STATE OF GEORGIA DRINKING WATER STATE REVOLVING FUND PROGRAM STATE FISCAL YEAR 2013 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, 2013 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 FISCAL YEAR 2013 INTRODUCTION ............................................................................................................................................................ 1 EXECUTIVE SUMMARY .............................................................................................................................................. 1 ADDITIONAL SUBSIDIZATION PROJECTS............................................................................................................ 2 ALTO (DWSRF 11-026) ................................................................................................................................................ 2 ASHBURN (DWSRF 12-007)........................................................................................................................................ 2 BALDWIN COUNTY (DWSRF 09-039)....................................................................................................................... 3 DEMOREST (DWSRF 11-023) ..................................................................................................................................... 3 FRANKLIN COUNTY (DWSRF 12-002) ..................................................................................................................... 3 LYERLY (DWSRF 11-020) ........................................................................................................................................... 3 MADISON COUNTY INDUSTRIAL AND BUILDING AUTHORITY (DWSRF 11-024) ......................................... 3 MCCAYSVILLE (DWSRF 12-001) .............................................................................................................................. 4 THOMASVILLE (DWSRF 11-005)............................................................................................................................... 4 UPSON COUNTY (DWSRF 11-018) ............................................................................................................................ 4 GREEN PROJECTS ........................................................................................................................................................ 4 BUTLER (DWSRF 11-007) ........................................................................................................................................... 4 BUTTS COUNTY, ET. AL. WATER AND SEWER AUTHORITY (DWSRF 11-022)................................................ 4 COOSA WATER AUTHORITY (DWSRF 11-001) ...................................................................................................... 5 SINCLAIR WATER AUTHORITY (DWSRF 10-022).................................................................................................. 5 THOMASVILLE (DWSRF 11-017)............................................................................................................................... 5 BASE DWSRF PROJECTS ............................................................................................................................................ 5 CALHOUN (DWSRF 10-007) ....................................................................................................................................... 5 LEESBURG (DWSRF 11-015) ...................................................................................................................................... 5 LOUISVILLE (DWSRF 10-009).................................................................................................................................... 6 WAVERLY HALL (DWSRF 11-021) ........................................................................................................................... 6 WRENS (DWSRF 10-017)............................................................................................................................................. 6 MEETING IUP GOALS AND OBJECTIVES .............................................................................................................. 6 DWSRF LOAN DISBURSEMENTS .............................................................................................................................. 7 DWSRF STATE MATCH ............................................................................................................................................... 8 DWSRF LOAN REPAYMENTS .................................................................................................................................... 8 ASSURANCES AND SPECIFIC PROPOSALS ........................................................................................................... 8 PROGRAM ADMINISTRATION (4 PERCENT) ........................................................................................................ 9 DBE PARTICIPATION.................................................................................................................................................... 9 SMALL SYSTEM TECHNICAL ASSISTANCE (2 PERCENT).............................................................................. 10 ASSISTANCE TO STATE PROGRAMS (10 PERCENT) ........................................................................................ 11 PUBLIC WATER SYSTEM SUPERVISION OPERATOR TRAINING ...............................................................11 CROSS CONNECTION CONTROL .......................................................................................................................12 IMPLEMENTATION OF EPD'S CRYPTOSPORIDIUM STRATEGY ...............................................................13 CAPACITY DEVELOPMENT PROGRAM ............................................................................................................14 SOURCE WATER / GROUND WATER INVESTIGATIONS ...............................................................................15 INFORMATION MANAGEMENT.........................................................................................................................16 COMPREHENSIVE STATEWIDE WATER MANAGEMENT PLANNING ......................................................17 GEORGIA ASSOCIATION OF WATER PROFESSIONALS (GAWP)................................................................17 LOCAL ASSISTANCE AND OTHER STATE PROGRAMS (15 PERCENT) ....................................................... 18 15 PERCENT CAPACITY DEVELOPMENT PROGRAM....................................................................................18 WELLHEAD PROTECTION ..................................................................................................................................19 GEORGIA RURAL WATER ASSOCIATION (GRWA) .........................................................................................19 GEORGIA WATER AND WASTEWATER INSTITUTE (GWWI) .......................................................................20 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 2013 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 2013, DWSRF Program Annual Report covers both the program and set-aside activities, and compares these activities to the activities proposed in the 2012 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 May of 2012, GEFA submitted the 2012 grant application and IUP. The 2012 grant was awarded on August 31, 2012, for $21,208,000. Funds received to date by Georgia's DWSRF Program from EPA total $349,501,847. Georgia's required state match to date totals $61,906,280 for a grand total of $411,468,127. State FY 2013 DWSRF Annual Report 1 Attachment 1 displays the total sources of funds by quarter during state FY 2013 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. Attachment 2 displays the balances within these accounts as of June 30, 2013. The DWSRF Program executed sixteen new assistance agreements and four loan increases in state FY 2013 for a total of $38,031,076. This total assistance amount includes $33,479,762 in low-interest loans and $4,551,314 in principal forgiveness funds. Attachment 3 shows that the DWSRF program provided $3,332,570 to projects that met the qualifications of the Green Project Reserve. Attachment 4 displays information about these sixteen projects in the format of the National Information Management System (NIMS). The DWSRF Program provided $13,864,513 of the $38,031,076 to small water systems servicing fewer than 10,000 residents while $11,261,943 was provided to small water systems servicing fewer than 3,300 residents. Lastly, GEFA and EPD have entered all necessary information into the Drinking Water Benefits reporting database for all projects funded through state FY 2013. All projects listed below were either on the Comprehensive List or Fundable List 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). All DWSRF projects completed a 4700-4 Certification Form and subsequently had that form approved by EPA. Below is a short write-up for each of the projects funded in state FY 2013. ADDITIONAL SUBSIDIZATION PROJECTS Alto (DWSRF 11-026) On August 21, 2012, Alto signed a $539,863 assistance agreement including $147,709 in principal forgiveness to replace 6,818 linear feet (LF) of 8-inch and 6,509 LF of 6-inch galvanized iron water main with PVC water main. These water mains experience numerous breaks and result in significant water loss. The project will also install fire hydrants and retrofit the existing elevated water storage tank with an overflow control value to make better use of the elevated storage tank and reduce water loss. As of the end of state FY 2013, Alto had drawn $478,587.15 of this commitment. Ashburn (DWSRF 12-007) On November 20, 2012, Ashburn signed a $1,420,000 assistance agreement including $284,000 in principal forgiveness to install a 300,000 gallon elevated water storage tank, State FY 2013 DWSRF Annual Report 2 a 1,000 gallon per minute well and upgrades to the telemetry system. As of the end of state FY 2013, Ashburn had drawn $782,915 of this commitment. Baldwin County (DWSRF 09-039) On October 10, 2012, Baldwin County signed a $5,266,563 assistance agreement including $500,000 in principal forgiveness to: 1) construct a 750,000-gallon elevated water tank on Highway 212; 2) construct a 500,000-gallon elevated water tank on Hopewell Church Road; 3) construct a 200,000-gallon elevated water tank on Lake Laurel Road; 4) construct a 500,000-gallon elevated water tank on State Route 243; and 5) construct a 12-inch water line on Meriwether Road. As of the end of state FY 2013, Baldwin County had drawn $784,229.70 of this commitment. Demorest (DWSRF 11-023) On December 5, 2012, Demorest signed a $3,300,000 assistance agreement including $450,000 in principal forgiveness to replace approximately 30,500 linear feet (LF) of water line and install 4,500 LF of new water line. This project also includes the replacement of approximately 5,500 old and inaccurate water meters with radio read meters. As of the end of state FY 2013, Demorest had drawn $2,033,243.56 of this commitment. Franklin County (DWSRF 12-002) On July 13, 2012, Franklin County signed a $2,000,000 assistance agreement including $400,000 in principal forgiveness to develop a new well, replace an elevated water storage tank, add new water lines along State Road 320 and install new meters, billing software and purchase emergency generators and telemetry. As of the end of state FY 2013, Franklin County had drawn $1,434,052.88 of this commitment. Lyerly (DWSRF 11-020) On August 20, 2012, Lyerly signed an $894,400 assistance agreement including $249,291 in principal forgiveness to replace existing water lines and replace water meters with radio read meters to improve billing efficiency and encourage water conservation as well as reduce unaccounted water in the city's water system. Lyerly received a 2011 Community Development Block Grant for $500,000 for this project. As of the end of state FY 2013, Lyerly had drawn $620,637.31 of this commitment. Madison County Industrial Development and Building Authority (DWSRF 11-024) On August 28, 2012, the Madison County Industrial Development and Building Authority signed a $1,500,000 assistance agreement including $450,000 in principal forgiveness to construct a master meter interconnection to the Franklin County water system, new water mains to extend service south along US 29 and around Danielsville. The interconnection and water mains will provide service to unincorporated areas of Madison County. The businesses and residences in these areas are currently served by private wells. It is believed that many of these wells have diminished yield due to increased development and over use. As of the end of state FY 2013, the Madison County Industrial Development and Building Authority had drawn $1,496,084.57 of this commitment. State FY 2013 DWSRF Annual Report 3 McCaysville (DWSRF 12-001) On February 1, 2013, McCaysville signed a $5,650,000 assistance agreement including $500,000 in principal forgiveness to renovate the city's 1.0 million gallon per day water treatment plant. This project includes the demolition of existing equipment and structures and the construction of a new clear well, chemical feed tank farm, raw water pumps, high service pumps, chemical feed systems and other facilities. As of the end of state FY 2013, McCaysville had not drawn any funds of this commitment. Thomasville (DWSRF 11-005) On November 8, 2012, Thomasville signed a $9,800,000 assistance agreement including $500,000 in principal forgiveness to complete water system improvements that include: 1) installing a new well and chemical feed building to provide a redundant source of drinking water, 2) replacing approximately 15 percent of the 46 miles of asbestos water lines throughout the water system, 3) installing a new 500,000-gallon elevated water tank, and 4) increasing the security at the water treatment facility by installing network dome cameras to monitor critical system components. As of the end of state FY 2013, Thomasville had drawn $13,092.19 of this commitment. Upson County (DWSRF 11-018) On September 6, 2012, Upson County signed a $1,800,000 assistance agreement including $500,000 in principal forgiveness to replace old water mains, to conduct county-wide leak detection and repairs and to replace existing water meters with an automatic meter reading system. The improvements to the water system will improve the flow and pressure in the distribution system, thereby providing safe and reliable drinking water. As of the end of state FY 2013, Upson County had drawn all of the funds. GREEN PROJECTS Butler (DWSRF 11-007) On December 12, 2012, Butler signed a $488,000 assistance agreement including $146,400 in principal forgiveness to replace 1,220 water meters and water service lines where necessary. As of the end of state FY 2013, Butler had drawn $27,784.75 of this commitment. Butts County Water & Sewer Authority (DWSRF 11-022) On September 20, 2012, the Butts County Water & Sewer Authority signed a $950,000 assistance agreement including $285,000 in principal forgiveness to replace approximately 5,000 manual read water meters with advanced meter reading infrastructure as well as replacing failing polybutylene service lines with copper service lines. The new meters will have data logging capability with enhanced leak detection. As of the end of state FY 2013, the Butts County Water & Sewer Authority had drawn $695,689.91 of this commitment. State FY 2013 DWSRF Annual Report 4 Coosa Water Authority (DWSRF 11-001) On December 20, 2012, the Coosa Water Authority signed a $544,570 assistance agreement including $108,914 in principal forgiveness to replace existing water meters with new automatic read meters. As of the end of state FY 2013, the Coosa Water Authority had drawn $33,228.00 of this commitment. Sinclair Water Authority (DWSRF 10-022) On October 1, 2012, the Sinclair Water Authority signed a $150,000 assistance agreement including $30,000 in principal forgiveness to install a new raw water pump and variable frequency drive at the existing raw water pump station. This new raw water pump and variable frequency drive will provide needed reliability and increase the efficiency of the pump station. As of the end of state FY 2013, the Sinclair Water Authority had drawn $149,615.41 of this commitment. Thomasville (DWSRF 11-017) On July 2, 2012, Thomasville signed a $1,200,000 assistance agreement to complete three projects within the water system: 1) replace aging commercial water meters with new Badger water meters and automatic meter reading equipment; 2) purchase leak detection equipment; and 3) replace the pumps in three high service pump stations with new high efficiency motors saving the city 10 20 percent per year in energy costs. As of the end of state FY 2013, Thomasville had drawn $6,300.00 of this commitment. BASE DWSRF PROJECTS Calhoun (DWSRF 10-007) On April 29, 2013, Calhoun signed a $1,650,000 assistance agreement, increasing an existing $1,600,000 loan, to change the Brittany Drive Plant expansion from gaseous chlorination filtration to hypochlorination filtration resulting in the need for an additional $1,650,000 to cover additional costs. This project will construct a 7 MGD deep bed gravity filtration system including chemical storage and feed, flocculation, four gravity filters, pipe gallery, treated water pumping, one 1 MG prestressed concrete clearwell, chlorination facilities, meter pit, site work, yard piping and all the related appurtenances. As of the end of state FY 2013, Calhoun has drawn $1,858,891.50 of the total commitment. Leesburg (DWSRF 11-015) On January 2, 2013, Leesburg signed a $13,000 assistance agreement, increasing an existing $651,480 loan, 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. Due to lower than expected bid prices, Leesburg would like to perform additional water meter work and requested an additional $13,000 in funds. As of the end of state FY 2013, Leesburg has drawn all funds of the total commitment. State FY 2013 DWSRF Annual Report 5 Louisville (DWSRF 10-009) On June 21, 2013, Louisville signed a $381,680 assistance agreement, increasing an existing $1,271,000 loan, 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. The city requested an additional $381,680 because bids came in higher than anticipated. As of the end of state FY 2013, Louisville has drawn $539,329.47 of the total commitment. Waverly Hall (DWSRF 11-021) On September 6, 2012, Waverly Hall signed a $360,000 assistance agreement to rehabilitate two existing wells, replace existing small galvanized water lines, connect to the Harris County water system for supplemental supply, clean and repaint both storage tanks, and install telemetry for well pump control. As of the end of state FY 2013, Waverly Hall had drawn $28,864.27 of the total commitment. Wrens (DWSRF 10-017) On June 3, 2013, Wrens signed a $123,000 assistance agreement, increasing an existing $810,000 loan, to install water lines and a booster pump station from the city of Wrens to the Kings Mill Industrial Park. The city of Wrens requested an increase of $123,000 to paint both the Northgate and Lakeview Drive elevated water storage tanks. As of the end of state FY 2013, Wrens had drawn $730,870.80 of the total commitment. MEETING IUP GOALS AND OBJECTIVES The 2012 DWSRF IUP listed three goals of the program. The first goal listed in the 2012 IUP was: The DWSRF Program will support the implementation of water conservation initiatives to help protect the state's water supply resources. 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 market this additional interest rate incentive across the state in an effort to further this initiative. Status: The 1 percent 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 in order to lower the borrowing costs on these important projects. This interest rate reduction will continue in the future and GEFA will continue to market this incentive throughout the state. GEFA developed a comprehensive list of project types that qualify for this water conservation rate such as water meter replacement projects, water line leakage projects and reuse water projects, as well as many others and GEFA uses this information to market this program. State FY 2013 DWSRF Annual Report 6 The second goal listed in the 2012 IUP was: In order to reduce the unliquidated obligations within the DWSRF program, GEFA will identify strategies to increase the use of DWSRF set-aside funds as well as increase the disbursement rate within the project accounts. Status: GEFA has had great success in FY 2013, in increasing the use of set-aside funds and generally increasing the pace of the program. Attachment 10 shows that as of June 30, 2013, only the 2010, 2011 and 2012 grants were open. Additionally, at the beginning of FY 2013, funds within the 2010 (4 percent) account were transferred to the project account to allow those funds to be disbursed within weeks of the transfer of funds. The 2010 DWSRF grant will be closed by December 31, 2013. The third goal listed in the 2012 IUP was: As a result of the Georgia Water Stewardship Act of 2010, the Georgia state legislature required all water systems serving over 3,300 in population to perform a water loss audit. GEFA designed a technical assistance grant program and will select a statewide contractor to provide technical assistance to those small water systems serving between 3,300 and 10,000 in population. This technical assistance will be provided between June 2012 and December 2012 allowing these systems to meet the March 1, 2013, water loss audit deadline. This technical assistance grant program will be provided from the 2 percent Small Water System Set-aside. Status: This water loss technical assistance program for small water systems serving between 3,300 and 10,000 people in population was initiated and completed in FY 2013. GEFA hired a consultant who provided water loss audit training to approximately 100 of the eligible 115 small water systems. All 100 small water systems which participated in the training program submitted their audit to EPD by the deadlines of March 2013. The submission of these audits met the statutory requirement identified in the Georgia Water Stewardship Act of 2010. GEFA has had great success with this training program, so much so that many other state SRF programs have inquired as to how they could operate a similar program in their state. DWSRF LOAN DISBURSEMENTS The DWSRF Program disbursed funds to 47 active projects during state FY 2013. Attachment 5 shows the projects which received funds by quarter in state FY 2013. The DWSRF Program disbursed a total of $25,849,055.78 in state FY 2013. Many of these projects received a mix of additional subsidization, base DWSRF funds and state match funds. Attachment 6 compares the projected disbursement schedules indicated within the 2011 and 2012 IUPs for state FY 2013 against the actual disbursements made in state FY 2013. The DWSRF Program disbursed 97 percent of what it projected it would disburse in state FY 2013. State FY 2013 DWSRF Annual Report 7 DWSRF STATE MATCH During state FY 2013, 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 2013 by quarter. DWSRF LOAN REPAYMENTS In state FY 2013, 16 projects initiated operation under the DWSRF Program amounting to a $20,675,507 commitment of DWSRF funds (Attachment 7). The total dollar value disbursed to these 16 projects initiating operation within state FY 2013 was $20,029,955 which equates to 97 percent of the contracted amount. All of the 16 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 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 State FY 2013 DWSRF Annual Report 8 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 2013 audited financial is provided under separate cover. PROGRAM ADMINISTRATION (4 PERCENT) In state FY 2013, GEFA and EPD spent $1,032,965 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 2013, the Construction Management Unit (CMU) of EPD processed 190 DWSRF project draw requests and completed 354 DWSRF inspections. DBE PARTICIPATION 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, 2012 March 31, 2013. 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 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 State FY 2013 DWSRF Annual Report 9 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 2013, Georgia spent $295,350 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, 2012 to June 30, 2013, 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 2013, 90 systems were visited in order to collect and submit the required SOC samples to the EPD laboratory. In state FY 2013, the DWSRF program signed a contract with Cavanaugh and Associates to provide water loss audit technical assistance training to small water systems throughout Georgia. This training program was established to train those small water systems that serve between 3,300 and 10,000 in population. Approximately 115 small water systems meet this population criterion and 100 small water systems opted to participate in this training program. The program was eight month in duration and included a series of three on-site trainings as well as several conference calls. All 100 small water systems successfully submitted the 2012 water State FY 2013 DWSRF Annual Report 10 loss audit to EPD using calendar year data by the March 2013 deadline. This effort was a great success and provided these small water systems with the hands-on training needed to complete this task for the first time. The training was designed to train these systems and establish annual processes in order to complete this annual requirement into the future. In FY 2014, GEFA is working with about half of these small water systems to provide technical assistance to address some of the items that were identified within the water loss audit. Finished water meter verification, customer meter testing and pilot leak detection will be offered to these small water systems to further address water loss issues in an attempt to reduce water loss, increase the water loss audit validation score and to potentially address larger issues through the development or a capital improvement project. ASSISTANCE TO STATE PROGRAMS (10 PERCENT) States are allowed to use up to 10 percent 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 percent 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 State FY 2013 DWSRF Annual Report 11 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 2002 - 2012. The data is also used to establish a baseline for EPD to measure progress in operator training and certification. 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 State FY 2013 DWSRF Annual Report 12 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 approximately 1,300 backflow prevention professionals have been certified since the beginning of the program. IMPLEMENTATION OF EPD'S CRYPTOSPORIDIUM STRATEGY During state FY 2013, 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) Subpart H surface water systems began their second round of monitoring in July 2011. Another thirty (30) Subpart H surface water systems are scheduled to begin their second round of monitoring on October 1, 2013. 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 principal 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 State FY 2013 DWSRF Annual Report 13 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 2013, 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 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, 2013, a total of 809 business plans have been submitted to EPD. During State FY 2013, 61 business plans were received from 13 new public water systems and 48 existing water systems. 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, 2013, a total of 66 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 governmentally 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 2013 DWSRF Annual Report 14 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 55 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 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 36 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal Year SOURCE WATER / GROUND WATER INVESTIGATIONS During State FY 2013, 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 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 State FY 2013 DWSRF Annual Report 15 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. To date, approximately 2,525 source water assessments have been prepared from July 1, 2001 through June 30, 2013. During State FY 2013, 82 SWAPs were completed for privately owned community ground water systems, 12 SWAPs for privately owned non-transient non-community ground water systems, and 22 SWAPs for privately owned transient non-community ground water systems. This activity for the privately owned ground water systems will continue in the future. 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 2013, 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 2013 DWSRF Annual Report 16 COMPREHENSIVE STATEWIDE WATER MANAGEMENT PLANNING In order to ensure the availability of high quality and reliable drinking water to the citizens of Georgia, EPD and Georgia's 10 Regional Water Planning Councils are required (by a 2008 joint House-Senate resolution that adopted a Comprehensive Statewide Water Management Plan) to periodically review, revise and implement 10 regional water plans (regional plans). An 11th regional plan is developed and periodically updated by the Metropolitan North Georgia Water Planning District under a separate statutory authority. These regional plans help Georgia manage its water supply in a sustainable manner and protect public health and natural ecosystems. The regional plans help 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. As required by the State Water Plan and in accordance with EPD guidance, regional plans are developed by Regional Water Planning Councils and then critically reviewed by EPD before adoption. The regional plans incorporate water resources assessments (i.e., surface water, groundwater, and water quality) that determine the sustainable capacities of Georgia's water resources, and 40 year projections of future water needs (i.e., municipal, industrial, agricultural, and thermo-electric). In those cases when the projected water need exceeds sustainable capacities, the regional plans identify appropriate water management strategies to be implemented by water users (including public water systems) in order to stay within sustainable capacities. The initial set of regional water plans were adopted in November 2011. The regional plans are scheduled to be updated in 2016. As provided in the State Water Plan, the regional plans are used to guide decisions regarding state grants and loans to public water systems, including DWSRF loans. EPD spent a combined total of $14,745,066 during State FY 2010 and FY 2011 to assist in the development of the regional plans. $2,596,752 of the total was funded by the DWSRF program. During State FY 2012, EPD paid another $1,217,170 from DWSRF funds to complete the regional plans and conduct water quality monitoring, training, and technical assistance associated with State and Regional Water Planning. In State FY 2013, EPD invoiced a total of $839,946 from DWSRF set-asides, mostly for EPD personnel working directly on regional water planning activities. 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 2013, 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. State FY 2013 DWSRF Annual Report 17 Under this contract, GAWP conducted numerous conferences and workshops focused on providing training and continuing education opportunities for professionals in the water industry. In addition, GAWP also conducted planning sessions for small, medium, and large utility Directors, as well as District Director meetings to better address needs of the profession around the State. 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 percent set-aside to support the establishment and implementation of wellhead protection programs. The following provides a summary of the activities funded under the 15 percent set-aside category. 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 continues to target public water systems with poor compliance records and to visit these systems on a more frequent basis than those not exhibiting compliance issues or reporting problems. During state FY 2013, EPD conducted a total of 628 sanitary surveys and performed a total of 7035 inspections of all types. EPD's Drinking Water Program (DWP) conducted a total of 46 sanitary surveys and performed 138 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 582 sanitary surveys and performed 565 on-site inspections of public water systems using groundwater. In addition, EPD personnel provided on-site technical assistance to 973 water system owners and operators and responded to 212 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 the period July 1, 2012 to June 20, 2013 approximately 937 water system projects for both new and expanding public water systems were reviewed and approved under EPD's regulatory authority, which includes the delegated authority. The approved 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, State FY 2013 DWSRF Annual Report 18 pumping facilities, water plant sludge/waste handling and disposal facilities, and water main additions and extensions to existing water distribution systems. EPD environmental engineers also conducted inspections of public water systems, including those under construction, to help ensure these systems have adequate technical capacity. WELLHEAD PROTECTION During State FY 2013, 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 2013, a total of 60 wellhead protection plans and 25 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. GEORGIA RURAL WATER ASSOCIATION (GRWA) During State FY 2013, EPD used 2 percent and 15 percent set-aside funds to contract with GRWA for small system technical assistance, SOC sample collection, and operator training. Under this contract, GRWA conducted a total of 16 workshops and trained approximately 355 water system owners and operators on new regulatory issues applicable to both ground water and surface water. An additional 2,589 onsite technical assistance contacts were made by GRWA that were not funded by the contract with EPD. As part of their technical assistance, education and outreach efforts, GRWA also offered two educational conferences in Helen (October 28-30, 2012) and Jekyll Island (May 19-21, 2013). During FY 2013, over 1,656 water and wastewater personnel and laboratory analysts attended these events. During State FY 2013, GRWA provided a total of 66 water classes to a total of 1,146 individuals on the following topics: Class IV Operator Training, Basic Water Training, Advanced Water Training, Backflow Training, Water Distribution Training, Water Lab Training, State FY 2013 DWSRF Annual Report 19 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 2013, GWWI conducted approximately 94 courses related to water, wastewater, and/or laboratory operations and successfully trained 1,401 operators. In the training sessions and workshops that were conducted at the annual, fall, and spring conferences during State FY 2013, GWWI's technical assistance, education and outreach efforts reached over 2,365 water and wastewater treatment plant operators, maintenance personnel, 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 2013 DWSRF Annual Report 20 ATTACHMENT 1 SOURCES AND USES OF FUNDS BY QUARTER DRINKING WATER STATE REVOLVING FUND FY2013 July 1, 2012 - June 30, 2013 Sources & Uses Quarter 1 Quarter 2 Quarter 3 Quarter 4 7/2012 - 9/2012 10/2012 - 12/2012 1/2013 - 3/2013 4/2013 - 6/2013 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) 5,665,140.05 1,165,143.49 4,930,083.11 1,110,960.00 35,629.01 24,892.83 9,662.12 1,814.68 64.28 5,225,275.86 1,189,958.33 2,781,895.69 616,538.77 43,839.05 30,781.24 11,739.47 2,065.50 73.24 7,904,924.59 1,081,521.22 5,268,869.42 774,253.56 58,253.33 27,297.99 10,188.54 1,750.92 62.74 8,151,967.70 $ 1,952,838.60 $ 33,692,763.07 $ 3,454,917.64 $ 79,324.08 $ 31,941.89 $ 9,669.31 $ 1,586.63 $ 56.89 $ Total Sources $ 12,943,389.57 $ 9,902,167.15 $ 15,127,122.31 $ 47,375,065.81 $ Uses DWSRF Disbursements - Cap Grant DWSRF Disbursements - State Match DWSRF Program Income DWSRF Non-Program Income DWSRF Set-aside (2%) DWSRF Administration (4%) DWSRF Set-aside (10% & 15%) 4,697,829.73 1,165,143.49 192,971.94 95,386.56 514,100.00 4,685,140.95 1,189,958.33 23,000.00 12,500.00 101,404.92 303,020.59 855,092.00 5,656,222.12 1,081,521.22 11,300.00 202,485.46 282,581.23 1,209,105.00 5,640,051.92 $ 1,952,838.60 $ 50,700.00 $ $ 227,742.42 $ 351,976.36 $ 1,932,197.00 $ Total Uses $ 6,665,431.72 $ 7,170,116.79 $ 8,443,215.03 $ 10,155,506.30 $ Total 26,947,308.20 5,389,461.64 46,673,611.29 5,956,669.97 217,045.47 114,913.95 41,259.44 7,217.73 257.15 85,347,744.84 20,679,244.72 5,389,461.64 85,000.00 12,500.00 724,604.74 1,032,964.74 4,510,494.00 32,434,269.84 Account DWSRF Federal Repayment Fund DWSRF State Match Repayment Fund Closing Fee Account (Non-program) Closing Fee Account (Program) *Balance as of 06/30/2013 State FY 2013 DWSRF Annual Report ATTACHMENT 2 DWSRF REPAYMENT ACCOUNTS DRINKING WATER STATE REVOLVING FUND Total $ FY2013 July 1, 2012 - June 30, 2013 Balance* 98,720,293.55 26,159,997.57 139,101.23 3,897,132.83 128,916,525.18 Investment Earnings Expected Uses of Funds 114,913.95 Project Funding 41,259.44 Project Funding 257.15 Water Supply Related Activities 7,217.73 DWSRF Activities $ 163,648.27 21 Community ALTO ASHBURN BALDWIN COUNTY BUTLER BUTTS COUNTY WSA CALHOUN* COOSA WATER AUTHORITY DEMOREST FRANKLIN COUNTY LEESBURG* LOUISVILLE* LYERLY MADISON COUNTY IDBA MCCAYSVILLE SINCLAIR WATER AUTHORITY THOMASVILLE THOMASVILLE UPSON COUNTY WAVERLY HALL WRENS* *Increase to an existing agreement ATTACHMENT 3 COMMUNITIES RECEIVING DWSRF FINANCIAL ASSISTANCE DRINKING WATER STATE REVOLVING FUND FY2013 July 1, 2012 - June 30, 2013 Project Number Population DW 11-026 2,500 DW 12-007 5,000 DW 09-039 18,162 DW 11-007 3,374 DW 11-022 14,900 DW 10-007 37,149 DW 11-001 3,944 DW 11-023 13,965 DW 12-002 20,285 DW 11-015 3,127 DW 10-009 2,712 DW 11-020 488 DW 11-024 1,391 DW 12-001 2,104 DW 10-022 23,114 DW 11-005 18,162 DW 11-017 18,162 DW 11-018 3,120 DW 11-021 DW 10-017 769 2,314 Zip Code 30510 31714 31061 31006 30233 30701 30514 30535 30521 31763 30434 30730 30633 30555 31061 31799 31799 30286 31831 30833 Project Type Total Assistant Agreements Additional Subsidization 539,863.00 Additional Subsidization 1,420,000.00 Additional Subsidization 5,266,563.00 Green 488,000.00 Green 950,000.00 Base SRF 1,650,000.00 Green 544,570.00 Additional Subsidization 3,300,000.00 Additional Subsidization 2,000,000.00 Base SRF 13,000.00 Base SRF 381,680.00 Additional Subsidization 894,400.00 Additional Subsidization 1,500,000.00 Additional Subsidization 5,650,000.00 Green 150,000.00 Additional Subsidization 9,800,000.00 Green 1,200,000.00 Additional Subsidization 1,800,000.00 Base SRF Base SRF 360,000.00 123,000.00 TOTAL $ 38,031,076.00 $ Loan Amount 392,154.00 1,136,000.00 4,766,563.00 341,600.00 665,000.00 1,650,000.00 435,656.00 2,850,000.00 1,600,000.00 13,000.00 381,680.00 645,109.00 1,050,000.00 5,150,000.00 120,000.00 9,300,000.00 1,200,000.00 1,300,000.00 360,000.00 123,000.00 33,479,762.00 Principal Forgiveness Amount Green Project Reserve Amount 147,709.00 - 284,000.00 - 500,000.00 - 146,400.00 488,000.00 285,000.00 950,000.00 - - 108,914.00 544,570.00 450,000.00 - 400,000.00 - - - - - 249,291.00 - 450,000.00 - 500,000.00 - 30,000.00 150,000.00 500,000.00 - - 1,200,000.00 500,000.00 - - - - - $ 4,551,314.00 $ 3,332,570.00 Binding Commitment Date 8/21/2012 11/20/2012 10/10/2012 12/12/2012 9/20/2012 4/29/2013 12/20/2012 12/5/2012 7/13/2012 1/2/2013 6/21/2013 8/20/2012 8/28/2012 2/1/2013 10/1/2012 11/8/2012 7/2/2012 9/6/2012 9/6/2012 6/3/2013 Projected Initiation of Operation Date 1/1/2014 3/1/2014 8/1/2014 5/1/2013 5/1/2013 1/1/2015 11/1/2014 1/1/2015 1/1/2015 3/1/2013 10/1/2014 11/1/2013 1/1/2015 1/1/2015 1/1/2014 1/1/2015 1/1/2014 1/1/2013 6/1/2013 1/14/2014 Loan Interest Rate 1.13% 1.82% 3.00% 1.13% 1.13% 1.40% 0.82% 1.63% 2.13% 0.82% 0.00% 1.13% 2.13% 1.82% 2.13% 2.13% 1.38% 1.13% 2.13% 3.00% Fees (%) Collected Outside the Principal of the Loan 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% State FY 2013 DWSRF Annual Report 22 ATTACHMENT 4 BINDING COMMITMENTS BY CATEGORY, POPULATION & DOLLAR VALUE DRINKING WATER STATE REVOLVING FUND FY2013 July 1, 2012 - June 30, 2013 Commitment # of Binding Assistance Amount Commitment by # of Binding Assistance Amount by Category Commitments* ($) Population Size Commitments ($) Planning and Design Only 0 Construction: 0 Less Than 501 501 to 3,300 2 1,254,400 4 10,007,543 Treatment 2 Transmission & Distribution 16 Source 5 Storage 3 7,300,000 3,301 to 10,000 21,469,483 10,001 to 100,000 3,987,680 100,001 and above 5,213,913 Total 4 6 0 16 $ 2,602,570 24,166,563 0 38,031,076.00 Purchase of System 0 Restructuring 0 Land Acquistion 0 Other 1 60,000 Total 27 $ 38,031,076.00 *Assistance Agreements may be counted in more than one category when they fund more than one category. State FY 2013 DWSRF Annual Report 23 Community Alto Ashburn Baldwin County Boston Butler Butts County Water and Sewer Authority Calhoun Camilla Carroll County Water Authority Chattooga County Colquitt Commerce Coosa Water Authority Demorest Dillard Donalsonville Eatonton-Putnam Water Sewer Authority Forsyth County Franklin County Jones County Lamar County Water and Sewer Authority Leesburg Louisville Lyerly Madison County Industrial Development and Building Authority Martin Martin Newton County Water and Sewerage Authority Nicholson Water Authority Royston Sinclair Water Authority Sky Valley Summerville Swainsboro Tallapoosa Thomaston Thomasville Thomasville Cusseta-Chattahoochee County Webster County Upson County Walthourville Washington Waverly Hall Waynesboro White County Water Authority Wrens State FY 2013 DWSRF Annual Report ATTACHMENT 5 DISBURSEMENT OF FUNDS BY QUARTER DRINKING WATER STATE REVOLVING FUND FY2013 July 1, 2012 - June 30, 2013 Project # Quarter 1 Quarter 2 7/2012 - 9/2012 10/2012 - 12/2012 Quarter 3 1/2013 - 3/2013 Quarter 4 4/2013 - 6/2013 DW 11-026 140,124.22 DW 12-007 - DW 09-039 - DW 11-011 188,652.70 DW 11-007 - DW 11-022 - DW 10-007 88,631.21 DW 11-016 - DW 10-010 362,571.49 DW 10-002 218,842.93 DW 08-006 35,347.50 DW 10-023 - DW 11-001 - DW 11-023 - DW 10-003 - DW 11-014 52,722.65 DW 11-010 - DW 10-015 70,145.41 DW 12-002 - DW 09-030 621,236.78 DW 08-003 - DW 11-015 162,829.39 DW 10-009 - DW 11-020 - DW 11-024 - DW 11-004 290,241.25 DW 10-021 39,850.18 DW 10-026 462,952.35 DW 08-008 39,750.00 DW 10-019 - DW 10-022 - DW 10-018 1,672.19 DW 09-036 237,752.02 DW 09-034 6,719.40 DW 10-029 12,439.90 DW 10-012 972,151.88 DW 11-017 - DW 11-005 - DW 10-027 24,076.48 DW 11-006 16,555.00 DW 11-018 - DW 11-003 98,343.48 DW 09-026 1,138,356.52 DW 11-021 - DW 09-023 - DW 10-001 132,020.68 DW 10-017 458,947.80 Total $ 5,872,933.41 $ 214,106.00 379,159.53 574,349.00 849,791.40 109,279.86 79,943.15 259,201.42 154,450.92 7,985.00 159,761.38 272,600.28 238,893.66 82,562.68 68,300.00 183,095.63 8,464.52 69,305.36 431,977.43 20,000.00 46,593.18 98,480.13 1,113,166.86 640,349.84 151,886.29 105,514.76 218,501.58 6,537,719.86 $ 185,449.32 441,889.00 56,550.00 18,901.77 628,747.34 179,635.27 269,243.47 6,125.41 69,410.58 588,816.19 68,952.55 93,766.00 653,794.94 263,794.89 699,523.47 131,182.11 41,124.63 338,071.70 456,260.08 103,735.51 48,303.98 30,007.57 11,772.00 70,052.45 6,300.00 86,464.87 367,795.16 269,732.59 42,123.60 108,036.07 53,421.42 6,388,983.94 $ 153,013.61 $ 126,920.00 $ 727,679.70 $ - $ 27,784.75 $ 66,942.57 $ 160,289.54 $ 674,434.02 $ 105,767.87 $ 40,445.21 $ - $ - $ 33,228.00 $ 1,289,976.45 $ - $ - $ 407,646.38 $ - $ 507,657.66 $ 19,225.00 $ 286,961.22 $ - $ 40,275.00 $ 214,265.61 $ 1,039,824.49 $ 1,000.00 $ 40,435.11 $ - $ - $ - $ 137,843.41 $ - $ - $ - $ - $ - $ - $ 13,092.19 $ - $ - $ 319,037.98 $ - $ 532,957.37 $ 28,864.27 $ - $ 53,851.16 $ - $ 7,049,418.57 $ 24 Total 478,587.15 782,915.00 784,229.70 207,554.47 27,784.75 695,689.91 807,715.55 1,518,026.49 1,318,130.76 374,693.41 184,701.23 259,201.42 33,228.00 2,033,243.56 7,985.00 281,436.58 501,412.38 70,145.41 1,434,052.88 1,143,150.33 986,484.69 376,574.18 81,399.63 620,637.31 1,496,084.57 578,072.39 137,053.79 462,952.35 109,055.36 461,985.00 149,615.41 21,672.19 284,345.20 76,771.85 12,439.90 972,151.88 6,300.00 13,092.19 24,076.48 201,500.00 1,800,000.00 98,343.48 2,581,396.32 28,864.27 194,009.89 399,422.67 730,870.80 25,849,055.78 ATTACHMENT 6 COMPARISON OF PROJECTED VERSUS ACTUAL DISBURSEMENTS DRINKING WATER STATE REVOLVING FUND FY2013 July 1, 2012 - June 30, 2013 Projected Disbursements Quarter 1 7/2012 - 9/2012 Projected FY2013 DWSRF Disb. from 2011 IUP Projected FY2013 DWSRF Disb. from 2012 IUP 5,475,000.00 5,302,000.00 Total Projected Disbursements for FY2013 $ 10,777,000.00 Quarter 2 10/2012 - 12/2012 5,302,000.00 $ 5,302,000.00 Quarter 3 1/2013 - 3/2013 5,302,000.00 $ 5,302,000.00 Quarter 4 4/2013 - 6/2013 5,302,000.00 $ 5,302,000.00 Total $ 5,475,000.00 $ 21,208,000.00 $ 26,683,000.00 Actual FY2013 DWSRF Disbursements $ 5,872,933.41 $ Percent Disbursed of Projected 54% 6,537,719.86 $ 6,388,983.94 $ 7,049,418.57 $ 25,849,055.78 123% 121% 133% 97% State FY 2013 DWSRF Annual Report 25 ATTACHMENT 7 PROJECTS INITIATING OPERATION DRINKING WATER STATE REVOLVING FUND FY2013 July 1, 2012 - June 30, 2013 Community BANKS COUNTY COLQUITT COMMERCE FORSYTH COUNTY FRANKLIN COUNTY LEESBURG MADISON COUNTY IDBA MARTIN NEWTON COUNTY WSA ROSWELL ROYSTON SKY VALLEY SUMMERVILLE THOMASTON WAYNESBORO WEBSTER COUNTY Project Number DWSRF Assistance Amount DW 09-015 2,591,600.00 DW 08-006 791,068.00 DW 10-023 DW 10-015 575,000.00 130,000.00 DW 09-043 1,082,290.00 DW 11-015 664,480.00 DW 10-028 2,014,136.00 DW 11-004 1,000,000.00 DW 10-026 3,100,000.00 DW 10-011 1,500,000.00 DW 10-019 461,985.00 DW 10-018 1,200,000.00 DW 09-036 2,484,448.00 DW 10-012 1,900,000.00 DW 09-023 DW 11-006 Total $ 979,000.00 201,500.00 20,675,507.00 $ Amount Disbursed 2,591,600.00 791,068.00 575,000.00 130,000.00 1,082,290.00 664,480.00 2,014,136.00 1,000,000.00 2,458,189.39 1,496,258.50 461,985.00 1,200,000.00 2,484,448.00 1,900,000.00 979,000.00 201,500.00 20,029,954.89 Percentage Disbursed 100% 100% 100% 100% 100% 100% 100% 100% 79% 100% 100% 100% 100% 100% 100% 100% 96.9% Binding Commitment Date 11/24/2009 10/25/2009 3/4/2011 6/6/2011 8/9/2011 11/2/2012 5/16/2011 4/20/2012 5/23/2011 1/4/2011 5/22/2012 3/15/2011 1/7/2011 12/16/2010 2/23/2011 4/2/2012 Initiated Loan Interest Operation Date Rate 07/01/2012 3.00% 04/01/2013 0.00% 11/01/2012 3.00% 10/01/2012 3.00% 07/01/2012 0.00% 05/01/2013 2.00% 07/01/2012 3.00% 06/01/2013 3.00% 08/01/2012 3.00% 09/01/2012 3.00% 04/01/2013 1.13% 01/01/2013 3.00% 01/01/2013 3.00% 08/01/2012 3.00% 02/01/2013 03/01/2013 0.00% 2.00% State FY 2013 DWSRF Annual Report 26 ATTACHMENT 8 ADMINISTRATIVE & SET-ASIDE EXPENSES BY CATEGORY DRINKING WATER STATE REVOLVING FUND FY2013 July 1, 2012 - June 30, 2013 Set-aside Category SRF Amount Expended 2% Set-aside Small System Technical Assistance Subtotal $ 724,605.00 724,605.00 4% GEFA/EPD Administration Personnel Subtotal $ 1,032,965.00 1,032,965.00 10% PWSS Set-aside PWSS Administration SWP Technical Assistance Capacity Development Subtotal $ 669,848.00 135,585.00 633,692.00 1,439,125.00 15% Local Assisitance Set-aside Wellhead Protection Programs Capacity Development Subtotal $ Total $ 1,090,374.00 1,980,995.00 3,071,369.00 6,268,064.00 State FY 2013 DWSRF Annual Report 27 ATTACHMENT 9 DBE UTILIZATION DRINKING WATER STATE REVOLVING FUND April 1, 2012 - March 31, 2013* Semi-Annual Dates Summaries MBE ($) WBE ($) (April 1, 2012 - September 30, 2012) (October 1, 2012 - March 31, 2013) 109,061.63 53,780.00 96,730.60 $ 417,134.79 $ TOTAL PERCENTAGE GOAL PERCENTAGE ACTUAL** $ 162,841.63 $ 513,865.39 $ 4.00% 4.00% 0.65% 2.06% *DBE information is provided on a semi-annual basis to EPA **Percentage Actual is calculated by dividing the DBE funds disbursed by the total DWSRF funds disbursed in the same period TOTAL ($) 205,792.23 470,914.79 676,707.02 8.00% 2.72% State FY 2013 DWSRF Annual Report 28 Capitalization Grant 2012 Funds Available 2012 Funds Spent % of Funds Spent 2011 Funds Available 2011 Funds Spent % of Funds Spent 2010 Funds Available 2010 Funds Spent % of Funds Spent Total Funds Available Total Funds Spent Total % of Funds Spent ATTACHMENT 10 DWSRF CAPITALIZATION GRANTS AVAILABLE & SPENT DRINKING WATER STATE REVOLVING FUND As of June 30, 2013 Project Funds 14,633,520.00 0% 2% Set-aside 424,160.00 0% 4% Set-aside 848,320.00 0% 10% Set-aside 2,120,800.00 48,603.12 2% 15% Set-aside 3,181,200.00 22,500.00 1% Total Funds 21,208,000.00 71,103.12 0% 15,355,260.00 9,191,902.94 60% 445,080.00 121,402.04 27% 890,160.00 225,867.44 25% 2,225,400.00 1,049,096.00 47% 3,338,100.00 2,861,510.00 86% 22,254,000.00 13,449,778.42 60% 22,128,990.00 641,420.00 1,282,840.00 3,207,100.00 4,810,650.00 32,071,000.00 22,128,990.00 641,420.00 787,525.13 3,207,100.00 4,810,650.00 31,575,685.13 100% 100% 61% 100% 100% 98% $ 52,117,770.00 $ 1,510,660.00 $ 3,021,320.00 $ 7,553,300.00 $ 11,329,950.00 $ 75,533,000.00 $ 31,320,892.94 $ 762,822.04 $ 1,013,392.57 $ 4,304,799.12 $ 7,694,660.00 $ 45,096,566.67 60% 50% 34% 57% 68% 60% State FY 2013 DWSRF Annual Report 29