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Page 1: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water and Wastewater Water and Wastewater Infrastructure Funding in IowaOverview of Construction Permitting and Funding Programs

Page 2: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Introduction of SpeakersIowa Economic Development AuthorityIowa Economic Development Authority• Leslie Leager, Division Coordinator• Nichole Hansen, CDBG Team Leader,

Iowa Department of Natural Resources• Jim Oppelt, Wastewater Engineering Team Leader• Mark Moeller, Water Supply Engineering Supervisor

USDA- Rural Development• Kate Sand Community Programs Director• Kate Sand, Community Programs Director

Page 3: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water Infrastructure Needs - $6B

$509,600,000 $35,900,000

Transmission/Distribution

$4 189 700 000

$294,900,000

$900,100,000 Source

Treatment$4,189,700,000 Treatment

Storage

Other

US EPA Drinking Water Needs Survey 2011; 20 year documented needs

Page 4: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Needs - $3B$748,000,000

$34,000,000

Treatment

$1,841,000,000 $352,000,000

Sewer Rehabilitation

New Sewers$1,841,000,000 New Sewers

Combined Sewers

$454,000,000 Stormwater

US EPA Clean Watersheds Needs Survey 2008; 20 year documented needs (not including nonpoint source)

Page 5: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Goals of This Presentation• Explain permitting

process requirements process requirements and milestones

• Call out key points for f di li i dfunding applications and approvals

• Help all parties involved • Help all parties involved understand interactions between permitting and f difunding agency processes

Page 6: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

K M f P i

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Key Messages from Presentation• Pay attention to the construction permitting y p g

processes and be aware of the milestones that affect the funding cycles

• Know what the next step is to keep the project imoving

Know who is responsible for each step in the • Know who is responsible for each step in the process

Page 7: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Key Messages from Presentation• Be sure to coordinate between the applicant,

consultant, grant administrator, funding agency, and any other project participants throughout the permitting and funding processespermitting and funding processes

• Public entities – be sure to contact bond counsel early in the process

U d t d th f di i iti f h • Understand the funding priorities of each agency and how they affect your project and other sources of financingg

Page 8: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Key Messages from Presentation

•Timing is critical! Please allow d t ti f j t l i adequate time for project planning

and review. Start early! y

Page 9: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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This is a long presentation presentation To break it up:• Multiple speakers• Feel free to take a quick • Feel free to take a quick break as needed, but we will take a break halfway will take a break halfway through“Mr. Osborne! May

I be excused? My I be excused? My brain is full!”

Page 10: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water/Wastewater Funders

• The Big Three▫ State Revolving Fund▫ State Revolving Fund▫ USDA Rural Development▫ Community Development Block GrantCommunity Development Block Grant

• All federal sources• Each has a slightly different missiong y• Sometimes projects need multiple

sources

Page 11: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

State Revolving FundMM

State Revolving Fund

• Funding comes from the U S • Funding comes from the U.S. Environmental Protection Agency

• Financing for water, wastewater, storm Financing for water, wastewater, storm water quality infrastructure

• Jointly operated by DNR and IFAy p y• Priorities:▫ Environmental protection▫ Public health

Page 12: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

State Revolving FundMM

State Revolving Fund

• Cities counties sanitary districts• Cities, counties, sanitary districts• Community and certain other nonprofit

water supplieswater supplies• 0% planning and design loans• Below-market interest rate loans –

current rate 1.75%• Extended financing up to 30 years for

some projects

Page 13: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

State Revolving FundMM

State Revolving Fund

• Currently fund all eligible projects• Currently fund all eligible projects• No dollar amount limits• Approximately $200 million per yearApproximately $200 million per year• Applications accepted year round with

four quarterly deadlinesq y• Can co-fund with other grant or

financing sources

Page 14: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

State Revolving FundMM

State Revolving Fund

• Eligibility DeterminationEligibility Determination▫ DWSRF monies for public health protection (comply with

SDWA) and to replace aging infrastructure.▫ DWSRF monies cannot fund projects needed mainly for

fire protection or primarily intended to serve future fire protection or primarily intended to serve future growth.

▫ Projects for health project/aging infrastructure may be sized for a “reasonable amount” of growth “over the useful life of the facility.” We consider useful life=20 yrs.useful life of the facility. We consider useful life 20 yrs.

▫ Distribution system improvements must be for improvements in water quality, pressures, or flows for current customers.

▫ Philip Metzger USEPA attorney “communities whose ▫ Philip Metzger, USEPA attorney, communities whose drinking water challenge is largely in meeting quantitydemands of new growth should look to that growth to funding drinking water safety, and not a subsidy from federal taxpayers.” federal taxpayers.

Page 15: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

State Revolving Fund ProcessMM

State Revolving Fund - ProcessPlanning and Intended Use

Plan Environmental Loan gDesign Loan Plan

ApplicationReview Application

Submit by Submit by Complete Submitted Submit by quarterly deadline

60 days f

Submit by quarterly

deadline at time of facility

plan or PER

Complete concurrently

with construction permitting

Submitted after project has gone to

bid and final costs are for

approval

plan or PER submission90 days

for

permitting process

Averages 45 – 180

costs are determined

Averages 4 weeks

approval days for completion

Page 16: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

USDA Rural DevelopmentKS

USDA Rural Development

• Funding comes from the U.S. Department Funding comes from the U.S. Department of Agriculture

• Priorities:▫ Finance water and wastewater projects serving

the most financially needy communities Correct health or sanitar iss es▫ Correct health or sanitary issues

▫ Leverage funds from other sources▫ Sustainabilityy

Page 17: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

USDA Rural DevelopmentKS

USDA Rural Development

• Public bodies, non-profit organizations Public bodies, non profit organizations and Federally recognized Indian Tribes are eligible

• Must have legal capacity to borrow and repay loans, to operate and maintain f ili ifacilities

• Facilities must benefit rural areas or incorporated communities of up to incorporated communities of up to 10,000

Page 18: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

USDA Rural DevelopmentKS

USDA Rural Development

• Direct loans, grants and guaranteed loansDirect loans, grants and guaranteed loans• Fixed interest rate based on service area

median household income (MHI)( )• No application or servicing fees• Grant amount based on MHI & need• Loan terms up to 40 years• Applications accepted year round

Page 19: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Community Development Block GrantNH

Community Development Block Grant

• Funding awarded from HUD and • Funding awarded from HUD and administered by the Iowa Economic Development Authority (IEDA)p y ( )

• Priorities:▫ Major water/sewer capital projects that meet

a community development need▫ Project readiness▫ Require grant funds to keep user rates at a ▫ Require grant funds to keep user rates at a

reasonable level for LMI population

Page 20: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Community Development Block GrantNH

Community Development Block Grant

• LMI is defined by HUD and figures are LMI is defined by HUD and figures are updated annually. 80% of the median income is considered LMI

• Based on household size• Varies from county to county• Most current information can be found at

IEDA website at i i d l twww.iowaeconomicdevelopment.com

(under Community Development tab)

Page 21: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Community Development Block GrantNH

Community Development Block Grant

• Cities with less than 50 000 residents • Cities with less than 50,000 residents, counties, non-profits

• 51% of the population must be low and 51% of the population must be low and moderate income (LMI)

• Engineering, land acquisition, and g g qconstruction are eligible

Page 22: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Community Development Block GrantNH

Community Development Block Grant

• Grant amount available based on • Grant amount available based on population

• Currently one application cycle per year. Currently one application cycle per year. IEDA will be moving to a quarterly application cycle in 2017.

• Approximately $7 million per year• Applicant must list source of local

funding, e.g. SRF or USDA

Page 23: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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All Projects Need Construction Permits

• DNR is the only permitting authority, although other y, gagencies may also review

• No matter what the funding source is water and wastewater source is, water and wastewater projects must obtain DNR construction permits prior to

iconstruction• The permitting procedures are

spelled out in process manuals p pon the DNR website

Page 24: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Permitting Process Phasesg

Plan• Project planning• Facility plan or PERPlan Facility plan or PER

• Plans and specsDesign • Construction permit

Biddi d t tiBuild

• Bidding and construction• Project completion

Page 25: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Project PlanningF ili Pl PERFacility Plan or PERPlan

• WastewaterWastewater• Water• Different processes – much more pre-• Different processes – much more pre-

planning with wastewater• Pay attention to required timeframes• Pay attention to required timeframes

Page 26: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Project PlanningF ili Pl PERFacility Plan or PERPlan

•Wastewater

Page 27: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Project Planning

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Project PlanningFacility Plan

PlanPlan

Pre-Planning Anti-Deg Analysis

Facility Plan Preparation

Facility Plan Approvaly p pp

Varies depending on

Time for preparation

Varies depending on

DNR goal is 4.5 months for depending on

complexity –plan ahead!

preparation and review + publication and 30 day

public

depending on applicant –

must be complete

before

4.5 months for final review

and approval

public comment

period

before submitting

(9b)!

Page 28: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Glossary▫ Engineer = Consulting Engineer Hired by Owner▫ PM = DNR Project Manager▫ MOR = Monthly Operating Report▫ MOR = Monthly Operating Report▫ DMR = Daily Monitoring Report▫ WLA = Wasteload Allocation▫ AAA = Antidegradation Alternatives Analysis▫ WR = Water Resources▫ ER Environmental Review▫ ER = Environmental Review▫ ERS = Environmental Review Specialist

Page 29: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Pre-Planning

B i ith O▫ Begins with Owner Realize A Need Hire an Engineer to help

C d t S lf A t (DNR M t i b it ) Conduct Self-Assessment (DNR Matrix on website)▫ Contact DNR Use Work Record Request Form

Email your request to wastewater engineering@dnr iowa gov Email your request to [email protected] Toll Free Assistance 1-855-CLN-WATR DNR Assigns PM Sets Project Initiation MeetingSets Project Initiation Meeting

▫ Schedule is Important Many milestones BEFORE Facility Plan is submitted

Page 30: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Data Collection▫ MOR – Monthly Data from DNR▫ DMR – Daily Data from Owner▫ Analysis – Conducted by consulting engineer▫ Preparation of Design Flows and Loads (Design

Criteria)Criteria)

Page 31: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Project Initiation Meetingj g▫ Participants Owner

E gi ee Engineer DNR PM NPDES Water Resources (WLA) Field Office SRFSRF Other Funding Agencies as Needed Other Interested Parties

Page 32: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Project Initiation Meetingj g▫ Project scope and schedules, facility plan

requirements▫ Financing options State Revolving Fund Planning and design loansPlanning and design loans Application timing Environmental review services

i fi i Construction financing terms

Page 33: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Flows and Loads▫ Flows and Loads are the basis of plant sizing. Based on Past Use and Future Projection.

l Flow = Amount (MGD) Load = Organic (BOD, TSS, TKN)

▫ Engineer Submits Projection to Project Manager ▫ Engineer Submits Projection to Project Manager (include all assumptions, conclusions, etc.)

▫ Project Manager Reviewsj g▫ Engineer requests Waste Load Allocation

Page 34: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Concurrence on Flows and Loads▫ Engineer Submits WLA to Water Resources along with

Project Manager Concurrence▫ WR Calculates WL based on proposed ADW & AWW flows▫ WR also determines if AAA is required Anti-degradation refers to federal regs designed to maintain

and protect high quality waters and existing water quality in other waters from unnecessary pollutionother waters from unnecessary pollution

Alternatives Analysis is an evaluation of reasonable alternatives for regulated activities that might degrade water qualityq y

Based on whether flows and/or loads are increased from previous permitted levels and new pollutants of concern will be discharged

Page 35: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• AAA▫ If required – must be submitted and approved

BEFORE submitting the Facility Planh b d ll l▫ Exhibit 9A is used to illustrate completeness

Page 36: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• AAA Public Notice▫ Prepare draft anti-deg analysis▫ 30 day public and interagency comment period▫ Engineer sends to interested parties AND

responds to any comments▫ Engineer finalizes AAA includes public notice and ▫ Engineer finalizes AAA, includes public notice and

responsiveness summary▫ Engineer submits finalized AAA to DNR PMg

Page 37: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Quick Review……what has taken place so far?Q p▫ Owner has hired an engineer and DNR has been

contactedh b ll d d l d▫ Data has been collected and analyzed

▫ Project Initiation Meeting has been held with owner engineer and DNRowner, engineer, and DNR

▫ We have agreed on flows and loads and have received Waste Load Allocation

▫ AAA is complete

Page 38: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planningi i l l• Financing - USDA Rural Development▫ Contact the Area Office for an application

processing conferenceprocessing conference▫ Loan/Grant permanent financing▫ USDA SEARCH or PPG grant (most needy USDA SEARCH or PPG grant (most needy

communities) or SRF Planning & Design (P&D) Loan for planning assistance

▫ Follow RUS Bulletin 1780-2 & Iowa Supplement to prepare PER

▫ Start the Environmental Report (ER) ▫ Start the Environmental Report (ER)

Page 39: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Preliminary Engineering Report (PER) -y g g p ( )

USDA▫ Complete Report (per Bulletin 1780-2 & p p p

Supplement) ▫ Project modest in size, design & cost▫ Sound engineering ▫ ER submitted at same time

i i i▫ Incorporates ER mitigation▫ Federal, State & local requirements

Page 40: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Environmental Report (ER) USDA• Environmental Report (ER) – USDA▫ RD reviews ▫ Environmental Assessment Notice (30 days)▫ Environmental Assessment Notice (30 days)▫ Comments?▫ FONSI Notice (15 days)FONSI Notice (15 days)▫ Mitigation measures/conditions of funding▫ Avoid action prior to Agency reviewp g y▫ Additional factors may extend timeline▫ Allow adequate time – 90 to 120 daysq 9 y

Page 41: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Facility Plan Preparationy p▫ Length of time depends on complexity of the

project and the Engineer’s and Owner’s schedulef h f l l ll ll f▫ If the facility plan will call for structures impacting

a flood plain, start the flood plain permit application earlyapplication early

▫ Engineer submits completed Facility Plan to Owner for their approval

Page 42: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Facility Plan Preparation continued….▫ Engineer submits 3 copies with schedules A, F,

and G (where applicable) Intended Use Plan application (Exhibit 8)Intended Use Plan application (Exhibit 8) ER Checklist (Exhibit 5) ER will commence concurrently with Facility Plan

re iereview Preliminary review is conducted using Exhibit 9B Engineer submits Site Survey information to DNR

Field Office, copies PM PM Initiates Site Survey Work Request

Please note: Always use up-to-date forms from the DNR manual website!

Page 43: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Site Approval (May or may not be needed pp ( y y

depending on type of project)▫ Survey for separation distances▫ Geo-tech review

Page 44: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Pre-Review▫ Completeness review based on Exhibit 9b▫ May require revisiting previous planning phases▫ May require facility plan revisions

*Provide any revisions to USDA

Page 45: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Project Planning

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Project PlanningFacility Plan

PlanPlanExample #1 – WW Treatment Disinfection Project

Pre-Planning Anti-Deg Analysis

Facility Plan Preparation

Facility Plan Approval

p j

y p pp

N/A

ili l dj i d / / Facility Plan Approved 8/5/2013

25 Business Days

Project Manager Assigned 2/28/2011Facility Plan Submitted 6/28/2013

591 Business Days

Y1.7 Years

Page 46: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Project Planning

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Project PlanningFacility Plan

PlanPlanExample #2 – Collection System Upgrade

Pre-Planning Anti-Deg Analysis

Facility Plan Preparation

Facility Plan Approval

p y pg

y p pp

N/A

ili l dj i d / / Facility Plan Approved 11/1/2013

13 Business Days

Project Manager Assigned 8/27/2013Facility Plan Submitted 10/15/2013

24 Business Days

M h1.2 Months

Page 47: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Project Planning

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Project PlanningFacility Plan

PlanPlanExample #3 – Major New WW Treatment Plant

Pre-Planning Anti-Deg Analysis

Facility Plan Preparation

Facility Plan Approval

p j

y p pp

44 Business 1,796 447 DaysBusiness

DaysBusiness

Days

6 Years6 Years

Page 48: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Is there a faster way to get Facility Plan

Approval?▫ Yes – for high priority projects -- 60 days▫ See Facility Plan Fast Track Review on website▫ See Facility Plan Fast–Track Review on website▫ Assumes the following is complete: Flows and Loads Approved WLA complete and AAA complete or not required Full access to site has been obtained, site survey is

complete, and site has been approvedp , pp Geotech report complete if required No variance needed and no new technology

proposedproposed

Page 49: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Facility Plan Review –SRFy▫ Complete facility plan and all materials submitted▫ DNR project number assigned▫ Eligible to apply for SRF and begin ER▫ Submit IUP application and Environmental

Review ChecklistReview Checklist▫ ER will begin during facility plan review▫ Communication between ER Specialist, Communication between ER Specialist,

consultant, and DNR PM critical

Please note: Always use up-to-date forms from the DNR manual website!

Page 50: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Wastewater Planning• Facility Plan Review - USDAy▫ Submit complete application (15 day/45 day

notification) / i PER/USDA review & concur

ER/USDA review/Applicant publishes notices Misc application materialsMisc. application materials

▫ Underwriting by USDA▫ Environmental notices completep▫ Letter of Conditions issued▫ Approve & obligate funds

Page 51: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

BREAK! BREAK!

Time for a 5 minute break.

Page 52: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Project PlanningP li i E i i RPreliminary Engineering ReportPlan

•Water

Page 53: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water Planning• Consult with the Water Supply Engineering pp y g g

section if there are questions about project planning or eligibility

• Prepare the Preliminary Engineering Report, following the DNR’s PER ChecklistC l f SRF Pl i d D i l • Can apply for an SRF Planning and Design loan regardless of construction financing

Page 54: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water Planning - SRF• Submit a complete and approvable PER to DNRp pp• Submit the Intended Use Plan (IUP) application by

the quarterly deadline (and ER checklist if ready)P d b i h Vi bili S lf A• Prepare and submit the Viability Self-Assessment

• DNR will assign a Project Manager and review the application and PER for eligibilityapplication and PER for eligibility

• Note: If the water system has a wastewater discharge and requires anti-deg analysis, this must be completed BEFORE the PER is submitted

• Also, if site survey needed, do it at this planning stagePlease note: Always use up-to-date forms from the DNR manual website!

Page 55: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water Planning - USDA

h ffi f li i• Contact the Area Office for an application processing conferenceLoan/Grant permanent financing• Loan/Grant permanent financing

• USDA SEARCH or PPG grant (most needy communities) or SRF Planning & Design (P&D) communities) or SRF Planning & Design (P&D) Loan for planning assistance

• Follow RUS Bulletin 1780-2 & Iowa Supplement o o US u et 780 & o a Supp e e t to prepare PER

• Start the Environmental Report (ER)

Page 56: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water Planning - USDA

li i i i ( )• Preliminary Engineering Report (PER) - USDA▫ Complete Report (per Bulletin 1780-2 &

Supplement) Supplement) ▫ Project modest in size, design & cost▫ Sound engineeringSound engineering▫ ER submitted at same time ▫ Incorporates ER mitigation▫ Federal, State & local requirements

Page 57: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water Planning - USDA• Environmental Report (ER) p ( )▫ RD reviews ▫ Environmental Assessment Notice (30 days)(3 y )▫ Comments?▫ FONSI Notice (15 days)( 5 y )▫ Mitigation measures/conditions of funding▫ Avoid action prior to Agency reviewvo d act o p o to ge cy ev ew▫ Additional factors may extend timeline▫ Allow adequate time – 90 to 120 daysAllow adequate time 90 to 120 days

Page 58: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Water Planning - USDA

S b it l t li ti (15 d /45 d • Submit complete application (15 day/45 day notification) ▫ PER/USDA review & concur▫ PER/USDA review & concur▫ ER/USDA review/applicant publishes notices▫ Misc. application materialspp

• Underwriting by USDA• Environmental notices complete• Letter of Conditions issued• Approve & obligate funds

Page 59: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

SRF ER Average Timelines – W/WWMM

SRF ER Average Timelines W/WW(in calendar days) – no snags

ER Requirement Actual Maximum

ActualMinimum

Average

C t i l 8CategoricalExclusion

178 40 75

Finding of No 398 41 173Finding of NoSignificant Impact

398 41 173

Page 60: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

SRF ER Average Timelines – W/WWMM

SRF ER Average Timelines W/WW(in calendar days) – with snags*

ER Requirement Actual Maximum

ActualMinimum

Average

C t i l 66CategoricalExclusion

566 40 111

Finding of No 1474 41 357Finding of NoSignificant Impact

1474 41 357

Page 61: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

SRF *ER S I l d

MM

SRF -- *ER Snags Include• Applicant didn’t submit full documentation• Changes in scope after ER has begun• Applicant didn’t notify ER about changes in routes or

locationslocations• Delays in getting flood plain permits• Programmatic agreements or mitigation required• Delay in applicant holding public hearing or

publishing public notice• OtherOther• **More than a snag: Applicant started construction

before ER was complete

Page 62: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

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Plans and SpecsC i P iConstruction PermitDesign

•Water and Wastewater

Page 63: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Pl d S ifi i

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Plans and Specifications• Develop preliminary plans and specifications and p p y p p

submit for review to DNR Project Manager• Review by DNR may be required at 60%

completion

Page 64: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Pl d S ifi i SRF

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Plans and Specifications – SRF• Continue coordination with environmental review

specialist• Include SRF front-ends (most projects are now

subject to new American Iron and Steel requirements)R t d t i ti f th I • Request a wage determination from the Iowa Finance Authority (or if CDBG involved, get it from IEDA)from IEDA)

Please note: Always use up-to-date forms from the DNR manual website!

Page 65: Overview of Construction Permitting and Funding Programs€¦ · Overview of Construction Permitting and Funding Programs. Introduction of Speakers Iowa Economic Development Authority

Pl d S ifi i USDA

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Plans and Specifications - USDA• Process begins after funds approved & obligatedg pp g• Follow Letter of Conditions▫ Submit plans & specs for USDA concurrence▫ Follow Free & Open Competition requirements▫ Update project cost – are additional funds needed?

S b it id th t ll li bl it h ▫ Submit evidence that all applicable permits have been obtained

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Construction Permit Application• Submit construction permit application packet p pp p

and fees to DNR• 3 sets of plans and specs signed and certified by

Professional Engineer• Design Schedules

P i f l i h i f f• Permit fee along with permit fee form

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Construction Permit Application

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Bidding and ConstructionP j C l iProject CompletionBuild

•Water and Wastewater

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Pre-Bidding - USDA• USDA – Section III of Letter of Conditions

i i i• Engineering Services• Contract Docs, Plans & Specs• Legal Services

• Interim Financing• Construction Account• System UsersLegal Services

• Property Rights• System Procedures

L Cl i I t ti

y• Other Funding

Commitments• Operating Budget• Loan Closing Instructions • Operating Budget• VA/ERP

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Bidding - USDA b i h i i bid• Obtain USDA authorization to bid

• Follow State Law and/or legal counsel in issuing & taking bids& taking bids

• Receive bids• Submit bid tabulation & recommendation to • Submit bid tabulation & recommendation to

USDA• USDA reviews total cost to total funds availableUSDA reviews total cost to total funds available• USDA concurs in award of contract• Notice of Award to contractor

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Bidding - SRF F ll t t l i i i d t ki bid• Follow state law in issuing and taking bids

• Submit bid document packet for eligibility determination and concurrence of bid awarddetermination and concurrence of bid award▫ Use checklists to assemble packet▫ Submit any addenda for approval by project

manager▫ Pay attention to Disadvantaged Business

Enterprise good faith efforts requirementp g q▫ Make sure correct wage determination was used▫ DNR issues award concurrence letter stating

amount of project eligibleamount of project eligible

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Bidding - CDBG • Procurement & Davis Bacon/ labor standards apply to • Procurement & Davis Bacon/ labor standards apply to

CDBG assisted projects.

• CDBG recipients must comply with procurement C G ec p e ts ust co p y t p ocu e e t requirements of 24 CFR Part 85.36▫ Deals with methods for procurement; (RFQ for A/E, RFP

for Admin, Sealed Bids for construction)

• Davis Bacon applies to all construction work funded in whole or in part by CDBG.

P ili t b id t j t ▫ Prevailing wages to be paid to project contractors/subcontractors.

• If project funded with CDBG and SRF, IEDA takes the If project funded with CDBG and SRF, IEDA takes the lead on Davis Bacon compliance

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Notice to Proceed - CDBG• Completion of an Environmental Review and a • Completion of an Environmental Review and a

release of funds letter from IEDA is required prior to:▫ Purchasing property (note: options are allowed before ▫ Purchasing property (note: options are allowed before

release of funds)▫ Bidding for construction/signing construction

contractscontracts• The Environmental Review process can take

between 60 to 90 days with federally mandated public comment periodspublic comment periods

• Once the Environmental Review is complete, the Authority will release funds via an official release of funds letterfunds letter

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Notice to Proceed - USDA

• Conditions required prior to Notice to Proceed▫ RD concurs in contract documents▫ RD concurs in resident inspectorp▫ Preconstruction conference▫ Final Rights-of-WayFinal Rights of Way

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Project Construction• During construction:g• All change orders must be approved by DNR

project manager• USDA▫ USDA approves all change orders

USDA fi ld ff i i f A ▫ USDA field staff monitors construction for Agency oversight

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Project Construction• Funding disbursements:g• SRF: Incur costs, weekly disbursements• USDA▫ Concurs in all pay requests – monthly▫ Applicant contribution, other funds, interim loan

fi i USDA t (i th t d )financing, USDA grant (in that order)• CDBG: Draws must be submitted at least every 6

months Submitted through Iowagrants gov months. Submitted through Iowagrants.gov. Released on reimbursement.

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Project Completion• SRF: Final inspection, final documentationp ,• USDA▫ Pre-final Inspection▫ Statement of Substantial Completion▫ Final Inspection

O ’ A t f W k▫ Owner’s Acceptance of Work▫ USDA Loan Closing – permanent financing

• CDBG: Project monitoring & close out• CDBG: Project monitoring & close out

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•Co-Funding

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Co-Funding• Even though each funding source has its own g g

mission, they overlap in many cases• Disadvantaged communities eligible for CDBG

and USDA may need both sources of funding to make project affordableSRF id f l l h• SRF can provide source for local share

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Co-Funding CDBG and USDA• IEDA works with USDA during our application review

t di j i t j tprocess to discuss joint projects

• For this year, competitive CDBG applications will h l tt f diti f USDA t ti f have a letter of conditions from USDA at time of application. Next year, this letter will be required.

CDBG li ti t d t l b i • CDBG applications accepted on a quarterly basis, starting in 2017.

J i t j t t k ti ! Pl ll d t ti • Joint projects take time! Please allow adequate time for project planning.

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Co-Funding CDBG and SRF• IEDA works with SRF/ DNR staff during our application

review process to discuss joint projectsreview process to discuss joint projects.

• For CDBG, projects need to be on the approved IUP at time of application (Not just submitted to be included on time of application. (Not just submitted to be included on upcoming IUP.) For this year, competitive applications will have an approved facility plan. An approved facility plan will be required for CDBG projects at time of p q p japplication by 2017.

• CDBG applications accepted on a quarterly basis, starting i in 2017.

• Joint projects take time! Please allow adequate time for project planningproject planning.

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•Key Messages

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It may seem like it takes a miracle to get a miracle to get a project financed and constructed, but it can be done!done!

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Key Messages from Presentation• Pay attention to the construction permitting y p g

processes and be aware of the milestones that affect the funding cycles

• Know what the next step is to keep the project imoving

Know who is responsible for each step in the • Know who is responsible for each step in the process

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Key Messages from Presentation• Be sure to coordinate between the applicant,

consultant, grant administrator, funding agency, and any other project participants throughout the permitting and funding processespermitting and funding processes

• Public entities – be sure to contact your bond ycounsel early in the process

U d t d th f di i iti f h • Understand the funding priorities of each agency and how they affect your project and other sources of financingg

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Key Messages from Presentation

•Timing is critical! Please allow d t ti f j t l i adequate time for project planning

and review. Start early! y

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•Questions?

“Excuse me, is this the Society for Asking Stupid

Questions?”