HomeMy WebLinkAboutAgenda - 01-23-2014 - 6h 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: January 23, 2014
Action Agenda
Item No. 6-h
SUBJECT: McGowan Creek Sewer Interceptor Project—Acceptance of State Revolving
Fund Loan
DEPARTMENT: County Manager, Planning, PUBLIC HEARING: (Y/N) No
Finance, Asset Management
Services
ATTACHMENT(S): INFORMATION CONTACT:
1) State Loan Offer and Acceptance Michael Talbert, Manager's Office, (919)
Letter 245-2300
2) Resolution Accepting State Revolving John Roberts, Attorney, (919) 245-2318
Fund Loan Craig Benedict, Planning, (919) 245-
2592
Clarence Grier, Manager's Office/
Finance, (919) 245-2453
Kevin Lindley, Planning, (919) 245-2583
Jeff Thompson, AMS, (919) 245-2658
David Cannell, Finance, (919) 245-2651
PURPOSE: To consider:
• Approving and authorizing the Chair to sign the Resolution of Acceptance for the State
Revolving Fund (SRF) Loan for this project; and
• Authorizing the Manager to sign the State Loan Offer and Acceptance letter on behalf of
the Board of County Commissioners.
BACKGROUND: On March 13, 2012 the BOCC authorized staff to proceed with applying for a
State Revolving Fund (SRF) Loan to provide funding for this project. Orange County had
originally approached the State about paying for this project with proceeds from the SRF loan
used to pay for the Central Efland/North Buckhorn Sewer Project. However, the State
requested that the County apply for the McGowan project funding separately. Orange County
applied for a separate SRF loan in March 2012 and the unused money from the Central
Efland/North Buckhorn SRF loan that would have been used for this project was returned to the
State.
This project will allow the County to eliminate the McGowan Creek pump station by installing a
gravity sewer line to replace it. The new gravity sewer line will convey the wastewater that
previously flowed into the McGowan Creek pump station to the newly completed Brookhollow
pump station, which was designed to handle this future flow. Eliminating the McGowan Creek
pump station will lower the annual maintenance costs of the Efland Sewer System and take out
of service a 25 year-old pump station that would otherwise need refurbishing at an estimated
cost of over$450,000.
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The State has sent the County a State Loan Offer and Acceptance letter (Attachment 1) for the
SRF loan needed to finance the McGowan Creek Sewer Interceptor. In order to finalize the
loan process and make the money from the loan available, the signed letter and a signed
Resolution of Acceptance of the Loan (Attachment 2) must be returned to the State Division of
Water Infrastructure.
FINANCIAL IMPACT: The SRF Loan to fund the McGowan Creek Sewer Interceptor project is
in the amount of $774,904. The total funding allocation for the project is $832,718, including
the $774,904 from the loan and $57,814 in Article 46 sales tax proceeds as approved at the
November 5, 2013 regular Board meeting. The loan will function similar to a line of credit.
County staff will submit invoices periodically for the project, and the State will reimburse the
County using proceeds from the loan. The money borrowed is repaid over a 20 year period at
an annual interest rate of 2%. Repayment will not begin until the project is completed, so it will
begin in the upcoming fiscal year (2014-2015). The annual debt service for the loan will be
$47,390.59.
RECOMMENDATION(S): The Manager recommends that the Board:
1) Approve and authorize the Chair to sign the Resolution of Acceptance for the State
Revolving Fund (SRF) Loan for this project; and
2) Authorize the County Manager to sign the State Loan Offer and Acceptance letter on
behalf of the Board of County Commissioners.
Attachment 1 3
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER I N FRASTRU CTRE
State Loan or Grant Offer and Acceptance
This Offer must be accepted, if at all,within forty-five(45)days of receipt.
This Offer is made subject to the attached aandard Conditions and Assurances
Legal Name and Address of Award Reci pient Aocount
Orange County Clean Water Mate F;bvolving Fund (3:f)
P.O. Box 8181 Mate General Loan (SRI) ❑
Hillsborough, NC 27278 Mate Emergency Loan (,ql) ❑
High Unit Cost Grant (SRG) ❑
Technical Assistance Grant ❑
State Project Number: E SRF T-13-0336
Federal Project Number: CS370884-02 Amendment Date Additional Amount
(FDA Number: 66.458 Original 1-16-2013 755,450
Project Description: 1
McGowan Creek Interceptor Project 2
Total Financial Assistance Offer: $774,9
Principal Forgiveness: $0
Total Project Cost: $790,402
Interest Rate: 2%Per Annum
Ma)amum Loan Term: 20 Years
Estimated 2%(losing Fee: $15,498
Consideration having been given by the Department of Environment and Natural Fiesourcesto the application
submitted bythe applicant pursuant to North Carol i na General Statute 159Q(1)t he appl icant is an eligible unit of
government, (2)the project meets the eligibility criteria for a State Loan or Grant, and (3)the project has been
approved and certified bythe Department of Environment and Natural Fiesources as bei ng ent itled to priority for
State financial assistance,
The Department of Environment and Natural Fsources, acting on behalf of the State of North Carolina, hereby
offers the financial assistance described in this document.
For The State of North Carolina: John E Skvarla, III, Secretary
North Carolina Department of Environment & Natural Resources
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9gnature Date
On Behalf of: Orange County
Name of Fiepresentative in Fbsolution:
Title(Type or Print):
I,the undersigned, being duly authorized to take such action, asevidenced by the attached CERnFIED ODPYOF
AUTHORZATION BYTHEAPRJCANTSGOVERNING BODY, do hereby accept this State Loan or Grant offer and
make the assurances and accept the conditions.
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9gnature Date
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STANDARD COND111 ONS FOR F®8?ALSRF LOANS
1. The recipient shall comply with all provisions of the following Federal laws and authorities(super
cross-cutters):
(a) Title VI of the Civil RghtsAct of 1964—42 U.SO §2000d
(b) CFR35.3145(c) (Civil Fights laws)and provide completed EPA4700-4 form
(c) Section 13 of the Federal Water Fbllution Control Act Amendments of 1972—33 U.SO §1251
(d) Section 504 of the F;bhabilitation Act of 1973—29 U.SO §794
2. The recipient agreesto establish and maintain afinancial management system that adequately
accounts for revenues and expenditures.
3. Civil Rghtsand Labor Standard Requirements, and use of MBE(Minority Business Enterprise), WBE
(Women's Business Enterprise), and Small Businesses:
(a) I:�edficMBFJWBE(DBE) requirementsare included in the SRFE�pecial Conditionsthat areto be
included in the contract specifications. Fbsitive efforts shall be made by recipients,their
consultantsand contractorsto utilize small businessesand minority-owned businessesfor
sources of supply and services. Sich efforts should allow these sources the maximum feasible
opportunity to compete for subagreements and contracts to be performed, utilizing Federal
SRFfunds. Documentation of efforts made to utilize minority and women-owned firms must
be maintained by all recipients, consulting firms, and construction contractors, and made
available upon request.
(b) The recipient shall not award contractsto any firm that has been debarred for noncompliance
from the Federal Labor Standards, Title VI of the Civil RghtsAct of 1964, as amended, or any
firm that appears on the EPA's list of debarred firms. The recipient shall also complywith 40
CFR32. (Complete the Debarment Certification in the SRFSpecial Conditions)
(c) The recipient shall require all prime construction contractors, as part of their bid, to certify that
subcontracts have not and will not be awarded to any firm that has been debarred for
noncompliance from the Federal Labor Standards, Title VI of the Civil RghtsAct of 1964, as
amended, or Executive Order 11246, as amended, or any firm that appears on the EPA's list of
debarred firms. (Complete the Debarment Certification in the SRFSpecial Conditionsfor each
Subcontractor)
(d) The recipient shall require all contractors on the project to comply with the Department of
Labor's Safety and Health Regulations for construction promulgated under the Occupational
Safety and Health Act of 1970(PL91-946), under Section 107 of the Contract Work Hours and
Safety Standards Act (PL 91-54).
(e) The recipient shall ensure all cc nt ract ors are in compliance with applicable Equal Employment
Opportunity regulations.
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4. Acquisition of Foal Property:
The recipient shall comply withal I applicable provisions of the Uniform Fblocat ion and Foal
Property Acquisition Pbl ides Act of 1970(PL92-646), as amended, in regard to acquisition of
all real property, (including easements), for the project covered by this loan, and any resulting
relocation of persons, businesses, or farm operations. See Assurance 8.
5. Prompt Payment and Payment Fbtainage:
It is the policy of the Mate of North Carolina to make timely periodic loan disbursements to the
recipient, and to require the recipient to make prompt periodic payment on subagreements.
Partial disbursementson 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
conditions of this loan and subsequent amendments;
(a) The recipient agreesto make prompt payment to itscontractor, and to retain only such
amount asallowed by North Carolina General Statute.
(b) The recipient agreesto include appropriate provisions in each construction contract, and to
require the prime contractor to include them in all subcontracts, to implement this prompt
payment requirement.
6. The construction oontract(s) requires the contractor to adhere to Davis Bacon and Fblated Acts
Provisionsand Proceduresas listed in the Code of Federal FbgulationsChapter 29 Part 5 Section 5(29
CF R5.5). Public Law pertainingto this isalso,enacted in Title 40, United StatesCode,Subtitle II Section
3141 through Section 3148.
ASSURANCES
1. The recipient acknowledges that in the event that a milestone contained in the most recent Clean Water
Mate Revolving Fund Intended Use Plan and/or the Notice of Intent to F=und is not met,thisState Loan or
Grant offer will be rescinded by the Department of Environment and Natural Fbsources.
2. The final plansand specifications have or will be approved by the Division of Water Infrastructure and the
applicant so notified, prior to the project being advertised or placed on the market for bids.
3. Bigible project expenses are as discussed in the North Carolina Clean Water 9RF Program Guidance.
Projectswill not receive reimbursement for salestaxes.Salestaxes are deducted from project costsat the
90%milestone in accordance with the 9RFProgram Guidance.
4. The applicant agrees to construct the project or cause it to be constructed to final completion in
accordance with the application and plans and specifications approved by the Division of Water
Infrastructure.
5. The construction contract(s)requiresthe contractor to furnish performance and payment bonds,each of
which is in an amount of not less than one hundred percentum (100%) of the contract price; and to
maintain during the life of the contract(s)adequate fire, extended coverage,workmen's com pensat ion,
public liability, and property damage insurance.
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6. The construction of the project,indudingthe letting of oontractsin connection therewith,oonformstothe
applicable requirements of State and local laws and ordinances.
7. Any change or changes in the approved plans and specifications or contract(s)which(hast have)made or
will make any major alteration in the work required by the plansand specifications,or which increasesthe
cost of the project above the latest estimate approved by the Department of Environment and Natural
F;bsources,was or will be submitted t o t he Division of Water Infrastructure for approval.
8. The construction contract(s)provides that any duly authorized representative of the Statewi I I have access
tot he work whenever it is in preparation or progress,and that the contractor wi I I provide proper fad Iities
for such access and inspection. F=urther, any authorized representative of the Mate shall have access,for
the purpose of audit and examination,to any books,documents, papers and records of the applicant that
are pertinent to funds received under the Act; and the applicant shall submit to the Division of Water
Infrastructure such documentsand information as it may require in connection with the project.
9. The applicant will provide and maintain competent and adequate engineeringsupervision and inspection
of the project to insure that the construction conformswith the approved plans and specifications.
10. The applicant shall demonstrate to the satisfaction of the Department of Environment and Natural
F;bsourcesthat 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 prior to the authorization to
award construction contracts. No loan disbursements will be made until dear site certificates are
submitted.
11.At least thirty(30)days, shall be allowed from the first date of publication to the date of bid opening.
12. The Project Bid Information package, induding MBEand WBE(DBE)requirements,must besubmitted and
approved prior to the Mate issuing an Authorization to Award letter. If the approval of the debt
instrument for this loan is necessary for the applicant to award contracts, the completed Project Bid
Information and supporting documentation must be delivered to the Division of Water Infrastructure a
minimum of twenty(20)days prior to the award of contracts.
13. The recipient shall not award any contracts for construction until the Authority to
Award is given by the Mate. Doing so,will beat the risk of the award recipient.
14. F;bdpient acknowledges that no loan disbursements will be made until the contract documents are
submitted and approved. The recipient shall notify the Mate when contracts are awarded.
15. The recipient shall conduct a preconstruction conference, if applicable, for each construction contract
in cooperation with the Mate, and, in accordance with guidelineswhich shall be furnished by the
Mate. The Mate shall be invited to the conference.
16. The Local Government Commission will forward the debt instrument after total project costs are
established in the Authority to Award Letter.The applicant must executethedebt instrument aminimum
of ten (10)days prior to the request of disbursement of loan funds.
17. F;bdpient acknowledges that no loan disbursements will be made on the engineering planning and
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design or construction phase services until the contracts are submitted and approved.
18. Bigible small purchases estimated to exceed $10,000 require three informal bids for approval.
19. Within thirty(30)days of the date of completion of the project, the applicant will make available t o t he
Construction Grants Section staff all requested project closeout items indudingfinal costsforthepurpose
of making final adjustments t o t he Revolving Loan and debt instrument.
20.All principal paymentswill be made annually on or before May 1St.The first principal payment isdue not
earlier than six monthsafter the original date of completion of the project.All interest payments will be
made semiannually on or before May 1St and November 1St of each year.Thefirst interest payment isdue
not earlier than six months after the original date of completion of the project.
21. In accordancewith GS 159-26(b)(6),acapital project fund is required to account for all debt instrument
proceedsused to finance capital projects. It isrequired that acapital project ordinance,in accordancewith
GS 159-13.2, be adopted by the governing board authorizing all appropriations necessary for the
completion of the project. A copy of the approved ordinance must be submitted to this office before
submitting the first reimbursement request.
22.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 (3) years following
completion of the project.
23.All funds loaned pursuant to North Carolina General Statute 159G shall be expended solely for carrying
out the approved project and an audit shall be performed in accordance with GS 159-34, as
amended. The applicant will expend all of the requisitioned fundsfor the purpose of paying the
oostsof the project within three(3) banking daysfollowing the receipt of the fundsfrom the State.
Please note that the Mate is not a party to the construction contract(s)and the loan recipient isexpected
to uphold its contract obligations regarding timely payment. See Standard Condition 5.
24. The applicant shall demonstrate to the satisfaction of the Department of Environment and Natural
Fbsources its ability to pay the remaining or ineligible cost of the project.
Acknowledgement of Standard Conditions and Assurances
TheApplicant hereby gives assurance to the Department of Environment and Natural Fbsourcesthat the
declarations,assurances, representations,and statementsmade bythe applicant in the application; and
all documents,amendments,and communicationsfiled with the Department of Environment and Natural
Fbsources by the applicant in support of its request for a loan will be fulfilled.
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9gnature Date
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RES-2014-004 Attachment 2
RESOLUTION BY ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS
WHEREAS, the North Carolina Clean Water Revolving Loan and Grant Act of 1987 has
authorized the making of loans and grants to aid eligible units of government in
financing the cost of construction of wastewater treatment works, wastewater
collection systems, and water supply systems, water conservation projects, and
WHEREAS, the North Carolina Department of Environment and Natural Resources has
offered a State Revolving Fund Loan in the amount of $774,904 for the
construction of the McGowan Interceptor Project, CS370884-02, and
WHEREAS, Orange County intends to construct said project in accordance with the approved
plans and specifications,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF ORANGE COUNTY:
That Orange County does hereby accept the State Revolving Fund Loan offer of
$774,904.
That Orange County does hereby give assurance to the North Carolina Department of
Environment and Natural Resources that all items specified in the loan offer, Section 11 -
Assurances will be adhered to.
That Michael Talbert, (Interim) County Manager, and successors so titled, is hereby
authorized and directed to furnish such information as the appropriate State agency may
request in connection with such application or the project; to make the assurances as
contained above; and to execute such other documents as may be required in connection
with the application.
That Orange County has substantially complied or will substantially comply with all
Federal, State and local laws, rules, regulations, and ordinances applicable to the project
and to Federal and State grants and loans pertaining thereto.
Adopted this the day of at
North Carolina. Location
(Signature of Chief Executive Officer)
Date