USDA Rural Development Water & Environmental Programs WEP

Maine Rural Water Association Conference

PRESENTED BY:

Bob Nadeau, Community Programs Director

RD in Rural Maine Fiscal Year 2014

Community Programs $48,151,135 Business Programs $20,568,670 Housing Programs $336,727,072

Total: $405,446,877

FY 14’ RUS Obligations

Recipients

Bingham, Town of Boothbay Region Water District Danforth, Town of Eagle Lake Water & Sewer District Gardiner, City of Hartland, Town of Indian Township Oxford, Town of Stonington Water Company Thomaston, Town of Van Buren, Town of Wiscasset Water District Total FY 14

Loan

$ 118,000 $ 2,200,000 $ 345,000 $ 300,000 $ 579,000 $ 1,600,000 $13,334,000 $ 757,000 $ 1,000,000 $ 662,000 $ 750,000 $ 21,645,000

Grant

$ 177,000 $ 1,200,000 $ 275,000 $ 230,000 $ 241,000 $ 4,800,000 $ 249,400 $10,336,000 $ 443,000 $ 396,000 $ 200,000 $ 450,000 $18,997,400

WEP Programs Offered

• Water and Waste Disposal Loan/Grants • Solid Waste Management Grants (SWM) • Distance Learning and Telemedicine Grants (DLT) • Technical Assistant and Training Grants (TAT) • Native American Set-Aside Grants • Emergency and Imminent Community Water Assistance Grants (ECWAG) • Broadband • High Energy Cost Grants • MRWA – Circuit Rider Program • SEARCH, Predevelopment, & Planning Grants

Water and Waste Disposal Loans & Grants •

Purpose:

Funds are used to provide infrastructure for rural areas with priority to projects that have Health and Sanitary Hazards, or failed to meet Clean Water or Safe Drinking Water Standards.

•

Eligibility:

Funds are available to public entities, such as municipalities, counties, special-purpose districts, and Native American Tribes. Funds may also be made available for corporations operated on a not-for-profit basis.

•

Where:

Rural areas and to cities and towns with a population of 10,000 or less.

• User Cost, similar system cost, and other credit availability control eligibility.

• WEP funding is exempt from Davis Bacon Wage Rates.

• Current Interest rates range from 2.375%, 3.250%, & 4.000%.

Rural Utilities Service

Eligible Projects for Loan and Grant • • • • • To construct, enlarge, or extend Water, Sewer, Solid Waste Disposal, and Storm Water Collection Systems Fees & Engineering Related Equipment Land, Easements, Permits Costs prior to application may not be approved

Funds may not be used for:

1. Loan/Grant finder fees 2. New combined storm and sanitary sewer facilities 3. Facilities normally provided for a business, industrial user, or developer 4. Equipment or purposes not directly related to the facility being funded

RD Grants

• Income Eligibility – Interest rate and grant eligibility is dependent on MHI and user costs. • Maine MHI = $49,754.

• From 80% to 100% of MHI ($23,850 to $49,754) statutory max. 45% grant.

• Under 80% of MHI – statutory max. 75% grant.

• All grant eligibility is dependent on user costs and similar system rates.

What Do I Need:

1. Number of users and equivalent users (EDU) info with new users.

2. Preliminary Engineering Report with projected O&M and total project cost.

3. Environmental review.

4. Basic Application Forms with Charter and By-Laws.

How to Expedite the Process:

1.

2.

3.

4.

5.

PER, PER, PER {Sections 2. d and 6. f) – We strongly encourage the project engineer/applicant discuss the financial section with RD prior to submission.

Environmental Report water crossings, etc.

– include all of the proposed project scope and start early especially if flood zone, Updated financial audits /financials as soon as possible with maturity dates of existing loans.

Easements/land purchases bidding.

– need to identify these early to avoid delays at obligation and construction Health Hazard letters/back up documentation early as possible. Send us draft if you aren’t sure.

How to Expedite the Process: ( con’t)

6.

7.

PER – include any additional project scope that could be funded if there are remaining funds left.

SAM registration. If not already registered start process early. If registered, be sure to renew annually, do not let the registration expire.

8.

9.

Organizational Documents. These need to be sent to OGC (our lawyers) approval. Submit early and complete.

PER Alternatives analysis section. Provide clear, concise discussion for all practical alternatives, not just the recommended alternative.

10. Submit early in the year. Avoid the busier times known as “pooling” dates.

Program Advantages

• • • • • • Fees. We have none (no application fee, processing fee, closing fees, or prepayment penalties).

Grants. Based upon the MHI of the community, grant funds may be available.

Davis Bacon. RD is not subject to Davis Bacon requirements.

Hands-on. Our Specialists and Engineer works directly with the applicant/engineer throughout the entire process.

Cash Flow. With 40 year financing the annual payment is lower (when not restricted by state statute).

Open application cycle throughout the year. No funding “windows” to hit/remember.

MAINE COMMUNITY PROGRAMS STAFF:

STATE OFFICE:

967 Illinois Ave., Suite 4, Bangor, ME 04401-2767 TEL: (207) 990-9121 FAX: 1.855.589.1098

TDD/TTY: (207) 942-7331

State Director: Program Director: Loan Specialist: Civil Engineer: Architect: CP Technician: VIRGINA MANUEL

([email protected])

ROBERT J. NADEAU

( [email protected]) BOBBI J. CROOKER ( [email protected]

) SCOTT T. EMERY ([email protected]

) BILL SIEMERLING ([email protected]) ANNE EUGLEY ([email protected])

Lewiston Area Office

254 Goddard Road Lewiston, Maine 04240 Telephone: (207) 753-9400 Fax: 1.855.602.4104

Contact Us

Rural Development State Office

967 Illinois Avenue, Suite 4 Bangor, Maine 04401-2767 Telephone: (207) 990-9121 Fax: 1.855.589.1098

Bangor Area Office

1423 Broadway, Suite 3 Bangor, Maine 04401 Telephone: (207) 990-3676 Fax: 1.855.589.1101

Scarborough Area Office

306 US Route 1, Suite B1 Scarborough, Maine 04074 Telephone: (207) 883-0159 Fax: 1.855.603.3575

Conclusion

We look forward to the opportunity to work with you to enhance the quality of life for the residents in rural Maine For more information on our programs visit our website at http://www.rurdev.usda.gov/me/ Information on our program is available in Spanish at http://www.rurdev.usda.gov/rd/pubs/factsheets.html

Rural Development Open & Free Competition Requirements Scott Emery, P.E., State Engineer USDA Rural Development

Rural Development CAVEATS: • Not going to debate the merits of DI vs PVC vs HDPE • Please don’t shoot the messenger • Each consulting engineer’s specs are different based on project specific criteria

Rural Development OUTLINE: • Regulation / Guidance Memo • Examples restricting competition • Specifications • Bid schedule development • When less than normal competition is acceptable • Selection of materials • Pipe bidding requirements • Common PVC considerations / concerns • Questions

Rural Development REGULATION (7 CFR 1780.70(b)): • All procurement transactions, whether by sealed bids or negotiation and without regards to dollar value, shall be conducted in a manner that provides maximum open and free competition. Procurement procedures shall not restrict or eliminate competition.

Rural Development GUIDANCE MEMORANDUM: • A guidance memorandum on open and free competition was re-issued to USDA RD State Engineers May 17, 2012 • Replaces previously issued 2002 document • Available on request

Rural Development EXAMPLES RESTRICTING COMPETITION: • Placing unreasonable requirements on firms in order for them to qualify to do business • Requiring unnecessary experience and excessive bonding • Noncompetitive pricing practices between firms or affiliated companies • Organizational conflicts of interest • Specifying only a brand name product • Any arbitrary action in the procurement process

Rural Development SPECIFICATIONS: Owners procurement procedures will ensure that all solicitations: 1. Incorporate a clear and accurate description of the technical requirements for the material, product or service to be procured. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a “brand name or equal” description may be used to define the performance or other salient requirements of a procurement. The specific feature of the name brands which must be met by the offeror shall be clearly stated; and 2. Clearly specify all requirements which offerors must fulfill and all other factors to be used in evaluating bids or proposals.

Rural Development SPECIFICATIONS: • In specifying materials, the owner and its consultant will consider all materials normally suitable for the project commensurate with sound engineering practices and project requirements.

• The Agency shall consider fully any recommendation made by the owner concerning the technical design and choice of materials to be used for a facility.

• If the Agency determines that a design or material, other than those that were recommended should be considered by including them in the procurement process as an acceptable design or material in the water or waste disposal facility, the Agency shall provide such owner with a comprehensive justification for such a determination.

Rural Development SPECIFICATIONS: • Specifications, bidding and contract documents must not prevent bidders or contractors from proposing an equal product during bid period or after award of contract.

• Equal products are evaluated by Engineer and they have sole discretion to determine whether it meets the requirements of an equal.

Rural Development BID SCHEDULE: • Bid schedules shall not name specific brand products or material types unless pre-selection was accomplished or less than normal competition was approved by the Agency.

• Bid schedules set up around a given brand name product with additive or deductive alternates for other brands are unacceptable.

• It is also unacceptable to require bidders to list brands in the bidding documents that they intend to use if awarded the contract.

Rural Development LESS THAN NORMAL COMPETITION: Bid schedules and specifications may list only one type of material or brand name of equipment if the Agency concurs in writing : 1.

With an owner’s written request that project requirements are unique; 2. That it is necessary for interchangeability of parts or equipment; 3. That a process is only available from a single source and the need for the process was demonstrated in the Preliminary Engineering Report through either technical justification or cost analysis; 4. That only one type of material will meet technical requirements; 5. That an equipment type required to meet technical requirements of the project is available from only one source; or 6. That regulatory authorities require the use of proprietary item in a permit

Rural Development SELECTION OF MATERIALS: • In specifying materials, the owner and its consultant will consider all materials normally suitable for the project commensurate with sound engineering practices and project requirements.

• The Agency shall consider fully any recommendation made by the owner concerning the technical design and choice of materials to be used for a facility.

• If the Agency determines that a design or material, other than those that were recommended should be considered by including them in the procurement process as an acceptable design or material in the water or waste disposal facility, the Agency shall provide such owner with a comprehensive justification for such a determination.

Rural Development SELECTION OF MATERIALS: • Example – In a case where HDPE, DI or PVC pipe are all technically feasible for a proposed water system and there is no Agency approved justification to limit design to a specific pipe type the specifications and bidding documents must allow all materials

Rural Development PIPE BIDDING REQUIREMENTS: • Contractor must be able to select pipe type • Cannot put different pipe types on the bid form • This ensures that the lowest cost, technically feasible material will be used

Rural Development RECENTLY BID PROJECTS: PVC Pipe Option Chosen by Contractor

Town

New Gloucester Norridgewock Dexter Wiscasset Jay Livermore Falls

Approx.

Length

9,275’ 9,010’ 4,150’ 3,500’ 4,500’ 2,300

Pipe Size Pipe Price / lf

8” 8” 8” 12” 10” 8” $26.35

$45.30

$85 $73 $46 $45

Total Project Cost / lf

$86 $62 $138 $133 $83 $85

Rural Development PIPE COST DIFFERENCES:

Pipe Size

8” 10” 12”

Ductile Iron $/LF HDPE $/LF PVC $/LF

$24.00

$32.00

$40.00

$18.00 (10”) $9.00

$22.00 (12”) $14.00

$33.00 (14”) $19.00

Rural Development PVC PIPE: • AWWA C900 • DR 18 • 235 psi working pressure • 20 foot lengths • Cast iron O.D.

Rural Development COMMON PVC CONSIDERATIONS: • Bedding • • • Stone Gravel Sand • Backfill – select native material • Services • Saddles • Direct tap DR 18 & DR 14 in sizes 6” – 12” (haven’t seen this yet) • Pressure testing – water only • Tracer wire • Detectable warning tape

Rural Development TRACER WIRE: • Originally used in gas industry • Used on non-conductive mains and services • 10 to 12 gauge wire with polyethylene coating • Secured to pipe at frequent intervals (10’) • Access points approximately every 500’ (tracer box) • Continuity testing required

Rural Development TRACER WIRE:

Rural Development COMMON PVC CONSIDERATIONS: • Gasket integral to pipe • Special bit for PVC taps • • Do not overbell the pipe – stop at the insertion line • Cold weather impacts insertion force needed to bell pipe • Bar & block assembly • Railroad/high-lift jack

Need to follow manufacturers installation instructions

Rural Development TRACER WIRE BOX:

Rural Development COMMON PVC CONSIDERATIONS: • Gasket integral to pipe • Special bit for PVC taps • • Do not overbell the pipe – stop at the insertion line • Cold weather impacts insertion force needed to bell pipe • Bar & block assembly • Railroad/high-lift jack

Need to follow manufacturers installation instructions

Properly inserted spigot

Improperly inserted spigot

Rural Development COMMON PVC CONCERNS: • Petroleum contaminated soils • • Concerns for permeation when there is free product in the soil Gaskets are integral to PVC pipe and cannot simply be swapped for nitrile gaskets like D.I. pipe • Phthalates – NSF letter from January 24, 2011 that states “Rigid PVC pipe and fittings certified by NSF do not contain phthalates or phthalate plasticizers.”

Rural Development FINAL THOUGHTS: • Market driven process for technically feasible materials • Process is allowing more pipe to go into the ground at the same cost • USDA funds can be used for equipment & spare parts specific to pipe material • Follow manufacturers instructions

Rural Development QUESTIONS?

• Contact information

Scott Emery, P.E.

State Engineer USDA Rural Development 967 Illinois Avenue Bangor, ME 04401 207-990-9121 [email protected]