ENGINEERING REPORT SERVICES GRANT PROGRAM REQUIREMENTS AND INSTRUCTIONS

Water Protection Program fact sheet
1/2018
Division of Environmental Quality Director: Ed Galbraith
PUB02703

Application Deadline:  April 1

The Missouri Department of Natural Resources is accepting grant applications from community water systems for development of an engineering report. Funding comes from Drinking Water State Revolving Fund (DWSRF) set-asides. For more information on this funding opportunity, contact Ms. Megan Torrence of the Drinking Water Permits and Engineering Section at 573-522-1801, or Mr. Maher Jaafari, P.E., Drinking Water Permits and Engineering Section Chief at 573-751-1127.

This Instruction Sheet contains:

GENERAL INFORMATION

What is the purpose of this funding?
The primary purpose of this funding is to help community water systems obtain an engineering report as a first step toward implementing changes that will help the system achieve and maintain technical, managerial and financial capacity, including compliance with the national primary drinking water regulations and the Missouri public drinking water regulations.

Who can apply?
Community water systems with a population equal to or less than 3,300 or community water systems with larger populations that will provide benefit to a community water system with a population equal to or less than 3,300 (i.e. regionalization, consolidation, etc.) may apply.  Other minimum eligibility criteria for applicants contained in this document also apply.

How will applications be ranked? 
Complete applications will be ranked according to priority point criteria and eligibility.  Only applications that have been completely filled out, signed and include the required supporting documentation will be ranked.

How much funding can I expect?
Awardees are eligible to receive up to 80 percent of the costs for engineering report services up to a maximum of $20,000.

Disadvantaged communities:  Any community water system that meets the definition of a disadvantaged community (a community with a population of less than 3,300 whose user rates will be at or above 2 percent of the median household income (MHI), and the community’s MHI is at or below 75 percent of the state average MHI) is eligible for 100 percent of the costs for engineering report services up to a maximum of $25,000. 

What can I use the funding for?
Funding can only be used for development of an engineering report within the subaward period. Funding provided under this subaward shall not be used as reimbursement of expenses for services provided outside the subaward period. 

Will repayment be required?
Funding provided for these contracts is a grant, not a loan.  Repayment is not required. 

Is a local match required?
Yes. With the exception of disadvantaged communities, grant funding shall not exceed 80 percent of the cost to develop the engineering report up to a maximum of $20,000. The applicant must be able to provide funding for the remaining cost. 

APPLICATION INSTRUCTIONS

Application Deadline
Applications can be submitted to the department at anytime. Applications received postmarked by April 1 will be evaluated and ranked for that calendar year of funding. Applications postmarked after the deadline will not be considered for funding until the next calendar year. The application form 780-2177 can be found online or on the departments Engineering and Report Services webpage or you may request a hard copy by contacting the department. The completed application and all other required information must be mailed or hand-delivered to the Department of Natural Resources, Public Drinking Water Branch, Permits and Engineering Section as follows

      Mail to                                                                 or hand deliver to
Missouri Department of Natural Resources            Public Drinking Water Branch                        
Public Drinking Water Branch                               Permits and Engineering Section
Permits and Engineering Section                            Lewis and Clark State Office Building
P. O. Box 176                                                      1101 Riverside Drive,
Jefferson City, MO 65102-0176                           Jefferson City, MO, 65102

The department will notify all applicants of the final selection results after all applications have been reviewed in May of each year.

Minimum Eligibility Criteria for Applicants
Applicant shall complete the Engineering Report Services Grant Program Application including the Safe Drinking Water Act Compliance Priority Point Checklist (Section 6 of the application) and return it along with the required supporting documentation to the Public Drinking Water Branch no later than the application deadline.  Applicants must meet the following minimum eligibility criteria in order to be eligible for this grant.  Applicant signature is required on the application form to verify eligibility requirements are met.

  1. The applicant must be an existing community water system with a population less than or equal to 3,300 or a community water system with a larger population that will provide benefit to a community water system with a population less than or equal to 3,300 (i.e. regionalization, consolidation, etc.).
  2. The community water system shall have a valid Permit to Dispense Water or be taking steps to obtain such a permit.  (To be considered taking steps to obtain a permit, an application for a Permit to Dispense Water must be received by the department prior to the deadline)
  3. The community water system must have paid all outstanding Program Administration and Laboratory Services fees and must have remitted to the department the Primacy Fees collected from its customers prior to the deadline.
  4. The community water system must employ a certified chief operator or subaward operator.
  5. The community water system has not received engineering report funding for three years prior to the deadline.
  6. The community water system does not have an engineering report that has been approved by the department within two years prior to the deadline.
  7. The community water system must agree to make a good faith effort to pursue recommendations contained in the approved engineering report.  A good faith effort is defined as an application for financial assistance, application to the department for construction permit for one or more recommended projects, or documented technical, managerial and financial capacity improvement.

Because the grants are federally funded, applicants are required to submit a Data Universal Numbering System (DUNS) number.  This can be obtained online at http://fedgov.dnb.com/webform or by telephone to Dun and Bradstreet at 1-866-705-5711.  

Application Evaluation Factors
Applications will be listed in order based on priority points accrued. The purpose of the priority points is to list applications in order so that the most serious problems are given the highest priority. Priority points are based primarily on protection of public health, compliance with the Safe Drinking Water Act, and system reliability.

Assignment of Priority Points

All applicants must submit a brief description of need (narrative) for each item checked in the Safe Drinking Water Act Compliance Priority Point Checklist. To ensure points are applied for the checklist item, documentation supporting your description is also required. Documentation may include, but may not necessarily be limited to inspections, sanitary surveys, and system records with written operator or system engineer testimony.

Priority points shall be assigned only where the community water system intends to correct the deficiency or problem associated with the points. For example, if the community water system has had persistent violations of a secondary maximum contaminate level, the engineering report must address that problem.  In the case of a tie, the application received first will be given higher priority.

Section A: SDWA Violations/Compliance

100   Correct persistent violations of maximum contaminant levels or treatment performance criteria for acute risk contaminants (such as coliform, turbidity, or nitrate) that have occurred within the past 36 months.
75     Correct persistent violations of maximum contaminant levels for naturally-occurring contaminants (radium, radon, uranium, arsenic, radionuclides).
50     Correct persistent violations of treatment technique requirements.
75     Correct persistent violations of maximum contaminant levels for non-acute risk primary contaminants occurring within the last 36 months.
50     Correct persistent violations of maximum contaminant levels for secondary contaminants occurring within the past 36 months.
50     Compliance with Missouri’s Surface Water Treatment Rules, Disinfectants and/or Disinfection By-Product Rules, or Ground Water Rules.
100   Enable the community water system to comply with an administrative order, bilateral compliance agreement, or other enforceable document issued by the Missouri Department of Natural Resources.

Section B: Problems with Waterborne Disease, Minimum Working Pressure, and Inadequate Supply
50     At least 51 percent of the project will address problems causing a waterborne disease outbreak attributable to the community water system by the Department of Health and Senior Services.
25     The community water system can document its inability consistently to maintain >35 psi as a normal working pressure in the distribution system.
50     The community water system can document its inability consistently to maintain >20 psi at all service connections.
50     Private or noncommunity wells or sources in the project service area are unable to consistently provide an adequate amount of potable water for general household purposes and at least 51percent of the project addresses this need.

Section C:  Problems with inadequate wells, water loss, distribution systems, storage and treatment
20     Provide the community water system with a backup well or backup interconnection with another community water system.
20     Address problem(s) with improper well construction.
10     Address unaccounted for water loss that exceeds 10 percent of the drinking water produced by the community water system, and the loss is due to leaking or broken water lines.
10     Provide necessary modifications to a distribution system anticipated to exceed design capacity or useful life within the next five years or address a demonstrated need to replace faulty pipes or substandard pipe materials.
5       Address a demonstrated need for distribution system valves and flushing devices.
5       Address a demonstrated need for looping of water mains.
15     Address an inability to maintain a disinfectant residual at all points in the distribution system.
15     Address water storage facilities in poor condition not related to inadequate storage.
5       Provide the community water system with a storage capacity equal to one day’s average use.
5       Provide the community water system with adequate standby power.
15     Provide necessary modifications to a source or treatment facility anticipated to exceed design capacity or useful life within the next five years.
10     Address significant degradation of the quality of raw water supply.
15     Address significant degradation of the quality of finished water in storage.
5       Enable the community water system to meet existing state requirements for the treatment or storage of waste residues generated by the water treatment plant.
20     Enable repair or replacement of treatment facilities for required disinfection or turbidity removal that are severely deteriorated beyond the useful life of the facility.
25     The community water system has received an operational evaluation level exceedance for disinfection by-products within the past 36 months.
20     The community water system’s source has been directly impacted by natural disasters (such as flood or drought) or non-naturally occurring contamination within the last four years.
20     The community water system’s treatment plant or distribution system has been impacted by natural disasters (such as flood or drought) or non-naturally occurring contamination within the last four years.
20     At least 51 percent of the project is for repair or replacement of an existing community water system damaged or destroyed by a natural disaster. (Note: Documentation must be submitted along with a statement that adequate state or federal disaster relief is not available).

Section D:  Regionalization, Interconnection, and Security
50     Provide necessary upgrades to facilities of a primary community water system to continue or expand its services as a regional supplier.
50     Result in the permanent supply interconnection of two or more existing community water systems (this includes new community water systems that allow small water systems within their boundaries to consolidate).
25     Result in a regional management system responsible for the day-to-day operation of the community water system.
50     Provide necessary upgrades or new water distribution system to meet the standards of a regional supplier for the purpose of consolidation.
5       Enable the community water system to enhance the water system security.

Section E: Technical, Managerial and Financial Capacity Demonstration
5       The community water system is located within an endorsed Department of Natural Resources Wellhead Protection or Source Water Protection Area.
5       At least 50percent of the governing body has received training related to operation and management.
5       The community water system has a written operation and maintenance plan and budget.
5       The community water system currently meters all water usage from system connections.

INFORMATION AND CONTRACTUAL REQUIREMENTS FOR FUNDING RECIPIENTS

Selecting an Engineer
Funding recipients are responsible for following their own purchase and procurement criteria when obtaining the services of an engineer. However, the procedures and procurement requirements in Sections 8.285-8.291, RSMo apply. The funding recipient must submit the appropriate documentation of the process, as outlined in Engineering Pre-Selection Process. Funding recipients are responsible for selecting an engineer certified in the state of Missouri as a Professional Engineer. The necessary documentation in the Engineering Pre-Selection Process shall be submitted to the department within 90 days from receipt of the signed award letter. Upon engineering selection, the community water system representative shall fill out and sign the Engineering Report Services Grant Agreement. Once the agreement is received, the department will then finalize the Financial Assistance Agreement. The Financial Assistance Agreement and the Engineering Report Services Grant Agreement constitute a subaward. Note: The agreements are subawards between the community water system and the department. A separate contract between the community water system and the selected engineering firm to complete the work as outlined herein must be in place prior to finalizing the Financial Assistance Agreement.

Engineering Pre-Selection Process
The department will notify all applicants of the final selection results in May of each year. If selected for funding, the recipient shall proceed with procurement of a qualified engineer or firm. The funding recipient will have 90 calendar days to procure an engineer, notify the department, and submit required documentation along with a detailed work plan. Failure to meet the deadline will constitute an incomplete application, and the application will be closed.

The submission shall include the following:
  1. A copy of the Request for Statement of Qualifications. The Request for Statement of Qualifications tells the potential engineers what type of services you are looking for and allows them to respond, in turn, by a specified attainable deadline. An example Request for Statement of Qualifications is available upon request.
  2. Proof of solicitation. Activities to ensure broad solicitation of known or existing firms capable of completing the work must be made. This may take the form of a publication in a newspaper or further solicitation via mail. Note: All solicitation steps are the community water system’s attempt to receive three or more responses.
    • Effort must be made to solicit Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) firms as required by Chapter 37, RSMo., and associated regulations. More information on compliance with MBE/WBE requirements and a directory of MBE/WBE vendors may be found at Missouri Office of Equal Opportunity.
  3. A list of the evaluation factors and the scoring system used for engineering selection. The community water system must base the selection of their desired professional engineer services on the qualification-based selection process. The evaluation factors and the scoring system must be logical and support the final decision. Actual selection scores are not requested, but must be kept in the community water system’s files.
  4. A copy of the Statement of Qualifications from the selected engineering firm.
  5. Completed Engineering Report Services Grant Agreement signed by the community water system.
  6. A copy of the subaward between the community water system with the engineering firm to perform the work as described herein.
  7. Detailed work plan. This outlines the tasks that will be completed, what system components will be evaluated, and what specific information will be included in the engineering report.
  8. Cost breakdown. A cost sheet that includes the anticipated hours needed to complete each task outlined in the detailed work plan along with the associated hourly rate charges is needed to justify the total project cost.

Criteria for Engineering Report

  1. The engineering report must be developed and certified by a registered professional engineer licensed in the State of Missouri.
  2. The engineering report must be sufficient in scope and detailed to fully address the criteria listed herein.
  3. The engineering report must follow the detailed work plan.
  4. All priority point checklist items must be addressed in the engineering report. Failure to adequately address all checklist items will result in reduced funding.
  5. The engineering report must conform to safe drinking water regulations 10 CSR 60-10 and the department’s Minimum Design Standards for Missouri Community Water Systems, (effective Dec. 10, 2013.) A hard copy is available upon request to the Public Drinking Water Branch at 573-751-5924.
  6. In addition to meeting the above referenced criteria, other required information is listed below.
    • General Information
      • A detailed description of the existing community water system including size and length of waterlines, tanks, wells, treatment plants, and pump stations
      • Name of community water system operators
    • Extent of the Water System
      • Appraisal of future requirements and expected growth covering a 20-year period
      • Evaluation of potential regionalization and/or consolidation
    • Alternate Solutions
      • Specific comparison of feasible alternatives with respect to construction costs, operation and maintenance costs, including environmental considerations where applicable
      • Feasible alternatives shall not include deactivation or deregulation as a public community water system
    • Project financing
      • Explain how the applicant will administer the project
      • Explain how construction cost and additional operation and maintenance, including replacement, cost will be covered
      • Present existing and proposed project budget for applicant. Include operation and maintenance costs, capital improvement costs, debt repayment, and status of reserve accounts
      • Provide the origin of funding for original facility, including existing debt
      • Provide the financial status of operating central facilities – rate schedule, annual operation and maintenance, status of current debts and reserve accounts, and tabulation of users by monthly usage categories
  7. The department must receive two hard copies of the engineering report along with one electronic copy on CD, with a professional engineer’s seal on it within six months from the date the Financial Assistance Agreement is signed by the department. The engineering report should be mailed to:

Missouri Department of Natural Resources
Public Drinking Water Branch
Permits and Engineering Section
P.O. Box 176
Jefferson City, MO 65102-0176

Processing Payments
After the engineer is selected, the Engineering Report Services Grant Agreement shall be filled out and signed by the community water system. The Engineering Report Services Grant Agreement is an agreement on the payment process. Once the Engineering Report Services Grant Agreement is received, the department will finalize the Financial Assistance Agreement. The Financial Assistance Agreement and the Engineering Report Services Grant Agreement constitute a subaward. Note: The Engineering Report Services Grant Agreement and the Financial Assistance Agreement are a subaward between the community water system and the department. A separate subaward between the community water system and the selected engineering firm to complete the work as outlined herein must be in place prior to finalizing the Financial Assistance Agreement.

The engineer will submit the necessary engineering cost documentation to the community water system (receipts, work hours, invoices, etc.). The community water system staff will forward the documentation to the department with a letter approving the expenses. The department will then pay the community water system directly up to 80 percent of the invoice amount (or 100 percent for disadvantaged communities). All subsequent payments by the department will require proof of payment to the engineering firm of the previous invoice amount. The department will hold the final 25 percent payment until the department approves, in writing, the engineering report. Funding provided under this subaward shall not be used as reimbursement of expenses for engineering services provided outside of the subaward period. Work completed prior to the date the Financial Assistance Agreement is signed will not be paid for by the department.

The community water system is responsible for assuring two hard copies and one electronic copy on CD of the engineering report are received by the department within six months from the date the department signs the Financial Assistance Agreement . 

ESTIMATED TIMELINE FOR COMPLETION OF PROGRAM

April 1: Applications and required supporting documentation due to the department.  Applications postmarked or hand delivered after the deadline will not be considered for funding until the next calendar year.
April 1 – May 15: The department will review, score, and rank all applications received and determine what community water systems can be funded.
May 15: Notification sent out to all applicants on the final grant selection results.
May 15 – August 15: Community water systems selected for award will have 90 days to hire an engineer and submit the required documentation. Failure to meet the deadline will constitute an incomplete submission, and the application will be closed.
Aug. 15 – Sept. 15: The department will finalize the Financial Assistance Agreement and email it to the community water system for signature.
Sept. 15 – Oct. 15: Community water system will have 10 business days to sign and return Financial Assistance Agreement by email to the department.
Oct. 15 – Nov. 1: The department will countersign the Financial Assistance Agreement and return the fully executed agreement by email to the community water system.
Nov. 1 – May 1: The engineering firm will have six months from the date the department signs the Financial Assistance Agreement to complete the engineering report.
Dec. 1 – July 1: Invoices should be sent to the department for payment throughout the entire project period. The final invoice for the project must be received by the department within eight months from the date the department signed the Financial Assistance Agreement .