DDW-2024-007812

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144830 • Salt Lake City, UT 84114-4830
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
State of Utah

Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF DRINKING WATER
Nathan Lunstad
Director

Drinking Water Board
Kristi Bell, Chair
Eric Franson, P.E., Vice-Chair
Dawn Ramsey
Justin Maughan
Corinna Harris
Jeff Coombs
Shazelle Terry
Blake Tullis, Ph.D.
Kimberly D. Shelley
Nathan Lunstad
Executive Secretary

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor

Lyle Goulding [e-mail]
Orderville Town Water System
PO Box 165
425 E State
Orderville, Utah 84758

Subject: ARPA Grant Authorization and Procedures for Committal of Funds; Orderville
Town Water System, System #13008, Loan #3F2038

Dear Lyle Goulding:

On April 30, 2024, the Drinking Water Board (hereinafter called the "Board") authorized
an American Rescue Plan Act (ARPA) Grant of $479,384 to Orderville Town Water System
(hereinafter called the "Recipient") to replace aging pipeline as well as install new pipeline to
create an extension and connect a loop to the main waterline. Orderville Town is currently in the
process of repairing the well, pump, and column piping (hereinafter called the "Project").

Funds will be deposited into the escrow account mentioned in item 2 after executing the enclosed
Recipient Construction Agreement. Please return a copy to Linda Ross at [e-mail].

If the Project does not proceed according to the project schedule, the Board may withdraw project
authorization, so that other projects ready to proceed can obtain necessary funding. The financial
assistance agreement must be executed by December 31, 2024. All authorized funding must
be expended, and final reimbursement requests received by November 30, 2026.

Based on the information presented to the Board, the following sources of funding will be available
for the construction of the Project:

May 14, 2024
Lyle Goulding, Orderville

Page 2

Agency Share % of Total

Drinking Water Board (ARPA Grant) $479,384 98%
System contribution $10,316 2%

Total Project Cost $489,700 100%

As Recipient of this ARPA Grant, you will need to complete the following items before the Board
will disburse funds. All documents referenced below will be provided after the listed requirements
have been met:

1. The Recipient must get a Unique Entity ID from SAM.gov. Once the entity record has been
validated, submit a copy of the Unique Entity ID to the Division of Drinking Water.

2. Consistent with requirements of the law, the actual payment of funds by the Board to the
Recipient will not take place until the Board has assurance the funds will be used for Project
costs and the Project will actually be completed. To assure this, all monies to be expended
on the Project, including the Recipient's share shall be placed in an escrow account
supervised by the Recipient and the Board. The Recipient will need to select an escrow
company and submit a copy of the proposed escrow agreement to the Board for review. In
general, the Board will make incremental advances into the account on a monthly or
quarterly basis. A copy of the proposed escrow agreement shall be submitted to the Board
and the Board’s Attorney for review.

Disbursements from the escrow account will be reviewed and approved by the Division of
Drinking Water. A Disbursement Request Form must be completed and submitted along
with each request. Disbursement amounts must be authorized in writing by the
Recipient and the State prior to any funds being released from the escrow account.
Please refer to the attached reimbursement instruction sheet.

3. The Recipient's contract with its engineer shall include the cost of developing the plans
and specifications and the construction inspection of the Project. The contract shall be
submitted to the Division of Drinking Water for review. (This requirement is to assure the
Board that adequate and appropriate arrangements are made for completing and inspecting
the project within the guidelines set by the Board.)

4. The project engineer shall submit, in accordance with R309-500, plans and
specifications, bidding documents, and general conditions to the Division of Drinking
Water for review and Plan Approval prior to soliciting bids on the Project. The
engineer shall contact Bernie Clark of the Permitting Section, Division of Drinking Water
to arrange for the expeditious review of the plans and specifications. Any changes to
approved plans and specifications prior to finalizing the Recipient Agreement must be
reviewed and approved by the Division of Drinking Water. These funds cannot be
disbursed until after the bid opening has occurred and a copy of the bid tabulation has
May 14, 2024
Lyle Goulding, Orderville

Page 3

been reviewed by the Division to assure that sufficient funds are authorized to complete the
Project. If substantial changes in the Project are required, they must be considered by the
Board for committal of additional funds.

5. Rights-of-way and easements for construction, and operation and maintenance of the
Project shall be acquired. The Recipient, through its engineer, shall furnish its attorney a
right-of-way map showing the location of all sources, buildings, structures, pipelines, and
other pertinent facilities not only in the Project but for the entire water system. This map
will be signed by the engineer and presiding officer of the Recipient and a copy provided
to the Recipient's attorney as a basis for the certification described below.

6. The Recipient's attorney shall certify the following items in writing to the Board:

a. The Recipient is a legal entity.

b. The Recipient has valid legal title to the rights-of-way both for the project to be
constructed and the remainder of the existing water system.

c. The Recipient has established the ownership of water rights to any and all water
used in the system and such rights are summarized with associated water right
numbers.

d. The bidding process and contract documents for the construction of the Project
have the proper and legal format and are in compliance with the Utah Code
Annotated 1953 (including, but not limited to Title 34, Chapter 30).

e. After the completed and executed construction contract, along with the
performance and payment bonds and evidence of necessary insurance, has been
reviewed by the Recipient's attorney, the Recipient's attorney shall furnish to the
Board his legal opinion that all of such items are legal and binding and in
compliance with the Utah Code.

7. As a condition of this loan, the Board will require the Recipient to complete a Water
Conservation Plan. If your system has less than 500 connections, the plan must be
submitted to the Division of Drinking Water prior to loan closing. If your system has more
than 500 connections, the plan must be submitted to the Division of Water Resources for
review and approval, and the approved plan must be adopted (completing the Certification
of Adoption) prior to loan closing. If the Recipient has already adopted such a plan, that
plan and its certification of adoption may be submitted to the Division of Drinking Water
for verification.

8. In compliance with Utah Code Annotated 9-8-404 and 36 CFR 800.3(g), the project
engineer shall submit a report to the Division of Drinking Water that summarizes
information about the presence of and potential impacts to cultural resources in the area of
May 14, 2024
Lyle Goulding, Orderville

Page 4

potential effects. The report can be submitted using the Utah SHPO Short Cultural
Resources Inventory Report Form. See attached Reference Page for document location.

To facilitate the timely completion of the financial assistance requirements outlined in this letter,
the Recipient and its attorney and engineer shall submit to the Division of Drinking Water all the
items listed above prior to seeking committal of funds from the Board and no later than 30 days
before fund disbursement. As much as possible, this information shall apply to the Project in
general to allow a single review.

These requirements may not cover all the matters pertaining to the Project. We anticipate that
specific questions relating to your Project will arise, and we are confident that a cooperative effort
can resolve any issues.

If you have any questions concerning these requirements, please contact Cadence Hernandez at (385) 515-
2381 or me at [phone].

Sincerely,

DRINKING WATER BOARD

Michael J. Grange, P.E.
Assistant Executive Secretary

MJG/ch/lr

Enclosure:
Recipient Agreement

cc: William Prater, Esq., William L. Prater, LLC, P.O. Box 71368, SLC, UT 84171, [e-mail] Carol Lamb, Orderville Town Water System, [e-mail] Joseph Phillips, Sunrise Engineering, [e-mail] Cadence Hernandez, Division of Drinking Water, [e-mail] Paul Wright, DEQ District Engineer, [e-mail] DDW Finance
May 14, 2024