DDW-2024-008275

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
Tim Davis
Director

Drinking Water Board
Kristi Bell, Chair
Eric Franson, P.E., Vice-Chair
Dawn Ramsey
Justin Maughan
Corinna Harris
Jeff Coombs
David O. Pitcher
Blake Tullis, Ph.D.
Kimberly D. Shelley
Tim Davis
Executive Secretary

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
September 1, 2023

The Honorable Noreen Johnson, Mayor [e-mail]
Bicknell Town Water System
PO Box 96
Bicknell, Utah 84715

Subject: ARPA Grant Authorization and Procedures for Committal of Funds; Bicknell Town, System
#28001, Loan #3F2019A

Dear Mayor Johnson:

On August 30, 2023, the Drinking Water Board (hereinafter called the "Board") authorized an
American Rescue Plan Act (ARPA) Grant of $100,000 to Bicknell Town (hereinafter called the
"Recipient") for emergency spring line repairs (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] or [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:

Agency Share % of Total

Drinking Water Board (ARPA Grant) $100,000.00 59%
System contribution $69,500.00 41%

Total Project Cost $169,500.00 100%

As Recipient of this ARPA Grant, you will need to complete the following items before the Board will
disburse funds:

Noreen Johnson
September 1, 2023
Page 2

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 submit project
documents via [e-mail] per https://deq.utah.gov/drinking-water/general-plan-approval-
process for the expeditious assignment and 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 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.
Noreen Johnson
September 1, 2023
Page 3

d. The bidding process and contract documents for Project construction have the proper and
legal format and comply with the Utah Code Annotated 1953 (including, but not limited to
Title 34, Chapter 30).
e. The Recipient's attorney shall furnish to the Board a legal opinion that the completed and
executed construction contract, the performance and payment bonds, and evidence of
necessary insurance, are legal and binding and in compliance with 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 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 Heather Pattee or me at (801) 536-
4200.

Sincerely,

DRINKING WATER BOARD

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

MJG/hp

Enclosure:
Recipient Agreement

cc: Kelly Chappell, Ensign Engineering and Land Surveying, [e-mail]
John Chartier, DEQ District Engineer, [e-mail]
DDW Finance