dat tran, p.e., chief drinking water technical assistance program 1
TRANSCRIPT
Dat Tran, P.E., Chief
Drinking Water Technical Assistance Program
PROPOSITION 1
Drinking Water Grant and Loan
Program
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Meeting Purpose
*Obtain public input on Drinking Water Program
*Provide information on Program
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Topics of Discussion
*Application Process
*Eligible Projects
*Eligible Applicants
*Funding Limits – Set by Chapter 5
*Proposed Grant Allocation
*Loans
*Prioritization of Projects
*Next Steps
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Application Process
*DWSRF Application
*Applications submitted via Financial Assistance Application and Submittal Tool (FAAST)
*All DWSRF requirements apply
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Eligible Projects
*Public water system infrastructure improvements and related actions to meet safe drinking water standards
*Planning Projects
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Eligible Applicants
*Public Agencies
*Non-profit organizations
*Public utilities
*Federally recognized Indian tribes
*State Indian tribes
*Mutual water companies
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Funding Limits
*$260 million allocated for Program
*Up to $5 million grant per project
*Up to $20 million grant per project that provides regional benefits, at least one shall be small disadvantaged community
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Grant Allocation
*Grant amounts based on Table 1 (See next slide)
*100% Grant for SDAC, schools, and economically distressed areas
*$25,000 per service connection maximum or Board Approval
*50,000 per service connection maximum for regional projects
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Water Rate as Percent of
MHI1
Percentage of Total
Project Cost2
Maximum Grant Amount
($ million)3
Approximate Monthly Water Bill Based on
2015 State MHI Data4
WMHI < 1.5%
1.5 ≤ WMHI < 2 65% 5 $612 ≤ WMHI < 2.5 70% 5 $81WMHI ≥ 2.5% 80% 5 $102
SDAC NA 100% 5 NA
2Remainder of Project Cost will can be a Drinking Water Loan or other non-state water board grant. 3A maximum grant amount of $5 million per project, or $20 million per regional project where at least one entity is a DAC.4These approximations were based on 2015 MHI amounts of $48,875 to qualify as a DAC and $36,656 to qualify as a SDAC. Applicants will use the MHI for their service area to calculate % of water rate to MHI.
Loan or Raise Rates to ≥ 1.5%
1Public Schools for which water rates are not charged, the Division may approve 100% grant up to a maximum of $5 million. Economically distressed areas as defined by Chapter 2, Section 79702 (K) may receive 100% grant.
Affordability Criteria Grant Amount
DAC
Table 1 – Proposed Local Cost Share Requirements
Loans
*Extremely low interest loans available
*Interest rate at ½ GO Bond Rate (2015 Interest rate is 1.663%)
*Maximum 30 year term
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Prioritization of Projects
*Small Community Water System in DAC
*Shared solutions for multiple communities
*DWSRF Categories
*Readiness to proceed
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Example
ABC Water Company’s service area has 150 service connections, a MHI of $48,000 and water rates of $81 per month. The proposed project cost is $6 million. How much grant are they eligible for?
Step 1: Are they a DAC?
MHI is less than $48,875 so yes they are a DAC.
Step 2: Are they a SDAC?
MHI is more than $36,656 so they are not a SDAC.
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Example Continued
ABC Water Company’s service area has 150 service connections, a MHI of $48,000 and water rates of $81 per month. The proposed project cost is $6 million. How much grant are they eligible for?
Step 3- What is the water rate as a percentage of MHI?
= Monthly Water Bill X 12 = $81 per month X 12
Service Area MHI $48,000
= 0.02025 X 100 = 2.025%
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Example Continued
ABC Water Company’s service area has 150 service connections, a MHI of $48,000 and water rates of $81 per month. The proposed project cost is $6 million. How much grant are they eligible for?
Step 4 – Go to Chart
DAC, Water Rate is 2.025% of MHI is eligible for Up to 70% grant, not to exceed $25,000 per connection
=0.70 X $6 million = $4,200,000
Step 5- Check against connection cap = $25,000 X 150 connections = $3,750,000
Project is eligible for $3.75 million grant and $2.25 million in loan 14 of 17
Affordability Criteria Grant Amount
Water Rate as Percent of
MHI1
Percentage of Total
Project Cost2
Maximum Grant
Amount ($ million)3
Approximate Monthly
Water Bill Based on
2015 State MHI Data4
DAC
WMHI < 1.5% Loan or Raise Rates to ≥ 1.5%1.5 ≤ WMHI < 2 65% 5 $61 2 ≤ WMHI < 2.5 70% 5 $81
WMHI ≥ 2.5% 80% 5 $102 SDAC NA 100% 5 NA
1Public Schools for which water rates are not charged, the Division may approve 100% grant up to a maximum of $5 million. 2Remainder of Project Cost will can be a Drinking Water Loan or other non-state water board grant.
3A maximum grant amount of $5 million per project, or $20 million per regional project where at least one entity is a DAC.
4These approximations were based on 2015 MHI amounts of $48,875 to qualify as a DAC and $36,656 to qualify as a SDAC. Applicants will use the MHI for their service area to calculate % of water rate to MHI.
Discussion Topics
*Local Cost Share Requirements
- What do you think about percentages presented in Table 1?
- 100% grant for SDACs, schools and economically
distressed areas?
- Other comments or questions?
*Per service connection caps $25,000 and $50,000 for regional projects
- What do you think of limits?
- Should the caps be higher or lower?
- Other comments or questions?
*Regional projects - Should regional project involve 3 or more
water systems?
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Next Steps
*Take Feedback and Insert Requirements into IUP- April 2015
*Draft IUP Posted on Website – May 2015
*Public Meetings – June 2015
*Final IUP Adopted – August 2015
*Application Solicitation - Ongoing
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Contact Information
For more information please contact:Brian Kinney, P.E.
(916) 449-5630
Jennifer Toney, P.E.
(916) 341-5646
Dat Tran, P.E.
(916) 248-2719
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