STATE OF GEORGIA DRINKING WATER STATE REVOLVING FUND PROGRAM STATE FY 2012 ANNUAL REPORT Working together for Safe Drinking Water for all Georgians Prepared by the GEORGIA ENVIRONMENTAL FINANCE AUTHORITY For the U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION IV September 30, 2012 PLEASE NOTE that this report does not constitute nor is it suitable for use as an official financial statement. This report was not prepared by an independent auditor or accountant, and is provided for informational purposes only. DRINKING WATER STATE REVOLVING FUND ANNUAL REPORT TABLE OF CONTENTS STATE FY 2012 INTRODUCTION ............................................................................................................................................................ 1 EXECUTIVE SUMMARY .............................................................................................................................................. 1 ADDITIONAL SUBSIDIZATION PROJECTS............................................................................................................ 2 CAMILLA (DWSRF 11-016)............................................................................................................................................ 2 JONES COUNTY (DWSRF 09-030) .................................................................................................................................. 3 MARTIN (DWSRF 11-004) ............................................................................................................................................. 3 WRENS (DWSRF 10-017)............................................................................................................................................... 3 GREEN PROJECTS ........................................................................................................................................................ 3 BOSTON (DWSRF 11-011) ............................................................................................................................................. 3 BRUNSWICK-GLYNN COUNTY JOINT WATER AND SEWER COMMISSION (DWSRF 10-024)............................................ 3 EATONTON-PUTNAM WATER AND SEWER AUTHORITY (DWSRF 11-010) ..................................................................... 4 DONALSONVILLE (DWSRF 11-014) ............................................................................................................................... 4 LEESBURG (DWSRF 11-015).......................................................................................................................................... 4 ROYSTON (DWSRF 10-019) ........................................................................................................................................... 4 UNIFIED GOVERNMENT OF WEBSTER COUNTY (DWSRF 11-006) .................................................................................. 4 UNIFIED GOVERNMENT OF CUSSETA-CHATTAHOOCHEE COUNTY (DWSRF 10-027) ..................................................... 4 WALTHOURVILLE (DWSRF 10-003)............................................................................................................................... 5 BASE DWSRF PROJECTS ............................................................................................................................................ 5 CHATTOOGA COUNTY (DWSRF 10-002)........................................................................................................................ 5 DILLARD (DWSRF 10-003) ............................................................................................................................................ 5 FRANKLIN COUNTY (DWSRF 09-043)............................................................................................................................ 5 LOUISVILLE (DWSRF 10-009)........................................................................................................................................ 5 MEETING IUP GOALS AND OBJECTIVES .............................................................................................................. 6 DWSRF LOAN DISBURSEMENTS .............................................................................................................................. 6 DWSRF STATE MATCH ............................................................................................................................................... 7 DWSRF LOAN REPAYMENTS .................................................................................................................................... 7 ASSURANCES AND SPECIFIC PROPOSALS ........................................................................................................... 7 PROGRAM ADMINISTRATION (4 PERCENT) ........................................................................................................ 8 SMALL SYSTEM TECHNICAL ASSISTANCE (2 PERCENT)................................................................................ 9 ASSISTANCE TO STATE PROGRAMS (10 PERCENT) ........................................................................................ 10 PUBLIC WATER SYSTEM SUPERVISION OPERATOR TRAINING ...............................................................10 CROSS CONNECTION CONTROL .......................................................................................................................11 IMPLEMENTATION OF EPD'S CRYPTOSPORIDIUM STRATEGY ...............................................................12 CAPACITY DEVELOPMENT PROGRAM ............................................................................................................12 SOURCE WATER / GROUND WATER INVESTIGATIONS ...............................................................................14 INFORMATION MANAGEMENT.........................................................................................................................15 COMPREHENSIVE STATEWIDE WATER MANAGEMENT PLANNING ......................................................16 GEORGIA ASSOCIATION OF WATER PROFESSIONALS (GAWP)................................................................17 LOCAL ASSISTANCE AND OTHER STATE PROGRAMS (15 PERCENT) ....................................................... 17 15 PERCENT CAPACITY DEVELOPMENT PROGRAM....................................................................................17 WELLHEAD PROTECTION ..................................................................................................................................18 GEORGIA RURAL WATER ASSOCIATION (GRWA) .........................................................................................19 GEORGIA WATER AND WASTEWATER INSTITUTE (GWWI) .......................................................................19 LIST OF ATTACHMENTS ATTACHMENT 1: SOURCES AND USES OF FUNDS BY QUARTER ..........................................................................................21 ATTACHMENT 2: DWSRF REPAYMENT ACCOUNTS ...........................................................................................................21 ATTACHMENT 3: COMMUNITIES RECEIVING DWSRF FINANCIAL ASSISTANCE .................................................................22 ATTACHMENT 4: BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE ............................................23 ATTACHMENT 5: DISBURSEMENT OF FUNDS BY QUARTER.................................................................................................24 ATTACHMENT 6: COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS ...........................................................25 ATTACHMENT 7: PROJECTS INITIATING OPERATION ..........................................................................................................26 ATTACHMENT 8: ADMINISTRATIVE & SET-ASIDE EXPENSES BY CATEGORY......................................................................27 ATTACHMENT 9: DBE UTILIZATION ..................................................................................................................................28 ATTACHMENT 10: DWSRF CAPITALIZATION GRANTS AVAILABLE & SPENT ....................................................................29 STATE OF GEORGIA DRINKING WATER STATE REVOLVING FUND PROGRAM STATE FISCAL YEAR 2012 ANNUAL REPORT INTRODUCTION The Drinking Water State Revolving Fund (DWSRF) program provides assistance to public water systems for capital improvement projects in Georgia in order to protect public health through regulatory compliance, to ensure water supply, and to promote the aims of the federal Safe Drinking Water Act of 1974, as amended. The 1996 Amendments to the Safe Drinking Water Act (SDWA) (Pub. L. 104-182) authorized the Administrator of the U.S. Environmental Protection Agency (EPA) to establish a DWSRF loan program to assist states in financing local public water system infrastructure needed to achieve or maintain compliance with SDWA requirements in order to protect public health. In accordance with the DWSRF Program Guidelines published by the EPA Office of Water (816-R-97-005) in February 1997, each capitalization grant recipient must submit at least a biennial report on the activities of the DWSRF Program. This state FY 2012, DWSRF Program Annual Report covers both the program and set-aside activities, and compares these activities to the activities proposed in the 2011 Intended Use Plan (IUP). 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 Governor of Georgia appoints eight members to the GEFA board of directors and three ex-officio members are designated by the Authority's enabling legislation. The Georgia Environmental Protection Division (EPD) provides construction management and professional services for the DWSRF Program. These services 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) and Categorical Exclusions (CE); construction management; Disadvantaged Business Enterprise (DBE) requirements; project inspections; assistance with the National Information Management System (NIMS) and administration of EPD's set-aside activities as well as certain sections of the Drinking Water Benefits reporting database. EXECUTIVE SUMMARY In July of 2011, GEFA submitted the 2011 grant application and IUP. The 2011 grant was awarded in December 2011 for $27,864,254 including the required state match. Funds received to date by Georgia's DWSRF Program from EPA total $335,904,907 including net funds transferred between the CWSRF and the DWSRF Programs. Georgia's required state match to date totals $58,330,919 for a grand total of $394,235,826. State FY 2012 DWSRF Annual Report 1 Attachment 1 displays the total sources of funds by quarter during state FY 2012 such as 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. Attachment 2 displays the balances within these accounts as of June 30, 2012. The DWSRF Program executed seventeen new assistant agreements in state FY 2012 for a total of $14,498,683. This total assistance amount includes $10,198,365 in low-interest loans, $3,050,318 in principal forgiveness and $1,250,000 in disadvantaged community subsidy funds. Attachment 3 shows that the DWSRF program provided $4,825,473 to projects that met the qualifications of the Green Project Reserve. Attachment 4 displays information about these seventeen projects in the format of the National Information Management System (NIMS). The DWSRF Program provided $8,757,373 of the $14,498,683 to small water systems servicing less than 10,000 in population while $6,184,373 was provided to small water systems servicing less than 3,300 in population. Lastly, GEFA and EPD have entered all necessary information into the Drinking Water Benefits reporting database for all projects funded through state FY 2012. All projects listed below were either on the Comprehensive List or Fundable List of Anticipated Loan Recipients and are eligible public water systems. If the project was not the highest priority project at the time, it bypassed those higher priority projects according to the IUP bypass procedures. All commitments were made to qualified local governments or water and sewerage authorities according to the requirements of the Georgia Department of Community Affairs (DCA) and all possess a verified Service Delivery Strategy approved by DCA. Additionally, all loan recipients have the technical, managerial, and financial capability to operate a water system. Each project was also reviewed in accordance with the EPA-approved State Environmental Review Process (SERP) and was issued a Notice of No Significant Impact (NONSI) or a Categorical Exclusion (CE). Below is a short write-up for each of the projects funded in state FY 2012. ADDITIONAL SUBSIDIZATION PROJECTS Camilla (DWSRF 11-016) On April 2, 2012, Camilla signed a $1,945,900 assistance agreement including $500,000 in principal forgiveness to install approximately 11,000 linear feet of 6-inch PVC water main, fire hydrants and all related fittings to replace existing asbestos-cement and castiron piping. The project will also replace approximately 2,400 service meters with Automated Meter Reader remote read meters and install backflow prevention devices where needed. Camilla will also purchase a portable generator to provide emergency power at wells, install fencing around the Chili Street elevated storage tank and replace the existing chlorination equipment at all five wells. As of the end of state FY12, Camilla had not drawn any of the funds. State FY 2012 DWSRF Annual Report 2 Jones County (DWSRF 09-030) On October 6, 2011, Jones County signed a $1,499,520 assistance agreement including $449,856 in principal forgiveness to construct a 2 million gallon ground storage tank, booster pump station and SCADA equipment. As of the end of state FY12, the Jones County had not drawn any of the funds. Martin (DWSRF 11-004) On April 20, 2012, Martin signed a $1,000,000 assistance agreement including $300,000 in principal forgiveness to make supply improvements which include: installing an interconnection to the city of Lavonia & Franklin County; developing and renovating wells; repairing, painting and adding telemetry to existing elevated storage tanks; making distribution improvements such as water main replacements and adding loops; and other improvements including emergency back-up generators. As of the end of state FY12, Martin had drawn $421,927.61 of this commitment. Wrens (DWSRF 10-017) On May 18, 2012, Wrens signed a $810,000 assistance agreement including $243,000 in principal forgiveness to install a booster pump station and water lines from the city of Wrens to water infrastructure currently being constructed at Kings Mill Industrial Park. This project is needed to improve the quality, reliability and redundancy of the city of Wrens's water system. As of the end of state FY12, Wrens had not drawn any of the funds. GREEN PROJECTS Boston (DWSRF 11-011) On April 2, 2012, Boston signed a $331,408 assistance agreement including $99,422 in principal forgiveness to implement an automated meter reading system to read the city's 560 water meters. With the use of handheld units and software, Boston will be able to not only read meters but also provide customers with real time usage data to assist customers in leak identification and for more accurate measurement of water usage. In addition to the water efficiency benefits, Boston anticipates decreased water production costs and decreased fuel costs. As of the end of state FY12, Boston had drawn $24,855.60 of this commitment. Brunswick-Glynn County Joint Water and Sewer Commission (DWSRF 10-024) On July 22, 2011, the Brunswick-Glynn County Joint Water and Sewer Commission signed a $100,000 assistance agreement including $50,000 in principal forgiveness to replace two old and deteriorated cast iron segments of its water distribution system with new PVC pipe. This project will also purchase state of the art leak detection equipment to reduce the amount of unaccounted for water through a system-wide leak detection and elimination program. Current estimates of unaccounted for water are: City system 10.3%, St. Simons Island system 17.1%, North and South Mainland system 20%. As of the end of state FY12, the Brunswick-Glynn County Joint Water and Sewer Commission had drawn all of the funds. State FY 2012 DWSRF Annual Report 3 Eatonton-Putnam Water and Sewer Authority (DWSRF 11-010) On June 22, 2012, the Eatonton-Putnam Water and Sewer Authority signed a $1,745,000 assistance agreement including $500,000 in principal forgiveness to replace old water mains, valves, hydrants, service lines, meters and other appurtenances. Leaks are widespread within the system creating a significant maintenance problem for the Authority. New 6-inch, 8-inch and 12-inch pipe along with fire protection will be provided on those streets where fire protection is not currently available. The project will install approximately 3.5 miles of water line. As of the end of state FY12, the EatontonPutnam Water and Sewer Authority had not drawn any of this commitment. Donalsonville (DWSRF 11-014) On March 20, 2012, Donalsonville signed a $307,000 assistance agreement to install radio read equipment on all water meters in the city and to purchase hardware and software to support the automatic meter reading process. As of the end of state FY12, Donalsonville had not drawn any of the funds. Leesburg (DWSRF 11-015) On April 2, 2012, Leesburg signed a $651,480 assistance agreement including $195,444 in principal forgiveness to replace aging and inaccurate water meters with new Automated Meter Reading (AMR) meters along with other related hardware and software necessary to allow the AMR system to function properly. As of the end of state FY12, Leesburg had drawn $287,905.82 of this commitment. Royston (DWSRF 10-019) On May 22, 2012, Royston signed a $461,985 assistance agreement including $138,596 in principal forgiveness to replace existing water meters with updated Positive Displacement Cold Water Meters or Master Meter Bottom Load Multijet meters. As of the end of state FY12, Royston had not drawn any of this commitment. Unified Government of Webster County (DWSRF 11-006) On April 2, 2012, the Unified Government of Webster County signed a $201,500 assistance agreement including $60,450 in principal forgiveness to implement an automated meter reading (AMR) system to read the county's water meters as well as replace all aging and inaccurate meters with new AMR compatible meters. Using the system will allow the county to provide customers with real time data to assist customers in leak detection. This project will lower production costs and reduce fuel and labor costs required for meter reading. As of the end of state FY12, the Unified Government of Webster County had not drawn any of the funds. Unified Government of Cusseta-Chattahoochee County (DWSRF 10-027) On October 3, 2011, the Unified Government of Cusseta-Chattahoochee County signed a $400,000 assistance agreement including $200,000 in principal forgiveness to replace or rehabilitate distribution lines including disconnecting and abandoning old water lines in an effort to reduce water loss because of water line leakage. As of the end of state FY12, the Unified Government of Cusseta-Chattahoochee County had drawn $211,084.10 of the funds. State FY 2012 DWSRF Annual Report 4 Walthourville (DWSRF 10-003) On March 12, 2012, Walthourville signed a $627,100 assistance agreement including $313,550 in principal forgiveness to replace old water meters in the distribution system with radio-read type meters. The project will replace approximately 1,700 residential meters and approximately 12 larger meters. As of the end of state FY12, Walthourville had drawn $447,791.20 of this commitment. BASE DWSRF PROJECTS Chattooga County (DWSRF 10-002) On September 15, 2011, Chattooga County signed a $1,314,500 assistance agreement to add a new booster pump station and install 6-inch pipe with the related appurtenances to provide safe public drinking water service to an additional 79 customers in the Cloudland service area. As of the end of state FY12, Chattooga County had drawn $905,247.54 of this commitment. Dillard (DWSRF 10-003) On December 7, 2011, Dillard signed a $750,000 assistance agreement including $250,000 in disadvantaged community subsidy funds to install approximately 7,580 linear feet (LF) of 10-inch waterline, 2,800 LF of 8-inch waterline and 1,000 LF of 6-inch waterline which will extend along US 441 to GA 246. The city of Dillard currently has no water customers. The city does have 120 sewer customers and this project is designed to connect these 120 sewer customers to the new water system. As of the end of state FY12, Dillard had not drawn any of this commitment. Franklin County (DWSRF 09-043) On August 9, 2011, Franklin County signed a $1,082,290 assistance agreement including $500,000 in disadvantaged community subsidy to install approximately 28,250 linear feet of 16-inch water main within the existing right-of-way of State Route 320 from the existing storage tank at State Route 106 to New Bethel Road. This project will connect residents onto the Franklin County water system and remove residents from individual wells that are contaminated with high levels of iron and manganese. As of the end of state FY12, Franklin County had drawn all of the funds. Louisville (DWSRF 10-009) On July 11, 2011, Louisville signed a $1,271,000 assistance agreement including $500,000 in disadvantaged community subsidy funds to drill a new well and replace the two transfer pumps inside the raw water clearwell, three service pumps inside the filter building and modifications to the filter system and piping. As of the end of state FY12, Louisville had drawn $406,098.01 of this commitment. State FY 2012 DWSRF Annual Report 5 MEETING IUP GOALS AND OBJECTIVES The 2011 DWSRF IUP listed three goals of the program. The first goal listed in the 2010 IUP was: The Drinking Water SRF hopes to support the implementation of water conservation initiatives across the state to assist in the state-wide effect to protect the state's water supply resources. In support of this effort, the GEFA board of directors passed a 1 percent interest rate reduction on all water conservation projects funded through the DWSRF program. GEFA hopes to promote this additional interest rate incentive in an effort to further the state-wide initiatives. Status: The 1% interest rate reduction for water conservation projects was put into place in state FY 2012 and many communities have taken advantage of this additional benefit. This benefit will continue in the future and GEFA will continue to market this incentive throughout the state. The second goal listed in the 2011 IUP was: The ARRA Drinking Water grant is approximately 94% spent. The grant has seen amazing activity and the Drinking Water program will strive to spend this grant to 100% by September 30, 2011. GEFA hopes to reduce the oversight burden of the program by spending 100% of the ARRA funds by September 30, 2011. Status: The DWSRF-ARRA grant was closed in April 2012. The third goal listed in the 2011 IUP was: GEFA reserved the entire 2% set-aside from the 2010 grant to develop a leak detection program for small systems. GEFA has continued to develop this initiative with EPD and plans to roll out a combined program which will provide water loss audit assistance to small local governments as well as a leak detection grant program to small local governments. The state has defined the systems which fall into this category as systems between 3,300 and 10,000 in population. In the fall of 2011 GEFA plans to makes the first water loss audit grants to water systems. Status: This new program has been initiated and is currently underway and providing technical assistance to small water systems with respect to water loss audits. GEFA has seen great success with this training and the DWSRF program is gearing up to provide more technical assistance for the projects that result from the water loss audit process. DWSRF LOAN DISBURSEMENTS The DWSRF Program disbursed funds to 45 active projects during state FY 2012. Attachment 5 shows the projects which received funds by quarter in state FY 2012. The DWSRF State FY 2012 DWSRF Annual Report 6 Program disbursed a total of $27,447,522.97 in state FY 2012. Many of these projects received a mix of ARRA funds, base DWSRF funds and state match funds. Attachment 6 compares the projected disbursement schedules indicated within the 2010 and 2011 IUPs for state FY 2012 against the actual disbursements made in state FY 2012. The DWSRF Program disbursed 71 percent of what it projected it would disburse in state FY 2012. DWSRF STATE MATCH During state FY 2012, all projects which received federal capitalization grant dollars were funded with 80 percent federal dollars and 20 percent state match dollars. This disbursement scenario will inevitably result in an "under-matched" situation as the 80 percent/20 percent match split provides for a lower state match disbursement percent than is required for the DWSRF program. At the end of each state fiscal year, GEFA deposits an amount into the DWSRF program to "true-up" this under matched amount, thus resulting in the appropriate state match amount. This process guarantees that the Drinking Water SRF program is appropriately matched at the end of each state fiscal year. GEFA has re-visited this state match process and is currently implementing a new process whereby state match funds are disbursed before federal funds. With the implementation of a new loan servicing software, this new approach will closely align with EPA's suggested methodology. Attachment 1 shows the amount of state match funds provided during state FY 2012 by quarter. DWSRF LOAN REPAYMENTS In state FY 2012, 22 projects initiated operation under the DWSRF Program amounting to a $41,523,400 commitment of DWSRF funds (Attachment 7). The total dollar value disbursed to these 22 projects initiating operation within state FY 2012 was $38,495,561 which equates to 93 percent of the contracted amount. All of the 22 projects completed the construction phase and entered into the repayment phase of the DWSRF loan process. To maintain the revolving nature of the DWSRF fund, all repayments including the principal and interest and fees are credited to the DWSRF Program. The total amount of repayments credited to the DWSRF fund from federal and state match projects along with the interest earnings from these accounts can be seen in Attachment 1. ASSURANCES AND SPECIFIC PROPOSALS The DWSRF Program adheres to all the certifications covered in The SDWA 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. DWSRF-An Instrumentality of the State 1. State Law 2. Interagency Agreements C. Capitalization Grant D. Payment Schedule State FY 2012 DWSRF Annual Report 7 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. Environmental Review/NEPA-like Process P. Maintain the Fund Q. Perpetuity R. Types of Assistance S. Priority List T. Annual Audit U. Annual Federal Oversight Review and Technical Assistance V. Dispute Resolution A copy of the state FY 2012 audited financial is provided under separate cover. PROGRAM ADMINISTRATION (4 PERCENT) In state FY12, GEFA and EPD spent $897,920 on program administration. Administrative and programmatic services provided by EPD include: project reviews; planning; reviewing and uploading needs surveys; project ranking; issuing NONSIs, Categorical Exclusions (CE); project construction management and project inspections (Attachment 8). During state FY 2012, the Construction Management Unit (CMU) of EPD processed 201 DWSRF project draw requests and completed 315 DWSRF inspections. As a part of GEFA's loan agreement, all loan recipients are required to encourage the participation of small, minority and women owned businesses in all project subcontracts. The state's DWSRF Program percentage goal through September 30, 2013 is 4.0 percent for Minority Business Enterprises (MBE) and 4.0 percent for Women Business Enterprises (WBE). A summary of the DBE utilization is displayed in Attachment 9. Due to the reporting change of the DBE numbers to EPA from quarterly reporting to semi-annually reporting, the data provided in Attachment 9 is for the reporting period of April 1, 2011 March 31, 2012. There has been a tremendous effort on the part on the Environmental Protection Division (EPD) 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 Clean Water and Drinking Water SRF programs. DBE's are alerted of GEFA's approved projects as soon as they appear in the transmittal log so that subcontractors can inquire about and prepare for these projects prior to bid date. Subcontractors are additionally being urged to pursue EPA/DOT/SBA State FY 2012 DWSRF Annual Report 8 certification and EPD has made itself available to answer questions and assist subcontractors in the application process. EPD also keeps an in-house bidders list of certified DBE subcontractors who have worked on previous projects to be supplied to and utilized by prime contractors that are seeking qualified DBEs. In considering whether firms could subcontract with DBEs, EPD encourages prime contractors to follow the Six Good Faith Efforts to solicit the services of minority and women-owned businesses and will withhold approval for a project 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 well-written solicitation letter in efforts to eliminate generic newspaper advertisements and poorly written letters. Prime contractors are further supplied with a link for the available DBEs on the Georgia DOT website and the Bidders list that is kept-in house, as well as names/addresses/numbers of contacts in the Small Business Administration, the Minority Business Development Agency, the Department of Commerce and other related agencies and associations throughout the state. Guidance is also provided in all related construction contracts to encourage prime contractors to divide work when feasible. SMALL SYSTEM TECHNICAL ASSISTANCE (2 PERCENT) During state FY 2012, Georgia spent $268,500 via a contract with the Georgia Rural Water Association (GWRA) to provide "circuit rider" type technical activities including technical and managerial assistance and Synthetic Organic Compound (SOC) sampling. Under the provisions of this contract, GWRA is required to provide up to 10 percent of the visits within 48 hours of notification by EPD in order to quickly address problems posing an immediate threat to public health. The visits made by the GRWA technicians fall into the following broad categories: actual compliance, potential compliance, water conservation, managerial, finance, operational maintenance, and water treatment. The variety of technical assistance provided by the circuitrider technicians includes, but is not limited to, rate studies, water audits and leak detection surveys, pipe and valve location services, infrastructure assessments, source water protection, operation and maintenance programs, on-site operational assistance, troubleshooting and problem-solving, fluoridation equipment evaluations and inspections, and the identification of financing alternatives. For the contract period from July 1, 2011 to June 30, 2012, a total of 500 face-to-face contact visits were made to systems requiring technical assistance. This contract also requires GRWA to perform SOC sampling for public water systems throughout the state on a scheduled basis. During state FY 2012, 90 systems were visited in order to collect and submit the required SOC samples to the EPD laboratory. In state FY 2012, the DWSRF program signed a contract with Cavanaugh and Associates to provide water loss audit technical assistance training to small water systems throughout Georgia. During the last few months of state FY 2012, the team from Cavanaugh and Associates held a webcast to kick off the training and scheduled the first round of trainings which will State FY 2012 DWSRF Annual Report 9 consist of in-person trainings and conference calls leading up to the submission of a water loss audit by the March 1, 2013 deadline. ASSISTANCE TO STATE PROGRAMS (10 PERCENT) States are allowed to use up to 10% of its capitalization grant to provide funding for certain activities that provide "Assistance to State Programs." These activities include: administration of the Public Water System Supervision Program (PWSS); administration and provision of technical assistance through source water assessment programs; implementation of capacity development strategy; cross-connection control device tester certification program and water conservation and efficiency and continued state wide water planning; and, implementation of EPD's Cryptosporidium Strategy. The following is a summary of activities funded under the 10% set-aside to assist in the implementation of the requirements of the federal Safe Drinking Water Act (SDWA). PUBLIC WATER SYSTEM SUPERVISION OPERATOR TRAINING The State of Georgia obtained EPA approval for its operator certification program on May 1, 2001, in compliance with Section 1419 of the SDWA, as amended. Under this program, Georgia must prepare an annual report in accordance with the requirements of the "Final Additions to the Final Guidelines for the Certification and Recertification of the Operators of Community and Non-transient Non-community Public Water Systems." This document was published in the Federal Register on April 18, 2001, and was submitted to EPA to demonstrate that the State of Georgia is adequately implementing its operator certification program. In addition, Section 1419(b) of the SDWA requires the EPA to withhold 20 percent of funds that a State is otherwise entitled to receive under Section 1452 of the SDWA unless a State has adopted and is implementing a program that meets the requirements of EPA's operator certification guidelines. Georgia's operator certification program was revised to include an exam for Class IV Water Operators in accordance with federal guidelines. The exam requirement for prospective Class IV Water Operators helps to ensure that these licensed operators will have the required knowledge and ability to successfully operate and maintain groundwater systems that serve populations of 25 to 999 people. The exams for all operator classification levels are developed and validated by the Association of Boards of Certification. In its capacity development strategy program, the EPD has utilized many resources and has placed a very high priority on operator training and certification. EPD realizes the importance of experienced, certified operators having the necessary knowledge and dedication to properly operate and maintain a public water system. The following graphical representation depicts the number of certified operators by classification level for the reporting period 2001 - 2011. The data is also used to establish a baseline for EPD to measure progress in operator training and certification. State FY 2012 DWSRF Annual Report 10 Numver of Certified Operators Table 1 Certified Operators , 2001 - 2011 1600 1400 1200 1000 800 600 400 200 0 Class I Class II Class III Class IV Distribution Lab Operator Classifications 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 CROSS CONNECTION CONTROL Activities under Cross Connection Control include coordination with the Georgia Association of Water Professionals (GAWP) for the purpose of establishing a State certification and re-certification program for backflow assembly testers using the American Backflow Prevention Association's nationally recognized certification program. EPD has implemented a requirement that any public water system must exclusively use backflow prevention assembly testers that currently hold a valid certification from a tester certification program recognized by the EPD to test backflow prevention devices connected to the public water system. GAWP has worked under contract to assist EPD in establishing this Statewide Backflow-Prevention Tester Certification Program. GAWP has been designated by EPD to administer a certification program for the State of Georgia utilizing exams provided by the Association of Boards of Certification. In addition, the American Backflow Prevention Association, the American Society of Sanitary Engineering, and the University of Florida/TREEO Center have been approved as official certification programs and are authorized to provide certification exams to GAWP to be used in this process. A total of 1,340 backflow prevention professionals have been certified since the beginning of the program. State FY 2012 DWSRF Annual Report 11 IMPLEMENTATION OF EPD'S CRYPTOSPORIDIUM STRATEGY During state FY 2012, EPD utilized 10 percent set-aside funding to continue the implementation of its Cryptosporidium Strategy program, including the following activities: 1. Continued implementation of the federal Surface Water Treatment Rule (SWTR); 2. Implementation activities associated with the Interim Enhanced Surface Water Treatment Rule (IESWTR) and the Stage 1, Disinfectant/ Disinfection By-Products Rule (Stage 1 D/DBPR) for surface water systems serving over 10,000 persons; 3. Activities required under the Long-Term 1 Enhanced Surface Water Treatment Rule (LT1ESWTR) for surface water systems serving less than 10,000 persons and the Stage 1 D/DBPR for the remainder of surface water systems that serve less than 10,000 people and all groundwater systems; and, 4. Activities required under the Long-Term 2 Enhanced Surface Water Treatment Rule (LT2ESWTR) for all surface water systems and the Stage 2 D/DBPR for all surface and all groundwater systems. During this reporting period, EPD continued to perform source water monitoring at the surface water supply intakes for Cryptosporidium, E. coli and turbidity, as required by early implementation requirements of the LT2ESWTR. The Cryptosporidium monitoring is conducted monthly for 24 consecutive months. At the end of the monitoring period, EPD determines whether any of the systems will be required to perform additional treatment to inactivate and/or remove existing pathogens based on the Cryptosporidium concentration of the source water (bin classification). The last systems to commence this monitoring initiated their first round of monitoring in January 2010. Twenty-seven (27) other Subpart H systems began their second round of monitoring in July 2011. Other important aspects of EPD's Cryptosporidium Strategy include conducting sanitary surveys, conducting system inspections and providing on-site technical assistance. EPD regularly conducts scheduled sanitary surveys for all public water systems in Georgia. The primary purpose of these sanitary surveys is to identify and resolve problems that may potentially pose a threat to public health. The sanitary surveys address eight components required by the EPA including the following: water source, treatment, distribution system, finished water storage, pumps, pump facilities and controls, monitoring and reporting and data verification, system management and operation, and operator compliance with state requirements. The sanitary survey report provides official, written documentation to water system officials outlining the improvements that need to be made to their system in order to protect public health and to improve the overall capacity of the water system. CAPACITY DEVELOPMENT PROGRAM During state FY 2012, EPD utilized funds from the 10 percent set-aside for activities associated with the implementation of Georgia's capacity development strategy, which was approved by EPA on September 21, 2000. As an important part of Georgia's capacity development strategy, EPD continues to require all new community and non-transient noncommunity public water systems, as well as those undergoing ownership changes, to develop a State FY 2012 DWSRF Annual Report 12 business plan in order to demonstrate adequate managerial and financial capacity. The business plan, in most cases, is required prior to issuance of the initial permit to operate or prior to the transfer of the existing operating permit. As of June 30, 2012, a total of 740 business plans have been submitted to EPD. During state FY 2012, 46 business plans were received from 19 new public water systems and 27 existing water systems. During the same reporting period, five other public water systems were given additional time to prepare business plans as part of a compliance schedule in their permit to operate a public system. In addition to this requirement, all surface water and Ground Water Under Direct Influence (GWUDI) treatment plants are required to develop Operation & Maintenance Plans (O&M Plans), in accordance with the latest edition of the Division's "Guidance Manual for Preparing Public Water Supply O&M Plans." The O&M Plan is required prior to the start-up and permitting of a new surface water plant or GWUDI treatment plant. In addition, if not already on file with EPD, existing surface water and GWUDI systems are required to prepare an O&M Plan within the compliance schedule established for this deficiency in the sanitary survey. Groundwater systems with significant violations must develop business plans and/or O&M Plans, as required by EPD. These actions are intended to help both new and existing systems to stay in compliance with existing and future regulations. As of June 30, 2012, a total of 64 surface water or GWUDI systems have submitted detailed O&M Plans. EPD continues to utilize informal and formal enforcement actions, such as written Notices of Violations (NOVs), Consent Orders and Administrative Orders to promote compliance with federal and state drinking water regulations. Enforcement is an important tool in dealing with public water systems that lack adequate capacity. EPD's stringent enforcement program has been a significant factor in encouraging private-public water systems with limited capacity to physically merge or consolidate with local government-owned water systems or water authorities. The figure below provides a graphic representation of the number of consolidations for public water systems in Georgia. State FY 2012 DWSRF Annual Report 13 Consolidations with governmentally owned water systems or water authorities. 80 # Consolidations 60 50 48 40 40 28 29 31 30 23 22 21 22 24 20 11 12 5 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Year The continued use of negotiated settlements in the form of Consent Orders seems to be the most effective enforcement mechanism, rather than mandatory fines or civil penalties. Consent Orders allow EPD the flexibility to set appropriate penalties based upon the level of deficiencies and the negotiated plan to correct individual system violations in a timely manner. The figure below provides a graphic representation of the number of enforcement orders issued for violations of the SDWA and/or the permit to operate a public water system. # Enforcement Orders Enforcement Orders for public water systems. 160 120 80 99 104 80 112 79 83 76 77 91 80 62 83 69 35 40 28 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Year SOURCE WATER / GROUND WATER INVESTIGATIONS During state FY 2012, EPD performed activities associated with the implementation of Georgia's Source Water Assessment and Protection Plan. Funds utilized under this category support salary, travel, professional development and associated miscellaneous expenses for two positions: one Geographic Information Systems (GIS) Specialist 3 and one Environmental Specialist 3. The GIS Specialist 3 administered the GIS PWS database. This included coordinating updates to PWS withdrawal sources: surface water intakes, wells, and springs. Also included were updates to and QA/QC reviews of water-supply watersheds for PWS sources and associated State FY 2012 DWSRF Annual Report 14 Source Water Assessment Plan (SWAP) management zones. Information from the Wellhead Protection Program (WHPP) was also incorporated into this database consisting of: spatial and tabular data derived from WHPP plans, karst PWS source delineations, and potential pollution sources. The GIS Specialist 3 also coordinated GIS tasks for Regional Water Planning activities and the ongoing drought. This included both spatial analysis and cartographic production in support of the EPD Director's Office and various programs within the Watershed Protection Branch. For privately owned groundwater systems, SWAPs are being completed by the Environmental Specialist 3 as well as other in-house staff. During state FY 2012, 156 SWAPs were completed for community water systems, 14 SWAPs for non-transient non-community water systems, and 58 SWAPs for transient non-community water systems. SWAPs are one way EPD helps to ensure safe drinking water for not only large but small public and private water systems around the state. INFORMATION MANAGEMENT During state FY 2012, EPD utilized the 10 percent set-aside for activities associated with the Information Management Program. The Information Management pilot project was created to improve the tracking and reporting of public water system data, to automate the sample scheduling for public water systems' SDWA monitoring requirements, and to automate compliance determinations. This program has enabled EPD to improve the accuracy of its data as well as the overall tracking system, which has led to improved compliance by the water systems. EPD's Data Management Specialist assists in migration of laboratory data into the Division's SDWIS/State information management system. EPD continues to work on the following tasks: 1. The EPD Drinking Water Program has collaborated with EPA Region 4, EPA Contractor (SAIC), and the DNR IT Department to upgrade the current version of SDWIS/State (version 8) to the new web-release version SDWIS/State version 3.01. EPD staff continues to work to utilize all aspects of the program, including sample scheduling, automated compliance determinations, and enforcement actions. 2. EPD has been involved in developing an application required under the federal CROMERR regulations. EPD submitted the application by the January 2010 deadline and is currently awaiting response back from EPA. 3. EPD continues to use the web-based surface water treatment plant monthly operating reporting system developed for data management. The project allows the surface water systems to enter their own data and EPD determines compliance based the official data submitted by the operator-in-responsible-charge. A groundwater version of the webbased monthly operating reporting system may be developed in the future to accommodate the new requirements of the Groundwater Rule (GWR) that went into effect in December 2009, as well as recent water conservation legislation in Georgia. State FY 2012 DWSRF Annual Report 15 COMPREHENSIVE STATEWIDE WATER MANAGEMENT PLANNING In order to ensure the availability of high quality and reliable drinking water to the citizens of Georgia, EPD was required by a state law to develop and implement a Comprehensive Statewide Water Management Plan (Plan). The Plan is intended to help Georgia manage its water supply in a sustainable manner and protect public health and natural eco-systems. The plan helps public water systems address water supply and capacity development issues by providing guidance for a sustainable, reliable and safe supply of water for all users in Georgia. During state FY 2012, EPD was invoiced $1,217,170 on contracts paid from DWSRF funds to continue implementation of the Regional Water Planning efforts (see table below - FY 2012 Regional Water Plan Contracts). Regional Water Planning Councils were established and each council prepared a Regional Water Plan in accordance with EPD guidance. The water resource assessments completed for major water resources in the State were used by the Water Planning Councils to estimate the capacities and quality of Georgia's surface and ground waters for water supply in their area. The resource assessments estimated the sustainable yield of Georgia's major water resources; a yield which when not violated results in protection of natural systems. These sustainable yields were used in the development of the Regional Water Plans. In order to meet Georgia's water resource needs in a sustainable manner, Regional Water Planning Councils developed individual Regional Water Plans. The Regional Water Plans incorporated the water resource assessments and needs forecast information. EPD provided the Water Planning Councils with guidance documents to assist with the selection of management practices for water demand management, water return practices, water supply practices and others. The Final Regional Water Plans were submitted to and adopted by the EPD Director November 2011. The Regional Water Plans will be used to guide decisions regarding state grants and loans to public water systems, including DWSRF loans. State FY 2012 Regional Water Plan Contracts (DWSRF Funded) Contract Name Vendor Amount Invoiced State FY 2012 WDC Plan Preparation - Coosa North Georgia CH2M Hill $100,655 WDC Plan Preparation - Altamaha, Coastal, Suwannee, Satilla and Groundwater Resource Assessment Camp Dresser & McKee WDC Plan Preparation - Savannah, Upper Ogeechee, Upper Oconee, Middle Ocmulgee Jacobs Engineering Water Quantity Modeling Georgia Tech $13,850 $85,400 $112,540 State FY 2012 DWSRF Annual Report 16 Water Quantity Training and Technical Assistance TOTAL GAWP, GRWA, and UGA $904,725 $1,217,170 GEORGIA ASSOCIATION OF WATER PROFESSIONALS (GAWP) Georgia Association of Water Professional's (GAWP) Drinking Water System Capacity Development Support Program continues to field technical support requests relative to the distribution of Georgia's Small System Consumer Confidence Report (CCR) guidance booklets, templates and certification forms. During state FY 2012, GAWP sent out communication pieces (i.e. Special Advisories, Utility Notices, and Regulatory Updates) directly relevant to the regulated drinking water systems of Georgia. GAWP has an extensive electronic database that is available to the EPD for dissemination of critical information to Georgia's drinking water systems. Under this contract, GAWP provided five (5) full day workshops to train large water system personnel on the "Georgia Water System Audits and Water Loss Control Manual", International Water Audit methodology, American Water Works Association water audit software, and reporting requirements specified in O.C.G.A. 12-5-4.1, "The Georgia Water Stewardship Act". The training targeted water systems serving more than 10,000 in population. Approximately 280 public water system officials attended one of these workshops. LOCAL ASSISTANCE AND OTHER STATE PROGRAMS (15 PERCENT) States may provide assistance, including technical and financial assistance, to public water systems as part of a capacity development strategy under Section 1420 (c) of the Act. States may also use the 15% set-aside to support the establishment and implementation of wellhead protection programs. The following provides a summary of the activities funded under the 15% set-aside category. 15 PERCENT CAPACITY DEVELOPMENT PROGRAM EPD performed inspections and provided on-site technical assistance and training for public water systems. The on-site visits included, but were not limited to the following: water treatment plant site visits, operator training, emergency assistance, laboratory inspections, unscheduled system inspections, on-site technical assistance, special sample collections, complaint investigations, construction inspections, record reviews, source water inspections, location specific data collection, cross-connection inspections or investigations, watershed evaluations, and public hearings. On-site technical assistance is very beneficial since most drinking water violations result from water system owner/operator's failure to understand the complex monitoring regulations and failure to perform the required testing and reporting. EPD State FY 2012 DWSRF Annual Report 17 continues to target public water systems with poor compliance records and visits these systems on a more frequent basis than those not exhibiting compliance issues or reporting problems. During state FY 2012, EPD conducted a total of 538 sanitary surveys and performed a total of 745 inspections of all types. EPD's Drinking Water Program (DWP) conducted a total of 35 sanitary surveys and performed 242 on-site inspections of public water systems treating surface water or groundwater under the direct influence of surface water. EPD's District Offices conducted a total of 503 sanitary surveys and performed 503 on-site inspections of public water systems using groundwater. In addition, District Office personnel provided on-site technical assistance to 727 water system owners and operators and responded to 272 citizen complaints. The engineers in the DWP and EPD District Offices continue to review and approve engineering plans and specifications and conduct inspections of public water systems, including those under construction, to ensure adequate technical capacity. During state FY 2012, approximately 1,487 water system projects for new and expanding public water systems were reviewed and approved under EPD's authority, which includes the delegated authority program. EPD's engineering staff approved roughly 392 of the drinking water related projects and the 1,095 remaining projects were approved under EPD's delegated authority. These projects included, but were not limited to, the design and construction of new water source facilities (intakes, wells, and purchased water connections), water treatment plants (surface water and ground water facilities), finished water storage tanks, pumping facilities, water plant sludge/waste handling and disposal facilities, and water main additions and extensions to existing water distribution systems. WELLHEAD PROTECTION During state FY 2012, wellhead protection plans continued to be updated for cities, counties, and water authorities when the permit to operate a public water system came up for renewal. Also, new wellhead evaluations were completed for proposed wells to identify potential sources of contamination and any deficiencies in locating the proposed source of supply. During state FY 2012, a total of 49 wellhead protection plans and 18 new wellhead evaluations were completed by EPD staff. DWSRF-funded associates continued to support the State Geologist and statewide water planning efforts by reviewing and updating drilling plans and estimates for an extensive well program proposed by the State to define critical aquifer conditions including capacity and reserves. Another geologist in the Watershed Protection Branch identified existing wells for sampling, obtained ground water samples for analyses, evaluated ground water quality and documented results in reports. Other geologic personnel assisted the Drinking Water Program by evaluating permit applications and ensuring that new system locations comply with wellhead protection regulations. State FY 2012 DWSRF Annual Report 18 GEORGIA RURAL WATER ASSOCIATION (GRWA) During state FY 2012, EPD used the 15% set-aside account to contract with GRWA to perform operator training seminars. Under this contract, GRWA conducted a total of 20 workshops and trained approximately 362 water system owners and operators on new regulatory issues applicable to both ground water and surface water. As part of their technical assistance, education and outreach efforts, GRWA also offered two educational conferences in Helen (October 23-25, 2011) and Jekyll Island (May 20-22, 2012). During state FY 2012, over 1,507 water and wastewater personnel and laboratory analysts attended these events. During state FY 2012, GRWA provided a total of 63 water classes to a total of 1,283 individuals on the following topics: Class IV Operator Training, Basic Water Training, Advanced Water Training, Backflow Training, Water Distribution Training, Water Lab Training, Water Exam Review Training, Fluoride Training, Management Training and Basic Mathematics used in water system operation. GEORGIA WATER AND WASTEWATER INSTITUTE (GWWI) Georgia EPD maintained a contract with the Georgia Water and Wastewater Institute (GWWI) to train water treatment system operators on the technical aspects of treatment systems and to provide continuing education of these operators on a number of public health related areas. GWWI goes beyond the traditional classroom-type training in their efforts to meet the needs of water system operators in the State of Georgia. GWWI participated in many events coordinated by its parent organization GAWP. GAWP conducted numerous conferences and workshops focused on providing continuing education opportunities for professionals in the water and wastewater industry. At these events, GWWI participated in the presentation of technical papers and "short" training sessions throughout the conferences and events. GWWI also hosted a display booth explaining and advertising the training opportunities offered by GWWI. In addition, the GAWP conducted planning sessions for utility directors of small, medium and large drinking water systems, as well as hosting association-wide District Director Meetings in an effort to better address the needs of the profession throughout Georgia. At these planning meetings, GWWI not only fosters awareness of training programs and offerings, but also serves as a valuable resource to the utility staff members as they plan to meet future system needs and requirements. This effort has proven to be a highly effective tool for both the utilities as well as for GWWI in ensuring that the operators receive the level and quality of training that is needed and required of system owners and staff. During state FY 2012, GWWI conducted approximately 62 courses related to water, wastewater, and/or laboratory operations and successfully trained 801 operators. In the training sessions and workshops that were conducted at the annual, fall, and spring conferences during state FY 2012, GWWI's technical assistance, education and outreach efforts reached over 2,399 water and wastewater treatment plant operators, maintenance personnel, State FY 2012 DWSRF Annual Report 19 laboratory analyst, design engineers, consultants, and other professionals concerned about Georgia water and wastewater issues. Training topics included sessions on traditional issues such as water and wastewater treatment plant operations, maintenance and design, rules and regulations, laboratory operations, security and safety, as well as timely discussions on policy issues such as drought contingency planning, wastewater re-use, and legislative policy. State FY 2012 DWSRF Annual Report 20 ATTACHMENT 1 SOURCES AND USES OF FUNDS BY QUARTER DRINKING WATER STATE REVOLVING FUND Sources & Uses Sources Direct Capitalization Grant Funds State Match Funds Repayments DWSRF Federal Repayments DWSRF State Match Repayments Fees Collected Closing Fee (program income) Investment Earnings (Short & Long Term) DWSRF Federal Fund DWSRF State Match Fund Closing Fee (program) Closing Fee (non-program) Uses DWSRF Disbursements - Cap Grant DWSRF Disbursements - State Match DWSRF Disbursements - Repayments DWSRF Program Income DWSRF Non-Program Income DWSRF Set-aside (2%) DWSRF Administration (4%) DWSRF Set-aside (10% & 15%) Total Sources Total Uses FY2012 July 1, 2011 - June 30, 2012 Quarter 1 7/2011 - 9/2011 Quarter 2 10/2011 - 12/2011 Quarter 3 1/2012 - 3/2012 8,013,207.09 1,639,733.03 2,309,142.65 572,348.57 133,730.64 15,286.77 5,659.40 1,281.18 50.35 12,690,439.68 5,168,390.96 1,157,268.66 2,399,906.67 588,152.30 139,327.04 14,332.00 5,143.49 1,164.65 42.93 9,473,728.70 4,201,136.69 927,865.83 2,704,935.24 756,060.44 114,688.66 17,775.07 6,539.71 1,397.85 50.61 8,730,450.10 8,013,207.09 1,673,454.05 14,999.57 39.28 - 111,301.73 148,000.00 9,961,001.72 5,180,617.14 1,249,825.17 74,975.43 32.05 73,837.50 439,702.72 273,189.58 7,292,179.59 4,184,696.43 1,046,174.10 24,223.42 39.76 73,837.50 176,118.95 2,347,072.16 7,852,162.32 Quarter 4 4/2012 - 6/2012 4,751,201.47 2,304,078.30 3,152,740.15 641,937.45 59,262.52 21,868.99 8,362.77 1,661.85 59.22 10,941,172.72 4,751,199.80 1,187,799.97 160,579.22 1,355.23 48.29 271,312.26 170,796.91 2,233,905.00 8,776,996.68 Total 22,133,936.21 6,028,945.82 10,566,724.71 2,558,498.76 447,008.86 69,262.83 25,705.37 5,505.53 203.11 41,835,791.20 22,129,720.46 5,157,253.29 160,579.22 115,553.65 159.38 418,987.26 897,920.31 5,002,166.74 33,882,340.31 Account DWSRF Federal Repayment Fund DWSRF State Match Repayment Fund Closing Fee Account (Non-program) Closing Fee Account (Program) *Balance as of 06/30/2012 State FY2012 DWSRF Annual Report ATTACHMENT 2 DWSRF REPAYMENT ACCOUNTS DRINKING WATER STATE REVOLVING FUND Total FY2012 July 1, 2011 - June 30, 2012 Balance* Investment Earnings Expected Uses of Funds 51,106,208.85 19,105,314.22 133,239.04 3,764,337.51 74,109,099.62 69,262.83 Project Funding 25,705.37 Project Funding 203.11 Water Supply Related Activities 5,505.53 DWSRF Activities 100,676.84 21 ATTACHMENT 3 COMMUNITIES RECEIVING DWSRF FINANCIAL ASSISTANCE DRINKING WATER STATE REVOLVING FUND FY2012 July 1, 2011 - June 30, 2012 Community Boston Brunswick-Glynn County Joint Water and Sewer Commission Camilla Chattooga County Unified Government of Cusseta-Chattahoochee County Dillard Donalsonville Eatonton-Putnam Water Sewer Authority Franklin County Jones County Leesburg Louisville Martin Royston Walthourville Unified Government of Webster County Wrens Project Number Population DWSRF 11-011 1,417 DWSRF 10-024 67,568 DWSRF 11-016 5,669 DWSRF 10-002 25,470 DWSRF 10-027 1,196 DWSRF 10-003 198 DWSRF 11-014 DWSRF 11-010 DWSRF 09-043 DWSRF 09-030 2,796 18,812 20,285 23,639 DWSRF 11-015 2,633 DWSRF 10-009 2,712 DWSRF 11-004 311 DWSRF 10-019 2,493 DWSRF 11-003 4,030 DWSRF 11-006 2,390 DWSRF 10-017 2,314 Zip Code 31626 31520 31730 30747 31805 30537 39845 31024 30521 31032 31763 30434 30557 30662 31333 31824 30833 Project Type FY 2011-Green FY 2010-Green FY 2011 Base FY 2010-Green Base FY 2011-Green FY 2011-Green Base FY 2010 FY 2011-Green Base FY 2011 FY 2011-Green FY 2010-Green FY 2011-Green FY 2011 TOTAL ARRA Green Total Principal Disadvantaged Project Assistant Loan Forgiveness Community Reserve Agreements Amount Amount Subsidy Amount 331,408 231,986 99,422 331,408 100,000 50,000 50,000 100,000 1,945,900 1,445,900 500,000 1,314,500 1,314,500 400,000 200,000 200,000 400,000 750,000 500,000 250,000 307,000 307,000 307,000 1,745,000 1,245,000 500,000 1,745,000 1,082,290 582,290 500,000 1,499,520 1,049,664 449,856 651,480 456,036 195,444 651,480 1,271,000 771,000 500,000 1,000,000 700,000 300,000 461,985 323,389 138,596 461,985 627,100 313,550 313,550 627,100 201,500 141,050 60,450 201,500 810,000 567,000 243,000 $ 14,498,683.00 $ 10,198,365.00 $ 3,050,318.00 $ 1,250,000.00 $ 4,825,473.00 Binding Commitment Date 4/2/2012 7/22/2011 4/2/2012 9/15/2011 10/3/2011 12/7/2011 3/20/2012 6/22/2012 8/9/2011 10/6/2011 4/2/2012 7/11/2011 4/20/2012 5/22/2012 3/12/2012 4/2/2012 5/18/2012 Projected Initiation of Operation Date 9/1/2012 5/1/2012 1/1/2013 10/1/2012 8/1/2012 1/1/2014 11/1/2012 9/1/2013 1/1/2013 10/1/2012 9/1/2012 1/1/2014 1/1/2014 1/1/2014 1/1/2013 9/1/2012 7/1/2013 Loan Fees (%) Collected Interest Outside the Principal Rate of the Loan 2% 1% 3% 1% 2.54% 1% 0% 1.81% 3% 1% 0% 1% 2% 1% 1.13% 1% 0% 1% 3% 1% 0% 1% 0% 1% 3% 1% 1.13% 1% 2% 1% 2% 1% 3% 1% State FY2012 DWSRF Annual Report 22 ATTACHMENT 4 BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE DRINKING WATER STATE REVOLVING FUND FY2012 July 1, 2011 - June 30, 2012 Commitment # of Binding Assistance Amount Commitment by # of Binding by Category Commitments* ($) Population Size Commitments Planning and Design Only Less Than 501 2 Construction: 501 to 3,300 8 Treatment 3,301 to 10,000 2 Transmission & Distribution 16 12,177,683 10,001 to 100,000 5 Source 1 1,271,000 100,001 and above Storage 1 1,050,000 Total 17 Purchase of System 0 Restructuring 0 Land Acquistion 0 Other 0 Total 18 $14,498,683 *Assistance Agreements may be counted in more than one category when they fund more than one category. Assistance Amount ($) 1,750,000 4,434,373 2,573,000 5,741,310 $14,498,683 State FY2012 DWSRF Annual Report 23 Community Banks County Boston Brunswick-Glynn County Joint WSC Calhoun Carroll County Water Authority Carroll County Water Authority Carroll County Water Authority Chattooga County Clayton Colquitt Commerce Unified Gov't of Cusseta-Chattahoochee County Forsyth County Franklin County Henry County Ila Lakeland Lamar County WSA Leesburg Louisville Lumpkin County WSA Madison County IDBA Martin Martin Milledgeville Newton County WSA Nicholson Water Authority Pickens County Poulan Roswell Sky Valley Sky Valley Stockbridge Summerville Swainsboro Tallapoosa Thomaston Thomaston Thomasville Tignall Waleska Walthourville Washington Waynesboro White County WSA State FY 2012 CWSRF Annual Report ATTACHMENT 5 DISBURSEMENT OF FUNDS BY QUARTER DRINKING WATER STATE REVOLVING FUND FY2012 July 1, 2011 - June 30, 2012 Project # DWSRF09-015 DWSRF11-011 DWSRF10-024 DWSRF10-007 DWSRF09-013 DWSRF09-014 DWSRF10-010 DWSRF10-002 DWSRF09-010 DWSRF08-006 DWSRF10-023 DWSRF10-027 DWSRF10-015 DWSRF09-043 DWSRF10-025 DWSRF09-044 DWSRF06-005 DWSRF08-003 DWSRF11-015 DWSRF10-009 DWSRF09-004 DWSRF10-028 DWSRF11-004 DWSRF10-021 DWSRF09-008 DWSRF10-026 DWSRF08-008 DWSRF09-027 DWSRF10-020 DWSRF10-011 DWSRF09-024 DWSRF10-018 DWSRF09-012 DWSRF09-036 DWSRF09-034 DWSRF10-029 DWSRF09-002 DWSRF10-012 DWSRF10-013 DWSRF08-002 DWSRF09-029 DWSRF11-003 DWSRF09-026 DWSRF09-023 DWSRF10-001 Quarter 1 Quarter 2 7/2011 - 9/2011 10/2011 - 12/2011 Quarter 3 1/2012 - 3/2012 Quarter 4 4/2012 - 6/2012 6,654.67 - 443,915.10 66,346.02 299,388.25 592,272.82 467,975.54 464,667.47 8,725.86 315,798.58 322,747.97 6,453.67 75,276.45 153,458.15 511,246.03 173,510.27 147,556.89 37,729.90 1,371,289.75 21,491.98 264,434.74 1,000.00 678,686.48 172,998.99 1,020,000.89 485,574.49 101,317.10 36,691.73 88,779.26 780,355.98 360,468.77 209,847.34 276,930.09 279,099.96 38,442.39 125,834.08 137,348.00 4,252.50 849,793.69 192,531.98 122,031.80 445,608.72 147,914.30 42,000.00 739,820.04 137,018.24 61,301.12 124,968.75 5,000.00 554,420.60 396,255.50 176,580.39 301,698.29 20,550.27 759,157.81 319,307.86 172,575.93 199,938.96 16,762.16 218,472.72 210,989.21 56,293.65 135,201.97 170,276.93 12,534.00 93,839.03 266,157.57 481,803.86 527,236.68 72,915.00 8,951.79 302,532.74 258,390.11 468,057.60 206,314.05 1,333,520.10 190,682.40 30,416.54 $ 24,855.60 $ 100,000.00 $ - $ - $ - $ 418,336.91 $ 100,448.63 $ - $ 14,142.89 $ - $ 75,882.13 $ 55,602.09 $ 62,219.38 $ - $ 3,500.00 $ - $ - $ 287,905.82 $ 119,727.00 $ 5,000.00 $ 70,223.82 $ 421,927.61 $ 298,179.65 $ - $ 728,180.32 $ 91,565.00 $ 384,270.07 $ - $ - $ - $ 56,939.73 $ - $ 215,041.68 $ 101,927.16 $ 32,828.95 $ - $ - $ 103,490.75 $ - $ - $ 444,791.20 $ 1,545,283.14 $ 105,213.48 $ 201,679.44 $ $ 9,686,661.14 $ 6,430,442.31 $ 5,230,870.53 $ 6,099,578.99 $ 24 Total 37,071.21 24,855.60 100,000.00 920,784.15 66,346.02 595,250.37 1,267,524.84 905,247.46 658,309.12 22,868.75 315,798.58 211,084.10 59,854.59 1,082,290.00 335,281.97 3,500.00 6,453.67 75,276.45 287,905.82 406,098.01 280,489.95 1,293,236.14 421,927.61 1,101,408.08 189,556.89 1,995,237.04 301,498.24 384,270.07 107,982.81 1,496,258.50 26,491.98 1,178,327.81 1,000.00 1,548,373.77 919,564.14 540,841.29 1,020,000.89 485,574.49 204,807.85 36,691.73 109,329.53 444,791.20 4,418,317.03 784,990.11 774,785.11 27,447,552.97 ATTACHMENT 6 COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS DRINKING WATER STATE REVOLVING FUND FY2012 July 1, 2011 - June 30, 2012 Projected Disbursements Quarter 1 7/2011 - 9/2011 Quarter 2 10/2011 - 12/2011 Quarter 3 1/2012 - 3/2012 Quarter 4 4/2012 - 6/2012 Projected FY2012 DWSRF Disb. from 2010 IUP Projected FY2012 DWSRF Disb. from 2011 IUP Total Projected Disbursements for FY2012 $ 2,646,083.00 333,600.00 2,979,683.00 $ 1,466,083.00 6,782,390.00 8,248,473.00 $ 1,466,083.00 12,154,725.00 13,620,808.00 $ 1,249,625.00 $ 12,608,475.00 $ 13,858,100.00 $ Actual FY2012 DWSRF Disbursements $ Percent Disbursed of Projected 9,686,661.14 $ 325% 6,430,442.31 $ 78% 5,230,870.53 $ 38% 6,099,578.99 $ 44% Total 6,827,874.00 31,879,190.00 38,707,064.00 27,447,552.97 71% State FY2012 DWSRF Annual Report 25 ATTACHMENT 7 PROJECTS INITIATING OPERATION DRINKING WATER STATE REVOLVING FUND FY2012 July 1, 2011 - June 30, 2012 Community Project Number DWSRF Assistance Amount Amount Disbursed BRUNSWICK-GLYNN WATER & SEWER COMMISSION CARROLL COUNTY WATER AUTHORITY-ARRA CARROLL COUNTY WATER AUTHORITY-ARRA CLAYTON-ARRA GROVETOWN-ARRA HENRY COUNTY WSA ILA LAKELAND LEXINGTON LUMPKIN COUNTY WSA MILLEDGEVILLE-ARRA PICKENS COUNTY* PICKENS COUNTY-ARRA* POULAN SKY VALLEY DWSRF 10-024 DWSRF 09-013 DWSRF 09-014 DWSRF 09-010 DWSRF 09-025 DWSRF 10-025 DWSRF 09-044 DWSRF 06-005 DWSRF 06-001 DWSRF 09-004 DWSRF 09-008 DWSRF 09-027 DWSRF 09-027 DWSRF 10-020 DWSRF 09-024 100,000 3,625,000 4,675,000 750,000 2,500,000 2,652,000 800,000 2,994,670 1,000,000 408,000 1,206,950 380,000 615,000 400,000 1,692,480 100,000 3,624,112 4,557,220 750,000 2,500,000 2,504,013 799,538 2,994,670 996,013 408,000 1,171,726 310,220 615,000 240,337 1,692,480 SMITHVILLE-ARRA STOCKBRIDGE-ARRA THOMASTON THOMASVILLE TIGNALL TOWNS COUNTY WSA WALESKA-ARRA DWSRF 09-001 DWSRF 09-012 DWSRF 09-002 DWSRF 10-013 DWSRF 08-002 DWSRF 04-009 DWSRF 09-029 Total $ 292,800 4,316,500 3,400,000 2,250,000 1,000,000 5,850,000 615,000 41,523,400 233,361 3,086,500 3,400,000 1,125,000 922,361 5,850,000 615,000 $ 38,495,551 *Pickens County and Pickens County-ARRA are reported as two assistance agreements for one project in this table. Percentage Disbursed 100% 100% 97% 100% 100% 94% 100% 100% 100% 100% 97% 82% 100% 60% 100% 80% 72% 100% 50% 92% 100% 100% 92.7% Binding Commitment Date 7/22/2011 12/1/2009 12/1/2009 2/9/2011 12/4/2009 2/23/2011 1/11/2010 9/26/2007 7/20/2007 4/20/2011 10/2/2009 2/1/2010 2/1/2010 3/17/2011 1/6/2010 2/1/2010 12/17/2009 11/1/2009 3/4/2011 8/13/2008 6/7/2010 1/4/2010 Initiated Operation Date 5/1/2012 10/01/2011 2/1/2012 3/1/2012 7/1/2011 2/1/2012 6/1/2012 9/1/2011 8/1/2011 5/15/2012 11/1/2011 6/1/2012 6/1/2012 6/1/2012 12/01/2011 10/01/2011 9/1/2011 12/01/2011 6/1/2012 10/01/2011 7/1/2011 2/1/2012 Loan Interest Rate 3% 3% 3% 3% 3% 3% 0% 0% 0% 3% 3% 3% 3% 3% 0% 3% 3% 3% 3% 0% 0% 3% State FY2012 DWSRF Annual Report 26 ATTACHMENT 8 ADMINISTRATIVE & SET-ASIDE EXPENSES BY CATEGORY DRINKING WATER STATE REVOLVING FUND FY2012 July 1, 2011 - June 30, 2012 Set-aside Category SRF Amount Expended 2% Set-aside Small System Technical Assistance $ Subtotal $ 418,987.26 418,987.26 4% GEFA/EPD Administration Personnel Subtotal $ 897,920.31 897,920.31 10% PWSS Set-aside PWSS Administration SWP Technical Assistance Capacity Development Subtotal 785,008.00 89,013.00 645,053.00 1,519,074.00 15% Local Assisitance Set-aside Wellhead Protection Programs Capacity Development $ Subtotal $ Total $ 1,284,295.00 2,198,798.00 3,483,093.00 6,319,074.57 State FY2012 DWSRF Annual Report 27 ATTACHMENT 9 DBE UTILIZATION DRINKING WATER STATE REVOLVING FUND April 1, 2011 - March 31, 2012* Summaries Semi-Annual Dates MBE ($) WBE ($) Non-ARRA (April 1, 2011 - September 30, 2011) (October 1, 2011 - March 31, 2012) 194,751.55 110,940.34 415,305.15 315,388.86 ARRA (April 1, 2011 - September 30, 2011) (October 1, 2011 - March 31, 2012) 36,872.13 0.00 0.00 0.00 TOTAL $342,564.02 $730,694.01 PERCENTAGE GOAL 4.00% 4.00% PERCENTAGE ACTUAL** 1.14% 2.42% *DBE information is provided on a semi-annual basis to EPA **Percentage Actual is calculated by dividing the DBE funds disbursed by the total CWSRF funds disbursed in the same period TOTAL ($) $610,056.70 $426,329.20 $36,872.13 $0.00 $1,073,258.03 8.00% 3.56% State FY2012 DWSRF Annual Report 28 ATTACHMENT 10 DWSRF CAPITALIZATION GRANTS AVAILABLE & SPENT DRINKING WATER STATE REVOLVING FUND As of June 30, 2012 Capitalization Grant 2009 Funds Available 2009 Funds Spent % of Funds Spent Project Funds 2% Set-aside 4% Set-aside 10% Set-aside 15% Set-aside Total Funds 19,119,777.00 19,119,777.00 100% 457,640.00 410,094.04 90% 915,280.00 207,162.57 23% 2,288,200.00 2,288,200.00 100% 3,432,300.00 3,432,300.00 100% 26,213,197.00 25,457,533.61 97% 2010 Funds Available 2010 Funds Spent % of Funds Spent 22,128,990.00 11,350,282.24 51% 641,420.00 0% 1,282,840.00 45,049.49 4% 3,207,100.00 2,781,828.00 87% 4,810,650.00 4,654,256.12 97% 32,071,000.00 18,831,415.85 59% 2011 Funds Available 2011 Funds Spent % of Funds Spent 15,355,260.00 0% 445,080.00 0% 890,160.00 0% 2,225,400.00 93,275.00 4% 3,338,100.00 129,377.00 4% 22,254,000.00 222,652.00 1% Total Funds Available Total Funds Spent Total % of Funds Spent $ 56,604,027.00 $ 1,544,140.00 $ 3,088,280.00 $ $ 30,470,059.24 $ 410,094.04 $ 252,212.06 $ 54% 27% 8% 7,720,700.00 $ 11,581,050.00 $ 5,163,303.00 $ 8,215,933.12 $ 67% 71% 80,538,197.00 44,511,601.46 55% State FY2012 DWSRF Annual Report 29