1. USDA RURAL DEVELOPMENT RURAL UTILITIES PROGRAM Technical Support Staff - State Engineers Marcy Newman, P.E. & John Helgren, P.E. Preliminary Engineering Report Engineering Agreements Construction Documents Construction

2. USDA RURAL DEVELOPMENT RURAL UTILITIES PROGRAM Preliminary Engineering Reports

3. Preliminary Engineering Report -PER- Technical report prepared by Consulting Engineer Submitted for RD Initial Application with Environmental Report (ER) Most important per RD National Office But recognize planning, not design

4. PER Purpose Establishment of need Evaluate Alternatives Cost estimation for project Projection of Operating Budget Inter-related with Entire Funding Process –Strategic Planning –Environmental Report –Underwriting

5. PER Outline Follow RUS Bulletin 1780-2/3 1.General 2.Project Planning Area 3.Existing Facilities 4.Need for Project 5.Alternatives Considered 6.Selection of an Alternative 7.Proposed Project (Recommended Alternative) 8.Conclusions and Recommendations

6. 1. General Introduction Project purpose Project is modest in design, size, and cost Summary

7. 2. Project Planning Area Location of proposed facilities Proposed hook ups (Service Area) (District Map) Population data/growth Location of construction Maps of service area

8. 3. Existing Facilities Describe system/facilities –Current service area, storage, sources, treatment process –Condition/capacity of existing facilities –Finances Extensions and facility replacement.

9. Equivalent Dwelling Units EDUs EDUs match RD information (Form A ) Provide gpd/EDU flow/consumption –Reasonable; standards –Impacts of large, commercial or industrial users –Breakdown Existing and Future; Average, Max and Peak See underwriting for computation

10. 4. Need for Project Explain why project is necessary and impacts if project not completed. Existing System O&M –Water loss, I/I, inefficient design Growth –Sufficient capacity projected Health or Sanitary need and documentation –Health Department or DEC letter

11. Health and Sanitary Need AN from NO Documentation of Need No longer letter of support 3 Requirements

12. Health and Sanitary, cont. State in letter from DOH/DEC 1.The primary purpose of the project is to upgrade existing facilities or construct new facilities required to meet applicable health or sanitary standards; 2.Which standards will be addressed by the project (cite Codes, NOV not required); 3.The completion of the project will alleviate the health or sanitary problem.

13. Health and Sanitary Documentation Review Submitted with PER or separately. Contact RD Area Specialist with DOH/DEC letter for review by State Engineer If not acceptable, SE discusses with Engineer & DOH/DEC rep. SE will confirm with RD Area Specialist once acceptable.

14. Fire flow-Metering Not a health and sanitary need Provide fire flow but not primary function But if fire flows create health concern, e.g. pressures below sanitary code Facility/project must have metering

15. 5. Alternatives Considered List all potential alternatives –Feasible –No action is not an alternative –Cannot have no other alternatives –Eliminated alternatives infeasible or unpopular?

16. Detailed evaluation of remaining alternatives Description Analysis of advantages and disadvantages Preliminary Cost Estimate (can be rough estimate, not detailed cost estimate) –Construction and Non-construction Capital Cost –Projected Operations and Maintenance Cost (O&M) –Design Criteria, Environmental Impacts, Pros/Cons (an infeasible alternative does not need LCC analysis in next section)

17. 6. Selection of an Alternative Identify chosen alternative(s) Justify reasons –Construction and O&M costs priority –lowest life cycle cost

18. Construction Cost Estimates Preliminary Design/Layout - Location of project/services within municipality All treatment components considered? Cost estimates impact: –engineering fees, admin costs –underwriting Seasonal issues –construction period

19. O&M Costs/Operator Requirements O&M responsibility Alternative within capabilities of applicant –Operator requirements –Access to maintenance sources Best possible O&M cost estimates –Affects life cycle cost estimates. –Operating costs – energy, laboratory –O&M values vary for each alternative

20. Analysis for Alternative Selection Open and Free Selection of Materials/Alternatives –Pipe or Tank Evaluate in PER vs. bid alternates

21. Life Cycle Cost Analysis LCA = Capital + O&M – Salvage Present Worth: P = A{[(1+i) N -1]  [i(1+i) N ]} –P is present worth and A is annual O&M –i is discount rate (use “real” discount rate from OMB A-94, exh. C) –N is planning period

22. 7. Proposed Project (Recommended Alternative) Preliminary Design (to some level) Total Project Cost Estimate (detailed, current) –RD Form E – Project Budget –Administration –Engineering –Construction

23. Annualized Cost per EDU Breakdown Annual Operating Budget –Debt Repayments Proposed and Existing Interest on Loans –Cost of Water/Treatment –O&M –Short Lived Assets

24. Short Lived Assets (SLA) reserves to replace/repair components “… useful life significantly less than the repayment period of the loan.” not daily/weekly/monthly O&M type items. three periods: 0-5, 5-10, and 10-15 years. provide in a tabular form or simply list in (PER).

25. Short Lived Asset Examples Years Asset51015 Pumps (years depends on type)xxx Meters Individualxx Master x Tank Painting x Control Valvesxx Disinfection Equipmentxx Computer Equipment/Softwarex Control Equipmentx Gauges x Transmitters x Sensors x Power &/or Specialty Equipment x Vehiclesx Lab Equipmentx Toolsx Emergency Generator x Tank Cathodic Protection Replacement x Filter Media Replacement x

26. Proposed Project with Alternatives Include alternatives which lack funds Itemize/prioritize Construction or operation items Bid as additive alternatives In PER, no question of funding as “project scope” at later time.

27. 8. Conclusions and Recommendations Summarize proposed plan of action Recommendations statement Include recommended alternatives for request of remaining funds at project close

28. RD Review of PER To Area office with Initial Application 6 copies of PER Area Specialist forwards to CPD for assignment to SE Hardcopy; (electronic in addition ok)

29. SE Review of a PER Review existing facilities and need for project RUS Guide 1780-2/3 Elements Ensure analysis of alternatives Preliminary design calculations and assumptions Selection of Alternative Costs

30. SE Review of a PER, cont. Evaluate proposed project Review consultant’s recommendations Site visit possible

31. Written Comments PER Review Letter to AS, copy PE –Missing/needed info – may contact PE –Concur Description of All Proposed Alternative(s) Health or Sanitary Need – scoring/interest rate Reasonableness of cost estimates Modesty in size, cost, and design –Log in RD database