HomeMy WebLinkAbout0342 - WA State Dept of Health - Agreement - Edwards Springs Drinking Water Fund Loan 97-78897-055,
DRAFT DRINKING WATER STATE REVOLVING FUND
LOAN AGREEMENT
97·78897-055
CITY OF MARYSVILLE
PART I: ENTIRE AGREEMENT
This agreement, and incorporated attachments, contains all terms and conditions agreed to by the
DEPARTMENT and the BORROWER. This contract consists of ten pages and four attachments.
ATTACHMENT I: SCOPE OF WORK, consists of a description of local project activities,
certification of the projecfs useful life, and identification of estimated project costs and fund sources
and is, by this reference, incorporated into this agreement as though set forth fully herein. In
addition,ATTACHMENT II: ATTORNEY'S CERTIFICATION, ATTACHMENT III:FEDERAL AND
STATE REQUIREMENTS, and ATTACHMENT IV: SMALL AND DISADVANTAGED BUSINESS
UTILIZATION REQUIREMENTS are by this reference incorporated into this agreement.
The DEPARTMENT and the BORROWER have executed this agreement as of the date and year
last written below.
DEPARTMENT OF COMMUNITY, TRADE
AND ECONOMIC DEVELOPMENT
Steve Wells
Director. Local Government Division
Title
Date
BORROWER
Name
Mayor
Title
November 23,1998
Date
91-6001459
Federal Taxpayer Identification Number
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Date
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PART II: INTRODUCTION
This loan agreement is made and entered into by and between the DEPARTMENT OF
COMMUNITY, TRADE AND ECONOMIC DEVELOPMENT, (or its successor) a department of the
state of Washington (referred to as the "DEPARTMENT") on behalf of the PUBLIC WORKS
BOARD (referred to as the "BOARD"), or its successor, and the City of Marysville (referred to as
the "BORROWER").
The DEPARTMENT has received funds from the Washington State Legislature under the
authority of Chapters 70.119A.170 and 43.155.050 RCW to provide financial assistance to
selected borrowers for repairs or improvements of domestic water systems to meet the
requirements of the Federal Safe Drinking Water Act Amendments of 1996. Acting under the
authority of Chapters 70.119A.170 and 43.155.040, the BOARD has selected the BORROWER to
receive a Drinking Water State Revolving Fund loan for an approved project.
~.
PART III: PURPOSE
The DEPARTMENT and the BORROWER have entered into this agreement to undertake a local
project which furthers the goals and objectives of the Washington State Drinking Water State
Revolving Fund Program. The project will be undertaken by the BORROWER and will include the
activities described in ATTACHMENT I: SCOPE OF WORK, and in the Drinking Water State
Revolving Fund Loan Application submitted to the BOARD by the BORROWER and upon which
this agreement is based. The assisted project must be undertaken in accordance with PART IV:
TERMS AND CONDITIONS and all applicable federal, state and local laws and ordinances,
including but not limited to those specificallyenumerated in ATTACHMENT III.
PART IV:TERMS AND CONDITIONS
The parties to this agreement agree as follows:
4.01 Rate and Term of Loan
The DEPARTMENT, using funds received from the Drinking Water Assistance Account, shall loan
the BORROWER a sum not to exceed $556,663.50. The interest rate shall be five percent (5%)
per annum on the outstanding principal balance. The term of the loan shall not exceed 20 years,
with the final payment due October 1,2018.
4.02 Local Project Share
The BORROWER pledges to spend on the project an amount of locally-generated revenue not
less than 10% (ten percent) of the total eligible portion of the project cost not funded by federal or
state grants as identified in ATTACHMENT I: SCOPE OF WORK, to be verified at the time of
project close-out.
Local project share must consist of expenditures related only to project activities described in
ATTACHMENT I: SCOPE OF WORK. These expenditures may be made up to twelve (12)
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months prior to the loan pre-application date (October 1, 1997) and verified at the time of project
close-out.
4.03 Disbursementof LoanProceeds
The DEPARTMENT shall issue warrants to the BORROWER for payment of allowable
expenses incurred by the BORROWER while undertaking and administering approved project
activities in accordance with ATTACHMENT I: SCOPE OF WORK. The total Drinking Water
State Revolving Fund Loan shall not exceed ninety percent (90%) of the eligible actual project
costs.
The loan funds will be disbursed to the BORROWER as follows:
The disbursement of loan proceeds shall be initiated by the BORROWER on a Washington
State Invoice Voucher form provided by the DEPARTMENT. All expenses must have been
incurred by the BORROWER at the time of voucher submittal. Disbursement requests must be
supported by bills or receipts as evidencethat costs have been incurred.
A loan fee will be assessed in the following manner:
1. The first request for reimbursement shall include an amount equal to 1 1/2% of the loan
amount. This amount is non-refundable.
2. The final request for reimbursement at close-out shall include an amount sufficient to bring
the total loan fee assessment to 3% of the actual final loan amount.
In no case shall loan funds be disbursed for construction activities until the following conditions
have been met:
• The BORROWER issues a Notice to Proceed which follows the formal award of a
construction contract;
• The BORROWER has completed the State Environmental Review Process;
• The Washington State Department of Health has approved a project report for the activities
described in ATTACHMENT I: SCOPEOF WORK.
At the time of project completion, a Close-out report (refer to section 4.18 for Close-out Report)
shall be submitted to the DEPARTMENT by the BORROWER certifying total actual project
costs. The Close-out Report shall include copies of the approved closure reports from the
Department of Revenue and the Department of Labor and Industries.
The final Drinking Water State Revolving Fund loan disbursement shall not bring the total loan
in excess of ninety percent (90%) of the eligible project costs or the total of $556,663.50
whichever is less, nor shall this disbursement occur prior to the completion of all project
activities and clearance of all Close-out documents from the Depertment of Revenue and the
Department of Labor and Industries. The Close-out Report shall serve as a contract
AMENDMENT for determining the final loan amount and local share.
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4.04 Time of Performance
The BORROWER shall begin the activities Identifiedwithin ATTACHMENT I: SCOPE OF WORK
no later than ninety (90) days after loan agreement execution, and reach project completion no
later than thirty-six (36) months after the date of agreementexecution.
Failure to perform within the time frame described in the preceding paragraph may constitute
default of this agreement and require the immediate repayment of any loan funds disbursed. In
the event of extenuating circumstances, the BORROWER may request, in Writing,that the
BOARD extend the deadline for project completion. The BOARD may, by a two-thirds vote,
extend the time of completion.
The term of this agreement shall be for the entire term of the loan, irrespective of actual project
completion, unless terminated sooner as provided herein.
4.05 Repayment
The first loan repayment under this agreement is due October 1, 1999, and subsequent
installments are due on October 1 of each year during the term of the loan. The first repayment
under this agreement shall consist of interest only at the rate of five percent (5%) per annum,
calculated on a 360-day year of twelve 30-day months, applied to funds received from the
DEPARTMENT. Interest will begin to accrue from the date the DEPARTMENT issues each
warrant to the BORROWER. Subsequent repayments shall consist of the principal due divided by
the loan term remaining plus interest on the unpaid balance of the loan. The final payment shall
be an amount sufficient to bring the loan balance to zero.
The BORROWER has the right to repay the unpaid balance of the loan in full at any time, and the
right to repay at a faster rate than is provided in this agreement, provided that any such payment
must equal or exceed the amount normally due on an annual basis.
The BORROWER will repay the loan in accordance with the preceding conditions through the use
of a check, money order, or equivalent means made payableto the DEPARTMENT and sent to:
Department of Community, Trade and EconomicDevelopment
Administrative Services Division/Fiscal Unit
906 Columbia Street SW.
P.O. Box 48300
Olympia, Washington 98504-8300
4.06 Repayment Account
The BORROWER shall repay the loan solely from utility revenues,general obligation revenues, or
~Jl)1binaTIn thereof.~he name of the fund, account, or sub-accountshall be hi nil)1(()
LIt:?:1"1''1 fiN WIliK--.v
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4.07 Default in Repayment
Loan repayments shall be made to the DEPARTMENT in accordance with Section 4.05 of this
agreement. A payment not received within thirty (30) days of the due date shall be declared
delinquent. Delinquent payments shall be assessed a daily penalty beginning on the thirty-first
(31) day past the due date. The penalty will be assessed on the entire payment amount. The
penalty will be twelve percent (12%) per annum calculated on a 360-day year.
Upon default in the payment of any annual installment,the DEPARTMENT may declare the entire
remaining balance of the loan;together with interest accrued, immediately due and
payable. Failure to exercise its option with respect to any such repayment in default shall not
constitute a waiver by the DEPARTMENT to exercise such option for any succeeding installment
payment which may then be in default. The BORROWER shall pay the costs and reasonable
legal fees incurred by the DEPARTMENT in any action undertaken to enforce its rights under this
section.
4.08 Loan Security .~,
The BORROWER must select one of the following options for securing repayment of the ~n.
Please initial the appropriate option.
1.
OR
General Obligation:This loan is a general obligation of the BORRWER.
2.''/....Revenue Obligation:This option may be used only if the entire project
is a doriiETsiiCWater project..
This loan is a revenue obligation of the BORROWER payable solely from the net revenue of the
utility system indicated below. Payments shall be made from the net revenue of the utility after
the payment of the principal and interest on any revenue bonds, notes, warrants or other
obligations of the utility having a lien on that net revenue. As used here, "net revenue" means
gross revenue minus expenses of maintenance and operations. The DEPARTMENT grants the
BORROWER the right to issue future bonds and notes that constitute a lien and charge on net
revenue superior to the lien and charge of this loan agreement.
If selecting the revenue obligation,please choose and initial one of the following utility
systems:
Nothing in this section shall absolve the BORROWER of its obligation to make loan repayments
when due, and to adjust rates, fees, or surcharges, if necessary, to meet its obligations under
this agreement.
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4.09 Recordkeeping and Access to Records
The BORROWER agrees to keep such records as the DEPARTMENT may require. Such records
will include information pertinent to work undertaken as part of the project, including
demonstration of compliance with the terms and provisions of this agreement and all applicable
federal, state and local laws and ordinances. The BORROWER agrees to retain these records for
a period of three years from the date of project completion.
The DEPARTMENT and duly authorized officials of the state and federal govemments shall have
full access and the right to examine, copy, excerpt, or transcribe any pertinent documents, papers,
records, and books of the BORROWER and of persons, firms, or organizations with which the
BORROWER may contract, involvingtransactions related to this project and this agreement.
4.10 Reports
The BORROWER, at such times and on such forms as the DEPARTMENT or the BOARD may
require, shall furnish the DEPARTMENTwith such periodic reports as it may request pertaining to
the activities undertaken pursuant to this agreement including, but not limited to, quarterly
progress reports, MBElWBE status, the Close-Out Report, and any other matters covered by this
agreement. Failure to file periodic reports as requested may result in termination of this
agreement as per Section4.14.
4.11 Indemnification
The BORROWER will defend, protect, indemnify, save, and hold harmless the DEPARTMENT,
the BOARD, and the state of Washington from and against any and all claims, costs, damages,
expenses, or liability for any or all injuries to persons or tangible property, arising from the acts or
omissions of the BORROWER or any of its contractors or subcontractors, or any employees or
agents of either in the performanceof this agreement, however caused. Inthe case of negligence
of both the DEPARTMENT and the BORROWER, any damages allowed shall be levied in
proportion to the percentageof negligence attributable to each party.
4.12 Amendments.Modifications,and Waivers
Except for an increase in the amount of the loan governed by this agreement, the BORROWER
may request an amendment of this agreement for the purpose of modifying the SCOPE OF
WORK or for extending the time of performance as provided for in Section 4.04. No modification
or amendment resulting in an extension of time shall take effect until a request in writing has been
received and approved by the Board in accordance with Section 4.04. No amendment or
modification shall take effect until approved in Writing by both the DEPARTMENT and the
BORROWER and attached hereto. No conditions or provisions of this agreement may be waived
unless approved by the DEPARTMENT in writing.
4.13 Disputes
Except as otherwise provided in this agreement, any dispute concerning a question of fact arising
under this agreement that is not disposed of by this agreement shall be decided by a panel
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consisting of a representative of the DEPARTMENT, a representative of the BORROWER, and a
representative of the BOARD. The panel shall reduce its decision to writing and furnish a copy to
all parties to the agreement. The decision of the panel shall be final and conclusive.
This clause does not preclude the consideration of questions of law in connection with decisions
provided for in the preceding paragraph provided that nothing in this agreement shall be
construed as making final the decisions of any administrative official, representative, or board on a
question of law.
4.14 Termination for Cause
If the BORROWER fails to comply with the terms of this agreement, or fails to use the loan
proceeds only for those activities identified in ATTACHMENT I: SCOPE OF WORK, the
DEPARTMENT may terminate the agreement in whole or in part at any time. The DEPARTMENT
shall promptly notify the BORROWER in writing of its determination to terminate, the reason for
such termination, and the effective date of the termination. Upon termination of the loan
agreement, the DEPARTMENT shall declare the entire remaining balance of the loan, together
with any interest accrued, immediately due and payable.
4.15 Governing Law and Venue
This agreement shall be construed and enforced in accordance with, and the validity and
performance hereof shall be governed by, the laws of the state of Washington. Venue of any suit
between the parties arising out of this agreement shall be the Superior Court of Thurston County,
Washington. The prevailing party is entitled to recover costs in accordance with Washington
State Law (Chapter 4.84 RCW).
4.16 Severabilitv
If any provision under this agreement or its application to any person or circumstances is held
invalid by any court of rightful jurisdiction, this invalidity does not affect other provisions of the
agreement which can be given effect without the invalid provision.
4.17 Project Completion
The DEPARTMENT will require and notify the BORROWER to initiate a Close-out Report when
the activities identified in ATTACHMENT I: SCOPE OF WORK are completed. In the report, the
BORROWER will provide the following information to the DEPARTMENT:
1. A description of the actual work performed, in addition to a certified statement of the actual
dollar amounts spent, from all fund sources, in completing the project as described.
2. Certification that all costs associated with the project have been incurred. Costs are
incurred when goods and services are received and/or contract work is performed.
3. Copies of the approved closure reports from the Department of Revenue and the
Department of Labor & Industries, certifying that all sales taxes have been paid and
appropriate industrial insurance and prevailing wages have been paid.
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4.18 Project Close-out
In accordance with Section 4.03 of this agreement, the BORROWER will submit,together with the
Close-out Report, a request for the final draw. This disbursement shall not occur prior to the
completion of all project activities and clearance of all Close-out documents from the Department
of Revenue and the Department of Labor &Industries. The BORROWER shall be responsible to
ensure compliance with the Department of Revenue and the Department of Labor &Industries
requirements by their contractor(s).
4.19 Audit
Audits of the BORROWER'S project activities may be conducted by the Office of the State
Auditor. Audits costs are eligible project costs.
The BORROWER shall maintain its records and accounts so as to facilitate the
DEPARTMENT'S audit requirements.
The BORROWER is responsible for any audit exceptions incurred by its own organization.The
DEPARTMENT reserves the right to recover from the BORROWER all disallowed costs :
resulting from the audit.
BORROWERS expending $300,000 or more in any fiscal year in federal funds from all sources,
direct and indirect, are required to have an audit conducted in accordance with Office of
Management and Budget (OMB) Revised Circular A-133 "Audits of Institutions of Higher
Education and Other Non-Profit Institutions."
BORROWERS expending less than $300,000 or more in any fiscal year in federal funds from all
sources, indirect and direct, may have audits conducted by the Office of State Auditor (OSA) on
the normal cycle used by OSA.
4.20 Project Signs
If the BORROWER displays, during the period covered by this agreement, signs or markers
identifying those agencies participating financially in the approved project, the sign or marker must
identify the Washington State Public Works Board Drinking Water State Revolving Fund as a
participant in the project.
4.21 Utilization of Minoritv and Women Business Enterprises (MWBEl
The BORROWER is required to follow the steps identified in ATTACHMENT IV:SMALL AND
DISADVANTAGED BUSINESS UTILIZATION REQUIREMENTS. The goals for the utilization of
small and disadvantaged business are stated below:
.
Construction 10% MBE 6%WBE
Suoolies 10% MBE 6%WBE
Equipment 10% MBE 6%WBE
Purchased Services 10% MBE 6%WBE
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4.22 Small Business In Rural Areas
The BORROWER is required to follow the steps identified in ATTACHMENT IV:SMALL AND
DISADVANTED BUSINESS UTILIZATION REQUIREMENTS.The "Fair Share"percentage for
SBRAs is 0.5%
4.23 Nondiscrimination Provision
During the performance of this contract, the BORROWER shall comply with all federal and state
nondiscrimination laws, including, but not limited to chapter 49.60 RCW,Washington's Law
Against Discrimination,and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA).
In the event of the BORROWER'S noncompliance or refusal to comply with any applicable
nondiscrimination law, regulation,or policy, this contract may be rescinded,canceled,or
terminated in whole or in part, and the BORROWER may be declared ineligible for further
contracts with the DEPARTMENT.The BORROWER shall, however, be given a reasonable time
in which to cure this noncompliance.Any dispute of fact may be resolved in accordance with the
Section 4.13, Disputes.
4.24 Transfer of Ownership
During the term of this loan,any change in ownership of the water system(s)improved with
funds received by the BORROWER under this loan agreement must be approved in writing by
the BOARD.As a condition of approval,the BOARD reserves the right to demand payment in
full of the outstanding principal balance of the loan
PART V: SPECIAL ASSURANCES
The BORROWER assures compliance with all applicable federal, state and local laws,
requirements,and ordinances as they pertain to the design, implementation, and administration of
the approved project.Of particular importance are the following:
5.01 Biddinq Requirements
The BORROWER shall comply with the provisions of chapter 43.155.060 RCW regarding
competitive bidding requirements for projects assisted in whole or in part with money from the
Drinking Water State Revolving Fund program.
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5.02 Eligible Project Costs
The BORROWER assures compliance with WAC 399-30-030(3) which identifies eligible costs for
projects assisted with this loan.
5.03 Prevailing Wage
The BORROWER assures compliance with the prevailing wage laws of the Washington State
Public Works Act, chapter 39.12 RCW.
5.04 Federal and State Requirements
The BORROWER assures compliance with all applicable Federal and State requirements,
inclUdingbut not limited to those listed in Attachment III.
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c
DRINKING WATER STATE REVOLVING FUND
ATIACHMENT I: SCOPE OF WORK
LOAN NUMBER 97-78897-0501 055
Ael:l8Fil:l6 I 'tilitiQ€lflc CITY OF MARYSVILLE
(Recipient)
PFeSSl:lFe Upolade PffljeGt EDWARD SPRINGS RESERVOIR MODIFICATIONS,LINER AND COVER
(Project Title)REPLACEMENT
1. Provide a clear description of the project to be financed in part by a Drinking Water
State Revolving Fund loan. (Attach additional sheets if necessary):.
Replace the liner and cover on the existing 6.1 million gallon reservoir with
a new flexible liner and floating cover system using compatable materials.
The liner and cover materials will be anchored to a reinforced concrete
footing located along the reservoir perimeter.
2. The term of this loan will be based on an engineer's certification of the expected
useful life of the improvements, as stated below, or 20 years,whichever is less. If
the recipient prefers the term of its loan to be less than either 20 years or the useful
life of the improvements, the preferred loan term should be
indicated:20 years.
May 27,1998
(360)651-5100Telephone:
Date:
3. I,Robin D.Nelson,P.E.,licensed engineer, certify
that the average expected useful life for the improvements described above
Si9~:d:20 ,;JZ'1iJ
R:IDIV\LGAICIu\SRACONTRACn5RF ATTACH1.dot i EXPIRES:t 1/1./QQ,
R:IDIVlLGAICIUISRFlCONTRAcnSRF ATTACH1.dot
c
Scope of Work,DWSRF Loan Agreement Number 97-78897-050
Page 3
Calculating Local Percentage:
Notes:1.Expansion/Growth costs are not eligible for DWSRF funding.Please exclude any
expansion or growth related costs and funding before calculating the local percentage.
2.Grant funds can not be counted as local match.
Calculate as follows:
Total Local Revenue
DWSRF Construction Loan +Total Local Revenue =Local Percentage 10%
The local contribution must be at least ten percent (10%)
R:IDIVILGAICIUlSRAcoNTRAcnSRF ATIACH1.dol
Drinking Water State Revolving Fund
ATTACHMENT II:ATTORNEY'S CERTIFICATION
I am an attorney at law admitted to practice in the State of Washington and the duly appointed
attorney of the C(t.j 0.(./1!Ia'11 >vi lk
(the BORROWER);and
I have also examined any and all documents and records which are pertinent to the loan
agreement,including the application requesting this financial assistance.
Based on the foregoing, it is my opinion that:
1. The BORROWER is a public body,properly constituted and operating under the laws of the
State of Washington.empowered to receive and expend federal, state and local funds, to
contract with the State of Washington,and to receive and expend the funds involved to
accomplish the objectives set forth in their application.
2. The BORROWER is empowered to accept the Drinking Water State Revolving Fund financial
assistance and to provide for repayment of the loan as set forth in the loan agreement.
3.There is currently no litigation in existence seeking to enjoin the commencement or
completion of the above-described public facilities project or to enjoin the BORROWER from
repaying the Drinking Water State Revolving Fund loan extended by the DEPARTMENT with
respect to such project. The BORROWER is not a party to litigation which will materially
affect its ability to repay such loan on the terms contained in the loan agreement.
4.Assumption of this obligation would not exceed statutory and administrative rule debt
limitations applicable to the BORROWER.
L2~/C.~
"'Signature of Attorney
Name
d-/A~A~_--,-,--,-,....:..:.-_-=-__--,-,=-=-_
Address
Attachment III
Federal and State Requirements
1)Environmental Authorities
a) Archeological and Historic Preservation Act of 1974, Public Law 86-523 as
amended
b) Clean Air Act, Public Law 84-159 as amended
c) Coastal Barrier Resources Act, Public Law 92-583 as amended
d) Endangered Species Act, Public Law 93-205 as amended
e) Environmental Justice, Executive Order 12898
f)Floodplain Management, Executive Order 11934 as amended by Executive
Order 12148
g) Protection of Wetlands, Executive Order 11990
h) Farmland Protection Policy Act, Public Law 97-98
i) Fish and Wildlife Coordination Act, Public Law 85-624 as amended
j)National Historic Preservation Act of 1966, Public Law 89-665 as amended
k) Safe Drinking Water Act, Public Law 93-523 as amended
I) Wild and Scenic rivers Act, Public Law 90-542 as amended
2)Economic and Miscellaneous Authorities
a) Demonstration Cities and Metropolitan Development Act of 1996, Public Law 89-
754 as amended, Executive Order 12372
b) Procurement Prohibitions under Section 306 of the Clean air Act and Section 508
of the Clean Water Act, including Executive Order 11738,Administration of the
Clean Air Act and the Federal Water Pollution Control Ac with Respect to Federal
Contracts, Grants, or Loans
c) Uniform Relocation and Real Property Policies Act, Public Law 91-646 as
amended
d) Debarment and Suspension, Executive Order 12549
3)Social Policy Authorities
a) Age Discrimination Act of 1975, Public Law 94-135
b) Title VI of the Civil Rights Act of 1964, Public Law 88-352
c) Section 13 of the Federal Water Pollution Control Act Amendments of 1972,
Public Law 92-500 (the Clean Water Act)
d) Section 504 of the Rehabilitation Act of 1973, Public Law 93-112 (including
Executive Orders 11914 and 11250)
e) Equal Employment Opportunity, Executive Order 11246
f)Women's and Minority business Enterprise,Executive Orders 11625, 12138 and
12432
g) Section 129 of the Small Business Administration Reauthorization and
Amendment Act of 1988, Public Law 100-590
4)State Laws
a) Chapter 36.70A RCW, Growth Management Act
b) Chapter 39.80 RCW, Contracts for Architectural and Engineering Services
c) Chapter 39.12 RCW, Washington State Public Works Act
d) Chapter 43.20 RCW, State Board of Health
e) Chapter 43.70 RCW, Department of Health
f)Chapter 70.116 RCW, Public Water Systems Coordination Act of 1977
g)Chapter 70.119 RCW, Public Water Supply Systems Certification and Regulation
of Operations
h)Chapter 70.119A RCW, Public Water Systems, Penalties &Compliances
i)Chapter 246-290 WAC, Group A Public Water Systems
j)Chapter 246-291 WAC, Group B Public Water Systems
k)Chapter 246-292 WAC,Waterworks Operator Certification Regulations
I)Chapter 246-293 WAC,Water Systems Coordination Act
m)Chapter 246-294 WAC, Drinking Water Operating Permits
n)Chapter 246-295 WAC, Satellite System Management Agencies
0)Chapter 173-160 WAC,Minimum Standards for Construction &Maintenance of
Wells
p) Title 173 WAC,Department of Ecology Rules
q) Title 40 Part 141 Code of Federal Regulations, Federal National Primary Drinking
Water Regulations (Section Adopted by Reference)
· I
ATTACHMENT IV
SMALL AND DISADVANTAGED BUSINESS UTILIZATION REQUIREMENTS
Affirmative steps shall include:
1. Placing qualified small and minority businesses and women's business enterprises
on solicitation lists;
2. Assuring that small and minority businesses, and women's business enterprises are
solicited whenever they are potential sources;
3. Dividing total requirements, when economically feasible, into smaller tasks or
quantities to permit maximum participation by small and minority business, and
women's business enterprises;
4. Establishing delivery schedules, where the requirement permits, which encourage
participation by small and minority business,and women's business enterprises;
5. Using the services and assistance of the Small Business Administration, and the
Minority Business DevelopmentAgency of the Departmentof Commerce; and
6. Requiring the prime contractor, if subcontracts are to be let, to take the 5 affirmative
steps listed above.
APPENDIXB
WASHINGTON STATE DRINKING WATER STATE REVOLVING FUND
LOAN PRE-APPLICATION FORM
A separate application form must be submitted for each project.If you submit
applications for more than one project,make sure you use different project titles for
each.Please submit an Original plus 4 Copies for each application.Applications must
be submitted on or before October 1,1997.The pre-application will be considered
submitted if it is hand-delivered by 5:00 PM on October 1,1997,or postmarked by
October 1,1997,and mailed, at a minimum,first class.FAXED applications will not be
accepted.Pre-Applications postmarked or hand-delivered after this deadline will not be
eligible.
Washington State Departmentof Health
Drinking Water Division
DWSRF Program
PO Box 47822
Olympia,Washington 98504-7822
Phone:(360)664-9697
SECTION1:APPLICANT/SYSTEM BACKGROUND INFORMATION
Applicant: City of Marysville
Address: 80 Columbia Avenue
Marysville WA 98270
Phone Number:(360) 651-5100
Fax Number:(360) 651-5099
eMailAddress:
Contact Person:Larry Larson
Public Works Superintendent
Address: 80 Columbia Avenue
Marysville WA 98270
Phone Number:(360) 651-5100
Fax Number:(360) 651-5099
eMailAddress:
Project Title:Edward Springs Reservoir Modifications,Liner and Cover Replacement
Water System Name:City of Marysville
PublicWater System Identification Number:51900C
Water Systemis Located in:
County (Name):Snohomish
FederalCongressionalDistrict (Number):~
State Legislative District (Number):38 &39
Type of System:X Community Transient Noncommunity
__NontransientNoncommuntity
25
Type of Ownership:_X_Public Private For Profit __Private Nonprofit
Population Served by System:--l3i!li6!.:,4!.J7~2:.J(.!.192:9~2:l)_
Number of Service Connections on System:_1~O!!lI.!!88!:!;90!..l..(1!,;:9~9~2:L.)_
__1%to__50%to 99%100%
__0%
Percent of Services which are Metered:X
49%
Do all of your sources have a source meter?Yes X No
SECTION 2:PROJECT INFORMATION
June 1998Estimateddate when construction will begin:_--,!,!:!!,~!..!!;i~_
Project Purpose and Proposed Solution(s)(Check All That Apply/See Project Ranking Score
Sheet for Details):
X Proposed project will eliminate Microbial Risk by:
__New Source
__Source Reconstruction
__Disinfection Improvements
__Filtration
X Reservoir Covering
Proposed project will eliminate Acute Primary Chemical Risk by:
__New Source
__Source Reconstruction
__Treatment
__Proposed project will eliminate Chronic Primary Chemical Risk by:
__New Source
__Treatment
__Proposed project will eliminate Risk associated with Low Pressure by:
__Replacement Source
__Other Distribution Project
__Proposed project will eliminate Secondary Chemical/Sea Water Intrusion Risk
by:
__New Source
__Treatment
__Proposed project will provide Infrastructure Replacement or Conservation by:
__Installation of Meters
__Replacement of Infrastructure
__Installation of Pressure-Reduction Device(s)
26
Other Project Benefits Information (Check All That Apply):
__Project will bring system into compliance will all DOH compliance orders
_~Project will bring system into compliance with some but not all DOH compliance
orders.
__Project involves restructuring or has regional benefit
__Project involves merging of systems (Specify number of systems) _
__Project involves metering of all unmetered services
__Projects involes metering of all unmetered sources.
Affordability:
__Applicant chooses to not supply Affordability information and,therefore chooses
to not apply for bonus points associated with Affordability.
X Applicant is supplying Affordability information for consideration of receiving
Affordability bonus points, as follows:
388.00·"Average annual residential water rate =$_-'===--__per year per ERU·
·See Appendix D for information on calculating this rate.
···See attached Comprehensive Water Plan, Pg. 91
Median household income for calculation to be based on (check one):
__HUD Information (DOH will use Income Limits Tables)
__Census Tract information as follows:
Census Tract Number _
Median household income =$,per year
X Surveyor other information source as follows:
Source of lnformation'":Comprehensive Plan, Pg 6-6
(attached)April 1 1996
City of Marysville
Planning Department
Median household income =$_26,107 per year
"Include copy of data from surveyor other information
source.
27
SECTION 3: PLANNING INFORMATION
System has a current DOH-approved water system plan or small water system management
program?:X Yes No
If system has a current DOH-approved water system management plan or small water system
management program,is the proposed project identified in the capital facilities element of that
document and is the financing for that project covered in the financial element of that
document?:X Yes No
Project will include development of a new or amendment of an existing water system plan or
small water system management program:Yes X No
SECTION 4:PROJECT COSTS AND PROPOSED FUNDING SOURCES
Estimated Project Costs:
Construction $400,000
Engineering $130,000
WSP/SWSMP $0
Other (Contingency)+$53,000
Subtotal =$583,000
Loan Fee (3%of Subtotal)+$17,500
Total Project Cost =$600,500
Source of Information Used to Estimate Project Costs:
X Capital Improvement Plan
__Final Engineer's Estimate
__Previous Comparable Construction
__Facilities Plan
__Financial Assistance Form
__Other
__No Documentation Available
Proposed Project Funding:
State Revolving Fund
Applicant Matching Funds
Other Funds (List Sources)
$540,450
$60,050
$0
________+$0
Total Project Funding
28
=$600,500
SECTION 5:NARRATIVE DESCRIPTIONS
Provide a brief narrativedescriptionof funding strategy:
The City of MarysvillEl·intends to pay back the revolving fund loan using revenues
generated from water user rates.Water user rates are the principal source of revenue
for the Marysville water system. A rate structure with a bimonthly allowance based on
meter size and an average charge for water use in excess of the allowance was
established by Ordinance No. 2109 in 1996. The City's matching funds will come from
utility revenues generated from water user rates.
Provide a brief narrativedescriptionof the system's problems,the project, and how the project
will resolvethe system's problems:
Background:Edward Springs Reservoir is a below grade earthen berm reservoir
constructed in the 1930's. The reservoir was initially lined and covered with a potable
PVC system in the mid 1970's with the cover and liner held in place by an earthen
trench/berm configuration.The cover has since been replaced with a floating hypalon
cover which is approximately 13 years old.
Problem:The potable PVC liner and hypalon cover are not compatible materials.The
hypalon leeches the plastizers out of PVC causing the PVC to become brittle and crack.
The PVC liner is showing signs of cracking above the high water level near where the
hypalon and PVC are connected at the trench/berm configuration.Replacement of the
incompatible materials is required before the liner completely fails.The existing
anchorage system for the cover and liner does not provide a completely sealed system
thereby providing the potential of infiltration at the reservoir.The existing cover
tensioning sysem is inadequate,allowing the cover to undulate,creating numerous areas
of stagnant water and organic debris buildup on the surface of the cover leading to
potential contamination of reservoir contents.An under water inspection conducted in
1996 found seam separation in several areas of the liner and numerous cuts and holes in
the cover.Temporary repairs have been made.
Proiect:Modifications to the Edward Springs Reservoir will include complete
replacement of the existing cover and liner using compatible materials and construction
of a reinforced concrete footing/stem wall around the perimeter of the reservoir as well
as a functional cover tensioning system. The cover and liner would be fastened to the
elevated stem wall by metal strapping eliminating the potential of infiltration and possible
water contamination.This arrangement of cover and liner is similar to other installations
within the state and meets with DOH approval for providing a sealed reservoir system.
The floating cover would be free draining and accessible for cleaning.
Benefits:The complete replacement of the liner and cover and installation of a new
footing/stem wall will correct the potential contamination and leakage problem at the
existing reservoir and eliminate further microbial risk.
29
SECTION 6:PRE-APPLICATION CERTIFICATION
I hereby certify that that the information provided in this application is true and correct, to the
best of my belief and knowledge, and it is understood that the state may verify information,
and that untruthful ormisleading information may be cause for rejection of this application or
termination of any subsequent loan agreement. I further certify that I have the authority to
submit this loan pre-application on behalf of the owner(s) of this water system..
Signed •f)q;J.Uk d4 Title~M~a~y~o~r'I"'l""'--r..".--------
Name Dave Weiser Date __....J1u l...a....9.....1.....9....."]-'------
(printed)
30
CITY OF MARYSVILLE·COMPREHENSIVE PLAN C/Jpr-;I 1,1 '797)
TABLE 6·3 ESTIMATED NUMBER OF HOUSEHOLDS BY INCOME CLASSIFlCATION(%ofCountyMedlanlncomej
AREA EXTREMRY LOW VERY lOW LOW INCOME *TOTAL lOW MODERATE MEDIAN
INCOME'INCOME t INCOME"INCOME §$35,000 INCOME
$0-$9,999 $10-$14,999 $0-$24,999 $25-34,999 and
SIlo.Co.14,084 8%10692 6%51,080 30%29,022 17%91,759
Chy of 732 17%1,547 '*Marysvm
529.01
529.02
528.02 11%
528.03 13%
528.04 4 %181 11%
527.01 O"/.~
527.02 4%137 11%
527.03
•Extremely.Low Income:30%,orless than $11,054
t VeryLowIncome:3l-50%,orbetween$l1,054and$18,423*Low Income:51·80%,or between $18,423 and $29,478.
• • TotalLow Income:0-80%,orless than $24,999.
§Moderate Income:80-95%,or between $29,478 and $35,005 •
..Greater than County %
Source:US Census, 1989. (Note: The Census information does nol exactly correspond to the median income olasses.)
In theCounty21.5%of all households areboth
below95%of median incomeandare paying more
than30%forhousingandrelatedcosts.S In the
City of Marysville,65%of its households areLow
andModerateIncome,thatis below95%of
CountyMedianIncome. Forthe Cityof
Marysville,figures are unavailable forthe
percentageofpersonsearninglessthan 95%of
CountyMedian Household Incomeandwhoare
spendingmore than 30% oftheirincomeon
housing costs.
Table6-3showsthatbyincome classification,
48% ofthe households in theCity of Marysville
areLowIncome,thatis below80%of County
Median Income.Households earninglessthan
80%of County median incomeusuallyhavemore
difficulty affording and sustaining housing and
maylivein housing whichis inpoor condition or
overcrowded.Thesurroundingarea,Census
Tracts527and528,haveonly22% of their
households earninglessthan 80%of median
income. In SnohomishCounty,30%of the
households haveLowIncome,and47%arelowor
moderate incomes.
The question related to projections of future
housing affordability is whetherjob growthis
going to contribute to higherincomeand improved
housing affordability orlowerincomesand
deteriorating housing affordability.Anotherkey
variable relatedtotheability to affordhousingis
whethera household hasoneortwoworkers.
2.HOUSING COSTS
Thecounty's median incomeis$36,847. The
standard is that households shouldpaynomore
than30%oftheir monthly incomeforhousing
costs (including utilities forrentalunits,insurance
andtaxesfor ownership).Table6-4showsfor the
income groups previously described whatrentor
homecostscanbe afforded basedonthe30%
target Tables6-5and6-6showthepercentagesof
homevaluesorrentsinthe Marysville area.
5 Executive Summary ofFairShare Housing allocation
Methodology and Guidelines,Snohomish County
Tomorrow,January 26,1994.
Housing
6-6
*mediQ....h<>vseJ..cld li-tc:.o ....e.
-{;:v C.i~~maM;j~vi/Je-
Additional Monitoring:
Reguirement Probability
Phose 2/5 SOC 5%
Phose 2/510C 10%
Radionuclides 30%
Dis.By-Products 10%
Total Additional Cost
Cost
$2.83
2.02
1.47
2.16
Probability x Cost
$0.14
0.20
0.44
0.22
$1.00
Total Annual Cost per Connection $2.28
Adjusted for 1992-1996 Inflation $2.56
These additional monitoring costs for Marysville are token into account in the funding
projections.
Projected Revenue Requirements
Table 7-2 and the service population projections of Chapter 4 can be combined to
develop revenue projections for the first sixyears of the planning period.Assumptions used to
project revenue are as tollows.
•
•
•
•
Assume that the water operations will continue to contribute approximately 70
percent of the utility fund revenues and account tor the some percentage of
expenses.
Assume that annual water operating revenues will be~er connection annually.
based on the overage of the years 1987 through 1992 ~ercent annual inflation.
Assume that a minimum debt service coverage of 2.0 will be required.
Assume that annual water operating and non-operating expenses will be $291 per
connection for a net revenue of $97 per connection.
These assumptions ore applied to the Chapter 4 data and presented in Table 7-4. it is
evident from Table 7-3 that financing and/or a revised rate structure will be required to meet the
proposed improvements for the firstsixyears of the plan.Several financing options ore available
and are discussedin the following section.
-91 -