HomeMy WebLinkAboutORD-2014-035 McGowan Creek Sewer Interceptor Project and Approval of Budget Amendment #1-BORD- 2014 -035
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 16, 2014
Action Agenda
Item No. 6 -d
SUBJECT: McGowan Creek Sewer Interceptor Project —Acceptance of State Revolving
Fund Loan and Approval of Budget Amendment #1 -B
DEPARTMENT: County Manager, Planning, PUBLIC HEARING: (Y /N) No
Finance & Administrative
Services, Asset Management
Services (AMS)
ATTACHMENT(S): INFORMATION CONTACT:
1) State Loan Offer and Acceptance Bonnie Hammersley, Manager's Office,
Letter (919) 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 & Administrative Services,
(919) 245 -2453
Kevin Lindley, Planning, (919) 245 -2583
Jeff Thompson, AMS, (919) 245 -2658
David Cannell, Finance & Administrative
Services, (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;
• Authorizing the County Manager to sign the State Loan Offer and Acceptance letter on
behalf of the Board of County Commissioners; and
• Approve Budget Amendment #1 -B to reflect a reduced project budget based on an
expenditure of $31,239 less than estimated for rock removal.
BACKGROUND: On March 13, 2012 the BOCC authorized staff to proceed with applying for a
State Revolving Fund (SRF) Loan to provide funding for the McGowan Creek Sewer Interceptor
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.
As a brief reminder of the scope of the project, this work 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
I
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.
On January 23, 2014 the BOCC approved a Resolution of Acceptance for an SRF loan for this
project in the amount of $774,904. During the course of construction of the project, it became
apparent that this loan amount would not be sufficient to pay for the construction of the project
due to a large amount of unexpected subsurface rock that was encountered. On June 17,
2014, the BOCC authorized a change order for the additional rock and pursuing additional SRF
loan money, estimated at $421,869, to cover the additional cost. The actual additional SRF
loan money needed was $390,630, or approximately $31,000 less than estimated.
The new SRF loan amount will be $1,165,534, which represents an increase of $390,630 over
the previous loan amount. Because the budget amendment approved at the June 17, 2014
meeting was for the estimated additional loan funds needed, the budget amendment which is
proposed as part of this item represents a reduction in the amount of the budget. To
summarize, the SRF loan amount is increasing, but it is increasing less than anticipated, which
means that Budget Amendment #1 -B will show a reduction in the budget amount, as seen in
the table below.
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 additional money from the loan available, this 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 $1,165,534. The project is complete, so the full amount of the loan is
expected to be used. County staff will submit the final invoices for the project to the State and
the State will then reimburse the County using the loan. The money borrowed is repaid over a
20 year period at an annual interest rate of 2 %. The project is completed, so repayment will
begin in this fiscal year (2014- 2015). There is a 2% closing fee for the loan which must be paid
up front. The closing fee for the original loan amount of $774,904 has been paid previously, so
the additional closing fee is expected to be $7,813. This should be invoiced once the State
receives the County's acceptance letter and Resolution of Acceptance. The annual debt
service for the loan will be $82,122. Budget Amendment #1 -B provides for the revised SRF
Loan amount, and amends the Capital Project Ordinance as follows:
McGowan Creek Outfall - Project # 30043
Revenues for this nroiect-
FY 2014 -15
Current
Budget
September 16,
2014
Amendment
FY 2014 -15
Revised
Budget
SRF Loan Proceeds
$1,196,773
$31,239
$1,165,534
Article 46 Sales Tax Proceeds
$57,814
$0
$57,814
Total Project Funding
$1,254,587
$31,239
$1,223,348
t
Appropriations for this p ro "ect:
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;
2) Authorize the County Manager to sign the State Loan Offer and Acceptance letter on
behalf of the Board of County Commissioners; and
3) Approve Budget Amendment #1 -B to reflect a reduced project budget based on an
expenditure of $31,239 less than estimated for rock removal.
FY 2014 -15
Current
Budget
September 16,
2014
Amendment
FY 2014 -15
Revised
Budget
Professional Services
$94,200
$0
$94,200
Construction
$1,102,573
($31,239)
$ 1,071,334
Easements, Loan Orig., misc.
$57,814
$0
$57,814
Total Costs
$1,254,587
($31,239)
$ 1,223,348
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;
2) Authorize the County Manager to sign the State Loan Offer and Acceptance letter on
behalf of the Board of County Commissioners; and
3) Approve Budget Amendment #1 -B to reflect a reduced project budget based on an
expenditure of $31,239 less than estimated for rock removal.
Attachment 1 4
STATE OF NORTH CAROLINA
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
DIVISION OF WATER INFRASTRUCTRE
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 Standard Conditions and Assurances
Legal Name and Address of Award Recipient
Orange County
P.O. Box 8181
Hillsborough, NC 27278
State Project Number: E- SRF -T -13 -0336
Federal Project Number: CS370884 -02
CFDA Number: 66.458
Project Description:
McGowan Creek Interceptor Project
Account
Date
Clean Water State Revolving Fund (SRF)
Original
State General Loan (SRL)
❑
State Emergency Loan (SEL)
❑
High Unit Cost Grant (SRG)
❑
Technical Assistance Grant
❑
Amendment
Date
Additional Amount
Original
1 -16 -2013
$755,450
1
2
Total Financial Assistance Offer:
Principal Forgiveness:
Total Project Cost:
Interest Rate:
Maximum Loan Term:
Estimated 2% Closing Fee:
1,165,53
$0
$1,165,534
2% Per Annum
20 Years
$23,311
Consideration having been given by the Department of Environment and Natural Resources to the application
submitted by the applicant pursuant to North Carolina General Statute 159G, (1) the applicant 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 by the Department of Environment and Natural Resources as being entitled to priority for
State financial assistance,
The Department of Environment and Natural Resources, acting on behalf of the State of North Carolina, hereby
offers the financial assistance described in this document.
For The State of Noob Carolin John E. Skvarla, III, Secretary
North Carolina Department of Environment & Natural Resources
.._ �®y ..........................
Signatu a Date
On Behalf of: County of Orange
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 State Loan or Grant offer and
make the assurances and accept the conditions.
----------------------------------------------------------- - - - - -- --- - - - - -- --------------------------------------------- - - - - --
Signature Date
STANDARD CONDITIONS FOR FEDERAL SRF 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 Rights Act of 1964 — 42 U.S.C. §2000d
(b) CFR 35.3145(c) (Civil Rights laws) and provide completed EPA 4700 -4 form
(c) Section 13 of the Federal Water Pollution Control Act Amendments of 1972 — 33 U.S.C. §1251
(d) Section 504 of the Rehabilitation Act of 1973 — 29 U.S.C. §794
2. The recipient agrees to establish and maintain a financial management system that adequately
accounts for revenues and expenditures.
3. Civil Rights and Labor Standard Requirements, and use of MBE (Minority Business Enterprise), WBE
(Women's Business Enterprise), and Small Businesses:
(a) Specific MBE /WBE (DBE) requirements are included in the SRF Special Conditions that are to be
included in the contract specifications. Positive efforts shall be made by recipients, their
consultants and contractors to utilize small businesses and minority -owned businesses for
sources of supply and services. Such efforts should allow these sources the maximum feasible
opportunity to compete for subagreements and contracts to be performed, utilizing Federal
SRF funds. 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 contracts to any firm that has been debarred for noncompliance
from the Federal Labor Standards, Title VI of the Civil Rights Act of 1964, as amended, or any
firm that appears on the EPA's list of debarred firms. The recipient shall also comply with 40
CFR 32. (Complete the Debarment Certification in the SRF Special 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 Rights Act 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 SRF Special Conditions for 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 (PL 91 -946), under Section 107 of the Contract Work Hours and
Safety Standards Act (PL 91 -54).
(e) The recipient shall ensure all contractors are in compliance with applicable Equal Employment
Opportunity regulations.
u
4. Acquisition of Real Property:
The recipient shall comply with all applicable provisions of the Uniform Relocation and Real
Property Acquisition Policies Act of 1970 (PL 92 -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 Retainage:
It is the policy of the State 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 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
conditions of this loan and subsequent amendments;
(a) The recipient agrees to make prompt payment to its contractor, and to retain only such
amount as allowed by North Carolina General Statute.
(b) The recipient agrees to 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 contract(s) requires the contractor to adhere to Davis Bacon and Related Acts
Provisions and Procedures as listed in the Code of Federal Regulations Chapter 29 Part 5 Section 5 (29
CFR 5.5). Public Law pertaining to this is also enacted in Title 40, United States Code, 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
State Revolving Fund Intended Use Plan and /or the Notice of Intent to Fund is not met, this State Loan or
Grant offer will be rescinded by the Department of Environment and Natural Resources.
2. The final plans and 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. Eligible project expenses are as discussed in the North Carolina Clean Water SRF Program Guidance.
Projects will not receive reimbursement for sales taxes. Sales taxes are deducted from project costs at the
90% milestone in accordance with the SRF Program 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) requires the 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 compensation,
public liability, and property damage insurance.
7
6. The construction of the project, including the letting of contracts in connection therewith, conforms to the
applicable requirements of State and local laws and ordinances.
7. Any change or changes in the approved plans and specifications or contract(s) which (has /have) made or
will make any major alteration in the work required bythe plans and specifications, or which increases the
cost of the project above the latest estimate approved by the Department of Environment and Natural
Resources, was or will be submitted to the Division of Water Infrastructure for approval.
8. The construction contract(s) provides that any duly authorized representative of the State will have access
to the work whenever it is in preparation or progress, and that 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 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 documents and information as it may require in connection with the project.
9. The applicant will provide and maintain competent and adequate engineering supervision and inspection
of the project to insure that the construction conforms with the approved plans and specifications.
10. The applicant shall demonstrate to the satisfaction of the Department of Environment and Natural
Resources 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 prior to the authorization to
award construction contracts. No loan disbursements will be made until clear 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, including MBE and WBE (DBE) requirements, must be submitted and
approved prior to the State 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 State. Doing so, will be at the risk of the award recipient.
14. Recipient acknowledges that no loan disbursements will be made until the contract documents are
submitted and approved. The recipient shall notify the State when contracts are awarded.
15. The recipient shall conduct a preconstruction conference, if applicable, for each construction contract
in cooperation with the State, and, in accordance with guidelines which shall be furnished by the
State. The State 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 execute the debt instrument a minimum
of ten (10) days prior to the request of disbursement of loan funds.
17. Recipient acknowledges that no loan disbursements will be made on the engineering planning and
design or construction phase services until the contracts are submitted and approved.
18. Eligible 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 to the
Construction Grants Section staff all requested project closeout items including final costs forthe purpose
of making final adjustments to the Revolving Loan and debt instrument.
20. All principal payments will be made annually on or before May 1St. The first principal payment is due not
earlier than six months after 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. The first interest payment is due
not earlier than six months after the original date of completion of the project.
21. In accordance with G.S. 159- 26(b)(6), a capital project fund is required to account for all debt instrument
proceeds used to finance capital projects. It is required that a capital project ordinance, in accordance with
G.S. 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 G.S. 159 -34, as
amended. 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 loan recipient is expected
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
Resources its ability to pay the remaining or ineligible cost of the project.
Acknowledgement of Standard Conditions and Assurances
The Applicant hereby gives assurance to the Department of Environment and Natural Resources that the
declarations, assurances, representations, and statements made by the applicant in the application; and
all documents, amendments, and communications filed with the Department of Environment and Natural
Resources by the applicant in support of its request for a loan will be fulfilled.
................................ ............................... ....... ...............................
Signature Date
9
Attachment 2
RES- 2014 -058
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 $1,165,534 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 $1,165,534.
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 II - Assurances will be adhered to.
That Bonnie Hammersley, 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
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 16, 2014
Action Agenda
Item No. 7 -a
SUBJECT: Bid Award —Hook Lift Truck for Solid Waste
DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y /N) No
Financial Services
ATTACHMENT(S):
Pricing Sheet
INFORMATION CONTACT:
Gayle Wilson, Solid Waste, 919 -968-
2885
Clarence Grier, 919 - 245 -2453
1
PURPOSE: To consider awarding a bid to Freightliner of Austin, 1701 Smith Road, Austin, TX
for a Hook Lift Truck for the Recycling Division of the Solid Waste Management Department.
BACKGROUND: The 2014 -15 budget calls for the replacement of a Hook -Lift Truck. This truck
will be used to service the recycling compactors at Walnut Grove Convenience Center, the
cardboard compactor at the landfill, and all of the purple rigid plastic roll -off containers at the
County's five (5) solid waste convenience centers and five (5) recycling drop off sites. The
current truck continuously requires repair and maintenance and has outlived its useful life. This
new hook truck will help to ensure continuity of the collection schedule and can be used as an
emergency backup service vehicle in emergencies.
North Carolina General Statute (NCGS) 143- 129(e)(3) allows local governments to make
purchases through a competitive bidding group purchasing program, which is a formally
organized program that offers competitively obtained purchasing services at discount prices to
two or more public agencies. The Texas Local Government Purchasing Cooperative
(BuyBoard) is a cooperative purchasing group that meets the requirements of NCGS 143 -
129(e)(3). The specific contract number is BuyBoard Contract #430 -13. The terms of the
contract call for items to be sold and serviced through a local dealer bid. Triad Freightliner and
Carolina Environmental Systems have been identified as the local dealers.
Staff compiled a list of specifications that meet the County's needs and compared these
specifications to information units bid by The Texas Local Government Purchasing Cooperative.
There were no noted deficiencies and staff determined that all specifications met the County's
needs. The recommended unit consists of a 2015 Freightliner 122SD Cab and Chassis with a
Swaploader 650 Hook Lift at a total cost of $ 193,225. The pricing sheet is attached.
FINANCIAL IMPACT: The purchase price of the Hook Lift Truck along with recommended
options is $193,225. Sufficient funds ($214,055) were appropriated in the adopted FY 2014 -15
Solid Waste budget to purchase the equipment.
RECOMMENDATION(S): The Manager recommends that the Board award the bid to
Freightliner of Austin, 1701 Smith Road, Austin, TX for the purchase of a Hook Lift Truck at a
delivered cost of $193,225.
FREIGHTLINER
OF AUSTIN
1701 Smith Rd. (Hwy. 183 So.l
Bus: 512- 389 -0000
Austin, Texas 78721
FAX: 512- 389 -2663 Invoice Number
PAYOFF TO:
Wats: 1 -800- 395 -2005 r
Date: 7 -22 -2014
PURCHASING NAME TEiEPHONE
Orange County 919 - 932 -2988
200 S Cameron St I Hillsborough INC 127278
YEAR
2015
MAKE
Freightliner
1MVU L/uUuy
129Sb Order
TOTAL
MILEAGE:
PAYOFF TO:
Trade Allowance
Tx Buy Board
Trading Difference
Safes Tax
Freightliner Coronado 1225D chassis
139,02b.U0
per e s requested to include pusher axe
QUOTED BY:
and ext engine, trans warranty
wap oa er HOOK lift model per quote
Body Type:
Provided by CES [-21-2U14
bpare alum wheels
,
Federal Excise Tax
uy board tee
Statelnsp.:
TOTAL SALE PRICE
193,225.00
DATED: LIEN AMOUNT $
License:
payoff on Trade
DRAFT FOR $
Title:
Isc almer ot Warranties
Any warranties on the products sold hereby are those made by
the factory. The Seller, Freightliner of Austin. hereby
expressly disclaims all warranties, either expressed or implied
Including any Implied warranty of merchantability or fitness
for a particular purpose, and Freightliner of Austin, neither
assumes nor author €zes any other person to assume for it any
liability In connection with the sale of this vehicle.
DRAFT TH RU:
Transfer:
Loss DepDSlt
ADDRESS:
Total Balance Due
193,225.00
CUSTOMER SIGNATURE
SALESMAN SIGNATURE
COKTRACNM. DISCLOSURE STATEMENT FOR USEDYEHICLE ONLY. `The Information you see on the window fort for this vehfofe is part of this contract. information on the window form owerrieds any contrary provisions In the contract of sate.'
R MAKE B DI)Y VIN
LICENVE P TE
TOTAL
193,225.00
PAYOFF TO:
Trade Allowance
ADDRESS:
Trading Difference
Safes Tax
GOOD UNTIL:
Vehlele Inventory Tax
QUOTED BY:
License Fee
SHOW LEIN TO:
Body Type:
Documentary Fee
ADDRESS:
License Wt.:
Federal Excise Tax
Statelnsp.:
TOTAL SALE PRICE
193,225.00
DATED: LIEN AMOUNT $
License:
payoff on Trade
DRAFT FOR $
Title:
Ext. Sor4ce Agreement
DRAFT TH RU:
Transfer:
Loss DepDSlt
ADDRESS:
Total Balance Due
193,225.00