Transcript DWTRF Status Report - West Virginia Association of Counties

DRINKING WATER
TREATMENT REVOLVING FUND
(DWTRF) LOAN PROGRAM
STIMULUS EDITION
Region 3Workshop
March 24, 2009
Presented by
Bob DeCrease
Bureau for Public Health
DWTRF Loan Program
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What is the DWTRF Loan Program
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39 loans totaling $66,463,309 provided to-date for
water projects
9 pending loans totaling $34,341,360 committed
Over $20 Million requested in loans for next year
funding
Will be awarded $8.4 Million EPA funds end of
September
Affordable design loans are available through the
DWTRF
Deferred repayment loans available to make projects
affordable
DWTRF Loan Program
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Typically obtains $5,650,000 in EPA funds matched with $1,650,000
of state infrastructure funds for a total of $7,300,000 annually
Repayments of existing loans add $2,400,000 per year
Projects must be approved by the Infrastructure Council
15% of funds must go to small systems (<10,000 people)
30% of funds must go to disadvantaged systems
(User rates > 1.50% MHI /4,000 gallons)
Water systems must apply to the DWTRF Program to be placed on the
Project Priority List (PPL). PPL project ranking is based on
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public health benefit (0 to 50 pts.)
compliance with SDWA (0 to 20 pts.)
affordability of the project (0 to 30 pts.)
DWTRF Loan Program
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Standard DWTRF Loan rates and terms
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Disadvantaged water systems (User rates > 1.50% MHI/4,000 gal)
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Non-disadvantaged water systems (User rates < 1.50% MHI)
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0% interest plus 1% administrative fee for 30 years
2% interest plus 1% administrative fee for 20 years
No interest charged during construction
Repayments start 3 to 6 months after project completion
A Capacity Development Assessment to determine system’s financial,
managerial, and technical capacity is completed
No penalties for early payoff of loan
Disadvantage Business Enterprise Good Faith Efforts must be
followed
DWTRF Loan Program
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American Recovery and Reinvestment (ARRA) affect on
the DWTRF Loan Program
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One time additional loan funds totaling $19,250,000 will be
provided for water projects
$250,000 reserved for project administration
ARRA PPL contains 84 projects requesting over $214 Million
Loan commitments will be based on the PPL rankings but projects
will be by-passed pending “readiness to proceed” status
A Readiness to Proceed checklist has been established to aid the
by-pass process
Water systems will be responsible to update the checklist when an
additional milestone is completed
Goal of the ARRA is to get projects to construction as soon as
possible
DWTRF Loan Program
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American Recovery and Reinvestment (ARRA)
affect on the DWTRF Loan Program (Continued)
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At least 50% of the ARRA must be provided in the
form of grants, debt forgiveness, or negative interest
At least 20% of the ARRA must be to water systems
that qualify for Green Infrastructure
Projects funded by ARRA must only use American
made iron, steel, and manufactured goods
Loan closings for all ARRA projects must be
completed by February 17, 2010
Davis-Bacon Act wage rules at a minimum will apply
to all funding assistance
DWTRF Loan Program
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American Recovery and Reinvestment (ARRA)
affect on the DWTRF Loan Program (Continued)
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Loan terms will focus on negative interest rates
Negative interest rates will provide flexibility without
the burden of federal grant requirements
DWTRF funds may replace other agency funds such as
Infrastructure Council or Small Cities Block Grants
The administrative fee (1%) will be waived for
disadvantaged projects
Design loans will not be eligible for ARRA funds
DWTRF Loan Application
DWTRF Health/Compliance
DWTRF - Priority Ranking Worksheet
System Name:
Project Title:
Mark an X by any/all that describe your systems specific issues.
Acute health hazards such as:
Chronic health hazards such as:
Nitrate or nitrite MCL exceedance
Lead or Copper MCL exceedance
Turbidity or microbiological
exceedance
Turbidity or microbiological exceedance
No filtration for surface water plants
Primary organic or radiological MCL
exceedance
No disinfection for water system
New/revised treatment technologies
Water outages lasting 1 week or
longer
Water outages lasting several days up to 1
week
DWTRF Health/Compliance
Periodic health hazards such as:
Potential health hazards such as:
Low chlorine residual concentration
Poor water quality or limited quantity
Occasional primary MCL exceedance
New source to augment existing sources
Water outages lasting 1 day to several
days
Install/upgrade waste disposal facilities
Bringing facilities up to current
design standards
Regulatory compliance such as:
Needed system improvements such as:
Administrative orders, agreements,
statutes, or regulatory deadlines
Obsolete, undersized, malfunctioning, or
leaking equipment or lines
Sanitary survey recommendations,
NPDES permits, new regulations, or
design standards
Poor aesthetic quality of water (e.g. iron,
manganese, taste, & odor)
Future proposed regulations
Extensions with documented cases of
fecal coliform
Description of Public Health/Compliance Issues & Project Scope To Correct the Issues:
DWTRF Ready to Proceed
Check the appropriate answer for each item:
Complete
Incomplete
Not
Applicable
FONSI or CE issued by Health Department (Attach cover letter)
Preliminary Title Opinion (Attach if complete)
Final Title Opinion (Attach if complete)
Health Department Permit (Attach if complete)
Design Loan / Grant (Attach summary page(s) of agreement)
80% of User Agreements (Attach listing of all users and status of agreement)
Other Committed Funds (Attach Commitment letters)
List Sources and Amounts:
1
2
3
Rule 42 covering the project costs (Attach CPA cover letter for Rule 42)
Rate Ordinance / 19A Rate Case (Attach ordinance or PSC final order)
PSD Boundary Adjustment (Attach authorization letter from County Commission)
Contract Bids advertised (Send copy of advertisement). If not, when are bids
planned to be advertised: ______________________
Contract Bids in hand (Send copy of bid tabs). If not, when will bids planned to be
in hand:______________________
What is DBE?
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EPA funding requires compliance with the Good Faith Efforts for
Disadvantaged Business Enterprises (DBE) (includes Women,
Minority, and Small companies)
What are the DBE basic requirements
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Break the project or contract into smaller parts that could be subcontracted
Obtain a list of DBE firms that perform the work in those smaller parts
Provide DBE firms 2 weeks advance notice of advertisements
Keep track of all DBE communications
Evaluate any submitted DBE proposals for low bidder
It is not a requirement that a DBE firm must be used
The objective is to provide DBE firms the opportunity to participate in
federal funds
It is suggested that the Regional Planning & Development Councils be
used to assist in procurement of professional services
DWTRF DESIGN LOANS
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Emphasis for agency funding is now “Being Ready To Go”
100% of Design Engineering is eligible
Bond Counsel is eligible up to $10,000
100% of Land/Right of Way, Legal, and Accounting fees are eligible
Project Administration is eligible up to $10,000
Same loan terms and requirements as the construction program apply
Can enable a project to proceed quickly to construction
Every year of construction delay costs the water system 10 to 15%
additional capital cost due to inflation
For More Information
Bob DeCrease
Capitol and Washington Streets
1 Davis Square, Suite 200
Charleston, WV 25301-1798
(304) 558-6749
[email protected]
Website: http://www.wvdhhr.org/oehs/eed/i&cd