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 Title Page
 Table of Contents
 Introduction
 Program overview
 Capacity development requireme...
 Project priority ranking syste...
 Project priority list
 Project planning
 A. 'call for projects' letter
 B. grant eligibility
 C. priority ranking points...
 D. report on public meetings
 E. Virgin Islands capital improvement...






Group Title: Fiscal year ... intended use plan, priority system, and project priority list. Territorial Drinking Water Capital Improvements Grants Program.
Title: Fiscal year 2002 intended use plan, priority system, and project priority list. Territorial Drinking Water Capital Improvements Grants Program.
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 Material Information
Title: Fiscal year 2002 intended use plan, priority system, and project priority list. Territorial Drinking Water Capital Improvements Grants Program.
Series Title: Fiscal year ... intended use plan, priority system, and project priority list. Territorial Drinking Water Capital Improvements Grants Program.
Physical Description: Serial
Language: English
Creator: Virgin Islands of the United States. Department of Planning and Natural Resources. Division of Environmental Protection. Territorial Drinking Water Capital Improvements Grants Program.
Publication Date: 12/26/2003
 Subjects
Subject: Caribbean   ( lcsh )
Spatial Coverage: North America -- United States Virgin Islands
Caribbean
 Record Information
Bibliographic ID: CA01300675
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Table of Contents
    Title Page
        Page i
    Table of Contents
        Page ii
    Introduction
        Page 1
    Program overview
        Page 2
        Page 3
        Page 4
        Page 5
    Capacity development requirements
        Page 6
    Project priority ranking system
        Page 7
        Page 8
        Page 9
    Project priority list
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
    Project planning
        Page 16
        Page 17
        Page 18
    A. 'call for projects' letter
        Page A-1
        Page A-2
    B. grant eligibility
        Page B-1
        Page B-2
    C. priority ranking points system
        Page C-1
        Page C-2
    D. report on public meetings
        Page D-1
    E. Virgin Islands capital improvement grant pre-application form
        Page E-1
        Page E-2
        Page E-3
        Page E-4
        Page E-5
        Page E-6
Full Text








TERRITORY OF THE VIRGIN ISLANDS

DEPARTMENT OF PLANNING & NATURAL RESOURCES
DIVISION OF ENVIRONMENTAL PROTECTION


TERRITORIAL DRINKING WATER CAPITAL IMPROVEMENTS
GRANTS PROGRAM







FISCAL YEAR 2002
INTENDED USE PLAN,
PRIORITY SYSTEM,
AND
PROJECT PRIORITY LIST


October 2003







Table of Contents


I. INTRODUCTION Page 1

II. PROGRAM GOALS Page 1

III. PROGRAM OVERVIEW Page 2
A. Administrative Procedures Page 2
B. Public Review and Comment Page 3
C. Project Bypass Page 3
D. Program Schedule Page 3
E. Emergency Projects Page 4

IV. FINANCIAL OVERVIEW Page 4
A. Project Funds Available Page 4
B. Funding Allocation for Small, Medium, and Large Systems' Projects Page 5
C. Planning and Engineering Design Allowances Page 5

V. CAPACITY DEVELOPMENT REQUIREMENTS Page 6
A. Technical Capacity Page 6
B. Financial Capacity Page 7
C. Managerial Capacity Page 7

VI. PROJECT PRIORITY RANKING SYSTEM Page 7
A. Systems eligible for Funding Page 7
B. Systems Ineligible for Funding Page 8
C. Special Conditions Page 8
D. Priority Ranking Criteria Page 8
E. Tie Breaker Page 10

VII. PROJECT PRIORITY LIST Page 10
A. Small and Medium Systems Project Priority List Page 11
B. Large Systems Project Priority List Page 13

VIII. PROJECT PLANNING Page 16
A. Design and Administrative Considerations Page 16
B. Technical Review Page 16
C. Addenda and Revised Plans Page 16

IX. CONSTRUCTION OVERSIGHT Page 16
A. Increases and Decreases in Costs Due to Bids Page 17
B. Change Orders Page 17
C. Construction Monitoring Page 17
D. Operation and Maintenance Manual Page 18

APPENDIX A: "Call for Projects" Letter

APPENDIX B: Grant Eligibility

APPENDIX C: RANKING POINTS SYSTEM

APPENDIX D: Report on Public Hearings


APPENDIX E: Virgin Islands Capital Improvement Grant Pre-Application Form








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

I. INTRODUCTION

Many public water systems are in need of infrastructure improvements to protect public health and maintain
compliance with the Safe Drinking Water Act (SDWA). The Safe Drinking Water Act (SDWA)
Amendments of 1996 authorized a Drinking Water State Revolving Fund (DWSRF) to assist publicly owned
and privately owned community public water systems and nonprofit non-community public water systems
finance the costs of capital improvements. These capital improvements must be able to achieve and maintain
compliance with the SDWA requirements and to further the public health protection objectives of the SDWA.
Through the DWSRF, grants are available to eligible public water systems in the Territories of the United
States. These grants will be administered by the Virgin Islands Department of Planning and Natural
Resources Division of Environmental Protection (DPNR/DEP) through the Drinking Water Capital
Improvement Grants (VIDWCIG) program.

The DPNR/DEP, acting on behalf of the Government of the Virgin Islands as the authorized grant
administrator, hereby submits to the U.S. Environmental Protection Agency (EPA) this Intended Use Plan
(IUP). This IUP describes the use of FY-2001 and FY-2002 grant monies in the Virgin Islands' DWCIG
program to meet the objectives of the SDWA and further the goal of protecting public health. Specifically,
the IUP includes the annual schedule, financial overview, priority ranking system, Project Priority List,
project planning procedures, construction oversight, and other program requirements.

Through annual grants provided by the DWSRF during fiscal years 2001 and 2002, total of $2,790,800 will
be available to the VIDWCIG program. Eligible public water systems will receive grants directly from
DPNR/DEP. DPNR/DEP is authorized and intends to use 4% for administration of the program and 2% for
technical assistance to small public water systems. A complete breakdown of the available funds is shown
in Section IV. Financial Overview.

II. PROGRAM GOALS

The VIDWCIG program will help ensure that drinking water supplies in Virgin Islands remain safe and
affordable and that public water systems, which receive funding, will be properly operated and maintained.
The goals of the VIDWCIG program include the following:

1. To implement and maintain the DWCIG program for the Territory of the Virgin Islands.

2 To provide financial assistance to eligible public water systems for eligible projects associated with
the capital improvements of water treatment, storage and distribution facilities.

3. To help public water systems achieve and maintain compliance with the Virgin Islands and National
Primary Drinking Water Regulations.

4. To provide assistance, which will enable public water systems to further the health protection
objectives of the SDWA.

5. To improve technical, financial, and managerial capacity of funded public water systems in the
Virgin Islands so that they can provide safe drinking water over the long term.

6. To make funds available to improve small public water systems (population served less than 3,300)
of the Virgin Islands.


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Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

III. PROGRAM OVERVIEW

Every two years DPNR/DEP will apply for grant monies provided by the DWSRF and issue a "call for
projects" letter and a pre-application form to the Territory's public water systems prior to receipt of grants.
The pre-applications will be used to rank and prioritize the new projects for inclusion on the Project Priority
List for the current year's funding. This list will determine which PWS will receive grants from the available
funds. All projects will be ranked using the priority system described in Section VI. Project Priority Ranking
System.

DPNR/DEP will also prepare an Intended Use Plan (IUP) for grant monies provided by the DWSRF. The
IUP will describe how the Territory proposes to use the available grants for each fiscal year. The IUP will
include the Project Priority List (PPL) with a funding line. The projects listed above the funding line will be
eligible for Drinking Water Capital Improvement Grants (DWCIPG)for the current funding period. Projects
listed below the funding line will remain on the list and may be eligible for funding in future years. Projects
already listed on the PPL but are not funded in the present funding period DO NOT need to resubmit pre-
applications unless the project scope or other project information changes.

The DPNR/DEP will use the DWCIG money for both project expenditures and administrative/technical
assistance expenditures. The non- project expenditures provide for activities that are not construction related
and include costs associated with the administration of the VIDWCIG program and technical assistance to
small systems. Project expenditures involve the costs associated with the planning, design, materials,
equipment, and construction of public water systems' capital improvement projects.

A. ADMINISTRATIVE PROCEDURES

DPNR will use the following procedures in administering the project priority system.

1. DPNR/DEP will prepare an annual IUP and Project Priority List for possible funding during the
grant-funding period. The PPL will identify and rank each project.

2. Non-profit, non-community PWS must submit proof of non-profit status prior to DPNR accepting
a pre-application for capital improvement projects.

3. DPNR/DEP will give public notice of the IUP and hold public meetings (one in each district) to
receive comments. DPNR/DEP will provide information on the calculation of the priority score of
a project upon request.

4. DPNR/DEP may amend the PPL and the IUP to include a project requested by a public water system,
to meet emergency needs for the protection of public health.

5. Only public water systems listed in the IUP may receive funding for the DPNR approved projects.
These facilities must begin construction of a project only after execution of a Memorandum of
Agreement (MOA) between the PWS and DPNR.

6. The construction cost for projects will be refunded only after the execution of the MOA between
DPNR and documents for reimbursement are approved by DPNR.

7. If available monies are not used by the projects identified above the funding line on the PPL within
a specified time (see section III-D. Project Bypass), those funds will be made available to the next
highest ranked project listed below the funding line.


Page -2-








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

B. PUBLIC REVIEW AND COMMENT

In accordance with the requirements of 40 CFR Part 25 (Public Participation for certain EPA programs) and
40 CFR Part 6 (NEPA), the DPNR will ensure proper public participation during the development of the
Project Priority List, the Intended Use Plan, and environmental review procedures.

All public water systems in the Virgin Islands may be notified through written communication and the general
public will be notified via printed media that copies of the proposed IUP will be available for review and
comment. Once the IUP is issued, there will be a 30-day comment period. After the comment period has
closed, DPNR will prepare and distribute a response to comments and a final IUP.

C. PROGRAM SCHEDULES

In order to ensure that all available funds are obligated on a timely basis, DPNR has established a strict
schedule for the implementation of the VIDWCIG program. The table below summarizes significant
deadlines and other anticipated milestones which must be adhered to by the grant recipient and the VIDWCIG
program.


ACTIVITY ANTICIPATED
MILESTONE

All facilities listed above the funding line in the FY2002 IUP must submit a
October 15, 2003
project schedule within 1 month of DPNR issuing the finalized FY2002 IUP.

All facilities listed above the funding line in the FY2002 IUP must submit a
complete grant application package within 12 months of DPNR issuing the September 15, 2004
finalized FY2002 IUP.

6 months after
Facilities begin construction. 6 months aft
execution of MOA

DPNR/DEP will send out a "call for projects." for FY04 IUP January 15, 2005

Deadline for submittal ofpre-applications for FY04 IUP. March 1, 2005

Proposed Intended Use Plan issued with a 30-day comment period. April 1, 2005

Comment period on proposed FY04 IUP closes. May 1, 2005

D. PROJECT BYPASS

Any project that is not ready to proceed may be bypassed. A project will be determined as "ready to proceed"
upon the submission of a complete grant application package within the time specified in table above. The
contents of a complete grant application package is discussed in section VIII-A. Design and Administrative
Considerations. Upon approval of the complete grant application, a Memorandum of Agreement (MOA)
between DPNR and the system will be executed. If construction of the project does not begin within six
months of execution of the MOA, the project may also be bypassed. Bypassed projects may lose their grant
allotment to other projects listed below the funding line in the order indicated on the Project Priority List.
If there is a decision to bypass a project, DPNR/DEP will notify, in writing, the public water system whose
project is being bypassed and indicate the reason for the bypass, unless it is known that the bypassed project
has been withdrawn by the PWS. The notified PWS shall have 15 calendar days to respond in writing with
any objections for being bypassed. If any objections are received by DPNR/DEP within the specified time


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Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

period, DPNR/DEP will address the objections.

Any of the following circumstances will be used to bypass a project on the PPL.

1. The project is for a system that is identified as a Significant Non-Compiler (SNC) under the Safe
Drinking Water Act and the project will not ensure compliance.

2. The project has had a change in scope.

3. The grant application, project feasibility report, environmental planning documentation, and other
applicable planning and construction documentation has not been submitted to DPNR/DEP in a
timely manner as indicated above.

4. The project is unable to proceed in a timely manner.

5. The project is withdrawn by the applicant.

A bypassed project will remain on the PPL and will be eligible for funding during the next, and future, fiscal
years. DPNR/DEP will work with the public water systems) whose projects) have been bypassed to ensure
that the projects) will be eligible in the following fiscal year. New or amended projects may receive higher
priority in the next fiscal year than the bypassed projects.

E. EMERGENCY PROJECTS

Consistent with Federal Guidelines, DPNR/DEP may bypass projects listed on the PPL to fund an emergency
project. Emergency projects may include those where some type of unanticipated failure has occurred and
requires immediate attention in order to protect public health. In such cases, DPNR/DEP has the authority
to fund the emergency project ahead of other selected projects. DPNR/DEP will inform the public water
systems) whose projects) were bypassed of the decision and rational behind that decision. The projects that
were bypassed will receive the highest priority for the next available funding.

IV. FINANCIAL OVERVIEW

A. PROJECT FUNDS AVAILABLE

The table below table indicates the total amount of monies made available to the VIDWCIG program from
grants provided by the DWSRF during FY2001 and FY2002. Also indicated is the amounts which will be
used for projects, administration, and technical assistance.

ALLOTMENTS FOR FY2001 AND FY2002
Fiscal Year Allotment Projects Administrative Technical

FY2001 $1,518,900 $1,427,766 $60,756 $30,378

FY2002 $1,271,900 $1,195,586 $50,876 $25,438

TOTAL $2,790,800 $2,623,352 $111,632 $55,816

DPNR/DEP anticipates receiving additional annual DWCIG allotments each fiscal year, subject to annual
Congressional appropriations.


Page -4-








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

B. FUNDING ALLOCATION FOR SMALL, MEDIUM, AND LARGE SYSTEMS' PROJECTS

In keeping with 1442(e) of the SDWA, DPNR/DEP will provide technical and financial assistance to small
and medium size public water systems through the DWCIG. In order to ensure that small and medium size
public water systems are able to participate in the VIDWCIG program, DPNR/DEP will reserve 75% of the
project funds available for grants for small and medium size water system (population served is less than
10,000) grants. 25% of the project funds will be used for grants for large size water systems (population
served is more than 10,000).

After all the small and medium size public water system projects have been funded during a specified funding
period, any remaining funds from the 75% allocated for small and medium systems will be used to fund
capital improvement projects for large systems. Conversely, after all large size projects have been funded
during a specified funding period, any remaining funds from the 25% allocated for large systems will be used
to fund additional capital improvement projects for small and medium size systems.


DRINKING WATER CAPITAL IMPROVEMENTS GRANT ALLOCATIONS


Grants Available

Project Funds Available

Small and Medium Projects
(75% ofProject Funds)

Large Projects
(25% ofProject Funds)


FY2001

$1,427,766


$1,070,824.50


$356,941.50


FY2002

$1,195,586

$896,689.50


$298,896.50


C. PLANNING AND ENGINEERING DESIGN ALLOWANCES

While the purpose of the DWSRF is to provide funding for capital improvements in public water systems,
DPNR/DEP recognizes that preliminary work (planning, design, and engineering) is necessary before the
construction of a project can take place. DPNR/DEP will allow a portion of the grant money to defray the
cost of the planning, design, and engineering of the capital improvement projects. The allowance for
planning, design, and engineering will be a percentage of the cost of the construction and materials to
complete the capital improvement project and will be allowed in addition to the construction and materials
costs. This means that if the planning and design costs exceed the allowed percentage of construction costs,
the public water system must pay the difference out of their own funds. The following table provides the
percentage of the construction costs, which will be allowed to be used for planning, design, and engineering
purposes.


ALLOWANCE FOR PLANNING AND DESIGN AS A
PROJECT COST
PROJECT PERCENTAGE OF CONSTRUCTION COST
Up to $5,000 14% or up to $650
$5,001 to $20, 000 13% or up to $2,400
$20,001 to $35,000 12% or up to $3,850
$35,001 to $50,000 1 l%or up to $5,125
$50,001 to $75,000 10.25% or up to $7,313
$75,001 to $100,000 9.75% or up to $9,250


Page -5-


Total

$2,623,352

$1,967,514


$655,838








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002


ALLOWANCE FOR PLANNING AND DESIGN AS A
PROJECT COST
PROJECT PERCENTAGE OF CONSTRUCTION COST
$100,001 to $150,000 9.25% or up to $13,200
$150,001 to $200,000 8.8% or up to $16,800
$200,001 to $300,000 8.4% or up to $24,450
$300,001 to $400,000 8.15% or up to $31,200
$400,001 to $500,000 7.8%or up to $37,500
$500,001 to $750,000 7.5%or up to $54,375
$750,001 to $1,000,000 7.25% or up to $70,000
Over $1,000,000 7%
NOTE: The allowance does not reimburse for costs incurred. Accordingly, the allowance table should not be used to
determine the compensation for planning or design services. The compensation for planning or design services should
be based upon the nature, scope and complexity of services required by the system.

V. CAPACITY DEVELOPMENT REQUIREMENTS

Before a drinking water capital improvement grant can be awarded, a public water system must have adequate
technical, financial, and managerial capacity (TFM). Each applicant must submit a capacity assessment
(described below) along with the complete grant application. Public water systems that do not have adequate
TFM are not eligible to be funded unless the public water system agrees to make appropriate changes in
operation (management, rate structure, maintenance, consolidation, alternative supplies, etc.) that will ensure
the long-term capability of the system.

Water system capacity is the ability to plan for, achieve, and maintain compliance with applicable drinking
water regulations and to provide safe drinking water to the public. Below is an excerpt from an EPA
guidance document that defines TFM and identifies questions that lead toward an assessment/ demonstration
of adequate capacity.

A. TECHNICAL CAPACITY

Technical capacity is the physical and operational ability of a water system to deliver safe drinking water and
to meet SDWA requirements. Technical capacity refers to the physical infrastructure of the water system,
including the adequacy of source water and the adequacy of treatment, storage and distribution infrastructure.
It also refers to the ability of system personnel to adequately operate and maintain the system and to otherwise
implement requisite technical knowledge. A water system's technical capacity can be determined by
examining key issues and questions, including the following:

Source water adequacy. Does the system have a reliable source of drinking water? Is the source of water
generally good quality and adequately protected?

Infrastructure adequacy. Can the system provide water that meets SDWA standards? What is the condition
of its infrastructure, including wells(s) or sources of water intakes, treatment, storage, and distribution? What
is the infrastructure's life expectancy? Does the system have a capital improvement plan?

Technical knowledge and implementation. Is the system's operators) certified? Does the operators) have
sufficient knowledge of applicable standards? Can the operators) effectively implement this technical
knowledge? Does the system have an effective operation and maintenance program?


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Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

B. FINANCIAL CAPACITY

Financial capacity is a water system's ability to acquire and manage sufficient financial resources to allow
the system to achieve and maintain compliance with the SDWA requirements.

Financial capacity can be determined by examining key issues and questions, including the following:

1. Revenue sufficiency. Do revenues cover costs to operate and maintain the system in compliance with
SDWA standards? Are water rates and charges adequate to cover the cost of water?

2. Credit worthiness. Is the system financially healthy? Does it have access to capital through public
or private sources?

3. Fiscal management and controls. Are adequate books and records maintained? Are appropriate
budgeting, accounting, and financial planning methods used? Does the system manage its revenues
effectively?

C. MANAGERIAL CAPACITY

Managerial capacity is the ability of a water system to conduct its affairs in a manner enabling the system to
achieve and maintain compliance with the SDWA requirements. Managerial capacity refers to the system's
institutional and administrative capabilities.

A water system's managerial capacity can be determined by examining key issues and questions, including
the following:

1. Ownership accountability. Are the system owners clearly identified? Can they be held accountable
for the system?

2. Staffing and organization. Is the system operators) and managers) clearly identified? Is the system
properly organized and staffed? Do personnel understand the management aspects of regulatory
requirements and system operations? Do personnel have adequate expertise to manage water system
operations? Do personnel have the necessary licenses and certifications?

VI. PROJECT PRIORITY RANKING SYSTEM

The following priority ranking system will be used to establish a list of eligible projects to be funded in a
manner that the most serious risks to public health are given the highest priority. The DPNR proposes that
the highest priority be given to acute public health risks, particularly those related to microbiological
organisms.

A. SYSTEMS ELIGIBLE FOR FUNDING

Water systems eligible for project funding are as follows:

1. All community PWSs as defined under the CFR, Part 141, 141.2;

2. Only non-profit non-community, public water systems as defined under the CFR, Part 141, 141.2.


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Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

B. SYSTEMS INELIGIBLE FOR FUNDING

Some water systems may not be eligible for grant funding. If DPNR/DEP finds that a system may not be
capable of maintaining capital improvement projects or has a history of showing a lack of interest and good
faith efforts in maintaining SDWA water quality standards, DPNR/DEP may find the system ineligible for
funding.

1. Lack of technical, managerial and financial capability. The DWCIG program will not provide any
type of assistance to a system that lacks the technical, managerial or financial capability to maintain
SDWA compliance, unless the owner or operator of the system agrees to undertake feasible and
appropriate changes in operation practices or if the use of the financial assistance from the DWCIG
will ensure compliance over the long term.

2. Significant noncompliance. The DWCIG program cannot provide assistance to any system that is
in significant noncompliance with any national drinking water regulation or variance unless DPNR
determines that the project will enable the system to return to compliance and the system will
maintain an adequate level of technical, managerial and financial capability to maintain compliance.

3. Federally owned systems are not eligible to receive funding from the DWCIG.

C. SPECIAL CONDITIONS

The Virgin Islands uniquely uses roofs as means catching rainwater as a source of water to meet our human
consumption needs. This occurs through a system of roof surfaces, gutters, downspouts and cisterns. This
system must conform to V.I. Code Title 29, Chapter 5.

Projects for the improvement of a rainwater collection system or for the increase of rainwater collection and
storage may be eligible for funds from the DWCIG.

The following types of projects relating to a rainwater catchment system will be 100% funded:

S Construction of additional catchment surface to increase water collection capability.
* Repair or replacement of gutters and downspouts.
S Installation of first flush device or rainwater bypass device.

The following projects, subject to DPNR's evaluation will receive 50% funding:

Repair and coating of roof surface with NSF approved coating.

D. PRIORITY RANKING CRITERIA

The ranking criteria will be divided into the following four categories: 1) Compliance with SDWA Health
Standards; 2) Infrastructure Improvements for Public Water Systems; 3) Consolidation or Interconnection
of systems; 4) Population Served. Eligible projects can receive points from any of the categories (see
Appendix CforRANKINGPOINTSSYSTEM) The project's rank will be determined from the sum of all points
received in each category. Each category is briefly described below.

1) Compliance with SDWA Health Standards:

The greatest emphasis will be placed on addressing compliance with health standards established by the Safe
Drinking Water Act (SDWA). Projects to address SDWA health standards that have been exceeded or to


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Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

prevent future violations of rules will receive higher ranking points. The ranking scheme is as follows:

a. Project that will bring into compliance a public water system that is not currently in compliance with
existing acute drinking water standards (fecal coliform, E. coli, nitrate).

b. Project that will bring into compliance public water system that is not currently in compliance with
existing non-acute drinking water standards (all non-acute MCLs including heavy metals, SOCs,
VOCs).

c. Project that will ensure compliance (prevent non-compliance) with existing acute drinking water
standards.

d. Project that will ensure compliance (prevent non-compliance) with existing non-acute drinking water
standards.

2) Infrastructure Improvements for Public Water Systems:

Projects aimed at infrastructure deficiencies that may affect water quality or the system's ability to comply
with the SDWA.

a. Rehabilitate or develop sources to replace contaminated sources.

b. Rehabilitate storage system which, is in poor condition, has failed, or subject to contamination, not
related to inadequate maintenance of the facilities.

c. Cross-contamination prevention/ backflow prevention projects.

d. Existing transmission or distribution mains with appurtenances that need to be rehabilitated, repaired,
replaced, or looped to improve water pressure to maintain safe levels or to ensure compliance with
the SDWA.

e. Existing treatment facilities or equipment that need to be rehabilitated, repaired, or replaced to ensure
compliance with the SDWA.

f Add, upgrade, replace or rehabilitate water system components necessary to meet standards specified
in Recommended Standards for Water Works.

3) Consolidation or Interconnection of Systems:

Capital improvement projects which consolidate or interconnect systems to ensure the consistent production
and distribution of water of adequate drinking quality is considered in the priority system. The ranking
scheme is as follows:

a. Project which will consolidate water systems or provide an interconnection with another water
system for capacity development and to ensure that the system returns to and maintains compliance
with SDWA requirements.

4) Population Served:

Projects that serve a larger number of people will receive more ranking points because they will benefit more
people and further the health protection objectives more.


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Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

E. TIE BREAKER

It is possible that two or more projects may receive the same total number of points in the project ranking
process. In the event of a tie, the project that is more cost effective will be ranked higher. Cost effectiveness
will be evaluated by determining which project will benefit the most people at the least cost. Please note, that
if two or more projects are tied, it will be assumed that the public health and compliance benefits are the
same. If anyone disagrees with DPNR/DEP's final tie breaking decision, they may present to DPNR/DEP
an argument for why they feel one project should out rank another project based on public health protection
or regulatory compliance merits.

VII. PROJECT PRIORITY LIST

The DWCIG Project Priority List, based on the priority ranking system, lists the capital improvement projects
eligible for funding in the order to be funded during the current funding period. All projects on the list were
thoroughly reviewed by DPNR/DEP and will go through the public review process.

In the event that projects identified for funding in the eligible project list are unable to proceed, these delayed
projects may be bypassed. As indicated in section III-D, a project is deemed "ready to proceed," upon the
submission of the complete grant application package. All required engineering, plans, and environmental
reviews for projects must be prepared and submitted as part of the complete grant application.

A line will be drawn dividing the PPL at the point where available program funds end. Applicants above the
line will receive funding only after complying with VIDWCIG program requirements and the incurrence of
the project cost. Compliance of program requirements include timely submission of the complete grant
application and implementation of construction within six months of execution of the MOA between DPNR
and the system. The line may be adjusted downward if projects above the line are bypassed or removed from
the list.

If funds have not been obligated to projects above the line as a result of a systems noncompliance with
VIDWCIG program requirements or the system decision to withdraw a project, the line will be moved down
the list and drawn at the point where the remaining un-obligated funds end. New projects now above the line
may submit a final grant application within twelve months of being notified of their funding status.


Page -10-










Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002


A. SMALL AND MEDIUM SYSTEMS PROJECT PRIORITY LIST


Rank Pop.
an Points System PWS-ID Type Project Description Project Cost Po
No. Served
1 830 UVI St. Croix VI3000501 NTNC Install Well, UV, filters and pumps $76,360 1100
2 770 Association of St. C. VI0000075 C Replace aging supply lines, UV, filter, overflow screens, cistern
covers, etc.
3 760 Pelican Cove Condos VI3000071 TNC New Well (alternative source),New R/O, UVs, & filters $195,900 180
4 690 UVI St. Thomas VI000174 C Ozone treatment; Rehab of source water (well) pump station w/ $23,000 3000
10hp Pump, 6" valve & electrical controls.
5 690 UVI St. Thomas VI0000174 C Install new U.V. Systems $51,000 3000
6 670 Good Hope School VI0000340 NTNC New Well, R/O & UV $267,748 500
7 660 Anchorage Condos VI1000082 C Install UV system $11,800 200
8 660 Cowpet Bay East VI 08 C UV, filtration, chlorination, distribution system $62,290
8 660 Cowpet Bay East VI0000108 C $62,290 300
improvements(pumps, etc)
9 660 St. Patrick's School VI0000404 NTNC New R/O, UV, & pumps $154,043 400
10 660 St. Mary's School VI0000403 NTNC New R/O, UV, & pumps $170,816 400
11 660 St. Joseph's High School VI0000609 NTNC Install new R/O and UV system & downspout repairs $140,605 200
12 660 Heritage Hills VI1000118 C UV system, filtration, chlorination, piping $148,000 200
13 660 Cabrita Point Resort VI1000131 C New UV, Storage tanks, pumps, piping $93,600 120
14 660 Sweet Lime Village VI3000523 C New R/O & UV systems, & well pump $170,272 200
15 660 Dorothea Beach Condos VI1000072 C New R/O, UV, pressure tanks, filters, distribution system $190,642 90
15 660 Dorothea Beach Condos VI1000072 C $190,642 90
improvements
16 535 Gentle Winds Condominiums VI0000055 TNC New R/O $23,800 140
Project Funding Line for Small & Medium PWS $1,943,064
17 535 Saman Villas VI3000522 C Install R/O plant, related piping & POU-R/O&UV $216,300 200
18 515 UVI St. Thomas VI0000174 C Upgrade and rehab RO plant. Electrical installation. $46,500 3000
19 485 Sapphire Village Condos VI1000030 C Replace R/O system, Sand Filters, Pumps&Parts $188,000 225
20 485 Cowpet Bay East VI0000108 C Upgrade R/O with larger membrane $76,000 300
21 485 Cabrita Point Resort VI1000131 C Rehabilitate RO, piping $77,000 120


Page -11-










Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002


Rank Pop.
Rank Points System PWS-ID Type Project Description Project Cost op.
No. Served
22 415 UVI St. Thomas VI0000174 C Rehabilitate 65,000 gal storage cistern. Repair cracks, reline $62500 3000
interior, level control system.
23 410 St. Mary's School VI0000403 NTNC Install new well (source water) $8,900 400
24 410 St. Patrick's School VI0000404 NTNC Install new well (source water) $17,400 400
25 395 Reef Condomi s V10000074 Build new concrete Cistern, related piping. Funding for the balance $630,000 500
25 395 Reef Condominiums VI0000074 C $630,000 500
($506,371) to be provided by others.
26 385 Cowpet Bay East VI0000108 C Repair Cistern $29,850 300
27 365 UVI St. Thomas VI0000174 C Replace two high-pressure iron pumps with stainless steel. Electrical $24,000 3000
controls.
28 365 UVI St. Thomas VI0000174 C Replace three well-field iron pumps with stainless steel. $16,050 3000
29 365 UVI St. Thomas VI0000174 C Install pressure regulator in main distribution line. $33,500 3000
30 170 Bay Garden Condos VI0000056 C Replace filters, POU-R/O & pumps $145,700 400
31 130 Mahogany Run Golf VI1000305 C Replacing & Rerouting 4" distribution pipe $30,100 4000
32 120 UVI St. Thomas VI0000174 C 450 ft of new 6" water line to south campus and to create loop. $26,450 3000
33 120 VI WAPA St. John VI0000554 C Replace 6" ductile iron pipe w/ 8" C900 PVC pipe $387,010 3000
33 100 Association of St. C. VI0000075 C Replace aging supply lines. $167,283 600
34 90 Cowpet Bay East VI0000108 C Replace aging supply lines $13,400 300
35 55 Good Hope Townhouses VI0000098 C Replace aging concrete roof catchment with galvanized roof $78,000 200


Page -12-










Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002


B. LARGE SYSTEMS PROJECT PRIORITY LIST
Rank Points System Name Location Project Description Project Cost Population
No. Served
1 760 VI WAPA: St Croix VI0000097 Barren Spot well field Rehabilitate #5 well field, and flush. $45,000.00 425
2 750 VI WAPA: St. Thomas VI0000443 St. Thomas Install Chlorine Injection System $25,000.00 29,000
3 700 VI WAPA: St. Croix VI0000097 St. Croix TTHMs Pre-Treatment System $300,000.00 35,000
4 700 VI WAPA: St. Thomas VI0000443 St. Thomas TTHMs Pre-Treatment System $300,000.00 29,000
Project Funding Line for Large PWS $670,000
5 475 VI WAPA: St. Thomas VI0000443 Savan/Vester Gade Abandon and replace old storage tank with a $190,000.00 29,000
Booster Station new tank
Rehabilitation of the exterior of Richmond
6 475 VI WAPA: St. Croix VI0000097 Richmond Plant $517,440.00 35,000
Storage Tank
7 475 VI WAPA: St. Thomas VI0000443 St. Thomas Rehabilitate No. 2 Water Storage Tank $695,000.00 29,000
8 475 VI WAPA: St. Thomas VI0000443 Donoe Construct new 5.0 MG storage tank $2,000,000.00 29,000
9 475 VI WAPA: St. Thomas V0000443 Sarah Hill Abandon and replace old storage tank with a $2,500,000.00 29,000
new tank
10 425 VI WAPA: St. Croix VI0000097 St. Croix Storage Tank Telemetry $60,000.00 35,000
ESSO Service station Replace 900' of 10" cast iron pipes with 18"
11 425 VI WAPA: St. Thomas VI0000443 to Frenchtown C900 PVC pipes to provide better pressure $250,000.00 29,000
to Frenchtown
and replace aging pipes
12 425 VI WAPA: St. Thomas VI0000443 Donoe pump station Upgrade Donoe pump station $350,000.00 29,000
13 420 VI WAPA: St. Thomas VI0000443 East End East End Corrosion Control: Replace $60,000.00 3,000
infrastructure in distribution system
14 405 VI WAPA: St. Croix VI0000097 Mon Bijou Storage Rehabilitate 2.0 MG storage tank $240,000.00 1,500
Tank
15 355 VI WAPA: St. Thomas VI0000443 Vester Gade Pump Rehabilitate booster pump station $45,000.00 1,500
Station
16 180 VI WAPA: St. Croix VI0000097 LoopSionFarmto Install 4,500' of 8" PVC pipe $136,125.00 35,000
Constitution Hill
17 180 VI WAPA: St. Thomas VI0000443 Altona & Welgunst Replace aging 4" cast iron pipes w/6" C900$142,520.00 29,000
PVC pipes
18 180 VI WAPA: St. Thomas VI0000443 Dejongh Gut to VestaInstall 1,500'of 6" C900 PVC pipe $150,000.00 29,000
Gade pump station


Page -13-










Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002


Rank Points System Name Location Project Description Project Cost Population
No. Served

19 180 VI WAPA: St. Thomas V0000443 10" to 18" loop Installation of 2,500' of 10" PVC pipe $206,821.25 29,000
Nisky
Sunny Isle to Ruby &
20 180 VI WAPA: St. Croix V0000097 Sunny Isle to Ruby & Replace 6,500' of aging 10" ductile iron pipe $324,450.00 35,000
Strawberry
21 180 VI WAPA: St. Croix V0000097 oop Strawberry to Install 10,500' of 12" PVC pipe $444,250.00 35,000
Kigshill
22 180 VI WAPA: St. Croix VI0000097 Richmond to Replace 16,000' of aging ductile iron pipes $517,440.00 35,000
Princesse & St. John with 10" C900 PVC pipe
Replace 17,500' of aging ductile iron pipes ,3. 3,0
23 180 VI WAPA: St. Croix VI0000097 Christiansted Town i i i i $529,375.00 35,000
with 6" PVC pipe
24 180 VI WAPA: St. Thomas VI0000443 Anna's Fancy Rehab 6" distribution main $550,000.00 29,000
25 180 VI WAPA: St. Croix VI0000097 Dolby Hill to Grove Replace 30,000' of aging 12" ductile iron $70000.00 35,000
VIPlaceWAPA: St. Croix VI0000097 $1,070,000.00 35,000
Place pipe
26 180 VI WAPA: St. Croix VI0000097 Contentmentto Replace 30,000'of aging 10" ductile iron $1,284,000.00 35,000
Kingshill pipe
Sarah Hill to
27 180 VI WAPA: St. Thomas VI0000443 rhto Rehabilitation of 24" transmission main $1,280,655.00 29,000
Frenchtown
28 180 VI WAPA: St. Croix VI0000097 Kingshill to Stony Replace 38,000' of aging 10" ductile iron26,400.00 35,000
Groundpi28 180 VIpeWAPA: St. Croix VI0000097 $1,626,400.00 35,000
Ground pipe
Frenchtown to Fort
29 180 VI WAPA: St. Thomas VI0000443 Frenchtownto Fort Rehab 4,000' of 24" Transmission Main $1,600,000.00 29,000
Christian
Replace aging infrastructure in distribution
30 130 VI WAPA: St. Thomas VI0000443 Charlotte Amalie Replace aging infstcture in distrib$550,000.00 5,000
system
31 130 VI WAPA / HPR: St. V0000443 Altona Replace aging infrastructure in distribution $386500.00 1,000
Thomas system
32 120 VI WAPA: St. Thomas VI0000443 East End Replace aging infstcture in distribution $750,000.00 2,000
system
33 i->n rReplace aging infrastructure in distribution
33 120 VI WAPA: St. Thomas VI0000443 Hospital Ground Replace aging infstcture in distribution $860,000.00 2,000
system
Replace aging infrastructure in distribution
34 120 VI WAPA: St. Thomas VI0000443 Lindbergh Bay Replace860,000.00 2,000
system
35 110 VI WAPA: St. Thomas VI0000443 Palm Strade Replace aging infrstrcture in distribution $190,000.00 1,000
system

Page -14-











Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002


Page -15-


Rank Points System Name Location Project Description Project Cost Population
No. Served

36 110 VI WAPA: St. Croix VI0000097 Frederiksted Replace aging infrastructure in distribution $825,000.00 1,900
system
37 100 VI WAPA: St.Croix V0000097 Estate Profit/Clifton Replace aging infrastructure in distribution $230,000.00 775
37 100 VI WAPA: St. Croix VI0000097 $230,000.00 775
Hill system
38 90 VI WAPA: St. Croix VI0000097 Estate Whim Replace aging infrastructure in distribution210
system _______








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002
VIII. PROJECT PLANNING

The design phase of the project turns the conceptual project proposed in the pre-application into concrete
plans and specifications. The activities undertaken during the design phase can have a substantial impact on
cost of the project when bids are taken.

A. DESIGN AND ADMINISTRATIVE CONSIDERATIONS

Each public water system that has a proposed capital improvement project on the Project Priority List must
submit a Grant Application Package to DPNR/DEP before the funding of any project can proceed. The
technical and engineering plans, specifications, and cost estimates must be included in the Grant
Application Package for approval by DPNR/DEP. The preparation of the plans, specifications, and cost
estimates included in the Engineering Report must be well organized and complete in order to obtain the
lowest, realistic bid possible.

B. TECHNICAL REVIEW

The Engineering Report is the document that will demonstrate the need for a proposed project. The
information contained in this document provides the basis for the design and construction of the capital
improvement project. A licensed plumber or a professional engineer, depending on the scope of the project,
must prepare the Engineering report. Project review will be based heavily on this document. All technical
and engineering plans, drawings, and specifications, and cost lists must be detailed and specific.

The Engineering Report must include the following:
S Description of the project;
* Objective of the project or the problem which the project will solve;
* Design plans and engineering drawings;
S Equipment and materials specifications;
* Environmental Review as necessary to evaluate short and long term impacts of capital
S Improvement projects and related construction;
S Construction schedule with a chronological list of construction tasks and deadlines;
* Materials lists with costs;
S Cost schedule, including design costs, construction costs, labor costs, and equipment costs.

C. ADDENDA AND REVISED PLANS

Changes are often made to design plans and specifications between the time they are approved and the
construction is complete. Minor changes which occur and are few in number are usually incorporated through
the issuance of addenda. If a major change occurs, the revised documents must be submitted to DPNR/DEP
prior to the advertisement for bids.

IX. CONSTRUCTION OVERSIGHT

The construction phase of the project is very important from a managerial standpoint. The ability of project
to achieve its design performance for the estimated design life is dependant upon proper construction
techniques. Costs can be increased during construction due to change orders. Without proper inspection and
construction management, the public water system may face increased capital costs and increased operation
and maintenance costs during the facilities useful life. Adequate construction oversight of the capital
improvement project must be planned for and maintained.


Page -16-








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002
A. INCREASES AND DECREASES IN COSTS DUE TO BIDS

Bids that are significantly lower or higher than estimated must be carefully analyzed. The plans and
specifications should be reviewed to ensure that all work in the pre-bid cost estimate is included. The
experience of the contractor should also be assessed to ensure that the scope of work is clearly understood.

B. CHANGE ORDERS

A change order is a written authorization by the grantee, approved by DPNR/DEP, to the construction
contractor for an addition, deletion, or revision in the scope of work of the project after execution of the
construction contract. The grantee is responsible for determining whether a proposed change is appropriate.
Documentation of the proposed change in scope of work and reasons for the change must be submitted to
DPNR/DEP prior to the approval of any change orders. The grantee must carefully consider any change order
for time extensions to ensure that the construction schedule is not compromised and to ensure that any
enforcement action against the grantee will still be met.

C. CONSTRUCTION MONITORING

Inspections will be conducted by DPNR/DEP throughout the construction of the project to ensure that the
construction is in accordance with the contract. These inspections will check for compliance with the plans
and specifications, as well as with the contract schedule. Payment of grant funds to the grantee by
DPNR/DEP will be contingent upon compliance with the project contract. If it is found through these
inspection that modifications have been made to the agreed upon plans and specifications without prior
approval of DPNR/DEP, these modifications will not be funded by the Capital Improvements Grant. Upon
completion of the construction, a final inspection will be conducted. Any deficiencies noted during the final
inspection must be resolved prior to release of the final grant award.

The following construction oversight process must be adhered to for any CIG project to receive grant awards.
1. A copy of the Construction Contract with the bid documents will be submitted to
DPNR/DEP.
2. DPNR/DEP will attend all contract negotiation meetings.
3. No contract shall be awarded without the approval of DPNR/DEP.
4. Once a bid is awarded, a pre-construction meeting is to take place before any construction
is started. The grantee, DPNR/DEP and the construction contractor are to be present at this
meeting.
5. Inspections must be performed by DPNR/DEP priorto any grant disbursements. Inspections
for the purpose of making grant payments must be scheduled by the grantee. Documentation
of materials procurement may be required at these inspections.
6. Periodic inspections, in or out of schedule, may take place at the discretion of DPNR/DEP.
7. DPNR/DEP will attend all or any construction progress meetings, at their discretion. The
grantee must keep DPNR/DEP apprized of when construction progress meetings are
scheduled.
8. DPNR/DEP will review, evaluate and recommend the approval of all change orders for
capital improvement projects.
9. DPNR/DEP will review all documents related to the contract closeout. The Operation and
Maintenance (O & M) Manual is considered a closeout document and no project will be
given final payment without the submittal of an O & M Manual.
10. DPNR /DEP will perform a final project construction inspection in conjunction with the
grantee to ensure compliance with the design plans and specifications. Evaluation for start-
up for the facility will take place at the final inspection.


Page -17-








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002
D. OPERATION AND MAINTENANCE MANUAL

Proper operation and maintenance of a drinking water facility is essential to ensure a continuing supply of
safe drinking water. In order to achieve the maximum design life of the drinking water system and its
equipment, adequate maintenance and correct operation of the system are also necessary. Therefore, an
Operation and Maintenance (O & M) Manual is required for all Capital Improvement Grants. Any project
that does not have an O & M Manual will not be considered complete and will therefore not receive final
payment for the project. The O & M Manual may be submitted to DPNR/DEP for review at any time before
completion of the construction phase of the Capital Improvement Project.


Page -18-








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002
APPENDIX A: "CALL FOR PROJECTS" LETTER




DATE


RE: Virgin Islands Drinking Water Capital Improvement Grant Program.


Dear Public Water System:

The federal Safe Drinking Water Act (SDWA) Amendments of 1996 established a funding program called
the Drinking Water State Revolving Fund (DWSRF). The SRF allows the USEPA to award Federal grants
to States and Territories to fund drinking water capital improvement projects, which will facilitate compliance
with the National Primary Drinking Water Standards or furtherthe health protection objectives of the SDWA.

The SDWA Amendments of 1996 provides authorization for the Territories to award grants directly to public
water systems for the construction of drinking water capital improvement projects. The Virgin Islands
Drinking Water Capital Improvement Grants (VIDWCIG) program, under the Department of Planning and
Natural Resources, Division of Environmental Protection, will be awarding these grants to eligible public
water systems. Eligible public water systems and projects are described below.

I am issuing a "call for projects" to owners, managers, and operators of public water systems who are
interested in participating in the Drinking Water State Revolving Fund / Capital Improvement Grants (CIG)
program. The attached Pre-application must be submitted to the VIDWCIG program by XXXX for
consideration for inclusion in the 20XX Intended Use Plan (IUP). The pre-application must be submitted to
the Drinking Water Capital Improvement Grants Program, DPNR, Division of Environmental Protection, 45
Mars Hill, Frederiksted, St. Croix, 00840 or Drinking Water Capital Improvement Grants Program, DPNR,
Division of Environmental Protection, Cyril E. King Airport Terminal Building, St. Thomas, V.I. 00802. All
information requested in the pre-application must be filled out or the application will be considered invalid
and will not be considered for inclusion in the IUP. VIDWCIG program will be strictly adhering to the
XXXX deadline, NO LATE PRE-APPLICATIONS WILL BE CONSIDERED for inclusion in the 20XX
IUP.

The following information will assist you with the requirements for eligibility for receiving a drinking water
capital improvement grant.

Eligible Public Water Systems
S You must be a public water system (PWS) as defined under Virgin Islands Code, Title 19 Chapter
51. 1302;
S All community PWSs as defined under V.I. R. &R. 1303-12;
* Only non-profit non-community, PWSs as defined under V.I. R. &R. 1303-12.

All systems, which are not community systems, will be required to show proof of their nonprofit status per
documentation from the Virgin Islands Bureau of Internal Revenue.

Ineligible Public Water Systems
S For profit non-community PWSs are not eligible to receive Capital Improvement Grants;


Page A-1








Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002
Federally owned PWSs are not eligible to receive Capital Improvement Grants;

PWSs in significant non-compliance are not eligible to receive Capital Improvement Grants unless
the project will ensure full compliance with the SDWA.
Systems that do not have technical, managerial, or financial capabilities are not eligible to receive
Capital Improvement Grants.

Eligible Capital Improvement Projects and Grant Expenditures
Only projects, which will facilitate compliance with the National Primary Drinking Water Standards or
further health protection objectives of the SDWA, are eligible for grant funding through the VIDWCIG
program. Projects to address existing drinking water standards that have been exceeded or to prevent future
violations of drinking water regulations are eligible types of project funding. Examples of eligible projects
include:
S Replace aging infrastructure;
S Rehabilitate or develop drinking water sources to replace contaminated sources;
* Rehabilitate storage facilities to prevent microbial contamination from entering the water system;
S Existing treatment facilities or equipment that need to be rehabilitated, repaired, or replaced to ensure
compliance with the SDWA.
* Install or upgrade transmission or distribution lines to prevent contamination caused by leaks and
breaks in pipes or to improve water pressure to safe levels;
* Consolidate existing water systems or connect homes currently on a private water source to an
existing PWS only if the current water source is contaminated or otherwise experiencing a public
health problem;
* Planning, and engineering costs associated with the design of a capital improvement project.

Ineligible Capital Improvement Projects and Grant Expenditures
* Routine operating and maintenance expenses (Operating and maintenance activities that are expected
to be performed on a regular basis such as cistern cleaning, pump repairs and maintenance, filter
changes, etc. are not eligible for funding.);
S Projects for future growth of the system;
S Water quality monitoring;
* Fire protection projects.

If you are unsure as to your system's eligibility status or if you are unsure about whether a project you would
like to submit for funding is eligible, you may contact Michael B. Diaz at 773-1082 ext.2283 for technical
assistance. Additional information about the Drinking Water Capital Improvement Grants program is
available through the Internet at www.dpnr.gov.vi/dep-604.

Sincerely,



Dean C. Plaskett, Esq.
Commissioner


Page A-2










Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002
APPENDIX B:GRANT ELIGIBILITY


Eligible Systems and Type of Projects to be Funded

A. Eligible Systems

Drinking water systems that are eligible for project funding are community water systems (CWS), both
privately and publicly owned; and non-profit non-community water systems (NCWS). Federally owned
systems are not eligible to receive VICIG assistance.

B. Eligible Projects

Drinking water capital improvementproject or water supplyproject means the planning, design, construction,
improvement, or acquisition of facilities, equipment, or buildings for the supply, control, treatment,
distribution, and transport of drinking water and the testing and monitoring to ensure the integrity and quality
of such water supply project intended to improve drinking water facilities including achievement of
compliance with the Federal SDWA and Territory drinking water quality goals and standards.

Projects eligible for DWCIG financing include design and construction to upgrade or replace infrastructure,
address exceedances of Federal or Territory health standards, prevent future violations of drinking water
standards, and provide the public with safe drinking water. Examples of such projects include:

Rehabilitation or development of drinking water sources (excluding reservoirs, dams, dam
rehabilitation and water rights) to replace contaminated water sources;

Installation or upgrading of treatment facilities if the project will improve the quality of drinking
water to comply with primary or secondary drinking water standards;

Installation or upgrading of storage facilities, including finished water reservoirs, to prevent
microbiological contaminants from entering the water system

Installation or replacement of transmission and distribution pipes to prevent contamination caused
by leaks or breaks; and

Replacement of aging infrastructure if the replacement is needed to maintain compliance or further
the health protection goals of the SDWA

The DWCIG program will provide assistance to an eligible public water system to consolidate with other
public water systems) only if the consolidation will ensure that the system returns to and maintains
compliance with SDWA requirements, and the owner or operator of the water system agrees to undertake
feasible and appropriate changes in operations necessary to ensure the system has the technical, managerial
and financial capability to comply with the SDWA requirements.


Page B-1










Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002
C. Projects not Eligible for Funding

The DWCIG cannot provide funding assistance for the following projects and activities:

* Dams, or rehabilitation of dams;

S Water rights, except if the water rights are owned by a system that is being purchased through
consolidation as part of a capacity development strategy;

* Reservoirs, except for finished water reservoirs and those reservoirs that are part of the treatment
process and are located on the property where the treatment facility is located;

* Laboratory fees for monitoring;

S Operation and maintenance expenses;

S Projects needed mainly for fire protection;

* Projects for systems that lack adequate technical, managerial and financial capability, unless funding
will ensure TFM;

* Projects for systems in significant noncompliance, unless funding will ensure compliance;

S Projects primarily intended to serve future growth.


Page B-2






Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002
APPENDIX C: PRIORITY RANKING POINTS SYSTEM

The purpose of the priority ranking system is to establish a list of eligible projects to be funded in
a manner that the most serious risks to public health are given the highest priority. DPNR has
established that the highest priority be given to acute public health risks, particularly those related
to microbiological organisms. The next priority is given to situations that pose chronic and longer
term risk to consumers, such as chemical contamination (i.e. lead and copper). The scoring criteria
also considers issues that are related to infrastructure upgrading or replacement. Consistent with
these priorities, the numerical scores in the priority ranking system are based on the following
criteria.

All eligible projects will be rated with respect to four categories to determine their ranking and
selection for funding. These categories are discussed in Section VI-D of this IUP.

Compliance with SDWA Health Standards Up to 500 points will be given to projects that
address public health issues. Points will be awarded based on the seriousness of the health
risk. The highest points are given to projects which will bring a system into compliance with
monitoring requirements which address acute health hazards. Projects will receive points
for only the highest applicable classification as illustrated in the table below:

ITEM PROJECT
SCORE

Repair source of bacteriological contamination to bring system into compliance 500

Repair source of chemical contamination to bring system into compliance 450

Prevent bacteriological contamination to ensure compliance 400

Prevent or reduce chemical contamination to ensure compliance 350

Corrosion control (Lead and copper) 300

Reduce turbidity levels to meet SDWA standards 250


Infrastructure Improvements for Public Water Systems up to 400 points will be given to
project that address system deficiencies. Projects will receive points for only the highest
applicable classification as illustrated in the table below:
ITEM PROJECT
SCORE

Rehabilitate old or develop new source to replace contaminated sources 400

Install, upgrade or rehabilitate storage facilities 375

Cross contamination prevention/backflow prevention 350

Ensure proper flow pressure to distribution system 325

Provide adequate storage capacity 275

Develop rain catchment area for increase water collection capability 275

Install new disinfection/treatment system 250

Upgrade existing disinfection/treatment system 200


Page C-1







Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002


ITEM PROJECT
SCORE

Introduce new R/O treatment unit 175

Rehabilitate old R/O treatment unit (not for routine replacement of membranes) 125

Repair leaks 100

Improve distribution system 80

Repair or replace aging gutters and downspouts 75

Introduce new filtration system 60

Improve existing filtration system 50

Repair catchment surface and re-coat with NSF approved coating 45

Introduce point-of-use treatment units for additional treatment 40


Consolidation or Interconnection of Systems up to 200 points will be given to project that
address this criteria. Projects which consolidate or interconnect systems to ensure the consistent
production and distribution of water of adequate drinking quality is considered in the priority system.
Projects will receive points for only the highest applicable classification as illustrated in the
table below:

ITEM PROJECT
SCORE

Introduce new public water system or distribution line extensions to serve areas 200
with water quality problems.

Interconnect water system with more reliable source 100


Population Served Projects that serve a larger number of people will receive more ranking points
because they will benefit more people and further the health protection objectives more. Projects
will receive between 10 and 100 points based on population served by the system as
illustrated in the table below:
POPULATION SERVED PROJECT SCORE
25 to 499 10
500 to 999 20
1000 to 1999 30
2000 to 3999 40
4000 to 5999 50
6000 to 7499 60
7500 to 9999 85
10,000 and up 100

A project's ranking will be the sum of all points received in each category. However, before
any final funding is granted, each project will be carefully evaluated to ensure that project
addresses all issues for which points are scored.


Page C-2







Virgin Islands Capital Improvement Grant Program
Intended Use Plan FY2002

Appendix D: REPORT ON PUBLIC MEETINGS

Two public meetings on the FY02 IUP were held during a 30-day public comment period
(August 21 through September 19, 2003). The first meeting was held on September 16, 2003 at
the Gertrude's Restaurant on St. Croix. The second was held at the Palms Court Harbour View
Hotel on St. Thomas on September 17, 2003.

Following are the public comments on this IUP and DPNR's responses to these comments:


Public Comments DPNR's Response

The design allowance chart should reflect locally available More information on local cost for the design of
data for design costs as a percentage of construction, projects as compared to the mainland is needed to
determine if the design allowance chart should be
changed to meet local situations.

Since the design cost allowance is based on percentage of Systems are allotted only the amount specified in the
construction cost, the final design allowance reimbursement pre-applications. The design allowance is determined
should be based on the actual construction cost rather than from that amount. DPNR will allow systems to
the construction cost estimate. include in future pre-applications a 15% contingency
plan to address potential cost increases over time.

DPNR should disburse grant proceeds to pay for material DPNR will disburse grant proceeds to pay for
invoices. Thereby allowing for shipment of material to the material invoices only, without the necessary proof
job site. of inccurred cost. Systems must provide an invoice,
to DPNR, which reflects the cost for materials as
provided by the vendor.

[For several projects DPNR reduced the grant allotment DPNR will allow systems to include in future pre-
because funding for point-of-use (POU) devices were applications a 15% contingency plan to address
rejected in cases when the system was also installing a potential cost increases over time.
centralized treatment unit(s).] Public comments regarding
this issue was : "Leave the cost for POU devices in
allotments because between the time pre-application
estimates for construction are submitted and actual
construction cost is incurred, prices may increase.

Systems who invested ample amount [on existing facilities] As stated in the IUP, priority is based on the
should be prioritized, requirements of the Safe Drinking Water Act.

A percentage of the grant should be provided to system for Systems should have the financial resources for the
the start up of construction. Subsequent grant disbursement start up of construction. This demonstrates financial
will be made based on incurred cost. capacity. Efficient planning and timely submission of
invoices should result in quick grant disbursements.


Page D-1






Virgin Islands Department of Planning & Natural Resources Drinking Water Capital Improvements Grant
Division of Environmental Protection Pre-Application
Public Water System Supervision Program February 2004


APPENDIX E: VIRGIN ISLANDS CAPITAL IMPROVEMENT GRANT PRE-APPLICATION FORM

DPNR Use only Project Tracking No.
Project Name
PWS ID # Tax ID #
Estimated Cost Population Served

Pre-Application for
V.I. Drinking Water Capital Improvements Grant (VIDWCIG)
Please fill out all information requested in full. Any pre-applications that are not filled out completely will not be
considered for a drinking water capital improvements grant.

CONTACT INFORMATION Date Prepared: / /


Name of Public Water System Contact Person (If different from manager)


Public Water System I.D. number Title


Owner / Manager's name Telephone number and Fax number


Telephone Number and Fax number Name of Consulting Engineering Co.


Physical Address


Mailing Address


Island and Zip Code


Organization's Tax I.D. Number


BACKGROUND INFORMATION:
Type of Public Water System:
Tax Status of System:
Governmental Status:
Age of Public Water System:
Population Served by Public Water System:


(a) Community
(a) For Profit
(a) V.I. Governm


Physical Address


Mailing Address


Island and Zip Code


Design Engineers


Telephone Number and Fax Number


Company's Tax I.D. Number


(b) Non-Community
(b) Not for Profit (attach proof of non-profit status)
ent (b) Federal


Page E-1






Virgin Islands Department of Planning & Natural Resources Drinking Water Capital Improvements Grant
Division of Environmental Protection Pre-Application
Public Water System Supervision Program February 2004

CAPACITY DEVELOPMENT ASSESSMENT

Water system capacity is the ability to plan for, achieve, and maintain compliance with applicable drinking water to the
public. Before a drinking water capital improvements grant can be awarded to a public water system, the system must
demonstrate that it has adequate technical, financial, and managerial capabilities (TFM). Public water systems that do not
have adequate TFM are not eligible to be funded unless the public water system agrees to make appropriate changes in
operation (management, rate structure, maintenance, consolidation, alternative supplies, etc.) that will ensure the long-
term capacity of the system. Your answers to the following questions will serve to demonstrate your system's capacity for
determining eligibility for receiving a Drinking Water Capital Improvements Grant.


TECHNICAL CAPACITY

Technical capacity is the physical and operational ability of a water system to deliver safe drinking water and to meet
SDWA requirements. Technical capacity refers to the physical infrastructure of the water system, including the adequacy
of source water and the adequacy of treatment, storage, and distribution infrastructure. It also refers to the ability of
system personnel to adequately operate and maintain the system and to otherwise implement requisite technical
knowledge.

What is the source of water for the public water system?



Is the source of water reliable, generally good quality and adequately protected?


Can the system provide water that meets SDWA standards? Yes No

What is the condition of the system's infrastructure, including the following:
Wells(s) or sources of water intakes?
Treatment unit(s)?
Storage facility(ies)?
Distribution system?

What is the infrastructure's life expectancy?

Does the system have a capital improvement plan? Yes No

If yes, please explain it or attach a copy of it to this form.




Does the system have an effective operation and maintenance program? Please describe it.


Page E-2





Virgin Islands Department of Planning & Natural Resources
Division of Environmental Protection
Public Water System Supervision Program


Drinking Water Capital Improvements Grant
Pre-Application
February 2004


Does the system's operators) have documented training and knowledge of drinking water treatment technology and the
operation of drinking water systems? Please describe training.



Does the operators) have sufficient knowledge of applicable drinking water standards? Please describe education and
experience.


Can the operators) effectively implement this technical knowledge?


FINANCIAL CAPACITY

Financial capacity is a water system's ability to acquire and manage sufficient financial resources to allow the system to
achieve and maintain compliance with the SDWA requirements.

Do revenues cover the cost of water and costs to operate and maintain the system in compliance with SDWA standards?



How does the system manage its revenues effectively? Please explain





Is the system financially healthy? Does it have access to capital through public or private sources?



Are adequate books and records maintained? Are appropriate budgeting, accounting, and financial planning methods
used? What methods are
used?



Are capital improvements to the system included in the financial planning? Please describe.


Page E-3





Virgin Islands Department of Planning & Natural Resources
Division of Environmental Protection
Public Water System Supervision Program


Drinking Water Capital Improvements Grant
Pre-Application
February 2004


MANAGERIAL CAPACITY

Managerial capacity is the ability of a water system to conduct its affairs in a manner enabling the system to achieve and
maintain compliance with the SDWA requirements. Managerial capacity refers to the system's institutional and
administrative capabilities.

Are the system owners clearly identified? Can they be held accountable for the system? Please list them.





Is the system operators) and managers) clearly identified? Please list them.





Is the system properly organized and staffed? Please describe organization and staffing positions.





Do personnel understand the management aspects of regulatory requirements and system operations?



Do personnel have adequate expertise or training to manage water system operations? Describe expertise and
training
below.


Page E-4





Virgin Islands Department of Planning & Natural Resources
Division of Environmental Protection
Public Water System Supervision Program


Drinking Water Capital Improvements Grant
Pre-Application
February 2004


PROJECT INFORMATION:
Name of Water System:
Location of Project:
Project Description (ifnecessary, continue description on a new page and attach it to the pre-application):






Population Served by Water System: Population Served by Project:
How does this project facilitate compliance with the National Primary Drinking Water Standards or further health
protection objectives of the SDWA (if necessary, continue explanation on a new page and attach it to the pre-
application):




Are there other sources of funds anticipated for this project: Yes or No.

If yes, can they be used in conjunction with a Capital Improvements Grant: Yes or No.
Please attach a separate page, which provides information on the source of funding, type of funding, amount of funding,
and letter of confirmation.


PROJECT COST ESTIMATE:
(If necessary, continue cost schedule on a new page and attach it to the pre-application)


Materials


Construction


Equipment


Other


Materials Costs


Construction Costs


Equipment Costs


Other Expenses


15% Contingency


Project Costs: --------- -----------------------------------------------------------
Design Allowance (see table below): -------------------------------------------- $
Sub-Total of Amount to Finance: --------- --------------------------- ----------------- $

Other Funding Sources (subtract this amount): -- ---------------------------------------------- $

Total Amount to Finance (Grant Amount): ---------------------- ------------------ $

ACTIVITY DATES:
Duration of engineering / design preparation (in weeks):
When will all technical submittals be completed? Date: / /
Duration of construction (in weeks):


Page E-5





Virgin Islands Department of Planning & Natural Resources
Division of Environmental Protection
Public Water System Supervision Program


Drinking Water Capital Improvements Grant
Pre-Application
February 2004


MAXIMUM DESIGN ALLOWANCE


Allowance for Planning and Design as a
Project Cost Percentage of Project Cost

Up to $5,000 14% or up to $650
$5,001 to $20, 000 13% or up to $2,400
$20,001 to $35,000 12% or up to $3,850
$35,001 to $50,000 1l%or up to $5,125
$50,001 to $75,000 10.25% or up to $7,313
$75,001 to $100,000 9.75% or up to $9,250
$100,001 to $150,000 9.25% or up to $13,200
$150,001 to $200,000 8.8% or up to $16,800
$200,001 to $300,000 8.4% or up to $24,450
$300,001 to $400,000 8.15% or up to $31,200
$400,001 to $500,000 7.8%or up to $37,500
$500,001 to $750,000 7.5%or up to $54,375
$750,001 to $1,000,000 7.25% or up to $70,000
Over $1,000,000 7%


Page E-6




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