2014 DRINKING AND CLEAN WATER STATE REVOLVING FUND PRE- APPLICATION WEB CONFERENCE.
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2014 DRINKING AND CLEAN WATER STATE REVOLVING FUND PRE-
APPLICATION WEB CONFERENCE
2
Introduction
• Welcome• Project Oversight– Luis Farias, DWSRF Project Coordinator: (512) 475-4816– Mark Evans, CWSRF Project Coordinator: (512) 463-8510– Scot Foltz, Director: (512) 475-2070
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Introduction
• Webinar Information– All participants microphones and
telephones are muted.– You can ask questions via the questions
menu option on the GoToWebinar Menu.– If we are not able to answer your question
during the presentation we will follow-up with a Q & A document to all participants.
Additional questions may be sent to the e-mail address below and will be answered following the webinar.Pre_Application_Conference_Requests@twdb.texas.gov
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Introduction
• Agenda– General Information• State Revolving Fund Program Information • Application Process/Closing
– Drinking Water SRF Program Information– TCEQ FMT Requirements/Assistance– Clean Water SRF Program Information– Application Requirements & Components– Additional Resources
STATE REVOLVING FUND GENERAL INFORMATION
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General Information
• State Revolving Fund Program Information– Invitation Process - First-come/First-served• Applications received between noon August 15 and
noon August 30, 2013 will be considered in rank order.
– Invited Projects List– Readiness to Proceed (RTP)• updated RTP form can be sent to
rtp_updates@twdb.texas.gov
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General Information
• Application Process– Applications will be accepted beginning August 15, 2013 at 12:00
PM– Processing of applications will begin August 30, 2013 at 12:00 PM– Application must be administratively complete to begin the
technical review– Technical Review: approx. 60 days, then scheduled for a Board
meeting
• Closing Process– Document review 60-90 days from Board commitment– All funds escrowed; interest begins to accrue
2014 DRINKING WATER STATE REVOLVING FUND
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DWSRF Program
• Funding Options– Planning, Acquisition and Design Funding (PAD)– Construction Funding– Pre-design Funding
• Loan Terms– 10 Years maximum for PAD– 30 Years maximum for Disadvantaged
Communities– 20 Years maximum for all others
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DWSRF Program • Loan Origination Fee– 2.25%– Origination assessed only on loan amount
• Interest Rates– Thomson-Reuters Municipal Market Data (MMD) scale– 1.25% below market
Example for July 19, 2013 Maturities Average Market Rate
Average TWDB Rate
Drinking Water SRF(AA rated) 20 3.41% 2.16%
Drinking Water SRF(Non-rated) 20 4.47% 3.22%
Actual rates will vary depending on length, time of closing and structure. Rates are for illustrative purposes only. Contact TWDB staff at (512) 463-6690 for lending rate scale or other inquiries.
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DWSRF Program
• Additional Subsidy– Disadvantaged Communities - up to 30%, 50%, or
70% Loan Principal Forgiveness– Green Projects or Green Project Components - up
to 15% Loan Principal Forgiveness– Very Small Systems (up to 1,000 persons) - up to
100% Loan Principal Forgiveness (maximum of $200,000)
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DWSRF Program
• Outlay Reporting Process– Release of funds for costs incurred– Required outlays• PAD (Quarterly)• Construction (monthly)
– Invoices
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DWSRF Program
• Special Funding Conditions– Davis-Bacon Act– Compliance with Crosscutting Authorities• Environmental - National Environmental Policy Act (NEPA)• Social policy - Disadvantaged Business Enterprises (DBE)• Economic - Contract with debarred or suspended firms
– Financial, Managerial and Technical (FMT) Assessment
– State Water Plan Consistency (New Water Source)
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DWSRF PROGRAMQUESTION & ANSWER
TEXAS COMMISSION ON ENVIRONMENTAL QUALITY
FMTREQUIREMENTS & ASSISTANCE
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TCEQ FMT
• Additional Requirements for Application– Financial, Managerial and Technical (FMT) Assessment
Report by TCEQ– FMT report is required to close the loan– Need some help?
• TCEQ currently contracts with Texas Rural Water Association to provide water and waste water utilities FMT assistance
– Assistance is free and on site– Wide variety of assistance available
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TCEQ FMT
• F is for Financial – Rate setting– Funding sources– Budgets
• T is for Technical – Water loss– Disinfection– Sampling
• M for Management – Hiring – Planning– Paperwork
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TCEQ FMT
• How Does It Work? To make a referral:– Fill out the request form, its on line, and/or• www.tceq.texas.gov/utilities/fmt
– Call, write, or email TCEQ’s Stacy Foster• Phone (512) 239-3105 • Email stacy.foster@tceq.texas.gov• Address P.O. Box 13087, MC-153
Austin, Texas 78701-3087
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TCEQ FMTQUESTION & ANSWER
2014 CLEAN WATER STATE REVOLVING FUND
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CWSRF Program
• Program Changes to CWSRF in 2014– Increase in amount of interest rate subsidy• 155 basis points for equivalency projects (Federal
funds)• 120 basis points for non-equivalency projects (State
funds)
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CWSRF Program
• Funding Options– Planning, Acquisition and Design Funding (PAD)
• In the CWSRF, funding for land acquisition is eligible only if land purchased is integral to the treatment process or used for the ultimate disposal of residues resulting from such treatment. This includes land that is used specifically to treat water (e.g., effluent disposal fields, facultative lagoons, etc.) and excludes land for WWTP sites, easements, etc.
– Construction Funding– Pre-design Funding
• Loan Terms– 10 years maximum for PAD– 30 years maximum for Construction (no disadvantaged status
requirement)
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CWSRF Program
• Equivalency vs. Non-Equivalency– Equivalency projects
o Receive funding from the Federal capitalization granto Lower interest rates (1.55% below market rate)o Disadvantaged subsidy in form of loan forgivenesso Follow Federal process including Disadvantaged Business Enterprise (DBE),
Federal crosscutters and Federal forms, additional planning and design requirements
– Non-equivalency projectso State fundso Interest rate of 1.20% below market rateo No DBE, Federal crosscutters
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CWSRF Program
• Additional Subsidy– Disadvantaged Communities - up to 30%, 50%, or
70% Loan Principal Forgiveness– Green Projects or Green Project Components - up
to 15% Loan Principal Forgiveness
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CWSRF Program
• Loan Origination Fee– 1.85%– Origination assessed only on loan amount
• Interest Rates– Thomson-Reuters Municipal Market Data (MMD) scale– 1.55% (equivalency) or 1.20% (non-equivalency) below
market
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CWSRF Program
Example for July 19, 2013 Maturities Average Market Rate
Average TWDB Rate
Clean Water SRF Non-Equivalency (AA rated) 20 3.41% 2.21%
Clean Water SRF Non-Equivalency (Non-Rated) 20 4.47% 3.27%
Clean Water SRF Equivalency (AA rated) 20 3.41% 1.86%
Clean Water SRF Equivalency (Non-rated) 20 4.47% 2.92%
Actual rates will vary depending on length, time of closing and structure. Rates are for illustrative purposes only. Contact TWDB staff at (512) 463-6690 for lending rate scale or other inquiries.
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CWSRF Program
• Outlay Reporting Process– Release of funds for costs incurred (reimbursement,
for equivalency projects)– Release of funds for milestone (non-equivalency
projects)– Required outlays
• PAD (Quarterly)• Construction (monthly)• Invoices
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CWSRF PROGRAMQUESTION & ANSWER
Application Requirements & Components
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Application Requirements
• Two Hard Copies– Double Sided– One Marked Original
• One Electronic Copy– CD/DVD– Flash/Thumb Drive
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Application Requirements
• Applications will be accepted beginning August 15, 2013 at 12:00 PM CT
• Applications will not be accepted by E-mail
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Application
• Standard Application Form– Used for all funding programs– Skip questions specific to other funding programs
http://www.twdb.texas.gov/financial/applications
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Application Components
• Part A - General– A7g: Applicant’s PRIMARY contact– A11: Additional funds chart– A12: DUNS number and System for Award
Management (SAM) Registration
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PART A - GENERALQUESTION & ANSWER
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Application Components
• Part B - Financial– B2: Five year comparative system operating
statement– B3: Current average residential usage and rate
information– B15 Proforma; Three different options depending
on proposed repayment
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B2 – Five-year Operating Statement Illustration
2011 2010 2009 2008 2007
Revenues
Customer Charges $647,644
Miscellaneous Revenues $7,002
Total Revenues $654,646
Expenses
Salaries $125,407
Payroll Taxes and Retirement $20,001
Office Supplies and Expense $4,931
Total Expenses $506,095
Net Revenues $148,551
Water customers 731 745 758 770 762
Wastewater customers 673 689 699 714 703
1. Five years of information.2. Include only revenues that are pledged for repayment.3. Don’t include non-cash expenses, like depreciation.4. Don’t include developer’s contributions and transfers from other funds.
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B15 – Pro forma IllustrationYear Net Revenues Existing Debt
ServiceProposed Debt
ServiceRevenues After
Debt Service2013 $148,551 ($73,160) $75,391
2014 $148,551 ($73,285) ($35,100) $40,166
2015 $148,551 ($72,365) ($50,100) $26,086
2016 $148,551 ($72,445) ($49,515) $26,591
2044
1. Include every year from loan closing until final payment.2. Net revenues same as the most recent in B2 table.3. Net revenues only increase in a year due to rate increase, footnote increase amount.4. This is illustrative, interest rates and principal amounts change.
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PART B – FINANCIALQUESTION & ANSWER
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Application Components
• Part C - Legal– C1 & C2: Legal citations of applicable laws– C3: Provide a clear statement of pledge– C5: Make approved application amount “up to” a
certain dollar level
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Application Components
• Part C - Legal– C8: List ALL consultants
• Draft contracts are required prior to commitment/Executed contracts prior to closing.
• Contracts must be awarded according to Disadvantaged Business Enterprises (DBE) rules.
– C12: Attach a Site Certificate (ED-101) documenting ownership interest if all necessary land and easements for the project have already been acquired. If acquisition of property is still needed, provide a certification of the legal power and authority to acquire the property and whether TWDB funding is being requested for acquisition costs.
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PART C – LEGALQUESTION & ANSWER
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Application Components
• Part D - Engineering– D1: Preliminary Engineering Feasibility Data
a) A description and purpose of the project, including existing facilities.
b) A map of the service area and drawings as necessary to locate and describe the project.
c) A project schedule including proposed timing of funding needs for phases of the project. Schedule should include:i. Closingii. Planning Complete (Environmental and Engineering)iii. Construction Start First Contractiv. Construction End Last Contractv. No. of Proposed Contractsvi. DWSRF applicants must complete a Projected Draw Schedule
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Application Components
• Part D - Engineering– D1: Preliminary Engineering Feasibility Data
d) A copy of current and future populations and projected water use or wastewater flows.
e) A description of alternatives the applicant has considered (or to be considered during detailed planning) and reasons for the selection of the project proposed.
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Application Components
• Part D – Engineering (cont)– D1: Preliminary Engineering Feasibility Data
f) Construction Funding - Provide Engineering Feasibility Report in accordance with guidance TWDB-0555 (DWSRF) or TWDB-0556 (CWSRF)
– D2: Budget• Budget form TWDB-1201
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Application Components
• Part D – Engineering (CWSRF only)– D11: The applicant must be a Designated
Management Agency (DMA) for wastewater collection and treatment.• Form WRD-210• Required as per Section 208 of the Federal Water
Pollution Control Act, as amended, and submitted to TCEQ for inclusion in the Texas Water Quality Management Plan
– D12: List all major permits necessary for project
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PART D – ENGINEERINGQUESTION & ANSWER
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Application Components
– Part E - Environmental• E5: If an environmental determination has already been
issued for the project, attach a copy of the determination and all supporting documents to E5.
• E3: Requesting a Categorical Exclusion? Please see:– DWSRF: See 31 Texas Administrative Code 371.42.– CWSRF Equivalency: 31 TAC 375.62– CWSRF Non-equivalency: 31 TAC 375.52
• E1: If E3 – E5 do not apply, please provide a discussion of any known permitting, social, or environmental issues that may affect the evaluation of the project alternatives or implementation of the chosen project.
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Application Components
– Part E – Environmental – Timing and Budget• PAD: Planning, Acquisition, Design Funding
– Planning phase: Environmental Review must be completed before funds can be released for Acquisition & Design.
• Construction Funding– If PAD through TWDB then Environmental Review is already
complete
• Pre-Design Funding (Planning through Construction)– Is project CE-able? Finding from another agency? Can you
provide a complete environmental report?
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PART E – ENVIRONMENTALQUESTION & ANSWER
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Application Components
• Part F - Planning and Water Conservation– F1: Water Conservation Plan and Utility Profile (
TWDB-1965) • 5 & 10 year targets in gallons per capita per day (GPCD)
– Total GPCD, Residential GPCD, and Water Loss in GPCD
• Plans should be developed after and based on completed Utility Profile and Water Loss Audit
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Application Components
• Part F - Planning and Water Conservation (cont)– F4: Water Loss Audits (WLA)
• Need to have the current required WLA on file• Additional information may be requested based on certain
water loss issues
– F3: Water Use Survey• Need to have submitted an annual water use survey for the
three years prior to the application date
– Consistency Review• Is the project consistent with approved regional and state
water plans
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PART F PLANNING & WATER CONSERVATIONQUESTION & ANSWER
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Application Components
• Part G: Green Projects and Green Project Components– Green Subsidy for DWSRF: $802,755– Green Subsidy for CWSRF: $915,315– Categorical or Business Case– Green worksheets can be submitted prior to the application– Green Categories: Energy Efficiency, Water Efficiency,
Environmentally Innovative, Green Infrastructure– Green Guidance: TWDB-0161– Green Worksheets:
• DWSRF – TWDB-0163• CWSRF – TWDB-0162
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PART G – GREEN PROJECTS & GREEN PROJECT COMPONENTSQUESTION & ANSWER
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Application Components• Part H: Disadvantaged Business Enterprise
Requirements– Applies to DWSRF and CWSRF Equivalency Only– DBE Coordinator: Rene Gonzalez (512) 463-2634,
rene.gonzalez@twdb.texas.gov – Six affirmative steps– Publication requirements– Applies to project consultants as well as
contractors/subcontractors– Instructions and guidance available on TWDB
website
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Application Components• Part H: Disadvantaged Business Enterprise
Requirements– TWDB-0215: Entity’s acknowledgement of Good Faith
Efforts and Fair Share Goals. THIS FORM IS REQUIRED WITH YOUR APPLICATION.
– TWDB-0216: Entity’s Documentation of Good Faith Efforts
– TWDB-0217: Consultant/Prime Consultant/Prime Contractor’s acknowledgement of Good Faith Efforts and Fair Share Goals
– TWDB-0373: List of awarded contracts for the project
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PART H – DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTSQUESTION & ANSWER
Additional Resources
Clean Water State Revolving Fund Application TutorialDrinking Water State Revolving Fund Application Tutorial
Separate meetings should be scheduled to discuss project specifics and answer questions.
Questions and AnswersAdditional questions can be e-mailed to:
Pre_Application_Conference_Requests@twdb.texas.govLuis Farias, DWSRF Project Coordinator: (512) 475-4816Mark Evans, CWSRF Project Coordinator : (512) 463-8510Scot Foltz, Director: (512) 475-2070
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