2019 Intended Use Plan Clean Water State Revolving Fund Prepared by the Georgia Environmental Finance Authority April 26, 2019 2019 Intended Use Plan Georgia Environmental Finance Authority Clean Water State Revolving Fund Table of Contents Contents Page Part I--Section 606 Requirements Introduction.................................................................................................................................................... 3 CWSRF Project Solicitation Process ............................................................................................................. 3 CWSRF Comprehensive List......................................................................................................................... 4 CWSRF Fundable List and Estimated Disbursement Schedule .................................................................... 4 Terms and Conditions of Financing ............................................................................................................... 5 4 Percent Administration................................................................................................................................ 7 Criteria and Method for Distribution of Funds ................................................................................................ 7 WRRDA Implementation................................................................................................................................ 7 CWSRF Goals and Objectives ...................................................................................................................... 8 20 Percent State Match Requirement............................................................................................................ 9 Assurances and Specific Proposals .............................................................................................................. 9 Public Participation ...................................................................................................................................... 10 Part II--Attachments Attachment 1 - Comprehensive List (Clean Water Projects)........................................................................ 11 Attachment 2 - Fundable List and Disbursement Schedule ......................................................................... 19 Attachment 3 - ASAP CWSRF Payment Schedule...................................................................................... 20 Attachment 4 - Estimated Sources and Uses .............................................................................................. 21 Attachment 5 - CWSRF 4 Percent Administrative Funds............................................................................. 22 Attachment 6 - 2019 CWSRF Affordability Criteria ...................................................................................... 23 Attachment 7 - Ranking Criteria for CWSRF Projects.................................................................................. 24 Attachment 8 - Public Meeting Summary IUP.............................................................................................. 26 Attachment 9 - Loan Program Policies ........................................................................................................ 27 2 Clean Water State Revolving Fund Intended Use Plan 2019 Introduction Section 606(c) of the Water Quality Act of 1987 requires each state to annually prepare an Intended Use Plan (IUP) identifying the use of funds from the Clean Water State Revolving Fund (CWSRF). Section 606 also requires capitalization grant recipients to describe how they will support the goals of the CWSRF. This IUP outlines Georgia's proposed uses of the FY2019 CWSRF allotment of $27,138,000. The Georgia Environmental Finance Authority (GEFA) was created by the Georgia General Assembly in 1986 as the successor agency to the Georgia Development Authority Environmental Facilities Program. GEFA serves as the central state agency for assisting local governments in financing the construction, extension, rehabilitation and replacement, and securitization of public works facilities. The GEFA board of directors consists of three ex-officio members and eight members appointed by the governor. Under an interagency agreement, the Georgia Environmental Protection Division (EPD) provides professional services to administer the CWSRF. These services include, but are not limited to: Project reviews and approvals; Planning and project development; Information tracking; Updating files; Information gathering and development of National Needs Survey; Issuing and approving Notices of No Significant Impacts (NONSI) and Categorical Exclusions (CE); Assistance with the National Information Management System (NIMS);and The Clean Water Benefits Reporting (CBR) database. CWSRF Project Solicitation Process Developing the CWSRF comprehensive list involves an online pre-application process where all communities requesting funding provide project-related information. GEFA initiated the project solicitation process on September 4, 2018, allowing prospective applicants to submit pre-applications until January 31, 2019. GEFA emailed the solicitation notice to its stakeholder list and coordinated with relevant trade and local government associations to further disseminate the project solicitation. GEFA also designated a section of its website to announce the solicitation for new projects. GEFA made available project solicitation packets that contained detailed information about financing terms, available funding, and the scoring system for project prioritization. GEFA accepted CWSRF pre-applications through an online pre-application form available on the GEFA website. GEFA used the pre-application information to score and rank all submitted projects. Sixty-one clean water projects were submitted with a total need of $178,073,000. The CWSRF comprehensive list includes all clean water projects in descending order based upon project score. 3 CWSRF Comprehensive List The CWSRF comprehensive list (Attachment 1) includes clean water projects submitted during the preapplication solicitation period. The comprehensive list is comprised of the community, the project score, the population, the total project cost, whether or not the borrower is eligible for principal forgiveness, and a description of the project. The GEFA board of directors reserves the right to fund lower priority projects over higher priority projects if, in the opinion of GEFA, a higher priority project has not taken the necessary steps to prepare for funding and initiation of construction (e.g., GEFA has not received a complete and approvable financial application, the project is not ready to proceed, or the community withdraws its project from consideration). Additionally, if a qualified project becomes viable within the funding year, Georgia may amend its comprehensive list. To accommodate those communities that decide to participate in the CWSRF after the capitalization grant has been awarded, GEFA will hold quarterly meetings to include any new projects on the comprehensive list. This same process of public review and comment will be followed for any substantive change in the priority of the CWSRF. CWSRF Fundable List and Estimated Disbursement Schedule The CWSRF fundable project list with an estimated disbursement schedule is located in Attachment 2. The fundable list contains projects GEFA has identified as ready to move forward, which can be seen in the score column in Attachment 1. Projects qualify for the fundable list by meeting conditions such as: consent order issued by Georgia EPD, CE or NONSI issuance or approval, and/or are needed to maintain compliance with an applicable permit. Projects on the fundable list are projected to draw down the 2019 grant funds. GEFA created this disbursement schedule based on the eight quarters identified in the 2019 CWSRF payment schedule located in Attachment 3, which indicates the timeframe for requesting the CWSRF capitalization grant allotment from U.S. Environmental Protection Agency's (EPA) Automated Standard Application for Payments (ASAP) System. Some of the projects listed on the disbursement schedule are one phase of a larger project and some of the projects may have a construction schedule longer than the eight quarters identified in the CWSRF payment schedule. CWSRF assistance includes loan financing and any identified principal forgiveness as outlined in the applicable appropriations language. Assistance will also be provided to municipalities, water/sewer authorities, and any other entity created by the Georgia legislature and non-governmental organizations (NGO) for the purpose of land conservation loans. Eligible activities consist of construction, expansion, and improvements to publicly-owned wastewater treatment facilities; implementation of a non-point source pollution control projects; installation of solar arrays at wastewater treatment facilities; and purchase of land within Georgia resulting in the improvement of water quality. All borrowers must designate a repayment source(s) for each loan agreement signed with GEFA. All projects must be designed to meet current National Pollutant Discharge Elimination System (NPDES) permit limits and all other requirements needed to maintain water quality standards. All construction projects will meet the requirements of the Federal Water Pollution Control Act (FWPCA) with respect to Davis-Bacon requirements in section 513 and American Iron and Steel (AIS) requirements in section 608. 4 Terms and Conditions of Financing Standard CWSRF Financing Terms GEFA's benchmark interest rate is the true interest cost (to the nearest hundredth of one percent) received by the state on its competitively-bid, general obligation bond issue. GEFA currently offers CWSRF loans to local governments and authorities at an interest rate of 50 basis points (0.50 percent) below the benchmark rate. CWSRF loans are available with terms as short as five years and not exceeding 30 years or the useful life of the project GEFA charges a one-time origination fee which is one percent of the total CWSRF financing provided for the project. The origination fee is charged on each commitment when the contract is executed and paid in the second month following contract execution. GEFA deposits origination fees into a separate non-project account. Program income, generated from direct capitalization grant funds, and non-program income, generated from repayment funds, will be collected and accounted for separately. Program income and non-program income can be seen as a source and use of funds in the Estimated Sources and Uses of Funds in Attachment 4. CWSRF Conservation Financing Terms CWSRF-eligible conservation projects receive an interest rate reduction. The following types of water conservation projects are eligible: Installing or retrofitting water efficient devices, such as plumbing fixtures and appliances; Implementing incentive programs to conserve water, such as rebates for water efficient fixtures; Inflow and infiltration correction; Installing water meters in previously unmetered areas; Replacing broken/malfunctioning water meters or upgrading existing water meters; and Water recycling and reuse projects that replace potable sources with non-potable sources. The following types of energy production and energy conservation projects are eligible: Energy production projects at a publically-owned treatment facility via wind, solar, geothermal, or biogas combined heat and power projects; Inflow and infiltration projects that reduce power consumption; Projects that replace pumps and motors to reduce power consumption; Projects that eliminate pumps and pumping stations; and Projects that install energy efficient treatment equipment or processes. The following types of land conservation projects are eligible: Water quality protection for rivers, streams, and lakes; Flood protection; Wetlands protection; Reduction of erosion through protection of steep slopes, erodible soils, and stream banks; 5 Protection of riparian buffers and other areas that serve as natural habitat and corridors for native plant and animal species; Protection of prime agricultural and forestry lands; Protection of cultural sites, heritage corridors, archaeological and historic resources; Scenic protection; Provision of passive recreation; and Connection of existing or planned areas contributing to the aforementioned goals. Principal Forgiveness The terms and conditions of the grant award allow subsidy in the form of principal forgiveness to borrowers of the CWSRF loan program. Subsidy may not fall below 10 percent or exceed 30 percent of the total grant award. Principal forgiveness will be provided to eligible projects until it is exhausted. Both the project score and the affordability score will be considered In preparation of the FY2019 project solicitation, GEFA contracted with the Environmental Finance Center at the University of North Carolina to develop a tool for evaluating and scoring communities to determine principal forgiveness eligibility. The tool uses three criteria -- median household income (MHI), unemployment percent, and population trend. For each criterion, a borrower will be categorized into one of four percentiles - 25 percent, 50 percent, 75 percent, or 100 percent. A score of one through four is given for each criterion, based on the percentile. A maximum of 12 points is possible. If a community has multiple projects on the CWSRF comprehensive list, only one project can receive principal forgiveness. The affordability score for each applicant can be found in Attachment 1. 1. Median Household Income (MHI) State Percentiles 25th Percentile 50th Percentile 75th Percentile 100th Percentile (4 points) (3 points) (2 points) (1 point) MHI $29,509 $37,108 $47,375 $47,376 and higher 2. Unemployment Percent State Percentiles 25th Percentile 50th Percentile 75th Percentile 100th Percentile (1 point) (2 points) (3 points) (4 points) Unemployment Percent 3.30% 4.80% 6.60% 6.61% and higher 3. Population Trend The following will be the categories used for determining scoring for change in population from 2010 to 2016. Positive growth or no growth (1 point) Between -0.01 percent and -1 percent (2 points) Between -1.01 percent and -2 percent (3 points) 6 Greater than -2 percent (4 points) The following list shows the affordability score and potential principal forgiveness percentage for the FY2019 grant year: Score of 11 or 12 will receive 45 percent Score of 10 will receive 40 percent Score of 9 will receive 35 percent Score of 8 will receive 30 percent Score of 7 will receive 25 percent Score of 6 or less will not receive principal forgiveness Principal forgiveness will not exceed $750,000 for an affordability score of 7 or 8, and will not exceed $1,000,000 for an affordability score of 9 or higher. 4 Percent Administration Georgia intends to use repayment dollars in the amount of $1,085,520 for administrative purposes. A detailed account of the personnel costs associated with the administration of the CWSRF are found in Attachment 5. Criteria and Method for Distribution of Funds Attachment 6 explains Georgia's criteria and method used to score and distribute funds for CWSRF projects. Only those cities and counties that have been designated as a "Qualified Local Government" and are in compliance with O.C.G.A. Section 36-70-20 and appear on the comprehensive list may receive a CWSRF loan commitment. Lastly, only those communities that are in compliance with plumbing code standards as codified in O.C.G.A. Section 12-5-4 will be eligible for financing through GEFA. Eligible project costs include planning, design, engineering, construction, and in some limited cases, land acquisition costs attributed to the project. No loan will be executed until environmental approval has been issued and financial requirements have been met. WRRDA Implementation Several changes were made to the CWSRF through the Water Resources Reform and Development Act (WRRDA) on June 10, 2014. Outlined below is one of the changes and GEFA's strategy and procedure for its implementation. Architectural and Engineering (A/E) Services Procurement For any capitalization grant awarded after October 1, 2014, the state must ensure that all A/E contracts for projects using funds "directly made available by" a capitalization grant, i.e., equivalency projects, comply with the elements of the procurement processes for A/E services as identified in 40 U.S.C. 1101 et seq., or an equivalent state requirement. 7 O.C.G.A Section 50-22-6 outlines Georgia's managerial control over acquisition of professional services and the selection through contract negotiations. O.C.G.A Section 50-22-2(5) defines a Project as any activity requiring professional services estimated by the state agency to have a cost in excess of $1,000,000 and costs for professional services in excess of $75,000. Using this criteria GEFA will require borrowers to go through a one-step selection process if project costs are between $1,000,000 and $3,000,000 and A/E services exceed $75,000. The one-step A/E selection process consists of the following: 1. Selection manager and selection committee appointment. 2. Development of a request for qualifications (RFQ) document. 3. Advertisement of the RFQ. 4. Evaluation of the statements of qualifications (SOQs). 5. Selection of highest-scoring firm for negotiation for possible contract. GEFA will require borrowers to go through a two-step selection process if project costs are above $3,000,000 and A/E services exceed $75,000. The two-step A/E selection process consists of the following: First step: 1. Selection manager and selection committee appointment. 2. Development of a request for qualifications (RFQ) document. 3. Advertisement of the RFQ. 4. Evaluation of the statements of qualifications (SOQs). Second step: 5. Interview of 3 to 5 highest scoring finalist firms. 6. Evaluation of interviews. 7. Selection of highest final scoring firm for negotiation of possible contract. For project with costs below $1,000,000 and costs for A/E services below $75,000 no competitive procurement is required. GEFA will have RFQ templates of both one-step and two-step selection processes available by June 2019 for borrowers to use in anticipation of the FY2021 project solicitation process that begins in September 2020. CWSRF Goals and Objectives Long-term Goals 1. Explore the viability of regionalization and/or consolidation of systems to take advantage of economies of scale and to address the technical, managerial, and financial capacity issues experienced by disadvantaged communities. 2. Coordinate activities with other state and federal agencies to enhance borrowers' understanding of the range of funding options. Seek opportunities to leverage funds so that borrowers can benefit from the maximum level of public assistance available. 3. Maintain and improve database management systems that integrate Clean Water project data with program management data. 4. GEFA will continue to administer the CWSRF in a fiscally responsible manner that will ensure it's revolving nature in perpetuity. 8 Short-term Goals 1. Improve SRF outreach and training to borrowers, project administrators, Area Development Districts, and engineers. 2. Coordinate with the Georgia Environmental Protection Division to identify and reach out to communities with ongoing compliance issues. 20 Percent State Match Requirement Under the provisions of the FWPCA Section 602(b)(2), the state is required to deposit an amount equal to 20 percent of the total capitalization grant into the CWSRF. Based on the potential FY2019 allotment of $27,138,000, the amount of state match required amounts to $5,427,600. The Georgia state legislature has been requested to provide sufficient general obligation bonds to GEFA to cover this requirement. GEFA will disburse these state bond funds along with federal direct capitalization grant funds in a manner that is proportionate to ensure the proper match on each loan disbursement. Each project which receives direct federal grant funds will receive a portion of the disbursement in federal funds (83.33 percent) and a portion of the disbursement in state match funds (16.67 percent). These state match funds will be held outside the CWSRF until the disbursement is made. Once these state dollars are disbursed to a project, those funds and the interest paid on those funds will become CWSRF funds and returned to the program. Assurances and Specific Proposals In addition to the assurances that accompany the capitalization grant application (Standard Form 424) for 2019 funds, GEFA further agrees to adhere to all the certifications covered within the Operating Agreement with EPA Region 4. The specific certifications are: 1. Capitalization grant agreement 2. Payment schedule 3. State matching funds 4. Commitment of 120 percent in one year 5. All Funds - timely expenditure 6. Enforceable requirements of the Clean Water Act 7. Cross cutting issues 8. State law and procedures 9. State accounting and auditing procedures 10. Recipient accounting and auditing procedures 11. Annual report 12. Limitations on eligibility 13. Environmental review process 14. Maintain the fund 15. Perpetuity 16. Types of assistance 17. Priority list 18. Limitations of double benefits 19. Consistency with planning requirements 20. Annual audit 21. Intended use plan 22. Annual federal oversight review and technical assistance 9 23. Dispute resolution 24. Reserve the right to transfer up to 30% of grant amount between programs 25. NIMS 26. CBR As in previous years, CWSRF program managers will continue to coordinate with the EPA Region 4 office on items such as quarterly and annual reports, annual reviews, National Needs Surveys, collection of NIMS data, training opportunities, attendance at regional and national conferences, workshops, and various administrative program efforts. Public Participation This IUP is subject to review and comment by the public prior to incorporation into the 2019 capitalization grant application. A public notice was placed in the Fulton Daily Report on Monday, April 1, 2019, announcing a public meeting on the CWSRF IUP on Tuesday, April 23, 2019, at 10:00 a.m. in GEFA's boardroom. A summary for the public meeting can be found within Attachment 8. 10 Community Athens-Clarke County Unified Government City of Baldwin City of Norman Park City of Blue Ridge City of Louisville Attachment 1 Clean Water State Revolving Fund 2019 Comprehensive List Total Project Score 2016 Pop. Cost Affordability Score Potential Principal Forgiveness Est. Interest Rate Est. Term Project Description Wastewater Sewer Sewer Stormwater Land Energy Treatment Construction Rehabilitation Projects Conservation Projects 105 120,813 $900,000 100 3,523 $4,750,000 95 1,213 $5,000,000 7 $225,000 1.59% 7 $750,000 2.59% 6 $0 1.59% Place approximately 92 acres of land containing unique habitats into permanent conservation by acquiring the property fee-simple through the Athens- 20 Clarke County Land Conservation Program. Improve the wastewater treatment facility in order to 20 improve operations at the plant. x Rehabilitate the sewer collection system and water pollution control plant to address severe I/I issues. The project will reduce energy consumption at the 20 plant and will result in regulatory compliance. x x x 85 1,485 $5,000,000 7 $750,000 2.59% Make improvements to the wastewater treatment plant to achieve compliance for temperature limits and to upgrade aging components of the plant. The components that need to be replaced or repaired include the existing sludge handling system (including the undersized, aging belt press and building), the mechanical buildings, the influent and effluent refrigerated samplers, the processor in main control panel, the automatic bar screen, the decanter pump, the aerator deflector, and other miscellaneous items. The project also includes the addition of a septic receiving station. The city owns and operates an activated sludge wastewater treatment plant rated for 1.0 MGD treatment capacity. The city's NPDES permit was renewed on October 1, 2015, carrying with it effluent limitations which became effective October 1, 2018. Specifically, the permit limited the receiving stream temperature change to 0 degrees F. To address this new requirement, the project scope involves adding an effluent cooling technology. Two technologies have been identified as potential upgrades designed to lower the plant effluent temperature, and these technologies will be investigated to determine the 20 better option for the city. x Rehabilitate two aging sewage pump stations, install a mechanical bar screen at the city's main sewage pumping station, and install process control 85 2,772 $500,000 10 $200,000 2.59% 20 instrumentation at the water pollution control plant. x x 11 Community City of Lavonia City of Quitman City of Homerville City of Pembroke City of Vienna Lowndes County Board of Commissioners City of Toccoa Attachment 1 Clean Water State Revolving Fund 2019 Comprehensive List Score 2016 Pop. 75 2,038 Total Project Cost $4,600,000 Affordability Score 8 Potential Principal Forgiveness $750,000 Est. Interest Rate Est. Term Project Description Wastewater Treatment 1.59% Upgrade the aging collection system and pump stations to accommodate higher flows from the Gateway Industrial Park. These improvements to the city's sewerage system are needed to keep the facilities in good working order and to meet state and 20 federal regulatory requirements. x Sewer Construction Sewer Rehabilitation x Stormwater Land Energy Projects Conservation Projects x Upgrade the wastewater treatment facility, including improvements to the headworks, installation of a mechanical bar screen, replacement of an inefficient aeration system with new aerators, and sludge removal from the treatment pond. The project also includes the rehabilitation and/or replacement of approximately 4,000 LF of existing 6-inch and 12-inch gravity sewer in order to reduce inflow/infiltration 75 3,827 $1,250,000 10 $500,000 1.59% 20 problems in the sewer collection system. x x x Modify the WPCP to include more energy efficient equipment and backup power upgrades. In addition, the project will replace failing equipment and 70 2,425 $2,000,000 11 $900,000 1.59% 20 upgrade the headworks. x x Rehabilitate the sanitary sewer system. Improvements include the lining and replacement of manholes and gravity sewer mains. The project will significantly reduce inflow/infiltration in the system, reduce lift station run times, eliminate overflows, restore treatment capacity at the Wastewater Treatment Facility, and reduce energy consumption 70 2,488 $1,303,000 9 $456,050 1.59% 20 throughout the collection and treatment system. x x Rehabilitate sewer mains, manholes, services, and lift stations. Rehabilitation of the sewer system will target I/I and the system components that are at the 70 3,791 $2,500,000 8 $750,000 1.59% 20 end of their useful life. x x Improve multiple lift stations by replacing aged pumps that have reached the end of their useful life along with the associated electrical controls and valve equipment. Existing manholes will be lined to reduce 70 113,898 $2,500,000 6 $0 1.59% 20 infiltration. x x 65 8,374 $4,902,000 Improve raw sewage pumping, influent screening, grit removal, and additional flow equalization volume to increase peak flow capacity through the plant headworks to maintain treatment performance and 9 $1,000,000 2.59% 20 NPDES compliance during wet weather events. x x 12 Community Bartow County Bartow County City of Social Circle City of Ball Ground City of Hinesville City of Hinesville City of Morgan City of Villa Rica City of Fairmount Attachment 1 Clean Water State Revolving Fund 2019 Comprehensive List Total Project Score 2016 Pop. Cost Affordability Score Potential Principal Forgiveness Est. Interest Rate Est. Term Project Description Wastewater Sewer Sewer Stormwater Land Energy Treatment Construction Rehabilitation Projects Conservation Projects 55 101,942 $8,400,000 55 101,942 $23,000,000 Construct a pump station and approximately 60,000 feet of force main to transport sewage from the Glad Rd area to county property on Paga Mine Rd where it will be discharged to an existing pump station that transfers wastewater across the Etowah River to the 4 $0 2.59% 20 Cartersville sewer system. x Construct the first phase of the West Bartow publicly- owned treatment works. This project consists of a 2.0 MGD membrane activated sludge system with ozone disinfection and land application of aerobically 4 $0 2.59% 20 digested sludge. x 55 4,350 $2,847,000 50 1,831 $425,000 50 34,127 $2,200,000 50 34,127 $2,800,000 50 2,125 $2,000,000 50 14,755 45 928 $5,500,000 $600,000 Consolidate three existing sewage pumping stations by constructing new sewers, a pumping station, and a gravity sewer to send sewage to the Newton County 4 $0 1.59% 20 Water and Sewerage Authority for treatment. x Acquire the Roberts Lake property for permanent 3 $0 1.59% 20 green space. Expand the city's water reclamation facility to meet 7 $550,000 2.59% 20 new permit requirements. x 7 $700,000 2.59% Modify the Fort Stewart Wastewater Treatment Plant 20 to meet new permit requirements. x Add treatment capacity with the introduction of a new treatment system and the addition of a new point discharge. The city currently utilizes a combination of ponds and LAS to treat its wastewater. Due to growth in the wastewater system, the existing treatment facility has reached its limit. The point discharge will add operational flexibility to optimize the LAS efficiency and ensure the LAS is not overwhelmed by excessive flows. The city has violated the permitted BOD level multiple times in the last two years. The new treatment technology will ensure the BOD is treated adequately 5 $0 2.59% 20 and improve overall treatment. x Upgrade the North Wastewater Treatment Plant to 6 $0 2.59% 20 increase capacity from 0.52 MGD to 0.84 MGD. x 9 $210,000 2.59% 20 Extend sanitary sewer system. x x x 13 Community City of Tifton Brunswick-Glynn County Joint Water And Sewer Commission City of Waycross City of Bainbridge City of Griffin Attachment 1 Clean Water State Revolving Fund 2019 Comprehensive List Total Project Score 2016 Pop. Cost Affordability Score Potential Principal Forgiveness Est. Interest Rate Est. Term Project Description Wastewater Sewer Sewer Stormwater Land Energy Treatment Construction Rehabilitation Projects Conservation Projects 35 16,691 $2,000,000 5 30 15,997 $15,000,000 7 30 14,188 $2,000,000 8 25 12,492 $1,100,000 8 25 22,875 $5,000,000 8 2.59% 2.59% Rehabilitate and replace existing equipment at the WWTF and replace existing sanitary and storm sewer pipes, pumps, structures, and other appurtenances. Portions of the system are at the end of their service life. All new pipes, pumps, structures, and appurtenances will be placed in the existing rights-of- way for streets or utilities. The project will serve only existing customers, within the existing service area, 20 and will result in no change in the existing land use. x Rehabilitate key portions of the Academy Creek WWTP, the Dunbar Creek WWTP, and the sewer 20 collection system. x Rehabilitate and replace wastewater treatment process equipment, lift stations, and sewer pipeline equipment. Portions of the system are at the end of their service life. All new pipes, pumps, structures, and all other process improvements will be placed in existing rights-of-way for streets or utilities. The project will serve only existing customers, within the existing service area, and will result in no change in 2.59% 20 the existing land use. x 2.59% 2.59% Replace five lift stations that were damaged by flooding in 2017, but have been repaired to a mostlyworking status as the city explored the possible options for getting them to 100% working order. No 20 other long-term options exist besides replacement. Replace, repair, and rehabilitate components of the 20 stormwater drainage system. x x x 14 Community City of Sylvester City of Thomasville Fitzgerald Water, Light & Bond Commission City of Griffin City of Baldwin City of Baldwin Town of Braselton Town of Braselton Attachment 1 Clean Water State Revolving Fund 2019 Comprehensive List Total Project Score 2016 Pop. Cost Affordability Score Potential Principal Forgiveness Est. Interest Rate Est. Term Project Description Wastewater Sewer Sewer Stormwater Land Energy Treatment Construction Rehabilitation Projects Conservation Projects 25 6,108 $2,500,000 9 25 18,706 $6,000,000 7 25 9,006 $2,321,000 7 20 22,875 $3,000,000 8 10 3,523 $2,500,000 7 10 3,523 $800,000 7 10 8,409 $1,500,000 3 10 8,409 $1,000,000 3 2.59% 2.59% 1.59% 2.59% 1.59% 2.59% 2.59% 2.59% Remove sludge from the city's treatment ponds. The city has two treatment ponds which provide the initial treatment process for wastewater. Over the life of the ponds, sludge has accumulated and a recent sludge judge found that sludge now consumes over 40% of the pond volume. Over the last few years, the city had to sandbag the dams of the ponds to prevent spills in response to excessive rains associated with extreme weather. The project will remove, de-water, and dispose of sludge and repair any pond infrastructure found to be damaged by the sludge accumulation such as pipe outlets and screens. The project will restore the ponds to their designated 20 volumes and reduce the risk of sewer overflows. x Upgrade the wastewater treatment plant. Improvements include better media filtration and process treatment efficiency upgrades. The city's wastewater plant has been given new permit requirements that reduce the permissible ammonia levels significantly. Upgrades will be made to ensure compliance with the new ammonia limitations according to the requirements and schedule of the 20 new permit. x Rehabilitate approximately 20,000 LF of gravity sewer at the order of the Georgia EPD. The Commission is in the 3rd year of the required schedule of 20 improvements. Engineer, design, and construct a sludge management facility for the Still Branch Regional Reservoir Treatment Plant. The project will modify how sludge 20 is currently being treated through land application. x Upgrade and replace approximately 3.5 miles of aged and undersized outfall and interceptor sewers, 20 including manholes and lift stations. 20 Rehabilitate two failing lift stations. Stabilize approximately 1 mile of the Mulberry River in order to protect existing utilities and allow the stream segment currently listed as "non-attaining of designated use" due to TSS on the 303(d) list to meet 20 its designated use. Improve drainage on Davis St and Harrison St in order 20 to eliminate siltation and bank erosion. x x x x x x x 15 Town of Braselton Community Town of Braselton Braselton Public Facilities Authority City of Port Wentworth City of Dillard City of Helen City of Hoschton City of Jefferson Attachment 1 Clean Water State Revolving Fund 2019 Comprehensive List Total Project Score 2016 Pop. Cost Affordability Score Potential Principal Forgiveness 10 8,409 $1,000,000 3 Est. Interest Rate Est. Term Project Description Rehabilitate an aged and undersized wastewater pumping station to reduce potential overflows and 1.59% 20 failures. Wastewater Sewer Sewer Stormwater Land Energy Treatment Construction Rehabilitation Projects Conservation Projects x Extend the reuse water distribution system to existing water customers, which will displace 30 MG per year 10 8,409 $185,000 3 1.59% 20 of potable water used for irrigation. x 10 8,409 $450,000 3 10 7,052 $2,400,000 4 10 375 $750,000 6 10 320 $1,100,000 4 10 1,782 $500,000 5 10 9,946 $1,815,000 3 1.59% 1.59% 1.59% 1.59% 1.59% 2.59% Construct green infrastructure, including wet ponds and associated land acquisition, in order to manage stormwater runoff from downtown Braselton. This project will improve water quality in local streams by capturing, treating, and reducing stormwater runoff and will provide a source of passive recreation for the community. This facility will also serve as a new park 20 for residents and visitors to the downtown area. Replace approximately 17,700 LF of 8 & 10-inch forcemain with 12-inch forcemain, which will assist in relieving the stress on the Cold Stream lift station No. 2, thereby greatly reducing the probability of future backups and sewer spills in the sewer collection system. The forcemain replacement will increase the flow rate of the pumps in Cold Stream lift station No. 2 from approximately 600 GPM to about 1,050 GPM (individually) and 1,300 GPM (pumps operating in parallel). A 70% increase in flow rate will reduce pump run times, operation and maintenance costs in terms of pump wear, pump starts, and electrical 20 energy consumption. Rehabilitate and replace approximately 4,300 LF of 20 sewer line that is experiencing I/I problems. Replace the main lift station, which is aged and undersized, in order to reduce potential overflows 20 and failures. Upgrade and replace existing gravity sewer in order 20 to reduce I/I. Replace the west side wastewater pumping facility that serves most of the western sector of the city. The facility is undersized, as is the forcemain. Moreover, the location of the forcemain route is proposed for relocation into another outfall line that is more capable of handling the existing and 20 anticipated flows. x x x x x x x x x x 16 City of Jefferson Community City of Jefferson City of Statham City of Union Point Walker County Water and Sewer Authority Town of Braselton Town of Braselton City of Cedartown City of Fort Oglethorpe City of Fort Oglethorpe Attachment 1 Clean Water State Revolving Fund 2019 Comprehensive List Total Project Score 2016 Pop. Cost Affordability Score Potential Principal Forgiveness 10 9,946 $1,420,000 3 Est. Interest Rate Est. Term Project Description Replace three aged and undersized wastewater pumping stations to reduce potential overflows and 1.59% 20 failures. Wastewater Sewer Treatment Construction x Sewer Stormwater Land Energy Rehabilitation Projects Conservation Projects Replace an existing gravity sewer outfall line to increase the flow capacity to provide adequate 10 9,946 $900,000 3 2.59% 20 capacity for the growing sewer collection basin area. x Rehabilitate and replace sewer line that is 10 2,589 $1,900,000 9 1.59% 20 experiencing I/I problems. x x Rehabilitate and replace sewer line that is 10 1,542 $2,000,000 10 1.59% 20 experiencing I/I problems. x x 10 68,143 $7,800,000 5 5 8,409 $2,200,000 3 5 8,409 $1,550,000 3 5 9,752 $420,000 10 5 9,613 $2,500,000 4 5 9,613 $2,500,000 4 Construct three sewer pump stations (0.72 MGD, 1.09 MGD, and 1.30 MGD), approximately 47,500 LF of force main (8-inch, 10-inch, and 12-inch), approximately 6,200 LF of 18-inch gravity piping, and wet-weather conveyance upgrades to the existing gravity interceptors. Improvements to the Walker County Wastewater Treatment Plant are also recommended to improve reliability for treating additional flow, such as new clarifier scraper 2.59% 20 equipment and solids handling processes. x x Redirect wastewater flow in the northwest section of the service area, and add a central pumping facility to move wastewater to the new northeast relief sewer 2.59% 20 basin. x Extend the reuse water distribution system. The reuse water system will reduce the drinking water demand and will provide an alternative to irrigation 1.59% 20 with drinking water. x Install three generators at three different locations: the water treatment plant (Wissahickon Ave), the clearwell (Prior St), and the wastewater treatment 2.59% 20 plant (Branch St). x 2.59% 2.59% Install approximately 6,500 LF of gravity sewer, 2,500 LF of force main, and a lift station. Expand sewer into an economically developing area and provide sewer 20 service in an area with failing septic systems. Rehabilitate approximately 6,500 LF of 6-inch and 8inch sanitary sewer mains through trenchless rehabilitation or conventional rehabilitation by 20 excavation. x x 17 Community City of Roswell City of Dillard City of Hoschton Lincoln County Lincoln County City of Sky Valley Town of Braselton City of Gray City of Kingsland Attachment 1 Clean Water State Revolving Fund 2019 Comprehensive List Total Project Score 2016 Pop. Cost Affordability Score Potential Principal Forgiveness Est. Interest Rate Est. Term Project Description Wastewater Sewer Sewer Stormwater Land Energy Treatment Construction Rehabilitation Projects Conservation Projects 5 93,968 $2,400,000 3 5 375 $800,000 6 5 1,782 $500,000 5 5 7,712 $4,000,000 8 5 7,712 $2,080,000 8 5 310 $4,305,000 6 0 8,409 $400,000 3 0 3,281 $2,500,000 3 0 16,411 $2,000,000 4 Implement a variety of stormwater enhancements along historic Mimosa Blvd using green infrastructure (GI) best management practices and restoration of the urban tree canopy. Improvements will provide improved water quality while mitigating water quantity and flooding issues where current stormwater infrastructure is limited or non-existent. In addition, a project goal is to create intentional connectivity between two historic areas, Canton St and the Historic Roswell Square, with enhanced 1.59% 20 pedestrian walkability along Mimosa Blvd. Construct approximately 8,400 LF of sanitary sewer 2.59% 20 main in the Betty Creek Area. x Upgrade the main sewer outfall to provide adequate 2.59% 20 flow for existing and future customers. x Extend the wastewater collection system to provide sanitary sewer to an unserved area that is 2.59% 20 experiencing failing septic systems. x Extend the wastewater collection system to provide sanitary sewer to the Ashmore-Barden area, which is currently unserved and is experiencing failing septic 2.59% 20 systems. x 2.59% 20 Address sewer system on-site septic problems. Construct a regional stormwater detention and treatment facility. The facility will serve the older portions of the town and accommodate the ongoing urban renewal building activities. The facility will incorporate the latest technologies in urban 2.59% 20 stormwater management Upgrade the 0.400 MGD wastewater treatment plant to increase capacity to 0.500 MGD. The proposed improvements include replacing the existing bar screen with a new influent screen, draining, repairing, and painting the aeration basin, replacing air piping in the aeration basin, replacing the clarifier drive/arm, replacing air piping in the digester, adding biofilters, adding a site pump station and force main, and relocating the chlorine contact 2.59% 20 chamber. x Install a new sanitary sewer force main, including a bore under an interstate, to increase the carrying 2.59% 20 capacity of the city's infrastructure. x x x x x 18 ATTACHMENT 2 CLEAN WATER STATE REVOLVING FUND ESTIMATED DISBURSEMENT SCHEDULE LOAN PROJECT AMOUNT Athens_Clarke County Unified Government* $900,000 City of Baldwin $4,750,000 City of Norman Park $5,000,000 City of Blue Ridge $5,000,000 City of Louisville $500,000 City of Lavonia $4,600,000 City of Quitman $1,250,000 City of Homerville $2,000,000 City of Pembroke $1,303,000 City of Vienna $2,500,000 Lowendes County Board of Commissioners $2,500,000 City of Toccoa $4,902,000 TOTAL $ 35,205,000 *Land conservation loan which would have one payment NOTICE TO PROCEED 4/30/2019 8/1/2020 12/1/2019 12/16/2019 11/11/2019 11/1/2019 10/1/2019 10/1/2019 10/1/2019 11/8/2019 11/1/2019 1/1/2020 CONSTR. START DATE 7/31/2019 9/1/2020 1/1/2020 1/6/2020 12/11/2019 11/1/2019 10/1/2019 11/4/2019 10/1/2019 1/15/2020 11/1/2019 1/1/2020 TARGET COMPL. DATE 7/31/2019 7/2/2021 7/31/2021 12/18/2020 5/11/2020 12/31/2020 7/31/2020 11/2/2020 7/1/2020 12/31/2020 11/30/2020 12/31/2020 1ST QTR 4/19-6/19 2ND QTR 7/19-9/19 $900,000 $ 900,000 3RD QTR 10/19-12/19 $50,000 $150,000 $300,000 $200,000 $250,000 $250,000 $ 1,200,000 4TH QTR 1/20-3/20 $750,000 $650,000 $250,000 $975,000 $600,000 $550,000 $650,000 $300,000 $625,000 $550,000 $ 5,900,000 1ST QTR 4/20-6/20 $1,200,000 $2,000,000 $200,000 $1,000,000 $200,000 $650,000 $350,000 $700,000 $650,000 $1,000,000 $ 7,950,000 2ND QTR 7/20-9/20 $250,000 $950,000 $1,500,000 $1,900,000 $150,000 $450,000 $53,000 $750,000 $750,000 $2,700,000 $ 9,453,000 3RD QTR 10/20-12/20 $1,500,000 $900,000 $850,000 $575,000 $150,000 $750,000 $225,000 $652,000 $ 5,602,000 4TH QTR 1/21-3/21 $1,250,000 $800,000 $ 2,050,000 TOTAL DISBURS. $ 900,000 $ 3,000,000 $ 4,600,000 $ 5,000,000 $ 500,000 $ 4,600,000 $ 1,250,000 $ 2,000,000 $ 1,303,000 $ 2,500,000 $ 2,500,000 $ 4,902,000 $ 33,055,000 19 Attachment 3--ASAP CWSRF Payment Schedule Clean Water State Revolving Fund Payment No. 1 2 3 4 5 6 7 8 TOTAL Attachment 3 ASAP Payment Schedule Clean Water State Revolving Fund Federal Fiscal Year Quarter Date 3rd 4/2019 - 6/2019 4th 7/2019 - 9/2019 1st 10/2019 - 12/2019 2nd 1/2020 - 3/2020 3rd 4/2020 - 6/2020 4th 7/2020 - 9/2020 1st 10/2020 - 12/2020 2nd 1/2021 - 3/2021 Amount ($) $0 $27,138,000 $0 $0 $0 $0 $0 $0 $27,138,000 20 Attachment 4--Estimated Sources and Uses GEFA Clean Water State Revolving Fund Attachment 4 Clean Water State Revolving Fund (CWSRF) Sources and Uses Administered by GEFA State Fiscal Year July 1, 2019 - June 30, 2020 Sources & Uses Federal State CWSRF Contribution Contribution Fund Funding Sources Loan Repayments (P&I) 37,119,920 Investment Income 2,000,000 Banked Project Disbursements* 2,000,000 400,000 FFY 2019 Capitalization Grant 27,138,000 5,427,600 Total 37,119,920 2,000,000 2,400,000 32,565,600 Total Funding Sources $29,138,000 $ 5,827,600 $ 39,119,920 $ 74,085,520 Funding Uses Project Disbursements 29,138,000 5,827,600 38,034,400 73,000,000 FFY 2019 Administration 1,085,520 1,085,520 Total Uses $ 29,138,000 $ 5,827,600 $ 39,119,920 $ 74,085,520 *It is projected this amount of funding from the 2018 grant will remain at the end of FY2019. These funds will be spent based on a first-in, first-out approach during the upcoming fiscal year. 21 Attachment 5--CWSRF Administration from Repayment Dollars GEFA is using repayment dollars to satisfy the administrative costs for the CWSRF. The costs are capped at $1,085,520, which is 4 percent of the allotment. The table below displays how $1,085,520 will be spent to administer the fund as well as ongoing projects. 4 Percent Administration (2019--$1,085,520) Activity CWSRF Administration Activity Activities include project reviews and approvals; planning; project development; information tracking; information gathering and development of the National Needs Survey; project ranking; issuing Notices of No Significant Impacts (NONSI); Categorical Exclusions (CE); construction management; MBE/WBE requirements; project inspections; and assistance with the National Information Management System (NIMS). Total Cost Engineering and Technical Support Contract: $288,520 GEFA staff: $797,000 $1,085,520 22 Attachment 6 - 2019 CWSRF Affordability Criteria Clean Water State Revolving Fund Affordability Criteria Effective September 4, 2018 GEFA's affordability criteria uses data on median household income, unemployment rate, and population trends from the U.S. Census Bureau's American Community Survey. The borrower's data is categorized in percentiles. GEFA will award principal forgiveness to Georgia's most disadvantaged communities. 4. Median Household Income (MHI) State Percentiles MHI 5. Unemployment Rate 25th Percentile 50th Percentile 75th Percentile $29,509 $37,108 $47,375 State Percentiles Unemployment Rate 25th Percentile 50th Percentile 75th Percentile 3.30% 4.80% 6.60% 6. Population Trend The following will be the categories used for determining scoring for change in population from 2010 to 2016. Positive growth or no growth Between -0.01 percent to -1 percent Between -1.01 percent and -2 percent Greater than -2 percent 23 Attachment 7--Ranking Criteria for CWSRF Projects Georgia Environmental Finance Authority 2019 CWSRF Project Solicitation Project Ranking Criteria Projects will be rated in three categories to determine eligibility and selection for funding through the Clean Water State Revolving Fund (CWSRF) Program. CLEAN WATER SRF Clean Water State Revolving Fund Scoring System 1. Readiness to proceed (maximum of 40 points) 2. Compliance benefit (maximum of 45 points) 3. Project benefits (select all benefits that apply from each category) a. Stormwater management, nonpoint source, and sourcewater protection benefits (maximum of five points) b. Energy conservation, efficiency, and production benefits (maximum of five points) c. Wastewater collection, conveyance, and treatment benefits (maximum of five points) CWSRF Scoring System Detailed Breakdown 1. Readiness to Proceed (maximum of 40 points) a. State Environmental Review Process (SERP) complete b. SERP in progress c. Compliance with State Nonpoint Source Management Plan verified 40 pts 30 pts 40 pts 2. Compliance Benefits CHECK HIGHEST LEVEL THAT APPLIES (maximum of 45 points) a. Project is needed to fully address deficiencies documented in Emergency or Administrative Order from EPA or EPD (Order #:______________) b. Project will support implementation of a Total Maximum Daily Load (TMDL) plan (applicable TMDL, water body name, and water body ID) c. Project is needed to achieve/maintain compliance with applicable permit (NPDES, LAS, MS4) (Permit #: _______________) 45 pts 45 pts 20 pts 3. Project Benefits (maximum of 25 points for project benefits category) Stormwater Management, Nonpoint Source, and Sourcewater Protection Benefits 24 (maximum of 10 points) a. Project involves the permanent protection of a wellhead protection or groundwater recharge area or land within a designated Source Water Protection Area. b. Project will reduce nonpoint source pollution and provide passive recreation facilities open for public access. c. Project will allow a stream segment currently listed as "non-attaining of designated use" on either the 303(d) list or the 305(b) list to meet its designated use. d. Project includes permanent protection of stream buffer zones and/or wetlands. Energy Conservation, Efficiency, and Production Benefits (maximum of five points) a. Project will reduce energy consumption at a wastewater treatment facility and/or collection system by 20 percent or more. b. Project designed to reduce energy consumption by the utility through the replacement of pumps and/or motors, blowers, SCADA equipment, inflow and infiltration correction, lighting upgrades, or other energy savings products or processes. c. Energy management planning projects, including energy assessments, energy audits, optimization studies, and other projects designed to determine high energy use areas. Wastewater Collection, Conveyance, and Treatment Benefits (maximum of 10 points) a. Project will allow a stream segment currently listed as "non-attaining of designated use" on either the 303(d) list or the 305(b) list to meet its designated use. b. Project will allow a facility to attain a level of treatment that is more stringent than secondary treatment or produces a significant reduction in non-conventional or toxic pollutants. (BOD, nitrogen, phosphorus, ammonia, metals, synthetic organic chemicals) c. Project will reduce sanitary sewer overflows (SSO). d. Project will eliminate leaking/failing septic systems. * GEFA reserves the right to verify any information submitted within the pre-application. 5 pts 5 pts 10 pts 5 pts 5 pts 5 pts 5 pts 10 pts 5 pts 5 pts 5 pts 25 Attachment 8 - Public Meeting Summary IUP Georgia Environmental Finance Authority IUP Meeting Minutes Atlanta, Georgia 30303 Tuesday, April 23, 2019 10:00 a.m. Call to Order The meeting was called to order by Tracy Williams, senior project manager on Tuesday, April 23, 2019, at 10:00 a.m. at the Georgia Environmental Finance Authority (GEFA) boardroom located in Atlanta, Georgia. GEFA staff present at the meeting were: Martha Douglas Amanda Carroll Sarah Oken Public participants present at the meeting were: None. Tracy Williams welcomed everyone and introduced the staff in attendance. After discussing the purpose for the public meeting was to present and receive comments on the drafted 2019 Clean Water and Drinking Water State Revolving Funds, she opened the floor for comments. Comments from Speakers No other comments were made. The meeting was adjourned at 11:00 a.m. 26 Attachment 9 - Loan Program Policies May 2018 GEORGIA ENVIRONMENTAL FINANCE AUTHORITY 1. PURPOSE The Georgia Environmental Finance Authority (GEFA) provides affordable financing to local governments throughout Georgia to develop environmental infrastructure that protects public health, preserves natural resources, and promotes economic development. GEFA sustains this mission through effective, efficient, and prudent management of these public resources. 2. APPLICABILITY Loan program policies govern the use of funds managed within the: Georgia Fund, Georgia Reservoir Fund, Clean Water State Revolving Fund (CWSRF), and Drinking Water State Revolving Fund (DWSRF). 3. SUB-PROGRAMS Georgia Fund Emergency Loan Program The GEFA executive director has the authority to approve emergency loans to assist communities with financing improvements that are necessary to eliminate actual or potential public health hazards. Emergency loans are ratified at the next scheduled board meeting. The applicant must determine and document the emergency nature of the project and apply O.C.G.A. Section 36-91-22(e), which outlines the local government actions needed to classify a project as an emergency. Relevant terms are addressed in these policies. 4. ELIGIBLE RECIPIENTS Type of Entity GEFA can provide financing to the following entities: o Local governments and instrumentalities of the state, o Municipal corporations, o County or local water, sewer, or sanitary districts, 27 o State or local authorities, boards, or political subdivisions created by the General Assembly or pursuant to the Constitution and laws of the state, and o Nongovernmental entities with an approved land conservation project. Minimum Recipient Qualifications Qualified Local Government Municipalities and counties must be certified as Qualified Local Governments by the Georgia Department of Community Affairs (DCA). Service Delivery Strategy Municipalities, counties, and authorities must be included in a DCA-verified Service Delivery Strategy. The project for which an applicant seeks financing must be consistent with the verified strategy. State Audit Requirements Municipalities, counties, authorities, and nongovernmental entities must be in compliance with state audit requirements. Metro Plan Compliance Municipalities, counties, and authorities located within the Metropolitan North Georgia Water Planning District (MNGWPD) can receive GEFA financing if the director of the Georgia Environmental Protection Division (EPD) has certified that the applicant/recipient is in compliance or is making a good faith effort to comply with all MNGWPD plans and/or enforcement measures. Updated Building Codes Municipalities and counties must adopt and enforce O.C.G.A. Section 8-2-3 relating to the installation of high-efficiency plumbing fixtures. Current Loan Agreements A current GEFA borrower can receive additional GEFA financing only if the borrower is in compliance with the existing credit documents, e.g., loan agreement and promissory note. Nongovernmental Entities Nongovernmental entities must be a nonprofit organization with a primary purpose of permanently protecting or conserving land and natural resources, as evidenced by their organizational documents and consistent with O.C.G.A. Section 12-6A-2(9.1). 5. ELIGIBLE PROJECTS GEFA's loan programs provide financing for a broad range of water, wastewater, sewer, stormwater, nonpoint source pollution prevention, land conservation, and solid waste projects. Specific project eligibility varies by program. The types of projects eligible for financing in each program and the minimum project requirements are listed below. Georgia Fund May finance projects consistent with O.C.G.A. Section 50-23-4 to: o Supply, distribute, and treat water o Collect, treat, or dispose of sewage or solid waste Georgia Reservoir Fund May finance projects consistent with O.C.G.A. Section 50-23-28 to: o Expand the capacity of existing reservoirs or other sources for water supply o Establish new reservoirs or other sources for water supply CWSRF May finance projects consistent with the federal Clean Water Act to: o Construct municipal wastewater facilities o Control nonpoint source pollution, including projects that permanently protect conservation land as defined by O.C.G.A. Section 12-6A-2(5) 28 DWSRF May finance projects consistent with the federal Safe Drinking Water Act to: o Install or upgrade facilities to improve drinking water quality or pressure, protect water sources, and provide storage create or consolidate water systems Minimum Project Eligibility Requirements Under the Federal State Revolving Fund Programs In addition to meeting the other applicable eligibility requirements outlined in these policies, projects receiving funding through the CWSRF or DWSRF must comply with applicable federal statutes, rules, and regulations. These requirements include, but are not limited to: Each project must be included in an Intended Use Plan submitted by GEFA to the U.S. Environmental Protection Agency (EPA). Each project must successfully complete the State Environmental Review Process, which is administered by EPD, and receive a Notice of No Significant Impact or Categorical Exclusion. Each recipient must certify compliance with Title VI of the Civil Rights Act by completing EPA Form 4700-4. Each DWSRF project and CWSRF treatment works project must comply with applicable federal procurement and labor rules, including Disadvantaged Business Enterprise utilization, Equal Employment Opportunity, the Davis Bacon Act, and requirements that may arise in future federal law or future federal assistance agreements. Each DWSRF project and CWSRF treatment works project must incorporate iron and steel products produced in the U.S. ("American Iron and Steel Requirement"). Each CWSRF treatment works project must certify that a Fiscal Sustainability Plan has been developed and is being implemented for the project or certify that a Fiscal Sustainability Plan will be developed and implemented for the project. 6. ELIGIBLE ACTIVITIES Recipients of GEFA financing may use GEFA funds for the following activities related to an eligible project: Feasibility analysis Project design Construction, grading, site preparation, dredging, etc. Land and easement acquisition needed for project implementation Stream or wetland mitigation Administrative and/or legal services System purchase Engineering, Legal, and Administrative Costs GEFA funds may be utilized for engineering, design, administrative costs, facilities planning, and land acquisition provided that these costs are necessary for the completion of the project defined by the scope of work and identified in the budget of the approved loan agreement. Such eligible costs incurred prior to the execution of a loan agreement are eligible for reimbursement with a GEFA loan. GEFA also offers engineering-only loans for these preliminary soft costs needed to facilitate the construction of an eligible project. GEFA will review and apply a standard to all project budgets. 29 Purchase of Existing Systems An application that proposes to purchase an existing water and/or wastewater system must be accompanied by a certification of the value of the system by a registered professional engineer. GEFA will require other information as needed to document the content and costs of the purchase. GEFA's loan agreement provides additional information about activities for which a borrower may or may not use GEFA funds. 7. PROGRAM MAXIMUMS Loans available from GEFA are subject to the following maximums. Georgia Fund The maximum loan amount is $3,000,000 per borrower per year. The maximum loan amount for emergency loans is $500,000 per project. The standard amortization period is 20 years or the useful life of the project. Georgia Reservoir Fund The maximum loan amount will be determined based on availability of funds. The length of the amortization period shall be determined on a case-by-case basis consistent with O.C.G.A. Section 50-23-28. The maximum amortization period is 40 years. CWSRF The maximum loan amount is $25,000,000 per borrower per year. The maximum loan amount for engineering loans is $2,000,000 per project. The maximum amortization period is 30 years not to exceed the useful life of the project. DWSRF The maximum loan amount is $25,000,000 per borrower per year. The maximum loan amount for engineering loans is $2,000,000 per project. The maximum amortization period is 30 years for communities designated as "disadvantaged" based on GEFA's affordability criteria not to exceed the useful life of the project. 8. INTEREST RATES GEFA indexes its interest rates to the true interest cost (to the nearest hundredth of one percent) received by the state on its 20-year, competitively-bid, general obligation bond issue. This is GEFA's benchmark rate; however, the interest rate adjustments described below may apply. Federal Loans For CWSRF and DWSRF loans, GEFA will charge an interest rate that is 50 basis points (0.50 30 percent) below GEFA's benchmark rate. Interest Rate Concessions GEFA provides the following interest rate concessions for eligible borrowers or eligible projects under the specified funding programs. Interest rate concessions shall not be used in combination. WaterFirst Communities that receive the WaterFirst designation may receive an interest rate 100 basis points (1 percent) below the prevailing interest rate for the program through which it is to be funded. PlanFirst Communities designated as a PlanFirst Community may receive an interest rate 50 basis points (0.50 percent) below the prevailing interest rate for the program through which it is to be funded. Conservation Communities seeking financing for eligible energy, land, or water conservation projects may receive an interest rate 100 basis points (1 percent) below the prevailing interest rate for the program through which it is to be funded as outlined in GEFA's Water Conservation Financing guidance. Special Loan Terms The GEFA board may approve loans with different interest rates or specialized terms, e.g., principal forgiveness, consistent with specific program objectives and/or relevant federal requirements. 9. FEES GEFA may assess certain fees to loan recipients. Origination Fee GEFA will charge an origination fee of 1 percent pursuant to the loan agreement. Loan Servicing Fees Under specific circumstances, GEFA may charge the following loan servicing fees: GEFA may assess a non-sufficient funds fee (NSF) if the borrower fails to have sufficient funds in its designated bank account at the time the payment is drafted. The payment due may be for any type of payment due under the credit documents including origination fees, construction interest, monthly principal and interest payments, or any other fee. GEFA will charge the NSF fee to the borrower for each loan for which payment is due and not available. GEFA may assess a late fee for any payment not received by the 15th of the month in which the payment is due. This will be in addition to any NSF fees assessed in the same month. GEFA may assess a monthly Loan Continuation Fee in the event the borrower fails to draw funds within six months (180 days) of loan agreement execution. For details about the fees, refer to the Loan Servicing Fee Schedule available at gefa.georgia.gov/loandocuments. 10. LOAN SECURITY GEFA requires a revenue and full-faith-and-credit pledge of each borrower and any other special loan condition it may deem necessary, e.g., debt service reserve, etc. For borrowers, such as authorities, that lack taxation authority or lack adequate taxation authority to provide a full-faith-and-credit pledge equal to the value of the loan, GEFA will require those borrowers to sign an agreement with a local government that is willing and able to 31 provide a full-faith-and-credit pledge to back the loan. In cases where the borrower is unable to secure such an agreement, GEFA may require additional security by other means. 13. RELEASE OF GEFA FUNDS DURING CONSTRUCTION GEFA monitors construction and endorses GEFA payments in accordance with the loan agreement. To allow monitoring, the loan or grant recipient must notify GEFA prior to commencing construction. 14. LOAN EXECUTION DEADLINE If the loan agreement is not fully executed within six months (180 days) from the date of board approval, GEFA reserves the right to terminate its commitment. 15. LOAN RESTRUCTURING Loan restructuring is the changing of terms and/or conditions of an existing loan. The range of restructuring options may include adjusting the interest rate of a loan, changing the amortization period of a loan, or changing the repayment schedule to adjust allocation between interest and principal. GEFA will consider a borrower's request to restructure its existing GEFA loan(s) on a case-by-case basis if the borrower is experiencing financial hardship. In evaluating a restructuring request, GEFA will consider at a minimum the following indicators of financial hardship: The borrower's debt service coverage ratio history. The type and extent of efforts undertaken by the borrower to improve its financial condition, including enhancing revenues from rate increases or raising of ad valorem taxes and/or reducing costs. Emergency or exigent circumstances beyond the control of the borrower that impose a long-term and severe financial hardship. Under no circumstances will loan principal be forgiven. 16. LOAN REFINANCING Loan refinancing uses loan funds to pay off an existing debt obligation, thereby satisfying the terms of the existing debt agreement and cancelling the existing obligation. GEFA will consider requests to refinance existing GEFA debt on a case-by-case basis if one of the following conditions is met: The community is requesting a loan from GEFA to finance an eligible, time-sensitive, and critical project, but needs to consolidate existing GEFA debt into the new loan to afford the new project. The community has an engineering loan it would like to refinance with the proceeds of a construction loan from GEFA, thereby combining the engineering loan and the construction loan into one loan. 17. CREDIT ANALYSIS GEFA requires a minimum debt service coverage of 1.05 times in the first year of repayment and each subsequent year of the outstanding GEFA debt. 32