Additional Forms – Fund Transfer Certification • Signature of Authorized Representative required • Date form Department of Environmental Quality 42
Additional Forms – Resolution & Rate Sheets • Resolution • Template available • List Authorized Representative • Due at time of application • Rate sheets – Be sure to include LGU rate sheets • Affordability Criteria Information form – To be discussed later (New!) Department of Environmental Quality 43
Additional Forms – LGC Forms • LGC-108A and -108C Forms – Not needed yet • LGC 129 • Issued by LGC to each LGU • Records annual debt service for each LGU • No debt = no form • Available in big PDF document • https://www.nctreasurer.com/slg/Debt%20Management/Annual DebtPaymentNotices.pdf Department of Environmental Quality 44
Questions? Department of Environmental Quality 45
Construction Project Funding Project Priority Systems Wastewater Drinking Water CDBG-I Department of Environmental Quality 46
Priority Rating System • Used to rank projects for funding • Read guidance carefully – describes the required narratives, maps, and documentation (revised July 2017) • Claim the points you can document • Provide ALL the required documentation • Additional information will NOT be requested • Ask questions if unsure Department of Environmental Quality 47
Today’s Discussion • Categories • Category 1 – Project Purpose • Category 2 – Project Benefits • Category 3 – System Management • Category 4 – Affordability • Point totals for categories vary depending upon type of project (wastewater, water, CDBG-I) • Presentation focus on problem areas Department of Environmental Quality 48
Priority Rating System Category 1 – Project Purpose Department of Environmental Quality 49
1.A Consolidate Failing System (DW/CDBG-I) • Rescue a failing system designated by Chief of Public Water Supply Section of DWR • Documentation: • Letter from PWS Section Chief calling it a failing system, • Letter identifies the Public Water Supply System by name and PWSID Number, and • Agreement between failing system and rescuer • Generally initiated by the Public Water Supply Section of DWR • Call regional office Department of Environmental Quality 50
1.B Resolve Failed Infrastructure • Expanding capacity is limited to replacing failed infrastructure – not future growth • Narrow definition of failed infrastructure: • Failed Septic Systems or DWR permitted single family spray/drip irrigation system • Failed non-discharge permitted disposal area, such as a failed spray/drip irrigation field or infiltration basin • No other infrastructure failure counts • Documentation depends on type of failure Department of Environmental Quality 51
1.B Resolve Failed Infrastructure • Failed Septic Systems or DWR-permitted single-family spray/drip irrigation system must earn points and provide documentation under 2.C • Failed non-discharge permitted disposal area, such as a failed spray/drip irrigation field or infiltration basin • Provide: • Copy of non-discharge permit • Letter from DEQ RO stating disposal field/basin has failed and any NOVs • Map Department of Environmental Quality 52
1.C Rehab/Replace Infrastructure • Rehab or Replace cannot expand capacity • New pump station / treatment plant with same capacity as old being decommissioned • Like for like replacement • Includes new unit operations that don’t increase capacity to treat • EQ basin, UV disinfection, solids handling, SCADA, VFD, generator Department of Environmental Quality 53
1.C Rehab/Replace Infrastructure Common Errors: • We are replacing existing 10-inch gravity sewer. • We are increasing pumping capacity to meet current flows but not to provide any additional capacity. • Missing supporting calculations when replacing a pump station with gravity sewer. • The 1 MGD unit we are replacing is under-sized, so we will replace it with a properly-sized 2 MGD unit. Department of Environmental Quality 54
1.C.1 Old Infrastructure • Can earn additional points for old infrastructure Unit Age in years Treatment or Pumping Units 20 Sewer Lines 40 • At least 50% of the construction cost is associated with replacing old infrastructure • Show clearly in budget Department of Environmental Quality 55
1.D Expand Infrastructure • Expand infrastructure for existing capacity deficiencies or future flows • Common error • New lines do not get priority points Department of Environmental Quality 56
1.D.1 Old Infrastructure • Can earn additional points for old infrastructure Unit Age in years Treatment or Pumping Units 20 Sewer Lines 40 • At least 50% of the construction cost is associated with replacing old infrastructure • Show clearly in budget Department of Environmental Quality 57
1.E Extension of Service for Specific Reasons (CDBG-I) • Project will affirmatively further Fair Housing by extended water and/or sewer to new or rehabilitated LMI housing • Specific reasons • Extend water and/or sewer service to new low income housing, or to an area where existing low-to-moderate income (LMI) homes are being rehabilitated • Connect existing LMI homes to water and/or sewer service 58
1.E.1 Extend or Rehab Water/Sewer (CDBG-I) • Proposed project will extend water and/or sewer to new or rehabilitated low-to-moderate (LMI) income housing. • Water and sewer extensions to new LMI housing are limited to housing financed by public or private non- profit entities, or by private firms using tax credits. • See CDBG-I Priority Rating System Guidance & Form for required documentation 59
1.E.1 Extend or Rehab Water/Sewer (CDBG-I) • LMI Percentage: • New Construction, the LMI % for the project area is estimated at 100%. Applicant must document and verify the LMI % of residents of new housing project at the end of the project. • Rehabilitated Housing, the LMI % in the project area must be at least 51%, and requires a survey of residents. • All LMI units in project area must be connected, unless a registered sanitarian or a licensed soil scientist verifies that the wells/septic are functioning properly. 60
1.E.2 Connect Existing Homes to Existing Lines (CDBG-I) • These are hook-up only grants - Nothing but the house connections should be in the project. • Proposed project will connect existing houses/multi- family dwellings to existing water and /or sewer service. • Homeowners / renters must be LMI, no over income households can be connected with these funds. • See CDBG-I Priority Rating System Guidance & Form for required documentation • Income Surveys of the project area are required with income verification of each direct beneficiary household required before the close of the project. • These grants will have a 100% LMI percentage. • The hookups can be scattered throughout a town or county. 61
Priority Rating System Category 2 – Project Benefits Department of Environmental Quality 62
2.A Benefit from Infrastructure Replacement, Repair, or Merger (CDBG-I) • Proposed project provides an environmental or public health benefit through the replacement or repair of infrastructure, or merger of a failing system with a viable one. • Projects include: • Connecting homes with failing septic systems to public sewer service • Connecting homes with dry or contaminated wells to public water service • Replacing failing public wells (failure due to contamination or significant yield reduction) with another well, or connection to another water system with excess capacity • Repairing or replacing sewer lines responsible for reported sanitary sewer overflows that: • Reach bodies of water, or • Backup into homes, causing a public health problem • See CDBG-I Priority Rating System Guidance & Form for required documentation 63
2.B Specific Public Health Benefit (DW) • Provides points for • Dry or contaminated wells • Specific project types that also earn other points Department of Environmental Quality 64
2.C Specific Environmental Benefit (WW) Projects include: • Connecting homes with failing septic systems to public sewer service • Must include letter from a registered sanitarian, a licensed soil scientist, or County Health Department documenting existing failures • Includes failed single-family residence spray/drip irrigation system • Repairing or replacing sewers with reported SSOs that • Reach bodies of water, or • Document backup into homes Department of Environmental Quality 65
2.C Specific Environmental Benefit (WW) Common errors • Center Avenue area soils are unsuitable and septic system failure is likely • SSOs not resolved by project • No map showing location of failing systems • No map showing SSOs Department of Environmental Quality 66
2.E Addresses Enforcement Documents • Project can only receive points for ONE of the following: • 2.E.1 EPA Administrative Order (AO) in Tier 1 county, or an existing/pending SOC, or DEQ AO • 2.E.2 Notice Of Violation or Notice Of Deficiency • Common errors • Project does not address enforcement document • Response on file that Applicant has already addressed the problem that caused enforcement action Department of Environmental Quality 67
2.G Address Low Pressure (DW) • Compare pressure to T15A NCAC 18C .0901: (20/30 psi) • Provide: • Valid testing or modeling data • Report and supporting documents • See factsheet on website • Big change: fireflow is 250 gpm or document requirement for higher flow • Common error • Long lengths of small lines do not earn points Department of Environmental Quality 68
2.H & 2.I Contamination (DW) • Refer to the guidance and separate sampling protocol 69
2.J Additional Treatment (WW/DW) • Project improves the quality of treatment • Common error • Does not improve water quality • Replaces existing unit process Department of Environmental Quality 70
2.K Water Loss Exceeds 30% Documentation (DW/CDBG-I) • Document the water loss exists; BOTH of following must exceed 30% • At least latest year water audit (detail in Line Item 3.E) • Water loss listed in latest Local Water Supply Plan • Narrative must credibly describe both: • Why you believe the unit is responsible for the excess water loss and • How or why the project will reduce the excess water loss from that unit • Common errors • Failure to provide audit • LWSP shows low water loss Department of Environmental Quality 71
2.M Addresses a Moratorium on a Local Government System (CDBG-I) • An application may earn seven points if the project directly addresses the cause of a moratorium on a local government system. • See CDBG-I Priority Rating System Guidance & Form for required documentation 72
2.N Rehabilitate Water & Sewer Lines in Same Footprint (CDBG-I) • Submit one application containing information for both water and sewer. • Each project utility must provide separate scorecards, budgets, and support documentation; in addition to a total budget combining all project types. • See CDBG-I Priority Rating System Guidance & Form for required documentation 73
2.P Impaired Waters (WW) • Project will directly benefit impaired waters • Provide: • Stream name and impairment(s) as documented in the Integrated Report • Discussion of impairment and connect the dots to show the project will directly benefit the impairment • Map(s) with project location, stream location and impaired segment • Common errors • Project does not address impairment • Map does not adequately show location of project and impairment Department of Environmental Quality 74
2.S 20% Reduction in Energy Use GREEN (WW) • Primary purpose of project (>50% of construction cost) is to: • Reduce energy usage of a specific process by 20% • Produce energy (e.g. digester gas to energy project, solar panels at treatment plant) • Eliminate a PS as long as it doesn’t increase the pumping demands of a downstream PS • If project is not exclusively for energy reduction: • 0% interest rate applied to the portion the loan for Green Project • Standard interest rate will applied to rest of the loan • Common errors • Lack of supporting calculations • Less than 50% of construction costs Department of Environmental Quality 75
Priority Rating System Category 3 – System Management Department of Environmental Quality 76
System Management Can only receive points for ONE of the following: • 3.A – Capital Improvement Plan OR • 3.B – Asset Management Plan Department of Environmental Quality 77
3.A Capital Improvement Plan • Must span 10 years, be less than 2 years old • State years covered by the CIP • Resolution or certified minutes showing adoption of CIP • Common errors • Has not been adopted within past 2 years • Does not span 10 years from date of adoption • No minutes showing adoption • Project not highlighted on CIP Department of Environmental Quality 78
3.B Asset Management Plan • Applicant has implemented AMP before application • Separate AMP Guidance Supplement • Common errors • AMP has not been implemented • CIP does not span 10 years from date of adoption • No minutes showing adoption of CIP • Project not highlighted on CIP Department of Environmental Quality 79
3.E Water Loss Reduction Program (DW/CDBG-I) • To encourage proactively looking for leaks rather than simply fixing them when found • Two ways to earn points • The system is not leaking – no need to search • Ongoing, continuous hidden leak detection and repair program • Must provide water audit • Three annual audits • All three years < 10% water loss (ILI < 1.2) • If leak rate is ≥ 10% (ILI ≥ 1.2), document hidden leak detection and repair program • Hidden: not visible, obvious, or accidentally discovered Department of Environmental Quality 80
3.E Water Loss Reduction Program (DW/CDBG-I) Hidden leak detection and repair • Use technology to search for hidden leaks (acoustic / ultrasonic) • Ongoing, continuous program • Describe the program. • What did you do in the past year? • What did you find? • How did you repair found leaks? • Does this project fix a found leak? • Common errors • “We fix leaks when we find them.” • Not all three years of data provided Department of Environmental Quality 81
3.F Water Conservation Incentive Rate Structure (DW) • A rate structure that encourages typical users to reduce usage • Incentive must operate in the range of reasonable household usage • Increasing block rate • Rate per gallon must increase within first 5,000 gallons / month • Rate per gallon cannot decrease within first 20,000 gallons / month Department of Environmental Quality 82
Priority Rating System Category 4 – Affordability Department of Environmental Quality 83
4.A Residential Connections (WW/DW-SRP) • Only claim ONE sub-category based on the number of connections. • Less than 20,000 residential connections, or • Less than 10,000 residential connections, or • Less than 5,000 residential connections, or • Less than 1,000 residential connections • Use only sewer connections or drinking water connections as of date of application Department of Environmental Quality 84
4.B Current Monthly Utility Rate at 5,000 Gallons (WW/DW) • Only claim ONE sub-category based on the current monthly utility rate for 5,000 gallons. • Greater than $26, or • Greater than $33, or • Greater than $40, or • Greater than $47, or • Greater than $58, or • Rates must match those on rate sheet submitted • Use only sewer rates or drinking water rates • Use lowest residential rate, “in-town rate” • Provide calculations Department of Environmental Quality 85
4.C Local Government Unit (LGU) Indicators (WW/DW) • Only claim ONE sub-category • 2 out of 5 LGU indicators worse than state benchmark, or • 3 out of 5 LGU indicators worse than state benchmark, or • 4 out of 5 LGU indicators worse than state benchmark, or • 5 out of 5 LGU indicators worse than state benchmark, or • LGU Indicators are: • Property Valuation per Capita is less than $104,428 • Percent Population Change is less than 4.33% • Poverty Rate is greater than 17.4% • Median Household Income is less than $46,868 • Unemployment rate is greater than 5.7% Department of Environmental Quality 86
4.F Poverty Rate (CDBG-I) Refer to the poverty rate tables on the Division website at http://portal.ncdenr.org/web/wi//applications-forms, under Sidebar “Additional Resources” - “Local Government Unit Parameters-Counties” 87
4.G Utility Rates/Median Household Income (CDBG-I) • Refer to NCDEQ Water and Sewer Form used in Line Item 3.c to calculate and enter the monthly inside rates for the water and/or sewer utility under Line Item 4.G. Keep in mind if applicant has one utility, the scorecard will double the rate. • If applicant has both utilities, then both utilities must be reported, even if an outside entity provides the service. Must provide rates that are certified within 6 months of application deadline for all water and sewer utilities servicing project area. ** Points will not be given if application doesn’t contain both NCDEQ Water and Sewer Rate Form and Certified Rates • Refer to the median household income tables on the Division website at http://portal/ncdenr.org/web/wi//applications-forms • See CDBG-I Priority Rating System Guidance & Form for required documentation 88
4.H Low-to-Moderate Income Percentage of the Project Area (CDBG-I) • Input the results from the surveys or census data research into the blue box next to 4.H • See CDBG-I Priority Rating System Guidance & Form for required documentation 89
Affordability Criteria Methodology Department of Environmental Quality 90
Affordability Criteria Overview • General requirements • Affordability criteria methodology • Case study Department of Environmental Quality 91
General Requirements • Affordability Criteria Information form (New!) • Complete all information • Supporting documentation required in support of Affordability Criteria Information form • Affordability Criteria Information form incomplete = impact on grant eligibility or percentage amounts • Note: Not all steps apply to all programs Department of Environmental Quality 92
General Requirements • Applies to all programs in one form or another • Complete all blanks Department of Environmental Quality 93
Step 1 – Population (WW/DW/CDBG-I) • Use residential connections • Consider for the entire service area • Results • > 20,000 residential connections eligible for 100% loan • ≤ 20,000 residential connections Go to next step • Bulk connections – Include residential connections served by bulk connection Department of Environmental Quality 94
Step 2 – LGU Economic Indicators • Used to further limit grant eligibility to those LGUs that demonstrate more economic distress than others • Five indicators • Population change • Poverty rate • Median household income • Unemployment • Property valuation per capita • Uses state benchmarks Population change – 4.33% Poverty rate – 17.4% Median household income – $46,868 Unemployment – 5.7% Property valuation per capita – $104,428 Department of Environmental Quality 95
Step 2 – Where to Obtain Data • Data sheets for LGUs or counties provided by Division • Population change (%) • Poverty rate • Median household income • Unemployment • Property valuation • Most current (2015-2016) approved audit • Property valuation per capita = Total Taxable Property Value (2015-2016)/Population (2015)* • No audit = no credit for indicator • Data available on calculator Department of Environmental Quality *From data sheets 96
Step 2 – LGU Economic Indicators • Complete all 5 indicators • 3 out of 5 parameters worse than benchmark Go to Step 3 Department of Environmental Quality 97
Step 3 – Existing Revenues (WW/DW) • Determines potential ability of a system to finance the project without a grant ��������� ������� ����� & ����� �� ������ � ����� ������������ ����� & ����� � ���� ��������� � �������� ����� & ����� � ������� ���� 20 • Future operating ratio • Operating revenues (both systems) • Total expenditures (both systems) • Debt Service (both systems) • Debt principal • Interest • Project • 20-year loan • 0% interest • OR Future ≥ 1.3 eligible for 100% loan • OR Future < 1.3 Go to Step 4 Department of Environmental Quality 98
Step 4 – Determination of Grant Portion • Purpose – To determine the ability of an Applicant to finance that particular project without a grant • Parameters • Annual debt service per connection with project included • Current utility bill Department of Environmental Quality 99
Step 4a. Annual Debt Service per Connection (WW/DW) • Non-residential connections • Special case – bulk connections • Annual debt service • Water OR sewer annual debt service • Annual debt service to consider • Active debt (shown on LGC 129 form) • Pending debt • Active annual debt service not on LGC 129 • Supply LGC 129 form and annual debt service worksheet Annual debt service per connection = ������ ���� ������� � ����� ������� ���� 20 ����������� ����������� � �������������� ����������� 100
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