State of Georgia Clean Water State Revolving Fund Program 2016 annual report

STATE OF GEORGIA CLEAN WATER STATE REVOLVING FUND PROGRAM
STATE FISCAL YEAR 2016 ANNUAL REPORT
Prepared by the GEORGIA ENVIRONMENTAL FINANCE AUTHORITY
For the U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION IV
September 30, 2016
PLEASE NOTE that this report does not constitute nor is it suitable for use as an official financial statement. This report is not prepared by an independent auditor or accountant, and is provided for informational purposes only.

CLEAN WATER STATE REVOLVING FUND ANNUAL REPORT TABLE OF CONTENTS
STATE FISCAL YEAR 2016
INTRODUCTION ..............................................................................................................................1
EXECUTIVE SUMMARY ..................................................................................................................1
ADDITIONAL SUBSIDIZATION PROJECTS....................................................................................2
CITY OF COCHRAN (CWSRF 15-002) ................................................................................................................................ 2 CITY OF COCHRAN (CWSRF 15-009) ................................................................................................................................ 2 CITY OF CORNELIA (CWSRF 15-017) ................................................................................................................................ 2 CITY OF ELBERTON (CWSRF 14-020) ............................................................................................................................... 2 CITY OF HARTWELL (CWSRF 15-007) ............................................................................................................................... 3 CITY OF HELEN (CWSRF 14-018) .................................................................................................................................... 3 CITY OF SANDERSVILLE (CWSRF 15-003) ......................................................................................................................... 3 CITY OF SUMMERVILLE (CWSRF 13-005) .......................................................................................................................... 3 CITY OF THOMASVILLE (CWSRF 14-006) ........................................................................................................................... 3
GREEN PROJECTS.........................................................................................................................3
CITY OF BAXLEY (CWSRF 15-011) ................................................................................................................................... 3 CITY OF BYRON (CWSRF 15-014) .................................................................................................................................... 3 CITY OF MILLEN (CWSRF 15-014).................................................................................................................................... 4 CITY OF WRIGHTSVILLE (CWSRF 14-021).......................................................................................................................... 4
BASE CWSRF PROJECTS..............................................................................................................4
CITY OF ATLANTA (CWSRF 15-010) ................................................................................................................................. 4 CITY OF CLEVELAND (CWSRF 15-013).............................................................................................................................. 4 CITY OF DAWSONVILLE (CWSRF 15-008) .......................................................................................................................... 4 CITY OF EMERSON (CWSRF 15-005) ................................................................................................................................ 4 CITY OF FAYETTEVILLE (CWSRF 14-019) .......................................................................................................................... 4 CITY OF GRIFFIN (CWSRF 14-013)................................................................................................................................... 4 CITY OF POOLER (CWSRF 15-020) .................................................................................................................................. 5 CITY OF ROCKMART (CWSRF 14-015) .............................................................................................................................. 5 CITY OF VALDOSTA (CWSRF 13-006) ............................................................................................................................... 5 THE CONSERVATION FUND (CWSRF 16-009) ..................................................................................................................... 5 THE NATURE CONSERVANCY (LC2015001) ........................................................................................................................ 5
MEETING IUP GOALS AND OBJECTIVES .....................................................................................5
PROGRAM ADMINISTRATION (4 PERCENT) ................................................................................7
CWSRF NON-PROGRAM INCOME.................................................................................................7
DBE PARTICIPATION......................................................................................................................7
CWSRF LOAN DISBURSEMENTS ..................................................................................................8
CWSRF STATE MATCH ..................................................................................................................8
CWSRF LOAN REPAYMENT...........................................................................................................8
WRRDA IMPLEMENTATION ...........................................................................................................8
ASSURANCES AND SPECIFIC PROPOSALS ................................................................................9

LIST OF ATTACHMENTS
ATTACHMENT 1: SOURCES AND USES OF FUNDS BY QUARTER............................................................................................................. 10 ATTACHMENT 2: CWSRF REPAYMENT ACCOUNTS.............................................................................................................................. 10 ATTACHMENT 3: COMMUNITIES RECEIVING CWSRF FINANCIAL ASSISTANCE........................................................................................ 11 ATTACHMENT 4: BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE ...................................................................... 12 ATTACHMENT 5: ADMINISTRATIVE EXPENSES BY CATEGORY ................................................................................................................ 13 ATTACHMENT 6: DBE UTILIZATION ..................................................................................................................................................... 14 ATTACHMENT 7: DISBURSEMENT OF CWSRF FUNDS BY QUARTER ...................................................................................................... 15 ATTACHMENT 8: COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS ................................................................................ 16 ATTACHMENT 9: PROJECTS INITIATING OPERATION ............................................................................................................................. 17

STATE OF GEORGIA CLEAN WATER STATE REVOLVING FUND PROGRAM
STATE FISCAL YEAR 2016 ANNUAL REPORT

INTRODUCTION

The Clean Water State Revolving Fund (CWSRF) provides assistance to wastewater and nonpoint source projects that improve water quality in Georgia as aligned with the objectives of the Clean Water Act of 1972, as amended. A range of water quality and wastewater treatment projects are covered by the program, including:
Stormwater and flood control projects, Projects for the construction or expansion of wastewater treatment facilities and installation of sewer lines
and sewer rehabilitation, and Projects that reduce energy costs, such as solar, wind, and biogas projects.
As required by the Code of Federal Regulations, Title 40, Part 35, Subpart K, Section 35.3165; Section 606, Paragraph (d) of the Clean Water Act; and Chapter 6 of the CWSRF Management Manual of December 1988, the Georgia Environmental Finance Authority (GEFA) submits this annual report for the state fiscal year ending June 30, 2016. This report provides detailed information concerning the management and fiscal integrity of this program, changes to the program, and updates to the program's goals and objectives in relation to the 2015 Intended Use Plan (IUP).
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 governor of Georgia appoints eight members to the GEFA board of directors and three exofficio members are designated by the Authority's enabling legislation. The Georgia Environmental Protection Division (EPD) provides certain professional services for the CWSRF. These services include: project reviews and approvals; planning; project development; information tracking; information gathering and assistance with the National Needs Survey; issuing Notices of No Significant Impacts (NONSI) and Categorical Exclusions (CE); and assistance with the National Information Management System (NIMS) and certain sections of the Clean Water Benefits reporting database.
EXECUTIVE SUMMARY

In May 2015, GEFA submitted an IUP and application for the 2015 CWSRF grant. The 2015 grant was awarded on August 4, 2015, for $23,585,000. Additionally, in April 2016, the 2016 grant application and IUP was submitted to The U.S. Environmental Protection Agency (EPA) for $22,591,000 and awarded on August 24, 2016. Funds from EPA received by Georgia's CWSRF total $773,198,111 with an additional $24,672,170 net transfers from the Drinking Water State Revolving Fund (DWSRF). Georgia's required state match to date totals $140,959,950.

Attachment 1 displays the total sources of funds by quarter during state Fiscal Year 2016 (FY2016) including federal

grant funds, state match contributions, repayments from direct federal loans, repayments from state match loans,

and interest earnings generated from these accounts. Attachment 1 also shows the closing fees collected by quarter

identified as Program Income and Non-Program Income. Georgia reports the collection of Program Income and

Non-Program Income separately in accordance with the EPA Fee Guidance released in October 2005. Currently,

some Non-Program Income is used to fund portions of EPD's water quality program, including field staff, lab testing,

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and standards development. Attachment 1 also displays the uses of funds by quarter. Attachment 2 displays the balances within these accounts as of June 30, 2016.
The CWSRF executed 23 new loans along with two increases to existing loans in state FY2016 for a total of $134,143,866. This total assistance includes $3,169,250 in eligible principal forgiveness and $12,182,500 in loans that met the qualifications for the Green Project Reserve. Attachment 3 provides a list of loans executed in state FY2016. Attachment 4 displays information for these 23 projects in the NIMS format. Lastly, GEFA and EPD have collectively entered all necessary information into the Clean Water Benefits reporting database for all projects funded through state FY2016.
All commitments were made to qualified local governments or water and sewer authorities according to the requirements of the Georgia Department of Community Affairs (DCA) or qualified nonprofit organizations and accredited land trusts. All loans also met the requirements of HB 489, which indicates that each loan possesses a verified service delivery strategy.
Additionally, all loan recipients have the technical, managerial, and financial capability to operate a sewer system. Each project was also reviewed in accordance with the EPA-approved State Environmental Review Process (SERP) and was issued a NONSI or CE. Previously, all CWSRF projects completed a 4700-4 Certification Form and subsequently had that form approved by EPA. GEFA recently incorporated language into the loan agreement that satisfies this requirement and no longer requires the completion and submittal of this form to EPA. Below is a short write-up for each of the projects funded in state FY2016.
ADDITIONAL SUBSIDIZATION PROJECTS

City of Cochran (CWSRF 15-002) On August 14, 2015, Cochran signed a $1,500,000 assistance agreement, including $225,000 in principal forgiveness. This project includes rehabilitation of existing lines and manholes to reduce the overflows, inflow and infiltration in the collection system. As of the end of state FY2016, Cochran had drawn $100,518.25 from this commitment.

City of Cochran (CWSRF 15-009) On July 2, 2015, Cochran signed a $2,500,000 assistance agreement, including $500,000 in principal forgiveness to rehabilitate existing sewer lines and manholes and to replace two sewage lift stations to reduce the inflow and infiltration and to prevent sewage overflows. As of the end of state FY2016, Cochran had not drawn from this commitment.

City of Cornelia (CWSRF 15-017) On June 20, 2016, Cornelia signed a $975,000 assistance agreement, including $195,000 in principal forgiveness, to upgrade the city sanitary sewer system complete with manholes, sewer laterals, and cleanouts in an area experiencing issues with inflow and infiltration. As of the end of state FY2016, Cornelia had not drawn from this commitment.

City of Elberton (CWSRF 14-020) On July 24, 2016, Elberton signed a $1,400,000 assistance agreement, including $280,000 in principal forgiveness, for renovations to the Fortson Creek and Falling Creek Sewage Treatment Plants including installation of aeration controls, installation of clarification equipment and construction of a new digester, and other miscellaneous improvements. As of the end of state FY2016, Elberton had drawn $1,033,201.01 from this commitment.

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City of Hartwell (CWSRF 15-007) On June 2, 2016, Hartwell signed a $1,000,000 assistance agreement, including $196,000 in principal forgiveness, for a project that will replace the existing traveling bridge sand filter at the city's wastewater treatment plant with the new textile fabric disk filter. As of the end of state FY2016, Hartwell had not drawn from this commitment.
City of Helen (CWSRF 14-018) On July 15, 2015, Helen signed a $350,000 assistance agreement, including $52,500 in principal forgiveness, for the rehabilitation of approximately 1,500 linear feet of sewer lines as a part of the Willow Pond Sewer Rehabilitation project. As of the end of state FY2016, Helen had drawn $179,833.70 from this commitment.
City of Sandersville (CWSRF 15-003) On December 22, 2015, Sandersville signed a $1,200,000 assistance agreement, including $240,000 in principal forgiveness, to install a 15-inch interceptor sewer to eliminate two pump stations in the city's sewerage collection system. On June 22, 2016, Sandersville signed a $298,180 increase to cover bid that came in higher than estimated to complete the project. As of the end of state FY2016, Sandersville had drawn $415,254.43 from this commitment.
City of Summerville (CWSRF 13-005) On January 22, 2016, Summerville signed a $100,000 increase to the existing $1,220,000 assistance agreement entered on May 16, 2016, including $122,000 in principal forgiveness, to replace all 4,499 existing, manual-read water meters within the Summerville water system with new automated radio-read meters with associated software and hardware. As of the end of state FY2016, Summerville had drawn $1,086,755.43 from this commitment.
City of Thomasville (CWSRF 14-006) On July 17, 2015, Thomasville signed a $665,000 assistance agreement, including $99,750 in principal forgiveness for the rehabilitation of the existing sewer system in the city's Stevenson Street Redevelopment District. The existing sewer lines will be rehabilitated using either pipe bursting or the cured-in-place pipe (CIPP) method. This project also includes rehabilitation of existing manholes. As of the end of state FY2016, Thomasville had drawn $436,028.25 from this commitment.
GREEN PROJECTS
City of Baxley (CWSRF 15-011) On January 26, 2016, Baxley signed a $1,852,500 assistance agreement, including $275,000 in principal forgiveness, to construct a 650 Kw solar installation located adjacent to the wastewater treatment plant to offset energy purchase costs and provide long term sustainable power generation to Baxley's wastewater operations. As of the end of state FY2016, Baxley had not drawn from this commitment.
City of Byron (CWSRF 14-003) On October 1, 2015, Byron signed a $4,000,000 assistance agreement, including $400,000 in principal forgiveness, for the second phase of rehabilitation of the city's sewage collection system that will result in cost and energy savings for Byron by reducing the flows treated at the wastewater treatment facility. As of the end of state FY2016, Byron had drawn $53,592.60 from this commitment.

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City of Millen (CWSRF 15-014) On April 21, 2016, Millen signed a $1,030,000 assistance agreement, including $206,000 in principal forgiveness, for the installation of a solar array that will produce 95 to 100 percent of the energy needs for Millen's wastewater plant and a lift station. As of the end of state FY2016, Millen had not drawn from this commitment.
City of Wrightsville (CWSRF 14-021) On February 29, 2016, Wrightsville signed a $5,300,000 assistance agreement, including $500,000 in principal forgiveness, for the rehabilitation of the city's sewage collection system, including line rehabilitation and replacement of pumps and electrical upgrades at five of the city's pump stations. As of the end of state FY2016, Wrightsville had not drawn from this commitment.
BASE CWSRF PROJECTS

City of Atlanta (CWSRF 15-010) On January 29, 2016, Atlanta signed a $51,426,136 assistance agreement to construct improvements at the R.M. Clayton headworks facility. The project includes replacement of existing coarse screening and grit removal systems to treat raw influent. New influent flow monitoring equipment will be installed to accurately measure and report the influent flows to the headworks facility. As of the end of state FY2016, Atlanta had drawn $5,591,902.36 from this commitment.

City of Cleveland (CWSRF 15-013) On March 28, 2016, Cleveland signed a $478,055 assistance agreement to construct a gravity sewer line, decommissioning and replacing the existing sewer pump station. As of the end of state FY2016, Cleveland had not drawn from this commitment.

City of Dawsonville (CWSRF 15-008) On January 21, 2016, Dawsonville signed a $445,500 assistance agreement to construct an additional 800,000-gallon aeration pond to operate in series between the city's existing aeration pond and the holding pond for the city's land application system to improve the city's wastewater effluent quality. As of the end of state FY2016, Dawsonville had not drawn from this commitment.

City of Emerson (CWSRF 15-005) On November 17, 2015, Emerson signed a $2,400,000 assistance agreement to construct upgrades to the plant's pumping, screening, equalization, and digestion systems. As of the end of state FY2016, Emerson had drawn $486,886.05 from this commitment.

City of Fayetteville (CWSRF 14-019) On November 10, 2015, Fayetteville signed a $1,465,000 assistance agreement to rehabilitate existing stormwater infrastructure and drainage facilities. As of the end of state FY2016, Fayetteville had drawn $3,262.50 from this commitment.

City of Griffin (CWSRF 14-013) On July 28, 2015, Griffin signed a $12,700,000 assistance agreement to construct a new headworks facility, an advanced biological treatment system, influent and effluent meters, secondary clarifiers, a UV disinfection system, and systems for aeration, filtration and aerobic digestion. This project will expand the capacity of the city's Potato Creek Wastewater Treatment Plant from 2 million gallons per day (MGD) to 3 MGD. As of the end of state FY2016, Griffin had drawn $1,956,651.13 from this commitment.

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City of Pooler (CWSRF 15-020) On June 20, 2016, Pooler signed an $6,176,183 assistance agreement to upgrade their 2.5 million gallon per day (MGD) wastewater treatment plant (WWTP) that was currently operating at 80 percent capacity. The expansion of the WWTP to 3.3 MGD, will allow the city to accommodate current and future growth while meeting discharge permit limits. This project consists of membrane bioreactor (MBR) module replacement, replacement of fine screens, chemical feed systems and chemical storage, construction of a septage receiving station, construction of pond pump station, and other improvements at the plant. As of the end of state FY2016, Pooler had not drawn from this commitment.
City of Rockmart (CWSRF 14-015) On July 10, 2015, Rockmart signed a $3,500,000 assistance agreement to upgrade the city's wastewater plant to enhance phosphorus removal in an effort to meet the new wastewater discharge permit limitations. As of the end of state FY2016, Rockmart had drawn $2,652,346.31 from this commitment.
City of Valdosta (CWSRF 13-006) On February 12, 2016, Valdosta signed a $1,000,000 increase to an existing $36,781,448 assistance agreement entered into on April 29, 2014, to construct a new headworks at the city's Withlacoochee Wastewater Treatment Plant, construct four lift stations, and construct six miles of force main and associated infrastructure. The additional work associated with this increase will be to perform repairs on sewer mains entering the lift stations and to upsize existing lines in this portion of the system to improve flows. As of the end of state FY2016, Valdosta had drawn $34,250,151.54 from this commitment.
The Conservation Fund (CWSRF 16-009) On June 24, 2016, the Conservation Fund signed a $20,000,000 assistance agreement to acquire 14,225 acres of forest land. The CWSRF loan portion will be used to purchase 11,000 acres that will be restricted by a conservation easement in favor of the Georgia Department of Natural Resources and the U.S. Department of Defense. As of the end of state FY2016, The Conservation Fund had drawn all funds.
The Nature Conservancy (LC2015001) On July 16, 2015, the Nature Conservancy signed a $1,882,312 assistance agreement involving the fee simple acquisition of 794 acres of land in McIntosh County for conservation purposes. This tract contains high quality floodplain forests, long-unburned flatwoods, and an old river dune with vegetation found almost exclusively along the northern bank of the Altamaha River. As of the end of state FY2016, the Nature Conservancy had drawn all funds.
MEETING IUP GOALS AND OBJECTIVES

The 2015 CWSRF IUP listed five goals for the program.
1. The CWSRF will work toward increasing its pace in comparison to the national average. According to the FY2014 NIMS database, Georgia's CWSRF Program had a 77 percent rate for the pace indicator of "SRF Disbursements as a Percent of Funds Available."

Status: According to the FY2015 NIMS database, Georgia's CWSRF had a 75 percent rate for the pace indicator of "SRF Disbursements as a Percent of Funds Available." The new loan servicing software has not been fully implemented, but will hopefully allow for the faster disbursement of funds once fully implemented. On August 25, 2015, GEFA made a large CWSRF commitment of $51,426,136 to the city of

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Atlanta. As of the year end FY2016, Atlanta has drawn 10 percent of those funds. These disbursements should increase the pace of the CWSRF in the upcoming fiscal year.
2. GEFA will fully implement the provisions included in the Water Resources Reform and Development Act of 2014 (WRRDA) and communicate these updates to current and/or prospective loan recipients.
Status: GEFA has taken steps and effectively met all requirements of WRRDA. GEFA also communicates this in the annual CWSRF solicitation process.
3. The CWSRF will continue to use the GEFA Conservation Initiative with its interest rate reductions to promote projects that produce and conserve energy at publically-owned wastewater treatment plants such as wind, solar and biogas combined heat and power projects as described in FWPCA Section 603(c)(8).

Status: GEFA successfully initiated the Biogas Technical Assistance Program (BTAP) to provide technical assistance to the municipal landfill owners and wastewater treatment plant operators to realize their landfill gas and biogas potential and to understand the technical solutions available to help them achieve the highest and best use of their resources. As of the end of state FY2016, $8,325.00 has been spent from non-program income to cover the phase 1 education and awareness. The BTAP program is slated to approve approximately $200,000 in grants and deliver those grant funds in state FY2017.
GEFA continues its effort to promote energy conservation projects. In FY2016, two solar projects were executed totaling $2,882,500. Both projects will provide solar power to the wastewater treatment facility to offset energy purchase costs and provide for long term sustainable power generation wastewater operations. GEFA hopes to continue funding more solar installations throughout the state and there are several other solar projects under development which will provide a stable energy source to many other wastewater utilities.
4. The CWSRF will continue to use the GEFA Conservation Initiative with its interest rate reductions to promote activities that implement water conservation projects and programs. Sustaining and promoting a culture of water conservation in Georgia and helping municipalities maximize existing water supplies is a key priority for GEFA.

Status: GEFA continues to promote water conservation projects by financial incentives through interest rate reduction and principal forgiveness. This has proven to be an effective marketing tool for communities throughout the state.
5. The CWSRF will continue to promote the development of green infrastructure. Even absent a regulatory driver, GEFA will help communities define the benefits of these types of projects including water quality and recreation so that public support is generated and the work is ultimately performed. GEFA staff will stay up to date on changing regulatory drivers and other trends and position itself to finance a large number of these projects and stormwater projects for municipalities when the need for financing arises.

Status: GEFA continues its effort to encourage investment in green infrastructure to support community needs. In FY2016, the GEFA board approved a $1,344,000 loan to Downtown Development Authority of Madison to construct green infrastructure including wet ponds to capture and treat stormwater runoff from downtown Madison and all associated land acquisition. This facility will serve as a new park for residents

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and visitors to downtown Madison. The loan is slated to be executed in FY2017.
PROGRAM ADMINISTRATION (4 PERCENT)

In state FY2016, GEFA spent $2,093,184.68 on program administration of the CWSRF and EPD charged $488,442.34 to the program operations contract with GEFA. Only $943,400 of program administration was funded out of the 4 percent set-aside due to lack of availability of funding. Where 4 percent set-aside funds were not sufficient to cover program administration costs, CWSRF Program Income was used to fund administration. Attachment 5 displays expenditures associated with program administration broken down by object category.
During state FY2016, the GEFA Construction Management Unit (CMU) processed 166 CWSRF project draw requests and performed 157 project inspections. The Construction Management Unit was transferred from EPD to GEFA's Water Resources Division in February 2014. This transfer has proven successful as GEFA's program managers and construction managers continue to foster a closer working relationship resulting in more effective management of the CWSRF program and its projects.
CWSRF NON-PROGRAM INCOME

Of the total spent on program for FY2016, GEFA spent $404,384.47 in CWSRF Non-Program Income in support of the state's water quality monitoring, testing, and standards development efforts. Attachment 5 shows the breakout of these dollars.
DBE PARTICIPATION

As a part of GEFA's loan agreement, loan recipients are required to encourage the participation of small minorityand women-owned businesses in all project subcontracts. The state's CWSRF percentage goals through September 30, 2016, are 4 percent for Minority Business Enterprises (MBE) and 4 percent for Women Business Enterprises (WBE). A summary of the DBE utilization is displayed in Attachment 6. Due to the reporting change of the DBE numbers to EPA from semi-annually to annual reporting, the data provided in Attachment 6 is for the reporting period of October 1, 2014, through September 30, 2015, which represents the most recent full fiscal year of data reported.

GEFA has made a tremendous effort to comply with the EPA's Six Good Faith Efforts. Telephone calls and emails are regularly made to DBE subcontractors to encourage their participation in both the CWSRF and DWSRF. DBE's are alerted to GEFA-approved projects as soon as they appear in the database, allowing subcontractors to inquire and prepare for these projects prior to the bid date. Subcontractors are additionally urged to pursue EPA/DOT/SBA certification. GEFA staff are available to answer questions and assist subcontractors in the application process. GEFA also maintains an in-house bidder's list of certified DBE prime and subcontractors. The data for the bidder's list is collected and forwarded to loan recipients with compliance approval. The bidder's list also serves as a database of MBE's and WBE's and non-MBE/WBE prime and subcontractors.

In considering whether firms could subcontract with DBEs, GEFA encourages prime contractors to follow the Six Good Faith Efforts to solicit the services of MBEs and WBEs and withholds project approval if there is insufficient documentation that the efforts were met. Prime contractors are also provided with an example of an EPA-approved newspaper advertisement and an example of a solicitation letter in efforts to eliminate generic newspaper advertisements and poorly-written letters. Prime contractors are sent a link to available DBEs on the Georgia DOT website and the bidder's list is also available to prime contractors, as well as the names, addresses and telephone numbers of contacts in the Small Business Administration, the Minority Business Development Agency, the U.S.

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Department of Commerce and other related state and federal agencies and associations. Guidance is also provided in all related construction contracts to encourage prime contractors to divide work when feasible.
CWSRF LOAN DISBURSEMENTS

The CWSRF disbursed funds to 38 active projects during state FY2016. Attachment 7 shows the projects that received funds by quarter in state FY2016. The CWSRF disbursed a total of $87,813,590.30 in state FY2016. Attachment 8 compares the projected disbursement schedules indicated within the 2014 and 2015 IUPs for state FY2016 against the actual disbursements made in state FY2016. The CWSRF disbursed 102 percent of projected disbursements in state FY2016.
CWSRF STATE MATCH

During state FY2016, all projects that received federal capitalization grant dollars used a cash draw ratio of 83.33 percent federal dollars and 16.67 percent state match dollars. GEFA has revisited this state match process and is currently considering implementing a new process whereby state match funds are disbursed before federal funds, upon prior approval from EPA. With the implementation of a new loan servicing software, this approach will closely align with EPA's suggested methodology. GEFA received sufficient general obligation bond funds to match the CWSRF program at 20 percent. The state bond funds will be deposited into the CWSRF fund as grant payments are made. Attachment 1 shows the amount of state match funds provided during state FY2016 by quarter.
CWSRF LOAN REPAYMENT

Nine CWSRF projects initiated operation during state FY2016 (Attachment 9). The total dollar value awarded to these eight projects equaled $50,632,312.00 of which $49,637,233.94, or 98 percent, was disbursed. The total amount of repayments credited to the CWSRF during state FY2016 from all sources was $80,940,358.32 and can be found within Attachment 1 (total of federal and state-match repayments). These sources of repayment include principal and interest payments as well as any late fees or loan continuation fees paid. To maintain the revolving nature of the CWSRF, all repayments including the principal, interest and fees are credited to the CWSRF. Attachment 1 also shows that $860,717.40 in closing fees were collected during the state fiscal year.
WRRDA IMPLEMENTATION

GEFA has taken specific steps toward implementing all new provisions of the Water Resources Reform and Development Act (WRRDA) signed into law by President Obama on June 10, 2014. Below is a summary of the provisions of this act that were implemented prior to June 30, 2016.

One provision enacted into law by WRRDA is the competitive procurement of architectural and engineering services for projects receiving CWSRF assistance. GEFA used commitments CWSRF 15-010 and CWSRF 10-008 (3) to meet the equivalency requirement because the procurement for the projects met the WRRDA requirements and the combined total of $61,926,136 exceeded the 2015 CWSRF Capitalization Grant of $22,591,000.

The Act made the American Iron and Steel (AIS) requirements permanent. GEFA had developed and implemented

the process for ensuring AIS compliance since this provision had already been enacted through other legislation

prior to being made permanent. GEFA has incorporated AIS language into the loan agreement for treatment works

projects. GEFA does not consider solar projects as treatment works and has excluded this language from these

loan agreements. In June 2015, EPA conducted four borrower site visits in conjunction with Cadmus. During these

visits, EPA made themselves available to answer any questions the borrowers had and to receive borrower

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feedback on implementation of the AIS requirements.
GEFA implemented a process to verify that a Fiscal Sustainability Plan (FSP) has been developed or will be developed prior to loan closing for all projects receiving CWSRF assistance. GEFA developed a new loan document titled the FSP Certification Form that CWSRF borrowers must complete prior to contract execution certifying that either the borrower has developed and implemented or will develop and implement an FSP for the portion of the treatment works included in the project scope. The FSP Certification Form requires that the FSP shall be made available by the borrower to GEFA upon request.
ASSURANCES AND SPECIFIC PROPOSALS
The CWSRF will adhere to all the certifications covered in the Act as well as those within Georgia's Operating Agreement with the Regional EPA office. The specific certifications are:
A. Introduction and General Program Management Assurances B. Clean Water State Revolving Loan Fund - An Instrumentality of the State
a. State Law b. Interagency Agreements C. Capitalization Grant Acceptance D. Payment Schedule E. State Matching Funds F. Commitment of 120 percent in One Year G. All Funds - Timely Expenditure H. Enforceable Requirements of the Act I. Cross Cutting Issues J. State Law and Procedures K. State Accounting and Auditing Procedures L. Recipient Accounting and Auditing Procedures M. Annual Report N. Limitations on Eligibility O. Maintain the Fund P. Perpetuity Q. Types of Assistance R. Limitation of Double Benefits S. Consistency with Planning Requirements T. Priority List U. Annual Audit V. Annual Federal Oversight Review and Technical Assistance W. Dispute Resolution X. Transfer of Funds between SRF Programs
A copy of GEFA's FY2016 audited financial data is provided under separate cover.

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ATTACHMENT 1 SOURCES AND USES OF FUNDS BY QUARTER
CLEAN WATER STATE REVOLVING FUND

FY 2016

July 1, 2015 - June 30, 2016

Quarter 1 7/2015 - 9/2015

Quarter 2 10/2015 - 12/2015

Quarter 3 1/2016 - 3/2016

Sources

Direct Capitalization Grant Funds (Accrual Basis) State Match Funds (Accrual Basis)

4,299,782.61 802,223.15

2,942,886.34 518,395.63

5,280,058.12 995,802.44

Repayments Collected (Cash Basis) CWSRF Federal & State Principal Repayments

11,586,733.07

10,094,724.84

28,728,993.13

CWSRF Federal & State Interest Repayments

5,093,368.90

5,047,625.50

4,924,782.69

Fees Collected (Cash Basis) Closing fee payments (program)

164,376.50

188,061.92

240,315.52

Closing fee payments (non-program) Investment Earnings (Short & Long-term)
CWSRF Federal Repayment Fund

183,094.06

201,188.24

328,416.67

CWSRF State-Match Repayment Fund Closing fee payments (program) Closing fee payments (non-program)

49,018.92 11,603.18
573.31

54,978.16 12,596.34
720.17

90,079.43 19,702.49
912.17

Total Sources $ 22,190,773.70 $

19,061,177.14 $ 40,609,062.66

Uses

CWSRF Disbursements - Cap grant CWSRF Disbursements - State Match

4,010,153.40 802,223.15

2,545,373.81 518,395.63

5,023,799.86 995,802.44

CWSRF Disbursements - Repayments CWSRF Administration (4%)

23,390,034.48 289,629.21

11,234,924.93 397,512.53

7,756,808.70 256,258.26

CWSRF Program Income CWSRF Non-Program Income

1,818.10 89.75

16,017.08 365,744.45

152,821.56 38,472.30

Total Uses $ 28,493,948.09 $

15,077,968.43 $ 14,223,963.12

Quarter 4 4/2016 - 6/2016
2,727,042.22 $ 545,539.36 $
10,587,444.39 $ 4,876,685.80 $
(393,734.71) $ 661,698.17 $
385,760.98 $ 106,802.78 $
22,897.71 $ 1,018.61 $
$ 19,521,155.31 $
2,727,042.22 $ 545,539.36 $
28,263,492.32 $ - $
574,831.79 $ 80.67 $
$ 32,110,986.36 $

Total
15,249,769.29 2,861,960.58
60,997,895.43 19,942,462.89
199,019.23 661,698.17
1,098,459.95 300,879.29 66,799.72 3,224.26
101,382,168.81
14,306,369.29 2,861,960.58
70,645,260.43 943,400.00 745,488.53 404,387.17
89,906,866.00

ATTACHMENT 2 CWSRF REPAYMENT ACCOUNTS CLEAN WATER STATE REVOLVING FUND

Account CWSRF Federal Repayment Fund CWSRF State-Match Repayment Fund CWSRF Closing Fee (Non-program Income) CWSRF Closing Fee (Program Income)
Total $

FY 2016

July 1, 2015 - June 30, 2016

Balance*

Investment Earnings Expected Uses of Funds

360,596,219.25

1,098,459.95 Project Funding

104,851,826.27

300,879.29 Project Funding

878,528.52

66,799.72 Water Quality Related Activities

22,197,839.69

3,224.26 Project Funding

488,524,413.73 $

1,469,363.22

State FY 2016 CWSRF Annual Report

10

ATTACHMENT 3 COMMUNITIES RECEIVING CWSRF FINANCIAL ASSISTANCE
CLEAN WATER STATE REVOLVING FUND FY 2016
July 1, 2015 - June 30, 2016

Community Atlanta, City of Baxley, City of Byron, City of Cleveland, City of Cochran, City of Cochran, City of Cornelia, City of Dawsonville, City of Elberton, City of Emerson, City of Fayetteville, City of Griffin, City of Hartwell, City of Helen, City of Millen, City of Pooler, City of Richmond Hill, City of Rockmart, City of Sandersville, City of Summerville, City of* Thomasville, City of Valdosta, City of* Wrightsville, City of The Conservation Fund The Nature Conservancy

Project Number CW15010 CW15011 CW14003 CW15013 CW15002 CW15009 CW15017 CW15008 CW14020 CW15005 CW14019 CW14013 CW15007 CW14018 CW15014 CW15020
CW10008(3) CW14015 CW15003 CW13005 CW14006 CW13006 CW14021 CW16009 LC2015001

Population 420,003 4,400 4,512 3,410 5,150 5,150 4,160 2,536 4,653 1,470 15,945 23,643 4,469 510 700 19,140 9,281 4,199 5,912 4,534 18,413 54,518 2,195 18,440 14,007

Zip Code 30318 31513 31008 30528 31014 31014 30531 30534 30635 30137 30214 30223 30643 30545 30442 31322 31324 30153 31082 30747 31792 31602 31096 30473 31305

*Indicates increases to exisitng loans.

Project Type
Secondary Treatment Advanced Treatment
I/I Correction New Collector Sewers
I/I Correction Sewer System Rehab Sewer System Rehab Secondary Treatment Advanced Treatment Secondary Treatment
Storm Sewers Secondary Treatment Secondary Treatment Secondary Treatment Secondary Treatment Advanced Treatment Secondary Treatment Secondary Treatment
New Interceptors Ground Water
Secondary Treatment Advanced Treatment
I/I Correction Silviculture (VII-C) Silviculture (VII-C)

Total Assistance Agreement
51,426,136.00 1,852,500.00 4,000,000.00 478,055.00 1,500,000.00 2,500,000.00 975,000.00 445,500.00 1,400,000.00 2,400,000.00 1,465,000.00
12,700,000.00 1,000,000.00 350,000.00 1,030,000.00 6,176,183.00
10,500,000.00 3,500,000.00 1,498,180.00 100,000.00 665,000.00 1,000,000.00 5,300,000.00
20,000,000.00 1,882,312.00
$ 134,143,866.00 $

Loan Amount 51,426,136.00
1,577,500.00 3,600,000.00
478,055.00 1,275,000.00 2,000,000.00
780,000.00 445,500.00 1,120,000.00 2,400,000.00 1,465,000.00 12,700,000.00 804,000.00 297,500.00 824,000.00 6,176,183.00 10,500,000.00 3,500,000.00 1,258,180.00 100,000.00 565,250.00 1,000,000.00 4,800,000.00 20,000,000.00 1,882,312.00 130,974,616.00

Principal Forgiveness
Amount -
275,000.00 400,000.00
225,000.00 500,000.00 195,000.00
280,000.00
196,000.00 52,500.00 206,000.00 240,000.00 99,750.00 500,000.00 $ 3,169,250.00

Green

Projected

Project

Binding

Initiation

Reserve Amount Commitment Date Operation Date

1/29/2016

11/1/2016

1,852,500.00

1/26/2016

3/1/2016

4,000,000.00

10/1/2015

12/1/2015

3/28/2016

2/1/2016

8/14/2015

12/1/2015

2/19/2016

6/1/2016

6/20/2016

5/1/2016

1/21/2016

9/1/2015

7/24/2015

6/1/2015

11/17/2015

10/1/2015

11/10/2015

11/1/2015

7/28/2015

11/1/2015

2/22/2016

3/1/2016

7/15/2015

12/1/2015

1,030,000.00

4/21/2016

5/1/2016

6/21/2016

4/1/2016

7/2/2015

10/1/2013

7/10/2015

6/1/2015

12/22/2015

5/1/2016

1/22/2016

9/1/2014

7/17/2015

7/1/2015

2/12/2016

5/1/2014

5,300,000.00

2/19/2016

3/1/2016

6/24/2016

6/30/2016

7/16/2015

7/16/2015

$ 12,182,500.00

Loan Interest
Rate 2.03% 1.03% 1.03% 2.03% 1.03% 1.03% 0.50% 2.03% 1.63% 2.71% 2.03% 1.71% 1.03% 0.50% 1.03% 1.09% 1.03% 2.03% 1.03% 0.50% 1.03% 1.40% 1.03% 5.00% 0.00%

State FY 2016 CWSRF Annual Report

11

ATTACHMENT 4 BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE
CLEAN WATER STATE REVOLVING FUND

FY 2016 July 1, 2015 - June 30, 2016

Project Type

Number of

Dollar

Assistance by

Number of

Dollar Value ($)

Projects*

Value ($)

Population Size New Assistance

Agreements

Secondary Treatment (I) Advanced Treatment (II) Infiltration/Inflow (IIIA) Sewer System Rehab (IIIB) New Collecter Sewers (IVA)

10

83,034,311 Less than 3,500:

3

10,428,683 3,500 to 9,999:

3

10,800,000 10,000 to 99,999:

2

3,475,000 100,000 & above:

1

478,055

Total

7 9 6 1 23 $

7,160,987 31,347,883 42,213,782 52,426,136 133,148,788.00

New Interceptors (IVB)

1

1,498,180

CSO Correction (V) Storm Sewers (VI) Recycled Water Distribution (X)

1

1,465,000

Agricultural Cropland (VII-A) Agricultural Animals (VII-B) Silviculture (VII-C) Urban, Excluding Decentralized Systems (VII-D) Groundwater, Unknown Source (VII-E)

2

21,882,312

100,000

Marinas (VII-F) Resource Extraction (VII-G)

Brownfields (VII-H) Storage Tank (VII-I) Sanitary Landfills (VII-J)

Hydromodification (VII-K) Individual/Decentralized Systems (VII-L) Unclassified

(12,753) 0

Total

23 $ 133,148,788.00

*Assistance Agreements may be counted in more than one category when they fund more than one category. **Calculations are consistent with the Drinking Water Benefits Reports database and net out funds returned by projects closed in state FY 2016.

State FY 2016 CWSRF Annual Report

12

ATTACHMENT 5 ADMINISTRATIVE EXPENSES BY CATEGORY
CLEAN WATER STATE REVOLVING FUND

FY 2016 July 1, 2015 - June 30, 2016

Object Category

4% - GEFA

Personnel Fringe Benefits

150,436.98 106,930.37

Travel Contractual Operating Expenses

16,925.08 192,949.92 110,936.64

Indirect Costs Shared Services

217,794.22 147,426.79

Total $ 943,400.00

4% - EPD

-

$

-

Program Income $115,375.28 $46,821.96
11,011.90 $324,232.72
67,071.32 $96,879.23 $84,096.12
$ 745,488.53

Non-Program Income 404,029.29 357.88 -
$ 404,387.17

Total Expenditures $ 265,812.26 $ 153,752.33 $ 27,936.98 $ 921,211.93 $ 178,365.84 $ 314,673.45 $ 231,522.91
$ 2,093,275.70

State FY 2016 CWSRF Annual Report

13

ATTACHMENT 6 DBE UTILIZATION CLEAN WATER STATE REVOLVING FUND
October 1, 2014 - September 30, 2015**

Summaries

Annual Dates

MBE ($)

WBE ($)

October 1, 2014 - September 30, 2015

2,122,477.65 3,965,578.15 $

TOTAL

$

2,122,477.65 $ 3,965,578.15 $

PERCENTAGE GOAL

4.00%

4.00%

PERCENTAGE ACTUAL*

2.40%

4.49%

*DBE information is provided on an annual basis to EPA

**Percentage Actual is calculated by dividing the DBE funds disbursed by the total CWSRF funds disbursed in the same period.

TOTAL ($) 6,088,055.80 6,088,055.80 8.00% 6.90%

State FY 2016 CWSRF Annual Report

14

Community Richmond Hill, City of Richmond Hill, City of Jesup, City of Moultrie, City of Thomasville, City of Thomasville, City of Sylvester, City of Alma, City of Dallas, City of Canton, City of Jones County LaGrange, City of LaGrange, City of Summerville, City of Valdosta, City of Madison, City of Dudley, City of Flowery Branch, City of Macon Water Authority Tallapoosa, City of Byron, City of Byron, City of Thomasville, City of Clayton, City of Braselton, Town of Bartow County BOC Chatsworth Water Works Commission Griffin, City of Rockmart, City of Sylvania, City of Helen, City of Fayetteville, City of Elberton, City of Cochran, City of Emerson, City of Atlanta, City of The Conservation Fund The Nature Conservancy

ATTACHMENT 7 DISBURSEMENT OF CWSRF FUNDS BY QUARTER
CLEAN WATER STATE REVOLVING FUND FY 2016
July 1, 2015 - June 30, 2016

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Project Number

7/2015 - 9/2015

10/2015 - 12/2015

1/2016 - 3/2016

4/2016 - 6/2016

CW10008(2) CW10008(3)

$4,451,982.83 $7,504,730.20

$2,515,831.01

$136,444.50

- $ $336,638.00 $

CW11001(2) CW11002 CW11004

$174,078.86 $19,134.33
$660,973.17

$319,375.15 $474,130.75

$1,278,809.33
$313,561.82

- $ $88,885.46 $ $541,433.40 $

CW11006 CW12002 CW12005

$251,620.28 $188,376.17
-

$153,748.11 $134,236.46
$52,413.00

$135,225.78 $79,668.26 -

- $ - $ - $

CW12011 CW12012 CW13002

$2,375,350.06 $792,177.78 $215,732.85

$720,790.83 $1,168,457.67
-

$1,444,712.94
-

$200,000.00 $ $534,707.04 $ $215,902.69 $

CW13003 CW13004 CW13005

$452,999.65 $196,021.02 $821,162.91

$737,492.44 -
$81,358.33

$493,367.48 -
$73,346.00

- $ - $ $85,488.19 $

CW13006 CW13007 CW13008

$4,449,611.78 -
$206,340.25

$5,924,383.20 -
$68,158.96

$2,193,489.42 $162,351.77 $3,195.00

$1,016,444.84 $ $527,300.04 $ $14,778.88 $

CW13009 CW13010 CW13011

$716,659.29 $5,000.00
$220,334.81

$332,006.17

-

$27,058.30 $

-

$693,553.79 $

-

- $

CW14002 CW14003 CW14006

-

-

$738,542.90

- $

-

-

-

53,592.60 $

-

$42,050.00

$249,056.45

$144,921.80 $

CW14007 CW14010 CW14011

$475,618.24
-

$492,097.72
-

$436,949.20 $137,479.40

$5,000.00 $ $369,772.18 $ $596,819.34 $

CW14012 CW14013 Cw14015

$1,354,642.20 -

$288,869.77 -

$606,753.30 $1,791,612.15

- $ $1,349,897.83 $
$860,734.16 $

CW14017 CW14018 CW14019

$787,552.35 -

$578,965.29 $69,960.83 -

$124,447.95 $141,608.22
-

$37,533.00 $ - $
$3,262.50 $

CW14020 CW15002 CW15005

-

$190,351.01

$511,463.58

$331,386.42 $

-

-

-

$100,518.25 $

-

-

$280,399.52

$206,486.53 $

CW15010 CW16009

-

-

$2,727,633.94

$2,864,268.42 $

-

-

-

$20,000,000.00 $

LC2015001

$1,882,312.00

-

-

- $

Total Disbursements $

28,202,411.03 $

14,344,676.70 $

14,060,118.91 $

31,206,383.66 $

Total 4,451,982.83
10,493,643.71 174,078.86
1,706,204.27 1,990,099.14
540,594.17 402,280.89
52,413.00 3,296,140.89 3,940,055.43
431,635.54 1,683,859.57
196,021.02 1,061,355.43 13,583,929.24
689,651.81 292,473.09 743,717.59 698,553.79 552,340.98 738,542.90
53,592.60 436,028.25
5,000.00 1,774,437.34
734,298.74 1,643,511.97 1,956,651.13 2,652,346.31 1,528,498.59
211,569.05 3,262.50
1,033,201.01 100,518.25 486,886.05
5,591,902.36 20,000,000.00
1,882,312.00 87,813,590.30

State FY 2016 CWSRF Annual Report

15

ATTACHMENT 8 COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS
CLEAN WATER STATE REVOLVING FUND FY 2016
July 1, 2015 - June 30, 2016

Projected Disbursements

Quarter 1

Quarter 2

Quarter 3

Quarter 4

7/2015 - 9/2015 10/2015 - 12/2015 1/2016 - 3/2016 4/2016 - 6/2016

Total

Projected FY 2016 CW Disbursements from 2014 IUP Projected FY 2016 CW Disbursements from 2015 IUP

19,881,205.00 4,163,968.00

16,061,880.00 18,245,737.00

5,450,880.00 8,569,736.00

- $ 41,393,965.00 13,437,269.00 $ 44,416,710.00

Total Projected Disbursements for FY 2016 $ 24,045,173.00 $ 34,307,617.00 $ 14,020,616.00 $ 13,437,269.00 $ 85,810,675.00

Actual FY 2016 CWSRF Disbursements

$ 28,202,411.03 $ 14,344,676.70 $ 14,060,118.91 $ 31,206,383.66 $ 87,813,590.30

Percent Disbursed of Projected

117%

42%

100%

232%

102%

State FY 2016 CWSRF Annual Report

16

Community Alma, City of Chatsworth Water Works Commission Flowery Branch, City of Griffin, City of Jesup, City of Moultrie, City of Richmond Hill, City of The Consevation Fund The Nature Conservancy

ATTACHMENT 9 PROJECTS INITIATING OPERATION CLEAN WATER STATE REVOLVING FUND
FY 2016 July 1, 2015 - June 30, 2016

Project Number CW12005

CWSRF Assistance Assistance Amount

Amount

Used

6,000,000.00

5,984,251.25

Percentage Used 100%

Binding Commitment Date
9/18/2013

Initiate Operation
Date
11/1/2015

CW14012 CW13009 CW14001 CW11001 (2) CW11005 CW1008 (3) CW16009 LC2015001
Total $

2,500,000.00 1,500,000.00
500,000.00 5,000,000.00 2,750,000.00 10,500,000.00 20,000,000.00 1,882,312.00 50,632,312.00 $

2,201,739.51 1,500,000.00
487,246.65 4,946,724.12 2,141,316.70 10,493,643.71 20,000,000.00 1,882,312.00 49,637,233.94

88% 100% 100% 99% 78% 100% 100% 100% 98%

5/18/2015 8/26/2014 8/26/2014 8/26/2013 8/28/2012 5/13/2016 6/24/2016 7/16/2016

11/1/2015 6/1/2016 11/1/2015 8/26/2015 8/26/2015 8/1/2015 6/30/2016 7/20/2016

Loan Interest
Rate 1.40%
1.03% 1.40% 2.31% 0.50% 2.10% 1.03% 0.50% 0.50%

State FY 2016 CWSRF Annual Report

17