TITLE
title
APPROVAL OF AN AGREEMENT BETWEEN THE NORTH CAROLINA OFFICE OF STATE BUDGET AND MANAGEMENT AND GUILFORD COUNTY FOR THE ADMINISTRATION OF STATE FUNDS IN AN AMOUNT NOT TO EXCEED $3,637,245.25 PURSUANT TO SESSION LAW 2017-17 (REGIONAL WATER PROJECT)
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SPONSOR
sponsor
Marty K. Lawing
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BACKGROUND
background
Session Law 2017-17 appropriated $14,548,981 to Rockingham and Guilford counties for the planning, design, survey, real property acquisition, construction, repair and other activities necessary to improve the performance and reliability and expand the capacity and service footprint of participating water systems in each county. The legislation specifies that 75% of the funds will go to Rockingham County and 25% or $3,637,245.25 will be used in Guilford County.
The Office of State Budget and Management has requested that Guilford County serve as the recipient of the funds and be responsible for the administration of the funds during the term of the agreement which will terminate on June 30, 2020. Guilford County and the municipalities of Oak Ridge, Stokesdale and Summerfield may spend up to $3,637,245.25 prior to June 30, 2020. Any portion of the funds that remain unspent by this date must be returned to the state. The Office of State Budget and Management will disburse the funds in three installments in accordance with the following schedule:
PAYMENT 1. An initial installment of $909,311 or 25% of the total allocation, shall be disbursed upon the submission of an invoice and a fully executed inter local agreement. The Memorandum of Understanding between the county and the municipalities for the regional water system feasibility study shall serve as the inter local agreement.
PAYMENT 2. Approximately 6 months after Payment 1 is disbursed, the county may provide an invoice for a second payment of $1,818,622 or 50% and attach quarterly status reports that describe unspent balances that remain after the first payment.
PAYMENT 3. Approximately 3 months after Payment 2 invoice is received by the state, the county may provide an invoice for a third payment of $909,312.25 or 25% and attach quarterly status reports describing specific unspent balances.
As the recipient, the county will be required to provide quarterly or 90-day project status reports to the state and the books, records, documents and facilities of the county are subject to being audited, inspected or monitored by the state for a period of 5 years following the termination of the agreement. The agreement may be terminated by mutual consent upon 90-days written notice to the other party and may be amended only by written amendments executed by both parties.
Depending on the results of the feasibility study which has a total cost of less than $200,000, we will likely need to revise the payment schedule.
No local matching funds are required for expenditures within the $3,637,245.25.
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BUDGET IMPACT
budget impact
PROJECT ORDINANCE FOR REGIONAL WATER SYSTEM PROJECT
PROJECT NAME EXPENDATURE REVENUE
Regional Water System Project $3,637,246 $3,637,346
Regional Water System Project State Funds
NO ADDITIONAL COUNTY FUNDS
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REQUESTED ACTION
requested action
Approve Grant Project Ordinance and associated Agreement, in substantial form, between the North Carolina office of State Budget and Management and Guilford County for the Administration of State funds in an Amount not to Exceed $3,637,245.25 Pursuant to Session Law 2017-17, to be effective July 1, 2017
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