Water Infrastructure Finance Authority
SFY 2015 Drinking Water
Intended Use Plan

Arizona Drinking Water State Revolving Fund

INTRODUCTION
The WIFA Board of Directors is pleased to release Arizona’s Drinking Water State Revolving Fund
(DWSRF) Intended Use Plan (IUP) for the State Fiscal Year (SFY) 2015 funding cycle. The DWSRF IUP
describes WIFA’s plan to utilize various sources of funds to finance drinking water infrastructure and
support related program activities during the SFY 2015 funding cycle from July 1, 2014 through June 30,
2015. This IUP is a required element of the grant application documentation to obtain the FFY 2014
grant award. Arizona herewith submits its IUP for the FFY 2014 funds available to Arizona for the
purposes of continuing the development, implementation and administration of the DWSRF program in
Arizona.
The Arizona DWSRF Loan Program funds publicly and privately‐owned community water systems and
non‐profit non‐community water systems. Eligible projects include treatment, transmission and
distribution, source, storage, consolidation and creation of new systems. Projects to acquire land or to
refinance debt obligations of publicly‐owned systems may also be eligible. The program also places an
emphasis on small and disadvantaged communities and on programs that emphasize prevention and
sustainability as tools for ensuring safe drinking water.
Section 1: Short Term Goals
For the purposes of this IUP, a short‐term goal is an activity intended to be initiated, and in some cases,
completed within a year:
 WIFA will make drinking water infrastructure loans more accessible and affordable to small
communities by subsidizing all loans;
 WIFA will provide additional assistance to communities who are identified as disadvantaged;
 WIFA will provide at least 20% of the Capitalization Grant amount as additional subsidization in
the form of forgivable principal;
 WIFA will continue to encourage borrowers to address green stormwater infrastructure, water
and energy efficiency improvements and other environmentally innovative activities.
Section 2: Long Term Goals
For the purposes of this IUP, a long term goal is defined as the life of the program. The following are the
long‐term goals of the loan program:
 Award WIFA’s resources in accordance with the needs of Arizona’s citizens;
 Maintain the fiscal integrity of WIFA’s funds and assure continuous enhancement for future
generations;
 Effectively and efficiently deliver financial and technical assistance;
 Coordinate with other funding sources, technical resources, regulatory authorities, and private
sector legal and financial counterparts;
 Actively pursue leadership in infrastructure finance;
 Efficiently administer WIFA within a positive work environment;
 Facilitate and encourage Board of Directors’ involvement in WIFA.
Section 3: Important Program Changes
WIFA plans to adjust the interest vs. fee ratio of the Combined Interest and Fee Rate (CIFR) during SFY
2015. WIFA will document a new policy providing guidance on the application of additional subsidies
which will include how communities that cannot otherwise afford projects (including disadvantaged
communities) and green projects (if required by the Capitalization Grant) may receive forgivable
principal.
1

Section 4: Agreement to Enter Data into PBR and NIMS
WIFA agrees to enter data into PBR and NIMS. WIFA is currently working with Northbridge Consulting to
improve the historical data in NIMS.
Section 5: Description of Public Notice Process and Actions Taken to Address Public Comments
Public review and written comment period of this IUP will be conducted from June 2, 2014 through June
16, 2014.
WIFA will solicit public review and comment on the draft SFY 2015 DWSRF IUP and Project Priority List
(PPL) according to the following schedule:
June 2, 2014

Distribution and Web posting of the draft DWSRF IUP and PPL to all
interested parties.

June 16, 2014

Public Hearing – 1110 West Washington, Room 130, Phoenix, Arizona
85007 from 1:00 P.M. to 2:00 P.M.

June 16, 2014
June 18, 2014
July 1, 2014

Deadline for public comments on the draft DWSRF IUP and PPL.
The WIFA Board of Directors to adopt the final draft DWSRF IUP and PPL.
IUP will then be sent to EPA for final approval.
Begin implementation of the Approved DWSRF IUP and PPL

Section 6: Assurances and Specific Proposals
WIFA intends to comply with the following:
 WIFA will comply with its Environmental Policy as approved by EPA;
 WIFA will notify its borrowers of the requirement to comply with the Davis‐Bacon requirements
outlined in the Capitalization Grant Terms and Conditions;
 WIFA will notify its borrowers of the requirement to comply with the American Iron and Steel
requirements outlined in the Capitalization Grant Terms and Conditions;
 WIFA will make every effort to comply with EPA’s guidance for timely and expeditious use of
funds; and
 WIFA agrees to the remaining required assurances and proposals in the grant application or the
IUP.
Section 7: Disadvantaged Community Program
WIFA is committed to providing assistance to public water systems serving Disadvantaged Communities.
The Board may designate an applicant as a Disadvantaged Community if the applicant satisfies one of
the following:
1. The community is a designated “colonia” community through the federal government, or
2. The community received 60 or more Local Fiscal Capacity points on the DWSRF PPL.
WIFA intends on providing the 20% additional subsidy as forgivable principal to communities who
cannot otherwise afford projects (including disadvantaged communities). WIFA’s Disadvantaged Policy
allows for extended term, reduced interest or a combination. WIFA may choose to provide additional

2

subsidization to ‘fix it first’ projects if they are identified on the PPL and move into the ‘ready to
proceed’ category.
Section 8: Criteria and Methods for Distribution of Funds (Priority Setting Criteria)
 Project Priority List and Fundable Range
o Project Priority List (PPL): On an annual basis, following a statewide solicitation for
projects, WIFA develops a statewide priority list of projects. Projects are scored and
ranked on the list based upon public health risk, SDWA compliance, and financial need.
Currently, WIFA’s DW PPL has 17 project priority list applications totaling $26,864,658.
o Fundable Range: The Fundable Range includes the applicants ready to receive design or
construction financial assistance.
 Project Priority List Updates
The WIFA Board of Directors may update the DW PPL by adding or deleting projects or adjusting
the fundable range for design or construction projects. The decision to update the DW PPL may
be based on a project’s readiness to proceed, refined project cost estimates, availability of other
funding sources or other new information affecting the expansion or contraction of the PPL and
Fundable Range. The WIFA Board of Directors adopts the updated DW PPL at a public meeting
and the updates are posted on the WIFA website. All projects must meet the applicable
requirements under the Safe Drinking Water Act, 42 U.S.C. § 300f to 300j‐26.
 Project Readiness to Proceed
Applicants accrue readiness to proceed points based on the following criteria:
o Approved debt authorization has been received by WIFA.
o Plans and specifications are complete.
o Local and state permits have been obtained.
o The bid or solicitation process has been initiated.
Section 9: Bypass Procedures and Emergency Funding Procedures
The Fundable Range process is used to bypass projects that are not ready to proceed. As part of this
process, readiness to proceed points are awarded for each of the criteria identified above, with a project
needing to accrue at least 40 points out of 100 possible. Projects which have not received at least 40
points are bypassed, allowing projects which are ready to proceed to move forward with obtaining
financing.
In accordance with ARS 49‐1269 WIFA may enter into short term emergency loan agreements under the
following conditions: 1) the term of the loan does not exceed one year, 2) the dollar amount of the loan
does not exceed $250,000, 3) the purpose of the loan is to provide assistance for systems that have
failed as a result of a disaster, a natural disaster or a catastrophic event, 4) the disaster, natural disaster
or catastrophic event is memorialized in a declaration of emergency by the governor or FEMA.

3

Section 10: Sources and Uses Table

Arizona DWSRF Sources & Uses for SFY 2015 (FFY 2014 Cap Grant)
Federal

WIFA

WIFA Loan

Contributions

Revenues

Accounts

Total

Funding Sources
Estimated fund balance as of 7/1/2014

$

- $

New funds expected in SFY 2015

$ 15,969,000

3,692,200 $ 79,270,290 $ 82,962,490
$2,346,100

$12,691,121 $ 31,006,221

**Banked Funds (see below)
Total Funding Sources

$ 15,969,000 $

6,038,300 $ 91,961,411 $ 113,968,711

$ 11,459,128 $

3,193,800 $ 91,961,411 $ 106,614,339

Funding Uses
Financial Assistance Loans
15% Set-Aside Wellhead Protection (ADEQ)

$ 1,524,212

$

1,524,212

15% Set-Aside Technical Assistance (WIFA)

$

450,000

$

450,000

10% Set-Aside PWSS (ADEQ)*

$

596,900

$

596,900

4% Set-Aside Administration (WIFA)
2% Set-Aside Capacity Development (ADEQ)

$
$

638,760 $
300,000

$
$

1,494,732
300,000

$

1,000,000

855,972

Forgivable Principal $3,193,800 (20%)
Green Project Reserve (voluntary)
Banked FFY 2014 funds** (10% to ADEQ)
Total Funding Uses

$ 1,000,000
$ 15,969,000 $

4,049,772 $ 91,961,411 $ 111,980,183

**ADEQ is banking $1,000,000 from the new FFY 14 Cap. Grant 10% set-aside
Note: WIFA may sell water quality revenue bonds - proceeds will be used to increase WIFA's lending capacity

The Safe Drinking Water Act §1452(g) and §1452(k) allows States to set aside up to 31% of the
Capitalization Grant for specific activities. These are referred to as the 2%, 4%, 10%, and 15% set‐asides
and are further described below. Funds not expended in these categories by the end of SFY 2015 will
revert to the DW Loan Fund Account.
15% Set‐aside
State and Federal Statutes allow setting aside up to 15% of the Federal Capitalization Grant funds
to provide local assistance to water systems in Arizona. $1,524,212 has been requested by ADEQ
for Wellhead Protection activities to protect underground sources of drinking water. WIFA will
utilize $450,000 of this set‐aside. $20,000 will support the drinking water portion of the annual
Water and Wastewater Residential Rate Survey and $130,000 will support the 2015 Drinking Water
Needs Survey effort. (See Professional Technical Assistance in Section 11 below) $300,000 will be
provided as planning and design assistance through two competitive cycles beginning on July 1,
2014 and January 1, 2015 (see Planning and Design Technical Assistance Program in Section 11
below).
10% Set‐aside
State and Federal Statutes allow setting aside up to 10% of the Federal funds for the Public Water
System Supervision activities. This set‐aside requires an additional 1:1 match which will be provided
4

by ADEQ Fees. ADEQ will use this funding for the PWSS Program, which encompasses all of the
various activities involved in implementing the Safe Drinking Water Act requirements in Arizona.
These activities include operator certification, source water assessment and protection,
development of regulatory guidance and assistance documents, assisting systems in obtaining the
technical, financial, and managerial capability to comply with drinking water regulations, and
technical consultations on water system and treatment system design. ADEQ is requesting $
596,900.
4% Set‐aside
State and Federal Statutes allow setting aside up to 4% of the Federal funds for the administration
of the DWSRF program. WIFA will utilize this set‐aside to pay salaries and associated expenses of
program’s personnel devoting time to the administration of the funds as well as the necessary
ancillary services performed by other agencies. These funds will also be used to procure equipment
and training necessary for the adequate performance of staff. Expenses for DWSRF‐related public
meetings, workshops and conferences will also be paid for out of this set‐aside. Funds not used
immediately will be reserved for use in future years. As evidenced in the Sources and Uses Table,
WIFA will provide additional program administration support through use of WIFA Fees.
2% Set‐aside
State and Federal Statutes allow setting aside 2% of the Federal funds to provide local assistance to
water systems in Arizona. The 2% set‐aside in the amount of $300,000 will be used by ADEQ’s
Capacity Development Program (see Staff Technical Assistance in Section 11 below).
ADEQ Drinking Water Program
The Drinking Water program is federally mandated to ensure safe drinking water supplies for the
public. Staff reviews water system construction plans, conducts compliance inspections on drinking
water systems, reviews water quality monitoring data, initiates enforcement actions in response to
continued or significant noncompliance, and conducts outreach to educate stakeholders on
regulatory requirements. The program also evaluates source waters to ascertain their susceptibility
to contamination, promotes voluntary community programs aimed at protecting aquifers for
drinking water use, and administers the monitoring assistance program to assist public water
systems in complying with monitoring requirements under the federal Safe Drinking Water Act.
This effort has been funded through WIFA Revenues in the past, but no funds have been requested
for FFY 2014.
Section 11: Identify the Types of Assistance Provided and the Terms (Principal Forgiveness, Extended
Terms)
WIFA provides low interest loans for projects eligible under the Safe Drinking Water Act. Eligible projects
include treatment, transmission and distribution, source, storage, consolidation and creation of new
systems. Projects to acquire land or to refinance debt obligations of publicly‐owned systems may also be
eligible.
 Subject to the limitation that loan terms are not to exceed the useful life of the project, all loans
for the financing of projects will be for a term not to exceed 20 years from loan closing date;
except that under certain conditions (including loans to disadvantaged communities) project
financing may be made for a period of up to 30 years.
 WIFA may provide additional subsidization to projects for Disadvantaged Communities and
projects identified as ‘fix it first’ (as described in Section 7 of this document) as well as projects
5

that meet the green project reserve criteria. The minimum additional subsidy required to be
distributed under the FFY 2014 Capitalization Grant is $3,193,800.
WIFA also provides three types of Technical Assistance:
 Staff Technical Assistance (2% set‐aside) ‐ ADEQ's Capacity Development Unit assists small
drinking water systems, serving 10,000 or fewer people, to improve their day‐to‐day operation.
For more information contact ADEQ's Drinking Water Division Deputy Director.
 Professional Technical Assistance – Professional Technical Assistance includes studies, surveys
and other types of reports that provide benefit to a range of drinking water systems statewide.
WIFA will complete the drinking water portion of the Water and Wastewater Residential Rate
Survey with these funds. This effort includes a survey of approximately 500 utilities, updates to
the Rates Dashboard by the University of North Carolina’s Environmental Finance Center, survey
analysis and final report. WIFA will also use these funds to complete the 2015 Drinking Water
Needs Survey. This survey effort includes travel, training, one‐on‐one consultation with the
approximately 40 systems selected to participate, data review and consultation with EPA’s
contractor, and participation in EPA’s preparation of the Report to Congress.
 Planning and Design Technical Assistance Program– The purpose of WIFA’s Planning and Design
Technical Assistance Program is to help prepare systems for construction of capital
improvement projects. Typically, awards are made to facilities with limited resources that need
assistance in completing the planning and/or design phase of an infrastructure project. WIFA
has also placed high priority on green projects, including water efficiency, energy efficiency and
green stormwater infrastructure. The request for applications issued for each cycle establishes
the scoring criteria on which the applications are evaluated. Awards are capped at $35,000 per
project.
Financial Terms of Loans
 Repayment of loan principal must begin within 12 months of project completion based on the
construction schedule available at the loan closing date or actual completion date or three years
from the date of the initial principal advance, whichever is earlier.
 Loan disbursements are to be made on a cost reimbursement basis.
 The decision to leverage will be based on demand on the loan fund for projects to address
public health concerns, market conditions and long‐term impact to the fund.
 A minimum of 20% of the FFY 2014 Capitalization Grant funds will be provided as forgivable
principal.
 All contracts for construction financial assistance will require the borrower to comply with the
Davis‐Bacon Act regardless of the source of funding if required as part of the FFY 2014
Capitalization Grant.
 All contracts for construction financial assistance will require the borrower to comply with the
Use of American Iron and Steel as described in WIFA’s Capitalization Grant regardless of the
source of funding if required as part of the FFY 2014 Capitalization Grant.
 WIFA will assess income from the Standard Combined Interest and Fee Rate (CIFR) as either fee
income or interest income in accordance with the following table.

6

Combined Interest and Fee Rate (CIFR) for 20 Year Loans
Financial Structure
CIFR
Governmental

Municipal Market Data Index (MMD) multiplied by the Subsidy

Non‐Governmental

Prime Rate plus 200 basis points multiplied by the Subsidy

7

Section 12: State Match Sources
As demonstrated in the Sources and Uses Table, WIFA revenues will provide match for the FFY 2014
Capitalization Grant.
Section 13: Identification of Overmatch
Through April 2013, WIFA has overmatched the federal grants when viewed in a cumulative perspective
by $13,313,508.
Section 14: Anticipated Cash Draw Ratio (proportionality) or Statement of Match Drawdown then
Federal
With the overmatch, WIFA will draw 100% federal funds until the overmatch is depleted. Once the
overmatch is depleted WIFA will draw the state match equivalency prior to drawing federal funds.
Section 15: Estimated Disbursement Schedule
First Quarter
Second Quarter
20%
35%

Third Quarter
35%

Fourth Quarter
10%

Section 16: Identification of any Intended Transfers between Funds
WIFA currently has no planned transfers between the CWSRF and the DWSRF.
Section 17: Identification and Explanation of any Cross Collateralization
The Authority maintains the CWSRF and DWSRF as separate and distinct programs. Revenues generated
by either program will remain within that program. Any transfers between funds will be temporary in
nature and done only to alleviate short term cash shortages.
Section 18: Combined Interest and Fee Rate (CIFR)
For 20 year term loans, the WIFA Board of Directors has established a target CIFR ranging between 70%
and 95% of the tax‐exempt AAA MMD Rate for governmental entities and the Prime Rate plus 200 basis
points for non‐governmental entities. CIFR/subsidies on individual loans will be set pursuant to the
criteria below:
 Total Priority Value Points;
 Local fiscal capacity of the area served by the system requesting assistance; and,
 Lending capacity of Arizona’s DWSRF.
Section 19: Fees Charged if Applicable and Uses of Fees
Section 11 describes how fees are charged. The Sources and Uses table demonstrates how fees will be
used for SFY 2015, providing match to the federal grant, administration of the SRF, and providing
support to ADEQ’s Drinking Water Program.

8

Section 20: Overview of Program Financial Status and Management
The Federal Capitalization Grant for FFY 2014 will be $15,969,000. See Table below.
AZ DW-SRF Capitalization Grants
Document
1

Total Amount

FS99989498

16,938,300.00

2

FS99990299

14,863,800.00

3

FS99990200

7,905,300.00

4

FS99990201

7,937,900.00

5

FS99990202

9,126,300.00

6

FS99990203

9,071,400.00

7

FS99990204

9,345,300.00

8
9

FS99990205
FS99990206

9,455,400.00
23,350,750.00

10

FS99990207

23,358,750.00

11

FS99990208

23,118,000.00

12

FS99990209

23,118,000.00

13

2F00T05809

55,340,000.00

14

FS99990210

27,259,000.00

15

FS99990211

18,614,000.00

16

FS99990212

18,026,000.00

17

Supplement

301,000.00

18

FS99990213

16,913,000.00

19

FS99990214

15,969,000.00

Totals

330,011,200.00

The Arizona DWSRF program supports the National USEPA Strategic Plan Goal 2 (Clean and Safe Water),
Objective 1 (Protect Human Health), Sub‐objective 1 (Water Safe to Drink) listed below. Specifically,
Arizona established and is managing the revolving loan fund to make low cost loans and other types of
assistance to water systems to finance the cost of infrastructure projects to achieve or maintain
compliance with Safe Drinking Water Act requirements. Arizona DWSRF activities support USEPA
Program Reporting Measure SDW‐04 Fund Utilization and SDW‐05 DWSRF projects that have initiated
operations.
All planned and prior year loans have assisted public water systems in meeting the federal and state
drinking water compliance requirements. Details of Arizona’s DWSRF activities supporting the National
USEPA Strategic Plan will be included in the DWSRF Annual Report as well as in the Drinking Water
National Information Management System (DW NIMS), Drinking Water Project Benefit Reporting System
(PBR); and the Federal Funding Accountability and Transparency Act (FFATA) Reporting System.

9

Measure Measure Text

SDW‐04

Fund utilization rate [cumulative dollar amount of
loan agreements divided by cumulative funds
available for projects] for the DWSRF

SDW‐05

Number of DWSRF projects that have initiated
operations (cumulative)

National
Target

Region 9
Target

Arizona
Target

93%

86%

100%

DWSRF Fund Utilization is calculated by dividing the cumulative funds provided (DWNIMS Line 130) by
the cumulative DWSRF Funds available as of June 30, 2014 (DWNIMS line 283). Number of DWSRF
projects that have initiated operations for SFY 2014 and cumulative will be reported in the Annual
Report.
Section 21: Leveraging Plan
As a matter of practice, WIFA pays close attention to its cash position and lending capacity. This practice
includes reports to the WIFA Board of Directors at each Board meeting defining WIFA’s current cash
position and lending capacity. As a result of slow loan demand and prepayments, it appears that WIFA’s
next Bond Issue won’t be needed until late in the year or early next year.
Section 22: Binding Commitment Schedule
When the WIFA Board of Directors approves an applicant’s financial assistance request, WIFA staff
prepares and circulates financial assistance (loan) documents to evidence the binding commitment in
accordance with applicable federal and state requirements. Based on the DW PPL, WIFA expects to
enter into binding commitments at 168% (minimum is 120%) (dollars on PPL vs. the federal cap grant).
Section 23: Grant Payment Schedule
WIFA will receive all payments in the first quarter available.
Sections 24‐33: These Sections are for CWSRF, not applicable to DWSRF.

10

Section 34‐43: Fundable List
Arizona combines the Fundable and Comprehensive lists into one list. WIFA applies all crosscutters to all projects with the exception of FFATA. FFATA is treated
on an equivalency basis (see yellow highlight below). It is unknown at this time which projects will be awarded forgivable principal. Green projects are identified
with “***”.
Arizona’s Drinking Water Revolving Fund Project Priority List – 2015 Funding Cycle

PPL
Rank

Applicant

1

*Cienega
Water
Company

2

*Monte Vista
Water
Company

Population

County

140 La Paz

85 Cochise

PWS
Number

Project Name

Fluoride
Treatment and
AZ0415002 System Upgrades

Arsenic Removal
System and Well
AZ0402043 Site Improvements

11

Description

Water quality sampling
indicated a fluoride content
of 5.6 ppm. Company will
install Point of Use devices
for the 55 residential
metered connections in its
service area.
Monte Vista Water Co. is
out of compliance with the
arsenic MCL and has a
leaking hydropneumatic
tank that has been in
service for over 20 years.
The Company intends to
install an arsenic removal
system and replace the
tank with a VFD‐controlled
well pump, flow meter, and
an 85‐gal pressure tank for
surge control.

Project
Number

Amount
Requested /
Probable
Green Amount

Subsidy

006
2015

$50,000.00

70%

008
2015

$60,000.00

70%

3

*Harrisburg
Utility
Company, Inc.

959 La Paz

4

*Cibola
Mutual Water
Co. Inc.

70 La Paz

TTHM Removal
AZ0415123 System

2,136 Mohave

Arsenic
Treatment,
Transmission
Replacement, &
Well Electric
AZ0408035 Changeover

5

Truxton
Canyon Water
Company

Water Storage
AZ0415029 Tank Replacement

12

Fix‐it‐first: Utility was cited
by ADEQ for damage to
storage tank #2 resulting in
leakage. An inspection
determined that due to
corrosion the tank was
beyond repair and taken
out of service. Utility is
requesting funding for a
replacement tank.
Cibola Mutual Water
Company is not compliant
with ADEQ requirement for
TTHM levels. Cibola intends
to purchase a GridBee
TTHM Removal System.
Fix‐it‐first: Truxton
Canyon's main
transmission line was
installed in the 1940's and
is under constant repair
due to deterioration and
must be replaced. The
Company will also
construct an arsenic
treatment plant.

007
2015

$115,000.00

80%

001
2015

$125,000.00

80%

018
2015

$1,819,208.00

80%

6

*Chino Valley,
Town of

7

Christopher
Creek Haven

1,200 Yavapai

225 Gila

Water System
Improvements &
Purchase City of
Prescott Water
Distribution
System in Chino
AZ0413137 Valley

Storage Tank
AZ0404005 Replacement

13

Town has very limited
water distribution along its
transportation corridor, SR
89. In addition, 656 Chino
Valley households and
commercial properties are
served by the City of
Prescott water distribution
system. Town intends to
purchase the portion of
City of Prescott water
distribution system in
Chino Valley and extend
water pipes between Road
2 North and Road 3 North
along SR 89.
Fix‐it‐first: The system's
tanks are old and require
many repairs. The system
plans to replace two tanks.

004
2015

$7,357,500.00

80%

015
2015

$30,000.00

85%

8

9

*Yarnell Water
Improvement
Association

*/***Diamond
Valley Water
District

1,700 Yavapai

2,800 Yavapai

Repairs due to
AZ0413057 Yarnell Wildfire

On June 28, 2013 the
community of Yarnell was
devastated by wildfire. 129
houses out of
approximately 600
structures were lost and at
least 50 other structures
were damaged. Association
provided over 4M gallons
of water for firefighting
purposes. The fire, extreme
heat, and firefighting
activities devastated the
water system: the
automated SCADA system
operating the storage
tanks, wells and booster
pumps were destroyed;
meters and meter boxes
were destroyed by the
extreme heat; and
numerous leaks occurred in
water mains and service
lines. The Association is
requesting funds to repair
the system and replace the
destroyed components.

System
AZ0413017 Replacement

Fix‐it‐first: The aging
distribution system has
frequent mainline and
service line breaks, lack of
valves, unaddressed
pressure zones, old meters,
and inadequate storage.
Water loss averages over 1
million gallons a month or
14

011
2015

$1,200,000.00

75%

005
2015

$5,100,000.00
/
Categorical

80%

10

Sunrise Water
Company

11

Clear Springs
Utility
Company

Arsenic
Treatment,
Booster Pumps &
4,350 Maricopa AZ0407070 Storage Tank

1,180 Cochise

Capital
AZ0402008 Improvements
(Storage, Electric
&
AZ0402049 and Waterline)

15

over 30%. The District
proposes to replace the
entire drinking water
distribution system
infrastructure.
Well #2 has an arsenic level
of 40 ppb. Booster pumps
are 40+ years old and not
very efficient. Because of
low well output, additional
storage is needed at Well
#4. Project is to install
arsenic treatment and
replace booster pumps at
Well #2 and install 250,000
gallon storage tank at Well
#4.
Fix‐it‐first: Water system
needs to upgrade aging
infrastructure and address
inadequate storage. Project
will install storage and
upgrade electric at country
wells 3 and 7; install
100,000 gallons of storage
at well 16; refurbish well
16; refurbish existing
100,000 gallon storage tank
and install back‐up
generator at well 18 site;
replace existing aged water
line that was installed in
the 1960’s; move water
main to a public utility
easement.

$300,000.00

012
2015

$755,000.00

85%

009
2015

$426,249.00

85%

12

*Montezuma
Rimrock
Water
Company LLC

13

*Clarkdale,
Town of

14

Sandario
Water
Company

450 Yavapai

Storage Tank
AZ0413071 Replacement

4,026 Yavapai

Water System
Security
AZ0413024 Improvements

1,000 Pima

Capital
Improvements
(Storage &
AZ0410093 Electrical)

16

Fix‐it‐first: The two existing
10,000 gallon storage tanks
leak profusely, have been
repaired numerous times
and are beyond repair. In
order to meet customer
demand, two 40,000 gallon
storage tanks must be
constructed.
Town has two potable
water storage reservoirs
which do not conform with
Security Standards. At the
89A Reservoir: install 350
feet of security fencing. At
the Haskell Springs
Reservoir site: install 1400
feet of security fencing
with an access gate and
install security lighting,
alarm systems and
surveillance systems.
The system does not have
adequate storage at Well
#2 for 331 connections and
the electric panel at Well
#3 is substandard.
Company will construct a
storage tank at Well #2 and
install electrical upgrades
at Well #3.

013
2015

$108,000.00

80%

016
2015

$68,000.00

80%

010
2015

$587,650.00

85%

15

*Williams, City
of

16

*Appaloosa
Water
Company

17

Nogales, City
of

3,145 Coconino

630 Yavapai

Santa
21,830 Cruz

Water Supply /
Water
Sustainability &
AZ0403026 Storage

AZ0413208 Backup Generator

Water Main
Replacement ‐
Crawford Street,
AZ0412004 McNab to Sonita

17

City needs additional water
supply (wells) rather than
reliance on reservoirs,
which will also enhance the
water quality. The City's
water infrastructure is 60
to 70 years old; the project
will also include
replacement of failing
pumps, tanks, processing
equipment, various valves,
transmission & distribution
lines and meters.
Company proposes to
increase its storage tank
capacity and install a
backup generator.
Fix‐it‐first: The existing 4"
cast iron main with lead
fittings and 6" asbestos
cement water distribution
main on Crawford Street
were originally installed in
1918. They are shallow
water mains and have
experienced breaks over
the last few decades, as
well as service line repairs
and replacements. The
Water Department
proposes to rehabilitate
approximately 3,000 linear
feet with new C‐900 and
ductile iron 8‐inch pipeline.

002
2015

$3,500,000.00

80%

014
2015

$60,000.00

80%

017
2015

$630,000.00

85%

18
Total:

Litchfield Park
Service
Company

LPSCO Recharge
39,000 Maricopa AZ0407046 Wells

* Eligible for disadvantaged community designation

18

LPSCO will install several
recharge wells within its
service area to recharge
approximately 1,290 acre
feet of effluent/year.

003
2015

$1,755,000.00
$23,746,607.00

90%

Section 44: IUP Includes Set‐Asides Taken and Authority to be Banked if Applicable
See Sources and Uses Table for Set‐Aside budgeted for FFY 2014. WIFA is requesting (on behalf of ADEQ) to “Bank”
$72,688 of the new funds for future funding use. The banked funds will become a portion of the ADEQ DWSRF federal
funding under the 10% program management set‐aside.
Section 45: IUP Includes Uses of the Set‐Aside Funds and Expected Timeline of Expenditure
Section 10 describes the uses of the set‐aside funds. ADEQ provides a timeline in a separate work plan for their portion.
Section 46: IUP Includes Expected Outcomes of the Set‐Aside Funds
Provided by ADEQ under separate cover.

19