Drinking Water State Revolving Fund Ashraf Gabour Program Manager CERO/SERO
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Drinking Water State Revolving Fund
Ashraf Gabour Program Manager CERO/SERO
MassDEP Municipal Services
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Water Pollution Abatement TrustSue Perez
Nate Keenan
Heather Saxelby
O’Donnell
MassDEPSteven McCurdy
Joe Delaney
John Felix
Jointly Administered
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•The Safe Drinking Water Act,as amended in 1996, established the Drinking Water State Revolving Fund to make funds available to drinking water systems to finance infrastructure improvements.
• App. $80 Million in financing offered to communities yearly.
DWSRF Purpose
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Traditional DWSRF projects
•Water Treatment Plant improvements
•Distribution System improvements
•Water Storage facilities
NOTE: DWSRF is a financing source, not a regulatory program. If a project is permissible under statutes or regulations, it can be financed with DWSRF.
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Non-traditional DWSRF projects
•Energy efficiency within system
•Renewable Energy at WTF
•Water System Planning
NOTE:DWSRF is principally concerned with public health, but CWSRF can finance any water quality improvement project. CWSRF is therefore often a better solution for issues like recharge, stormwater management, etc.
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DWRSF ScheduleTwo year time line
• Project Evaluation Form (PEF): August 15 2014
• Projects are ranked by Mass DEP: Fall 2014
• Mass DEP publishes Intended Use Plan (IUP): March, 2015
• Local Authorization (Town Meeting/City Council): June
30, 2015
• Submitting Loan Application to DEP: October 15, 2015
• Project Approval Certificate (PAC) MassDEP: December
30, 2015
• Commence of Construction: June 30, 2016
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Ranking of Projects (PEF)
Rank Description
Tier 1 Projects that are proposing to correct a serious existing problem with the water supply or addresses water supply issues that are showing evidence of becoming serious and will likely exceed a standard or compromise the use of a water supply if not corrected. Exceedance of an MCL, TT, MRDL, Action Level, and/or MassDEP ORSG Level.
Tier 2 Projects that are being undertaken to prevent a potential serious threat to a major water system component.
Tier 3 Projects are those undertaken to address exceedances of Secondary Maximum Contaminant Levels (SMCL) that compromise the potability of a water supply.
Tier 4 Projects that are proposing to upgrade/rehab/replace water supply infrastructure components that are approaching or have passed their planned useful life-cycle
Tier 5 Infrastructure components that have an indirect connection to providing safe drinking water (fencing, meters, etc.)
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Why Borrow From the Trust
Benefits of Using the Trust• What does the 2% rate mean for
your community?
• On an average $5m loan the community would save $738,144 over the life of the loan (using current market rates)
• Equates to a 40% interest subsidy
• Savings generated through economy of scale
• Underwriters fees
• FA fees
• Bond Counsel fees
2% Loan vs Market Rate
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Loan Terms and FeesClean Water
Drinking Water
Interim Loan
Loan Rate2% (20 Years)
Calculated (30Years)*2%
½ MMDT Rate (0.10%)
Max. Term 30 years 20 years 1 year
Admin Fee 0.15% 0.15% N/A
Effective Loan rate
2.15% (20 Years)2.15% N/A
Origination Fee (one-time)
Approx. $7.50/$1,000**
Approx. $7.50/$1,000
$500-$1,000
* Rate calculated at time of bond sale, estimated between 2.4-2.9%** To be determined at time of bond sale to offset costs
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Borrower Loan Application• Due to MassDEP October 15, 2015
• Loan Application has three parts1. Applicant Information - Authorized
Representative, Local Appropriation etc.
2. Project Requirements - Plans and Specifications, Cost, Schedule, etc.
3. Supplemental Requirements - Permits, Planning, Professional Services Agreement, etc.
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Application Requirements•Certificate of Title
•MEPA
•Historic Preservation
•Conservation Commission
•Flood Insurance
•DW Permits
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MassDEP Project Approval Certificate (PAC)
• PAC Issued by MassDEP to the
MWPAT
• A copy is sent to Community
• PAC certifies project eligibility,
costs, and lists conditions
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• Before bidding, MassDEP must give “Permission
to Advertise”
• Bid Specs/Contracts must be approved by
MassDEP
• MassDEP Civil Rights Section reviews and
approves DBE participation
• MassDEP reviews bid results and issues
“Authorization to Award”
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MassDEP Project Regulatory Agreement (PRA)
• Contract between MassDEP and Borrower
• Establishes MassDEP control over project
• Outlines project eligibility and funding
• Establishes disbursement procedures
• Loan closeout process
• Legal requirements of Borrower
• Discusses project defaults and how to remedy
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Disbursements• Proceeds of the loan are generally disbursed to the
community monthly
• “Payment Requisition” is completed by the community and
forwarded to MassDEP with the appropriate documentation
• MassDEP reviews the request and approves eligible costs
• MassDEP forwards the request to the MWPAT
• MWPAT wires to borrower every Thursday with funds often
available the next day
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DWSRF Contact information http://www.mass.gov/dep/water/wastewater/wastewat.htm#dwsrfFinancial•Sue Perez 617-367-9333 x816•Nate Keenan 617-367-9333 x508 •Heather Saxelby O’Donnell 617-367-9333 x584
Program•Steve McCurdy 617-292-5779•Joe Delaney 617-292-5808 •John Felix 617-292-5523•Ashraf Gabour 617-556-1076