Water Infrastructure Projects
Clean Water:
Drinking Water:
CW Cap Grant
$191,136,855
DW Cap Grant
$38,189,086
4% Admin.
$7,645,474
4% Admin.
$1,527,563
Project Funds
$183,491,381
Project Funds
$36,661,523
20% Match CDBG
$38,227,371
20% Match CDBG
$7,637,817
Subtotal for Projects
$221,718,752
Subtotal for Projects
$44,299,340
EIT Share @ 25%
$73,906,251
EIT Share @ 25%
$14,766,447
Total for Projects
$295,625,002
Total for Projects
$59,065,786
Loan Forgiveness Total
$57,341,057
Loan Forgiveness Total
$11,456,726
% Loan Forgiveness
19.40%
% Loan Forgiveness
19.40%
Water Infrastructure Projects
Givens:
Total for Projects, AMP & Aux. Power
$354,690,789
Sandy SRFs
$229,325,941
Loan Forgiveness Total
$68,797,782
Match Total
$45,865,188
FY2015 Funding
Appropriation
amount
Sources
Amount available when
leveraged with NJEIT
Sandy Supplemental Appropriation Bill
$271 million
$360 million
Annual DEP SRF 2015 Base Year Program
$669 million
$880 million
$940 million
$1.2 billion
TOTAL
FY2015 Projects
Project Type (#)
Project cost submitted
Estimated spend
Resiliency (59)
$381.8 million
$230 million
Clean Water (104)
$568.9 million
$340 million
Drinking Water (67)
$248.7 million
$150 million
$1.2 billion
$720 million
TOTAL (230)
FY2016 Projects
Project Type (#)
Project cost submitted
Estimated spend
Clean Water (79)
$861.1 million
$340 million
Drinking Water (58)
$189.5 million
$150 million
$1.05 billion
$490 million
TOTAL (137)
 For FY2016, the DEP/NJEIT submits our reports to the Legislature in
January and again in early April. The Legislature typically approves the
authorization and appropriation bills in late May or June.
Project Eligibilities
Additional Subsidization (Loan
Forgiveness)
Affordability Criteria
Fiscal Sustainability Plans (AMPs)
A/E Procurement
6
Examples of new project types for
which the CWSRF can now provide
assistance, include:
• Privately owned stormwater projects in
•
•
•
MS4 areas
New decentralized systems
Water efficient appliances in private
residences
Technical assistance for small and
medium POTWs
 States have the permanent authority to provide additional
subsidization
 There is no minimum amount of additional subsidization required
 The maximum percentage that may be provided ranges from 0% 30%
 Additional subsidization may only be provided to a municipality or
intermunicipal, interstate, or State agency for the following:
• To benefit a municipality that meets the State’s affordability criteria
• To benefit individual ratepayers in the residential user rate class
• To implement a process, material, technique, or technology that:



addresses water or energy efficiency goals
mitigates stormwater runoff, or
encourages sustainable project planning, design, and construction
 By September 30, 2015, States must establish
affordability criteria that will assist them in
identifying applicants that would have difficultly
financing projects without additional subsidization
 Affordability criteria must be based on:
•
•
•
•
income
unemployment data
population trends, and
other data determined relevant by the State
 If States have existing affordability criteria that
meet these requirements, they may continue to
use those criteria
 Projects involving the repair, replacement, or expansion of a publicly
owned treatment works are now required to develop a fiscal
sustainability plan (FSP)
• Applies to new project applications received on or after October 1,
2014
 States will have the flexibility to set deadlines and establish
standards for FSP development to meet the statutory requirements:
• an inventory of critical assets that are part of the treatment works
• an evaluation of the condition and performance of inventories
•
•
•
assets or asset groupings
a certification that the assistance recipient has evaluated and will be
implementing water and energy conservation efforts as part of the
plan
a plan for maintaining, repairing, and replacing the treatment works,
and
a plan for funding such activities
 Federal
procurement requirements in title 40,
chapter 11 of the United States Code now apply to
A/E services contracts funded with federal dollars
for an amount of project assistance equal to the
federal capitalization grant
• New solicitations, significant contractual
amendments, and contract renewals initiated on or
after October 1, 2014 are subject to this
requirement
 If States have an equivalent state requirement,
they may comply with that instead
• Must include A/G certification with capitalization
grant application
 Requirements can be broadly grouped into the
following categories and apply to the State, funding
recipients, and contractor(s)/subcontractor(s) as
appropriate:
•
•
•
•
•
Eligibility
Procurement
Mandatory Contract Provisions
Reporting During Project Activity
Ongoing Reporting Requirements
 The activities for which reimbursement is sought must address a
disaster related impact and address a National Objective.
 National Objectives are:
• Benefit low/moderate income (LMI) persons;
• Prevent or eliminate slums, blight; Or
• Meet an Urgent Need
 Eligible Costs include construction costs and related soft costs
(engineering, financial, administrative, other professional services) for
the mitigation of Superstorm Sandy damage or for the construction of
resiliency measures to harden infrastructure against future extreme
weather events.
 The NJDEP and NJDCA will jointly determine individual project
eligibility.
Recipients must comply with Federal Requirements at 24 CFR Part 85.36
(“Common Rule”), Section 3 Requirements, Disadvantaged/Minority
Owned/Women-Owned/Veteran Owned Business Requirements and State/local
laws
 Common Rule covers small purchases, competitive bidding and procurement
by competitive proposals.
 Section 3 Requirements are intended to provide employment, job training and
contracts opportunities to low and very low income persons (LMI) in the
project area. The requirements apply to contracts and subcontracts in excess
of $100,000 AND, once triggered, apply to the entire project.
 Recipients must make a good faith effort to promote hiring and training of
LMI.
 Goals are:
•
•
•
30% of new hires to be Section 3 residents,
10% of the total dollar amount of the construction contracts to be awarded to
Section 3 business concerns, and
3% of the total of all non-construction contracts (administrative, financial, a/e, other
professional services) to be awarded to Section 3 business concerns.
 Section 3 Residents are low or very low income individuals living in
the project area whose annual wages or salary are 80% or under the
Area Median Income for a one person family in the project area (local
income limits available from the NJDCA – Sandy Recovery Unit).
 Section 3 Businesses are owned by at least 51% Section 3 residents,
or 30% of employees are Section 3 residents or were so within 3
years of the date of first employment.
 Recipients must take active steps to provide contracting opportunities
to small and disadvantaged businesses; minority, veteran-owned, and
women-owned businesses.
 Recipients must also comply with applicable State and local laws
(e.g. “Local Public Contracts Law”) and New Jersey Environmental
Infrastructure Financing Program requirements.
 All contracts must comply with:

Labor Standards, Davis Bacon Act

Contract Work Hours and Safety Standards Act

Copeland Anti-Kickback Act

Fair Labor Standards Act

State Prevailing Wage Rates
 Recipients must hold a pre-construction conference to review
requirements.
 Prime contractor is responsible for full compliance, including
subcontractors.
Each step of the project process must be appropriately documented. To
that end recipients must maintain accurate records of:
 Information confirming subject project was determined eligible.
 Written agreement
 Procurement efforts including documentation of compliance with the
requirements outlined above (Section 3, etc.).
 Compliance with mandatory implementation requirements such as Davis
Bacon Act, et al.
 Financial statements and records
 Audits
 Progress Reports
 Draw down requests including invoices, purchase orders, vouchers
 Monitoring reports & associated correspondence
The State (NJEIFP) must properly monitor, submit reports and keep
proper records pertaining to CDBG projects. The State must:
 Notify the DCA Disaster Recovery Division representative of the start
of construction
 Designate of a Labor Standards Compliance Officer who will:

Ensure wage rate determinations are properly posted –
photographic evidence required

Ensure wage rates are paid

Conduct employee interviews to establish accuracy of the payroll
records. Record on Form HUD-11.

Take Actions to correct violations
The State must also establish a “Labor Standards Enforcement” file as
part of the records for each construction project. The file must contain:

Bid documents containing wage decisions and labor standards provisions

Verification of contractor eligibility

Executed construction contracts containing the provisions and wage
decisions

Pre-con meeting minutes

Notification of start of construction

Weekly payrolls

Apprentice registration records

On-site employee interview records and copies of correspondence

Any memorandums and forms related to Labor
Standards enforcement
The State must maintain overall program files in the
following categories:
 Administrative
 Financial
 Project activity records
The administrative records must include:
 Disaster Recovery Action Plan submitted to HUD
 Executed grant agreement/memorandum of understanding
 Eligibility & National Objective determinations
 Personnel files
 HUD monitoring correspondence
 Citizen participation compliance documentation
 Fair Housing & Equal Opportunity records
 Environmental Review records
 Documentation of compliance with Davis-Bacon Act, Uniform Relocation
Act, Section 3 Requirements, and Minority/Women’s/Veteran’s Business
enterprises requirements
The State must maintain financial records for each project. The
following information must be included in the records:
 Chart of accounts
 Accounting procedures manual (standard operating procedures)
 Journals and ledgers
 Source documentation-purchase orders, invoices, cancelled checks
 Procurement information-bids, contracts awarded
 Bank account records including Revolving Fund records
 Draw down requests
 Payroll records and reports
 Financial reports
 Audits
 Relevant correspondence
The State will maintain the following records for each project:
 Eligibility determination
 National Objective achievement
 Agreement with funds recipient
 Procurement documentation
 Beneficiary location and characteristics
 Compliance with special requirements (environmental review, Section 3,
Davis-Bacon, etc.). Section 3 records include names& addresses of
businesses, types of jobs created, and hours & wages
 Budget & expenditure information including draw requests
 Project status
 Records are to be maintained a minimum of 5 years after
completion of project activities.
 Citizens must have reasonable access to records
 HUD & Comptroller General have access at any time requested
 The State prepares an annual report – “Performance and
Evaluation Report” (PER). Reports are submitted to HUD
Projects are closed out once:
•
Activities are complete
•
Funds are expended
•
National Objectives are met
•
Any other Federal compliance is complete
NJDEP’s Construction Management Section (CMS) provides oversight
of funded projects to ensure they are constructed and managed in
accordance with approved plans and specifications, loan agreement,
and all applicable state and federal regulations.
 Authorization to Award – CMS reviews procurement documentation
and low bidder’s proposal for compliance with program
requirements prior to award.
 Preconstruction Conference – CMS meets with the contractor,
engineer and owner to discuss the procedures to be followed to
comply with the construction and environmental requirements of
the contract documents and funding agreement.
 Interim Inspection – CMS inspects project records and construction
site. Funding recipient is advised of any corrective actions
required.
 Payment Requisitions – CMS verifies requested costs are within
scope of approved contracts and site inspections are conducted to
confirm reported construction progress.
 Final Inspection – CMS inspects project to verify completion of
construction and restoration work, startup testing, training and O&M
Manuals prior to start-up and final payment.
 Performance Certification – CMS monitors performance during first
year of operation to ensure project conforms to design criteria.

Funding recipient may not use debarred, suspended or ineligible
contractors. All contractors, subcontractors, consultants, and sub
recipients must be checked against:
 The System for Award Management (SAM) https://www.sam.gov
 State of NJ debarred list http://www.state.nj.us/treasury/debarred/.

Contractors and subcontractors must have a valid NJ Public Works
Contractor Registration.

Addenda must be approved by NJDEP and receipt acknowledged by all
bidders.

Advertisement for bids on a public contract shall be in accordance with NJ
Local Public Contract Law.

Contractor’s Bid bond and surety must be listed on US Treasury Circular
570.

Bid protests must be addressed prior to contract award.

Funding recipient must provide a legal opinion contract is awarded to other
than low bidder.
Appropriations Act for 2014 (P.L. 113-76) includes AIS requirement for the
DWSRF and the CWSRF programs. For projects for the construction,
alteration, maintenance, or repair of a public water system or treatment works,
with an assistance agreement executed beginning 1/17/14, recipients must use
iron and steel products that are produced in the United States.
 “Iron and steel products”:
products made primarily of iron or steel: lined or unlined pipes and fittings, manhole
covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and
restraints, valves, structural steel, reinforced precast concrete, and construction
materials.
 Municipal Castings:
Access Hatches - Ballast Screen - Benches – Bollards - Cast Bases - Cast Iron
Hinged Hatches, Square and Rectangular - Cast Iron Riser Rings - Catch Basin Inlet
- Cleanout/Monument Boxes - Cleanout/Monument Boxes - Construction Covers
and Frames - Curb and Corner Guards - Curb Openings - Detectable Warning
Plates - Downspout Shoes (Boot, Inlet) - Drainage Grates, Frames and Curb Inlets –
Inlets - Junction Boxes – Lampposts - Manhole Covers, Rings and Frames, Risers
 Structural Steel:
Rolled flanged shapes, having at least one dimension of their cross-section three
inches or greater, which are used in the construction of bridges, buildings, ships,
railroad rolling stock, and for numerous other construction purposes. Such shapes
are designated as wide-flange shapes, standard I-beams, channels, angles, tees
and zees. Other shapes including H-piles, sheet piling, tie plates, cross ties, and
those for other special purposes.
 Construction Materials:
Those articles, materials, or supplies made primarily of iron and steel, that are
permanently incorporated into the project, not including mechanical and/or electrical
components, equipment and systems. Wire rods, Bar, Angles, Concrete
Reinforcing Bar, Wire, Wire Cloth, Wire Rope and Cables, Tubing, Framing, Joists,
Trusses, Fasteners (i.e., nuts and bolts), Welding Rods, Decking, Grating, Railings,
Stairs, Access Ramps, Fire Escapes, Ladders, Wall Panels, Dome Structures,
Roofing, Ductwork, Surface Drains, Cable Hanging Systems, Manhole Steps,
Fencing and Fence Tubing, Guardrails, Doors, Stationary Screens.
 NOT CONSIDERED CONSTRUCTION MATERIALS:
Pumps, Motors, Gear Reducers, Drives (including VFDs),
Electric/Pneumatic/Manual Accessories Used to Operate Valves, Mixers,
Gates, Motorized Screens, Blowers/Aeration Equipment, Compressors,
Meters, Sensors, Controls and Switches, SCADA, Membrane Bioreactor
Systems, Membrane, Filtration Systems, Filters, Clarifiers and Clarifier
Mechanisms, Rakes, Grinders, Disinfection Systems, Presses, Conveyors,
Cranes, HVAC (excluding ductwork), Water Heaters, Heat Exchangers,
Generators, Cabinetry and Housings (such as electrical boxes/enclosures),
Lighting Fixtures, Electrical Conduit, Emergency Life Systems, Metal Office
Furniture, Shelving, Laboratory Equipment, Analytical Instrumentation,
Dewatering Equipment
 AIS Waivers
 The USEPA may issue waivers at any point before, during, or after the
bid process.
 Funding recipients are strongly encouraged to hold pre-bid conferences
with potential bidders. A pre-bid conference can help to identify iron and
steel products that may not be available from domestic sources. It may
also identify the need to seek a waiver prior to bid.
 USEPA may issue a waiver if one or more of three conditions is met:
1. AIS would be inconsistent with the public interest;
2. Iron and steel products are not produced In the United States in
sufficient and reasonably available quantities and of a satisfactory
quality; or
3. Inclusion of iron and steel products produced in the United States will
increase the cost of the overall project by more than 25%.
 De Minimis Waiver for Incidental Components:
1. May comprise not more than a total of 5% of the total cost of the materials used
in and incorporated into a project; the cost of an individual item may not exceed
1% of the total cost of the materials used in and incorporated into a projects.
2. Examples of incidental components – small washers, screws, fasteners (i.e.,
nuts and bolts), miscellaneous wire, corner bead, ancillary tube, etc.
3. Examples of items that are clearly not incidental include significant process
fittings (i.e., tees, elbows, flanges, and brackets), distribution system fittings and
valves, force main valves, pipes for sewer collection and/or water distribution,
treatment and storage tanks, large structural support structures, etc.
4. Funding recipients who wish to use this waiver should, in consultation with their
contractors, determine the items to be covered by this waiver and must retain
relevant documentation (i.e. invoices) for those items and document the total
cost of material used in their project files.
 AIS Waiver Processing
1. Funding recipient prepares waiver request in accordance with USEPA
guidance and submits to NJDEP.
2. NJDEP reviews request to ensure proper and sufficient documentation
is provided. Once the waiver application is complete, NJDEP forwards
application to USEPA for final determination.
3. USEPA will publish the request on its website for 15 days and receive
informal comment. USEPA evaluate application against their checklist
to determine whether it properly and adequately documents and
justifies the statutory basis cited for the waiver – that it is quantitatively
and qualitatively sufficient – and to determine whether or not to grant a
waiver.
 AIS Documentation
 Step Certification Process – Creates a paper trail which documents the location of
the manufacturing process involved with the production of steel and iron
materials. Each handler (supplier, fabricator, manufacturer, processor, etc.) of
the iron and steel products certifies that their step in the process was
domestically performed.




Name of the Manufacture
Location of manufacturing facility where the process took place
Description of the Product or item being delivered
Signature by a manufacturer’s responsible party
 Alternatively, the final manufacturer that delivers the iron or steel product to the
worksite, vendor, or contractor, may provide a certification asserting that all
manufacturing processes occurred in the United States. May be acceptable, but
may not provide the same degree of assurance as step certification. Additional
documentation may be needed. Step certification is the best practice.
 AIS Documentation should be collected during shop drawings review and iron
and steel products should be inspected for compliance when the arrive at the job
site.
 What happens if non-compliant product is identified?
 NJDEP will notify funding recipient and propose corrective action
 If non-compliance is confirmed, NJDEP will consult with USEPA and
take one or more of the following actions:
1. Request a waiver where appropriate;
2. require removal of the non-domestic item; or
3. withhold payment for all or part of the project.
Davis-Bacon – Generally applies to Federally funded or assisted
construction project valued at more than $2,000.
 Davis-Bacon wage rate determination and Poster must be displayed at job
site.
 Funding recipient will review Contractor’s weekly Certified Payroll Reports
(CPR).
 Are hours and wages properly reported?
 Are fringe benefits paid correctly?
 Are apprentices identified with certifications attached?
 Funding recipient must conduct interviews of contractor’s and
subcontractor’s workers (DOL Standard Form 1445). Interviews should:
 Includes contractor and subcontractor and be representative by trade
 Ensure confidentiality
 Occur on work site
 Highlight discrepancies between interviews and CPRs.
 Change Order Requirements:
 Change orders must be: executed on NJDEP form; signed by owner,
engineer and contractor; sealed by a NJ Professional Engineer; and
accompanied by a resolution from the governing body.
 Change orders must include justification for contract modification and
fully document change in contract costs.
 Change order work must be within the approved project scope.
 Change Orders shall not be used to substantially change the quality or
character of the items or work to be provided, inasmuch as such would
have been a determining factor in the original bidding.
 Change Orders generally should not exceed 20% of contract amount.
Goal to subcontract (generally 10%) of contract amount to socially and
economically disadvantaged (SED) firms.
 Contractor must prepare SED Utilization Plan outlining how they will meet
SED goal.
 Monthly and quarterly reporting to document contractor’s efforts to meet
SED goal.
 Prior to (or shortly after) loan agreement is awarded, contact
authorized representative to conduct an account set-up meeting.
 Loan Agreement – Key Components
 Exhibit B - Basis of Determination of Allowable Project Costs
• Identifies the total project budget and has line items for the
individual cost classifications
 Exhibit C – Disbursement and Project Schedules
• Projected disbursement schedule based on project budget,
project start date, and timeframe for project completion
• Project Schedule identifies major milestones from
advertisement and contract award dates to construction
completion and project performance certification
 Account Set-Up Meeting
•
•
Obtain bank account information from loanee’s authorized representative,
including the detailed account info to effectuate wire transfers
Provide payment requisition forms and State Vouchers forms for recipients to
request reimbursement for incurred costs as construction progresses and bills
from contractor’s, consulting engineers are received
 Outlay Report and Request for Reimbursement from NJ Environmental
Infrastructure Financing Program (Form SLP101)
 Fund Loan Disbursement Requisition
 State of New Jersey Payment Voucher (Form PV 6/93)
 Trust Loan Disbursement Requisition
 Project Backup information in sufficient detail to determine that the costs
submitted for reimbursement are allowable and allocable to the project
based on the approved scope and budget
 The payment requisition process is initiated by the subrecipient who submits a State of
New Jersey Payment Voucher (PV) and the required documents/support to the
Municipal Finance and Construction Element (MC & CE)
 The payment package is reviewed to insure that the cost documentation and the
appropriate forms are complete and accurate. The assigned construction manager
(who performs on-site visits and inspections) also reviews and approves the payment
as part of the processing.
 After staff review and all of the required management approvals are obtained (5
approval signatures), the payment package is sent to the Division of Budget and
Finance, Office of Trust Fund Management (TFM).
 TFM reviews the voucher package to ensure it has all of the required documentation
and the approvals to process the payment and posts the disbursement to the
individual loan Excel spreadsheet and paper log records.
 TFM prepares a State of New Jersey Accounting Bureau Vendor Payment Voucher
(A1) and the Wire Transfer Memorandum to Cash Accounting in the Department of
Treasury for each loan disbursement. Loan disbursements are drawn such that the
Federal funds are received on the date that the wire disbursement is sent to the loan
recipient.
 USEPA Reporting

CWSRF/DWSRF Annual Reports

USEPA’s On-Site Reviews and Performance Assessment
Reports

Benefits Reporting (CWBR & PBR)

Federal Funds Accountability and Transparency Act (FFATA)
 Annual Audits

NJEIT Auditors

State Single Audit Act
Questions?
Gene Chebra
NJ Department of Environmental Protection
Division of Water Quality
(609) 292-8960
Eugene.Chebra@dep.nj.gov
www.nj.gov/dep/dwq