Agenda 04-03-2020 Special CalledDunn City Council
Special Meeting Agenda
Friday, April 3, 2020
2:00 p.m., Dunn Municipal Building
Opening
Invocation
Pledge of Allegiance
SECTION
1) Adjustment and Approval of the April 3, 2020 meeting agenda
ITEMS FOR DISCUSSION AND/OR DECISION
2) Approve Rules of Procedure for Electronic Meetings of Dunn City Council and Planning
Board
3) Ratify Utility Service Changes during State of Emergency
4) Resolution to accept USDA Loans/Grants Applications
5) Resolution Authorizing Request of Funds from State Water Infrastiuct ue for Raw Water
Station
6) Closed Session — in accordance with[N.C.G.S. 143-318.1l(a)(6)] and [N.C.G.S. 143-
318.11(a)(5)]
7) Decision on Closed Session Property Item
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POST OFFICE BOX 1065 o DUNN, NORTH CAROLINA 28335
(910) 230-3500 < FAX (910) 230-3590
www.dtinn-nc.org
Amended PUBLIC NOTICE
Mayor
William P. Elmore Jr.
Mayor Pro Tem
Chuck Turnage
Council Members
J. Wesley Sills
April Gaulden
Frank McLean
Billy Tart
Dr. David L. Bradham
City Manager
Steven Neuschafer
The public is hereby notified that the City Council of the City of Dunn will hold a special
called meeting on Friday, April 3, 2020 at 2:00 p.m. in the Council Chambers of the Dunn
Municipal Building, 401 E. Broad Street, Dunn, NC. The purpose of this meeting is to
discuss and/or take action on the following items of business:
1) Approve Rules of Procedure for Electronic Meetings of Dunn City Council and
Planning Board
2) Ratify Utility Service Changes during State of Emergency
3) Resolution to accept USDA Loans/Grants Applications
4) Resolution Authorizing Request of Funds from State Water Infrastructure for Raw
Water Station
5) Closed Session in accordance with [N.C.G.S. 143-318.11(a)(6)] and [N.C.G.S. 143-
318.11(a) (5)]
6) Decision on Closed Session Property Item
SPECIAL NOTICE REGARDING MEETING ACCESS DUE TO STATE OF EMERGENCY
In an effort to continue with City business and to serve the residents of the City of Dunn, the Mayor and
City Council will have a Special Meeting on April 3, 2020 at 2:00 p.m. in Council Chambers at City Hall. In
an effort to abide with the Governor's Executive Order and to reduce the spread of Covid-19, in -person
access to the Council meeting is limited to a total of 10 people to include our Council and needed staff.
We are taking extra steps to give our residents access to the Council Meeting. The Dunn Council will
continue to do what they can to keep our City services moving forward. We appreciate your patience
and understanding as the City maneuvers through these unprecedented times.
- The Special Called Council Meeting will be available for live public viewing on Facebook Live - The
City of Dunn, NC page.
- The Public can call in to listen - please call or email the City Clerk for instructions no later
than 9:00 a.m. on Friday, April 3, 2020.
Tammy Williams
City Clerk
910-230-3501
tilliams@dunn-nc.org
Posted on principal bulletin board
and City website: April 1, 2020,10:00 a.m.
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SUBJECT TITLE: Approve Rules of Procedure for Electronic Meetings of Dunn City Council and
'Planning Board
Pre�Cjtyager Neuschafer
Dep
Attachment: X Yes No Description: Proposed Rules for Electronic Meetings of
Dunn Citv Council and Planninq Board
Public Hearing Advertisement Date:
PURPOSE:
To adopt the Rules of Procedure for Electronic Meetings of the Dunn City Council and Planning Board. For
the safety of our Mayor, Council, staff and the public, it is recommended that future Council meetings be
handled electronically with very limited attendance in person until the Covid-19 State of Emergency ends.
This policy is related to State of Emergencies only and does not allow for electronic meetings in other
circumstances. The policy can be updated at any time.
FEWNW5310
Due to Covid-19 and the mandate that public meetings be limited to no more than 10 persons, it is priority that
the City Council make efforts to continue to handle City of Dunn matters through electronic means. Due to
legal ramifications and on the advice of City Attorney Pope, the 'Rules of Procedure for Electronic Meetings
of the Dunn City Council and Planning Board" has been drafted.
BUDGET IMPACT:
RECOMMENDATIONIACTION REQUESTED:
Motion to adopt the 'Rules of Procedure for Electronic Meetings of the Dunn City Council and Planning
Board" as presented.
RULES OF PROCEDURE
FOR ELECTRONIC MEETINGS OF
DUNN CITY COUNCIL AND PLANNING BOARD
APRIL 3, 2020 VERSION FOR COUNCIL CONSIDERATION
The City Council of the City of Dunn, North Carolina, recognizes that Article 33C of Chapter 143
of the North Carolina General Statutes contemplates that official meetings of public bodies, such
as the Durm City Council, may take place by electronic means. In fact, §143-318.10(d) of the
North Carolina General Statutes states that an official meeting can, "mean a meeting, assembly, or
gathering together at any time or place or the simultaneous communication by conference
telephone or other electronic means of a majority of the members of a public body for the purpose
of conducting hearings, participating in deliberations, or voting upon or otherwise transacting the
public business within the jurisdiction, real or apparent, of the public body." The Rules of
Procedure for Electronic Meetings are a guide for how Council will conduct meetings featuring
electronic participation.
1. Meetings to Which These Rules Apply
These Rules of Procedure for Electronic Meetings ("Electronic Rules") shall apply only to
meetings of the Dunn City Council and to the City of Dunn Planning Board, and not to any
other public bodies existing under the authority of the City of Dunn. The Electronic Rules
are supplemental to the Rules of Procedure approved by the City Council for its meetings.
Electronic Meetings can take place for any regular, special, or emergency meeting of the
Dunn City Council, subject to the conditions governing the use of Electronic Meetings.
2. Conditions Necessary for Electronic Meetings
The City Council agrees that electronic meetings will only be permitted when any of the
following entities declare that a state of emergency or a disaster exists in an area including
the City of Durm: the federal government of the United States of America; the Government
of the State of North Carolina through the Governor of the State of North Carolina or other
method permitted by Chapter 166A of the North Carolina General Statutes; Harnett
County, North Carolina; or the City of Dunn, tluuough the Mayor or other methods
permitted by Chapter 7 of the Dunn City Code. The state of emergency declaration or
disaster declaration must be related to a distinct event that reasonable persons can agree
directly affects the City of Dunn (for example, a determination that an emergency exists
under the National Emergencies Act related to piracy conducted by Somali pirates would
not reasonably be related to the City of Dunn and cannot support use of electronic
meetings). If no state of emergency or disaster exists, then the Electronic Rules may not
be used.
3. Definition of an Electronic Meeting
An Electronic Meeting is any meeting where one or more members of the City Council
participates through telephonic communication, or a telecommunications application
which allows simultaneous communication by multiple parties, or other similar means that
allows the members of the City Council to hold a meeting without all members being
physically present in the same room.
1IPage
4. Notice of Electronic Meeting
If an Electronic Meeting is necessary, a public notice of the electronic meeting shall be
sent as pant of any notice required by North Carolina General Statutes § 143-31812. The
public notice, in addition to the information required by North Carolina General Statutes
§143-318.12, shall provide:
a. The location of the physical meeting (which is where any Councilmembers and
Staff able to attend the meeting in person shall gather); and
b. The location of where a member of the public, member of the media, or others, may
listen to the Electronic Meeting in accordance with § 143-318.13 of the North
Carolina General Statutes.
The notice shall be provided in the manner required by Article 33C of Chapter 143 of the
North Carolina General Statutes. If the Electronic Meeting is being used for any part of a
regular meeting that is on the meeting schedule adopted by the City Council, then the
information required above shall be provided in a separate notice to be provided in
accordance with Article 33C of Chapter 143 of the North Carolina General Statutes. Any
notice provided may also be posted on the City of Dunn's bulletin board, website and social
media accounts, if possible.
5. Quorum
Councilmembers present in person or electronically, shall be included in the calculation
for determining if a quorum exists of the City Council. If a Councilmember who
participates electronically withdraws from the meeting, the rest of the meeting may be
completed provided there is still a quorum of the City Council present either in person or
electronically. Any Councilmember withdrawing from the meeting shall no longer be
included for purposes of the quorum calculation.
6. Process of Opening Meeting
Immediately prior to opening the meeting, the Mayor, Mayor Pro Tem, or other presiding
officer shall communicate with the Councilmember(s) who is (are) participating
electronically and ensure that he/she is prepared to go forward. From that time forward
until the adjournment of the meeting, the communication line or application shall be kept
open. At the start of the meeting, the Mayor, Mayor Pro Tem, or presiding official shall
state which Councilmembers are participating electronically.
Voting and Discussion
Councilmembers present for the meeting through electronic means are eligible to vote for
all items considered by the City Council during the meeting. However, Councilmembers
present for the meeting through electronic means will not be permitted to vote on any quasi-
judicial matters coming before the Council. Also, a member voting must indicate verbally
with a "yes," "no," "yea," "nay," "or "abstain" (when that is permitted) such that the City
2 1 P a g e
Clerk or her designee may record the vote. Prior to taking a vote on any issue, the Mayor,
Mayor Pro Tem, or other presiding officer shall inquire of the Councilmembers
participating electronically if he or she has been able to adequately monitor the discussion,
including comments from the public, if any, and shall allow those Councilmembers to make
any comments he or she desires, if they chose to not avail himself or herself of the
opportunity to discuss the matter before the vote. However, it is the responsibility of the
member to gain the attention of the Mayor or the presiding officer in order to be recognized
for discussion. A Councilmember attending through electronic means that withdraws from
the meeting without being excused from further attendance shall not be considered an
affirmative vote on items before Council. If a Councilmember attending through electronic
means becomes disconnected from the meeting, the Councilmember will not be counted as
an affirmative or negative vote.
8. Minutes
The minutes of the meeting shall designate the name of each Councilmember who
participated electronically, the nature of the electronic communication, and the duration of
the Councilmember's participation.
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SUBJECT TITLE: Ratification of Utility Service Changes during State of Emergency
Presenter: City Manager Neuschafer
Department: Admin
Attachment: X Yes No
Description: Letter from Attorney General and
Public Hearing Advertisement Date:
Order suspending Utility Disconnections and Waiving Fees
PURPOSE:
For the Council to ratify the decision to suspend late fees for nonpayment of utility service and to suspend
disconnections during the Covid-19 State of Emergency.
BACKGROUND:
Due to Covid-19, Governor Cooper issued a State of Emergency for North Carolina on March 10, 2020.
Mayor Elmore further issued a State of Emergency for the City of Dunn on March 16, 2020. In response to
this crisis, the North Carolina Attorney General, Josh Stein, issued a request that all municipal and local
government utilities do the following during this state of emergency:
- Not to disconnect your residents from utility services, and
- To suspend late fees for nonpayment of utility services.
Due to the impact Covid-19 has already had and continues to have on our residents economically,
disconnection of services and late fees have been suspended.
BUDGET IMPACT:
Current outstanding accounts approximately - 270 out of 5000 — 5% or $25,000
Other fees not collected - $5,000 per month
RECOMMENDATION/ACTION REQUESTED:
Motion to ratify the decision to not disconnect utility customers and to waive late fees for nonpayment of utility
services during this state of emergency.
Steven W. Neuschafer
From: Josh.Stein <1osh.Stein@ncdoj.gov>
Sent: Thursday, March 26, 2020 5:55 PM
To: Steven W. Neuschafer
Subject: [External]Need to Provide Utility Service During State of Emergency
Attachments: Utilities Commission order suspending disconnections and waiving fees.pdf
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
ATTORNEY GENERAL JOSH STEIN
March 26, 2020
Via Electronic Mail
Steven Neuschafer
Dunn
RE: Need to Provide Utility Service During State of Emergency
Dear Steven Neuschafer:
The spread of COVID-19 (coronavirus) and the associated and escalating public health and safety crisis
are matters of significant concern. During these unprecedented and unsettling times, it is vitally important that
North Carolinians maintain their utility service. While many North Carolinians are staying at home to slow the
spread of the virus, disconnection of utility service has especially significant health and safety effects. People
who are struggling with their health, have been laid off from a job, or have otherwise experienced hardship as a
result of this crisis, should not lose access to the water, power, or gas they need.
Last week, I told the public that I would be asking the North Carolina Utilities Commission to compel
all public utilities to suspend disconnection of utility services as a remedy for nonpayment of charges and to
suspend late fees. Before I even submitted a petition, the Utilities Commission took the quick and commendable
action of entering an order doing just that, on its own accord. The order is attached to this letter and you can
also find it here: https:Hstarwl ncuc net/NCUC/ViewFile aspx?Id=99807398-6abd-412f-b94c-6c23eb2427bO.
I am now asking you, as municipal and local utilities that provide water, power, gas, or other vital
services to your residents, to pledge the following during this state of emergency:
• not to disconnect your residents from utility services, and
• to suspend late fees for nonpayment of utility service.
Taking these actions will greatly assist your constituents during this difficult time period. Further, it will
match the actions that larger utilities in this state are taking as required by the Utilities Cornmission order.
I know that a number of municipal and local utilities have already taken these steps. For those of you
that have, please know how grateful I am for your leadership.
Please contact Assistant Attorney General, Peggy Force, of our office at Vforce@ncdoj.gov to let us
know whether you have taken these basic, common-sense measures to help your customers and constituents.
We look forward to your response.
Joshua H. Stein
Attorney General
cc: North Carolina Association of County Commissioners
North Carolina League of Municipalities
STATE OF NORTH CAROLINA
UTILITIES COMMISSION
RALEIGH
DOCKET NO. M-100, SUB 158
BEFORE THE NORTH CAROLINA UTILITIES COMMISSION
In the Matter of
Investigation of Necessary and Appropriate )
Responses to the Novel Coronavirus COVID-19 )
ORDER SUSPENDING UTILITY
DISCONNECTIONS FOR
NON-PAYMENT, ALLOWING
RECONNECTION, AND WAIVING
CERTAIN FEES
BY THE COMMISSION: On March 10, 2020, Governor Roy Cooper issued
Executive Order No. 116 declaring a State of Emergency in North Carolina to coordinate
response and protective actions to prevent the spread of coronavirus (COVID-19). In so
doing, the Governor ordered state agencies to cooperate in the implementation of the
provisions of the executive order.
On March 14, 2020, Governor Cooper, finding that further action was necessary
to protect the health and safety of the residents of North Carolina, slow the spread of the
COVID-19 outbreak, reduce the number of people infected, and avoid strain on our health
care system, issued Executive Order No. 117 prohibiting mass gatherings of more than
100 persons to limit the spread of COVID-19.
On March 16, 2020, the Commission acted in response to the declared State of
Emergency and consistent with the Governor's executive orders to assist in preventing
the spread of coronavirus by suspending all hearings scheduled to be held prior to
April 13, 2020.
On March 17, 2020, Governor Cooper further issued Executive Order No. 118
closing restaurants and bars for dine -in service. In addition, that executive order
recognizes and provides relief for the numerous workers in North Carolina who may have
lost wages in restaurants and meeting places due to mass gathering restrictions.
Most of the major electric, natural gas, and water and wastewater utilities regulated
by the Commission — including Duke Energy Carolinas, LLC; Duke Energy Progress,
LLC; Virginia Electric and Power Company, Inc., d/b/a Dominion Energy North Carolina;
Piedmont Natural Gas Company, Inc.; Public Service Company of North Carolina, Inc.;
Aqua NC, Inc; and Carolina Water Service, Inc. of North Carolina — have notified the
Commission that they are suspending disconnection of utility services for non-payment in
recognition of the above restrictions and to avoid creating additional hardships for their
customers.
The Commission commends these utilities and shares their concerns regarding
the potentially devastating health and financial impacts on their customers' lives, such
that immediate action is required. In addition to social distancing and other steps that may
be taken to avoid exposure to the virus, the Centers for Disease Control and Prevention
recommends frequent hand washing to reduce the risk of infection and prevent the spread
of the disease —such recommended hygiene requires continued customer access during
this time of heightened health concern to water, electricity, and natural gas at customer
residences for both customer safety and the protection of the public.
Therefore, until the end of the State of Emergency or until further orders of the
Commission, pursuant to N.C. Gen. Stat. § 62-32 and the Commission's general
supervisory powers over the rates charged and service rendered by public utilities in this
state, the Commission finds good cause in light of the nature of the current emergency to
order that all jurisdictional electric, natural gas, and water and wastewater public utilities,
including resellers, shall immediately cease customer disconnections due to
non-payment of utility bills, except where necessary as a matter of safety or where
requested by the customer, and waive the application of late fees incurred during the
State of Emergency. The Commission further suspends, pending further orders, any and
all regulations and provisions of individual utility tariffs on file that prevent or condition re-
connection of disconnected customers. If, due to the current State of Emergency, a public
utility finds it necessary to further deviate from its approved tariffs or Commission
regulations, such as policies that would impose a service continuity hardship or create an
unnecessary risk of human contact, the public utility should file a request with the
Commission for prior approval on an expedited basis.
At the end of the State of Emergency, customers having arrearages accrued during
the State of Emergency shall be provided the opportunity to make a reasonable payment
arrangement over no less than a six month period and shall not be charged any late fees
for late payment for arrearages accrued during the State of Emergency. No provision in
this Order shall be construed as relieving a customer of their obligation to pay bills for
receipt of any utility service covered by this Order.
If a public utility subject to this Order maintains a website, such public utility shall
provide notice of this Order's content on such website. Further, each public utility subject
to this Order shall provide notice of this Order's content by posting physically where the
company does business with its customers.This Order is effective on the date issued, and
the Chief Clerk shall serve this Order by electronic mail on all electric, natural gas, and
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SUBJECT TITLE: Consideration to adopt a Resolution and accept the letter of conditions for USDA
Loan/Grant Application — Police vehicles; Water and Sewer equipment and trucks; Public Works
equipment and Parks and Recreation equipment.
Presenter: Jim Roberts Finance Director
Department: Finance
Attachment: X Yes No Description: Letters of conditions from USDA for each
loan, Resolution accepting conditions
Public Hearina Advertisement Date: N/A
PURPOSE:
To accept the loan offers, not to exceed $359,000 and Grants in the amount of $110,000 from the USDA.
Grants will be applied to the Police Vehicles and Equipment and the Water and Sewer Equipment in the
amounts of $84,000 and $26,000 respectively. The Loans will be $70,000 for Police Vehicles and Equipment
for a term of 7-years at an interest rate of 2,375%, 104,000 for Public Works-Parks/Recreation for a term of
10-years at an interest rate of 2.375%, and $185,000 for Water and Sewer Equipment and Vehicles for a term
of 10-years at an interest rate of 2.375%.
BACKGROUND:
In October 2019, the City Council approved the process to seek loans to cover equipment that is needed and
approved through the budgeting process for Public Works, Recreation, Police, and Water/Sewer
Departments. These purchases are meant to improve or replace existing equipment for use by the City and
these departments. We have contacted local banks and compared rates and years of repayment and
recommend the use of the USDA for the loans for all purchases and with the addition of Grants for the areas
of Police and Water/Sewer, The total funding for these loans combined is approximately $359,000 and
repayments will be made through funds available within our current budget.
BUDGET IMPACT:
The Debt Service payments will begin in FY 2020-2021 in the approximate amount of $43,650 yearly.
RECOMMENDATIONIACTION REQUESTED:
Motion to adopt the Resolution and authorize the Mayor to execute any and all documents associated with
the USDA loan/grant application.
Mayor
William P. Elmore Jr.
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city of dunn
POST OFFICE BOX 1065 ^ DUNN, NORTH CAROLINA 28335
(910) 230-3500 a FAX (910) 230-3590
www.dunrr-nc.org
Mayor Pro Tern
Chuck Turnage
Council Members
J. Wesley Sills
April L. Gaulden
Frank McLean
Billy Tart
Dr, David L. Bradham
City Manager
Steven Neuschafer
A RESOLUTION BY THE CITY OF DUNN
AGREEING TO LETTER OF CONDITIONS FROM THE USDA RELATING TO LOANS
AND GRANTS
WHEREAS, the governing body of the City of Dunn desires to accept conditions provided by the
USDA for loans/grants in the amount of $469,000 for the purchase of Police vehicles, Public Works,
Park and Recreation equipment, and Water and Sewer vehicles and equipment.
WHEREAS, the interest rate will not exceed 2.375% for terms of five years for police vehicles and
ten years for all other equipment and vehicles.
WHEREAS, the governing body of the City of Dunn authorizes the Mayor and the City Manager to
sign all documents relating to the USDA Rural Development loan and/or grant including but not
limited to: Form RD-NC 1942-47-1, "Loan Resolution"; Form RD 400-4, "Assurance Agreement;
and Form RD 400-1 `Equal Opportunity Agreement'.
THEREFORE BE IT RESOLVED this Resolution will become part of the official minutes of
the City Council meeting held on April 3, 2020.
ADOPTED BY THE CITY COUNCIL OF DUNN THIS 3rd DAY OF APRIL, 2020.
William P. Elmore Jr.
Mayor
ATTEST:
Tammy Williams,
City Clerk
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USDA
United States Department of Agriculture
April 14, 2020
City of Dunn
401 East Broad Street
Dunn, NC 28335
Attn: William P. Elmore, Jr., Mayor
This letter establishes conditions which must be understood and agreed to by you before further
consideration maybe given to your application.
This letter is not to be considered as loan and grant approval or as a representation as to the availability
of funds. The docket may be completed on the basis of a loan and grant and not to exceed the following:
Facility Loan Amount Grant Amount Total
2019 Police Equipment $70,000.00 $84,000.00 $154,000.00
*4 — Police Cruisers, 4 — Police Cameras, 4 — Thermal Printers
If Rural Development (RD) makes the loan(s), you may make a written request that the interest rate be
the lower of the rate in effect at the time of loan approval or the time of loan closing. If you do not request
the lower of the two interest rates, the interest rate charged will be the rate in effect at the time of loan
approval. The loans will be considered approved on the date a signed copy of Form RD 1940-1, "Request
for Obligation of Funds" is mailed to you. If you want the lower of the two rates, your written request
should ordinarily be submitted at least 30 calendar days before loan closing.
This letter establishes conditions that must be understood and agreed to by you before further
consideration may be given to the Application for Federal Assistance. Any changes in project cost, sources
of funds, scope of services or any other significant changes (this includes significant changes in the
Borrower's financial conditions, operation, organizational structure or executive leadership) in the project
or applicant must be reported to and approved by Rural Development (RD) by written amendment to this
letter. Any changes not approved by RD shall be cause for discontinuing processing of the application.
If the conditions set forth in this letter are not met within twelve (12) months from the date hereof, RD
reserves the right to discontinue processing the application.
REPAYMENT SCHEDULE
The loan will be scheduled for repayment over a period not exceeding seven (7) years. Each installment
will be due one year following the date of RD loan closing. The Installment Purchase Contract will provide
for annual installments in the amount of $10,973.00 on the loan.
SECURITY
Security will consist of an Installment Purchase Contract in the amount of $70,000.00 secured by a
Installment Purchase Agreement on the police equipment with loan funds. Financing Statements and
Security Agreements will also be required. Security position forthe security agreements will be a first lien
position.
Rural Development • Smithfield Field Office
2736 NO Hwy 210 • Smithfield, NO 27576
Voice (919) 934-7156 ext. 4 • Fax (844) 325-6830
USDA Is an equal opportunity provider and employer.
a
Prior to loan approval, the Town must obtain the last audit review letter from the Local Government
Commission. This audit must be satisfactory as it relates to Local Government Commission Requirements.
LOCAL GOVERNMENT COMMISSION
Prior to loan approval, the applicant must provide a copy of the last audit review letter from the Local
Government Commission for the proposed loan to be obtained under the Installment Purchase Contract.
PREAUTHORIZED DEBIT PAYMENTS (PAD)
Priorto loan closing the applicant must complete U.S. Department of Treasury Form SF-5510, "Authorized
Agreement for Preauthorized Payments." This form will authorize the government to electronically debit
your Rural Utilities Service loan payment(s) from your specified bank account on a predetermined date
(date payment is due). Preauthorized Debit is accomplished through the Automated Clearing House
process providing for a cost-effective, secure, reliable, and convenient payment method, thus eliminating
the need to write a check for each payment, the expense of mailing the payment, and allows you the
certainty of when your payment will be applied. This service is provided to only qualified borrowers.
PROJECT COST
Funding from all sources has been budgeted for the estimated expenditures as follows:
Project Costs:
Police Equipment $154,000.00
TOTALS $154,000.00
PROJECT FUNDS
The project funding is planned in the form of loans from the following sources and amounts:
Project Funding Source:
RHS Loan Funds
RHS Grant Funds
Applicant Contribution
Total from all Funding Sources
Funding Amount:
$70,000.00
$84,000.00
$ -0-
$154,000.00
INSTALLMENT/PURCHASE CONTRACT
The Rural Development loan for this facility is made pursuant to provisions of Section 160A-20 of the
North Carolina General Statutes so that the Town may enter into Installment Purchase Contracts to
finance the purchase of real property. A copy of the Installment/Purchase Contract is attached hereto.
ORGANIZATION
The Town must provide necessary certification, comments, and recommendations concerning its
organization and authority to construct, operate, and maintain the proposed facility and meet the
requirements of the following:
A. Compliance with special laws and regulations.
B. State Population control or environmental protection agency standards.
C. Consistency with other development plans.
D. State agency regulating water rights.
E. Civil Rights Act of 1964.
F. Title IX of the Education Amendment of 1972.
G. Section 504 of the Rehabilitation Act of 1973.
H. Age Discrimination Act of 1975.
ACCOUNTING, AUDITS AND REPORTS
Records, reports and audits will be established and maintained in accordance with RD Instructions 1942-
A, Section 1942.17 (q). These requirements include an annual budget, and an annual audit completed in
accordance with 2CFR part 200 Subpart F.
INSURANCE AND BONDING
Insurance and bonding should be obtained as required by NC General Statutes and Rural Development
Instructions 1942-A, Subsection 1942.17(j)(3). Evidence of required coverage must be provided to Rural
Development priorto loan closing. Evidence that coverage is being maintained must be provided annually
thereafter.
Position Fidelity Bond: The Applicant will provide fidelity bond coverage for the positions of officials
entrusted with the receipt and disbursement of its funds and the custody of valuable property. The
amount of the bond will normally approximate the total annual debt service requirements for the Rural
Development loan(s).
Corporate Liability and Property Damage Insurance: The Applicant will provide public liability, and
property damage insurance in an amount to adequately protect the applicant from civil action arising
from the function of the applicant relative to the project.
Real Property Insurance: The applicant will provide fire and extended coverage in an amount equal to the
replacement value of the building and improvements. The United States of America will be named first
mortgagee for all real property held as security for the Rural Development loan.
Workman's Compensation Insurance: The applicant will provide adequate Workman's Compensation
Insurance if applicable.
LOAN RESOLUTION
The Town must formally adopt form RD-NC 1942-47-1, "Loan Resolution" and Form RD 400-4, "Assurance
Agreement", and Form RD 400-1 "Equal Opportunity Agreement".
OPERATING BUDGET
The applicant must adopt an operating budget that provides adequate revenues for operations and
maintenance expenses, debt service, and reserve payments after approval by RD.
RESERVE ACCOUNT
The Town must establish a Reserve Account in accordance with Form RD-NC 1942-47 Loan Resolution and
make monthly deposits of $91.44 to that account (ten percent of the RD payment). These deposits shall
be made on a monthly basis until the reserve account has an amount equal to one full RD annual payment
($10,973.00)
GRADUATION
The Town will refinance the unpaid balance, in whole or in part, of its debt upon the request of the
Government if at anytime it should appear to the Government that the Town is able to refinance its loan
by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates
and terms.
APPLICANT CERTIFICATION
Form AD-1047, Certification Regarding Debarment, Suspension, and other Responsibility Matters -
Primary Covered Transactions, must be executed by the applicant prior to loan approval.
Form AD-1048, Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -
Lower Tier covered transactions must be executed by the Contractor(s), supplier(s), and/or dealers prior
to any purchase that exceeds $25,000.00.
Form RD 1910-11, Applicant Certification/Federal Collection Policies for Consumer or Commercial Debts,
must be executed by the applicant prior to loan closing.
DRUG FREE WORKPLACE CERTIFICATION
Prior to grant approval, the Authority will certify that they will provide a drug -free workplace, are not
involved with drugs, and will establish an educational program concerning drug abuse for employees by
executing Form AD-1049, "Certification Regarding Drug Free Workplace Requirement (Grants)."
DEBARMENT CERTIFICATION
The Town is to certify that they are not debarred or suspended for Federal Non -procurement Programs
by the use of the attached form AD-1047, "Certification Regarding Debarment, Suspension, and other
Responsibility Matters - Primary Covered Transitions". Also Form AD-1048, "Certification Regarding
Debarment, Suspension, Ineligibility, and Voluntary Exclusion - Lower Tier Covered Transactions", is
attached and is to be used by lower tier parties (builders, contractors, dealers, suppliers, manufactures,
and others) involved in transactions exceeding $25,000.00.
SYSTEM FOR AWARD MANAGEMENT and UNIVERSAL IDENTIFIER REQUIREMENTS
Requirement for System for Award Management (SAM):
a. You as the recipient must maintain the currency of your information in the SAM until you
submit the final financial report required under this award and all grants funds under this
award have been disbursed or de -obligated, whichever is later. This requires that you
review and update the information at least annually after the initial registration, and more
frequently if required by changes in your information or another award term. Recipients
can register on-line at www.sam.gov).
b. You as the recipient may not make a sub -award to an entity unless the entity has provided
its Data Universal Numbering System (DUNS) number to you. Sub -recipients with sub -
awards of $25,000 or more must also have and maintain a current CCR registration.
c. Recipient Reporting: You as the recipient must report eachfirst tiersub-owards of $25,000
or more in non -Recovery Act funds to http://www.fsrs.gov no later than the end of the
month following the month the obligation was made. As part of your registration profile
at http://www.som.gov, you must report the total compensation of the 5 most highly
compensated executives (if the award was $25,000 or more, 80% or more of annual gross
revenues subject to Transparency Act, and $25 Million of annual gross revenues subject to
Transparency Act) by end of month following month in which award was made. This
5
requirement also pertains to sub -recipients (if the award was $25,000 or more, 80% or
more of annual gross revenues subject to Transparency Act, and $25 Million of annual
gross revenues subject to Transparency Act).
OTHER CONDITIONS
All applicable items set out in Form RD NC 1942-13(a), "Processing Checklist", apply to this project and
become a part of the Letter of Conditions. A new property survey and Title insurance will be required.
PROCUREMENT, BIDDING, AND CONSTRUCTION
Procurement and bidding must be accomplished in accordance with the requirements of RD Instruction
1942-A, 1942.18(k). Final plans, specifications, and contract documents will be prepared in a manner that
meets all state requirements as well as those of Rural Development (which must be reviewed and signed
by the Rural Development State Engineer or Architect prior to issuance of a notice to proceed with
construction by the Architect). In any case where the borrower proposes to award a contract (or contracts)
to a bidder, other than the apparent low bidder, the borrower must first obtain concurrence from the RD
State Director before taking action to award the contract (or contracts). All construction should also meet
the requirements of the American Disabilities Act (ADA). The construction plan should include a method
of inspection that is acceptable to Rural Development. Rural Development's approval and concurrence
must be obtained for all contracts, agreements, and plans and specifications.
GRANTAGREEMENT
A copy of Form RD 3570-3, "Agreement for Administrative Requirements for Community Facilities Grants,"
is included in your package for review. You will be required to execute the agreement no later than the
time of grant closing.
The grantee understands that any property acquired or improved with Federal grant funds may have use
and disposition conditions which apply to the property as provided by 7 CFR parts 3015, 3016, or 3019 in
effect at this time and as may be subsequently modified.
The grantee understands that any sale or transfer of property is subject to the interest of the United States
Government in the market value in proportion to its participation in the project as provided by 7 CFR parts
3015, 3016, or 3019 in effect at this time and as may be subsequently modified.
APPLICANT CONTRIBUTION
Applicant will contribute $-0- from its funds on hand for the development of these projects. Applicant
cash contribution will be the first funds spent on the project.
DISBURSEMENT OF FUNDS
The funds contributed by the Applicant will be the first funds disbursed, followed by Rural Development
Loan funds. The Rural Development grant funds will be disbursed after all authorized costs have been
finalized. After providing for all authorized costs, any remaining funds will be considered Rural
Development grants funds and refunded to Rural Development.
CLOSING INSTRUCTIONS
This loan will be closed in accordance with instructions issued by the USDA Office of General Counsel, the
RD State Office, and applicable RD and State Procedures.
TOBAIS FULLWOOD
Area Specialist
USDA
United States Department of Agriculture
April 14, 2020
City of Dunn
401 East Broad Street
Dunn, NC 28335
Attn: William P. Elmore, Jr., Mayor
This letter establishes conditions which must be understood and agreed to by you before further
consideration may be given to your application.
This letter is not to be considered as loan and grant approval or as a representation as to the availability
of funds. The docket may be completed on the basis of a loan and grant and not to exceed the following:
Facility Loan Amount Total
2019 Public Works Equipment $104,000.00 $104,000.00
*Leaf Vacuum, Leaf Box, Mowers and Field Rakes
If Rural Development (RD) makes the loan(s), you may make a written request that the interest rate be
the lower of the rate in effect at the time of loan approval or the time of loan closing. If you do not request
the lower of the two interest rates, the interest rate charged will be the rate in effect at the time of loan
approval. The loans will be considered approved on the date a signed copy of Form RD 1940-1, "Request
for Obligation of Funds" is mailed to you. If you want the lower of the two rates, your written request
should ordinarily be submitted at least 30 calendar days before loan closing.
This letter establishes conditions that must be understood and agreed to by you before further
consideration may be given to the Application for Federal Assistance. Any changes in project cost, sources
of funds, scope of services or any other significant changes (this includes significant changes in the
Borrower's financial conditions, operation, organizational structure or executive leadership) in the project
or applicant must be reported to and approved by Rural Development (RD) by written amendment to this
letter. Any changes not approved by RD shall be cause for discontinuing processing of the application.
If the conditions set forth in this letter are not met within twelve (12) months from the date hereof, RD
reserves the right to discontinue processing the application.
REPAYMENT SCHEDULE
The loan will be scheduled for repayment over a period not exceeding ten (10) years. Each installment
will be due one year following the date of RD loan closing. The Installment Purchase Contract will provide
for annual installments in the amount of $11,808.00 on the loan.
SECURITY
Security will consist of an Installment Purchase Contract in the amount of $104,000.00 secured by a
Installment Purchase Agreement on the equipment with loan funds. Financing Statements and Security
Agreements will also be required. Security position forthe security agreements will be a first lien position.
Prior to loan approval, the Town must obtain the last audit review letter from the Local Government
Commission. This audit must be satisfactory as it relates to Local Government Commission Requirements.
Rural Development • Smithfield Field Office
2736 NC Hwy 210 • Smithfield, NC 27576
Voice (919) 934-7156 ext. 4 - Fax (844) 325-6830
USDA is an equal opportunity provider and employer.
2
LOCAL GOVERNMENT COMMISSION
Prior to loan approval, the applicant must provide a copy of the last audit review letter from the Local
Government Commission for the proposed loan to be obtained under the Installment Purchase Contract.
PREAUTHORIZED DEBIT PAYMENTS (PAD)
Priorto loan closingthe applicant must complete U.S. Department of Treasury Form SF-5510, "Authorized
Agreement for Preauthorized Payments." This form will authorize the government to electronically debit
your Rural Utilities Service loan payment(s) from your specified bank account on a predetermined date
(date payment is due). Preauthorized Debit is accomplished through the Automated Clearing House
process providing for a cost-effective, secure, reliable, and convenient payment method, thus eliminating
the need to write a check for each payment, the expense of mailing the payment, and allows you the
certainty of when your payment will be applied. This service is provided to only qualified borrowers.
PROJECT COST
Funding from all sources has been budgeted for the estimated expenditures as follows:
Project Costs:
Police Equipment $104,000.00
TOTALS $104,000.00
PROJECT FUNDS
The project funding is planned in the form of loans from the following sources and amounts:
Project Funding Source: Funding Amount:
RHS Loan Funds $104,000.00
Applicant Contribution $ -0-
Total from all Funding Sources $104,000.00
INSTALLMENT/PURCHASE CONTRACT
The Rural Development loan for this facility is made pursuant to provisions of Section 160A-20 of the
North Carolina General Statutes so that the Town may enter into Installment Purchase Contracts to
finance the purchase of real property. A copy of the Installment/Purchase Contract is attached hereto.
ORGANIZATION
The Town must provide necessary certification, comments, and recommendations concerning its
organization and authority to construct, operate, and maintain the proposed facility and meet the
requirements of the following:
A. Compliance with special laws and regulations.
B. State Population control or environmental protection agency standards.
C. Consistency with other development plans.
D. State agency regulating water rights.
E. Civil Rights Act of 1964.
F. Title IX of the Education Amendment of 1971
G. Section 504 of the Rehabilitation Act of 1973.
H. Age Discrimination Act of 1975.
ACCOUNTING, AUDITS AND REPORTS
Records, reports and audits will be established and maintained in accordance with RD Instructions 1942-
A, Section 1942.17 (q). These requirements include an annual budget, and an annual audit completed in
accordance with 2CFR part 200 Subpart F.
INSURANCE AND BONDING
Insurance and bonding should be obtained as required by NC General Statutes and Rural Development
Instructions 1942-A, Subsection 1942.17(j)(3). Evidence of required coverage must be provided to Rural
Development priorto loan closing. Evidence that coverage is being maintained must be provided annually
thereafter.
Position Fidelity Bond: The Applicant will provide fidelity bond coverage for the positions of officials
entrusted with the receipt and disbursement of its funds and the custody of valuable property. The
amount of the bond will normally approximate the total annual debt service requirements for the Rural
Development loan(s).
Corporate Liability and Property Damage Insurance: The Applicant will provide public liability, and
property damage insurance in an amount to adequately protect the applicant from civil action arising
from the function of the applicant relative to the project.
Real Property Insurance: The applicant will provide fire and extended coverage in an amount equal to the
replacement value of the building and improvements. The United States of America will be named first
mortgagee for all real property held as security for the Rural Development loan.
Workman's Compensation Insurance: The applicant will provide adequate Workman's Compensation
Insurance if applicable.
LOAN RESOLUTION
The Town must formally adopt form RD-NC 1942-47-1, "Loan Resolution" and Form RD 400-4, "Assurance
Agreement", and Form RD 400-1 "Equal Opportunity Agreement".
OPERATING BUDGET
The applicant must adopt an operating budget that provides adequate revenues for operations and
maintenance expenses, debt service, and reserve payments after approval by RD.
RESERVE ACCOUNT
The Town must establish a Reserve Account in accordance with Form RD-NC 1942-47 Loan Resolution and
make monthly deposits of $98.40 to that account (ten percent of the RD payment). These deposits shall
be made on a monthly basis until the reserve account has an amount equal to one full RD annual payment
($11,808.00)
GRADUATION
The City will refinance the unpaid balance, in whole or in part, of its debt upon the request of the
Government if at any time it should appear to the Government that the Town is able to refinance its loan
by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates
and terms.
rd
APPLICANT CERTIFICATION
Form AD-1047, Certification Regarding Debarment, Suspension, and other Responsibility Matters -
Primary Covered Transactions, must be executed by the applicant prior to loan approval.
Form AD-1048, Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -
Lower Tier covered transactions must be executed by the Contractor(s), supplier(s), and/or dealers prior
to any purchase that exceeds $25,000.00.
Form RD 1910-11, Applicant Certification/Federal Collection Policies for Consumer or Commercial Debts,
must be executed by the applicant priorto loan closing.
DRUG FREE WORKPLACE CERTIFICATION
Prior to grant approval, the Authority will certify that they will provide a drug -free workplace, are not
involved with drugs, and will establish an educational program concerning drug abuse for employees by
executing Form AD-1049, "Certification Regarding Drug Free Workplace Requirement (Grants)."
DEBARMENT CERTIFICATION
The Town is to certify that they are not debarred or suspended for Federal Non -procurement Programs
by the use of the attached form AD-1047, "Certification Regarding Debarment, Suspension, and other
Responsibility Matters - Primary Covered Transitions". Also Form AD-1048, "Certification Regarding
Debarment, Suspension, Ineligibility, and Voluntary Exclusion - Lower Tier Covered Transactions", is
attached and is to be used by lower tier parties (builders, contractors, dealers, suppliers, manufactures,
and others) involved in transactions exceeding $25,000.00.
SYSTEM FOR AWARD MANAGEMENT and UNIVERSAL IDENTIFIER REQUIREMENTS
Requirement for System for Award Management (SAM):
a. You as the recipient must maintain the currency of your information in the SAM until you
submit the final financial report required under this award and all grants funds under this
award have been disbursed or de -obligated, whichever is later. This requires that you
review and update the information at least annually after the initial registration, and more
frequently if required by changes in your information or another award term. Recipients
can register on-line at www.som.gov).
b. You as the recipient may not make a sub -award to an entity unless the entity has provided
its Data Universal Numbering System (DUNS) number to you. Sub -recipients with sub -
awards of $25,000 or more must also have and maintain a current CCR registration.
c. Recipient Reporting: You as the recipient must report each first tiersub-awards of $25,000
or more in non -Recovery Act funds to http://www.Lrs.gov no later than the end of the
month following the month the obligation was made. As part of your registration profile
at http://www.som.aov, you must report the total compensation of the 5 most highly
compensated executives (if the award was $25,000 or more, 80% or more of annual gross
revenues subject to Transparency Act, and $25 Million of annual gross revenues subject to
Transparency Act) by end of month following month in which award was made. This
requirement also pertains to sub -recipients (if the award was $25,000 or more, 80% or
more of annual gross revenues subject to Transparency Act, and $25 Million of annual
gross revenues subject to Transparency Act).
OTHER CONDITIONS
All applicable items set out in Form RD NC 1942-13(a), "Processing Checklist", apply to this project and
become a part of the Letter of Conditions. A new property survey and Title insurance will be required.
PROCUREMENT, BIDDING, AND CONSTRUCTION
Procurement and bidding must be accomplished in accordance with the requirements of RD Instruction
1942-A, 1942.15(k). Final plans, specifications, and contract documents will be prepared in a mannerthat
meets all state requirements as well as those of Rural Development (which must be reviewed and signed
by the Rural Development State Engineer or Architect prior to issuance of a notice to proceed with
construction by the Architect). In any case where the borrower proposes to award a contract (orcontracts)
to a bidder, other than the apparent low bidder, the borrower must first obtain concurrence from the RD
State Director before taking action to award the contract (or contracts). All construction should also meet
the requirements of the American Disabilities Act (ADA), The construction plan should include a method
of inspection that is acceptable to Rural Development. Rural Development's approval and concurrence
must be obtained for all contracts, agreements, and plans and specifications.
GRANT AGREEMENT
A copy of Form RD 3570-3, "Agreement for Administrative Requirements for Community Facilities Grants,"
is included in your package for review. You will be required to execute the agreement no later than the
time of grant closing.
The grantee understands that any property acquired or improved with Federal grant funds may have use
and disposition conditions which apply to the property as provided by 7 CFR parts 3015, 3016, or 3019 in
effect at this time and as may be subsequently modified.
The grantee understands that any sale ortransfer of property is subject to the interest of the United States
Government in the marketvalue in proportion to its participation in the project as provided by 7 CFR parts
3015, 3016, or 3019 in effect at this time and as may be subsequently modified.
APPLICANT CONTRIBUTION
Applicant will contribute $-0- from its funds on hand for the development of these projects. Applicant
cash contribution will be the first funds spent on the project.
DISBURSEMENT OF FUNDS
The funds contributed by the Applicant will be the first funds disbursed, followed by Rural Development
Loan funds. The Rural Development grant funds will be disbursed after all authorized costs have been
finalized. After providing for all authorized costs, any remaining funds will be considered Rural
Development grants funds and refunded to Rural Development.
CLOSING INSTRUCTIONS
This loan will be closed in accordance with instructions issued by the USDA Office of General Counsel, the
RD State Office, and applicable RD and State Procedures.
TOBAIS FULLWOOD
Area Specialist
USDA
United States Department of Agriculture
APRIL 14, 2020
City of Dunn
401 East Broad Street
Dunn, NC 28335
Attn: William P. Elmore, Jr., Mayor
This letter establishes conditions which must be understood and agreed to by you before further
consideration may be given to your application.
This letter is not to be considered as loan and grant approval or as a representation as to the availability
of funds. The docket may be completed on the basis of a loan and grant and not to exceed the following:
Facility Loan Amount Grant Amount Total
Water and Sewer Equipment $185,000.00 $26,000.00 $211,000.00
*Emergency Generator, tractor, excavator, 2 vehicles and trailer
If Rural Development (RD) makes the loan(s), you may make a written request that the interest rate be
the lower of the rate in effect at the time of loan approval or the time of loan closing. If you do not request
the lower of the two interest rates, the interest rate charged will be the rate in effect at the time of loan
approval. The loans will be considered approved on the date a signed copy of Form RD 1940-1, "Request
for Obligation of Funds' is mailed to you. If you want the lower of the two rates, your written request
should ordinarily be submitted at least 30 calendar days before loan closing.
This letter establishes conditions that must be understood and agreed to by you before further
consideration may be given to the Application for Federal Assistance, Any changes in project cost, sources
of funds, scope of services or any other significant changes (this includes significant changes in the
Borrower's financial conditions, operation, organizations[ structure or executive leadership) in the project
or applicant must be reported to and approved by Rural Development (RD) by written amendment to this
letter. Any changes not approved by RD shall be cause for discontinuing processing of the application.
If the conditions set forth in this letter are not met within twelve (12) months from the date hereof, RD
reserves the right to discontinue processing the application.
REPAYMENT SCHEDULE
The loan will be scheduled for repayment over a period not exceeding ten (10) years. Each installment
will be due one year following the date of RD loan closing. The Installment Purchase Contract will provide
for annual installments in the amount of $21,004.00 on the loan.
SECURITY
Security will consist of an Installment Purchase Contract in the amount of $185,000.00 secured by a
Installment Purchase Agreement on the water and sewer equipment with loan funds. Financing
Rural Development • Smithfield Field Office
2736 NC Hwy 210 • Smithfield, NC 27576
Voice (919) 934-7156 ext. 4 • Fax (844) 325-6830
USDA is an equal opportunity provider and employer.
Statements and Security Agreements will also be required. Security position for the security agreements
will be a first lien position.
Prior to loan approval, the Town must obtain the last audit review letter from the Local Government
Commission. This audit must be satisfactory as it relatesto Local Government Commission Requirements.
LOCAL GOVERNMENT COMMISSION
Prior to loan approval, the applicant must provide a copy of the last audit review letter from the Local
Government Commission for the proposed loan to be obtained under the Installment Purchase Contract.
PREAUTHORIZED DEBIT PAYMENTS (PAD)
Prior to loan closing the applicant must complete U.S. Department of Treasury Form SF-5510, "Authorized
Agreement for Preauthorized Payments." This form will authorize the government to electronically debit
your Rural Utilities Service loan payment(s) from your specified bank account on a predetermined date
(date payment is due). Preauthorized Debit is accomplished through the Automated Clearing House
process providing for a cost-effective, secure, reliable, and convenient payment method, thus eliminating
the need to write a check for each payment, the expense of mailing the payment, and allows you the
certainty of when your payment will be applied. This service is provided to only qualified borrowers.
PROJECT COST
Funding from all sources has been budgeted for the estimated expenditures as follows:
Project Costs:
Water and Sewer Equipment $211,000.00
TOTALS $211,000.00
PROJECT FUNDS
The project funding is planned in the form of loans from the following sources and amounts:
Project Funding Source: Funding Amount:
RHS Loan Funds $185,000.00
RHS Grant Funds $26,000.00
Applicant Contribution $ -0-
Total from all Funding Sources $211,000.00
INSTALLMENT/PURCHASE CONTRACT
The Rural Development loan for this facility is made pursuant to provisions of Section 160A-20 of the
North Carolina General Statutes so that the Town may enter into Installment Purchase Contracts to
finance the purchase of real property. A copy of the Installment/Purchase Contract is attached hereto.
3
ORGANIZATION
The Town must provide necessary certification, comments, and recommendations concerning its
organization and authority to construct, operate, and maintain the proposed facility and meet the
requirements of the following:
A. Compliance with special laws and regulations.
B. State Population control or environmental protection agency standards.
C. Consistency with other development plans.
D. State agency regulating water rights.
E. Civil Rights Act of 1964.
F. Title IX of the Education Amendment of 1972.
G. Section 504 of the Rehabilitation Act of 1973.
H. Age Discrimination Act of 1975.
ACCOUNTING, AUDITS AND REPORTS
Records, reports and audits will be established and maintained in accordance with RD Instructions 1942-
A, Section 1942.17 (q). These requirements include an annual budget, and an annual audit completed in
accordance with 2CFR part 200 Subpart F.
INSURANCE AND BONDING
Insurance and bonding should be obtained as required by NC General Statutes and Rural Development
Instructions 1942-A, Subsection 1942.17(j)(3). Evidence of required coverage must be provided to Rural
Development priorto loan closing. Evidence that coverage is being maintained must be provided annually
thereafter.
Position Fidelity Bond: The Applicant will provide fidelity bond coverage for the positions of officials
entrusted with the receipt and disbursement of its funds and the custody of valuable property. The
amount of the bond will normally approximate the total annual debt service requirements for the Rural
Development loan(s).
Corporate Liability and Property Damage Insurance: The Applicant will provide public liability, and
property damage insurance in an amount to adequately protect the applicant from civil action arising
from the function of the applicant relative to the project.
Real Property Insurance: The applicant will provide fire and extended coverage in an amount equal to the
replacement value of the building and improvements, The United States of America will be named first
mortgagee for all real property held as security for the Rural Development loan.
Workman's Compensation Insurance: The applicant will provide adequate Workman's Compensation
Insurance if applicable.
LOAN RESOLUTION
The Town must formally adopt form RD-NC 1942-47-1, "Loan Resolution" and Form RD 400-4, "Assurance
Agreement", and Form RD 400-1 "Equal Opportunity Agreement'.
OPERATING BUDGET
The applicant must adopt an operating budget that provides adequate revenues for operations and
maintenance expenses, debt service, and reserve payments after approval by RD.
RESERVE ACCOUNT
The Town must establish a Reserve Account in accordance with Form RD-NC 1942-47 Loan Resolution and
make monthly deposits of $180.75 to that account (ten percent of the RD payment). These deposits shall
be made on a monthly basis until the reserve account has an amount equal to one full RD annual payment
($21,690.00)
GRADUATION
The Town will refinance the unpaid balance, in whole or in part, of its debt upon the request of the
Government if at anytime it should appear to the Government that the Town is able to refinance its loan
by obtaining a loan forsuch purposes from responsible cooperative or private sources at reasonable rates
and terms.
APPLICANT CERTIFICATION
Form AD-1047, Certification Regarding Debarment, Suspension, and other Responsibility Matters -
Primary Covered Transactions, must be executed by the applicant prior to loan approval.
Form AD-1048, Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -
Lower Tier covered transactions must be executed by the Contractor(s), supplier(s), and/or dealers prior
to any purchase that exceeds $25,000.00.
Form RD 1910-11, Applicant Certification/Federal Collection Policies for Consumer or Commercial Debts,
must be executed by the applicant prior to loan closing.
DRUG FREE WORKPLACE CERTIFICATION
Prior to grant approval, the Authority will certify that they will provide a drug -free workplace, are not
involved with drugs, and will establish an educational program concerning drug abuse for employees by
executing Form AD-1049, "Certification Regarding Drug Free Workplace Requirement (Grants)."
DEBARMENT CERTIFICATION
The Town is to certify that they are not debarred or suspended for Federal Non -procurement Programs
by the use of the attached form AD-1047, "Certification Regarding Debarment, Suspension, and other
Responsibility Matters - Primary Covered Transitions". Also Form AD-1048, "Certification Regarding
Debarment, Suspension, Ineligibility, and Voluntary Exclusion - Lower Tier Covered Transactions", is
wi
attached and is to be used by lower tier parties (builders, contractors, dealers, suppliers, manufactures,
and others) involved in transactions exceeding $25,000.00.
SYSTEM FOR AWARD MANAGEMENT and UNIVERSAL IDENTIFIER REQUIREMENTS
Requirement for System for Award Management (SAM):
a. You as the recipient must maintain the currency of your information in the SAM until you
submit the final financial report required under this award and all grants funds under this
award have been disbursed or de -obligated, whichever is later. This requires that you
reviewand update the information at least annuallyofter the initial registration, and more
frequently if required by changes in your information or another award term. Recipients
can register on-line at www.sam.gov).
b. You as the recipient may not make a sub -award to an entity unless the entity has provided
its Data Universal Numbering System (DUNS) number to you. Sub -recipients with sub -
awards of $25,000 or more must also have and maintain a current CCR registration.
c. Recipient Reporting: You as the recipient must report each first tiersub-awards of $25,000
or more in non -Recovery Act funds to htti)://www.fsrs.aov no later than the end of the
month following the month the obligation was made. As part of your registration profile
at http://www.som.gov, you must report the total compensation of the 5 most highly
compensated executives (if the award was $25,000 or more, 80% or more of annual gross
revenues subject to Transparency Act, and $25 Million of annual gross revenues subject to
Transparency Act) by end of month following month in which award was made. This
requirement also pertains to sub -recipients (if the award was $25,000 or more, 80% or
more of annual gross revenues subject to Transparency Act, and $25 Million of annual
gross revenues subject to Transparency Act).
OTHER CONDITIONS
All applicable items set out in Form RD NC 1942-13(a), "Processing Checklist", apply to this project and
become a part of the Letter of Conditions. A new property survey and Title insurance will be required.
PROCUREMENT, BIDDING, AND CONSTRUCTION
Procurement and bidding must be accomplished in accordance with the requirements of RD Instruction
1942-A, 1942.18(k). Final plans, specifications, and contract documents will be prepared in a mannerthat
meets all state requirements as well as those of Rural Development (which must be reviewed and signed
by the Rural Development State Engineer or Architect prior to issuance of a notice to proceed with
construction by the Architect). In any case where the borrower proposes to award a contract (or contracts)
to a bidder, other than the apparent low bidder, the borrower must first obtain concurrence from the RD
State Director before taking action to award the contract (or contracts). All construction should also meet
the requirements of the American Disabilities Act (ADA). The construction plan should include a method
of inspection that is acceptable to Rural Development. Rural Development's approval and concurrence
must be obtained for all contracts, agreements, and plans and specifications.
GRANT AGREEMENT
A copy of Form RD 3570-3, "Agreement for Administrative Requirements for Community Facilities Grants,"
is included in your package for review. You will be required to execute the agreement no later than the
time of grant closing.
The grantee understands that any property acquired or improved with Federal grant funds may have use
and disposition conditions which apply to the property as provided by 7 CFR parts 3015, 3016, or 3019 in
effect at this time and as may be subsequently modified.
The grantee understands that any sale ortransfer of property is subject to the interest of the United States
Government in the market value in proportion to its participation in the project as provided by 7 CFR parts
3015, 3016, or 3019 in effect at this time and as may be subsequently modified.
APPLICANT CONTRIBUTION
Applicant will contribute $-0- from its funds on hand for the development of these projects. Applicant
cash contribution will be the first funds spent on the project.
DISBURSEMENT OF FUNDS
The funds contributed by the Applicant will be the first funds disbursed, followed by Rural Development
Loan funds. The Rural Development grant funds will be disbursed after all authorized costs have been
finalized. After providing for all authorized costs, any remaining funds will be considered Rural
Development grants funds and refunded to Rural Development.
CLOSING INSTRUCTIONS
This loan will be closed in accordance with instructions issued by the USDA Office of General Counsel, the
RD State Office, and applicable RD and State Procedures.
TOBAIS FULLWOOD
Area Specialist
DUNK„rlh „olinn
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AIFAmericaGl 1,i �11,,,, All -America
1 1 City Council Agenda Form
1111.
® beating Date: April 3, 2020
1989 * 2013
JA
SUBJECT TITLE: Resolution Authorizing Submittal of an Application to Request Fund
Additional Supplemental Appropriations Disaster Relief Act of 2019
Presenter: Heather Adams, Utilities Director and
Eddie Staley, WithersRavenel
Department: Public Utilities
Attachment: X Yes No
Description: Funding Resolution
Public Hearing Advertisement Date:
PURPOSE:
To approve a resolution stating that the City intends to pursue an application with the State Water
Infrastructure Authority for the purpose of seeking funds from the Additional Supplemental Appropriations
Disaster Relief Act of 2019 (ASADRA) to relocate/replace critical drinking water infrastructure out of the 100-
year floodplain. Systems who meet the floodplain criteria may receive up to a maximum of $3,000,000 in
principal forgiveness funding, and systems who meet the resiliency criteria may receive up to a maximum of
$250,000 in principal forgiveness funding.
BACKGROUND:
The City's raw water pump station and critical electrical components are located within the 100-year
floodplain and during Hurricane Florence, the Cape Fear River rose to within a couple feet of destroying this
critical infrastructure. The City will seek ASADRA funding for the relocation/replacement of critical raw water
pump station infrastructure from the 100-year flood plain to a site outside the 100-year flood plain. In
addition, approximately 3,000 linear feet (LF) of 16-inch asbestos cement raw water line will be replaced. The
sizing of the new infrastructure will be based on current and future demands.
BUDGET IMPACT:
WithersRavenel will submit the application on behalf of the City. Their engineering fee is $5,000 and will be
taken out of the 2019-2020 Water/Sewer Operating Budget.
RECOMMENDATION/ACTION REQUESTED:
Motion to approve the resolution adopting the City's intent to request funding through the Additional
Supplemental Appropriations Disaster Relief Act of 2019 in order to relocate and replace critical drinking
water infrastructure out of the 100-year flood plain.
north Carolina
URDUNN
city of dunn
POST OFFICE BOX 1065 ® DUNN, NORTH CAROLINA 28335
(910) 230-3500 < FAX (910) 230-3590
www.dtmn-nc.org
RESOLUTION BY GOVERNING BODY OF APPLICANT
Mayor
William P. Elmore Jr.
Mayor Pro Tern
Chuck Turnage
Council Members
J. Wesley Sills
Ato it L. Gaulden
Frank McLean
Billy Tart
Dr. David L. Bradham
City Manager
Steven Neuschater
WHEREAS, The Federal Clean Water Act Amendments of 1987 and the North Carolina the Water
Infrastructure Act of 2005 (NCGS 159G) have authorized the making of loans and
grants to aid eligible units of government in financing the cost of construction of
drinking water treatment works, and
WHEREAS, The City of Dunn has a need for and intends to construct a drinking water treatment
works project and will relocate/replace critical raw water pump station infrastructure
from the 100 year flood plain to a site outside the 100 year flood plain. In addition,
approximately 3,000 linear feet (LF) of 16-inch abestos cement raw water line will be
replaced.
WHEREAS, The City of Dunn intends to request state (loan or grant) assistance for the project,
NOW THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
DUNN:
That the City of Dunn, the Applicant, will arrange financing for all remaining costs of
the project, if approved for a State (loan or grant) award.
That the Applicant will adopt and place into effect on or before completion of the
project a schedule of fees and charges and other available funds which will provide
adequate funds for proper operation, maintenance, and administration of the system and
the repayment of all principal and interest on the debt.
That the governing body of the Applicant agrees to include in the loan agreement a
provision authorizing the State Treasurer, upon failure of the (unit of government) to
make scheduled repayment of the loan, to withhold from the (unit of government) any
State funds that would otherwise be distributed to the local government unit in an
amount sufficient to pay all sums then due and payable to the State as a repayment of
the loan.
That the Applicant will provide for efficient operation and maintenance of the project
on completion of construction thereof.
That William P. Elmore, Jr., Mayor, the Authorized Official, and successors so titled,
is hereby authorized to execute and file an application on behalf of the Applicant with
the State of North Carolina for a (loan or grant) to aid in the construction of the project
described above.
DUNN
All -America City
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w4ere commune 7nafferrs
1989 * 2013
That the Authorized Official, 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 the Applicant 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 3`d day of April 2020, in the City of Dunn, North Carolina.
William P. Elmore, Jr., Mayor
ATTEST:
Tammy Williams, City Cleric
CLOSED SESSION CRITERIA
(Specify one or more of the following permitted reasons for closed sessions)
Move that we go into closed session in accordance with:
[N.C.G.S. 143-318.11(a)(1)]
Prevent the disclosure of privileged information
Under the North Carolina General Statutes or regulations.
Under the regulations or laws of the United States.
[N.C.G.S. 143-318.11(a)(2)]
Prevent the premature disclosure of an honorary award or scholarship
[N.C.G.S. 143-318.11(a)(3)]
Consult with the Attorney
To protect the attorney -client privilege.
To consider and give instructions concerning a potential or actual claim,
administrative procedure, or judicial action.
To consider and give instructions concerning a judicial action titled
vs
[N.C.G.S. 143-318.11(a)(4)]
To discuss matters relating to the location or expansion of business in the
area served by this body.
[N.C.G.S. 143-318.11(a)(5)]
To establish or instruct the staff or agent concerning the negotiation of the
price and terms of a contract concerning the acquisition of real property
located at
(OR)
To establish or instruct the staff or agent concerning the negotiations of
the amount of compensation or other terms of an employment contract.
[N.C.G.S. 143-318.11(a)(6)]
To consider the qualifications, competence, performance, condition of
appointment of a public officer or employee or prospective public officer or
employee.
(OR)
To hear or investigate a complaint, charge, or grievance by or against a
public officer or employee.
[N.C.G.S. 143-318.11(a)(7)]
To plan, conduct, or hear reports concerning investigations of alleged
criminal conduct.
School violence 143-318.11(a)(8) and terrorist activity (9).
Item 7
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