From The EditorSusan McCannonPlanning and Funding SpecialistSusan.McCannon@feiengineers.com

Attention all SRF loan candidates

Have you submitted your annual Drinking Water and/or Wastewa-

ter Eligibility Survey(s) to CDPHE? Time is running out, so be sure to complete them by 5 pm on June 30, 2015. Do you need to complete a survey even if you don’t plan to apply for a loan in 2016? Yes, because plans change, and the CDPHE uses the responses to identify the overall need for investment in drink-ing water and wastewater infrastructure. So, your information is important even if you don’t currently project a need in 2016 for a loan or grant. If you have questions or need assistance call and I may be able to help. The blank survey forms can be found by clicking on the following links:

Drinking Water & Wastewater Surveyshttps://www.colorado.gov/pacific/cdphe/wq-eligibility-survey

The CDPHE has issued guidance documents for SRF loan candidates on two new requirements – Architectural and Engineering Services Procure-ment, and Fiscal Sustainability Plans. A third guidance document on Project Cost and Effectiveness evaluations is currently in process and will be re-leased later this summer. Following is a review of the first two. Stay tuned for the third.

Also included in this issue is up-to-date information on statewide user rates in Colorado. Check them out and com-pare them to your system’s current rates. Finally, I want to introduce our newest employee at FEI, Tim Clemans.

5325 S Valentia Way | Greenwood Village, CO | 80111www.feiengineers.com | (303) 300-3464

Volume 5 Issue 2June, 2015

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!

IN THIS ISSUE:

• SRFPROGRAMNEWREQUIREMENTS

• TIMCLEMANSJOINSFEITEAM

• UP-TO-DATESTATE-WIDEUSERRATES

NewRequirementsforSRFPrograms

In 2014 Congress passed the Water Re-sources Reform and Development Act (WRRDA) which resulted in a handful of changes to the State Revolving Funds that are administered by the CDPHE. Two of these changes, Architectural and Engineering Services Procurement (A/E), and Fiscal Sustainability Planning, have already become effective and guidance documents have recently been released by the CDPHE. These are summarized below. A third change, a Cost and Effectiveness evaluation, will become ef-fective later this year with a guidance document expected to be released near the end of summer.

Architectural and Engineering Services Procurement (A/E) Specific wastewater projects may or may not be subject to the A/E requirements. That can best be discerned dur-ing the pre-qualification meeting and process conducted with CDPHE Project Managers. However, it may be easier to embrace the new procedures as “best practices” and thereby be prepared to prove compliance rather than having to start over with project A/E selections.

This BestPractice process would con-sist of the following steps:

1. Identify criteria for evaluation and se-lection of professional A/E services

2. Publicly announce the need to engage A/E services and Request for Qualifi-cations (RFQ), include criteria that will be used to judge responses

3. Evaluate and rank submitted RFQs using announced criteria

4. Discuss project and client needs with at least three respondents. Explore anticipated concepts and various methodologies for delivery of antici-pated services

5. Select and rank at least three of the most highly qualified respondents

6. Enter into contract negotiations with the top ranked respondent. At this point, but not before, the fee proposal comes into play. If a fair and reason-able contract cannot be negotiated then begin negotiations with the next ranked respondent

Additional information and the guidance document issued by the CDPHE can be gained by clicking on the following link:https://www.colorado.gov/pacific/sites/default/files/SRF-AE-Procurement-Fact-Sheet.pdf

Volume 5 Issue 2 June 2015

In addition, the USDA has funds available through their Emergency Community Water Assistance Grant program. Applications for these grant funds can be submitted to your local Rural Development office at any time.

A few important aspects of this grant opportunity include:

• Funds can be used for construction, improvements, renovation or reconstruction. Preliminary design and plan-ning work must be included with the application.

• Funds can be used as a local match to FEMA and other funds

• $500,000 cap on water source, treatment, and trans-mission projects.

• $150,000 cap on distribution projects.

• Eligible communities have populations smaller than 10,000 and MHI less than the statewide MHI of $57,685.

Visit the USDA-Rural Development websitefor more information or click on this link:

http://www.rurdev.usda.gov/UWP-ecwag.htm

If your community is in a flood disaster area and still has impacts that need to be addressed,you are likely feeling exhausted and overwhelmed,but take heart - these funds can help you rebuildand I can help you prepare and submit a stronggrant application.

Communities planning to seek SRF loan funds for projects to repair, replace or expand a wastewater treatment facility will be required to certify that a FiscalSustainabilityPlan(FSP) has been developed for the existing and proposed treatment works. Looking very similar to what we typically call an Asset Manage-ment Plan (AMP) and/or Capital Improve-ment Plan (CIP), the FSP must include the following components:

• An inventory of critical assets that are a part of the treatment system

• An evaluation of the condition and performance of the inventoried assets

• An evaluation of water and energy conservation efforts as well as a plan for implementation of conservation measures

• A plan for maintaining, repairing, and replacing the treatment works, as well as a plan for funding such activities

Once developed these plans must re-ceive on-going attention so they continue to be implemented, updated and revised as appropriate. The required certification must be submitted to CDPHE near the end of the project construction period. If your wastewater system doesn’t currently have an active FSP/AMP/CIP you can create and implement such in phases. And if you need additional resources in order to do so, i.e. software, hardware, professional services, temporary person-nel, staff training, etc. those costs can be included in your improvements project budget for reimbursement with SRF loan proceeds.

For additional information, as well as the guid-ance document and certification form issued by the CDPHE click on the following links:

https://www.colorado.gov/pacific/sites/default/files/HOPCh9-Att-1a-FSP-Guidance.pdf

https://www.colorado.gov/pacific/cdphe/water-quality-low-interest-loan-recipient

Other WRRDA provisions of interest include a change to the Clean Water SRF to extend loan terms up to 30 years, provided the projected use-ful life of the project to be financed is judged to extend that long. And a 5-year pilot program for a new funding mechanism, Subtitle C of WRRDA creates the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA). I will seek to provide more information on WIFIA in an upcom-ing issue of The Bucket Li$t.

FEI Welcomes Newest Member

Tim Clemans, Instrumentation & Controls Techni-cian, brings added depth and expertise to FEI’s Instrumentation, Controls, and Electrical Depart-ment. Tim has over 11 years of experience in fields including instrumentation and controls, oil and gas, and chemical regulatory. He was re-cently brought on board as FEI’s newest team member and Instrumentation & Controls Tech-nician. Tim’s areas of expertise include PLC design and construction, circuit design, instru-mentation and bench testing, and multi-language programming. He has certifications in RSLogix 500 and 5000, FactoryTalkView SE, ESD Control Area, AutoCAD, NEC, and NFPA.

Tim is a graduate from DeVry University with a Bachelor of Science degree in Electronics Engi-neering and Technology. He also holds a

How BIG is your project funding bucket... and what’s in it? We can help!Volume 5 Issue 2 June 2015

For additional information on SRF changesor other topics covered in this issue of The Bucket Li$t please contact me at: Susan.McCannon@feiengineers.com

Bachelor of Science degree in Chemistry with a specialization in Analytical Instrumentation and Methods from Adams State College. Tim can be reached at:

Tim.Clemans@FEIEngineers.com (p) 303-300-3464

Up to Date Statewide User RatesEvery year the Colorado Department of Local Affairs determines statewide average user rates for both drinking water and wastewater user charges. These figures assume an average con-sumption of 6,000 gallons per month. The newly issued figures are as follows:

Drinkingwater=$47.61/month

Wastewater=$23.11/month

If your community’s rates are below these figures then it’s possible that you don’t need higher rates because your system has sufficient cash on hand for upcoming needs and cash flows to meet all current needs. Or it’s also possible that your rates have gotten stale, have not been adjusted to keep up with inflation, or were not structured to achieve your system’s goals of self-sustainability and full-cost pricing. If the latter is the case then it’s high time to refresh and re-structure rates.

Rates are simply a tool to provide the means for an end. They allow you to acquire the resources necessary to build and maintain infrastructure. Potential funders will look at your rate structure to understand how well you use the rate tool. They will look at how diligently you keep rates up to date, and how well rates are structured to meet current and future needs. Loan and grant applicants who have rates that have not been changed in years, and cash flows that are below the system’s needs will be perceived negatively and put at a competitive disadvantage. So use your rate tool effectively and strengthen your chances of gaining advantageous funding for your projects. And if you want to talk about your rates, brainstorm on different rate structures, or need help with a rate study let me know.

CurrentProjectPhotoGallery

A special thanks to contributors of the following recent project photographs:

Lyons Wastewater Treatment Facility

Gateway Village Pump Station

St. Vrain Sanitation District SCADA Screenshot

FEI Engineers is a full service professional engineering firm specializing in water and wastewater. With staff dedicated to project funding and system finance issues, as well asproject design, engineering and construction needs, we can help you reach your goals in moreways than one.

The Bucket Li$t is a quarterly electronic newsletter distributed by FEI Engineers. Please feel free to forward this newsletter to colleagues or other interested parties.