Farewell and Welcome from the EditorSusan McCannonFunding SpecialistSusan@frachetti.com

The Bucket Li$t has been on hiatus this year due to a series of calamities that befell my family. As the end of 2012 quickly approaches I am hoping to close this difficult chapter in my life and look forward to 2013 as a year of new beginnings. One new beginning includes my life as a retired person! The important work of funding and finance services for water and wastewater providers will be carried forward by my successoforward by my successor, Anita Hardy. With 14 years of experience with budget-ing and financial management, Anita will continue to provide our clients with the level of funding and finance expertise and guidance that they have come to expect. Welcome Anita.

You are also looking at a new beginning – that of the 2013 fiscal year. Most of you have been actively involved in or supporting the development of the annual budget, relating to your water and/or wastewater system, that is due next month. If your system qualifies, don’t forget to factor in a Planning and Design grant in your budgeting process. The new grant requirements and process will benefit a number of communities and allow them to further the design and engineering process for upcoming improvement projects. More on this later in this newslettenewsletter.

Welcome AnitaAnita Hardy, Funding SpecialistAnita@frachetti.com

Anita has over 14 years experience in managing business financials including job costing, accounts payable, receivables, cash flow, break-even point flow analysis, budget vs. actual, general ledger, payroll, and monthlmonthly, quarterly, and annual financial statements. She is responsible for providing project funding assistance and rate studies, reviewing budget and reserve requirements, capital improvement planning, and finding and securing project finding and securing project grants and loans.

He Who Hesitates...Water and wastewater infrastructure funding is in a constant state of flux, but one trend is fairly consistent – funding levels are not increasing. A couple of bright spots in the Colorado grant scene, resumption of the Energy and Mineral Impact Assistance program at the Colorado Department of Local Affairs, and increased funding for the 2012 Water Quality Improvement Fund at the Colorado Department of Public Health and Environment, are more than counterbalanced by the decreased level of funding Congress will likely provide in 2013 for Revolving Loan Funds counterbalanced by the decreased level of funding Congress will likely provide in 2013 for Revolving Loan Funds across the nation. These Funds, which are the largest source of low-interest loans for Infrastructure improvements in Colorado may decrease to levels commensurate with those of 2008-2009, at worst, or to 2011 levels, at best. Where along that spectrum Colorado ends up will be influenced by the outcome of the November elections. Future funding levels allocated by Congress could decrease even further. At the same time, costs for materials, fuel and labor continue to increase. (Article continued on following page)

Bucket Li$tThe

Funding and finance ideas and strategies for water and wastewater

How BIG is your project funding bucket... and what’s in it? We can help! Focused. Engaged. Innovative.

Volume 2 Issue 1November 2012

The following deadlines are quickly approaching for loan and grant applications.

December 3, 2012 - Energy and Mineral Impact Grant Applications due to DOLA

December 15, 2012 - SRF Loan Applications due to CDPHE

January 1 - 31, 2013 - SRF Planning and Design Grant Application Period and Deadline

January 30, 2013 - Deadline for submitting PER to CDPHE prior to March 15, 2013 Loan Application Deadline

UpcomingDeadlines

He Who Hesitates...(Cont.)The convergence of all these various factors indicate that now is not the time to hesitate if you have water or wastewater infrastructure improvement needs. Rather, it would be wise to proceed as quickly as you can in order to avail yourself of the favorable grant funding, available SRF funding, low interest rates on loans, and current construction costs. Funding and building those improvements in the future will likely be more difficult and more costly, not easier or less costly. Therefore, your community will be better served in the long-run if you act now.

If you are struggling to decide whether to make improvements now or wait for a If you are struggling to decide whether to make improvements now or wait for a “better time” we can help you assess your options by looking at available funding, capital improvement planning, likely construction costs, and how best to leverage your available cash. In addition, the EPA has a Cash Flow Opportunity Calculator that will help you make a good choice. Access this powerful tool online at http://www.energystar.gov/index.cfm?c=assess_value.financial_tools. Regardless of which resources you use in your decision-making process, I strongly urge you to act now if at all possible, because there will likely not be a better time from a funding act now if at all possible, because there will likely not be a better time from a funding standpoint, and as the old proverb goes “He who hesitates is lost.”

A new year is coming and with it changes to the CDPHE’s Planning and Design Grant program. The Water Quality Control Division (WQCD) recognized that the current way of doing business with the P&D Grants, wasn’t always the best way. Last month the WQCD presented the following changes to the Colorado Water Quality Commission and they were unanimously approved.

Planning and Design grant funds are made available through a portion of the Planning and Design grant funds are made available through a portion of the administrative fee collected on funded SRF loans. The grants are offered to assist in the preparation of a water or wastewater infrastructure project. The intent is to provide a mechanism to facilitate compliance with program requirements. Grant dollars can be used for a variety of items including preparing: a Preliminary Engineering Report (PER); an Environmental Assessment (EA) ; a Technical, Managerial and Financial Review (TM&F) (Drinking Water Only); an Energy Audit; engineering design and specifications; and/or legal fees associated with formation of engineering design and specifications; and/or legal fees associated with formation of legal entity such as a Local Improvement District.

The Division anticipates awarding fifteen (15) grants each for drinking water and waste water projects in 2013. Each grant may be up to $10,000, per community, per project. Additional funds may be made available later in the year, depending on the total number of applications received. applications received.

Next Time inThe Bucket Li$t

Capital Asset Management 2013 Program Changes

CRWA ConferenceFEI is excited to exhibit at the CRWA Annual Conference in February 2013. Stop by our February 2013. Stop by our booth and meet some of our staff in person: Anita Hardy - Funding & Planning Specialist, Allison Mudrey - Marketing Coordinator, Bob Frachetti - President, and Cort Nickel - Northern Colorado’s Project ManageProject Manager. FEI will once again be participating in the Round Robin program. Make sure to stop by and see what awesome give-awayswe have this time!

2013 Planning & DesignGrant Changes

80/20 Match Grant Funds Updated Eligibility Criteria Application Deadline Prioritization Process

Changes are Here... for the 2013Planning and Design Grants

Frachetti Engineering, Inc.5325 South Valentia WayGreenwood Village, Colorado 80111p 303.300.3464www.frachetti.com2

Volume 2 Issue 1November 2012

New OfficesNew ManagementCort Nickel, P.E., Project ManagerCort@frachetti.com

Minturn Office 175 Williams St., Suite 103 P.O. Box 988 Minturn, CO 81645 Ph: 970.688.5184 Fx: 970.446.7194

Windsor Office P.O. Box 21 650 E. Garden Drive Windsor, CO 80550 Ph: 970.460.0230 Fx: 970.460.0803

Jamie Pappas, P.E., Senior Engineer, Jamie@frachetti.com

Our new offices in Windsor, Colorado and Minturn, Colorado, enhance our ability to better serve our Western Slope, Northern Colorado and Wyoming clients and efficiently respond to their needs.

How BIG is your project funding bucket... and what’s in it? We can help!

80/20 Matching FundsThe Division requires a local match of 20 percent for each grant awarded. The local match will be handled through the reimbursement process. For example, for each invoice the community presents, the Division will pay up to 80% of the invoice presented, not to exceed a total grant amount of $10,000. The 20% match will not be required for projects that address non-point source pollution run-off.

Eligibility Criteria Eligibility Criteria Communities and special districts could apply for the planning and design grants if the community served met certain criteria outlined in the Intended Use Plan. The criteria changed slightly for 2013. To be eligible to apply for the P&D grants, your community must meet these criteria: • Project must be on the eligibility list • Total population of 5,000 or less • Median Household Income (MHI) is less than 80% of the statewide average. (The current 80% MHI is $45,165 (American Community Survey 2006 – 2010)

Application Deadline The WQCD felt that the current avenue of accessing the P&D grants on a first come The WQCD felt that the current avenue of accessing the P&D grants on a first come first serve basis wasn’t always a fair and equitable manner of distributing the limited amount of funds available. With that in mind, the deadline for applying for the P&D grants has been changed. New for 2013, all P&D grant applications must be submitted between January 1, 2013 and January 31, 2013.

Prioritization Process This grant program is extremely sought after by all entities throughout Colorado. In This grant program is extremely sought after by all entities throughout Colorado. In order to determine the best way to allocate the grant dollars, the Division set up a prioritization process. On February 1st, all applications will be prioritized to determine award of the available grant dollars. The prioritization process for the Drinking Water fund allows for a maximum of 100 points, with the most heavily weighted factors being population and MHI. This prioritization point system for the Drinking Water fund is outlined here:

Drinking Water Planning and Design Grant Prioritization ProcessPopulation Less than 500 30 Points 500 to 1,000 population 20 Points 1,000 to 5,000 population 10 PointsMedian Household Income >40.4% of State MHI 30 Points MHI <60.0% ≥ 40% of State MHI 20 Points MHI ≤ 80.0% ≥ 60% of State MHI 10 PointsThe Division will assign up to twenty points for a Public Water Supply Up to 20 Points(PWS) health risks. Determination of the health risk will be madebased upon the type and level of contaminant present within categoriesProject includes consolidation of two or more PWSs 15 PointsProject includes water conservation measureProject includes water conservation measure 5 Points

The Bucket Li$t Volume 2 Issue 1November 2012

4

Funding Services Strategic Planning - Capital Improvement Plans

- Asset rehab or replace

- Project funding priorities

Asset Management - Tangible assets inventory

- Prioritizing costs

- Funding strategies

Funding & Financing - Assist to obtain grants & loans

- Eligibility assessments

- Familiar with CDPHE, DOLA, USDA-RUS, EPA, and CWRPDA Programs

- Green Project Reserve and

- Disadvantaged Communities

Rate Analysis & Setting - Evaluate system revenue and operating costs

- Financial Health Assessment

- US-EPA Financial Dashboard

- Rate review, design, and implementation

Prioritization Process (Continued)The Water Pollution Control Planning and Design Grant Prioritization Process has similar ranking for populations and MHI, but includes a prioritization point system for Water Quality Improvement, Permit Compliance and Sustainability impacts as shown here:

The Division also anticipated the possibility of a tie in scores. In the case of a tie for The Division also anticipated the possibility of a tie in scores. In the case of a tie for Drinking Water grant application, the population score will be used to break a tie, i.e. the smallest population wins the award. In the case of a tie for Water Pollution Control applications, the highest score in the Financial/Affordability category will prevail. Other backup methods for further tie-breaking are included in the 2013 Intended Use Plan.

Now is a good time to ask, “Does my community meet the new criteria?” If so, Now is a good time to ask, “Does my community meet the new criteria?” If so, Planning and Design Grant dollars are an opportunity you don’t want to let pass you by. The changes implemented for 2013 should not discourage you in considering these funds to help you meet program requirements. $10,000 in grant monies can be a fantastic stepping stone in any stage of your project. As mentioned in SusanAs mentioned in Susan’s article “He Who Hesitates…”, now is the time to contemplate your next funding actions. The upcoming application period of January 2013 will be here before you know it.

I am available to answer any questions you may have about the program and can help you complete the grant application and determine your eligibility for this or other funding opportunities that are available. - Anita Hardy

The Bucket Li$t

Water Pollution Control Planning and Design Grant Prioritization ProcessFinancial / Affordability

Water Quality Improvement

Permit Compliance

Sustainability

Population Less than 500 30 Points 500 to 1,000 population 20 Points 1,001 to 5,000 population 10 PointsMedia Household Income <40.0% of State MHI 30 Points MHI ≥40% but < 60.0% of State MHI 20 Points MHI ≥60% but < 80.0% of State MHI 10 Points

Project will correct an identified water quality impairment of water body that is 25 Pointsincluded on the 303(d) list

Project correct Individual Sewage Disposal systems shown to be polluting either surface 15 Pointsor groundwater

Project applies BMP’s to mitigate against erosion, sedimentation and pollution runoff 5 Points

Project is designed to maintain permit compliance or meet new permit effluent limits 15 Points Project addresses a facility’s voluntary efforts to resolve a possible violation and will 10 Pointsmitigate the issuance of a Consent Order or other enforcement action Project addresses an enforcement action by a regulatory agency and the facility is 5 Pointscurrently in significant non-compliance Project implements sustainable measures, such as “fix-it-first” methodology, 5 Pointsdevelopment of an Asset Management Plan, or regionalization and consolidation Project will generate and/or utilize reclaimed water for direct re-use, or correct a water 10 Pointsloss issue

Volume 2 Issue 1November 2012