BURNSVILLE TOWN COUNCIL Special Meeting - Monday, April 14, 2025, 4pm Burnsville Town Hall On Monday, April 14, 2025, at 4pm, the Burnsville Town Council with Mayor Russell Fox and Councilors Denise Collier, Randy Ollis, and Bill Wheeler present, held a regular meeting at the Burnsville Town Hall. Councilor Judy Buchanan was unable to attend. Also in attendance were town staff members Heather Hockaday, Leslie Crowder, and Chad Fox. Mayor Fox called the meeting to order at 4:09pm. Adoption oft the agenda - Randy Ollis moved to adopt the agenda as presented. Denise Collier seconded the motion, which carried. All were in agreement. Approve Engineering RFQ selections and Consulting Services RFP - Town Manager Heather Hockaday explained the need for engineering and consulting services on the projects resulting from Hurricane Helene. She said that WithersRavenel's response for engineering services scored the highest on the Pine Swamp Wastewater Treatment Plant projects, McGill Associates scored the highest for engineering on the Raw Water Intake project, and GMC scored the highest for engineering on the Bolens Creek Redundant Raw Water Line project. Mrs. Hockaday asked for the Council's permission to move forward with negotiations with each firm. Bill Wheeler made a motion to approve the engineering selections and authorize Manager Hockaday to negotiate agreements with the selected firms and bring any contracts back to Council for their approval. Randy Ollis seconded the motion, which carried. All were in agreement Mrs. Hockaday reviewed the Scoring Committee results for twelve Consulting Service RFPS. Hunt, Guillot & Associates, LLC (HGA) received the highest score and recommendation. Bill Wheeler made a motion to approve the consulting service selection and authorize Manager Hockaday to negotiate agreements with HGA and bring any contracts back before Council for their approval. Randy Ollis seconded the motion, which carried. All were in agreement Update on DEQ bridge loan application - Mrs. Hockaday described the urgency to get the Town off of the temporary water intake system and how important iti is to get the new intake started. She said that DEQ has made more money available and explained the $1.2 million increase to go along with the previous $3 million and $200,000 grant. Along with getting the new intake started, the money could also help pay what is already owed to contractors since no FEMA money has been received yet. Denise Collier made a motion to approve Resolution #2025.04.14.01, accepting the State Emergency Bridge Loan offer of $4,280,060.00, authorize Mayor Fox to sign the resolution, and authorize Manager Hockaday to sign the loan documents. Bill Wheeler seconded the motion, which carried. All were in agreement. Budget Work Session General Fund - Mrs. Hockaday and Finance Officer Leslie Crowder reviewed a draft of the FY 25-26 budget, reflecting projections based on previous meetings held with department heads. Mrs. Crowder led a line by line review of the budget, beginning with general fund revenues, saying that tax collection has gone well and that sales, vehicle, and fire taxes were all higher. April 14, 2025 1 Expenses were reviewed. Mrs. Crowder highlighted increased cost in insurance, labor, and utilities. She also mentioned the Town Hall roof project, contributions to OPEB (Other Post-Employment Benefits), and Community Promotions grants. The new Police Department budget included additional money to purchase a new car and increases to workers comp and maintenance lines. The Fire department, Streets budget, Powell Bill, and slight increases to the Sanitation agreement tied to CPI were all reviewed. Water/Sewer Fund - Water and sewer rate increases were discussed. Mrs. Crowder reviewed how different increases could affect revenues and Mrs. Hockaday mentioned the rate's effect on grant awards. It was noted that engineers have recommended a 7% increase. The Council requested additional information and wanted to wait until the full Council was present to make a decision. Notable expenses included overtime from the storm, potentially reimbursed by FEMA, furnishings for the soon to be renovated Police/Public Works building on N Main, and an increase in water treatment chemicals as a result of river conditions as storm cleanup continues. Employees Mrs. Crowder mentioned COLA (Cost of Living Adjustment) for employees. Mrs. Hockaday recommended a 5% raise for all department heads and compensation for employees with additional certifications and/or responsibilities outside of their job description. A 2.5% increase for all hourly employees was also proposed. Adjourn - With there being no further business, Mayor Fox moved to adjourn the meeting at 5:49pm. Denise Collier seconded the motion, meeting adjourned. E - X - F Tkmu Aoy J. Chad Fox, Towh Clerk T. Russell Fox, Mayor C CARO April 14, 2025 2 Docusign Envelope ID: 796F8EB2A461-8A1-3E24A78583BDC8F STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY DIVISION OF WATER INFRASTRUCTURE Funding Offer and Acceptance Legal Name and Address of Award Recipient Project Number(s): HEL-0004 Town of Burnsville P.O. Box 97 Burnsville, North Carolina 28714 Unique Entity ID Number: F2M506D8H3L4 Funding Program Drinking Water Additional Amount for Previous Total Total Offered Stormwater Funding Increases Wastewater DEQ Water Infrastructure Emergency Bridge $1,280,060 $3,000,000 $4,280,060 Loan - Hurricane Helene DEQ Water Infrastructure Technical Assistance $ 200,000 $ 200,000 Grant - Hurricane Helene State Reserve Earmark (S.L. 2023-134) American Rescue Plan Act--Choose an item. Project Description: Total Financial Assistance Offer: $ 4,480,060 Emergency Bridge Loan for Hurricane Helene Damages Closing Fee: $0 For Loans Interest Rate: 0% Per Annum Maturity: June 30, 2030 or Upon receipt of federal or state disaster relief, whichever comes first Pursuant to North Carolina Session Law 2024-53+ The applicant is eligible under State law, The project is eligible under State law, and The project has been approved by the Department of Environmental Quality as being an emergency situation in a County declared as a disaster county as a result of Hurricane Helene, and eligible under Session Law 2024-53. The Department of Environmental Quality, acting on behalf of the State of North Carolina, hereby offers the financial assistance described in this document. For The State of North Carolina: Shadi Eskaf, Director, Division of Water Infrastructure DocuSigned by: North Carolina Department of Environmental Quality ned 4/10/2025 6300A872077B405-: Signature Date On Behalf of: Town of Burnsville Name of Representative in Resolution: T Russell Fok Title (Type or Print): Mayor 1, 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 Financial Award Offer and will comply with the attached Assurances and the Standard Conditions. LA 4- 14-2025 Signature Date Docusign Envelope ID: 2796F6E8-2461-461-4BA1-93E2-4A78563BDCBF STANDARD CONDITIONS & ASSURANCES FOR EMERGENCY LOAN = Hurricane Helene Emergencies Project Recipient: Town of Burnsville Project Number(s): HEL-0004 Conditions 1. Any funds received from the Emergency Loan shall only be used to cover eligible costs arising from damage caused by Hurricane Helene to drinking water or wastewater systems located in the affected area. 2. Eligible costs under the Emergency Loan are limited to those allowed under Session Law 2024-53, Section 4C.7(e). 3. The Recipient is responsible for paying for the costs ineligible for Division of Water Infrastructure funding. 4. All funds awarded to the Recipient from the Emergency Loan must be expended or encumbered by October 31, 2028. 5. The Recipient agrees to repay the full amount disbursed in this Emergency Loan to DEQ when due in accordance with this Agreement. Per Section 4C.7.()(2) of Session Law 2024-53, the total balance oft this loan shall be due upon the earlier of: a. Receipt of federal or state disaster relief by the Recipient; or b. June 30, 2030. 6. The Recipient agrees to establish and maintain a financial management system that adequately accounts for revenues and expenditures. 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 years following completion of the project. 7. The Recipient shall provide any documentation requested by DEQ to show that (1) funds requested by Recipient are necessary to repair damages caused by Hurricane Helene and (2) Emergency Loan funds are used for an authorized purpose. 8. Partial disbursements on this loan will be made promptly upon request, subject to adequate documentation of incurred eligible costs. The Recipient 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 Recipient is expected to uphold its contract obligations including those regarding timely payment. 9. Failure to comply with local government audit requirements may result in delays in disbursement of the funds to the Recipient. 10. Pursuant to Session Law 2024-53, Section 3.1(b), the Recipient is required to use best efforts and take all reasonable steps to obtain alternative funds to cover the losses or needs for which Emergency Loan funds are provided, including any available federal or state disaster aid. 11. The Recipient will promptly notify DEQ of the existence and status of any award for federal or state disaster aid to cover the costs for which this loan was issued. 12. Pursuant to Session Law 2024-53, Section 3.1.(c), ift the Recipient receives federal or state disaster aid to cover the same losses or needs for which this Emergency Loan was issued, the Recipient shall use the federal or state funds to promptly repay the Emergency Loan. Docusign Envelope ID: 2796F6E8-2461-461-48A1-93E2-4A78563BDCBF 13. Recipient shall assist and fully cooperate with DEQ in meeting its reporting obligations to OSBM under Section 3.1(g) of Session Law 2024-53. 14. The Recipient will strive to acquire goods and services from historically underutilized business vendors. Assurances 15. The construction oft the project, including the letting of contracts in connection therewith, conforms to the applicable requirements of State and local laws and ordinances. 16. The Recipient will provide and maintain adequate engineering supervision and inspection. Resolvtion No: 2025.04.14.0 RESOLUTION BY GOVERNING BODY OF RECIPIENT EMERGENCY BRIDGE LOAN DWI PROJECT NO.: HEL-0004 WHEREAS, the North Carolina General Assembly has enacted Session Law 2024-53 to assist eligible units of government in meeting their Hurricane Helene disaster-related water infrastructure needs, and WHEREAS, the North Carolina Department of Environmental Quality has offered a State Emergency Bridge Loan in the amount of Four Million Two Hundred and Eighty Thousand and Sixty Dollars and no/100 $4,280,060.00) to repair wastewater and/or drinking water systems, and WHEREAS, the Town of Burnsville intends to perform said project(s) in accordance with the terms of the Agreement with the NC Department of Environmental Quality. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF BURNSVILLE: That the Town of Burnsville does hereby accept the State Emergency Bridge Loan offer of $4,280,060.00. That the Town of Burnsville does hereby give assurance to the North Carolina Department of Environmental Quality that any Conditions or Assurances contained in the Award Offer will be adhered to. That the Mayor or Town 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 assurance as contained above; and to execute such other documents as may be required by the Division of Water Infrastructure. Adopted this the 4thday of April, 2025, in a duly called and noticed Special Meeting of the Burnsville Town Council at 2 Town Square, Burnsville, North Carolina. TOWN OF BURNSVILLE By: ineu ty T. Russell Fox, Mayor ATTEST: OF 2n J. Chad Fox, Fown Clerk Docusign Envelope ID: 2796F6E8-2461-461-48A1-93E24A78563BDCBF JOSH STEIN Governor D. REID WILSON Secretary SHADI ESKAF NORTH CAROLINA Director Environmental Quality April 10, 2025 Heather Hockaday, Town Manager Town of Burnsville P.O. Box 97 Burnsville, North Carolina 28714 Subject: Amended Letter of Intent to Fund and Funding Offer Increase Transmittal Emergency Bridge Loan and Technical Assistance Grant for Hurricane Helene Damages Project No.: HEL-0004 Dear Ms. Hockaday: The Division of Water Infrastructure (Division) has received your local government unit's (Recipient's) Request for Emergency Loan Funding to repair damages to your drinking water and/or wastewater infrastructure resulting from Hurricane Helene. The Division is offering up to $4,280,060, repayable at 0% interest from the DEQ Water Infrastructure Emergency Bridge Loan Program as established in Session Law (S.L.) 2024-53 Section 4C.7 and a Technical Assistance Grant of $200,000 for engineering assessment, planning and design work associated with the project scope ofwork. Projects must meet applicable State laws, rules and guidance for the expenditure ofthese funds. If additional emergency loan funds are needed, please submit another Request for Emergency Loan Funding to the Division with a project scope and project budget demonstrating the need for additional funds. Eligible Costs: DEQ Water Infrastructure Emergency Bridge Loan (Emergency Loan) funds can only be used to cover eligible costs arising from damage caused by Hurricane Helene to the drinking water and/or wastewater system oft the Recipient. Eligible costs under the Emergency Loan are limited to those allowed under Session Law 2024-53, Section 4C.7, to conduct emergency repairs to restore operational capacity as defined in Session Law 2024-57, Section 4C.7.(b)(5b) until receipt of federal or state disaster relief and for any other purpose specifically provided by an act of the General Assembly. Eligible costs under the Technical Assistance Grant are limited to engineering assessment, planning and design work associated with the scope ofthe project work. Ifthere are questions about the eligibility of potential costs, please contact the Division's s project manager for discussion prior to incurring the costs. Emergency Loan Terms: There are no fees for the Emergency Loan or Technical Assistance Grant. Per S.L. 2024-53, Section 4C.6, this Emergency Loan does not require the approval of the Local Government Commission that is required under NC G.S. 159G-40. Pers.L.202453,Setiwn4Cly-le-imegemsylamncassmmus:be-emeumbered. bythe Division-by October 31, 2028. The Recipient must submit all requests for Emergency Loan disbursements for North Carolina Department ofEnvironmental Quality I Division of Water Infrastructure DEQ3 5121 N. Salisbury Street I 1633 Mail Service Center I Raleigh, North Carolina 27699-1633 919.707.9160 Docusign Envelope ID: 2796F6E8-2461-461-48A1-93E2-4A78563BDCBF Page 2 of3 eligible costs to the Division by October 31, 2028. The Division will not make any disbursements on the Emergency Loan for which eligible disbursement requests were not received from the Recipient by that date. Per S.L. 2024-53, Section 4C.7.()(2), the Emergency Loan matures upon the earlier of the receipt of federal or state disaster reliefl by the Recipient or June 30, 2030. The Emergency Loan repayments are not amortized for the Recipient by the Division. The Recipient is responsible for repaying the full balance of the Emergency Loan to the Division by June 30, 2030 or upon receipt of federal or state disaster relief, whichever comes first. Alternative Funding: The Recipient should and is encouraged to obtain alternative funds to cover the losses or needs for which the Emergency Loan funds are provided, including any available federal or state disaster aid (e.g., FEMA Public Assistance). Alternative funds, including federal or state disaster relief funds, received by the Recipient to cover the same losses or needs for which this Emergency Loan was issued must be used to repay the Emergency Loan. Project Scope and Budget: Upon acceptance and execution oft the Emergency Loan offer, the Recipient must submit a preliminary scope and budget to the Division via the Laserfiche link below. The preliminary scope and budget must be received by the Division at the time or prior to the request for first disbursement of Emergency Loan funds. The preliminary scope and budget can be amended by the Recipient as the repairs and project progresses. Documented, eligible costs incurred by the Recipient prior to the execution ofthe funding offer can be included in the preliminary scope and budget and in the disbursement requests. Please note that the accompanying funding offer is being issued before the Division has received a preliminary scope and budget from the Recipient. Disbursement ofTechnical Assistance Grant Funds: Theses funds will be disbursed first to cover the Recipient's costs related to engineering assessment, planning and design for this project prior to the emergency loan funds. Funds will be disbursed as invoices for incurred engineering costs are submitted by the Recipient, which may be submitted prior to or after paying the engineers for the incurred costs. Only costs eligible under Session Law 2024-53 may be covered by these funds. Disbursement of Emergency Loan Funds: These funds will be disbursed to the Recipient after relevant costs are incurred and invoices are submitted to the Division. Funds will be disbursed as invoices for incurred pre-construction and construction costs are submitted by the Recipient during construction/repars, which may be submitted prior to or after paying the contractors for the incurred costs. Only costs eligible under Session Law 2024-53 may be covered by these funds. Electronic Document Submittal through Laserfiche: Recipients should submit all project documents via the supporting documentation submittal form located at htps/edoss.degnegov/fomDV-Doumemt-Upload-Fom. The link and a list of frequently asked questions can also be accessed from the Division's II Have Funding page, https/www.deg.ne.gov/aboutdivisions/vater-infrastructure/-hhave-funding. Upon detailed review of the project during the funding process, it may be determined that portions of your project are not eligible for funding. North Carolinal Department of Environmental Quality I Division of Water Infrastructure DEQ3 5121 N. Salisbury Street I 1633 Mail Service Center I Raleigh, North Carolina 27699-1633 919.707.9160 Docusign Envelope ID: 2796F6E8-2461-461-48A1-93E2-A78563BDCBF Page 3 of3 Acceptance ofthe Emergency Loan Offer Increase: To accept this Emergency Loan funding offer, please email the Division project manager within two weeks of receipt of this letter with a statement accepting this offer. Upon acceptance, please submit the items below via the Laserfiche link: 1) One (1) copy ofthe original Offer and Acceptance Document executed by the Authorized Representative ofthe project, along with the Conditions and Assurances. Please retain a copy for your files. 2) A Resolution adopted by the governing body accepting the funding offer and making the applicable Conditions and Assurances contained therein. (Sample copy attached). Declination of the Emergency Loan and' Technical Assistance Grant Offer: To decline this Emergency Loan and Technical Assistance Grant funding offer, please email the Division project manager within two weeks of receipt oft this letter with a statement declining this offer. An email from the Authorized Representative declining the loan will result in the rescission ofthe Emergency Loan funding offer. Division's Project Manager: If you have any questions concerning this matter or require general assistance, please contact the Division's project manager assigned to your project: Renee Parkman, P.E. either by telephone at 704.235.2203 or by email at meepukman@dgmegow Sincerely, DocuSigned by: GwEy 6300A872077B4C5.. Shadi Eskaf, Director Division of Water Infrastructure Enclosures: Offer and Acceptance Document Assurances & Conditions Resolution to Accept Funding Offer (suggested format) Cc: Heather Hockaday, Town Manager hhockaday@townotbumsville.com) Mike Dowd, P.E., McGill Associates mike.dowd@megilassociates.com) Renee Parkman, P.E. (DWI, via DocuSign) Mark Hubbard, P.E. (DWI, via DocuSign) DWI Administrative Unit (DWI, via DocuSign) Anita Spencer (DWI, via DocuSign) DiODMIminoisidusaw LF Project File (COM - LOIF) DW-Agreement ID: 2000080231 North Carolina Department of Environmental Quality I Division of Water Infrastructure DEQ3 512N N. Salisbury Street I 1633 Mail Service Center I Raleigh, North Carolina 27699-1633 Quality 919.707.9160