California Department of Public Health Webcast

1. California Department of Public Health Webcast Evaluation and Design of Small Water Systems Cost Estimating and SWS Grants/Funding Dale Newkirk, P.E. & Professor Jeannie Darby

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

3. Cost Estimating for SWS

4. Sources of Cost Information • Technologies and Costs Document for the Final Long Term 2 Enhanced Surface Water Treatment Rule and Final Stage 2 (Dec 2005) Disinfectants and Disinfection Byproducts Rule • Journal articles, papers, reports. • Other Engineering Reports performed recently • RS Means and other cost estimating tools • Discussion with water agencies in the area • Contact the vendors (AWWA Sourcebook) • Contact the contractors

5. Materials markets are fluctuating. Steel and other metals are difficult to project. Vendor quotes usually are the best source of current information. Fluctuations in cost

6. How does this impact cost? Example: Steel storage tanks

7. Economy of Scale

8. Economy of Scale

9. Step1-Provide a Scope for Yourself • What problem are you solving? • Is there an opportunity to consolidate? • Is there an opportunity to find a new source? • What needs replacement? Provide a list. • What is new? Provide a list. • Provide rough layouts. • Is there enough room on-site? • Does it require a building? • Is there enough power on-site?

10. Step 1-Provide a Scope for Yourself • Are there sanitary hazards near-by? • Are there similar facilities near-by that you can visit? • Are their sensitive environmental issues? • Is it remote? • Is availability of telephone lines for telemetry a problem? • Are there all year roads? • How will you handle wastes generated? • Avoid temptation to use band aids (solve the issue for next 20 years) • How available are skilled operations staff? • Remember you can be held liable for your decisions.

11. Step 2-Provide Rough Layouts Storage Operations Building 60’ 50’ 1500’ Maintenance

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

13. Step 4-Create a Spreadsheet and obtain cost data

14. Add Contingencies, etc.

15. Step 5- Summarize your cost

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

17. Cost data from reports

18. Cost data from reports

19. Treatment Cost Comparisons

20. Cost of GAC

21. O&M Costs

22. Chemical Costs

23. Pilot Testing Costs

24. Land Cost

25. Membrane Costs

26. Homespring UF Membranes

27. Homespring Membranes

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

29. Membrane Replacement Costs

30. Bag and Cartridge Filter Pumping Costs

31. Well Costs Note: Actual costs should be verified by local drilling company

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

33. Pumps • Check with pump supplier. • General rule of thumb is $1000 installed for smaller size range around 50 gpm dual pumps. • General rule of thumb is $10,000 to $15,000 for 100 gpm dual pumps. • Allow $15,000 for a PG&E power drop if power is not available (200 foot range).

34. Pipe Installation • Check with local contractor. • Rule of thumb for 4 to 6 inch range is $40 per foot. • Rule of thumb for 8 and 10 inch size is $50 to $60 per foot. • Rule of thumb for 12 inch is $100 per foot. • This includes pipe fittings. • Add 25% for seismic installation.

35. Other Water System Components • Use $5,000 for hydrant installation. • Pressure regulators including box cost $25,000 per unit (8 inch pipe size range-regulator is actually 3 inch range). • Household connection cost $1,500 including meter per connection installed.

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

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

38. O & M Costs

39. Grant Assistance to SWS

40. Listing of Grant Funding Sources • American Recovery and Reinvestment Act of 2009 • Proposition 84 • Proposition 50 • Proposition 13 • Community Development Block Grants • Native American Grants • USDA Grants • State Revolving Fund Loans/Grants http://www.cdph.ca.gov/certlic/drinkingwater/Pages/DWPfunding.aspx

41. The American Recovery and Reinvestment Act of 2009 (ARRA) California Department of Public Health Safe Drinking Water State Revolving Fund

42. ARRA Temporarily Creates a Distinct “Program” Within the Base SRF Program BASE SRF PROGRAM ARRA “program” - Some base program provisions +Special ARRA provisions

43. Focus & Objectives Differ from Base SRF Program • Key objective is to preserve and create jobs and promote economic recovery • Priority for projects ready to start construction within 120 days • 50% of funds for additional subsidy • 20% of funds for “green” projects • Within 1 year of enactment, all funds must be committed to projects under construction or having awarded contracts for construction

44. Key Perspective • ARRA appropriations are IN ADDITION TO base SRF program appropriations • ARRA is not focused on building the corpus of the funds • ARRA is focused on quickly delivering assistance to “ready to go” projects • Job creation and preservation • Additional subsidy (MINIMUM of 50% of cap grant)

45. New ARRA SRF requirements • Davis Bacon: • Davis-Bacon Act wage rules apply to all assistance agreements made in whole or in part with funds appropriated by the ARRA. • Department of Labor provides prevailing wage rates and instructions for reporting.

46. ARRA Requirements cont…. • Iron and Steel • All of the iron, steel, and manufactured goods used in a project must be produced in the United States. • Administrator of EPA may waive this requirement if : • Inconsistent with the public interest • Sufficient and reasonably available quantities, of satisfactory quality are not produced in the US • Use of US manufactured products will increase project cost by >25% • Must apply consistent with international agreements.

47. ARRA Requirements cont…. • Green Project Reserve (GPR): “To the extent there are sufficiently eligible project applications, not less than 20 percent of the funds appropriated herein for the ARRA funds shall be for projects to address green infrastructure, water or energy efficiency improvements or other environmentally innovative activities”

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

49. DWSRF Loan Rates Current interest rate for 2009 = 2.5017%

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