2009%20-
%20governor%20and%201t.%2
Ogovernor/chapter%2003%20-
%20state%20budget%20and%
20management/subchapter%20
m/subchapter%20m%20ru1es.p
df
Distressed Units N.C. Gen. Stat. Local government units designated as distressed must https://www.ncleg.gov/Enacted
§ 159G-45(b). complete associated requirements of N.C. Gen. Stat. Legislation/Statutes/PDF/BySe
§159G-45(b). ction/Chapter_159G/GS_159G
-45.pdf
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Subrecipient 2 C.F.R. §§ Pursuant to 2 C.F.R. §§ 200.331-33, subrecipients will https://www.ecfr.gov/current/tit
Monitoring and 200.331-33 be subject to monitoring and management by the pass- le-2/subtitle-A/chapter-II/part-
Management through entity, NC DEQ. NC DEQ will monitor, 200/subpart-D/subject-group-
NC DEQ's evaluate, and provide guidance and direction to ECFRO31321 e29ac5bbd/sectio
Subaward and subrecipients as they carry out project activities. NC n-200.331
Monitoring DEQ is required by U.S.Treasury to determine whether
Policy subrecipients have spent funds in accordance with https://www.ecfr.gov/current/tit
applicable laws, regulations, and agreements and will le-2/subtitle-A/chapter-II/part-
monitor subrecipients' activities to ensure they have 200/subpart-D/subject-group-
met such requirements. If deficiencies are found, ECFRO31321e29ac5bbd/sectio
subrecipients may be asked to take corrective action. n-200.332
The type and degree of monitoring activities depends
on the results of the Subrecipient Risk Assessment. https://www.ecfr.gov/current/tit
Subrecipients are subject to the following procurement le-2/subtitle-A/chapter-II/part-
monitoring activities by NC DEQ: 200/subpart-D/subj ect-group-
ECFRO31321 e29ac5bbd/sectio
• NC DEQ review of solicitations. n-200.333
o Except for micro-purchases made
pursuant to 2 C.F.R. §200.320(a)(1)or
procurements by small purchase
procedures pursuant to 2 C.F.R. §
200.320(a)(2),if a subrecipient wishes
to enter into a contract to carry out an
approved activity under their
subaward, then the subrecipient will
have to send NC DEQ a copy of the
applicable solicitation (whether
competitive or non-competitive) at
least fifteen (15) days prior to the
publication or communication of the
solicitation.
o Consistent with 2 C.F.R. § 200.325,
NC DEQ may review any solicitation
for compliance with applicable
procurement standards.
• NC DEQ review of contracts.
o Except for micro-purchases pursuant
to 2 C.F.R. § 200.320(a), if a
subrecipient wishes to enter into a
contract to carry out an approved
activity under their subaward,then the
subrecipient will have to send NC
DEQ a copy of the written contract
prior to contract execution.
o Consistent with 2 C.F.R. § 200.325,
NC DEQ may review any unexecuted
contract for compliance with the
procurement standards outlined in 2
C.F.R. §§ 200.318-27 as well as 2
C.F.R. § 200.327.
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Interventions 2 C.F.R. § If NC DEQ determines that a subrecipient is not in https://www.ecfr.gov/current/tit
200.208 compliance with procurement requirements, NC DEQ le-2/subtitle-A/chapter-II/part-
may initiate an intervention, in accordance with 2 200/subpart-C/section-200.208
2 C.F.R. § C.F.R. § 200.208 and 2 C.F.R. § 200.339. The degree
200.339 of a subrecipient's performance or compliance https://www.ecfr.gov/current/tit
deficiency will determine the degree of intervention. le-2/subtitle-A/chapter-II/part-
200/subpart-D/subj ect-group-
ECFR86b76dde0e 1 e9dc
Reporting U.S.Treasury Subrecipients are required to send NC DEQ reports and https://home.treasury.gov/syste
Requirements Compliance back-up data,including reports which enable NC DEQ m/files/136/SLFRF-
and Reporting to meet its own reporting obligations to U.S. Treasury Compliance-and-Reporting-
Guidance and as otherwise required by state law. The frequency Guidance.pdf
of reporting will be consistent with the DEQ
N.C. Sess. L. Subrecipient Monitoring Plan.
2021-180 https://www.ncleg.gov/enactedl
egislation/sessionlaws/html/20
NC DEQ 21-2022/s12021-180.html
Subaward
Monitoring
Plan
Audit 2 C.F.R. Part Subrecipients that expend more than $750,000 in https://www.ecfr.gov/current/tit
Requirements 200, Subpart F federal awards during their fiscal year, with the le-2/subtitle-A/chapter-II/part-
exception of local governments who choose to undergo 200/subpart-F
an Alternative Compliance Examination Engagement,
09 NCAC 03M will be subject to an audit under the Single Audit Act
.0205(a)(3) and and 2 C.F.R. Part 200, Subpart F. Subrecipients that https://files.nc.gov/ncgov/docu
(b)(4) receive less than $750,000 in federal awards during ments/files/ncpro/XX-XX-
their fiscal year are exempt from federal audit Attachment-B-09-NCAC-
requirements (except as noted in 2 C.F.R. § 200.503), 03M.pdf
2 C.F.R. § but may still be subject to state audit requirements as
200.503 discussed below. Subrecipients exempt from federal
audit requirements are still required to retain and https://www.ecfr.gov/current/tit
provide records for review or audit upon request by the le-2/subtitle-A/chapter-II/part-
federal agency, the state, or the Government 200/subpart-F/subject-group-
Accountability Office. ECFRfd0932e473d10ba/sectio
Subrecipients who are neither local governments nor n-200.503
public authorities and receive$500,000 or more in state
financial assistance using federal funds are required to
provide a single or program-specific audit to the
Department of the State Treasurer, or to NC DEQ upon
request pursuant to 09 N.C. Admin. Code
03M.0205(a)(3) and (b)(4). Subrecipient local
governments and public authorities who expend
$500,000 or more in state financial assistance are also
required to have a single audit performed pursuant to
N.C. Gen. Stat. § 159-34.
Water Infrastructure Grants Legal Requirements Quick Reference Guide_v0.1

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
NC DEQ Division of Water Infrastructure
Professional Engineering Services Procurement
Section 602(b)(14) of the Clean Water Act requires projects receiving Clean Water State Revolving Fund funding
to comply with engineering procurement guidelines. North Carolina Session Law 2021-180 authorizes the
Division of Water Infrastructure (Division)to award grant funds from the American Rescue Plan Act (ARPA)State
Fiscal Recovery Fund for drinking water,wastewater, and stormwater infrastructure projects.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.
To comply,you must follow North Carolina General Statute 143-64.31,Article 3D Procurement of Architectural,
Engineering, and Surveying Services. You cannot exempt yourself using NCGS 143-64.32. Complete and sign this
form and provide the information indicated to ensure that engineering services for your project are eligible for
reimbursement.
Applicant: Click or tap here to enter text.
Project Name: Click or tap here to enter text.
Division Funding Number: Click or tap here to enter text.
1) List the basic services being provided: (i.e., planning, design, inspection etc.)
Click or tap here to enter text.
2) Describe the method of announcement for the project.
Click or tap here to enter text.
3) List the firms the announcement was discussed with or that proposals were received from in order of
quality.
Click or tap here to enter text.
4) Was a contract negotiated with the best qualified firm? ❑ Yes ❑ No (Check one)
If no, explain why.
Click or tap here to enter text.
NOTE: Documentation of Qualification-Based-Selection of Engineering Services shall be provided to the Division
upon request (to include announcement and qualifications requested).
By signing below, I Click or tap here to enter text.,the Authorized Representative designated for this project in
the project application, attest that the contract pricing, as seen in the attached contract(s), contains pricing that
is fair and reasonable based on scope, complexity, professional nature, and the estimated value of the services
being provided and the firm selected,was selected based on their qualifications.
(signed name,title and date)
(DWI staff use only—Check and initial here if debarment status checked and firm is NOT debarred ❑
PESP 02/18/22

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
Clean Water Act, (14)a contract to be carried out using funds directly made available by a capitalization grant
Section 602(b)(14) under this title for program management,construction management, feasibility studies,
preliminary engineering, design, engineering, surveying,mapping, or architectural related
services shall be negotiated in the same manner as a contract for architectural and
engineering services is negotiated under chapter 11 of title 40,United States Code, or an
equivalent State qualifications-based requirement(as determined by the Governor of the
State).
From: water_resources_reform_and_development_act_guidance.pdf(epa.gov)
The requirements of 40 U.S.C. 1101 et seq. are:
• Public announcement of the solicitation (e.g., a Request for Qualifications);
• Evaluation and ranking of the submitted qualifications statements based on established,
publicly available criteria (e.g., identified in the solicitation); o Evaluation criteria should
be based on demonstrated competence and qualification for the type of professional
services required(e.g.,past performance, specialized experience, and technical
competence in the type of work required);
• Discussion with at least three firms to consider anticipated concepts and compare
alternative methods for furnishing services;
• Selection of at least three firms considered to be the most highly qualified to provide the
services required; and
• Contract negotiation with the most highly qualified firm to determine compensation that is
fair and reasonable based on a clear understanding of the project scope, complexity,
professional nature, and the estimated value of the services to be rendered;
• In the event that a contract cannot be negotiated with the most highly qualified
firm, negotiation continues in order of qualification.
Uniform Guidance Competition.
2 CFR 200.319(b)
The non-Federal entity must conduct procurements in a manner that prohibits the use of
statutorily or administratively imposed state or local geographical preferences in the
evaluation of bids or proposals, except in those cases where applicable Federal statutes
expressly mandate or encourage geographic preference.Nothing in this section preempts
state licensing laws.When contracting for architectural and engineering(A/E)services,
geographic location may be a selection criterion provided its application leaves an
appropriate number of qualified firms,given the nature and size of the project,to compete for
the contract.
NC General Procurement of Architectural,Engineering,and Surveying Services(NC "Mini-
Statute 143-64.31 Brooks")
...It is the public policy of this State... and Local Governmental Units...,to announce all
requirements for architectural, engineering, surveying, construction management at risk
services, design-build services,...,to select firms qualified to provide such services on the
basis of demonstrated competence and qualification for the type of professional services
required without regard to fee other than unit price information at this stage, and thereafter to
negotiate a contract for those services at a fair and reasonable fee with the best qualified firm.
If a contract cannot be negotiated with the best qualified firm,negotiations with that firm
shall be terminated and initiated with the next best qualified firm. ...
PESP 02/18/22

Docusign Envelope ID:7BD68EAB-33B9-44FE-9F6C-8B6538D0632C
NC General NOTE: CWSRF and ARPA funding: NCGS 143-64.32 cannot be used to exempt a local
Statute 143-64.32 government unit from abiding by NCGS 143-63.31. This is because there is no minimum
dollar exemption allowed in the Federal Brooks Act,the Clean Water Act Section
602(b)(14), or 2 CFR 200.319.
Written exemption of particular contracts.
Units of local government or the North Carolina Department of Transportation may in
writing exempt particular projects from the provisions of this Article in the case of proposed
projects where an estimated professional fee is in an amount less than fifty thousand dollars
($50,000). (1987, c. 102, s. 2; 2013-401,s. 2.)
21 NCAC SECTION .0700—RULES OF PROFESSIONAL CONDUCT, adopted in accordance with NC
56.0701(f) General Statute 89C-20 (Board Rules for Professional Engineers, etc.)
(f)A licensee shall solicit or accept work only on the basis of qualifications and:
(1) Shall not offer to pay, either directly or indirectly, any commission, political
contribution, gift, or other consideration in order to secure work, exclusive of securing
salaried positions through employment agencies;
(2) Shall compete for employment on the basis of professional qualification and
competence to perform the work.The licensee shall not solicit or submit proposals for
professional services containing a false,fraudulent, misleading, deceptive or unfair
statement or claim regarding the cost, quality or extent of services to be rendered;
(3) Shall,with regard to fee bidding on public projects, comply with the provisions of G.S.
143-64.31 et seq., (or for federal projects,the Brooks Act, 40 U.S. Code 541 et seq.) and
shall not knowingly cooperate in a violation of any provision of G.S. 143-64.31 et seq. (or
of 40 U.S. Code 541 et seq.);
PESP 02/18/22

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NC DEQ Division of Water Infrastructure Guidance on
ARPA-Funded Projects and Engineering Services Procurement
February 28, 2022
North Carolina Session Law 2021-180 authorizes the Division of Water Infrastructure (Division)to award
American Rescue Plan Act(ARPA) State Fiscal Recovery Fund grants for drinking water,wastewater, and
stormwater infrastructure projects.The guidance herein only refers to the projects funded from the
ARPA State Fiscal Recovery Fund administered by the Division of Water Infrastructure.
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.
ARPA-funded projects must also adhere to North Carolina state law, specifically NC General Statute 143-
64.31,Article 3D Procurement of Architectural, Engineering, and Surveying (A/E) Services. NCGS 143-
64.32 cannot be used to exempt funding recipients from a qualification-based selection for A/E.
The following guidelines will be used by the Division for A/E procurement for ARPA-funded projects:
(1) This guidance does not exempt recipients of ARPA funds from meeting current or future
requirements or guidance provided by the U.S.Treasury.
(2) Towns/Counties/Authorities (local government units, or LGUs) must select their Engineering
Services (A/E)via a competitive qualification-selection-based (QSB) procurement process.
(3) This QSB process may take place before or after the ARPA Request-for-funding form or funding
application is sent to the Division.
(4) Each LGU must document the QSB selection process for the A/E firm using the attached
Certification Form. (See attached Certification form for A/E Firms). The RFQ announcement and
selection process documentation must be made available to the Division upon request.
(5) If an A/E firm assists a LGU in creating the RFQ or in evaluating responses to the RFQ for a LGU,
this A/E firm is disqualified from responding to the RFQ itself.
(6) Preparing a cost estimate to be used in a Division ARPA Request-for-Funding Form or an
Application for funding does not disqualify an A/E firm from responding to a future RFQ for the
project.
Please note that the above interpretation will be followed regardless of whether the A/E Services are
funded using ARPA funds or other funds (such as local funds)for an ARPA-funded construction project.
Please also note that the above interpretation will be used for all ARPA-funded projects administered
through the Division of Water Infrastructure, including those directly appropriated in S.L. 2021-180.

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ARPA-Funded Projects and Design-Build Method of Construction Delivery
The Uniform Guidance 2 CFR 200.317 through 2 CFR 200.327 gives minimum requirements for
procurement,with 2 CFR 200.320(b)(2)(iv) establishing that qualification-based selection (without price
consideration) can only be used in A/E procurement. By contrast, according to Uniform Guidance,
Design-Build procurement must additionally include price in the procurement process.
North Carolina General Statute § 143-128.1A authorizes a local government unit to contract with a
single-entity Design-Builder to perform both engineering services and general contracting services.This
procurement selection process is qualification-based alone.
SECTION 1.6. Part V of S.L. 2021-180 amended NCGS§ 143-128.1A(c)(5)to additionally add pricing into
the selection criteria for Design-Builders (see table below). This new amendment thereby aligns NCGS
Design-Build procurement law with the Uniform Guidance.
For ARPA-funded projects in North Carolina,the procurement process,while including qualifications-
based selection, must also include price.
The following guidelines will be used by the Division for Design-Build procurement for ARPA-funded
projects:
(1) This guidance does not exempt recipients of ARPA funds from meeting current or future
requirements or guidance provided by the U.S.Treasury.
(2) Towns/Counties/Authorities (local government units, or LGUs) can select a Design-Build delivery
method if they choose. The selection of the Design-Builder must adhere to both Uniform
Guidance (2 CFR 200) in addition to NCGS§ 143-128.1A and the amendment to NCGS § 143-
128.1A(c)(5). The selection must be according to a competitive qualification-selection-based
(QSB) procurement process, which includes price.
(3) This Design-Builder selection process may take place before or after the ARPA Request-for-
Funding form or a Funding Application is sent to the Division.
(4) Each LGU must document the Design-Builder selection process using the attached Certification
Form. (See attached Certification form for Design-Build). The RFQ announcement and selection
process documentation must be made available to the Division upon request.
(5) If an A/E firm assists an LGU in creating the RFQ or evaluating responses to the RFQ for an LGU,
this A/E firm is disqualified from responding to the RFQ itself(i.e., being part of a Design-Builder
Team, which responds to the RFQ).
(6) Preparing a cost estimate to be used in a Division Request-for-Funding Form or an Application for
funding does not disqualify an A/E firm from responding to a future RFQ for the project.
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Uniform Guidance Methods of procurement to be followed
2 CFR 200.320(b)
(2) Proposals
(i) Requests for proposals must be publicized and identify all evaluation factors and their relative
importance.Proposals must be solicited from an adequate number of qualified offerors. Any
response to publicized requests for proposals must be considered to the maximum extent
practical;
(ii) The non-Federal entity must have a written method for conducting technical evaluations of the
proposals received and making selections;
(iii) Contracts must be awarded to the responsible offeror whose proposal is most advantageous to
the non-Federal entity,with price and other factors considered; and
(iv) The non-Federal entity may use competitive proposal procedures for qualifications-based
procurement of architectural/engineering(A/E)professional services whereby offeror's
qualifications are evaluated and the most qualified offeror is selected, subject to negotiation of
fair and reasonable compensation. The method,where price is not used as a selection factor,can
only be used in procurement of A/E professional services. It cannot be used to purchase other
types of services though A/E firms that are a potential source to perform the proposed effort.
SECTION 1.6.Part DESIGN-BUILD CONTRACTS USING CERTAIN FEDERAL FUNDS
V of S.L.2021-180 SECTION
is amended by 5.17.(a) Notwithstanding any other provision of law,any unit of local government(unit)that
adding a new contracts for design-build services using federal funds subject to the procurement standards set
section to read as forth in 2 CFR Part 200(Uniform Guidance), in whole or in part,shall comply with either:
follows: (1)G.S. 143-128.1A in its entirety and all applicable federal requirements related to the use of
the federal funds.
(2)All of the following:
a.G.S. 143-128.1A(a), (b), (c),and (f). In satisfying the requirements of G.S. 143-
128.1A(c)(5),the public notice of the request for qualifications shall be issued at least 7
days before the date of the opening of proposals.The public notice shall identify all
selection criteria, including price, and the relative weight of the selection criteria.
b. If after the solicitation for design-builders not as many as three responses have been
received from qualified design-builders,the unit shall again solicit for design-builders. If
as a result of the second solicitation not as many as three responses are received,the
unit may make a selection as provided in sub-subdivision c.of this subdivision even
though fewer than three responses were received.
c.The unit shall select and commence contract negotiations with the design-builder whose
response is ranked most advantageous to the unit based on the selection factors
identified as provided in sub-subdivision a.of this subdivision. If a contract cannot be
negotiated with the highest ranked design-builder, negotiations with that design-builder
shall be terminated and negotiations shall be initiated with the next-highest ranked
design-builder.
d.All applicable federal requirements related to the use of the federal funds.
SECTION 5.17.(b)This section expires on December 31, 2025; provided, however,any design-build
contract executed pursuant to this section prior to December 31, 2025,shall be valid and the unit
may continue to make payments under the contract entered into prior to December 31, 2025,so
long as the contract was executed as provided in subsection (a)of this section.
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