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ADWF Loan and Project Documentation Process

The following outline lists items required at the various stages of the project life

Alaska Drinking Water Fund

Environmental Review

An environmental review is required for all construction projects receiving assistance from the SRF Program. Additional information about the environmental review process is summarized in the following document:

Environmental and Cultural Reviews

To initiate the environmental review process for a project, please complete the Environmental Review Checklist.

Environmental Review Checklist

Financial Capacity Assessment (FCA)

The SRF Program completes a financial capacity assessment for each applicant prior to executing a loan agreement. This assessment must demonstrate that the borrower has the financial capability to properly operate the utility and to repay the loan.

To initiate the financial capacity review, please contact the SRF Program project engineer assigned to your community. Information needed to begin the financial review process includes audited financial statements for the last three years and the current year budget. This process must be completed prior to executing a loan agreement.

Application

This is an online loan application form which can be accessed through the department's website. A complete Application Packet (OASys) is required prior to executing an agreement. The following are key items needed for application submission

Resolution

The local governing body has authorized an appropriate official to apply for and execute the loan document. This can be done by separate ordinance or resolution to apply for and/or then accept a loan offer. Sample Resolution 1 (PDF) and Sample Resolution 2 (PDF)

Attorney Certification

An attorney certify that the community (or utility) has legal authority to incur debt for this specific project for the dollar amount of this loan. Example 1 (PDF) and Example 2 (PDF)

EPA Form 6600-06 / Disclosure of Lobbying Activities

The anti-lobbying certification with the EPA Form 6600-06 (PDF) is a requirement for entering into a financial agreement with the Department. If a borrower engages in any lobbying activities, the Disclosure of Lobbying Activities (PDF) is also required.

Useful Life Certification

For loans with construction improvements, a minimum useful life of the improvements must be certified by an Alaska registered professional engineer. Useful Life Certification (PDF)

Drinking Water System Capacity Assessment

The Capacity Assessment Worksheet (PDF) information provides us the technical, financial and managerial capabilities of the water system, for assessing a systems long-term operation capabilities.

Green Project Assessment Forms (if applicable)

If a project has an identified Green Project component, a Green Project Assessment form needs to be done at the submission of the application. Also, it may be necessary to provide additional documentation to support a necessary business case on the green improvement such as for energy or water savings.

Engineering Cost Estimate

This cost estimate supports the dollar amount requested for construction as part of the loan project cost summary. Engineering Cost Estimate Example (XLS)

Current User Rates/Ordinance

Provide current user rates and enacting ordinance for the utility receiving the loan funding. Sample Water Ordinance (PDF)

Force Account Labor Worksheet

Required only for force account construction projects and/or administrative staff time that is charged to the loan. Force Account Labor Worksheet (PDF)

Planning/Design

If a community wants loan reimbursement for engineering planning or design costs, the procurement and accounting documents must be submitted for review and concurrence.

Professional Service Contract

Engineering and/or design contract is submitted for approval, including all amendments. SRF Program approval is required prior to making any disbursements. Submittal of Request For Proposal Document (PDF) to the SRF Program before solicitation is recommended, along with subsequent award and contract documents. Example Professional Design Services Agreement (PDF)

Planning Design Study

For a design/study loan to receive full funding, a final report / study or planning / design document(s) must be submitted for acceptance.

Pre-Construction

Plans & Specs

Plans and specifications must be submitted to ADEC for an Approval to Construct. Start of construction prior to receiving Plan & Spec review may jeopardize the loan funding. Example Approval to Construct Document (PDF)

Bid Packet

Bid packet submission is required to the SRF Program for concurrence on all bids submitted including signed copies of all documents for selected contractor. Documents include but are not limited to, Invitation to Bid, Bid Form, Bid Bond, Performance Bond, Notice of Award and debarment check.

Loan requirements noted below need to be included in the bid documents for the work to be loan eligible.

Special Davis-Bacon Construction Contract Language Requirements

Invitation to Bid documents need to include both Federal and State Department of Labor (DOL) Davis Bacon wage rates, with the higher of the two wages paid for related work completed.

Disadvantaged Business Enterprises (DBE) Forms

For equivalency projects beginning with the SFY 14 Intended Use Plan and projects with funding subsidy. Good Faith Effort and Contract Administration Requirements.

American Iron & Steel

Use of iron and steel products produced in the United States are required for all construction projects. Additional guidance and requirements can be referenced through the following links.

Debarment

The US System for Award Management, SAM, should be used to check contractor debarrment at SAM.gov. However, EPA Debarrment Form 5700-49 may be accepted, but a check with the SAM site is still required.

Procurements

Contract and/or material procurements exceeding $100,000 must be awarded through a competitive bidding process, or an appropriate alternative method that has been approved by the SRF Program. Procurements $100,000 or less may be negotiated if the Department approves the solicitation and negotiation procedures. Example equipment RFP (PDF)

Approval to Construct / Plan & Specification Approval

Regulatory Approval to Construct

This form is provided for each project by the Wastewater Discharge Authorization Program for the Alaska Drinking Water Fund upon completion of a successful plan review by the State of Alaska.

MG&L Plans & Spec Eligibility Approval

Plans & specifications are submitted to the assigned MG&L project engineer for approving eligibility of bid specifications and proposed work on plans.

Environmental Notice

Environmental Review and supporting documentation should be completed and submitted to ADEC. A determination and public notice must be issued before construction can commence. See "environmental review" under "Pre-Applications" for more details.

Construction

Construction Contract

A fully signed copy of the construction contract, bid tabulations, and winning bid packet to be submitted to the SRF Program for review and concurrence. See "Bid Packet" section under "Pre-Construction" for more details.

Notice of Award and City Council/Assembly Resolution

Upon receiving notice of construction award, the local governing body must authorize an appropriate official to execute the loan document. This can be done by separate ordinances or resolutions to apply for and/or then accept a loan offer. Example Resolution (PDF)

Notice to Proceed

Notice to Proceed must be given by community to contractor after Approval to Construct is issued, or the eligibility of the project could be jeopardized. Example NTP Letter (PDF)

Change Orders

Executed change orders with supporting documentation must be submitted to the SRF Program for approval. If eligibility of the work is a concern, draft copies should be provided for pre determination of work for loan reimbursement.

Project Inspections

Project inspectors require submission of a resume or statement of qualifications for the SRF Program approval.

Project Performance

Criteria which are used to certify the successful completion of the project must be submitted after Plans & Specs approval for review to ensure they are sufficient for the project.

A one year project performance period is required once construction is complete to verify if a loan facility is operating according to the established performance criteria. The performance period begins on the date of Initiation of Operation, and ends exactly one year later. During the one year period the Community will verify the facility’s performance, and on or before the anniversary date complete a Performance Certificate for the project.

Project Performance Criteria

The Community must establish performance criteria and objectives. The criteria should be accepted prior to Initiation of Operation, and should at a minimum show that the project meets permit conditions (if applicable), and/or meets other performance standards found to satisfy this requirement. (example provided)

Initiation of Operation</em

A determination date of Initiation of Operation is typically issued when the project is considered Used and Useful, or in other words sufficiently complete to put into operation. (example provided)

Approval to Operate

Submission of either an Approval to Operate, or an Interim Approval to Operate is authorized to the project by the DEC Division of Environmental Health Drinking Water Program upon completion of the project and subsequent to receiving the record drawings.

Disbursements

Invoices

Invoices and proof of payment must be submitted along with disbursement requests which support all costs. Alternative methods for documenting costs might be considered but need approval by the MG&L project engineer.

All contract work must be approved by DEC.

Disbursement Request

A completed copy, signed by a recognized community authority, must be submitted with each disbursement request. Effective July 1, 2016, all disbursement requests should be made electronically through OASYS.

Invoice Tracking

Example of invoice tracking spreadsheet (XLSX)

Project Closeout

Record Drawings

Electronic copy of Record Drawings must be submitted to MG&L upon completion of the project. Additionally, drawings may be required for an Approval to Operate from the wastewater and/or drinking water permitting group.

Letter of Approval to Operate

A community must request approval to operate from the wastewater and/or drinking water permitting group.

Operations & Maintenance (O&M) Manual Docs

O&M documents must be submitted with a cover letter outlining the included manual or manual updates. Example O&M Letter (PDF)

Final Disbursement Request

Same form as Disbursement Request with "Final Pay Request, please deobligate..." box checked. Effective July 1, 2016, all disbursement requests should be made electronically through OASYS.

Loan Repayment Schedule

A project's loan repayment schedule is calculated once its final disbursement request is received and all project costs known, or prior to the first loan repayment date. Loan repayments must begin one year from the Initiation of operation date or earlier.

Project Performance Certification

Community representative affirms that following the warranty period the project either did/did not meet the project performance criteria

Form must be signed by the engineer with oversight during project construction.

Audit

All projects are subject to a DEC and EPA audit. The MG&L program Municipal Administrative Team group needs to be notified for scheduling the project audit.

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