2015 Drinking Water State Revolving Fund (DWSRF)

Program Orientation

Welcome!

February 10, 2015

2

Presented by:

Steve Dunk (Public Works Board)

Cathy Brockmann (Contracts Administration Unit)

3

What’s New? Overview of the 2015 DWSRF Handbook – *Two changes to the handbook (“Super Circular” & IGEA)

*key points

*valuable resource

*usable attachments What’s Next? Contacts Q & A

Today’s Agenda

4

20 Year Contract

Loan repayment terms have changed from 24 years to 20 years. Exceptions to the 20 year contract will be provided to those receiving loan forgiveness.

Repayment

An interest-only payment will be due the first October after contract execution while the second year will begin both principal and interest for the remaining of the loan term. If you do not draw any funds in the first year, your payment in year two will be both interest and principal.

18 Month Notice to Proceed

Projects must issue a Notice to Proceed (NTP) within 18 months of contract execution. The Public Works Board (Board) will need to approve extensions that go beyond 18 months.

What’s New for 2015?

5

2 CFR 200 Subpart F Federal Audit (“Super Circular”) will apply to your project if your city, town or water system has spent more than $750,000 of any federal money within your fiscal year. This is a new audit requirement that replaces the Circular A -133 (which had a $500,000 trigger).

 American Iron and Steel

Congress passed a law that requires water systems to use U.S. steel and iron products for projects funded in part or in full by a DWSRF loan. The requirement applies to loan agreements signed on or after January 17, 2014. You can find the specific Buy American Iron and Steel language in HR3547, Consolidated Appropriations Act 2014.

What’s New cont…

6

Section 1 - Getting Started

Section 2 - Contract Amendments & Implementation checklist

Section 3 - Record Keeping & Reporting

Section 4 - Financial Management

Section 5 - Procuring Professional Services

Section 6 – Environmental & Cultural Review

Section 7 – Procuring Construction Contracts

Section 8 – Investment Grade Efficiency Requirement

Section 9 – Managing Your Construction Project

2015DWSRF Handbook Overview

“Your Partners”

Department of Health - Eligibility, scoring, rating & ranking, scopes of work…

Public Works Board – Underwriting of the DWSRF loan, calculating affordability index (AI), coordinating contract data

Contracts Administration Unit – Contract training, monitoring compliance, reimbursement, contract amendments, contract preparation

Starting on pg. 3 7

Section 1: Getting Started

8

A 1% loan fee will be administered to borrowers at the time of contract execution (if applicable)

Notice to Proceed must be issued within 18 months of contract execution

Projects must be completed within 48 months of contract execution

Annual loan payments will begin the first October after contract execution.

Establishment of adequate rates and reserves during the term of the loan as required by your Water System Management Plan

Section 1: Cont…

9

10

Any scope of work amendment will need Department of Health (DOH) approval before proceeding i.e. extending the footprint, depth of the pipe…

Extensions to your Notice to Proceed and Project Completion can be requested but will require DOH and Public Works Board approval.

Contract check list – great tool & guide (pg. 18 - 20)

Starting on pg. 15 11

Section 2: Contract Amendments & Implementation checklist

Good Record keeping is essential in order to document compliance.

A suggested method is listed (pg. 25)

Each request for payment must be accompanied with a Project Status Report

The borrower must submit DOH’s Construction Completion Report to close a project

Starting on pg. 23 12

Section: 3 Record Keeping & Reporting

2 CFR 200 Subpart F Federal Audit (“Super Circular”) will apply to your project if your city, town or water system has spent more than $750,000 of any federal money within your fiscal year. This is a new audit requirement that replaces the Circular A -133 (which had a $500,000 trigger).

All pre-construction activities directly related to your DWSRF scope of work

can be reimbursed

Required activities prior to construction

*Environmental review

*Section 106 Cultural Review

*21 day labor package - Cert. payroll review, prevailing wage requirements, etc.

Borrowers do not need to pay invoices prior to submitting payment

*Include back-up documentation *Can be submitted electronically (if less than 25 pgs.)

Starting on pg. 27 13

Section 4: Financial Management

Borrowers that already have staff or consultants working for their community may use them for their DWSRF project

Borrowers without a consultant will have to publish a request for professional services in a newspaper of general circulation

Document why you selected the firm/consultant and how they are most qualified for the job

Check for Federal Exclusion!!

Starting on pg. 43 14

Section 5: Procuring Professional Services

Borrowers shall not move forward with any pre-construction activities i.e. test wells, geo-technical investigations, etc. until the cultural/environmental review is complete

Turn your EZ – 1 form in to the Dept. of Health!!

The Department of Health will be in contact soon to assist you in completing this requirement.

Starting on pg 49 15

Section 6: Environmental & Cultural Review

An Invitation for Bid (IFB) is the usual process for procuring a construction contractor

Projects must be under $300,000 to use a small works roster

Send your IFB to your CAU Project Manager prior to advertising your bid requirements

Disadvantaged Business Enterprises & Fair Share goals *Construction 10% MBE 6%WBE

*Supplies 8% MBE 4%WBE

*Equipment 8% MBE 4%WBE

*Purchased Services 10%MBE 4%WBE

Starting on pg. 55 16

Section 7: Procuring Construction Contracts

Six Good Faith Efforts (pg. 61)– demonstrating you are trying to meet the DBE goals.

DBE reporting forms

Bid specifications – ensuring all provisions are included (pg. 59)

Obtain your federal wage decision – carpenter, welder, backhoe operator… use your CAU project manager!!

Wage rates & the ten (10) day bid check

Conduct the bid opening

Contractor eligibility – Federal Excluded Parties List

*useful attachments in the back of chapter 7*

Starting on pg. 55 17

Section 7: Cont.

Starting on pg. 143 18

Section 8 : Investment Grade Efficiency Requirement

The primary purpose of the IGEA is to assure that infrastructure projects using electricity, motors, or pumps evaluate the efficiency of the equipment being considered.

Does this mean that every water system that applies for a DWSRF loan needs to do an audit? No.

What it does mean is that your infrastructure project needs to demonstrate & document one of the following:

19

1. Documentation that you have had an energy review prior to your loan request through your power provider (PSE, BPA, PUD…) or an Energy Services Company (ESCO)

2. A third party design review may be more appropriate for projects that are brand new or are having major upgrades to their systems. If a project is unable to measure the system before and after the infrastructure project, an IGEA is not possible. An energy expert can be sub-contracted to review designs and specifications for potential energy savings.

3. Demonstrate that the project under consideration has “no obtainable” energy savings. Generally, projects with only pipe and pavement are examples where energy savings is not obtainable. However, if your road project has lighting included, it needs to be considered under the IGEA requirement.

4. Complete a preliminary audit through an Energy Service Company (ESCO) to determine if there are potential long-term energy savings. If the preliminary report demonstrates that savings are obtainable a full audit of the “project” is the next step.

For more information regarding the IGEA, Roger Wigfield at the Department of Enterprise Services 360/407-9371, roger.wigfield@des.wa.gov

Conduct a preconstruction conference – who’s doing what?!

*Engineer

*Contractor

*Borrower Davis Bacon Requirements Notice to Proceed Payroll Review On-site Monitoring

Your CAU project manager will be conducting a training on all of the above – You’ll want to take part!

Starting on pg. 147 20

Section 9: Managing Construction Projects

21

PWEB Training CAU Contracts Training CAU Labor Standards Contract Implementation Check list pg. 18-

20 Quick References in handbook pg. 21

Helpful Training / Information

22

Contracts will be sent soon for authorization and signature

Sign your contract and return it to the Department of Commerce

The Public Works Board Chairman will sign and execute your contract

Your CAU project manager will be in contact soon!

Get started on your Cultural/Environmental Review asap..

What’s Next?

23

Department of Health Drinking Water SRF Program, Karen Klocke, karen.klocke@doh.wa.gov

(360) 236-3116

Public Works Board, Steve Dunk, stephen.dunk@commerce.wa.gov

(360) 725-3157

Contract Administration Unit, Cathy Brockmann, cathy.brockmann@commerce.wa.gov

(360) 725-3087

Contacts:

24

Questions?