1. Establishing Budgets & Implementation of Water and Sewer Projects
History with Victor CIP in early-1990s

2. Thank You!!!!
                           
Also note preparation of LETTERS OF TRANSMITTAL to local State legislators!
VILLAGE OF BARKER
Mayor Cheryl Parr
Village Board Members
Kathie Smith
Maggie Cole
Mark Remington
Village of Brockport
Mayor Mort Wexler
Harry Donahue
Leslie Ann Morelli
Rick Herzog
Dave Moore

6. Who was the U.S. President in the last year the Buffalo Bills Played in the Super Bowl?

7. How much does a pound of beer weigh?

8. Name the Tallest High Peak in the Adirondacks!

9. Establishing Budgets Looked at differently based upon phase of project
Are you trying to get a “magnitude of costs”?
When is the improvement likely to take place?
What restrictions will be placed on Project?
What background information is available?

10. Different Phases = Different Costs
Concept Phase:
You have an idea with limited information.
Study and Report Phase:
Background information & design criteria established.
Preliminary Design Phase:
Concepts are being formulated.
Final Design Phase:
Plans and Specs are done, now you really know what is included.

11. Variables in Cost Estimates
Level of Project Difficulty.
Funding Agency Requirements.
What is the retainage amount?
What is the Warranty Period (1 or 2 years)?
What is the Project Schedule?
Time of year that the Project is starting.
Number of days to complete the work.
What are the liquidated Damages?

12. Variables in Cost Estimates
Workload of Contractors in the area?
Geographic area of the Project.
Engineers relationship with Contractors?
Availability of materials, supplies, equipment and labor force?
Economic climate (oil & steel prices).
Single Prime Contract or Multiple Prime?

13. Wicks Law
Section 135 of NYS Finance Law requires multiple prime contracts where the cost exceeds:
$3 Million in Bronx, Kings, New York, Queens and Richmond Counties.
$1.5 Million in Nassau, Suffolk and Westchester Counties.
$500,000 in all other Counties

14. Multiple Prime Contracts
General Construction
Plumbing
Heating, Ventilation & Air Conditioning (HVAC)
Electrical

15. Methods for Obtaining Cost Estimating Information
Recent Bid Tabulations

17. Methods for Obtaining Cost Estimating Information
R.S. Means (
Avalon Plan Room (
Construction Data Service (
Dodge Reports (
Manufacturer’s Representatives
Suppliers & Contractors

18. Are you having fun yet?

20. State and Federal Agencies Funding Opportunities
USDA Rural Development
Community Development Block Grant (CDBG)
NYS EFC Drinking Water State Revolving Fund (DWSRF)
NYS EFC Clean Water State Revolving Fund (CWSRF)
NYS Intermunicipal Infrastructure Grants (IMG)
NYS Water Infrastructure Improvement Act (WIIA)
NYS Water Quality Improvement Program (WQIP)

21. Other Funding Opportunities
State and Federal Representatives
State Senators and Assemblymen
Congress and US Senators
Municipal Bond Market
Within your existing Budgets

22. How are Projects Paid Back?

23. Project Payback Methods
Equivalent Dwelling Units (EDU’s)
Assessed Valuation Method (AV)
Water/Sewer Usage

24. Equivalent Dwelling Units (EDU’s)
1 EDU = 1 Single Family Home
2 EDU’s = 2 Family Home…… ETC.
1 EDU = 60,000 Gallons Per Year (GPY)
Each Unit pays an Equal Amount

25. Equivalent Dwelling Unit (EDU)
Calculation Example
Total Project Cost = $1,000,000
Interest Rate and Term = 3% for 38 years
Annual Debt Service Cost = $ 44,438
Total EDU’s in Project Area = 100
Cost per EDU = $ 44,438/ 100 EDU’s
Cost per EDU = $ per year

26. Assessed Valuation (AV) Method
Determine Total Assessed Valuation of Project Area
Rate established based upon $1,000 of AV
Each property pays their share based upon their AV

27. Assessed Valuation Calculation Example
Total AV in Project Area = $ 90,000,000
Annual Debt Service Cost = $ 80,000
AV Rate = $80,000 / ($90,000,000/$1,000)
AV Rate = $0.89/ $1,000 AV
Average AV for a Single Family Home is $100,000
Cost per Year = $0.89/$1,000 AV x $100,000
Cost per Year = $89 per Year

28. Water/Sewer Usage Method
Total Gallons per year produced or treated.
Determine amount of water/sewer sold
(Taking into consideration lost water)
Determination of Rate Based upon Costs.
Annual Cost based upon usage.

29. Water Storage Tank Painting Usage Example
Total Gallons Produced = 75,000,000 per year
Annual Debt Service Cost = $ 42,804
Water Rate = $42,804 /($75,000,000/1,000 Gallons)/0.90
(Assumes 10% water loss)
Water Rate = ($0.63/ 1,000 Gallons)
Average Single Family Home using 60,000 Gallons/Year
Cost per Year = $0.63/1,000 Gallons x 60,000 GPY
Cost per Year = $37.80

30. Thank You!!!!