2014 DRINKING AND CLEAN WATER STATE REVOLVING FUND PRE-APPLICATION WEB CONFERENCE

1. 2014 DRINKING AND CLEAN WATER STATE REVOLVING FUND PRE-APPLICATION WEB CONFERENCE

2. Introduction • Welcome • Project Oversight • Luis Farias, DWSRF Project Coordinator: (512) 475-4816 • Mark Evans, CWSRF Project Coordinator: (512) 463-8510 • Scot Foltz, Director: (512) 475-2070

3. Introduction • Webinar Information • All participants microphones and telephones are muted. • You can ask questions via the questions menu option on the GoToWebinar Menu. • If we are not able to answer your question during the presentation we will follow-up with a Q & A document to all participants. Additional questions may be sent to the e-mail address below and will be answered following the webinar. Pre_Application_Conference_Requests@twdb.texas.gov

4. Introduction • Agenda • General Information • State Revolving Fund Program Information • Application Process/Closing • Drinking Water SRF Program Information • TCEQ FMT Requirements/Assistance • Clean Water SRF Program Information • Application Requirements & Components • Additional Resources

5. STATE REVOLVING FUND GENERAL INFORMATION

6. General Information • State Revolving Fund Program Information • Invitation Process - First-come/First-served • Applications received between noon August 15 and noon August 30, 2013 will be considered in rank order. • Invited Projects List • Readiness to Proceed (RTP) • updated RTP form can be sent to rtp_updates@twdb.texas.gov

7. General Information • Application Process • Applications will be accepted beginning August 15, 2013 at 12:00 PM • Processing of applications will begin August 30, 2013 at 12:00 PM • Application must be administratively complete to begin the technical review • Technical Review: approx. 60 days, then scheduled for a Board meeting • Closing Process • Document review 60-90 days from Board commitment • All funds escrowed; interest begins to accrue

8. 2014 DRINKING WATER STATE REVOLVING FUND

9. DWSRF Program • Funding Options • Planning, Acquisition and Design Funding (PAD) • Construction Funding • Pre-design Funding • Loan Terms • 10 Years maximum for PAD • 30 Years maximum for Disadvantaged Communities • 20 Years maximum for all others

10. DWSRF Program • Loan Origination Fee • 2.25% • Origination assessed only on loan amount • Interest Rates • Thomson-Reuters Municipal Market Data (MMD) scale • 1.25% below market Actual rates will vary depending on length, time of closing and structure. Rates are for illustrative purposes only. Contact TWDB staff at (512) 463-6690 for lending rate scale or other inquiries.

11. DWSRF Program • Additional Subsidy • Disadvantaged Communities - up to 30%, 50%, or 70% Loan Principal Forgiveness • Green Projects or Green Project Components - up to 15% Loan Principal Forgiveness • Very Small Systems (up to 1,000 persons) - up to 100% Loan Principal Forgiveness (maximum of $200,000)

12. DWSRF Program • Outlay Reporting Process • Release of funds for costs incurred • Required outlays • PAD (Quarterly) • Construction (monthly) • Invoices

13. DWSRF Program • Special Funding Conditions • Davis-Bacon Act • Compliance with Crosscutting Authorities • Environmental - National Environmental Policy Act (NEPA) • Social policy - Disadvantaged Business Enterprises (DBE) • Economic - Contract with debarred or suspended firms • Financial, Managerial and Technical (FMT) Assessment • State Water Plan Consistency (New Water Source)

14. DWSRF Programquestion & answer

15. Texas Commission on Environmental QualityFMTREQUIREMENTS & ASSISTANCE

16. TCEQ FMT • Additional Requirements for Application • Financial, Managerial and Technical (FMT) Assessment Report by TCEQ • FMT report is required to close the loan • Need some help? • TCEQ currently contracts with Texas Rural Water Association to provide water and waste water utilities FMT assistance • Assistance is free and on site • Wide variety of assistance available

17. TCEQ FMT • M for Management • Hiring • Planning • Paperwork • F is for Financial • Rate setting • Funding sources • Budgets • T is for Technical • Water loss • Disinfection • Sampling

18. TCEQ FMT • How Does It Work? To make a referral: • Fill out the request form, its on line, and/or • www.tceq.texas.gov/utilities/fmt • Call, write, or email TCEQ’s Stacy Foster • Phone (512) 239-3105 • Email stacy.foster@tceq.texas.gov • Address P.O. Box 13087, MC-153 Austin, Texas 78701-3087

19. TCEQ FMTquestion & answer

20. 2014 CLEAN WATER STATE REVOLVING FUND

21. CWSRF Program • Program Changes to CWSRF in 2014 • Increase in amount of interest rate subsidy • 155 basis points for equivalency projects (Federal funds) • 120 basis points for non-equivalency projects (State funds)

22. CWSRF Program • Funding Options • Planning, Acquisition and Design Funding (PAD) • In the CWSRF, funding for land acquisition is eligible only if land purchased is integral to the treatment process or used for the ultimate disposal of residues resulting from such treatment. This includes land that is used specifically to treat water (e.g., effluent disposal fields, facultative lagoons, etc.) and excludes land for WWTP sites, easements, etc. • Construction Funding • Pre-design Funding • Loan Terms • 10 years maximum for PAD • 30 years maximum for Construction (no disadvantaged status requirement)

23. CWSRF Program • Equivalency vs. Non-Equivalency • Equivalency projects • Receive funding from the Federal capitalization grant • Lower interest rates (1.55% below market rate) • Disadvantaged subsidy in form of loan forgiveness • Follow Federal process including Disadvantaged Business Enterprise (DBE), Federal crosscutters and Federal forms, additional planning and design requirements • Non-equivalency projects • State funds • Interest rate of 1.20% below market rate • No DBE, Federal crosscutters

24. CWSRF Program • Additional Subsidy • Disadvantaged Communities - up to 30%, 50%, or 70% Loan Principal Forgiveness • Green Projects or Green Project Components - up to 15% Loan Principal Forgiveness

25. CWSRF Program • Loan Origination Fee • 1.85% • Origination assessed only on loan amount • Interest Rates • Thomson-Reuters Municipal Market Data (MMD) scale • 1.55% (equivalency) or 1.20% (non-equivalency) below market

26. CWSRF Program Actual rates will vary depending on length, time of closing and structure. Rates are for illustrative purposes only. Contact TWDB staff at (512) 463-6690 for lending rate scale or other inquiries.

27. CWSRF Program • Outlay Reporting Process • Release of funds for costs incurred (reimbursement, for equivalency projects) • Release of funds for milestone (non-equivalency projects) • Required outlays • PAD (Quarterly) • Construction (monthly) • Invoices

28. Cwsrf programquestion & answer

29. Application Requirements & Components

30. Application Requirements • Two Hard Copies • Double Sided • One Marked Original • One Electronic Copy • CD/DVD • Flash/Thumb Drive

31. Application Requirements • Applications will be accepted beginning August 15, 2013 at 12:00 PM CT • Applications will not be accepted by E-mail

32. Application • Standard Application Form • Used for all funding programs • Skip questions specific to other funding programs http://www.twdb.texas.gov/financial/applications

33. Application Components • Part A - General • A7g: Applicant’s PRIMARY contact • A11: Additional funds chart • A12: DUNS number and System for Award Management (SAM) Registration

34. PART A - generalquestion & answer

35. Application Components • Part B - Financial • B2: Five year comparative system operating statement • B3: Current average residential usage and rate information • B15 Proforma; Three different options depending on proposed repayment

36. B2 – Five-year Operating Statement Illustration Five years of information. Include only revenues that are pledged for repayment. Don’t include non-cash expenses, like depreciation. Don’t include developer’s contributions and transfers from other funds.

37. B15 – Pro forma Illustration Include every year from loan closing until final payment. Net revenues same as the most recent in B2 table. Net revenues only increase in a year due to rate increase, footnote increase amount. This is illustrative, interest rates and principal amounts change.

38. PART b – financialquestion & answer

39. Application Components • Part C - Legal • C1 & C2: Legal citations of applicable laws • C3: Provide a clear statement of pledge • C5: Make approved application amount “up to” a certain dollar level

40. Application Components • Part C - Legal • C8: List ALL consultants • Draft contracts are required prior to commitment/Executed contracts prior to closing. • Contracts must be awarded according to Disadvantaged Business Enterprises (DBE) rules. • C12: Attach a Site Certificate (ED-101) documenting ownership interest if all necessary land and easements for the project have already been acquired. If acquisition of property is still needed, provide a certification of the legal power and authority to acquire the property and whether TWDB funding is being requested for acquisition costs.

41. part c – legalquestion & answer

42. Application Components • Part D - Engineering • D1: Preliminary Engineering Feasibility Data • A description and purpose of the project, including existing facilities. • A map of the service area and drawings as necessary to locate and describe the project. • A project schedule including proposed timing of funding needs for phases of the project. Schedule should include: • Closing • Planning Complete (Environmental and Engineering) • Construction Start First Contract • Construction End Last Contract • No. of Proposed Contracts • DWSRF applicants must complete a Projected Draw Schedule

43. Application Components • Part D - Engineering • D1: Preliminary Engineering Feasibility Data • A copy of current and future populations and projected water use or wastewater flows. • A description of alternatives the applicant has considered (or to be considered during detailed planning) and reasons for the selection of the project proposed.

44. Application Components • Part D – Engineering (cont) • D1: Preliminary Engineering Feasibility Data • Construction Funding - Provide Engineering Feasibility Report in accordance with guidance TWDB-0555 (DWSRF) or TWDB-0556 (CWSRF) • D2: Budget • Budget form TWDB-1201

45. Application Components • Part D – Engineering (CWSRF only) • D11: The applicant must be a Designated Management Agency (DMA) for wastewater collection and treatment. • Form WRD-210 • Required as per Section 208 of the Federal Water Pollution Control Act, as amended, and submitted to TCEQ for inclusion in the Texas Water Quality Management Plan • D12: List all major permits necessary for project

46. part d – engineeringquestion & answer

47. Application Components • Part E - Environmental • E5: If an environmental determination has already been issued for the project, attach a copy of the determination and all supporting documents to E5. • E3: Requesting a Categorical Exclusion? Please see: • DWSRF: See 31 Texas Administrative Code 371.42. • CWSRF Equivalency: 31 TAC 375.62 • CWSRF Non-equivalency: 31 TAC 375.52 • E1: If E3 – E5 do not apply, please provide a discussion of any known permitting, social, or environmental issues that may affect the evaluation of the project alternatives or implementation of the chosen project.

48. Application Components • Part E – Environmental – Timing and Budget • PAD: Planning, Acquisition, Design Funding • Planning phase: Environmental Review must be completed before funds can be released for Acquisition & Design. • Construction Funding • If PAD through TWDB then Environmental Review is already complete • Pre-Design Funding (Planning through Construction) • Is project CE-able? Finding from another agency? Can you provide a complete environmental report?

49. part e – environmentalquestion & answer

50. Application Components • Part F - Planning and Water Conservation • F1: Water Conservation Plan and Utility Profile (TWDB-1965) • 5 & 10 year targets in gallons per capita per day (GPCD) • Total GPCD, Residential GPCD, and Water Loss in GPCD • Plans should be developed after and based on completed Utility Profile and Water Loss Audit