UC Davis ECI 189I by vivi07

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									California Department of Public Health Webcast
Evaluation and Design of Small Water Systems

Cost Estimating and SWS Grants/Funding
Dale Newkirk, P.E. & Professor Jeannie Darby

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Lecture Objectives
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Learn how to estimate costs for an engineering report under the State Revolving Fund Program. Learn about financial assistance available to small community water systems.

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Cost Estimating for SWS

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Sources of Cost Information
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4. 5. 6. 7.

Technologies and Costs Document for the Final Long Term 2 Enhanced Surface Water Treatment Rule and Final Stage 2 (Dec 2005) Disinfectants and Disinfection Byproducts Rule Journal articles, papers, reports. Other Engineering Reports performed recently RS Means and other cost estimating tools Discussion with water agencies in the area Contact the vendors (AWWA Sourcebook) Contact the contractors
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Fluctuations in cost
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Materials markets are fluctuating. Steel and other metals are difficult to project. Vendor quotes usually are the best source of current information.

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How does this impact cost?
Example: Steel storage tanks
Relationship between area and volume
2500
$100,000.00 $90,000.00

Tank Volume v.s. Cost

2000

$80,000.00 $70,000.00

Volume

1500
Cost

$60,000.00

Series1 1000

$50,000.00 $40,000.00 $30,000.00

Series2

500

$20,000.00 $10,000.00

0 0 50 100 Area 150 200

$0 100000 200000 300000 400000 Tank Volume (gallons)

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Economy of Scale

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Economy of Scale

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Step1-Provide a Scope for Yourself
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What problem are you solving? Is there an opportunity to consolidate? Is there an opportunity to find a new source? What needs replacement? Provide a list. What is new? Provide a list. Provide rough layouts.
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Is there enough room on-site? Does it require a building? Is there enough power on-site?
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Step 1-Provide a Scope for Yourself
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Are there sanitary hazards near-by? Are there similar facilities near-by that you can visit?

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Are their sensitive environmental issues? Is it remote? Is availability of telephone lines for telemetry a problem? Are there all year roads? How will you handle wastes generated? Avoid temptation to use band aids (solve the issue for next 20 years) How available are skilled operations staff? Remember you can be held liable for your decisions.
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Step 2-Provide Rough Layouts

Operations Building

Storage 60’

1500’

50’

Maintenanc e

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Step 3-Provide a list items for yourself
Example: 1. Expand the existing gallery by an estimated 20 feet. 2. Add 50,000 gallons of storage improvements to the existing storage for an overall 90,000 gallons of storage. 3. Provide a Pall AP-1 or equivalent membrane treatment system. 4. Re-plumbing changes to include treatment system. 5. New building improvements. 6. Monitoring equipment (turbidimeter, chlorine residual analyzer, pH, temperature) 7. Provide back wash decant and percolation pond.
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Step 4-Create a Spreadsheet and obtain cost data
ITEM
Pipe

UNIT PRICE
$26/ft.

QUANTITY
$1000 ft

TOTAL
$26000

SOURCE
RS Means

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Add Contingencies, etc.
Contractor profit @ 10% Contingency @ 25% Design, Inspection @ 20% - 25% Labor Compliance and Mobilization Demobilization @ 10% Total @ 65% - 70%

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Step 5- Summarize your cost
Item Install Membrane Filtration Plant New plumbing and pumps 50,000 gallon storage Washwater handling system Building improvements Expand water collection gallery by 20 feet Labor Subtotal Contractor profit @ 10% Contingency @ 25% Design, Inspection @ 20% Total Estimated Cost $98,000.00 $10,000.00 $50,600.00 $30,000.00 $15,000.00 $15,000.00 $15,000.00 $233,600.00 $23,360.00 $58,400.00 $46,720.00 $362,080.00
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Item

Estimated Cost

Membrane replacement
Analytical/Compliance Total 20 year PW Capital and O&M Cost

$500.00
$10,000.00 $10,500.00 $572,000.00

Consider Capital and O&M Cost
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Use a 20 year planning period Determine capital cost Determine annual O&M cost and project for 20 years to determine a total cost Labor can be escalated at about 3.5%-4.0% which is the current trend Capital expenditures escalate at 8% per year
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Cost data from reports

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Cost data from reports

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Treatment Cost Comparisons

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Cost of GAC

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O&M Costs

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Chemical Costs

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Pilot Testing Costs

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Land Cost

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Membrane Costs

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Homespring UF Membranes

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Homespring Membranes
Maximum peak flow rate (LPM/USgal) Maximum continuous flow rate (LPM/USgal) Up to 42/11

17/4.5

Minimum temperature (°C/°F)

>0/32

Maximum temperature (°C/°F)

<38/100

Approximate flush volume (litres/USgal)

45/12

Typical system efficiency*

95%

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Homespring Unit Costs
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Use $ 5,000 per unit Add 20% for multiple units in parallel Use $10,000 per year for O&M cost

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Membrane Replacement Costs

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Bag and Cartridge Filter Pumping Costs

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Well Costs
Well Size 10 to 30 gpm 30 to 100 gpm General Cost Assumptions $25,000 to $50,000 $100,000

>500 gpm

Can be as high as $1,000,000

Note: Actual costs should be verified by local drilling company

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Hydro Pneumatic Tank Cost
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$10 to $15 per gallon for 1000 gallon size. $2 per gallon for a 50 gallon tank size. Use $150 per year O&M for 1000 gallon size range.

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Pumps
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Check with pump supplier. General rule of thumb is $1000 installed for smaller size range around 50 gpm dual pumps. General rule of thumb is $10,000 to $15,000 for 100 gpm dual pumps. Allow $15,000 for a PG&E power drop if power is not available (200 foot range).
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Pipe Installation
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Check with local contractor. Rule of thumb for 4 to 6 inch range is $40 per foot. Rule of thumb for 8 and 10 inch size is $50 to $60 per foot. Rule of thumb for 12 inch is $100 per foot. This includes pipe fittings. Add 25% for seismic installation.
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Other Water System Components
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Use $5,000 for hydrant installation. Pressure regulators including box cost $25,000 per unit (8 inch pipe size rangeregulator is actually 3 inch range). Household connection cost $1,500 including meter per connection installed.

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General Guidance
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Contact vendors as needed to tie down component costs. Contact local contractors as needed to run cost opinions by them. Use pre-package units and avoid temptation for custom design which is more expensive.

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General Approach to O & M Costs
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Determine list of general activities Determine anticipated hours per year for each activity. Determine hourly rate for trade required. Determine list of direct annual charges for permitting and fees. Review sample plans to determine analyses to be performed. Use certified laboratory list of analytical charges. Include shipment fees for samples. Use unit costs per 1000 gallons for various treatment technologies to verify your costs. Don’t forget any disposal costs!
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O & M Costs

Items Labor per person Power for <100 gpm size Administration/fees Analytical Costs - Groundwater Analytical Costs – Surface water Maintenance - Groundwater

Cost Ranges $30,000 to $60,000 per year $3,000 to $5,000 $2,000 per year $2,000 per year with no treatment or compliance issues. $5,000 to $10,000 per year $1000 per year if done by operator

Maintenance – Surface water

$2,000 per year if done by operator

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Grant Assistance to SWS

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Listing of Grant Funding Sources
American Recovery and Reinvestment Act of 2009  Proposition 84  Proposition 50  Proposition 13  Community Development Block Grants  Native American Grants  USDA Grants  State Revolving Fund Loans/Grants http://www.cdph.ca.gov/certlic/drinkingwater/Pages/D WPfunding.aspx
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California Department of Public Health Safe Drinking Water State Revolving Fund

The American Recovery and Reinvestment Act of 2009 (ARRA)

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Base SRF Program

BASE SRF PROGRAM

ARRA “program”
- Some base program provisions +Special ARRA provisions

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Focus & Objectives Differ from Base SRF Program

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Key objective is to preserve and create jobs and promote economic recovery Priority for projects ready to start construction within 120 days 50% of funds for additional subsidy 20% of funds for “green” projects Within 1 year of enactment, all funds must be committed to projects under construction or having awarded contracts for construction
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Key Perspective
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ARRA appropriations are IN ADDITION TO base SRF program appropriations ARRA is not focused on building the corpus of the funds ARRA is focused on quickly delivering assistance to “ready to go” projects
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Job creation and preservation Additional subsidy (MINIMUM of 50% of cap grant)
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New ARRA SRF requirements
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Davis Bacon:  Davis-Bacon Act wage rules apply to all assistance agreements made in whole or in part with funds appropriated by the ARRA.  Department of Labor provides prevailing wage rates and instructions for reporting.

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ARRA Requirements cont….
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Iron and Steel
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All of the iron, steel, and manufactured goods used in a project must be produced in the United States. Administrator of EPA may waive this requirement if :  Inconsistent with the public interest  Sufficient and reasonably available quantities, of satisfactory quality are not produced in the US  Use of US manufactured products will increase project cost by >25% Must apply consistent with international agreements.
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ARRA Requirements cont….
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Green Project Reserve (GPR):
“To the extent there are sufficiently eligible project applications, not less than 20 percent of the funds appropriated herein for the ARRA funds shall be for projects to address green infrastructure, water or energy efficiency improvements or other environmentally innovative activities”

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ARRA Requirements cont….
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Funds may be used to buy, refinance or restructure debt obligations of eligible recipients only when that debt was incurred on or after October 1, 2008 EPA shall reallocate funds where projects are not under contract or construction within 12 months of enactment No funds may be used to acquire land or a conservation easement for source water protection, to implement source water protection measures, or to establish or implement wellhead protection programs
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DWSRF Loan Rates
Current interest rate for 2009 = 2.5017%

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Eligible Projects for this Funding

Only projects that are “ready to proceed”: • Complete application must be submitted by deadline specified by CDPH (June 2009?). • Must include final plans and specifications. • Must comply with environmental requirements at the time of application :
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Must be determined to be NEPA excluded AND CEQA exempt; OR All final CEQA documents and filings must be complete, and project must be adopted and approved by the Lead Agency.
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Plus, applicant must be able to complete the federal requirements of Section 7 of the Endangered Species Act and Section 106 of the National Historic Preservation Act within 50 60 days.

Additional Project Information
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Funding agreement cannot be issued by CDPH and construction cannot begin until final environmental clearance. Construction must begin within 60 days of executed funding agreement. Water system must have adequate Technical, Managerial, and Financial capacity.
Our CDPH District Office can provide information on this requirement.

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Any Proposition 218 requirement for a rate increase must be met prior to issuance of a funding agreement by CDPH.
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SDWSRF Economic Recovery Funding Process
• • • • • • Applicant submits a pre-application for Economic Recovery Funding (ER$) – Closed on Feb 27, 2009 CDPH reviews and ranks ER$ pre-apps – Target due date = March 15, 2009 CDPH publishes draft Project Priority List – Target due date = April 7, 2009 CDPH invites projects to submit complete application – Target due date = April 10, 2009 CDPH evaluates funding application – April thru June 2009 CDPH issues funding agreement – starting summer of 2009
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SDWSRF ER$ Project Priority List
• • Only projects that are ready to proceed will be included. Projects ranked into health-based categories
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Ranking within each category is based on:  Median household income  Consolidation of systems  Population served.

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Funding Applications
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• • • •

CDPH invites projects from PPL based on available funding.
Applicant will have 60 days to submit a completed application. There will be no extensions to this deadline. CDPH will process applications in the order received CDPH will continue to process applications until all funds have been allocated. CDPH to issue funding agreement within 60 days of determination of project eligibility and funding amount. The funding application and required documents will be posted on our website in early March.
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Contact/Resources Information
• SDWSRF program information:

http://www.cdph.ca.gov/services/funding/pages/SRF.aspx
• Email to request current program announcements:

contact SDWSRF@cdph.ca.gov

• SDWSRF Economic Recovery Pre-application
•http://www.cdph.ca.gov/certlic/drinkingwater/Pages/UniversalPreapplication.aspx

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All Small Water System Grants
Use a universal pre-application process  Use the UC Davis website to access application at: http://drinc.des.ucdavis.edu/unipreapp  Application instructions are listed at the following Website: http://www.cdph.ca.gov/services/funding/Documents/U niversalPreAppInstructions-01-2009.pdf
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Prop 50 Grants

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Proposition 50 Grants

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Proposition 50 Grants

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Proposition 84 Funding
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The sum of one $180,000,000 shall be available to CDHS for grants to small community drinking water system infrastructure improvements and related actions to meet safe drinking water standards:
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primary maximum contaminant levels chemical and nitrate contaminants community is disadvantaged or severely disadvantaged

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Eligible recipients include public agencies and incorporated mutual water companies that serve disadvantaged communities. The Department of Health Services may make grants for the purpose of financing feasibility studies and to meet the eligibility requirements for a construction grant. Construction grants shall be limited to $5,000,000 per project and not more than twenty five percent of a grant may be awarded in advance of actual expenditures.

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The Department of Health Services may expend up to $5,000,000 of the funds allocated in this section for technical assistance to eligible communities.

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Proposition 13 Funding
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Proposition 13 – The Water Bond On March 7,2000 California voters passed a water bond, "Proposition 13" DHS was designated to receive $70 million from the sale of general obligation bonds approved in the ballot measure: $68 million to be used as the state match to access ~$340 million in federal capitalization grant funds for PWS infrastructure improvements during the subsequent four years $2 million to be used to provide technical assistance to PWS including disadvantaged communities.
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Community Development Block Grants (CDBG)
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HHS Community Services Block Grant (CSBG) Program, Section 680 A 3B, Rural Infrastructure
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The HHS Community Services Block Grant program provides critical technical assistance resources for a range of programs to build capacity in disadvantaged communities.

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Community Development Block Grants (CDBG)
1.
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HUD Community Development Block Grant (CDBG) Program
The HUD CDBG program provides funding to communities for job creation, expansion of business opportunities, public infrastructure improvements, and affordable housing. CDBG funding is vital for revitalization and economic development in cities throughout the nation.

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Agriculture Rural Utilities Service (RUS)
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United States Department of Agriculture Rural Utilities Service (RUS) grant and loan program which provides loans and grants for drinking water projects, totaling on average $750 million annually. Assistance from the RUS program is targeted for small systems serving fewer than 10,000 people. Additionally:
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Funds may be used to construct, repair, modify, expand, or improve water supply and distribution systems Pay costs such as legal and engineering fees when necessary to develop the facilities.

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Loans must be paid back within 40 years or before the end of the useful life of the financed facilities, whichever is earlier. For more information, see the RUS Web page at http://www.usda.gov/rus/water .

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Rural Water Grant Assistance
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Emergency Community Water Assistance Grants To assist rural communities that have had a significant decline in quantity or quality of drinking water. Grants can be made in rural areas and cities or towns with a population not in excess of 10,000 and a median household income of 100 percent of a State's non-metropolitan median household income. Grants may be made for 100 percent of project costs. The maximum grant is $500,000 when a significant decline in quantity or quality of water occurred within 2 years, or $150,000 to make emergency repairs and replacement of facilities on existing systems.
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Tribal Grants
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Native American Grants Funds have been set aside for eligible projects that benefit members of Federally Recognized Native American Tribes (Tribal Members). Applications are processed in accordance with all eligibility and other requirements of 7 C.F.R 1777, Section 306C Water and Waste Disposal Loans and Grants. The of loan funds, as well as funds from other sources, in conjunction with the grant funds is strongly encouraged whenever feasible to maximize the investment in Indian Country. Generally, applicants are expected to borrow as much as they can afford to repay, as in the regular loan program.
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California SDWSRF Program
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Funding for Drinking Water Projects Federal legislation: Safe Drinking Water Act of 1996 California: Safe Drinking Water Law of 1997;
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First project funded in 1999

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Priority funding for projects that
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Address most serious risk to human health Ensure compliance with the Safe Drinking Water Act Assist systems most in need on per household basis

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Program funding to date: $780 million (combined fed and state) Annual loan/grant funding: ~~$85 million
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Lending Process

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SDWSRF - Project Priority List
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What is it? A ranking system to organize preapplications
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SDWSRF uses health risk categories (A thru O) Bonus points prioritize projects within a category Multi-year Project Priority List Fundable List SWS Reserve list
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What kinds of lists are there?
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SDWSRF Project Ranking Criteria
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15 categories of eligible projects Categories based on health risk Ranking within each category based on:
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median household income consolidation of systems population served

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Actual funding based on “readiness to proceed”
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Category A
Definition:  Water systems with deficiencies that have resulted in documented waterborne disease outbreaks illnesses that are attributable to the water systems or water systems under a court order to correct SDWA violations and/or water outage problems.  Includes water systems that:  1. Have defects resulting in confirmed waterborne disease outbreaks; or  2. Are under court order because of a SDWA violation and have a court ordered schedule of compliance. The court ordered compliance shall not be dependent upon SRF moneys; or  3. Are under a court ordered service connection moratorium, have been directed to correct water outage problems and have a schedule of compliance. Court ordered compliance shall not be dependent upon SRF moneys.
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Category B
Definition:  Water systems that have active (not standby) sources contaminated with coliform bacteria (fecal, E. coli, or total coliforms) resulting in repeated violation of the coliforms bacteria MCL.  Includes domestic water systems that:
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1. Distribute water from any source contaminated with coliform bacteria that has resulted in the water system violating the coliform MCL as a result of the contamination of the source. 2. As a result of the source contamination, has had repeated confirmed bacteriological contamination in the water delivered to consumers resulting in issuance of boil water and/or 73 bacteriological failure notifications.

Category C
Definition:  Water systems which have a surface water supply that is not filtered or untreated well sources that are contaminated with fecal or E. coli .  Includes:
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1. Provision of filtration treatment to water systems with groundwater sources that are under the direct influence of surface water; or 2. Provision of filtration treatment to water systems with unfiltered surface water supply that does not comply with the federal or state filtration avoidance criteria: or 3. Source water replacement or providing treatment for water systems with well sources that are bacteriological contamination fecal or E. coli (but are not in violation of the coliform MCL).
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Category D
Definition:  Water systems that have (1) surface water sources with filtration treatment deficiencies that violate federal or state regulations concerning surface water treatment requirements (2) wells that are contaminated with fecal coliform or E. coli and are inadequately treated.  Water treatment deficiencies include:
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1. Filtration process without an approved filtration technology. 2. Disinfection facilities that do not comply with the federal or state surface water treatment requirements. 3. Water systems with surface water treatment facilities not meeting performance standards. 4. Wells with disinfection only or unreliable bacteriological treatment.
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Category E
Definition:  Water systems with water outages or significant water quantity problems caused by source water capacity or water delivery capability that is insufficient to supply current demand.  Includes water systems:  1.That have had water quantity related connection moratoriums/limitations imposed by enforcement documentation, i.e. citation, compliance order, or permit provision; and  2.Where the water outages have been documented, frequent, and prolonged due to lack of sufficient source or water delivery capacity.  3.Where non-permitted sources have been used to maintain water pressure in the system.  4.Where water outages or shortages have resulted in enforcement action requiring that new sources be developed or improvement in the water delivery system be made.  5.Where an independent engineering evaluation demonstrates that the water system’s existing sources cannot supply the current demand without creating significant water quantity problems.
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Category F
Definition:  Water systems that distribute water containing nitrates/nitrites in excess of the MCL or systems that are in violation of the Total Coliform Rule for reasons other than source contamination.  Excludes water systems that:
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1. Distribute water from high nitrate/nitrite sources that are reliably blended or treated to meet the nitrate/nitrite standard. 2. Systems that have violated the TCR in the past but are not currently in violation.
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Additional Categories
CATEGORY G  Water systems that distribute water containing chemical or radiological contamination exceeding a State or Federal primary MCL. CATEGORY H  Water systems with uncovered distribution reservoirs or reservoirs that are in active use or water systems with low-head transmission mains. CATEGORY I  Water systems that do not meet federal or state treatment or monitoring requirements related to disinfectants or disinfection by-products; or water systems which comply with surface water treatment requirements, but are not in conformance with the California Cryptosporidium Action Plan. CATEGORY J  Water systems that are in violation of those portions of the Water Works Standards that could result in the entry of wastewater into the water supply or distribution system. CATEGORY K  Water systems that operate disinfection facilities that lack needed reliability features, chlorine residual analyzers and alarms or have other disinfection deficiencies that violate the Water Works Standards.
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Additional Categories
CATEGORY L  Water systems that: (1) distribute water in excess of the iron or manganese secondary standard and for which a compliance order has been issued; (2) distribute water in excess of a Department published chemical action level; or (3) need treatment for a standby groundwater source that is contaminated in excess of a primary MCL. CATEGORY M  Water systems that do not meet the Water Works Standards other than those components already covered by the above listed categories and water systems that do not meet the TMF criteria but do not have a project in any of the above categories. CATEGORY N  Water systems that distribute water that exceeds secondary standards other than iron (Fe) and/or manganese (Mn). CATEGORY O  All water system deficiencies that are eligible and are not covered in any of the above categories. 79

SDWSRF-Project Priority List
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Uses federal eligibility rules Projects ranked by priority category Pre-applications required Addition (new) preapps permitted annually New preapps merged into existing preapps Priority list created following public hearing “Fundable” portion of list determined Full applications invited
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SDWSRF – Funding Agreements
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Low interest loans (50% of state bond rate) ~2.4%
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generally 20 year loan period
0% interest; funding may include loan and grant (e.g. federal environmental laws) apply to some projects

Disadvantaged communities Federal cross-cutting requirements Application due December 31 DHS reviews project [technical, financial, & environmental] Issue Notice of Application Acceptance [NOAA-commitment letter]
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Sets basis of funding, $ and interest rate Includes conditions to be met by applicant

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Funding agreement (“loan contract”) within 1 year of NOAA
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[only when requirements of commitment letter are met]

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SRF Process

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