Document Moscow_doc_9bf4c52b0b

STATE OF IDAHO DEPARTMENT OF ENVIRONMENTAL QUALITY LOAN OFFER, ACCEPTANCE AND AGREEMENT FOR DRINKING WATER TREATMENT DESIGN AND CONSTRUCTION SECTION I. INTRODUCTION The State ofldaho (hereinafter "State") is authorized by Idaho Code Title 39, Chapter 36 (hereinafter "Act"), to make loans from the Drinking Water Treatment Facility Loan Account (hereinafter "Accotint") to assist municipalities in the construction of drinking water treatment facilities. The Idaho Board of Environmental Quality, through the Department of Environmental Quality (hereinafter "Department"), is authorized to administer the Act. The Department has determined that the City of Moscow (hereinafter "City" ) has established eligibility for a loan under the terms of the Act and ID APA 58.01.20, the Idaho Rules for Administration of Drinking Water Loan Program (hereinafter "the Rules"). City is a public entity with the authority to finance public improvements. City also has the authority to operate and maintain the public drinking water system located in the City of Moscow and take all necessary actions to ensure that the public drinking water system meets all applicable laws. The Department hereby offers a loan to City according to the terms and conditions contained in this document and the Rules. SECTION II. DESCRIPTION OF PROJECT This loan agreement is for design and construction of the following Project: A. Loan Project Number: B. Name and Address of Borrower: C. Project Description: D. Terms: Moscow DW1406 CFDA #66-648 DW 1406 City of Moscow P 0 Box 9203 Moscow, Idaho 83843 The Project consists of the construction of a new well, well house, and booster stations, and improving the transmission system. $4,300,000 at 2.25% (interest of 1.25% and loan fee of 1.00%) to be repaid in biannual installments over 20 years. 41 743.0004.6676020. l 2-0\L\-YO ---PAGE BREAK--- E. Estimated Project Budget: 1. Transmission & Distribution 2. Booster Stations 3. Source Development 4. Total SECTION III. GENERAL CONDITIONS :35"°0:;,00(t $ 3-so0,eee 1,600,000 2,350,000 $ 4.300.000 This offer may only be accepted by signature by an authorized representative of City. Upon acceptance by City, this offer shall become a loan agreement (hereinafter "Agreement"). By accepting this offer, City agrees to all terms and conditions set forth in this document and the Rules: City agrees: A. To not transfer, assign or pledge any beneficial interest in this Agreement to any other person or entity without the prior written consent of the Director of the Department of Environmental Quality (hereinafter "Director"). To not enter into sale, lease or transfer of any of the property related to the Agreement. To not make any additional material encumbrances to the Project without the prior written consent of the Director. To not incur any liabilities that would materially affect the funds pledged to repay this loan without the prior written consent of the Director. To not delegate legal responsibility for complying with the terms, conditions, and obligations of this Agreement without the prior written consent of the Director. Notwithstanding any other provision of this paragraph, City may only sell or otherwise dispose of any of the works, plant, properties and facilities of the Project or any real or personal property comprising a part of the same which shall have become unserviceable, inadequate, obsolete or unfit to be used in the operation of the Project, or no longer necessary, material or useful in such operation, without the prior written consent of the Director. B. To enter into such contractual arrangements with third parties as it deems advisable to assist it in meeting its responsibilities under this Agreement. C. To fulfill all declarations, assurances, representations and statements in the application and all other documents, amendments and communications filed with the Department by City in support of the request for this loan. The application is attached hereto and incorporated by reference herein. D. To comply with applicable State and Federal employment requirements including, but not limited to, Equal Employment Opportunity and Civil Rights requirements. E. To make efforts to award subagreements to Disadvantaged Business Enterprises (DBE) which includes Minority and Women-owned businesses (MBE/WBE) a follows: 1. The separate fair share goals for DEQ will be in bid solicitations and documentation of efforts to obtain DBE participation will be required of any contractor who fails to attain the goals; Moscow DW1406 CFDA #66-648 2 41743.0004.6676020. l ---PAGE BREAK--- 2. Annual reports of DBE utilization will be prepared on forms supplied by the Department; and, 3. Including the following language in all procurement contracts "The contractor shall not discriminate on the basis of race, color, national origin or sex in the performance of this Agreement. The contractor shall carry out applicable requirements of 40 CFR Part 33 in the award and administration of contracts awarded under EPA.financial assistance agreements. Failure by the contractor to carry out these requirements is a material breach of this Agreement which may result in the termination of this Agreement or other legally available remedies. " F. City has provided the Department with documentation evidencing ownership of, and/or the right of access or easements for real property on which the Project is proposed to be constructed. Clear title or legal right to access all real property necessary for the successful operation of the facilities shall be guaranteed by City for the useful life of the Project, prior to commencement of construction. Land acquisitions shall only be reimbursed by Department if obtained from a willing seller. G. That if, prior to completion of this Agreement, the Project is damaged or destroyed, there will be no reduction in the amounts payable by City to the Department. H. That in the event there is any default in the payment of either the principal amount, loan fee or the interest due under this Agreement, or any breach by City of any of the terms or conditions of this Agreement, the entire principal amount and whatever interest and fees are due to the date of payment may be declared due and immediately payable. The amount of such default shall bear the same interest and fee rate as applies to the principal of this loan from the date of default until the date of payment by City. All costs incurred by the Department due to such default, including court costs and attorney's fees, shall be repaid by City to the Department. I. That at any time, any waiver by the Department, of the rights or duties under this Agreement, shall not be deemed a waiver of any subsequent or additional rights or duties under this Agreement. J. That the use by the Department of any remedy specified in this Agreement for its enforcement is not exclusive and shall not deprive the Department of the right to seek any other appropriate legal or equitable remedy. K. That this Agreement is binding upon City and the Department, and any person, office or entity succeeding City or the Department. L. To comply with all applicable federal, state and local laws. M. In the event any term of this Agreement is held to be invalid or unenforceable by a court, the remaining terms of this Agreement will remain in force. N. The total loan funds disbursed per this Agreement are considered federal financial assistance per the Single Audit Act of 1984, as amended by the Single Audit Act Amendments of 1996 (SAA), 31 U.S.C. §§7501-7507. (2000). If City expends more than five hundred thousand dollars ($500,000) Moscow DWI 406 CFDA #66-648 3 41743.0004.6676020. l ---PAGE BREAK--- of any federal funds in a fiscal year, City shall conduct an audit in accordance with the SAA. In such case, City shall provide the Department a copy of the SAA audit within nine months of the end of the audit period per the SAA. City recognizes that it is responsible for determining if the five hundred thousand dollars ($500,000) threshold is reached and if a SAA audit is required. Additionally, City shall inform the Department, in writing, of findings or recommendations pertaining to the State Revolving Fund contained in any SAA audits conducted by City. 0. As per Executive Order 12549, 2 CFR 180 and 2 CFR 1532, the loan recipient agrees to not enter into covered transactions with any contractors or subcontractors that have been suspended or debarred, and to include a similar term or condition in all lower tier covered contracts and transactions. P. Comply with all federal requirements applicable to the Agreement (including those imposed by the 2014 Appropriations Act (Public Law 113-76, Section 436) and related SRF Policy Guidelines) which includes requirements that all of the iron and steel products used in the Project are to be produced in the United States ("American Iron and Steel Requirement") unless City has requested and obtained a waiver from Department pertaining to the Project; or (ii) Department has otherwise advised City in writing that the American Iron and Steel Requirement is not applicable to the Project. Q. Comply with all record keeping and reporting requirements under the Safe Drinking Water Act (Section 1452 of Title 14 including any reports required by a Federal agency or department such as information on costs and Project progress. R. City understands that each contract and subcontract related to the Project is subject to audit by appropriate federal and/ or state entities; and (ii) failure to comply with the Safe Drinking Water Act and this Agreement may be a default hereunder that results in a repayment of the loan in advance of the maturity of the Bonds and/or other remedial actions. SECTION IV. PROJECT MANAGEMENT City agrees to: A. Require the prime engineering firm( s) and their principals retained for engineering services to carry professional liability insurance to protect the public from the engineer's negligent acts and errors of omission of a professional nature. The total aggregate of the engineer's professional liability insurance shall be at least one hundred thousand dollars ($100,000) or twice the amount of the engineer's fee, whichever is greater. Professional liability insurance must cover all services rendered for all phases of the Project, whether or not those services are state funded, until the certification of Project performance is accepted by the Department. B. Comply with the Public Works Contractors License Act and the Public Contracts Bond Act, Title 54, Chapter 19, Idaho Code, including requiring the prime construction contractor retained for construction to carry performance and payment bonds equal to one hundred percent (100%) of the contract price. The bond will be released when the constructed facility is accepted by City. Moscow DW1406 CFDA #66-648 4 41743.0004.6676020. l ---PAGE BREAK--- C. Assure that contracts related to the Project which provide for arbitration allow appeal of any resulting arbitration decision to a district court or allow the arbitration to be non-binding on both parties if either party desires not to use arbitration as a method of dispute settlement. D. Jointly with an engineering consultant, provide assurances that the physical and operational integrity of the works, when constructed, will achieve the level of treatment provided for in the design specifications. E. Provide for the accumulation of funds through charges made for services or otherwise, for the purposes of establishing a fund dedicated solely to the repayment of principal, interest and loan fee on this loan; (ii) capital replacement; and (iii) future improvement, betterment, and extension of such works occasioned by increased usage on the facility. F. Provide a plan and program for an equitable user charge system, as permitted by law, for payment of operation and maintenance of constructed facilities. The user charge system shall be approved by the Department and enacted by City prior to receiving final payment. Make available on an equitable basis the services of the Project to the residents and commercial and industrial establishments of the area it was designed to serve. G. Develop and adopt a water system protection ordinance approved by the Department prior to receiving final payment of loan funds. H. Provide to the Department for approval, an operation and maintenance manual for the Project. The manual shall be approved by the Department prior to receiving final payment of loan funds. I. Provide adequate staffing and qualified operation and maintenance personnel as specified in the operation and maintenance manual approved by the Department. J. Assure that the operator in responsible charge of the facility has a level of competency commensurate with the nature of the facility. He or she must be licensed as a Drinking Water Operator in a class equal to or greater than that of the facility. K. Assure that distribution and treatment facility personnel shall participate in operator training programs designed to assure competence in the operation and maintenance of the facility. L. Commence satisfactory operation and maintenance of the drinking water facility on completion of the Project in accordance with applicable provisions, rules of the Department and any other applicable law, rule or regulation and not discontinue operation or dispose of the facility without the written approval of the Department. M. Review and update the user charge system, as permitted by law, at least biennially during the life of this Agreement to assure that all costs including debt retirement, operation and maintenance, are offset by sufficient revenues. N. Maintain Project accounts in accordance with generally accepted accounting principles. Moscow DWI 406 CFDA #66-648 5 41743.0004.6676020. l ---PAGE BREAK--- 0. All laborers and mechanics employed by the prime construction contractor and subcontractors in the Project using State Revolving Fund (SRF) loans shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality in accordance with the labor standards, including prevailing wage rates and instructions for reporting, as established by the United States Department of Labor (subchapter IV of Chapter 31 of title 40, United States Code). City agrees that all procurement contracts must include as a term and condition that contractors and subcontractors must obtain wage determinations from the Department of Labor and comply with Department of Labor guidance and regulations implementing wage rate requirements applicable to SRF funds. Wage determinations shall be finalized prior to fmal bid submissions. Specific requirements related to Davis Bacon compliance are included in Chapter 6, Form C, of the Loan Handbook, located at http://www.deg.idaho.gov/media/577403-form 6 c.pdf. SECTION V. SPECIAL CONDITIONS A. City shall complete the attached Project schedule and submit to the Department for approval on or before sixty (60) days from the date of this loan offer. No funds shall be disbursed per this Agreement until a Project schedule has been approved by the Department. The Department approved Project schedule shall be attached to this Agreement as Attachment and incorporated by reference as if fully set forth herein. City shall complete the Project in accordance with the approved Project schedule. B. All amendments to the Project schedule must be approved by the Project engineer in the Department's Lewiston Regional Office, prior to becoming effective. No disbursements for the booster station work will be approved until the related environmental information document has been fmalized. C. Prior to fmal loan distribution, City shall have established a written customer service policy and an operating emergency plan (supported by board adoption). Examples of plans, policies and controls are available from the DEQ state office in Boise. D. An on-site inspector shall be present during construction. E. Prior to commencing disbursement of loan funds for construction, a technical memorandum will have been submitted and approved for each item identified as a Green Project Reserve (GPR) component in the Letter of Interest. Each memorandum fully justifies the GPR designation according to the current EPA Guidance for Determining Project Eligibility. The technical memorandum shall be made available as part of the plans and specifications submission. Please review the following URLs for guidance: 1. http://kia.ky.gov/NR/rdonlvres/08C6B5D5-BD95-4DC7-A579- 9CAA 7 AEAA 7 AB/O/EP A GPR Guidance May2011.pdf 2. http://water.epa .gov/grants gpr business case examples 508 compliant.pdf 3. http://www.deq.idaho.gov/water-quality/g:rants-loans/green-project-reserve.aspx Moscow DW1406 CFDA #66-648 6 41743.0004.6676020. l ---PAGE BREAK--- SECTION VI. SECURITY REQUIREMENTS City agrees: A This loan will be evidenced and secured by a promissory note or bond in the amount of four million three hundred thousand dollars ($4,300,000). The promissory note or bond will be issued upon Project completion and incorporated by reference into this Agreement. B. There will be a reserve fund equal to one year's payment of principal, fees and interest on the loan established. City has ten ( 10) years to establish the reserve, setting aside ten percent ( 10%) of one year's payment into the reserve fund each year. SECTION VII. LOAN DISBURSEMENTS City agrees: A This loan shall be used solely to aid in the financing of City's Project described in Section II. B. Requests for actual disbursement of loan funds will be made by City using forms provided by the Department. Upon approval of the disbursement request by the Department, loan funds shall be released to City. C. The costs set forth in Section II have been determined by the Department to be eligible costs for funding. Some of the costs however, have been estimated, and the actual costs may differ from such estimated costs. A Project review by the Department will determine final eligible costs for the Project. D. If the actual eligible cost of the Project is determined by the Department to be lower than the estimated eligible cost, the loan amount will be reduced accordingly. E. An increase in the loan amount as a result of an increase in eligible Project costs shall be considered, provided funds are available. Documentation supporting the need for an increase must be submitted to the Department for approval prior to incurring any costs above the eligible cost ceiling. F. Payment of the final five percent of this loan shall be withheld until the following requirements are met: 1. City certifies ( 1) that the Project has been constructed according to plans and specifications previously approved by the Department; (ii) an operations manual has been completed; and (iii) that the Project is fully operational; and 2. The Department has inspected the Project and verifies City's certification. G. Payment of the final ten percent (10%) of this loan shall be withheld until the following requirements are met: Moscow DW1406 CFDA #66-648 7 41743.0004.6676020.1 ---PAGE BREAK--- I. The Special Conditions in Section V have been met; and 2. A responsible charge operator (hereinafter "RCO") has been designated who is licensed at or above the classification level of the system. At such times as the RCO is not available, a substitute RCO shall be designated to replace the RCO, who is licensed at or above the classification level of the system. H. This offer is subject to the existence of the offered sum of money in the Account at the time of payment. Should the offered sum of money not be available in the Account at the time of payment, the Department hereby agrees to pay City the offered sum of money on the basis of City's priority position immediately upon the accrual of said sum in the Account. SECTION VIII. REPAYMENT TERMS AND SCHEDULE City agrees: A. This loan shall be repaid in the manner set forth in the promissory note or bond which shall be attached to this Agreement and incorporated by reference. The payment terms of the promissory note or bond shall be consistent with this Agreement. B. To pay biannual payments of principal, fees and interest and to fully amortize this loan not later than twenty (20) years from Project completion. Interest will begin accruing with the first disbursement of funds. At the time of closing, accrued interest will be either paid to the Department or incorporated into the fmal loan amount if the approved amount has not been exceeded. C. At the time of closing, the Department may elect to impose a loan fee (not to exceed one percent [ 1 % pursuant to the Rules. If a loan fee is imposed, the loan interest rate will be reduced by the amount of the loan fee. The loan fee will be assessed against the fmal loan balance, which shall include the entire principal balance and may include capitalized interest. Any loan fee shall be due and payable concurrently with scheduled loan principal and interest repayments over the repayment period. D. This Agreement shall remain in full force and effect until all loan proceeds, including principal, interest and loan fee, have been paid in full or the Agreement is otherwise suspended or terminated by the Department. SECTION IX. SUSPENSION OR TERMINATION OF LOAN AGREEMENT A. The Director may suspend or terminate this Agreement prior to fmal disbursement for failure of the loan recipient or its agents, including engineering finn(s), contractor(s), or subcontractor(s) to perform. This Agreement may be suspended or terminated for good cause including, but not limited to, the following: 1. Commission of fraud, embezzlement, theft, forgery, bribery, misrepresentation, conversion, malpractice, misconduct, malfeasance, misfeasance, falsification or unlawful destruction of records, receipt of stolen property, or any form of tortious conduct; or Moscow DW1406 CFDA #66-648 8 41743.0004.6676020.1 ---PAGE BREAK--- 2. Commission of any crime for which the maximum sentence includes the possibility of one or more years imprisonment, or any crime involving or affecting the Project; or 3. Violation(s) of any term of this Agreement; or 4. Any willful or serious failure to perform within the scope of the Project, plan of operation and Project schedule, terms of engineering subagreements, or contracts for construction; or 5. Utilizing a contractor or subcontractor who has been suspended or debarred by order of any federal or state agency from working on public work projects funded by that agency. B. The Director will notify City in writing and by certified mail of the intent to suspend or terminate this Agreement. The notice of intent shall state: 1. Specific acts or omissions which form the basis for suspension or termination; and 2. Availability of a contested case hearing before the Board of Environmental Quality conducted as provided for in the Rules of Administrative Procedure Before the Board of Environmental Quality, IDAPA 58.01.23. C. If City does not initiate a contested case hearing before the Board by filing a petition within the time period specified by the Rules of Administrative Procedure Before the Board of Environmental Quality, IDAP A 58.01.23., the Department may thereafter terminate or suspend the Agreement by written notice to City. If City initiates a contested case, the termination or suspension shall be determined by the Board. D. City shall perform no work under the Agreement after receiving a notice of intent to suspend or terminate until all administrative proceedings and appeals therefrom are fmal or the Department reinstates the Agreement as provided herein. E. Upon written request by City with evidence that the cause(s) for suspension no longer exists, the Director may, if funds are available, reinstate the Agreement. If a suspended Agreement is not reinstated, the loan will be amortized and a repayment schedule prepared in accordance with the provisions of this Agreement. F. No terminated loan shall be reinstated. Terminated loans will be amortized and a repayment schedule prepared in accordance with the provisions of this Agreement. If the loan is terminated prior to fmal disbursement, City shall immediately pay back to the Department all disbursed funds and accrued interest. SECTION X. ACCESS AND INDEMNIFICATION City agrees to: A. Provide the Director, or Director's authorized agents, and the U.S. Environmental Protection Agency, access to all files, records, accountings and books relating to the management and accountability of this loan. Moscow DW1406 CFDA #66-648 9 41743.0004.6676020.1 ---PAGE BREAK--- B. Indemnify and hold harmless the State of Idaho, its agents and its employees from any and all claims, actions, damages, liabilities and expenses directly or indirectly connected to City or its agents, employees, contractors, or assignees' actions related to the location, design, construction, operation, maintenance, repair, failure or deactivation of the Project or any part of the Project. SECTION XI. OFFER The offer set forth herein must be accepted, if at all, on or before June 30, 2014. An acceptance must be accompanied by a resolution of City's governing body authorizing the signator to sign on City's behalf for the purpose of this Agreement. Dated June_.11!._, 2014. 1: A. Fransen, Director partment of Environmental Quality SECTION XII. ACCEPTANCE The City of Moscow, by and through its undersigned representative(s), accepts the foregoing offer and agrees to discharge all obligations and to comply with all terms and conditions contained herein. City of Moscow, Idaho BBL s. Lw. 11, 'JAJI v , Date Moscow DWl406 CFDA #66-648 10 41743.0004.6676020.1 ---PAGE BREAK--- Attachment B Wage Rate Requirements Under The Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6) Preamble With respect to the Clean Water and Safe Drinking Water State Revolving Funds, EPA provides capitalization grants to each State which in tum provides subgrants or loans to eligible entities within the State. Typically, the subrecipients are municipal or other local governmental entities that manage the funds. For these types of recipients, the provisions set forth under Roman Numeral I, below, shall apply. Although EPA and the State remain responsible for ensuring subrecipients' compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary responsibility to maintain payroll records as described in Section 3(ii)(A), below and for compliance as described in Section 1-5. Occasionally, the subrecipient may be a private for profit or not for profit entity. For these types of recipients, the provisions set forth in Roman Numeral II, below, shall apply. Although EPA and the State remain responsible for ensuring subrecipients' compliance with the wage rate requirements set forth herein, those subrecipients shall have the primary responsibility to maintain payroll records as described in Section II-3(ii)(A), below and for compliance as described in Section 11-5. Requirements Under The Consolidated and Further Continuing Appropriations Act. 2013 CP.L. 113-6) For Subrecipients That Are Governmental Entities: The following terms and conditions specify how recipients will assist EPA in meeting its Davis-Bacon (DB) responsibilities when DB applies to EPA awards of financial assistance under the FY 2013 Continuing Resolution with respect to State recipients and subrecipients that are governmental entities. If a subrecipient has questions regarding when DB applies, obtaining the correct DB wage determinations, DB provisions, or compliance monitoring, it may contact the State recipient. If a State recipient needs guidance, the recipient may contact Idaho DEQ's Tim Wendland at [EMAIL REDACTED] or at [PHONE REDACTED]. The recipient or subrecipient may also obtain additional guidance from U.S. Department of Labor's (DOL) web site at http://www.dol.gov/whd/ I. Applicability of the DB prevailing wage requirements. Under the FY 201 3 Continuing Resolution, DB prevailing wage requirements apply to the construction, alteration, and repair of treatment works carried out in whole or in part with assistance made available by a State water pollution control revolving fund and to any construction project carried out in whole or in part by assistance made available by a drinking water treatment revolving loan fund. If a subrecipient encounters a unique situation at a site that presents uncertainties regarding DB applicability, the subrecipient must discuss the situation with the recipient State before authorizing work on that site. 2. Obtaining Wage Determinations. Subrecipients shall obtain the wage determination for the locality in which a covered activity subject to DB will take place prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation) for activities subject to DB. These wage determinations shall be incorporated into solicitations and any subsequent contracts. Prime contracts must contain a provision requiring that subcontractors follow the wage determination incorporated into the prime contract. ---PAGE BREAK--- Attachment 8 While the solicitation remains open, the subrecipient shall monitor www.wdol.gov weekly to ensure that the wage determination contained in the solicitation remains current. The subrecipients shall amend the solicitation if DOL issues a modification more than I 0 days prior to the closing date (i.e. bid opening) for the solicitation. IfDOL modifies or supersedes the applicable wage determination Jess than I 0 days prior to the closing date, the subrecipients may request a finding from the State recipient that there is not a reasonable time to notify interested contractors of the modification of the wage determination. The State recipient will provide a report of its findings to the subrecipient. (ii) If the subrecipient does not award the contract within 90 days of the closure of the solicitation, any modifications or supersedes DOL makes to the wage determination contained in the solicitation shall be effective unless the State recipient, at the request of the subrecipient, obtains an extension of the 90 day period from DOL pursuant to 29 CFR l The subrecipient shall monitor www.wdol.gov on a weekly basis ifit does not award the contract within 90 days of closure of the solicitation to ensure that wage determinations contained in the solicitation remain current. If the subrecipient carries out activity subject to DB by issuing a task order, work assignment or similar instrument to an existing contractor (ordering instrument) rather than by publishing a solicitation, the subrecipient shall insert the appropriate DOL wage detennination from www.wdol.gov into the ordering instrument. Subrecipients shall review all subcontracts subject to DB entered into by prime contractors to verify that the prime contractor has required its subcontractors to include the applicable wage determinations. As provided in 29 CFR l DOL may issue a revised wage determination applicable to a subrecipient's contract after the award of a contract or the issuance of an ordering instrument ifDOL determines that the subrecipient has failed to incorporate a wage determination or has used a wage determination that clearly does not apply to the contract or ordering instrument. If this occurs, the subrecipient shall either terminate the contract or ordering instrument and issue a revised solicitation or ordering instrument or incorporate DOL's wage determination retroactive to the beginning of the contract or ordering instrument by change order. The subrecipient's contractor must be compensated for any increases in wages resulting from the use ofDOL's revised wage determination. 3. Contract and Subcontract provisions. The Recipient shall insure that the subrecipient(s) shall insert in full in any contract in excess of $2,000 which is entered into for the actual construction, alteration and/or repair, including painting and decorating, of a treatment work under the or a construction project under the financed in whole or in part from Federal funds or in accordance with guarantees of a Federal agency or financed from funds obtained by pledge of any contract of a Federal agency to make a loan, grant or annual contribution (except where a different meaning is expressly indicated), and which is subject to the labor standards provisions of any of the acts listed in§ 5.1 or the FY 2013 Continuing Resolution, the following clauses: ---PAGE BREAK--- Attachment B Minimum wages. All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made· a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section I(b)(2) of the DB Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(l)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in§ 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph I )(ii) of this section) and the DB poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. Subrecipients may obtain wage determinations from the DOL's web site, www.dol.gov. (ii)(A) The subrecipient(s), on behalf ofEPA, shall require that any class of laborers or mechanics, including helpers, which is noJ listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The State award official shall approve a request for an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: The work to be performed by the classification requested is not performed by a classification in the wage determination; and The classification is utilized in the area by the construction industry; and The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the subrecipient(s) agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), documentation of the action taken and the request, including the local wage determination shall be sent by the subrecipient to the State award official: The State award official will transmit the request, to the Administrator of the Wage and Hour Division, Employment Standards Administration, DOL, Washington, DC 20210 and to the EPA DB ---PAGE BREAK--- Attachment B Regional Coordinator concurrently. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification request within 30 days of receipt and so advise the State award official or will notify the State award official within the 30-day period that additional time is necessary. In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the subrecipient(s) do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the award official shall refer the request and the local wage determination, including the views of all interested parties and the recommendation of the State award official, to the Administrator for determination. The request shall be sent to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt of the request and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs or of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, provided, that the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the DB Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. Withholding. The subrecipient(s), shall upon written request of the EPA Award Official or an authorized representative of the DOL, withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to DB prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required by the contract, the (Agency) may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. Payrolls and basic records. Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or ---PAGE BREAK--- Attachment B costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section l(b)(2)(B) of the DB Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(l )(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section l of the DB Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy of all payrolls to the subrecipient, that is, the entity that receives the sub-grant or loan from the State capitalization grant recipient. Such documentation shall be available on request of the State recipient or EPA. As to each payroll copy received, the subrecipient shall provide written confirmation in a form satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29 CFR 5.5(a)(l ) based on the most recent payroll copies for the specified week. The payrolls shall set out accurately and completely all of the information required to be maintained under 29 CFR except that full social security numbers and home addresses shall not be included on the weekly payrolls. Instead the payrolls shall only need to include an individually identifying number for each employee the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.gov/whd/forms/wh347instr.htm or its successor site. The prime contractor .is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the subrecipient(s) for transmission to the State or EPA if requested by EPA , the State, the contractor, or the Wage and Hour Division of the OL for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the subrecipient(s). Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: That the payroll for the payroll period contains the information required to be provided under§ 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under§ 5.5 of Regulations, 29 CFR part 5, and that such information is correct and complete; That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3; That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage ---PAGE BREAK--- Attachment B determination incorporated into the contract. The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph of this section. The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 1 8 and section 23 I of title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph of this section available for inspection, copying, or transcription by authorized representatives of the State, EPA or the DOL, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. ( 4) Apprentices and trainees-- Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the DOL, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually perfonned. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage detennination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. ---PAGE BREAK--- Attachment B (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work perfonned unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by fonnal certification by the DOL, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division detennines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage detennination for the classification of work actually performed. In addition, any trainee perfonning work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 1 1246, as amended, and 29 CFR part 30. Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract. ( 6) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR 5.5(a)( l ) through (10) and such other clauses as the EPA determines may by appropriate, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractqr shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for tennination of the contract, and for debannent as a contractor and a subcontractor as provided in 29 CFR 5.12. Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the DB and Related Acts contained in 29 CFR parts 1 , 3, and 5 are hereiƏ incorporated by reference in this contract. Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general dispute clause of this contract. Such cLisputes shall be resolved i11 accordance wil'h the procedures of the DOL set forth in 29 CFR parts 5, 6, and 7. Disputes within the me1ming of this clause include disputes between the contractor (or any of its subcontractors) and Subrecipient(s), State, EPA, t:11e DOL, or the e1nployees or their repre e111atives. ---PAGE BREAK--- Attachment B ( 1 0) Certification of eligibility. By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or finn ineligible to be awarded Government contracts by virtue of section 3(a) of the DB Act or 29 CFR 5.12(a)( 1 (ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the DB Act or 29 CFR 5.12(a)(l (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 1 8 U.S.C. 1 00 1 . 4. Contract Provision for Contracts in Excess of $100,000. Contract Work Hours and Safety Standards Act. The subrecipient shall insert the following clauses set forth in paragraphs l and of this section in full in any contract in an amount in excess of $ 1 00,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses shall be inserted in addition to the clauses required by Item 3, above or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards. ( 1 ) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment oflaborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph l ) of this section the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph of this section, in the sum of $ 1 0 for each calendar day on which such individual was required or pennitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph of this section. Withholding for unpaid wages and liquidated damages. The subrecipient, upon written request of the EPA Award Official or an authorized representative of the DOL, shall withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be detennined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (b of this section. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph through ( 4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs through of this ---PAGE BREAK--- Attachment B section. In addition to the clauses contained in Item J, above, in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29 CFR 5.1, the Subrecipient shall insert a clause requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shall preserve them for a period of three years from the completion of the contract for all laborers and mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, deductions made, and actual wages paid. Further, the Subrecipient shall insert in any such contract a clause providing hat the records to be maintained under this paragraph shall be made available by the contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the (write the name of agency) and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview employees during working hours on the job. 5. Compliance Verification The subrecipient shall periodically interview a sufficient number of employees entitled to DB prevailing wages (covered employees) to verify that contractors or subcontractors are paying the appropriate wage rates. As provided in 29 CFR 5.6(a)(6), all interviews must be conducted in confidence. The subrecipient must use Standard Form 1445 (SF 1445) or equivalent documentation to memorialize the interviews. Copies of the SF 1445 are available from EPA on request. The subrecipient shall establish and follow an interview schedule based on its assessment of the risks of noncompli.ance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. Subrecipients must conduct more frequent interviews if the initial interviews or other information indicated that there is a risk that the contractor or subcontractor is not complying with DB. Subrecipients shall immediately conduct interviews in response to an alleged violation of the prevailing wage requirements. All interviews shall be conducted in confidence." ( c) The subrecipient shall periodically conduct spot checks of a representative sample of weekly payroll data to verify that contractors or subcontractors are paying the appropriate wage rates. The subrecipient shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a minimum, if practicable, the subrecipient should spot check payroll data within two weeks of each contractor or subcontractor's submission of its initial payroll data and two weeks prior to the completion date the contract or subcontract. Subrecipients must conduct more frequent spot checks if the initial spot check or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB. In addition, during the examinations the subrecipient shall verify evidence of fringe benefit plans and payments thereunder by contractors and subcontractors who claim credit for fringe benefit contributions. ( d) The subrecipient shall periodically review contractors and subcontractors use of apprentices and trainees to verify registration and certification with respect to apprenticeship and training programs approved by either the DOL or a state, as appropriate, and that contractors and subcontractors are not using disproportionate numbers of, laborers, trainees and apprentices. These reviews shall be conducted in accordance with the schedules for spot checks and interviews described in Item 5(b) and above. Subrecipients must immediately report potential violations of the DB prevailing wage requirements ---PAGE BREAK--- Attachment B to the EPA DB contact listed above and to the appropriate DOL Wage and Hour District Office listed at http://www.do).gov/contacts/whd/america2.htm. ---PAGE BREAK--- Attachment C Davis Bacon Compliance Requirements for Borrowers Compliance with this Attachment to the Loan Offer will be monitored as part of the DEQ Project Officer 's disbursement approval process, and during interim and final inspections. L Request Additional "Trade" Classifications and Wage Rates If the work classification(s) needed does not appear on a federal wage decision, borrowers will need to request an additional classification and wage rate. It is recommended the process be started early during the preconstruction conference. The borrower and prime contractor for the project should identify the classification needed and recommend a wage rate through the Department of Environmental Quality (DEQ). Requests can be approved if: • The work that will be performed by the requested classification is not already performed by another classification that is already on the wage decision. (In other words, if there already is an Electrician classification and wage rate on the wage decision, another Electrician classification and rate cannot be requested.) • The proposed wage rate, including bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. • If the contractor and laborers and mechanics to be employed in the classification (if known), and the borrower agree on the classification and wage rate (including fringe where appropriate). Requests must be made in writing through the borrower, including a completed Conformance Request SF 1 444 Form. The request should identify the work classification that is missing and recommend a wage rate for the classification. Also include any pertinent documents that may be helpful (ifrequesting paying the state prevailing wage rate, include the state wage decision). Send the packet to DEQ for review and submission to the U.S. Department of Labor (DOL) for approval. DOL's response will be forwarded to the borrower. If the request is denied, the borrower will be notified what classification and rate should be used. Requesting additional classification does not hold up the payroll process. It may however result in correcting underpayments if DOL is not in agreement with the request. Conduct Pavroll Reviews The Federal Copeland Act requires that workers be paid at least once a week, and without any deductions or rebates except permissible deductions such as payroll taxes, deductions the worker authorizes in writing, or those provided by court order. The Act also requires contractors to maintain payroll records and submit weekly certified payroll and statement of compliance to the borrower certifying wages paid and deductions made. The appropriate wage rates are those determined pursuant to the federal Davis-Bacon related acts by the Federal Department of Labor. Further, if the rate is not shown in the Davis-Bacon related acts, an additional classification must ---PAGE BREAK--- be obtained from the U.S. Department of Labor through DEQ. • Borrowers must also review payrolls to determine if workers on the construction project have received appropriate rates of overtime compensation. The Contract Work Hours and Safety Act requires that laborers and mechanics receive overtime compensation at a rate of not less than one and one-half times their regular hourly wage after they have worked 40 hours in one week on funded projects. Weekly payroll records must be reviewed by the borrower for the following: • Payrolls were subrnitted on time • Forms were filled out completely including on the initial payroll, the name, identifying number, address, and job classification for each employee. • All self-employed owners, who have no employees, are designated as an employee and are reported on the certified payroll of the General contractor (or subcontractor ifhired by them). Fill out the form the same as for employees and enter "self-employed" and contracting license number where the payroll asks for deductions. • If the owner of the company has employees and performs work on the project covered by Davis-Bacon wage decisions, the owner is listed as an employee on the certified payroll he submits for his employees. Fill out the form the same as for employees and enter "self­ employed, owner or owner/operator". • The wages and fringes listed on the certified payroll for each job classification agree with those identified on the statement of intent to pay prevailing wages. • The payrolls include all the classifications being utilized even if not listed on the statement of intent to pay prevailing wages. • Payrolls only include permissible deductions. • When fringe benefits are being paid into a benefit plan, block 4(a) on the back of the certified payroll form must be checked. • Apprentices or trainees listed on the certified payroll are working under approved apprenticeship and training agreements. Copies of those certifications should be included with payrolls. • The payroll form is signed . Conduct On-Site Reviews The borrower, or its representative, must provide for visits to the construction site to determine that: • Wage determinations are posted at the job site. • Employees are working within the proper job classification. ě Conduct Employee Interviews lfthere is reason to suspect contractor noncompliance: The borrower or its representative (not the prime contractor, or subcontractors) must conduct employee interviews with at least one employee in each trade to determine the following: • Employees are being paid the amounts/rates stated on the payrolls ---PAGE BREAK--- • Employees are being properly compensated for overtime hours • Employees are receiving their full wages and fringe benefits and are not being subjected to coercion or kickback tactics by the contractor or subcontractors. • Contractors and subcontractors are using and paying apprentices and trainees appropriately. Ĝ Submit First Week Labor Standards (21 Day Labor Packet) For each prime and subcontractor performing work on-site during the first week of construction, the borrower must provide a copy of the following documents to the DEQ regional office in charge of day-to-day project oversight, within 2 1 days after the contractors start construction on the project. • Certified Payroll for the first week pay period • Employee interview forms for the first week (if there is a reasonable doubt that any contractor is not fully complying with DB prevailing wages) The purpose for submitting the above information to DEQ is to assure that any underpayments are detected early and appropriate corrections made early while easy to implement. The first week labor standards (21 day) packet must be provided to DEQ and any underpayments resolved before DEQ will pay the construction reimbursement request. If underpayments are discovered, DEQ will notify the borrower to work with the prime contractor to have restitution made and a corrected certified payroll submitted to DEQ for approval. . Resolve Overtime Violations If the prime contractor or subcontractors do not compensate a worker appropriately for overtime, the borrower needs to notify DEQ and work with the prime contractor to resolve the overtime violations. • If the violation is less than $10 per worker, the violation does not have to be reported. • If the violation is $10 or more per worker, the prime contractor must make payment or assure payments are made by subcontractors and submit a corrected certified payroll and a copy of the check to the worker, and send it to the borrower. Any time the violation is $10 to $999, the borrower must notify DEQ in writing. If the violation is $ 1 ,000 or more, the borrower must submit a Labor Standards Enforcement Report to DEQ who will coordinate the violation with the Department of Labor or EPA (contact DEQ for assistance in filing this report). L Resolve Other Underpayments If a mathematical error, misclassifications, or other error that results in the underpayment of wage or fringe benefits occurs, the prime contractor or subcontractor must make restitution and submit a corrected certified payroll and a copy of the check showing the underpayment made to the worker, to the borrower. 1L Conduct Technical Inspections During construction, the borrower is responsible for monitoring contractor/subcontractor progress and compliance with technical requirements of the project. Typically, this monitoring process is the responsibility of the consulting project engineer; however, the borrower may wish ---PAGE BREAK--- to designate someone locally with oversight responsibility. The purpose of the technical monitoring process is to ensure that the project is constructed as planned, within budget and estimated timefra)Iles, and within specified quality and quantity standards. Maintain Project Records The borrower is required to maintain project records that document all financial, monitoring and inspection transactions, and progress reviews that occur during the life of the project. Borrowers must maintain copies of weekly certified payrolls and any corrected certified payrolls, copies of correspondence and resolution of overtime violations, and copies of employee interviews in the project files for the life of the loan as defined by the contract. ---PAGE BREAK--- CITY OF MOSCOW PUBLIC WORKS DEPARTMENT PRELIMI NARY P ROJ ECT SCHEDULE - - - WELL #10 / BOOSTER STATIONS REPLACEMENTS PROJECTS PROJECT /PHASE WELL #10 PHASE I - DRILLING _ _5_0LICIĝ STATEM ENTS OF QUALIFICATIONS SELECT DESIGN CONSULTANT · - - START DATE END DATE Jul 2014 July 2014 August 2014 August 2014 September 2014 Sěptember 2014 APPROVE DESIGN CONSULTANT CONTRACT PROJECT DESIGN SepteĜber 2014 November 20_ 14 ADVERTISE PROJECT December 2014 December 2014 - OPEN BIDS January 2015 January 2015 February 2015 February 201 AWARD CONSTRUCTION CO NTRACT COMPLETE CONSTRUCTION PROJECT CLOSEOUT _ _ _ _ _ F_e_ bruary 2015 August 2_0_1_ s _ _ Sep1ember 2015 December 2017 WELL #10 PHASE II - SITE DEVELOPMENT/MAIN CO NSTRUCTĞON SOLICIT STATEMENTS OF QUALIFICATIONS June 2015 SELECT DESIGN CONSULTANT July 2015. APPROVE DESIGN CONSULTANT CONTRACT August 2015 COMPLETE PROJECT DESIGN August 2015 ADVERTISE PROJECT February 2016 OPEN BIDS March 2016 AWARD CONSTRUCTION CONTRACT April 2016 CONSTRUCTION April 2016 I N ITIAL OPERATION Jºnuary 2017, PROJECT CLOSEOUT January ¼17 BOOSTER STATIONS PHASE I - WHITE/TAYLOR/VISTA SOLICIT STATEMENTS OF QUALIFICATIONS ¾11 2014 SELECT DESIGN CONSUL TANT May 2014 APPROVE DESIGN CONSULTANT CONTRACT June 2014 ENVIRONMENTAL ASSESSMENT ăĄ_\' 2014 COMPLETE PROJECT DESIGN July 2-014 ADVERTISE PROJECT Februar'.!'. 2015 OPEN BIDS March 2015 AWARD CONSTRUCTION CONTRACT April 2015 CONSTRUCTION April 2015 INITIAL OPERATION January 2016 PROJECT CLOSEOUT January 2016 BOOSTER STATIONS PHASE II - PONDEROSA/MOSER/INDIAN H ILLS __0NDğcqĠ_!?!.Il_QN _ _ . _ _ . _ ENVIRONMENTAL ASSESSMENT ġĢICIT STATEMENTS OF quģLIFlCATIONS SELECT DESIGN CONSUL TANT APPROVE DESIGN CONSULTANT CONTRACT - - - July 2014 October 2014 March 2015 Aprll 2015 May 2015 June 2015 July 2015 August 2015 Janua 2016 February 2016 March 2016 April 2016 December 2016 Januar» 2017 Aprl½2017 April 2014 Ma_Y • June 2014 _f : . . - Item - . • . . Special processes such as reverse osmosis, electrodiaJysis Disinfection (0 to 10 points) · · Your \ Points , 10 points 20 points 4 points 5 points 14 points 14 points 10 points 5 points 1 5 points For disinfectants, such as ozone, chlorine dioxide, or chloramines, assign 5 points for chlorination or comparable and 5 points for on-site generation of disinfectant. No disinfection 0 points Chlorination or comparable 5 points On-site generation of disinfectant 5 points Slude:e/Backwash Water Disposal (0 to 5 points No disposal to raw water source (example to sewer or off watershed) 0 points No disoosal to raw water source (example supernatant discharge to reservoir) 2 points Any disposal to plant raw water 5 points Bacterioloe:ical/Bioloe:ical Laboratorv Control (0 to 10 points) Lab work done outside plant 2 points Membrane filter procedures 3 points Use offermentation tubes or any dilution method: fecaJ coliform determination 7 points Biological identification 7 points Viral studies or similarly complex work conducted on-site 10 points Chemical/Physical Laboratory Control (0 to 10 points) Lab work done outside plant 0 points Push button or colorimetric methods for simple tests, such as chlorine residual, 3 points pH Additional procedures such as titration, jar test, alkalinity, hardness 5 points More advanced determinations, such as numerous inorganics 7 points Highly sophisticated instrumentations, such as atomic absorption & gas 10 points chromatography TOTAL POINTS FOR YOUR SYSTEM System Classification Key Class I 30 points or fewer Class III 56 to 75 points Class II 31 to 55 points Class IV 76 points or greater YOUR SYS1: .c .ss"? AJ'I?.! I· · . I, n, III;" IV : . I (CirCle 'one)' . . Signature ---PAGE BREAK--- IDAHO SYSTEM CLASSIFICATION WORKSHEET DEQ will use this information to classify your system. PWS System No. (Example: ID1234S67) Name of Public Water System: System Address: City: State: Contact Person: Title: Business Phone Number: ( ) Email: Population served by this distribution system: Zip Code: OFFICE USE ONLY DO NOT WRITE HERE System Class Notes: Approved by _ _ _ _ _ _ Date (The number of people, not the number of connections) Name of Water Source(s}: (Example: Well #16, Johnson Well or East Fork of Miller Creek, etc.) Signature Date ---PAGE BREAK--- DEQ SRF SPECIFICATION INSERT AMERICAN IRON AND STEEL (AIS} GENERAL. In accordance with the current SRF Assistance AIS requirements, all of the iron and steel products used in this project shall be produced in the United States. This requires that all manufacturing processes, including application of coatings, must take place in the United States, with the exception of metallurgical processes involving refinement of steel additives. The term "all manufacturing processes" includes processes such as melting, refining, forming, casting, rolling, drawing, finishing, fabricating and coating. Further, if a domestic in{n and steel product is taken out of the United States for any manufacturing process, it becomes a foreign source material. The term "iron and steel products" means products made of greater than 50% iron or steel measured by cost; the cost should be based on the material costs of the iron and steel products in the article i.e., a hydrant or a valve. The definition of steel covers carbon steel, alloy steel, stainless steel, tool steel and other specialty steels. These products include, but are not limited to: lined or unlined pipes and fittings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, construction materials, manhole covers and other municipal castings. Attachment 1 provides further clarification of the terms "construction materials" and "municipal castings" and presents exclusions to AIS requirements. REQUIRED AIS CONSTRUCTION CONTRACT LANGUAGE. In order to ensure compliance with the AIS requirement, specific AIS contract language must be included in each contract, starting with the assistance agreement, all the way down to the purchase agreements. Attachment 2 contains required language for contracts. WAIVERS: The statute permits EPA to issue waivers where EPA finds that applying these requirements would be inconsistent with the public interest; iron and steel products are not produced in the US in sufficient and reasonably available quantities and of a satisfactory quality; or inclusion of iron and steel products produced in the US will increase the cost of the overall project by more than 25 percent. Attachment 3 describes the waiver process that EPA has developed to allow projects to proceed in a timely manner. Attachment 4 is an information checklist for a waiver request. DE MINIMIS WAIVER: Products would be considered eligible for a de minimis waiver if the sum total of the combined products does not exceed five percent of the total cost of materials for the project, the products a re not described in the project specification, and any single product does not exceed one percen't of the total materials cost of the project. BIDDER'S CERTIFICATION OF COMPLIANCE. An executed Bidder's Certification of Compliance, Attachment 5, covering all proposed steel and iron products, shall be furnished by bidders as part of the sealed bid; this Certification is required in order to constitute a valid bid. ---PAGE BREAK--- MATERIAL CERTIFICATES OF COMPLIANCE. Subsequent to the issuance of the Notice of Award, but prior to payment, Certificate(s) of Compliance, Attachment 6, shall be furnished by the Prime Contractor ('the Contractor') to the Owner or Owner's representative for each iron and steel product lot. Records to be submitted and maintained by the Contractor supporting this certification shall include a signed mill test report or a signed certification by each supplier, distributor, fabricator, and manufacturer who has handled the steel or iron product listed, affirming that every process performed on the steel or iron product has taken place in the United States of America. Mill reports and/or signed certifications shall cite a consistent document number such as a purchase order which allows for traceable chain of custody of the product. The lack of the ability of the Contractor to furnish these certifications will be justification for rejection of the product and any related cost increases this may cause will be borne by the Contractor. ON-SITE DATA RECORDS. The Contractor shall develop and maintain an on-site materials compliance log containing current records of all iron and steel products arriving on the construction site. The log shall include the Purchase Order number, Certificate of Compliance reference number, and minimum product information from the shipping manifest such as product description, serial and lot numbers, manufacturer's name, and origin of shipment including city and state. In addition, a separate log shall be maintained to track information related to de minimis materials such as Purchase Order number, product description, current value of de minimis materials, and the running percentage of de minimis product value received to the total cost of materials for the project. MANIFESTS. To ensure information is consistent and valid, the Contractor shall compare the information contained on the manifests accompanying iron and steel products, with previously submitted Certificates of Compliance. ON-SITE INSPECTIONS. The Owner's representative shall periodically conduct on-site inspections to review the materials compliance logs being maintained by the Contractor to ascertain the completeness of information behig recorded. In addition, the Owner's representative shall spot-check stored iron and steel products against the logged information to ensure the consistency and accuracy of the documentation. PAY APPLICATIONS. The Contractor shall submit to the Owner mill certificates or chain of custody signed certifications as supporting documentation for requests for payment for iron and steel products being added as "Stored this Month" inventory. SRF Loan fund reimbursement for stored materials shall only occur when proper certifications have been received and approved by the Owner or Owner's representative. RETENTION OF RECORDS. Documentation which fulfills AIS requirements shall be retained by the Owner for a period of at least 3 years subsequent to beginning SRF loan repayment. This documentation is subject to federal audit and shall be readily available upon request. ---PAGE BREAK--- SRF Spec Insert. ATIACHMENT 1. AMERICAN IRON AND STEEL (AIS) CLARIFICATIONS: "Construction Materials" & "Municipal Castings" CONSTRUCTION MATERIALS. Construction materials are those articles, materials, or supplies made primarily of iron and steel, that a re permanently incorporated into the project, not including mechanical and/or electrical components, equipment and systems. Some of these products may overlap with what is also considered "structura l steel". This includes, but is not limited to, the following produ cts: wire rod, bar, angles, concrete reinforcing bar, wire, wire cloth, wire rope and cables, tubing, framing, joists, trusses, fasteners (e.g. nuts and bolts), welding rods, decking, grating, railings, stairs, access ramps, fire esca pes, ladders, wall panels, dome structures, roofing, ductwork, surface d rains, cable hanging systems, manhole steps, fencing a nd fence tubing, guardrails, doors, and stationa ry screens. Aluminum, copper, and brass items are not required to meet the AIS requirements. EXCLUSIONS. M echanical and electrical components, equipment and systems are not considered construction materials. Therefore, the following examples a re NOT considered construction materials: pumps, motors, gea r reducers, drives (including variable frequency drives (VFDs)), electric/pneumatic/manual accessories used to operate valves (such as electric valve actuators), mixers, gates, motorized screens (such as traveling screens), blowers/aeration equipment, compressors, meters, sensors, controls and switches, supervisory control and data acquisition (SCADA), membrane bioreactor systems, membrane filtration systems, filters, clarifiers and clarifier mechanisms, rakes, grinders, disinfection systems, presses (including belt 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, and dewatering equipment. M UNICIPAL CASTINGS. M unicipal castings a re cast iron or steel infrastructure products that are melted and cast. They typica lly provide access, protection, or housing for components incorporated into utility owned drinking water, storm water, wastewater, and surface infrastructure. They are typically made of grey or ductile iron, or steel. Examples of municipal castings are: Access Hatches; Ballast Screen; Benches (Iron o r Steel); Bollards; Cast Bases; Cast Iron Hinged Hatches, Square and Rectangular; Cast Iron Riser Rings; Catch Basin Inlet; 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; J unction Boxes; Lampposts; Manhole Covers, Rings and Frames, Risers; Meter Boxes; Service Boxes; Steel.Hinged Hatches, Square and Rectangular; Steel Riser Rings; Trash receptacles; Tree G rates; Tree Guards; Trench Grates; and Valve Boxes, Covers and Risers. ---PAGE BREAK--- SRF Spec Insert. ATTACHMENT 2 REQUIRED CONSTRUCTION CONTRACT LANGUAGE ALL CONTRACTS MUST HA VE A C LAUSE REQUIRING COMPLIANCE WITH THE AIS REQUIREMENT. THIS IS THE STANDARD BOILERPLATE TO BE INCLUDED IN ALL CONTRACTS IN PROJECTS THAT USE SRF FUNDS: The Contractor acknowledges to and for the benefit of the City/District of _ _ _ _ _ _ _ ("Purchaser") and the Idaho State Department of Environmental Quality (State), that it understands the goods and services under this Agreement are being funded with monies made available by the Clean Water State Revolving Fund and/or Drinking Water State Revolving Fund that have statutory requirements commonly known as "American Iron and Steel;" that requires all of the iron and steel products used in the project to be produced in the United States ("American Iron and Steel Requirement") including iron and steel products provided by the Contactor pursuant to this Agreement. The Contractor hereby represents and warrants to and for the benefit of the Purchaser and the State that the Contractor has reviewed and understands the American Iron and Steel Requirement, all of the iron and steel products used in the project will be and/or have been produced in the United States in a manner that complies with the American Iron and Steel Requirement, unless a waiver of the requirement is approved, and ( c) the Contractor will provide any further verified information, certification or assurance of compliance with this paragraph, or information necessary to support a waiver of the American Iron and Steel Requirement, as may be requested by the Purchaser or the State. Notwithstanding any other provision of this Agreement, any failure to comply with this paragraph by the Contractor shall permit the Purchaser or State to recover as damages against the Contractor any loss, expense, or cost (including without limitation attorney's fees) incurred by the Purchaser or State resulting from any such failure (including without limitation any impairment or loss of funding, whether in whole or in part, from the State or any damages owed to the State by the Purchaser). While the Contractor has no direct contractual privity with the State, as a lender to the Purchaser for the funding of its project, the Purchaser and the Contractor agree that the State is a third-party beneficiary and neither this paragraph (nor any other provision. of this Agreement necessary to give this paragraph force or effect) shall be amended or waived without the prior written consent of the State. ---PAGE BREAK--- SRF Spec Insert. ATTACHMENT 3 WAIVER PROCESS In order to implement the AIS requirements, EPA has developed an approach to allow for effective and efficient implementation of the waiver process to allow projects to proceed in a timely manner. The framework described below will allow states, on behalf of the assistance recipients, to apply for waivers of the AIS requirement directly to EPA Headquarters. Only waiver requests received from states will be considered. Pursuant to the Act, EPA has the responsibility to make findings as to the issuance of waivers to the AIS requirements. Definitions The following terms are critical to the interpretation and implementation of the AIS requirements and apply to the process described in this memorandum: Reasonably Available Quantity: The quantity of iron or steel products is available or will be available at the time needed and place needed, and in the proper form or specification as specified in the project plans and design. Satisfactory Quality: The quality of iron or steel products, as specified in the project plans and designs. Assistance Recipient: A borrower or grantee that receives funding from a state or program. Step-By-Step Waiver Process Application by Assistance Recipient Each local entity that receives SRF water infrastructure financial assistance is required by section 436 of the Act to use American made iron and steel products in the construction of its project. However, the recipient may request a waiver. Until a waiver is granted by EPA, the AIS requirement stands. The waiver process begins with the SRF assistance recipient. In order to fulfill the AIS requirement, the assistance recipient must in good faith design the project (where applicable) and solicit bids for construction with American made iron and steel products. It is essential that the assistance recipient include the AIS terms in any request for proposals or solicitations for bids, and in all contracts (see Attachment 2 for required contract language). The assistance recipient may receive a waiver at any point before, during, or after the bid process, if one or more of three conditions is met: 1 . Applying the AIS requirements of the Act 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 o f iron and steel products produced in the United States will increase the cost of the overall project by more than 25 percent. Proper and sufficient documentation must be provided by the assistance recipient. Attachment 4 contains a checklist detailing the types of information required for a waiver to be processed. . Additionally, assistance recipients are required to hold pre-bid conferences with potential bidders. A pre-bid conference can help to identify iron and steel products needed to complete the project as described in the plans and specifications that may not be available from domestic sources. It may also identify the need to seek a waiver prior to bid, and can help inform the recipient on compliance options. ---PAGE BREAK--- In order to apply for a project waiver, the assistance recipient should email the request in the form of a Word document (.doc) to the State SRF Loan program, designee: Kevin McNeill P.E. at [EMAIL REDACTED] , phone: (208) 373-0452. The State SRF designee will review the application for the waiver and determine whether the necessary information has been included. Once the waiver application is complete, the State designee will forward the application to the EPA. Evaluation by EPA After receiving an application for waiver of the AIS requirements, EPA Headquarters will publish the request on its website for l 5 days and receive informal comment. EPA Headquarters will then determine whether the application 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 the waiver. In the event that EPA finds that adequate documentation and justification has been submitted, the Administrator may grant a waiver to the assistance recipient. EPA will notify the State designee that a waiver request has been approved or denied as soon as such a decision has been made. Granting such a waiver is a three-step process: 1 . Posting - After receiving an application for a waiver, EPA is required to publish the application and all material submitted with the application on EPA' s website for 1 5 days. During that period, the public will have the opportunity to review the request and provide informal comment to EPA. The website can be found at: http://water.epa.gov/ grants funding/aisrequirement.cfin 2. Evaluation - After receiving an application for waiver of the AIS requirements, EPA Headquarters will determine whether the application 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 the waiver. 3 . Signature of waiver approval by the Administrator or another agency official with delegated authority - As soon as the waiver is signed and dated, EPA will notify the state SRF program, and post the signed waiver on the EPA website. The assistance recipient should keep a copy of the signed waiver in its project files. Public _Interest Waivers EPA has the authority to issue public interest waivers. Evaluation of a public interest waiver request may be more complicated than that of other waiver requests so they may take more time than other waiver requests for a decision to be made. An example of a public interest waiver that might be issued could be for a community that has standardized on a particular type or manufacturer of a valve because of its performance to meet their specifications. Switching to an alternative valve may require staff to be trained on the new equipment and additional spare parts would need to be purchased and stocked, existing valves may need to be unnecessarily replaced, and portions of the system may need to be redesigned. Therefore, requiring the community to install an alternative valve would be inconsistent with public interest. EPA also has the authority to issue a public interest waiver that covers categories of products that might apply to all projects. ---PAGE BREAK--- ATTACHMENT 4 Information Checklist for Waiver Request The purpose of this checklist is to help ensure that all appropriate and necessary information is submitted to EPA EPA recommends that States review this checklist carefully and provide all appropriate information to EPA This checklist is for informational purposes only and does not need to be included as part of a waiver application . Items Notes General . Waiver request includes the following information: - Description of the foreign and domestic construction materials - Unit of measure - Quantity - Price - Time of delivery or availability . - Location of the construction project - Name and address of the proposed supplier - A detailed justification for the use of foreign construction materials . Waiver request was submitted according to the instructions in the memorandum . Assistance recipient made a good faith effort to solicit bids for domestic iron and steel products, as demonstrated by language in requests for proposals, contracts, and communications with the prime contractor Cost Waiver Requests . Waiver request includes the following information: - Comparison of overall cost of project with domestic iron and steel products to overall cost of project with foreign iron and steel products - Relevant excerpts from the bid documents used by the contractors to complete the comparison - Supporting documentation indicating that the contractor made a reasonable survey of the market, such as a description of the process for identifying suppliers and a list of contacted suppliers Availability Waiver Requests . Waiver request includes the following supporting documentation necessary to demonstrate the availability, quantity, and/or quality of the materials for which the waiver is requested: - Supplier information or pricing information from a reasonable number of domestic suppliers indicating availability/delivery date for construction materials - Documentation of the assistance recipient' s efforts to find available domestic sources, such as a description of the process for identifying suppliers and a list of contacted suppliers - Project schedule - Relevant excerpts from project plans, specifications, and permits indicating the required quantity and quality of construction materials . Waiver request includes a statement from the prime contractor and/or supplier confirming the non-availability of the domestic construction materials for which the waiver is sought . Has the state received other waiver requests for the materials described in this waiver request, for comparable projects? ---PAGE BREAK--- · SRF Spec Insert. ATTACHMENT 5 BIDDER'S CERTIFICATION OF COMPLIANCE WITH THE CURRENT SRF ASSISTANCE AMERICAN IRON AND STEEL (AIS) PROVISIONS (To be submitted as part of the sealed bid) Bidder's Statement of Certification The Bidder acknowledges to and for the benefit of the ("Owner") for the ("Project") that the Bidder understands the project is being funded in part with SRF Assistance. "AIS" requirements specify that all iron and steel products used in the project shall be produced in the United States. Consistent with the terms of the Owner's bid solicitation and the provisions of SRF Assistance, the Bidder hereby represents and warrants to and for the benefit of the Owner that: 1. The Bidder has reviewed and understands the AIS requirements. 2. The Bidder certifies that the iron and steel goods used in the project will be produced in the United States in a manner that complies with the AIS requirements unless a waiver of the requirements is requested by the Owner and approved by the EPA. 3. The Bidder agrees to provide to the Owner reasonable, sufficient, and timely information, certification, or verification of the United States production of each component as detailed in the forms contained in Attachment 6 as a prior condition for approval of - and reimbursement for - materials received. 4. The undersigned hereby acknowledges that the iron and steel products utilized in this project will meet the current SRF Assistance AIS requirements, and that all required Manufacturer/Supplier Certification Statements or waivers from EPA will be obtained to document compliance with the AIS requirements. Bidder Signature Date: Title: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Organization : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ---PAGE BREAK--- SRF Spec Insert. ATTACHMENT 6 MATERIAL CERTIFICATE OF COMPLIANCE FOR IRON & STEEL PRODUCTS For Compliance with Current SRF Assistance AMERICAN IRON AND STEEL (AIS) Requirements (To be submitted subsequent to awa rd of contract) SRF Project No. Project Name The (Name of Manufacturer/Supplier) (Address) (City, State) (Phone) has furnished to (Name of Contractor) (Address) (City, State) (Phone) The following materials for use in the construction of the above referenced project. Bid Item No. Product Description * List actual quantities to be delivered to the job site. # Provide name of steel producing/recycling mill/ fabricator Quantity * Unit Heat Number (LF, Yd2, m, m3) Mill/Fabricator# Submit all required documentation with this form. Refer to specifications for general guidance on "AIS" documentation. Contractor's Statet:nent of Certification I hereby certify that all manufacturing processes, including initial melting/ recycling, occurred in the United States for the materials listed on this page and the following pages and that those materials meet all other requirements as set forth in the plans and specifications. (Prime Contractor's Name, Typed or Printed) Date - PS rim -eTCU on Vtra -ct WoX fY s s =ign - ature _ _ _ Number of item pages attached _ _ _ ---PAGE BREAK--- · SRF Spec Insert. ATTACHM ENT 6 (cont.) MATERIAL CERTIFICATE OF COM PLIANCE FOR AM ERICAN IRON & STEEL PRODUCTS Item Page# SRF Project No. _ _ _ _ _ Project Bid Item No. Product Description Quantity * Unit Heat Number (LF, Yd2, m, m3) Mill/Fabricator# \ T * List actual quantities to be delivered to the job site. # Provide name of steel producing/recycling mill/ fabricator authenticating domestic material item. (Prime Contractor's Initials) ---PAGE BREAK--- BEST MANAGEMENT PRACTICES Current American Iron and Steel (AIS) Provisions To ensure complia nce with the current SRF assistance American Iron and Steel requirements, the fol lowing Best M anagement Practices (BM Ps) a re required: 1. Pre-Bid Conference: the Owner's Representative shall hold a pre-bid conference with Bidders and shall p rovide the Owner with a write-up of_ the conference with a list of Attendees and summary of subjects d iscussed. At the conference the Owner's Representative shall provide Bidders with comprehensive i nformation relative to AIS requirements, including the following items: • Definitions • Guidance • Fact sheets • Web sites • Additional clarifications of i ron and steel products • SRF Loa n specification insert requirements • Bidder's Certification 2. Pre-Construction Conference: the Owner's Representative shall provide the Contractor(s) with information relative to AIS requirements, emphasizing the following: • Suggested AIS Contract Language • Waiver p rocess • De minimis req uirements • Contractor Certificates of Compliance • Mill Certificates · • Submittal p rocess (refer to item 3) • Purchase orders (refer to item 4) • Contractor's on-site logs • Pay Applications 3. Contractor Submittals: The Owner or the Owner's representative will consider issuing conditional approval of a submittal for an iron or steel product - or a submittal containing an iron or steel product - with final approval of the submittal dependent on receipt of the mill certificate or signed certification(s). 4. Contractor Purchase Orders: Accordingly, it is advisable for the Contractpr to include in Purchase Orders the requirement for a mill certificate or signed Chain of Custody documentation for iron and steel p roducts, with such docul!lentation to be received before the order is finalized. ---PAGE BREAK--- STATE OF IDAHO DEPARTMENT OF ENVIRONMENTAL QUALITY 141 O North Hilton • Boise, Idaho 83706 • (208) 373-0502 June 13, 20 14 Certified mail no.: 701 2 3050 0001 2126 5760 Honorable Bill Lambert, Mayor City of Moscow P.O. Box 9203 Moscow, Idaho 83 84 3 RE: Offer of Loan # DW1406 Dear Mayor Lambert: C.L. "Butch" Otter, Governor Curt Fransen, Director I am pleased to inform you that your application for a loan in t°e amount of $4,300,000 from the Drinking Water State Revolving Fund has been accepted. The loan offer is enclosed. Please note that the enclosures include Davis Bacon wage provisions in Attachments B and C, and American Iron and Steel Specifications Inserts. Attached is a set of drinking water system classification forms for your use in determining the future classification of your system. The updated system classification information is important and should be shared with your responsible charge operator and substitute responsible charge operator. Drinking water system upgrades make it likely that the system classification will change or increase and that the associated responsible charge operator and substitute responsible charge operator licenses will also require upgrade. Should you have any questions regarding system classification, please contact Don Lee at [PHONE REDACTED]. Once this offer has been accepted by the City, please complete the project schedule (Attachment A) and sign the offer on page 1 1 . A copy of the signed offer should be kept in the City's files. The loan offer, and Attachment A should be returned to Tim Wendland in this office at the address listed above. Please pay close attention to the Special Conditions on pages 6 and 7 of the loan offer. Please read and comply with Attachment B, relating to compliance with Davis Bacon wage provisions. Recipients of federal aid have to establish a "DUNS" number, please go to http://fedgov.dnb.com/webform to establish the City's DUNS number ifthat has not been previously done. P 1 1 n l e d o n R e c y c l e d P a p e 1 ---PAGE BREAK--- Mayor Lambert City of Moscow June 13, 2014 Page 2 If you have any questions regarding this loan offer, please contact Tim Wendland at [PHONE REDACTED] or Michael Camin in our Lewiston Regional Office at [PHONE REDACTED]. Sincerely, Barry N. Burnell Water Quality Division Administrator BNB:TA W:dls Enclosures (loan offer, Attachments A, B & C, system classification information, American Iron and Steel) c: Michael Camin, DEQ Lewiston Regional Office Les MacDonald, City of Moscow, [EMAIL REDACTED] Mary Anna Peavey, DEQ State Office Jerri Henry, DEQ State Office Bill Hart, DEQ State Office