NJWA 2014 Management & Technical Conference

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1 NEW JERSEY WATER ASSOCIATION CONFERENCE Wednesday, October 21, 2015 MYTHBUSTERS PRESENTERS Andrew S. Holt, PE, PP, CME Vice President Eleni Giannikopoulos Senior Designer PRESENTATION OUTLINE NEW JERSEY ENVIRONMENTAL INFRASTRUCTURE TRUST EXISTING SYSTEM ALTERNATIVES BASIS OF DESIGN PROPOSED SYSTEM NJEIT LOAN APPLICATION FORM LP-5A COST ESTIMATE MONTHLY FEE INCREASE ANTICIPATED TIMELINE Drinking Water State Revolving Fund (DWSRF): Offers financial assistance to water systems to help finance the cost of infrastructure improvements. The New Jersey Environmental Infrastructure Trust provides and administers low interest-rate loans to qualified borrowers in New Jersey for water quality infrastructure projects. NJEIT Mission Statement Nano Infrastructure Loan Program (NLP) MYTH The NLP is available only to Small Drinking Water Systems (SDWS). SDWS are defined as those operations serving populations of less than 10,000. The NLP program is designed to assist these systems with accessing funding for needed infrastructure projects. The Nano Loan Program offers 50% Principal Forgiveness Loans (PFLs). NLP commenced in FY2014. MYTH In order to streamline the loan process for small water systems, the NJDEP and the New Jersey Water Association (NJWA) have executed a contract for NJWA to issue an RFP for contracting NJ Professional Engineering services to conduct an Asset Management Plan and design services to complete the DWSRF loan requirements. SCE was retained by the NJWA to assist a small water system client to take advantage of this new funding initiative! 1

SCE SUCCESSFULLY COMPLETED: An Asset Management Plan Design Documents Submitted All Documents Required for the DWSRF/H2O Loan ELIGIBLE PROJECTS ARE Projects that address SDWA health standards that

Further Public Health Protection Goals of the SDWA to Include: Install or upgrade treatment facilities, to improve drinking water quality to comply with primary or secondary drinking water standards;

2 SCE SUCCESSFULLY COMPLETED: An Asset Management Plan Design Documents Submitted All Documents Required for the DWSRF/H2O Loan ELIGIBLE PROJECTS ARE Projects that address SDWA health standards that have been exceeded Or to prevent future violations of rules Or Projects to replace aging infrastructure necessary to maintain compliance Or. Further Public Health Protection Goals of the SDWA to Include: Install or upgrade treatment facilities, to improve drinking water quality to comply with primary or secondary drinking water standards; Install or upgrade storage facilities, including finished water reservoirs, to prevent microbiological contaminants from entering the water system; Install or upgrade pump stations to maintain pressure in the water system; Install or replace transmission and distribution pipes to prevent contamination caused by leaks or breaks in the pipe; Further Public Health Protection Goals of the SDWA (continued): Install and enhance security at drinking water systems, such as fencing, lighting, motion detectors, and cameras; Install and/or replace water meters and/or other conservation measures; Interconnections; and Drought management initiatives, as identified by the State of New Jersey. Replacement wells, as defined at N.J.A.C. 7:19 are eligible under the engineering services contract. MYTH: Planning & Design Costs Partially Paid by NJWA : Milestones & Engineer Compensation Kick-off meeting & receipt of approval from the NJWA for Asset Management Plan - $$$ Engineer attends meeting to reach consensus on sub-project priorities - $$$ Engineer prepares planning documents and submits to NJDEP by the DWSRF deadline - $$$ Engineer prepares signed and sealed plans and specifications with an engineering report, a completed Operations and Maintenance Manual, and a completed loan application, and submits these to NJDEP by the DWSRF deadline - $$$ MYTH: Planning & Design Costs Partially Paid by NJWA : Milestones & Engineer Compensation Engineer applies for, and pays for, all required permits by the DWSRF deadline - $$$ EDD document is issued by NJDEP - $$$ DWSRF loan agreement is closed in escrow or a pre-award approval can be issued by NJDEP and the NJ Environmental Infrastructure Trust - $$$ 2

3 : Loan Options EXISTING SYSTEM $500,000 max allowable with 100% principal forgiveness BAD NEWS / GOOD NEWS 15% of total loan amount by client (due prior to Bid Phase) Amounts over $500,000 to be covered by second loan 75% at 0% interest rate 25% at market rate over a 20 year period EXISTING SYSTEM LOWER SYSTEM EXISTING SYSTEM LOWER SYSTEM. WELL 1 WELL 1, 2 & 6 Meters WELL 2 WELL PUMP MOTOR CONTROL CHLORINATION TANK & CHLORINATION METERING PUMP STORAGE BASIN (Cl CONTACT TANK) 4,300 GALLON EXISTING SYSTEM LOWER SYSTEM EXISTING SYSTEM LOWER SYSTEM HYDRO-PNEUMATIC TANK 500-GALLONS AIR COMPRESSOR SUBMERSIBLE BOOSTER PUMPS GENERATOR & TRANSFER SWITCH BUILDING TANKS 75 GALLONS 3

EXISTING SYSTEM UPPER SYSTEM EXISTING SYSTEM UPPER SYSTEM.

GENERATOR & UPPER TREATMENT FACILITY ELECTRICAL SYSTEM Serves 72 residences Lower System 53 homes Upper System 19 homes Wells #1 and 2 have historic results of

# DEPTH (FEET) PUMP CAPACITY (GPM) Lower System 1 420 20+ Lower System 2 200 13+ Lower System 6 800 4 Upper System 3A 880 13 Upper System 4 420 7 (not in

LS Well 1 25-30 HR 50 35 15 $ 25,000.00 LS Well 1 - Pump - 1HP Submersible 10 HR 15 8 7 $ 10,000.00 LS Well 1 meter 25 POOR 25 20 5 $ 1,000.

ASSET INVENTORY System Expected Condition Adjusted Evaluated Remaining 1 Asset 2 Age LOWER SYSTEM LS Hydro-pneumatic Tank 500 Gal.

00 LS Well 2 - Pump - 3/4 HP Submersible 10 HR 15 10 5 $ 10,000.00 LS Well 2 meter 25 POOR 25 20 5 $ 1,000.00 LS Well 6 25-30 FAIR 50 16 34 $ 25,000.

00 LS Chlorination tank 10-15 HR 15 15 LS Chlorination metering pump 10 HR 10 10 LS Storage Basin (Cl contact tank) 4,300 Gal.

4 EXISTING SYSTEM UPPER SYSTEM EXISTING SYSTEM UPPER SYSTEM.. WELL 3A WELL 4 WELL 3A METER & PRESSURE TANK CHLORINATION TANK EXISTING SYSTEM UPPER SYSTEM ENTIRE SMALL WATER SYSTEM BOOSTER PUMP & WELL MOTOR CONTROL CENTER. GENERATOR & UPPER TREATMENT FACILITY ELECTRICAL SYSTEM Serves 72 residences Lower System 53 homes Upper System 19 homes Wells #1 and 2 have historic results of E.coli No operating interconnections between Lower and Upper Systems Asset inventory revealed High Risk items - highly recommended for replacement SYSTEM WELL # DEPTH (FEET) PUMP CAPACITY (GPM) Lower System Lower System Lower System Upper System 3A Upper System (not in operation since 2003) ASSET INVENTORY Lower System Estimated Replacement System 1 Asset Expected Adjusted Evaluated Remaining Condition 2 Age Cost LOWER SYSTEM LS Well HR $ 25, LS Well 1 - Pump - 1HP Submersible 10 HR $ 10, LS Well 1 meter 25 POOR $ 1, ASSET INVENTORY Lower System TABLE 1. ASSET INVENTORY System Expected Condition Adjusted Evaluated Remaining 1 Asset 2 Age LOWER SYSTEM LS Hydro-pneumatic Tank 500 Gal HR 20 LS Air Compressor HR Estimated Replacement Cost LS Well HR $ 25, LS Well 2 - Pump - 3/4 HP Submersible 10 HR $ 10, LS Well 2 meter 25 POOR $ 1, LS Well FAIR $ 25, LS Well 6 - Pump - 3HP Submersible 10 NEW $ 10, LS Well 6 meter 25 FAIR $ 1, LS Well Pump Motor Control 15 FAIR $ 1, LS Chlorination tank HR LS Chlorination metering pump 10 HR LS Storage Basin (Cl contact tank) 4,300 Gal HR LS Booster Pumps - Submersible HR 15 LS Booster Pump Motor Control/Strtr 15 HR 15 LS Chambers/vault 50 HR 35 LS Electrical System 7-10 FAIR $ 5, LS Generator POOR $ 20, LS Transfer Switch POOR $ 5, LS Propane Storage tank FAIR $ 2, LS Buildings POOR $ 20, LS Distribution Meter FAIR $ 1, LS Distribution Meter FAIR $ 1, LS Distribution Meter FAIR $ 1,

5 ASSET INVENTORY Upper System System 1 Asset Expected Adjusted Evaluated Remaining Estimated Replacement Condition 2 Age Cost ASSET INVENTORY Entire System UPPER SYSTEM US Well 3A FAIR $ 25, US Well 3A - Pump - 1HP Submersible 10 FAIR $ 10, US Well 3A meter 25 FAIR $ 1, US Well HR US Well 4 Pump - 1HP Submersible 10 HR US Well 4 meter 25 HR US Well Pump Motor Control 15 HR US Chlorination tank 30 HR US Chlorination metering pump HR US Storage Basin (Cl contact tank) 10,000 Gal HR US Hydropneumatic Storage Tanks (75 Gal.) 30 HR US Boster Pump motor control center 15 HR US Booster Pump - 1-1/2 HP HR US Generator (KW) 25 FAIR $ 20, US Transfer Switch 15 FAIR $ 5, US Propane Storage Tanks FAIR $ 2, US Electrical System 7-10 FAIR $ 5, US Distribution Pipes HR US Distribution Meter HR System 1 ENTIRE SYSTEM Asset Expected Condition 2 Adjusted Useful Life Evaluated Age Remaining Estimated Replacement Cost ES Valves FAIR AS NEEDED $ 500 / EA ES 2-inch Water Main (13,767 Linear Feet) FAIR AS NEEDED $60 / LF ES Service Lines FAIR AS NEEDED $1,500 / EA ALTERNATIVES A. No Action Administrative Consent Orders May 31, 2013 and August 15, 2014 Penalty Assessment B. Abandon Public Water System & Introduce Private Wells per Residence Minimum cost per residence = $15,000 Not eligible for NJDEP funding Common Element conversion C. New Well Supply Sources & System Modifications Multiple well supplies would be necessary Wells would be classified Ground Water under Direct Influence of Surface Water additional monitoring &treatment No interconnection between Upper and Lower Systems, firm capacity not achieved D. Addressing the ACO via Treatment of Wells #1 and #2 ALTERNATIVES No Action Water Usage Restrictions Tier I - Boil Water Advisory The following penalty structure would be applied by the DEP for ACO noncompliance: For each violation Calendar Days after Due Date Per Calendar Day 1 7 $ $ or more $500 For each violation of the progress report submission deadlines,. Calendar Days after Due Date Per Calendar Day Each calendar day the Water System fails to submit report $50 45 Days post written demand from DEP, Water System submits payment to NJDEP of Treasury If not received, NJDEP of Treasury proceeds with collection action Payment of penalties does not negate Water System s responsibility to complete ACO registrations ALTERNATIVES ABANDON WATER SYSTEM Abandonment of existing Water System Each dwelling to drill own well o Commission well driller o Purchase well pump o Connect well to a power source o Connect new well to their home o Building costs per dwelling: $15,000 (to be paid in full at time of service) Total Capital Cost: 72 residences in the community: $1,080,000. Alternatives New Well Supply Source & Modifications Replace and decommission problem wells # 1 and 2; Must generate a capacity of 26 GPM. Test drill of potential well source yielded a capacity of 4 GPM. Six (6) Wells x 4 GPM = 26 GPM. Obstacles: Locating 72 acceptable water sources Water Quality no longer regulated POTENTIAL NEED FOR SIX (6) ADDITIONAL WELLS TO MEET CAPACITY DEMANDS 5

Alternatives New Well Supply Source & Modifications Estimated Construction Costs Construct, Test and Permit (6 New Wells) $515,000 Disinfection Treatment System and Controls $45,000 Interconnect

= $1,109,250 CHOSEN ALTERNATIVE BASIS OF DESIGN ADDRESSING THE ACO via TREATMENT OF WELLS #1 & 2 - BASIS OF DESIGN Ranked #1 by NJDEP eligible for the Small Water System Loan Program BASIS OF DESIGN

Water from all three (3) lower wells (1, 2, and 6) will be discharged to the existing 4,300-gallon capacity wet well.

New Treatment Facility The New Treatment Facility will receive the raw water from the Lower System s Raw Water wet well and booster pump station.

6 Alternatives New Well Supply Source & Modifications Estimated Construction Costs Construct, Test and Permit (6 New Wells) $515,000 Disinfection Treatment System and Controls $45,000 Interconnect Upper and Lower Systems $20,000 Upper System Water Storage Tank $150,000 Corrosion Control Treatment System and Controls $35,000 Estimated Building Costs = $765,000 Resulting in a Total Project Cost = $1,109,250 CHOSEN ALTERNATIVE BASIS OF DESIGN ADDRESSING THE ACO via TREATMENT OF WELLS #1 & 2 - BASIS OF DESIGN Ranked #1 by NJDEP eligible for the Small Water System Loan Program BASIS OF DESIGN BASIS OF DESIGN 1. Lower Raw Water Wet Well The existing Lower Treatment Facility will be converted into a Raw Water Wet Well and Booster Pumping Station. Water from all three (3) lower wells (1, 2, and 6) will be discharged to the existing 4,300-gallon capacity wet well. Two (2) new 50 GPM booster pumps will alternate and convey the raw water from the lower facility to a new treatment facility. 2. New Treatment Facility The New Treatment Facility will receive the raw water from the Lower System s Raw Water wet well and booster pump station. The raw water will enter a pre-fabricated treatment building, piped to a series of cartridge filters to remove turbidity and contaminants of concern, including giardia and viruses. BASIS OF DESIGN PROPOSED LAYOUT 3. Finished Water Distribution The treated water will be pumped from the clearwell with one of two 15- GPM booster pumps and discharge meter located within the new treatment facility to the 19 customers of the Upper System. The treated water will flow by gravity down Toboggan Trail to the 53 customers of the Lower System. 6

PROPOSED SYSTEM CARTRIDGE FILTERS Cartridge

contaminants Giardia Cryptosporidium OPERATION

NJEIT LOAN APPLICATION FORM LP-5A New O&M Manual

System Maintenance COST ESTIMATE MONTHLY FEE

from Lower System to Upper System $ 9.30 $ 1,009.

7 PROPOSED SYSTEM CARTRIDGE FILTERS Cartridge Filters will: Reduce turbidity Remove contaminants Giardia Cryptosporidium OPERATION AND MAINTENANCE MYTH BUSTED! NJEIT LOAN APPLICATION FORM LP-5A New O&M Manual Maintain Tier I Level of Service Training for System Maintenance COST ESTIMATE MONTHLY FEE INCREASE Monthly Maintenance Cost Standard Increase Cartridge Filters $ 1, Energy Cost Increase for raw water transport from Lower System to Upper System $ 9.30 $ 1, Monthly / 72 Homes = By Member Household $ * All contingencies are based on NJEIT loan application regulations. 7

MONTHLY FEE INCREASE FUNDING OPTIONS FOR BALANCE OF LOAN NJDEP DWSRF LOAN Principal Forgiveness $ 500,000.00 Amount Required to be paid by recipient (15% of Loan Amount) $ 75,000.

40% of Loan Amount at 0% Interest $ 111,040.00 Annual = $111,040 / 20 years $ 5,552.00 Monthly 1 = $5,552 / 12 $ 462.67 2. 40% of Loan Amount at 3% Interest $ 111,040.

8 MONTHLY FEE INCREASE FUNDING OPTIONS FOR BALANCE OF LOAN NJDEP DWSRF LOAN Principal Forgiveness $ 500, Amount Required to be paid by recipient (15% of Loan Amount) $ 75, Amount of 2nd Loan $ 277, Option 1 20% Principal Forgiveness 40% no interest 40% current market rate Best Case $ 55, % of $277,600 principal forgiveness 1. 40% of Loan Amount at 0% Interest $ 111, Annual = $111,040 / 20 years $ 5, Monthly 1 = $5,552 / 12 $ % of Loan Amount at 3% Interest $ 111, Annual Payment (3% over 20 years) $7, Montly 2 = $7,463 / 12 $ Total Monthly $ 1, Monthly Increase / 72 Homes = By Member Household $ Net Increase = Maintenance Cost + Option 1 $ MONTHLY FEE INCREASE Option 2 75% no interest 25% current market rate Worst Case 1. 75% of $277,600 at No interest $ 208, Annual = $208,200 / 20 years $ 10, Monthly 1 = $10,410 / 12 $ % of Loan Amount at 3% Interest $ 69, Annual Payment (3% over 20 years) $ 4, Montly 2 $ Total Monthly $ 1, Monthly Increase / 72 Homes = By Member Household $ Net Increase = Maintenance Cost + Option 2 $ ANTICIPATED TIMELINE CONTACT FOR ADDITIONAL INFORMATION March NJEIT Loan Application Deadline: Permit Submission County SESC Township Zoning NJDEP-BWSE Highlands Preservation Area Exemption Local UCC Permits March December Issuance of Agency Review Comments SCE Revisions and Resubmission of required documents January Formal Agency Authorization to Bid February Formal Agency Authorization to Award 12 Months Later March Notice to Proceed April September Construction & Engineering Oversight October Final Inspection & Project Close-out November Loan Close-out & Final Reimbursements IT S COMPLIANT! RICK HOWLETT EXECUTIVE DIRECTOR New Jersey Water Association 54 Main Street Waretown, New Jersey rick@njwater.org DAVID E. ZIMMER, CFA EXECUTIVE DIRECTOR New Jersey Environmental Infrastructure Trust 3131 Princeton Pike, Building 4, Suite 216 Lawrenceville, New Jersey dzimmer@njeit.org QUESTIONS? 8

Several states currently utilize Sustainable

Sustainable Infrastructure Planning A Compilation of State Initiatives Presented by Stacy Barna, Texas Water Development Board November 15, 2010 Sustainability Initiatives Several states currently utilize