Service Area Strategic Plan
11/23/2009   5:40 am
Department of Health (601)
Biennium: 2008-10
Service Area 1 of 1
Drinking Water Construction Financing (601 508 02)
Description

This service area implements the federal Drinking Water State Revolving Fund Program (DWSRF) and the Virginia Water Supply Assistance Grant Program (WSAG). The purpose of this service area is to help public waterworks make infrastructure improvements necessary to ensure continued provision of safe drinking water and to help protect public health.
Background Information
Mission Alignment and Authority
  • Describe how this service supports the agency mission
    This service area directly aligns with Virginia Department of Health's (VDH’s) mission of promoting and protecting the health of Virginians by assuring an adequate quality and quantity of safe and affordable drinking water to consumers.
  • Describe the Statutory Authority of this Service
    Code of Virginia Title 32.1 Chapter 6 Sections 32.1-167 through 32.1-176 establishes authority to regulate construction and operation of waterworks in Virginia.

    Code of Virginia Title 32.1 Chapter 6 Sections 32.1-171.2 establishes the Virginia Water Supply Assistance Fund Program in Virginia.

    Federal Safe Drinking Water Act, 1974, as amended in 1986 and 1996 establishes the DWSRF Program in Section 1452, “State Revolving Loan Funds,” of the Act.

    Virginia’s Appropriation Act establishes that VDH will control and manage monies appropriated for safe drinking water.

    Code of Virginia Title 2.2 Chapter 6 Section 2.2-611 authorizes state agencies to accept grants from agencies and departments of the United States.
Customers
Agency Customer Group Customer Customers served annually Potential annual customers
Affiliated Interest (engineers, contractors, attorneys, product manufactures) 100 500
Other Governmental Agencies (local, state, and federal) 300 300
Public Served 6,200,000 6,900,000
Waterworks Operators 1,800 2,500
Waterworks Owners 3,000 3,000

Anticipated Changes To Agency Customer Base
Waterworks owners:
• The number of waterworks owners is expected to remain relatively stable with a possible downward trend due to an increase in the number and complexity of drinking water regulations and a trend toward regionalization.

Waterworks operators:
• Although operators are licensed by the Department of Professional and Occupational Regulation, VDH provides a variety of training to increase technical capability at waterworks. Training will increase as operators seek to enhance their skills in a changing environment within the drinking water industry or as new persons seek entry.

Public served:
• VDH foresees more citizens on public supplies (waterworks) as the existing owners are improving and expanding their existing waterworks due to normal population growth.

• Also, existing waterworks are extending their service areas to include homes served by individual wells, springs or cisterns with drinking water health concerns.

Affiliated interests:
• VDH expects to see an increase in the number of affiliated interests such as consulting engineers, attorneys, product manufacturers and general construction contractors as increasing regulations are implemented and waterworks owners maintain, update, or expand their infrastructure facilities to cope with the mandated changes and the normal growth.

Other governmental agencies:
• VDH will increase involvement with numerous agencies at local, state, and federal levels by either providing technical assistance or by coordinating functions to better serve mutual clients as they relate to providing safe affordable drinking water.

• Changing focuses, envisioned needs, security concerns and/or regulatory mandates will demand VDH’s continued involvement with others.
Partners
Partner Description
[None entered]
Products and Services
  • Factors Impacting the Products and/or Services:
    The Federal DWSRF appropriation is distributed to each state based on that state’s proportional share of the total eligible needs reported for the most recent Drinking Water Infrastructure Needs Survey. The mostrecent results of this survey were released June 14, 2005 and will be used to calculate state grant allotments for DWSRF appropriations made in fiscal years 2006 through 2009. The results of the previous Drinking Water Infrastructure Needs Survey used to calculate the states allotments for fiscal years 2001 through 2005
    resulted in a decrease in annual funding of approximately $4 million. Because funds are reallocated to States every four years based on the Needs Survey, the DWSRF funding allotted to each State does not remain at a constant level. A decrease in DWSRF funding will result in less funds being available for waterworks to improve, upgrade, or expand their drinking water infrastructure and less funding to administer the construction program and support the regulatory program.

    The Appropriations Act provides general funds totaling $4.5 million for the WSAG and DWSRF programs. Reduction in DWSRF funds awarded to Virginia will necessitate an increase in general fund support to meet the demands of the program.

    Upcoming federal regulations will place additional emphasis on waterworks improvement that are needed in order to maintain compliance with regulations. This will increase the demand for drinking water infrastructure funding.

    A reduction in grant funds from co-funding partners will increase demand on this program and impact our ability to make projects affordable.
  • Anticipated Changes to the Products and/or Services
    An increased demand is anticipated from our customers for construction projects due to increased regulations and problem identification.

    Reduced or static funding sources will erode our ability to maintain present services as well as to create new assistance resources.
  • Listing of Products and/or Services
    • Financial assistance: Provide below market interest to zero interest loans for a term not to exceed 30 years to community and non-profit non-community waterworks for eligible drinking water infrastructure projects. Provide grants to community and non-profit non-community waterworks to fund from 10% to 100% of eligible drinking water infrastructure projects costs. Affordable financing helps to ensure delivery of safe and affordable drinking water to citizens of the Commonwealth.
    • Planning and design grants: 100% grant funds awarded to community waterworks for eligible costs. Assist waterworks owners in recognizing problems and producing needed planning and design documents that identify optimum solutions. Assist waterworks owners to qualify for various construction funding.
    • Technical oversight: Provide oversight of funded projects to ensure that waterworks fully understand and follow all applicable rules and regulations. Determination that funded projects have undergone an environmental review in accordance with VDH’s approved process. Determination that funded projects have properly followed federal and state procurement regulations including Minority Business Enterprise/Women Business Enterprise. Determination that funded projects have complied with federal cross-cutting authorities. Determination that funded projects have undergone the proper public notices.
    • Construction inspection: Onsite inspections to determine if construction progress is consistent with funds disbursed. Offer assistance to keep project on track.
    • Manage special US EPA appropriation projects: Oversee special federal budget line item drinking water infrastructure projects in Virginia to ensure compliance with applicable rules and regulations. Assist localities and waterworks owners in complying with federal rules and regulations included in their grant agreement with US EPA.
    • Guidance and regulatory development: Establish requirements for complex program operation. Give clear, concise, streamlined, and understandable guidance to waterworks owners on the various funding program requirements.
    • Customer service: Provide various services to a variety of customers including waterworks owners, consulting engineers, contractors, non-profit organizations, other state and federal funding partners, and universities. Provide training through professional development course, small system management institute, and on-site funding workshops. Provide technical assistance by assisting in project identification and completion of funding applications.
    • Training scholarships for waterworks owners/operators: Award training scholarships to waterworks owners/operators to assist owners and operators in broadening their knowledge of waterworks technical, financial and managerial needs.
    • Create new assistance resources: Administer a receivership program where the courts can appoint a receiver to take control of and responsibility for a waterworks that is unable or unwilling to provide adequate and safe drinking water. Provide funding for development and maintenance of the Distance Learning Website at Mountain Empire Community College where individuals can earn an Associates Degree in Water. Establishment of a $10 million Southwest Virginia Endowment using funds from the DWSRF program to provide funding for drinking water infrastructure projects in Planning Districts 1 and 2 which includes the counties of Lee, Scott, Wise, Dickenson, Russell, Tazewell, Buchanan and the City of Norton.
Finance
  • Financial Overview
    This service area's funding comes from the federal Drinking Water State Revolving Fund, General Funds, and miscellaneous sources such as interest earnings and enforcement penalties.
  • Financial Breakdown
    FY 2009    FY 2010
      General Fund     Nongeneral Fund        General Fund     Nongeneral Fund  
    Base Budget $7,100,000 $15,992,124    $7,100,000 $15,992,124
    Change To Base $0 $0    $-2,600,000 $0
               
    Service Area Total   $7,100,000  $15,992,124     $4,500,000  $15,992,124 
Human Resources
  • Human Resources Overview
    [Nothing entered]
  • Human Resource Levels
    Effective Date      
    Total Authorized Position level Ø    
    Vacant Positions Ø    
    Current Employment Level 0.0    
    Non-Classified (Filled)    
    Full-Time Classified (Filled)    breakout of Current Employment Level
    Part-Time Classified (Filled)    
    Faculty (Filled)    
    Wage    
    Contract Employees    
    Total Human Resource Level 0.0   = Current Employment Level + Wage and Contract Employees
  • Factors Impacting HR
    [Nothing entered]
  • Anticipated HR Changes
    [Nothing entered]
Service Area Objectives
 
  • Increase Virginia's citizens access to safe and affordable drinking water
    Objective Description
    This service area strives to provide technical and financial resources to localities and waterworks to improve existing waterworks or extend service to areas without public waterworks; thereby delivering safe and affordable drinking water. Such actions promote and protect the health of our citizens. State and federal laws mandate that drinking water be safe to drink. Citizen access to safe and affordable drinking water is critical to their overall quality of life.
    Alignment to Agency Goals
    • Agency Goal:
      Comment: This objective is also aligned with Virginia’s long term objectives to “Protect the public’s safety and security, ensuring a fair and effective system of justice and providing a prepared response to emergencies and disasters of all kinds” and “Inspire and support Virginians toward healthy lives and strong and resilient families.
    Objective Strategies
    • Provide technical assistance to localities, waterworks owners, and others in using the Program.
    • Assist in identifying projects that will promote access to safe drinking water.
    • Workshops will be held annually in six locations across the state to provide specific training on funding applications preparation and funding requirements.
    • Provide timely and complete review of funding applications.
    • Web based information will be refined and more information added if needed.
    • Collaborate with co-funding partners to assemble the most appropriate financial package for the funding recipients.
    • Monitor available financial resources of the type needed (grants and low interest loans) and make budget recommendations to VDH’s Senior Management.
    • Monitor funding recipients’ progress on tasks needed to complete the project on time and if a recipient does not have sufficient progress staff will encourage timely completion thereby ensuring that citizens benefit as quickly as possible.
    • Status of the measure will be monitored quarterly.
    Objective Measures
    • The number of additional Virginia citizens who will gain access to safe and affordable drinking water
      Measure Class:
      Governor's Key
      Measure Type:
      Outcome
      Measure Frequency:
      Quarterly
      Preferred Trend:
      Up

      Key Summary: We will increase the number of additional Virginia citizens who will gain access to safe and affordable drinking water to 124,805 by 6/30/09.

      Measure Baseline Value:
      76494
      Date:
      7/1/2004

      Measure Baseline Description: Number of citizens

      Measure Target Value:
      124805
      Date:
      6/30/2010

      Measure Target Description: Number of citizens

      Data Source and Calculation: Cumulative number of citizens provided an adequate quality and quantity of drinking water as a result of loans and/or grants from the Drinking Water State Revolving Fund and Water Supply Assistance Grant programs. Progress is calculated using information from the Office of Drinking Water’s internal Funding Database that contains the number of people benefiting from financial assistance for numerous construction projects. The Measure Target is cumulative to the baseline; and the new number of people benefiting is added to the existing baseline. The Database information is supplemented by onsite visit reports of each project’s progress. In addition to retrieval from the Database, service area files contain a detailed hard copy of the onsite visit report. The calculation is made by generating a report from the database.


Back to the Strategic Planning Page
http://www.vaperforms.virgina.gov