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Resolution - Twelve Mile Creek WRF 9 MGD - NCDEQ-DWI Funding Offer Modification
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INFORMATION CONTACT:
John Shutak, Union County Water, Engineering Director, 704-283-3651
ACTION REQUESTED:
1) Adopt resolution to accept 2023 Appropriations Act (S.L. 2023-134) Funding Offer Modification in the amount of $25,610,000.00 from the North Carolina Department of Environmental Quality Division of Water Infrastructure, 2) authorize the County Manager to execute all necessary documentation to effectuate acceptance of the funding, and 3) adopt Capital Project Ordinance (CPO) No. 335D for the Twelve Mile Creek WRF 9 MGD Expansion project to appropriate additional NCDEQ-DWI funding in the amount of $390,000.00 to the project for an increased total project budget of $56,390,000.00.
PRIOR BOARD ACTIONS:
May 20, 2024, Regular Meeting, Agenda Item # 24-312 - Adopted the resolution to accept the 2023 Appropriations Act (S.L. 2023-134) funding offer in the amount of $25,220,000.00 from the North Carolina Department of Environmental Quality Division of Water Infrastructure.
BACKGROUND:
The Capital Improvement Program, as adopted by the Board of County Commissioners (BOCC), includes an allocation for the design and construction of the Twelve Mile Creek WRF Expansion to 9 MGD as part of the Twelve Mile Creek WWTP System Improvements Program outlined in the Comprehensive Water and Wastewater Master Plan. The expansion to 9 MGD is necessary to serve the current and future wastewater treatment needs in the Twelve Mile Creek wastewater collection system.
The total funding for this project was $56,000,000.00. Of this total, $25,220,000.00 was sourced from the 2023 Appropriations Act (S.L. 2023-134), which was based on the $26,000,000.00 earmark Union County received from S.L. 2023-134, minus a 3% administrative fee ($780,000.00) for NCDEQ-DWI. Following the appropriation of this funding, S.L. 2024-1 was enacted to modify provisions of the 2023 Appropriations Act. S.L. 2024-1 reduced the NCDEQ-DWI administrative fee from 3% to 1.5%. This reduction of administration fee from $780,000.00 to $390,000.00 increased total available funding for Union County to $25,610,000.00.
This resolution acknowledges receipt of a Funding Offer Modification and accepts the terms of the Funding Offer Modification in the amount of $25,610,000.00 from the 2023 Appropriations Act (S.L. 2023-134) to assist eligible units of government with meeting their water/wastewater infrastructure needs. The funds will be used for the Twelve Mile Creek WRF 9.0 MGD Expansion project construction. CPO No. 335D is needed to appropriate the additional $390,000.00 from the 2023 Appropriations Act.
FINANCIAL IMPACT:
CPO No. 335D appropriates the additional $390,000.00 to the Twelve Mile Creek WRF 9 MGD Expansion project budget. Once construction of the project commences, the County will submit requests for reimbursement to the State on a recurring basis until the $25,610,000.00 in funding is exhausted.