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Council shifts funding after EPA classifies earmark as grant; no new city money requested
Summary
Cayce Council approved moving a $540,000 EPA award to cover engineering for sewer system planning and hydraulic modeling after the agency said federal procurement requirements (Davis‑Bacon) prevented the grant from covering ongoing construction; the construction budget for Pump Station One will instead draw on ARPA and reserve funds.
Staff reported that an earlier federal earmark received through Senator Graham was later identified as an EPA grant subject to federal procurement requirements such as Davis‑Bacon, and those requirements could not be applied retroactively to a construction contract already underway. As staff explained, "there is no way to incorporate these requirements post bid and after construction began," which prevents the EPA grant from covering the construction portion of Pump Station One.
To keep projects moving without requesting new money, staff recommended using the $540,000 EPA grant to fund engineering services for the sewer system master plan and hydraulic model; in turn, funds originally budgeted for engineering can be shifted to construction of Pump Station One and paid from ARPA and the water/sewer capacity reserve. Council moved and approved the funding-source adjustment; no additional appropriation was requested.
Council members publicly thanked Senator Lindsey Graham and staff for navigating the federal funding requirements. The city manager reported Pump Station One construction remains underway but procurement and delivery timelines pushed completion to mid-November.
Why it matters: The change preserves federal grant funds for eligible uses while reallocating local reserves to construction to avoid schedule delays and to remain compliant with federal procurement rules.
