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Public Water System Information Guide

The Draft 2009 Maine Drinking Water State Revolving Fund Intended Use Plan (IUP) is available for public review and comment. Public comments must be received by March 11, 2009, to be considered.

You may also submit your comments in writing to the Drinking Water Program at the address listed above by March 11, 2009. Questions with regard to the Draft IUP may be directed to Andrew Begin at 287-2647 or andrew.begin@maine.gov.

Meeting Schedule – March 4, 2009, 9am  

This meeting is being held for public comment on the 2009 IUP. Additionally, an informational session will be held following public comments.

Maine CDC

Drinking Water Program

286 Water Street ,

1st Floor Rm 16, Augusta

Deadlines

  • Primary list projects respond in writing by March 6, 2009 that they are interested in taking the funding. Highly scored projects on the backup are encourage to contact the DWP.
  • Public Comments Received by March 11, 2009.
  • Submit MMBB Loan Application by March 18, 2009
  • Engineering Contract executed by March 25, 2009 (if applicable)
  • Submit Completed Environmental Review and 95% Plans and Specifications by April 15, 2009
  • Loan obligation by June 17, 2009
  • Contract Bid Award by July 1, 2009
  • Start Construction by August 1, 2009.

Projects that can meet this aggressive time schedule are eligible for 0% interest loans in addition to 30% forgiveness. Projects that can not meet the above milestone will default to standard interest rates offered by the program.

 

Funding Sources & Incentives

The DWP is funding $38.1 million in projects through the 2009 IUP. Funding sources include:

  • ARRA – $18.72 million ($9.75 million in forgiveness)
  • 2009 Capitalization Grant & State Match - $7.4 million ($2.43 in forgiveness)
  • Uncommitted Funds and Revolving money - $12.02 million

As part of the ARRA the DWP is required to provide 50% of the ARRA funds in the form of additional subsidization (forgiveness/grant). By blending all available funding sources the program was able to provide at least 30% forgiveness to all projects (disadvantaged communities are eligible for more). Additionally the program is utilizing 0% financing on the loan portion as incentive to expedite projects for 2009 construction. If the deadlines outline below are not met, the program reserves the right to offer higher interest rate loans. The program is tasked with moving the stimulus money quickly and a benefit is being offer to systems that can demonstrate this.

After the public comment period, the IUP will be finalized and submitted with the 2009 ARRA DWSRF Grant Application as well as the 2009 DWSRF Capitalization Grant Application to the Environmental Protection Agency.

 

Requirements

As a result of receiving additional funding through the American Recovery and Reinvestment Act (ARRA), additional requirements will be necessary that differ from our typical program.

  • Contract/Procurement Documents shall include Davis-Bacon Wage Requirements
  • Contract/Procurement Documents shall include provisions for the Buy American Clause.
    • This includes Iron, Steel and Manufactured Goods.
    • It this condition can not be achieved, a waiver can be applied for.
  • By-pass Provisions of the IUP are necessary to meet the intent of ARRA funds. Projects indentified on the Primary Project List were indentified to advance to construction within 2009.

Substantive Changes

  1. Section 1. Introduction, Section 3. Financial Status and Section 5A. Funds available; all contain changes that show the new dollar amounts of DWSRF funds available. Modified to include $19.5 Million in funding from the American Recovery and Reinvestment Act (ARRA).
  2. Section 5A. Funds Available. Table 5-1 was added to represent funding commitments on past IUPs that have not established a loan commitment at this time. These commitments were indentified for 2009 construction funding. Additionally, the DWP has removed limits for maximum allotment to any one project, community or system in an effort to advance projects to construction.
  3. Section 5F. Changes in procurement requirements to support provisions in the ARRA. Davis-Bacon Wages apply and By American provisions need to be included in all contract documents/procurements.
  4. Section 6B. The project by-pass provisions have been modified to support the intent of the ARRA funds. The deadlines are outlined above for primary list projects. Projects on the backup list must meet the following schedule, when contacted by the DWP:
    1. Respond in writing to the DWP within 7-days to commit project funds.
    2. Engineering agreement (if necessary) in place within 15-days
    3. Submit Environmental Review within 45-days
    4. Loan obligation within 120-days.
  5. Section 6F. Project Priority Ranking System was modified to meet the intent of the ARRA. The DWP maintained priority ranking to address public health first and then readiness to proceed. Populations under 10,000 and disadvantage communities received priority ranking as well. Also, Green Infrastructure scoring was added. It is the DWP’s goal to indentify the 20% ($3.74 million) requirement in the ARRA fund for Green Infrastructure for the projects listed on the primary project list. If this requirement is not met, additional project solicitation may necessary.
  6. Section 7A. Financial Aspects – General.
    1. MMBB Application Deadline by March 18, 2009
    2. Loan Obligation by June 17, 2009
    3. Bid Award by July 1, 2009.(to receive 0% interest loans, late obligations will receive standard DWSRF interest rate loans).
    4. Projects on the backup list must obligate a loan within 120 days and meet interim deadlines to qualify for 0% financing. *
  7. Section 7B. The financial Terms describe eligibility for project to receive 30 percent forgiveness and zero percent financing.
  8. Section 7I. Regarding project funds indentified on previous IUPs for projects entering into construction prior to July 1, 2009.
  9. Section 8I. Non-Disadvantaged Community Assistance. 30% forgiveness, 0% interest.
  10. New Attachment A – Financial Status of DWSRF, Attachment F – 2009 Primary Standard Project List and Attachment G – 2009 Backup Standard Project List are included for review.

Advancing the projects identified in the intended use plan is very important to support the intent of the ARRA. Please do not hesitate to contact Andrew Begin at 287-2647 or andrew.begin@maine.gov or Nate Saunders at 287-5685 or nathan.saunders@maine.gov , with questions regarding this process.

 

*It is strongly encourage for the first 5 to 10 million in projects on the backup list, that initial phases of work begin. These phases of work may include; 1) Capacity Review, 2) Environmental Review, 3) Engineering Agreement, 4) Design and 5) MMBB Application.