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Publication

September 23, 2009Client Alert

Update #6 on Use of Federal Stimulus Funds for Clean Water Fund Program and Safe Drinking Water Loan Program

In mid-April 2009, the Wisconsin Department of Natural Resources (“DNR”) announced that it would use a portion of federal stimulus funds provided by the American Recovery and Reinvestment Act of 2009 (“the Act”) for grants under the Safe Drinking Water Loan Program (“SDWLP”) and Clean Water Fund Program (“CWFP”). Recent client alerts discussing this announcement and updates following the announcement can be found at: http://www.michaelbest.com/wisconsin-dnr-announces-federal-stimulus-for-sdwlp-and-cwfp/; http://www.michaelbest.com/update-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/; http://www.michaelbest.com/update-2-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/; http://www.michaelbest.com/update-3-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/; http://www.michaelbest.com/update-4-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/; and http://www.michaelbest.com/update-5-on-use-of-federal-stimulus-funds-for-sdwlp-and-cwfp/.

DNR has provided updated information regarding the granting of funds under these two programs.

Revised CWFP Draft Funding List

DNR published a revised draft funding list for CWFP on September 2, 2009, which can be found at http://dnr.wi.gov/org/caer/cfa/EL/Section/news.html. Municipalities should use this list to confirm whether or not they are in the fundable project range.

First Disbursement Requests

To ensure DNR staff has sufficient time to process disbursement requests, DNR is requesting that municipalities in the fundable range of the draft funding lists for either program submit their first disbursement requests and accompanying invoices as soon as possible. Subsequent disbursement requests can be made through the day of closing, and DNR can disburse multiple requests on the day of the loan closing. Disbursement requests can be made by submitting Form 8700-215, which can be found at http://dnr.wi.gov/org/caer/cfa/EL/FORMS/forms.html.

Revised Budgets Must Be Submitted by October 1, 2009

On or before October 1, 2009, projects currently listed in the fundable range of the draft funding lists for either program must submit to DNR a revised budget. The expenses on the revised budget must be justified by contracts or known or likely costs involved in the project. Although DNR is requiring revised budgets, DNR can only fund items or work that fall within the original scope of the project. DNR will consider the revised budget prior to publishing the final funding lists for both CWFP and SDWLP. DNR intends to publish the final funding lists as soon after October 1 as possible.

Construction Contract Deadline Is October 1, 2009

Applicants who are near to, but outside of, the fundable range on the SDWLP list or revised CWFP list or were moved into the fundable range in the revised CWFP list must submit contract bidding documents to DNR’s Bureau of Community Financial Assistance on or before October 1, 2009. Specifically, the following documents must be submitted:

  • Evidence of bid advertisement;
  • Proposal of the bidder to whom the applicant intends to award the contract;
  • Legal opinion of statutory compliance, if the bid is going to be awarded to other than the lowest bidder;
  • Bid tabulation;
  • Engineer’s recommendation based on bid evaluation;
  • Addenda to plans and specifications, if any;
  • A copy of the bid bond; and
  • A revised project budget sheet based on the bids.

Applicants who are in the fundable range of the SDWLP draft funding list or the original CWFP draft funding list must submit to DNR all of the following documents on or before October 1, 2009:

  • All of the documents listed above;
  • A copy of each fully executed construction contract, including the notice of the award; and
  • The construction start date and expected dates for substantial and final completion for each project.

In certain circumstances, the above-listed deadlines may be extended. To confirm whether one’s deadline can be extended, the municipality should contact Jeanne Cargill at 608.267.7587 or jeanne.cargill@wisconsin.gov.

SDWLP Loan Funds

Applicants in the fundable range of the draft SDWLP funding list that do not meet the October 1, 2009 deadline for submittal of construction bids are not eligible for funds from the Act. However, such applicants are eligible for SDWLP funds, if they can close on the loan prior to April 30, 2010. Applicants who believe they cannot meet the October 1, 2009 deadline should contact Jeanne Cargill at 608.267.7587 or jeanne.cargill@wisconsin.gov as soon as possible.

CWFP Subsidized Interest Rates

Applicants who submitted an Intent to Apply prior to December 31, 2007 and are listed in the fundable range on the revised CWFP funding list are eligible for a subsidized interest rate of 55% of the market interest rate.

Applicants who submitted an Intent to Apply after December 31, 2007 are eligible to receive a subsidized interest rate of 60% of the market interest rate.

Documenting Green Project Elements

At least 20% of the Act funds for each program must be used to finance green projects or green project elements. Applicants must submit documentation to their project manager prior to preparing the Financial Assistance Agreement documenting how the claimed dollar amounts were calculated and what makes the project green. Guidance regarding documentation of green projects and green project elements is available at http://dnr.wi.gov/org/caer/cfa/EL/Section/news.html.

The Act Logo Must Appear at Construction Sites

The logo for the Act must be posted at construction sites of projects funded by DNR with funds from the Act. The logo can be downloaded at http://www.recovery.gov/?q=node/203.

Applicants Intending to Accept Only Funds from the Act

Applicants who intend to accept funds only from the Act, and not SDWLP or CWFP funds, must advise their project managers as soon as possible. Such applicants must meet different requirements prior to loan closing.

If you have questions regarding eligibility for these grants or want more information on how to apply, please contact one of the authors of this alert.

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