State Revolving Fund 101 · SRF 101 Modules • Module 1 – What is a State Revolving Fund •...

State Revolving Fund 101

SRF 101 Modules

• Module 1 – What is a State Revolving Fund• Module 2 – Getting Started• Module 3 – Planning Requirements• Module 4 – Plans and Specs• Module 5 – Priority List Process• Module 6 – Loan Application and Agreements• Module 7 - Construction• Module 8 – Procurement, Disbursements,

and Loan Repayments

What is the State Revolving Fund?

• Provide low interest loans for drinking water, wastewater, and storm water facilities

• Revolves using loan repayments, investment earnings, and bond proceeds

• Approximately $250 million available annually

• The Clean Water State Revolving Fund (CWSRF) Program funds infrastructure that protects public health, improves water quality, or promotes alternative water supply projects.

• The Small Community Wastewater Facilities Grants (SCWFG) Program provides grants to qualifying local governments for improvements to their wastewater treatment systems.

• The Drinking Water State Revolving Fund (DWSRF) Program funds infrastructure projects that are intended to facilitate compliance with the requirements in the Safe Drinking Water Act.

What Type of Programs are There?

DIAGRAM EXAMPLE

Text 1

How do the Programs Work?

CWSRF Eligible Sponsors

• Local governments are eligible for loans to control wastewater, stormwater and non-point source pollution

• Non-governmental parties are eligible for loans to control stormwater pollution related to agricultural operations.

DWSRF Eligible Sponsors

• All cities, counties, and authorities

• Private drinking water systems

Eligible Projects

Wastewater collection and treatment

Stormwater Reuse

Drinking Water distribution and treatment

What are the Loan Terms?

• Generally, these loans have 20 year terms, but terms up to 30 years are possible for financially disadvantage communities.

• Semi-annual repayments begin no more than one year after construction is complete.

• Financing rates are fixed upon loan execution and average less than half of the market rate.

State Revolving FundLoan Interest Rates

• Loan interest rate is a percentage of the basic financing rate (Thompson 20-bond GO index)

• Interest rates range from 0 percent to the market rate for CWSRF loans and 0 percent to 75 percent of the market rate for DWSRF loans

State Revolving FundLoan Interest Rates

• CWSRF uses an affordability index which is influenced by economic conditions such as:• Household income• Unemployment• Poverty

• DWSRF is based on the market rate and MHI

Financing Rates/Interest Rates

• CWSRF Financing Rate

• 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 𝑅𝑅𝐹𝐹𝑅𝑅𝑅𝑅 = 𝑀𝑀𝐹𝐹𝑀𝑀𝑀𝑀𝑅𝑅𝑅𝑅 𝑅𝑅𝐹𝐹𝑅𝑅𝑅𝑅 − 4 + 4

1+ 100𝐴𝐴1

3 − 1𝐿𝐿𝐿𝐿𝐿𝐿(𝑃𝑃𝐿𝐿𝑃𝑃.)

• DWSRF Interest Rate

• 𝐼𝐼𝐹𝐹𝑅𝑅𝑅𝑅𝑀𝑀𝑅𝑅𝐼𝐼𝑅𝑅 𝑅𝑅𝐹𝐹𝑅𝑅𝑅𝑅 = 𝑀𝑀𝐹𝐹𝑀𝑀𝑀𝑀𝑅𝑅𝑅𝑅 𝑅𝑅𝐹𝐹𝑅𝑅𝑅𝑅 𝑥𝑥40 𝑥𝑥 𝑀𝑀𝑀𝑀𝑀𝑀

𝑆𝑆𝑀𝑀𝑀𝑀𝑀𝑀 +15

100

• 0.25% reduction in agreements requiring Davis-Bacon• 0.75% reduction in agreements requiring American Iron and Steel• 0.1% reduction for projects meeting the EPA definition of Green

(0.2% water conservation for DWSRF)• 0.1% reduction for sponsors with implemented asset management

plans

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Market Rate Versus SRF

Additional Costs Associated withState Revolving Fund Loans

• Increased engineering costs• Increased administrative costs

• Planning Requirements• Davis Bacon• American Iron and Steel

• Possible increase in construction costs

• 2% loan fee

Types of Loans Available

• Planning Loan• Design Loan• Construction Loan

Construction Loan Process

Request for InclusionForm

Planning Document

Agency Reviews(USFWS, USDA, DEP, DOT,

WMD, etc.)

EnvironmentalInformation Document

DEP Writes

Readiness-to-Proceed

Priority List Public MeetingDEP Holds

Loan Agreement Application

Loan Agreement Approx. 360 Days

Disbursement Requests(invoices required)

Contact Information

Tim Banks, P.E., Program Administrator (CWSRF)Phone: (850) 245-2969Email: [email protected] Website: www.dep.state.fl.us/water/wff/cwsrf

Shanin Speas-Frost, P.E., Program Administrator (DWSRF)Phone: (850) 245-2991Email: [email protected] Website: www.dep.state.fl.us/water/wff/dwsrf

State Revolving Fund MS35053900 Commonwealth BlvdTallahassee, FL 32399-3000

mailto:[email protected]

http://www.dep.state.fl.us/water/wff/cwsrf


http://www.dep.state.fl.us/water/wff/dwsrf

Questions?

Quiz

What are the sources of funds for the SRF programs?a) Martian investorsb) The toilet paper taxc) Federal Capitalization Grants, State Match,

Repayments, and Interestd) Thomas’ Lemonade Stand

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and Loan Repayments

Getting Started in the SRF Program

How Do I Start the Process?

• The simplest way to initiate the SRF process is to complete and submit a Request for Inclusion (RFI) Form

• The CWSRF form can be found at http://www.dep.state.fl.us/water/wff/wwmanual.htm under Planning Documents

• The DWSRF form can be found at http://www.dep.state.fl.us/water/wff/dwmanual.htm under Facilities Planning Documents

• Once a RFI form has been submitted, a project manager will be assigned

• The project manager will guide your project through the entire SRF process

http://www.dep.state.fl.us/water/wff/wwmanual.htm

http://www.dep.state.fl.us/water/wff/dwmanual.htm

CWSRF Request For Inclusion

DWSRF Request For Inclusion

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DWSRF Request For Inclusion

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Next…

• The next step in the SRF process is the preparation of the planning document

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Readiness to Proceed for Planning Loans

To obtain a loan for the preparation of a State Revolving Fund planning document, all that is necessary is a complete Request for Inclusion from an eligible entity, on the appropriate form (Clean Water or Drinking Water SRF) with the planning loan box checked.

The form needs to include sufficient information to tell us where the system is located and what problem needs to be corrected. See presentation on planning requirements for additional information.

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Project Design

• Plans and Specs Preparation

• Permitting

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To obtain a loan for the preparation of a State Revolving Fund design loan, we need a complete Request for Inclusion from an eligible entity, on the appropriate form (Clean Water or Drinking Water SRF) with the design loan box checked, and a planning document that has been accepted by the department.

Readiness to Proceed for Design Loans

Readiness to Proceed for Construction Loans

• Site Certification• The fiscal sustainability plan (or asset management

plan) has been completed, or will be completed and implemented prior to the last disbursement request

• The selected alternative has been evaluated for cost and effectiveness in accordance with the requirements of the Water Resources Reform and Development Act

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Quiz

What is the document we like sponsors to submit first?a) A request to deliver of a dump truck full of money

for no particular reasonb) The Request for Inclusion Formc) A pay application from a previous contractd) Documentation that you are on earth legally

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and Loan Repayments

What Information Is Required for a State

Revolving Fund (SRF) Planning Document?

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Planning Requirements

Introduction to the Planning Process

• A planning document will provide detailed information about the projectExisting conditionsNeed for the projectAlternatives evaluatedEnvironmental effects Revenues that will be dedicated to repaying the loan

• A planning document will provide the SRF Program with assurance that…The project is necessaryThe project is in the best interest of the community requesting

assistance• A planning document will provide the SRF Program with information

necessary to publish a Florida environmental information document (FEID) to meet National Environmental Policy Act requirements

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Planning Document Contents

• Executive Summary• Cost Comparison (cost

and effectiveness analysis)

• Selected Alternative• Environmental

Effects/Benefits• Public Participation

Process• Financial Feasibility• Schedule• Adopting Resolution

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Executive Summary

• Project description • Need or justification for the project • Project location mapMap must clearly show the precise location of the

proposed project

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Cost Comparison and the Selected Alternative

• Provide a cost comparison of at least 3 alternativesOne alternative may be “no action”

• The cost comparison should consist of a cost and effectiveness analysis, including… A monetary analysis

Present worth analysis of capital costs, O&M (including

replacement and energy) costs, and salvage valueThe planning period should be at least 20 yearsThe recommended discount rate is the real

discount rate from the latest revision of OMB Circular A-94 Appendix C

Nonmonetary FactorsOpportunities for water and energy conservationEtc.

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Selected Alternative

• Describe existing and recommended facilities• Provide a detailed cost estimate for the selected alternative

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Environmental Effects/Benefits

• Discuss the environmental benefits of the proposed project • Discuss any significant adverse effects the proposed project might

have on flora, fauna, threatened or endangered plant or animal species, surface water bodies, wetlands, prime agricultural lands, or undisturbed areasProvide a list of endangered/threatened plant and animal

species for the project area (from U.S. Fish and Wildlife or the Florida Natural Areas Index) Provide findings from site visits/investigations performed

by a qualified individual (e.g., a biologist) to determinethe environmental effects of the proposed project

• Will the proposed project be in a 100- or 500-year floodplain?• Will the proposed project have any significant adverse health or

environmental effects on minority or low-income communities?

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Public Participation

• Hold a public meeting before the project sponsor’s adoption or approval of planning recommendationsProvide for public participation in

the evaluation of project alternatives Inform the public of the capital cost

of the proposed project and the long-term financial impacts on customers

• Notice of the public meeting shall be in accordance with local requirements or 14 days, whichever is greater

• Provide minutes of the public meeting and a copy of the meeting notice

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Financial Feasibility

• Identify revenues to be dedicated to repaying the loan

• Discuss the existing/proposed user charge system

• Provide completed capital financing plan worksheets

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Schedule

• Provide a schedule for implementing the recommended facilities

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Adopting Resolution

Provide an adopting resolution or other action establishing a commitment by the project sponsor to implement the planning recommendations

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PE Signature and Seal; WRRDA Certifications

• Each planning document should be signed, dated, and sealed by the professional engineer (PE) in responsible charge of preparing the document

• With each planning document, submit certifications required under the Water Resources Reform and Development Act (WRRDA) of 2014“Cost and Effectiveness Certification and

Water/Energy Conservation Certification”

“Fiscal Sustainability Plan Certification”

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Agency Reviews of Planning Documents

• Planning documents will be submitted to the State clearinghouse for a multi-disciplined intergovernmental review The State Clearinghouse review

generally takes 6 to 8 weeks• In many cases, planning documents will be

submitted to the U.S. Fish and Wildlife Service for review

• In some cases, planning documents will be submitted to the U.S. Department of Agriculture Natural Resources Conservation Service in Gainesville for review under the Farmland Protection Policy Act

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Environmental Reviews and FEIDs

• The SRF Program performs an environmental review of each project

• The results of the environmental review are issued as an FEIDTypes of FEIDs:

Florida Categorical Exclusion Notice Florida Finding of No significant Impact Florida Environmental Impact Statement Florida Reaffirmation Notice

• The SRF Program publishes a notice of availability (NOA) of the FEID in the Florida Administrative Register

• Any public comments received within a 30-day comment period after publication of the NOA are considered by the SRF Program before approving the project for funding

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Quiz

What is the purpose of the public meeting on the planning document?a) To inform the public of the project details and how it

will affect them, including what they can expect to be charged in rates, fees and assessments, prior to the final decision on how to proceed

b) It’s an excuse for a really huge partyc) To vaguely describe some component of the project so

that the public doesn’t really know what to expectd) It’s just a bunch of bureaucratic nonsense and DEP

doesn’t really care whether you do it or not

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and Loan Repayments

Plans and Specifications

State Revolving Fund (SRF) Requirements for Plans and Specifications

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Plans and Specifications

• Plans and specs should be consistent with applicable facilities planning documentation

• Plans and specs should be consistent with any environmental mitigation requirements identified in the applicable Florida environmental information document prepared by the SRF Program

• Plans and specs should be signed, dated, and sealed by the professional engineer(s) in responsible charge of preparing the documentsWe will accept a scanned copy of

documents that have been physically signed, dated, and sealed

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Project Delivery Methods• Design/bid/build or construction

manager at risk Biddable plans and specs, the

FDEP permit(s), and site certification are required before a project may be listed on the fundable portion of the priority list

• Design/build The request for proposals, the

preliminary design report submitted for permitting, and the FDEP permit(s) are required before a project may be listed on the fundable portion of the priority list

Final plans and specs and site certification are required before loan disbursement for each permitted project component

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Biddable Plans and Specifications

• Biddable plans and specs should include an advertisement or invitation to bid that prescribes the time and place for public opening of bids

• If prequalified lists are used to acquire goods or services, the prequalified lists should be current and should include enough qualified sources to ensure maximum open and free competitionPotential bidders should not be precluded from

qualifying during the bid solicitation period• Biddable plans and specs should provide for award of a

firm fixed-price contract (lump sum and/or unit price) to the lowest responsive and responsible bidder

• The method of evaluating bids and determining the lowest bidder should be clearly specified if the bid form includes additive or deductive items

• In-State or local geographical preferences should not be used in evaluating bids

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Biddable Plans and Specifications

• Biddable plans and specs should identify and/or separate any SRF-ineligible work on the bid form

• Biddable plans and specs should incorporate clear and accurate descriptions of the technical requirements for materials, products, or services to be procuredDescriptions should not unduly restrict

competition“Brand name or equal” descriptions may

be usedA comprehensive “or equal” clause

should be providedThere should be no charges to

bidders/contractors for evaluation of “or-equals”

• Biddable plans and specs should include the SRF Supplementary Conditions

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SRF Supplementary Conditions

• The SRF Supplementary Conditions include the following articles:Article 1 – DefinitionsArticle 2 – Privity of Agreement/Contract

Neither the State nor the U.S. will be a party to the contractArticle 3 – Procurement Requirements

Procurement is subject to requirements in Chapter 62-503, F.A.C.Article 4 – Resolution of Protests and Claims/Disputes

Bid/award protests are to be resolved in accordance with the owner’s dispute resolution process

Claims/disputes between the owner and the contractor are to be decided by arbitration or in a court of competent jurisdiction

Article 5 – Changes to the Bidding and Contract DocumentsChanges made prior to bid opening are to be documented by addendumChanges made after bid opening are to be documented by change order

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SRF Supplementary Conditions (cont’d)

Article 6 – Bonds and Insurance Each bid is to be accompanied by a bid guarantee equal to 5% of the bid price The Contractor is to furnish a combined performance and payment bond equal

to 100% of the contract price or, if required elsewhere in the specs, separate performance and payment bonds, each equal to 100% of the contract price

Appropriate liability insurance is to be purchased and maintained Property insurance equal to the full replacement cost, or full insurable value, of

the work is to be purchased and maintained Article 7 – Award of Agreement/Contract

The contract is to be awarded to the lowest responsive, responsible bidder using a fixed-price contract

A clear explanation of the method of evaluating bids and the basis for awarding the contract are included elsewhere in the specs

Article 8 – Itemized Construction Cost Breakdown; Construction and Payment Schedules The contractor is to submit an itemized construction cost breakdown and

construction and payment schedules

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Article 9 – FDEP/USEPA Access to Records and Project SiteArticle 10 – Disadvantaged Business Enterprises

Applies only to federal capitalization grant projectsA goal of 5% of the contract Price is established for Minority Business

Enterprise (MBE) participation, and a goal of 5% of the contract price is established for Women’s Business Enterprise (WBE) participation

If bidders intend to let any subcontract, they are to take good faith efforts to assure that MBEs and WBEs are utilized when possible

Article 11 – Debarment and Suspension (Executive Order 12549) Bidders and bidders’ subcontractors may not be presently debarred, suspended,

proposed for debarment, declared ineligible, or voluntarily excluded by any federal department or agency

Article 12 – Equal Employment Opportunity (Executive Order 11246)Applies to contracts/subcontracts exceeding $10,000Goals for percentage of female and minority employeesNondiscrimination requirements

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Article 13 – Immigration Reform and Control Act of 1986 (State of Florida Executive Order 11-116)Requires the contractor and subcontractors to employ only individuals

who may legally work in the U.S.Article 14 – Environmental Compliance

Requires the contractor and subcontractors to comply with the Clean Air Act and the Clean Water Act

Article 15 – Federal Labor Standards Provision (Davis-Bacon and Related Act Requirements)Discussed in more detail on a future slide

Article 16 – American Iron and Steel ProvisionDiscussed in more detail on future slides

Article 17 – Prohibited Local Government Construction PreferencesProhibits the use of local preferences in the evaluation of bids

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Davis-Bacon and Related Act Requirements

• The Davis-Bacon Act (DBA) and related act requirements apply to all parts of an SRF-funded project, regardless of the source of funding

• The contractor shall… Pay wage rates equaling or exceeding

the minimum rates in the applicable DBA wage decision(s)

Post the applicable DBA wage decision(s) and the DBA poster at the job site

Submit weekly certified payroll reports Review and submit weekly certified

payroll reports from subcontractors

• The web site for obtaining wage decisions is:https://www.wdol.gov/dba.aspx

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Davis-Bacon and Related Act Requirements

• The project sponsor (or the sponsor’s consultant) shall…

Periodically spot check payroll reports to verify the contractor and subcontractors are paying appropriate wage ratesInterview at least 10% of the onsite

work force to verify the contractor and subcontractors are paying appropriate wage ratesSubmit with disbursement requests

certification of compliance with the DBA and related acts

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American Iron and Steel Provision• The American Iron and Steel (AIS) Provision applies to all

parts of an SRF-funded project, regardless of the source of funding

• The AIS Provision requires use of iron and steel products that are produced in the U.S.

• The AIS Provision applies to the following iron and steel products:

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Lined or unlined pipes or fittings

Manhole coversMunicipal castings

(described in more detail on the following slides)

Hydrants Tanks Flanges

Pipe clamps and restraints

Valves Structural steel

(described in more detail on the following slides)

Reinforced precast concrete

Construction materials (described in more detail on the following slides)

Municipal Castings

Access hatches Ballast screen Benches (iron or

steel) Bollards Cast bases Catch basin inlet Cleanout/monument

boxes Construction covers

and frames Curb and corner

guards

Manhole covers, rings and frames, risers

Meter boxes Riser rings (cast iron or steel) Service boxes Trash receptacles Tree grates Tree guards Trench gratesValve boxes, covers and risers

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Curb openingsDetectable warning platesDownspout shoes (boot,

inlet)Drainage grates, frames and

curb inletsHinged hatches, square and

rectangular (cast iron or steel)

Inlets Junction boxes Lampposts

• Municipal castings are cast iron or steel infrastructure products that are melted and cast

• Examples of municipal castings are:

Structural Steel

• Structural steel is rolled flanged shapes, having at least one dimension of their cross-section 3 inches or greaterSuch shapes are designated as:

Wide-flange shapesStandard I-beamsChannelsAnglesTees and zees

Other shapes include:H-pilesSheet pilingTie platesCross ties

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• Construction materials include, but are not limited to, the following:

• Construction materials do not include mechanical and electrical components

Construction Materials

Wire rod Bar Angles Concrete

reinforcing bar

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Wire Wire cloth Wire rope and

cables Tubing Framing Joists Trusses Fasteners (i.e.,

nuts and bolts) Welding rods

Decking Grating Railings Stairs Access

ramps Fire escapes Ladders Wall panels Dome

structures Roofing

Ductwork Surface drains Cable hanging

systems Manhole steps Fencing and

fence tubing Guardrails Doors Stationary

screens

American Iron and Steel Provision (cont’d)

A step certification letter from each handler of each product (preferred) or a final certification letter from the final manufacturer of each product Certification letters should be provided

prior to product purchase or with delivery of the product

A list of any incidental iron and steel products, including their cost, that are incorporated into the project and exempted from the AIS Provision under the USEPA’s national De Minimus Waiver Exempted incidental products include small

washers, screws, fasteners (i.e, nuts and bolts), miscellaneous wire, corner bead, ancillary tube, etc., provided their total cost does not exceed 5% of the total cost of all materials used in the project

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• To document compliance with the AIS Provision, the contractor should provide the project sponsor with the following:

Bid Documentation

• The project sponsor must submit the following bid documentation to receive the SRF Program’s authorization to award a construction contract:Any addenda Proof of advertising The engineer’s award recommendation and certified bid tabulationA copy of the lowest responsive, responsible bidder’s bid proposal and bid

guarantee The project sponsor’s “Certification Regarding Debarment…” The lowest responsive, responsible bidder’s certification from Appendix A

to the SRF Supplementary Conditions The applicable DBA Wage decision(s) For federal capitalization grant projects…

The project sponsor’s certification that affirmative steps were taken to encourage MBE and WBE participation

List of MBEs and WBEs participating in the contract, including anticipated contract/subcontract amount, and current certifications for the MBEs and WBEs

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Quiz

Which of the following materials must be certified as American Iron and Steel compliant if funded by the SRF?a) Manhole coversb) Steel package plantsc) Pumps and motorsd) Sludge

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and Loan Repayments

The Priority List

What is needed to get on a priority list?

Priority lists are required by both the Clean Water Act for the CWSRF and the Safe Drinking Water Act for the DWSRF

Projects must meet the readiness to proceed criteria for the type of loan requestedPlanning Loans – The submittal of a complete Request for Inclusion Form (RFI) is all that is necessaryDesign Loans – A complete RFI and a complete planning documentConstruction Loans – the planning and design process must have been completed, accepted planning document, biddable plans and specification, permits, and site certifications are required in addition to the complete RFI

• The first meeting each year, or the list adoption meeting, is held on the second Wednesday in August

• Quarterly meetings are schedule thereafter as long as funds are available

• The readiness to proceed deadline for projects to be listed is 45 days prior to the meeting for which listing is requested

When are the priority list meetings?

• As long as there are funds available, the priority score is relatively unimportant

• Once funds become limited, the priority score can determine which projects receive funds

• On the CWSRF side, projects scoring 350 points or higher will be placed on the fundable list, or at a minimum, the waiting list

• For DWSRF that score is 500

• Projects not funded at a priority list meeting may compete for funding the following year

Is the priority score important?

What comes after the list meeting?

After the list meeting, the programs develop the final agency action which lists all projects placed on the priority listProject sponsors that successfully compete for funding are notified and informed that they have 120 days to submit their loan applicationA loan agreement must be executed within 210 daysProjects not meeting the above deadlines may be removed at a subsequent priority list meeting

Grant Programs

• Small Community Wastewater Facility Grants: • Less than 10,000 residents• Per capita income less than State average

• CWSRF principal forgiveness references criteria in grant rule

• DWSRF principal forgiveness• MHI• Population enters in as well

SCWFG & Principal Forgiveness

• Principal forgiveness or grants are available to projects whose sponsors qualify as a small financially disadvantaged community

• Principal forgiveness funds are allocated in order of priority score until these funds are exhausted

• Once the principal forgiveness funds are exhausted, the small community wastewater construction grant funds are allocated to projects until those funds are exhausted

• A project sponsor can receive no more than one-quarter of the funds available in either program

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Quiz

When must loan applications be submitted?a) Whenever you feel like itb) Before you incur costsc) Before construction beginsd) 120 days after the project is placed on the priority

list

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and Loan Repayments

Loan Application Process

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When should the loan application be sent?

• The loan application is required within 120 days of a project appearing on the fundable list.

• A project sponsor that needs to expedite the process may submit a loan application prior to the priority list meeting, however, the draft loan agreement will not be sent to the project sponsor until after the final agency action has been prepared.

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Loan Applications can be found here:

Clean Water State Revolving Fund Loan Applications are available at:https://floridadep.gov/wra/srf/content/clean-water-program-manual under Loan Documents.

Drinking Water State Revolving Fund Loan Applications are available at: https://floridadep.gov/wra/srf/content/drinking-water-program-manual under Loan Documents.

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CWSRF Web Page

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Loan Application Documents

Procurement Documents

Disbursement Documents

Includes Sample Legal Opinion andSample Authorizing Resolution

DWSRF Web Page

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Procurement Documents

Loan Application Documents

Disbursement Documents

including Sample Authorizing Resolutionsand Sample Legal Opinion

Completing the LoanApplication

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The loan application consists of five parts:

• Administrative Information• Project Information• Financial Information• Authorization and Assurances• Supplementary Information

Administrative Information

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This page provides the SRF agreement writers with contact information for the Project Sponsor.

Please fill out thoroughly and completely.

Project Information

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Part A applies to Planning, Design or SSES Projects.

If the loan is for construction only, please skip to Part B.

Part B will provide additional details about construction activities including when all construction contracts will be completed.

Financial Information

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This section addresses the loan amount, repayment terms, pledged revenues, and additional obligations on the pledged revenues.

Additional attachments are needed with this section.These include:• Schedule of Prior and Parity

Liens• Schedule of Actual Revenue

and Debt Coverage• Schedule of Project Revenue

and Debt Coverage (Part V of the application)

Authorizationand Assurances

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Legal Opinion

Authorizing Resolution

Legal Opinion must include:• Availability of pledged

revenues• Right to increase rates• All senior debt

Authorizing Resolution must include:• Authorization of the

application• Pledged revenues• Authorized Representative

for signing the application• Authorized Representative

for executing the agreement


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Authorized Representative signature must be the same person designated in the Authorizing Resolution.

SampleLegal Opinion

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• On letterhead.

• States pledged revenues, their availability, and the right to increase rates to support the loan.

• Lists all prior liens to the pledged revenues.

Sample Authorizing Resolution

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Project Number

Authorizes the application

Lists the pledged revenuesand the senior debt

Designates authorized representative to sign application

Designates authorized representative to sign loan agreement

Note: If loan amount is listed in this resolution, include the phrase “excluding capitalized interest” or the loan amount will be reduced by the capitalized interest amount.

Schedule of Priorand Parity Liens

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Fill this page out with all debt to which the pledgedrevenues have already been obligated.

Include with this page:• The bond documents• The Resolution approving

the debt

Prior & Parity Liens

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List any and all debt to which the pledged revenues are committed.

Provide amortization documentation so that payment amount listed can be confirmed.

Bond Authorizing Resolution

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Provide the resolution documents whichauthorize the issuance of the bond/ note.

Financial Information –

Actual Revenues

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Fill this page with the most current financial information that can be verified by an audited report such as the Comprehensive Annual FinancialReport (CAFR).

If the audited report does not show the Revenue and Expense amounts exactly as they are listed on this form,please provide additional information and supporting documents to connect these numbers to the audited report.

Financial Information –Actual Revenues

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Page from 2013 CAFR

Information needs to be supported by audited financials.

B

If your numbers cannot be verified this way, provide an explanation and supporting documents.


Projected Revenues

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Begin with the year prior to the year in which loan payments are scheduled to begin. Reasonably project what the Revenue and Expense amounts will be for FIVEyears.

If the projected amounts increase by a large percentage, please include an explanation.

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If the projected revenues show large increases in either the revenues or the expenses, an explanation will be needed.

Typically, revenue and expenses increase by less than 5% each year.


Projected Revenues

Risk Assessment

A Risk Assessment checklist will be used to determine risk factors and the level associated with each Project Sponsor. Factors considered include: Type of entity Type of project Previous experience Financial management Level of debt and coverage Audit findings Procurement proceduresAdditional information may be requested based on the results of this review.

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Receiving the Loan Agreement

• Once a complete loan application has been submitted and reviewed by program staff, an agreement will be drafted and sent electronically.

• If it is acceptable as is, print it, have it signed, and return it to DEP for execution.

• If there are comments, address them to the agreement writer listed in the transmittal letter.

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Contact Info

For additional information and questions, please contact:

Teresa Robson at [email protected]

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Quiz

Who is allowed to sign the loan application?

a) The Project Sponsor’s secretary.b) The Project Sponsor’s consultant.c) Mickey Mouse.d) The Authorized Representative stated in the Authorizing

Resolution.

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SRF 101 Modules


and Loan Repayments

Construction Requirements

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Project Changes

• Submit change orders as executed to ensure eligibility

• Major changes may require project revision memorandum prior to work being preformed

• Final quantities adjustments

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Interim Inspections

• Initial inspection within the first six months

• Compliance with approved project

• Davis Bacon• American Iron and Steel• Safety issues• Documentation/Filing

• As needed thereafter based on the complexity of the project

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Davis Bacon Wage Rates

• Certified Payrolls• Interviews of 10

percent of the work force across the various job classes

• Disbursement requests require a certification that the requirement was met

American Iron and Steel

• Lined or unlined pipes or fittings;

• Manhole Covers;• Municipal Castings (defined in

more detail below);• Hydrants;• Tanks;• Flanges;• Pipe clamps and restraints;• Valves;• Structural steel• Reinforced precast concrete; and• Construction materials

Final Inspection/Closeout Inspection

• Final Inspection done after all contracts are complete

• Administrative closeout after final disbursement is made

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Quiz

When should change orders be submitted?a) When pigs flyb) Every blue moonc) After the final disbursement has been maded) As soon as possible after execution

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SRF 101 Modules


and Loan Repayments

Procurement, Disbursements,

and Repayments

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Procurement

If this is a competitively bid procurement, DEP Project Managers can provide the Project Sponsor with a checklist (also available on the webpage)

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Clean Water State Revolving Fund documents are available at:https://floridadep.gov/wra/srf/content/clean-water-program-manual

Drinking Water State Revolving Fund documents are available at: https://floridadep.gov/wra/srf/content/drinking-water-program-manual

Procurement

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Procurement

Once the Project Managers have received, reviewed, and organized these documents, they forward them to a Procurement team member. The documents will be reviewed for completeness and accuracy. Once it has been confirmed that all necessary documentation has been received an award letter will be written, signed and sent to the Project Sponsor.

No Disbursements can be processed until the following three items have been submitted:• The Notice To Proceed (NTP) • Insurance & Bonding (I & B) – unless

Payment and Performance Bonds were provided

• The Contract between the sponsor and the contractor

Procurement Contact Information

For additional information and questions, please contact either:

Charles Richards at [email protected]

or

Carleen Pruyn at [email protected]

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Disbursement Requests

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The disbursement request package includes the following forms:

• Disbursement Request

• Authorized Representative & Davis-Bacon Certifications

• Engineer’s Certification

• MBE/WBE Report

The disbursement request package must also include the following documents from the Project Sponsor:• Construction Pay Applications• Invoices• Proof of Payment (i.e. front and back

copies of canceled checks)

Disbursement RequestForms

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Clean Water State Revolving Fund documents are available at:https://floridadep.gov/wra/srf/content/clean-water-program-manual

Drinking Water State Revolving Fund documents are available at: https://floridadep.gov/wra/srf/content/drinking-water-program-manual

Disbursement ContactInformation


Carleen Pruyn at [email protected]

Send all disbursement requests to [email protected]

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Repayments

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Repayments

Semiannual Loan Payments are due on 15th of month.

Loan Payment Reminder emails are sent at the beginning of the month to the contacts persons set up for each loan.

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Repayments

Payments may either be made by wire through your bank or paid through our online payment portal(not all loans are available to be paid online).

Link to online payment portal is in the billing reminder email.Wiring instructions are in the billing notice.

Once payment has been received and posted to your account, an email containing a link to your loan statement, showing the breakout of the payment, will be emailed to the contacts that are set up for that loan.

Repayment ContactInformation


Hana Juman at [email protected]

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Quiz

How do you submit disbursement requests for SRF loans?

a) They can be submitted telepathically.b) The SRF program project manager is the only one you can submit it

to, even if they are out of the office.c) Submit by email to [email protected]) Put it on the coconut telegraph.

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State Revolving Fund 101 · SRF 101 Modules • Module 1 – What is a State Revolving Fund •...

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