Water Resource Restoration Sponsored Projects

Introduction

• Lee Wagner, DNR• Tracy Scebold, IFA

November 2019

Workshop Goal• To help you have a successful project!

Workshop Topics

• Program & Application Requirements• Technical Tools Update• P&D and Project Milestone Checklists• Other Funding Programs• Establishment and Maintenance Planning• Success Stories• Q&A Panel Discussion

Background• 2009 Iowa legislation authorized

wastewater utilities to fund Water Resource Restoration Sponsored Projects.

• Funding is achieved by the wastewater utility borrowing from the Clean Water SRF for an infrastructure project + a nonpoint source watershed project.

• The overall interest rate is reduced, allowing the utility to finance two projects for the cost of one.

Background• Watershed Approach – what are

the problems and issues

• Protecting Water Resources –what water bodies are important to the local area

• What Can be Done – what practices can have an effect

Background• Project must address

nonpoint source pollution on a watershed basis:

– Starts with watershed assessment

– Ends with identifying possible practices to address water quality problems in watershed

Background• Qualified applicants – wastewater

utility/city with SRF project in the planning phase

• Wastewater utility/city must work with a watershed organization:– Iowa Department of Agriculture and

Land Stewardship (IDALS)– Soil and Water Conservation District– County Conservation Board– Watershed Management Authority– Others

Application Process• Competitive application process

• Applications accepted twice each year– March 1 and September 1

• Application materials are online at: http://www.iowasrf.com/about_srf/sponsored_projects_home_page.cfm

• READ the materials carefully

• Cover all the requirements– Only complete applications will be considered

Application Requirements• Pre-application conference call

– Must be conducted by December 20, 2019 for March applications – Contact Lee Wagner at #515-725-0992 or lee.wagner@dnr.iowa.gov

• Watershed Assessment

• Consultation with technical advisors– Project development, planning and design– Site visit

• Engagement with other partners– Urban Conservationists

Application Review• Only complete applications reviewed

• Involve technical advisors

• Ranked and scored, if necessary– Iowa Admin Code 567-91.8 Project Priority

Rating System

Project Awards• Applicants notified if funded and at what level

– Request > $1M capped at $1M until all applications for the fiscal year have been considered.

• Quarterly Intended Use Plan (IUP) update– Public comment

• Recommendations presented to Environmental Protection Commission (EPC)– September deadline – December EPC approval– March deadline – June EPC approval

Recommended vs FinalMaximum amount allowed for sponsored project = whichever is less:

A. 10% of the amount of the wastewater loan request at the time of the sponsored project application

B. 10% of the FINAL amount drawn on the wastewater loan

C. The calculated amount determined by the reduction of the interest rate by up to 1%.

Recommended vs FinalEXAMPLE 1:

–At time of sponsored project application, the wastewater loan request amount is $2,000,000–Final amount drawn on wastewater loan is $1,800,000

–How much is available for the sponsored project?

$180,000

Recommended vs FinalEXAMPLE 2:

–At time of sponsored project application, the wastewater loan request amount is $2,000,000–Wastewater loan amount increases to $2,200,000, which is all drawn

–How much is available for the sponsored project?

$200,000

Recommended vs FinalEXAMPLE 3:

–$200,000 is recommended amount and city draws full amount of wastewater loan–City makes first principal payment on the wastewater loan before executing a sponsored project amendment

–How much is available for the sponsored project?

Amount is reduced each year – check with IFA!

Project Initiation MeetingThe DNR project manager will schedule a project initiation meeting with all the parties involved. The participants will discuss:

• Technical requirements and standards for the project• Schedules for the wastewater and sponsored projects• SRF requirements• Any permitting requirements (e.g. flood plain, Corps)• 28E agreements (as needed) • Budgets and financing arrangements• Any other project issues

Project Milestone Checklist• THE MOST IMPORTANT DOCUMENT! – Your

project roadmap

Project Initiation Packet• Frequently Asked Questions• Design checklists• Information on maintenance requirements• Flood Plain permit determination• SRF front-end documents• Bid document checklist• Loan amendment application

Final Plans and Specs• After approval of 60% plans and specs

• SRF Front-End Specifications– Must be included in the plans and specifications– The packet includes several forms that must be filled out by

the bidders and returned with the bids

• Approved by DNR and Technical Advisor

Bidding and Construction• Applicant identifies the lowest responsive bidder

• Submits bid document packet to SRF– The packet materials are identified in the “Bid Checklist for

Applicants.”

• DNR Project Manager reviews docs for eligibility and compliance with federal requirements

• Concurrence with the bid award

Pre-Construction Meeting

• Held with the contractor

• Invite the technical advisor assigned to your project

Construction - Inspections• The technical advisor may

conduct interim inspections during construction

• A final inspection by the technical advisor and DNR project manager is required

Construction Financing• After bids are approved, the wastewater utility must

submit a loan amendment application to include the sponsored project costs

• The applicant works with bond counsel to schedule and hold a public hearing and pass a bond resolution

• IFA will provide a debt service schedule

Construction Financing• All SRF loan proceeds are disbursed

after the borrower incurs costs– Disbursements are made weekly

• Sponsored project costs and invoices must be submitted separately from the wastewater project and clearly labeled

• All change orders must be submitted for approval

Eligible Costs• Construction costs• Legal and Bond Counsel Fees• Design Fees

IF IN DOUBT:• Review the sponsored projects manual:

http://www.iowasrf.com/about_srf/sponsored-project-manual/

• Talk to your SRF sponsored projects manager• Call Lee or Tracy!

Project Completion• Celebrate!

– Ribbon-cutting– Demonstrations– News releases– DNR’s Facebook page

• Videos of installations and finished demonstrations have reached millions of users!

Thanks for participating in SRF Sponsored Projects!

Questions?