CWSRF FY 2010 Annual Report - Water Resources Board - State of ...

J.D. STRONGINTERIM EXECUTIVE DIRECTORBRAD HENRYGOVERNORSTATE OF OKLAHOMAWATER RESOURCES BOARDServing as Oklahoma’s water agency for more than 50 years, the OklahomaWater Resources Board (OWRB) has been instrumental in creatinga higher quality of life for Oklahomans by providing more affordableinfrastructure financing, improved water quality, and enhanced access towater. The OWRB and its partners are in the final stages of the updateof Oklahoma’s Comprehensive Water Plan, which will result in accurateand timely water-related data, intensive studies of available water andfuture needs, as well as a defensible permitting process that recognizesboth the inevitability of drought and the need for water conservation.From a broader viewpoint, the OWRB continues to expand the natureand magnitude of its water management projects while embracing newand innovative technologies. At the same time, the agency strives toidentify common objectives of our state, federal and local partners, thusproviding Oklahoma citizens with maximum results at minimum cost.As Oklahoma works to address our $1.2 billion gap in wastewater and$4.1 billion gap in drinking water infrastructure needs, our FinancialAssistance Division plays an important role in this effort by providingcritical low cost financing to Oklahoma communities and rural waterdistricts.With enthusiasm and confidence, we are striving to create a secure waterfuture for Oklahoma.Sincerely,J.D. StrongInterim Executive Director4

J.D. STRONGINTERIM EXECUTIVE DIRECTORBRAD HENRYGOVERNORContentsThe Financial Assistance Division of the Oklahoma Water Resources Boardis dedicated to assisting communities and rural water districts in maintainingadequate water and wastewater facilities. Since the approval of the first grantin 1983, we have provided approximately 65% of all financing for Oklahoma’swater and wastewater infrastructure needs. To date, we have funded over $2.3billion dollars with our loan and grant programs, which in turn has lead toan interest savings of over $820 million for our communities and rural waterdistricts. With dual goals of maintaining sound financial and environmentalprotection, the Financial Assistance Division is proud of our natural AAAratings on all of our bond issues and our use of innovative methods to meetOklahoma’s infrastructure needs.As we review our accomplishment in FY 2010, we are pleased that the programwas up to the challenge of the American Recovery and Reinvestment Actof 2009 by funding almost three times the average number of infrastructureprojects in a year! More than $62 million in Recovery Act funds were leveragedwith $183.5 million in below market rate loan funds for a total investmentof $242.9 million in Oklahoma water and wastewater infrastructure.As we move into FY 2011, we will continue to service our historic loanswhile funding additional water and wastewater projects, as well as addressingexpanded uses such as green infrastructure projects. We look forward tocontinuing our role in helping Oklahoma build its future!Sincerely,Joe Freeman, ChiefFinancial Assistance DivisionSTATE OF OKLAHOMAWATER RESOURCES BOARDOklahoma’s Comprehensive Water Plan 6Investing In Oklahoma Communities 7Introduction 10Executive Summary 10American Recovery & Reinvestment Act 11Loan Funding Project Activity 16Panhandle Region 18Southwest Region 19Beaver-Cache Region 20Lower Washita Region 22Central Region 24Upper Arkansas Region 30Middle Arkansas Region 34Grand Region 40Eufaula Region 42Lower Arkansas Region 44Loan Adjustments FY 2010 Binding Commitments 46Intended Use Plan Status and Changes 46Goals and Accomplishments 46Fund Financial Management 51State Matching Funds 52Proposed Program Initiatives 52Rule Changes 52Provisions of the Operating Agreementand Grant Conditions 52Environmental Benefit and Performance 56Current Wastewater and Runoff Control Needs 56*Attachments can be found on enclosed CD5

OKLAHOMA’SCOMPREHENSIVEWATER PLANOklahomafaces amyriad of waterchallenges, notthe least of whichis unavoidable drought cycles. If Oklahoma is toreach its potential for economic growth while securingoptimum quality of life for its people, Oklahomacitizens must assume a direct role in shaping policythat guides the management, development, and protectionof water resources.As part of its broad responsibility to enhance thequality of life and general welfare, the state has thespecific obligation to plan for the use of water andnatural resources in a manner that will best serve themany needs of the people of Oklahoma. The OklahomaComprehensive Water Plan (OCWP), the state’slong-range water use and management strategy, wasfirst published in 1980 and updated in 1997. In 2006,the Oklahoma Legislature appropriated funds tothe Oklahoma Water Resources Board for the Plan’ssecond update.13WatershedPlanning RegionsWhile Oklahoma’s current Water Plan, publishedin 1997, provides an indispensable inventory of thestate’s water supplies, projects future needs, andoffers recommendations to deal with impendingwater policy questions, state citizens require a moredetailed strategy to meet the many new challengesposed by increased usage and competition for availablewater supplies. With public opinion and legalobligations in mind, policy makers must achieve abalance between economic development on the onehand and recreational and environmental needs onthe other.The OWRB and its planning partners are updatingand expanding statewide assessments of current andfuture water supply needs through the next 50 yearsand beyond, including inventories of both rural andurban water supplies. Just as important, Oklahoma’swater policy issues are being identified through anunprecedented and extensive public input processinvolving thousands of citizens from across the state.Reliable water supply is dependent upon the infrastructurerequired to deliver it as well as the financingopportunities to build and maintain that infrastructure.As a result, the Water Plan will build uponexisting state and federal funding programs, includingthe OWRB’s Financial Assistance Programs, tobetter understand and meet the growing infrastructureneeds of water providers throughout Oklahoma.The American Recovery and Reinvestment Act of2009, passed by Congress and signed by PresidentObama in February 2009, complemented ongoingWater Plan initiatives by providing an immediate“shot-in-the-arm” for Oklahoma’s water and wastewatersystems. The Act, part of the Administration’sstimulus package to energize the nation’s economyand create jobs, included approximately $62 millionfor “shovel ready” water and wastewater infrastructureprojects in Oklahoma. Specifically, the stimuluspackage appropriated $31 million each for Oklahoma’sClean Water and Drinking Water State RevolvingFund loan programs. Congress also set aside $70million in stimulus funds for USDA Rural Development’sWater and Wastewater Loans and Grants.6 Program Overview Oklahoma Water Resources Board

INVESTING INOKLAHOMACOMMUNITIESQuantifying the Social,Economic and EnvironmentalBenefits of Oklahoma’s ARRAProjectsI. Project DescriptionThe goal of this project was to develop a method toquantify the environmental, social, and economicbenefits of Oklahoma water infrastructure projectsfunded by The American Recovery and ReinvestmentAct of 2009 (ARRA). The OWRB sought away to convey the significant contributions of theARRA investment to community decision makers,state leaders, and Oklahoma citizens. It did sothrough a partnership between the OWRB, the U.S.Environmental Protection Agency, and NorthbridgeEnvironmental Management Consultants,ARRA provided $31.6 million for Oklahoma waterquality projects through the Clean Water StateRevolving Fund (CWSRF). As the managing entityfor the Oklahoma CWSRF, the OWRB ensured thatevery dollar of Recovery Act funds was committedto projects that provided the greatest benefit tothe health of Oklahoma’s water bodies and to theeconomic vitality of its communities.Financial Assistance DivisionARRA provided $31.6 M for Oklahoma WaterQuality Projects through CWSRFCWSRF has operated in Oklahoma successfully fortwenty years, providing more than $620 millionin assistance for eligible wastewater infrastructure,nonpoint source and estuary projects. Inrecent years, the OWRB has sought increasinglysophisticated methods—from the CWSRF BenefitsReporting System to the Beneficial Use MonitoringProgram and GIS mapping—to capture theenvironmental and public health benefits of itsprojects. With the Recovery Act’s goal of mitigatingthe effects of the recession through infrastructureinvestment, attention turned to the economic andsocial benefits of the CWSRF program. In additionto their anticipated environmental and publichealth contribution, the projects funded by ARRAare expected to yield significant direct and indirecteconomic, social, and “quality of life” benefits. Thisis achieved through their impact on job creation,aesthetics, recreation, industry, and many otheraspects of Oklahoma life.II. Project MethodologyFirst, to narrow the field of potential benefitmeasures, Northbridge conducted a wide-reachingliterature review to identify studies quantifying themyriad benefits of water infrastructure investment.This review yielded a collection of nineteen economic,environmental and social benefits that haveexhibited links to water infrastructure investment.19 water infrastructure benefits presented todecision makers in 4 communitiesThe nineteen initial benefits were provided todoctoral students in the University of Oklahomasociology department for testing. The studentspresented the benefits to a variety of communitymembers involved in making water infrastructuredecisions. The interviews assessed how the communitymembers prioritized and reacted to thesebenefits and solicited suggestions for additionalbenefits as well.Four communities were selected for the pilot studybased on the following: successful recent completionof a CWSRF ARRA project, type of project,and availability of useful data.• Grove: A small resort and retirement lakecommunity• Norman: Intellectual, politically aware, andenvironmentally active• Piedmont: An upper-middle-classcommunity connected with Oklahoma Citybut with its own separate identity• Ardmore: Both a recreational “lake country”destination and a commercial centerequidistant from Dallas and Oklahoma CityAnnual ReportPROGRAM OVERVIEW7

Investing InOklahomaCommunitiesNorthbridge, with help from the OWRB, segmentedthe benefits into two tiers: benefits that were highpriority for community members, and benefits thatwere low priority for community members but highpriority for OWRB. The final set of benefits was asfollows:Tier I Benefits (High priority to communities)• Impact of infrastructure investment oneconomic growth (number of jobs created,increase in household earnings, and increasedproductivity)• Increase in property values resulting fromenhanced water quality• Increase in property values resulting fromincreased access to water infrastructure• Reduction in health risk from waterborneillnesses as a result of water infrastructureinvestment• Monetary cost of waterborne illnesses avoidedby water infrastructure investment• Value of recreation supported by water qualityprojects• Types of recreation supported by water qualityprojectsTier I Benefits — Benefits of high priority forcommunity decision makers• Energy cost savings from water and energyefficiency upgrades to water infrastructurefacilities• Reduction in greenhouse gas emissions as aresult of water infrastructure facility design• Phosphorus reduction (reduction in algalblooms) resulting from water infrastructureinvestment• Impact of water quality and access toinfrastructure on perceived quality of life• Sustainability of water infrastructure facilities• Interest rate savings as a result using theCWSRF program• Cost of delaying infrastructure improvementsas a result of construction inflationTier II Benefits (High priority to OWRB/Lowpriority to communities)• Population served by water infrastructure/reduction in infrastructure needs• Public valuation of water quality (willingnessto pay for infrastructure improvements)Tier II Benefits —Benefits of high priority for OWRB• Cost savings from advanced wastewatertreatment (avoidance of additional treatmentcosts for polluted sources)• Protection of fish habitat• Maintaining/improving waterbody beneficialusesThe OWRB decided that the remainder of the projectwould focus on the Tier I benefits, with the Tier IIbenefits to be pursued at a later date.As the next step was to pinpoint a specific data elementthat would act as a “Multiplier” for each benefit.To accomplish this Northbridge used Oklahomaspecificdata as much as possible. In many cases, thisrequired performing new research using Oklahomadata sources. For each benefit, simple criteria wereidentified that could describe the features of ARRAfundedinfrastructure projects, such as the total projectcost, the population served, treatment technologyutilized, etc. This project information, combined withthe Multiplier identified for each benefit, generatesan Output Statement describing the specific environmental,social, or economic benefit expected to resultfrom the community’s ARRA-funded project.8 Program Overview Oklahoma Water Resources Board

Identified criteria & found specific multiplier foreach Benefit to generate an Output StatementIII. Suggested UsesIt’s anticipated that the Multipliers and Outputs canbe used to convey the benefits of the OWRB projects.Due to the broad potential the Multipliers andOutputs offer for strategic management, outreach,and communications, the set of benefits will be referredto as the Oklahoma Advantages Assessmentand Scoring for Infrastructure Solutions (OASIS)system. The data can be used in its current form togenerate Output Statements using common spreadsheetsoftware; however, it would have a muchgreater impact as a customized modeling programdesigned for the common user. The software wouldquickly generate the expected benefits of a giveninfrastructure project. Community leaders can thenpresent these benefits to their citizens or legislatorsto illustrate the positive impacts resulting frompast or planned infrastructure investments. Such atool could help communities make well-informeddecisions about the types of projects that will bestserve their short- and long-term goals as well asshow state and federal leaders the benefits of theirfunding contributions.Outputs and Multipliers can be easily identifiedthrough the O.A.S.I.S. SystemThe OWRB managers could use the results fromthe computer model to enhance public relationsefforts and build support for the OWRB financingprograms at both the state and national levels.Highlighting the benefits from projects in reportssuch as the OWRB’s CWSRF annual report wouldhelp convey how the OWRB’s management of theARRA funds resulted in exponential benefits at thecommunity level. Reporting the benefits resultingfrom the OWRB-funded projects may also helpgenerate additional interest in the SRF among entitiesthat have not received the SRF funds but mayhave a future interest in the program. In addition,marketing of the SRF program can be enhanced byusing fact sheets and case studies about the benefitsof particular projects to attract attention from waterproviders that are considering similar options.The OASIS Benefits could also serve to enhancethe OWRB’s priority ranking system and preapplicationpriority list questionnaire. Oklahoma’sIntegrated Priority Ranking System provides a processby which project applications are evaluated andallocated points to determine their priority rankingrelative to other projects that apply for funding.The community impact measures could be usedCommunities can nowpresent Benefits to citizensand other leaders to showpositive impacts frominfrastructure investments.to inform future changes to the ranking system byproviding greater insight into the potential benefitsof different types of projects and their relative importance.For example, as the ARRA Green ProjectReserve requirement becomes a more integral partof the SRF program, benefits such as “GreenhouseGas Emissions Reductions” could inform futurechanges to the ranking system for green projects.The OASIS Benefits have great potential for enhancingthe OWRB’s CWSRF program, includingand beyond the applications described here. UsingOASIS to communicate infrastructure benefits willinstill additional public confidence in the OWRB’smission and help convey the connection betweenwater quality and quality of life.PROGRAM OVERVIEWFinancial Assistance DivisionAnnual Report9

Annual ReportCWSRF AAA bond ratingSAVED OKLAHOMANS$239 MillionCWSRF financed65%Of Oklahoma’s Wastewater needsIntroductionThe Oklahoma Water Resources Board (OWRB)hereby submits the Clean Water State RevolvingFund (CWSRF) Annual Report for Fiscal Year 2010(July 1, 2009 through June 30, 2010). The federalClean Water Act (CWA) requires the OWRB, asprogram administrator, to report annual Fund activities.This report describes sources and uses of funds,environmental performance of construction activities,OWRB’s financial position, as well as how theOWRB met the FY 2010 Intended Use Plan Goalsand Objectives.The OWRB has agreed to submit this report to theEnvironmental Protection Agency (EPA) within 90days following the end of the fiscal year. In addition,Oklahoma Statutes require an annual report besubmitted to the Governor and Legislature within120 days of the end of the state fiscal year. This reportfulfills both requirements.Executive SummarySince 1990, the OWRB’s CWSRF program hasfinanced over $900 million in wastewater infrastructureprojects throughout the State, providing on averageover 65% of Oklahoma’s Wastewater financingneeds. Although enormous progress has been made,much work is still required. An estimated $1.2 billionin need was identified by Oklahoma wastewatersystems and documented in EPA’s 2008 WastewaterNeeds Survey.The CWSRF plays a crucial role in financing thisever-growing need by providing financing at 40% belowmarket interest rate with a standalone AAA bondrating. This provides access to significantly lowerinterest rates than Oklahoma communities are ableto obtain through local debt issuance and has savedOklahomans over $239.1 million.Fiscal Year 2010 saw another outstanding year forwastewater infrastructure rehabilitation and newconstruction. Oklahoma’s CWSRF committed approximately$191 million in loans for projects listedon the FY 2010 Priority Funding List. Twenty-five(25) of the FY 2010 binding commitments receivedapproximately $24 million in additional subsidizationthrough the American Recovery and ReinvestmentActOver $147.8 million was available for the CWSRFProgram with major sources being Series 2004revenue bond proceeds, federal grant funds, loanrepayments, and investment interest. Disbursementstotaling $82.9 million consisted of $62.8million in wastewater construction and refinancingand $20.1 million in repayment of Series 2004revenue bonds, transfer to Drinking Water StateRevolving Fund Program, administrative expenses,and trustee bank fees.10 Executive SummaryOklahoma Water Resources Board

ANNUAL REPORTAmerican Recovery& ReinvestmentActPresident Obama signed the American Recoveryand Reinvestment Act of 2009 into law onFebruary 17, 2009. The legislation provided anunprecedented opportunity to improve wastewaterinfrastructure across the nation while creatingjobs for our citizens. Oklahoma received approximately$31.6 million in federal funding to provideincreased funding for wastewater system improvementsfunded through the CWSRF program. Projectsfunded were required to be under constructionor have construction contracts awarded byFebruary 17, 2010.ARRA Project Review and RankingThe OWRB utilized Oklahoma’s approved CWSRFIntegrated Ranking System (which is detailed inOklahoma Administrative Code Title 785 Chapter50) to review and rank projects to be fundedwith ARRA dollars. Projects receiving the greatestnumber of points during the ranking process receivedARRA funding. Projects which were “readyto proceed” to construction (i.e. have completedengineering, environmental and financial application)received an additional 400 points through theranking process. If a project encountered delays, itwas skipped using Oklahoma’s CWSRF approvedbypass procedures. Communities not receivingARRA funds received normal below marketCWSRF financing.Preference for Expeditious ActivitiesThe ARRA required priority be given to projectsthat will be “ready to proceed” to constructionwithin 12 months of the date of enactment, February17, 2010. In anticipation of compliance withthis requirement, the OWRB consulted with allpotential recipients with projects on the FY 2009and 2010 Priority Funding Lists by letter and phoneto determine which of the projects could be startedand expeditiously completed. Up to 400 points wereprovided during the CWSRF Integrated PriorityRanking System to projects “ready to proceed toconstruction.Additional SubsidizationThe ARRA states that “each State shall use not lessthan 50 percent of the amount of its capitalizationgrant to provide additional subsidization to eligiblerecipients in the form of forgiveness of principal,Financial Assistance DivisionAnnual Report11

American Recovery& ReinvestmentAct1st in the Region3rd in the NationFor ARRA Funds Under Contractnegative interest loans, or grants, or any combinationof these.” Oklahoma’s CWSRF Program offereda principal forgiveness/loan combination financingopportunity for communities ranked and “ready toproceed” to construction on the Project Priority List.Approximately $30.3 million of ARRA funds wereearmarked for principal forgiveness. The additionalsubsidies were targeted, as much as possible, to disadvantagedcommunities as defined through the 30year financing negotiation under the Drinking WaterState Revolving Fund.In January 2010 it was determined that the finalARRA principal forgiveness amount for eachARRA project was approximately 30%, with “green”projects receiving up to 100% principal forgiveness.The remaining project cost would be from traditionalloan funds. Table 1 shows the final ARRAfunding amounts.Green Project ReserveOklahoma continues to be committed to the implementationof sustainable or green infrastructure.The Recovery Act legislation required that not lessthan 20% of the funds be for projects to addressgreen infrastructure, water or energy efficiencyimprovements or other environmentally innovativeactivities. All projects included on the FY 2009and FY 2010 Project Priority List were evaluated todetermine elements would qualify under the GreenProject ReserveSeveral solicitations for Green Projects were sent tocommunities, crosscutters as well as non-traditionalgroups. At the conclusion of ARRA, the final GreenProject Reserve amount was $7.9 million whichexceeded the 20% requirement by $1.5 million. Thegreen projects are notated as GPR within Table 1.Accounting and TrackingOklahoma utilized the Clean Water BenefitsReporting System (CBR) to track the progressof projects each quarter under ARRA. The CBRinformation was then exported to be utilized inreporting via Recovery.gov as well as the HouseTransportation and Infrastructure Committee.The State of Oklahoma mandates the OWRB to depositARRA funds into a special ARRA account. Thefunds are then transferred into OWRB accounts asfunding requests are made. This process is memorializedwithin a series of flow-charts provided to andapproved by EPA Region 6.Public ReviewIn accordance with the Oklahoma AdministrativeCode Title 785 Chapter 50, the OWRB posted the FY2009 and FY 2010 Intended Use Plans subsequentamendments at www.owrb.ok.gov. Notice of the12 Executive SummaryOklahoma Water Resources Board

ANNUAL REPORTavailability to the public was provided by announcementsin the Daily Oklahoman newspaper,which has a total circulation of 802,000. Organizationsand individuals on the CWSRF distributionlist were notified of the Amendments eitherelectronically or via mail.ARRA Programmatic CoordinationThe Clean Water and Drinking Water State RevolvingFund Programs developed a collaborative partnershipwith the U.S. Department of Agriculture’sRural Development Water and Wastewater Loanand Grant Program. Through ARRA, these programscombined have over $132 million in additionalresources earmarked for water and wastewaterimprovements for Oklahoma communities. Thethree programs met at a minimum on a quarterlybasis to determine the most advantageous fundingopportunity for communities while ensuring ARRAfunding is expended in an expeditious manner.ARRA Activities between February 2009and June 2009The OWRB submitted the initial application and revisedFY 2009 Intended Use Plan (IUP) for ARRAfunding to EPA on February 24, 2009. The ARRAaward from EPA was received on April 22, 2009. Anamendment to add several additional projects wassubmitted on April 19, 2009, and approved on June12, 2009. The first five projects entered into BindingCommitments with the OWRB in April 2009 withthe first loan closing occurring on May 15, 2009.Prior to June 30, 2009, OWRB entered into ARRABinding Commitments with seven entities for atotal amount of $60.6 million of which $7.7 millionwas additional subsidization from ARRA funds.Projects on the FY 2009 list that were not fundedby June of 2009 were added to the FY 2010 IUP andProject Priority List and were eligible for ARRAsubsidization.ARRA Activities between July 2009 andFebruary 2010Between July 2009 and February 2010, the OWRBentered into binding commitments with 25 communitiesunder ARRA for a total amount of $58.8million of which $19.7 million was in the formof principal forgiveness. During the same timeframe, OWRB closed 28 ARRA project loans fora total amount of $75.2 million of which $24 millionwas in the form of principal forgiveness. AllCWSRF ARRA Projects had contracts executedby January 15, 2010, one month in advance of theFebruary 17, 2010 deadline.Financial Assistance DivisionAnnual Report13

American Recovery& Reinvestment Act“Job creation, whether direct or indirect, is going to bevery important over the next several years. It is alwaysimportant, but critical in the near future.”- Thomas K. Badin, Special District Judge (Ardmore)TABLE 1Oklahoma’s Clean Water State Revolving Fund ProgramARRA Projects funded between February 17, 2009 and February 17, 2010ARRA Loan Recipient Total Assistance ARRA Amount Green Amount Loan Closing Date Contracts in PlaceAdair Municipal Authority $1,400,000.00 $432,320.00 $0.00 09/22/09 08/31/09Ardmore Public Works Authority $1,090,000.00 $336,592.00 $0.00 12/18/09 01/08/10Central Oklahoma Master Conservancy District $369,520.00 $369,520.00 $369,520.00 12/04/09 12/16/09Central Oklahoma Master Conservancy District $1,131,765.00 $1,131,765.00 $1,131,765.00 01/12/10 01/14/10Collinsville Municipal Authority $550,000.00 $169,840.00 $0.00 10/30/09 09/21/09Del City Municipal Services Authority $1,190,000.00 $367,472.00 $0.00 10/09/09 10/13/09Duncan Public Utilities Authority $340,000.00 $304,136.00 $304,135.00 09/18/09 04/28/09El Reno Municipal Authority $205,000.00 $63,304.00 $0.00 12/18/09 12/01/09Grand Lake Public Works Authority $992,500.00 $306,484.00 $0.00 12/29/09 12/30/09Grove Municipal Services Authority $1,900,000.00 $586,720.00 $0.00 08/21/09 08/25/09Guymon Utilities Authority $1,335,000.00 $412,248.00 $0.00 11/06/09 11/13/09Harrah Public Works Authority $1,930,000.00 $595,984.00 $0.00 05/29/09 05/18/09Henryetta Municipal Authority $3,650,000.00 $1,127,120.00 $0.00 12/21/09 12/21/09Lawton Water Authority $12,270,000.00 $2,000,000.00 $0.00 11/30/09 12/15/09Moore Public Works Authority $3,943,482.00 $1,217,747.00 $0.00 05/28/09 04/13/09Muskogee Municipal Authority $1,435,000.00 $443,128.00 $0.00 08/28/09 09/15/09Mustang Improvement Authority $6,590,000.00 $2,000,000.00 $0.00 06/08/09 06/08/0914 Executive SummaryOklahoma Water Resources Board

TABLE 1 (cont.)Oklahoma’s Clean Water State Revolving Fund ProgramAmerican Recovery& Reinvestment ActANNUAL REPORTARRA Projects funded between February 17, 2009 and February 17, 2010ARRA Loan Recipient Total Assistance ARRA Amount Green Amount Loan Closing Date Contracts in PlaceNorman Utilities Authority $7,640,000.00 $2,000,000.00 $0.00 08/28/09 09/25/09Oklahoma City Water Utilities Trust $9,469,451.00 $2,000,000.00 $0.00 11/13/09 11/03/09Oklahoma Conservation Commission $2,000,000.00 $2,000,000.00 $2,000,000.00 12/29/09 12/29/09Oklahoma Conservation Commission $86,500.00 $86,500.00 $86,500.00 12/08/09 10/01/09Oklahoma Conservation Commission $2,000,000.00 $2,000,000.00 $2,000,000.00 12/08/09 10/01/09Owasso Public Works Authority $1,785,000.00 $1,785,000.00 $75,925.00 12/08/09 12/01/09Pawnee Public Works Authority $1,275,000.00 $393,720.00 $0.00 05/15/09 04/24/09Perkins Public Works Authority $7,225,000.00 $2,000,000.00 $1,250,000.00 05/29/09 05/12/09Piedmont Municipal Authority $2,515,000.00 $776,632.00 $0.00 12/17/09 12/24/09Ponca City Utility Authority $575,000.00 $177,560.00 $0.00 10/06/09 09/28/09Sperry Utility Services Authority $390,000.00 $120,432.00 $0.00 10/09/09 09/10/09Stillwater Utilities Authority $1,875,000.00 $579,000.00 $249,975.00 11/24/09 01/15/10Sulphur Municipal Authority $10,200,000.00 $2,000,000.00 $233,973.00 12/29/09 01/13/10Tulsa City-County Library System $202,800.00 $202,800.00 $202,800.00 12/29/09 12/31/09Tulsa Metropolitan Utility Authority $7,350,000.00 $2,000,000.00 $0.00 11/24/09 12/16/09Walters Public Works Authority $1,326,407.00 $409,594.00 $0.00 12/23/09 12/08/09Total Funding Amount $96,237,425.00 $30,395,618.00 $7,904,593.00Financial Assistance DivisionAnnual Report15

Loan FundingProject Activity“The Okmulgee Municipal Authorityis excited and encouraged to beable to borrow money from the OklahomaWater Resource Board… The extremelylow interest rates and flexibilityof these loans are a benefit to all OklahomaMunicipalities. In addition, theprofessionalism and helpfulness of thestaff of the Financial Assistance Divisionat OWRB is exceptional andhighly appreciated by all those who encounterthem. It is rare in today’s worldto encounter governmental employees whoare genuinely concerned with helpingtheir customers.”- Bob Baxter, City Manager (Okmulgee)Thirty-four Oklahoma entities received bindingcommitments totaling $191 million during FY2010 for eligible projects including construction ofnew treatment and collection systems, rehabilitationof existing facilities, and green infrastructure.The FY 2010 projects will allow borrowers to costeffectively rehabilitate aging treatment plants andcollection lines, expand capacity to meet anticipatedpopulation and economic growth opportunitiesthroughout the 20-year design life, attain compliancewith State effluent discharge requirements in place toprotect Oklahoma’s surface and ground waters and insome locations, improve the quality of priority riversand lakes identified as threatened or impaired.The capital financing through the CWSRF Programenables Oklahoma’s wastewater systems to affordablymeet treatment standards for wastewater dischargedinto the State’s rivers and lakes in accordance withthe National Pollutant Discharge Elimination System(NPDES), administered by the Oklahoma Departmentof Environmental Quality (ODEQ). Witha fixed, 40%-below-market interest rate, ARRAsubsidies, and a payback period of up to 20 years,these communities are expected to save more than$72 million in capital expenditures for their essentialwastewater infrastructure over the life of the loans.In FY 2010 OWRB funded 29 large communities, 9small community loans and 3 state agency/universitiesconsortiums.In order to analyze Oklahoma’s water supply anddemand with necessary emphasis on a multitudeof geographic variables, the OWRB delineatedthirteen Watershed Planning regions (includingeighty-two surface water basins) as part of theOCWP. Binding commitments approved withinFY 2010 are presented within this report by OCWPplanning district. One of the final products of theOCWP will be individual reports for each regionthat will include detailed evaluations of watersupplies, future demands, alternatives to addresspotential water shortages, and possible infrastructureimprovement opportunities.16 Executive SummaryOklahoma Water Resources Board

Your Financial Assistance Division for FY 2010ANNUAL REPORTBack Row: Matt Cogburn; Tamara Griffin; Shelly Bacon; Robert Lindenberger; Joe Freeman (Chief); Vivek Rajaraman; Simeon StoitzevMiddle Row: Jennifer Wasinger (Asst. Chief); Sonia Mock; Angela Thompson; Anita Ray; Laura Oak; Tony MensahFront Row: Kate Burum; Daniel Hughes ; Barry Fogerty; Yohanes Sugeng; Ben BalaskoNot Pictured: Byju Sudhakaran; Kathy KoonFinancial Assistance DivisionAnnual Report17

Panhandle RegionGuymonGUYMON UTILITIESAUTHORITY (ARRA)ORF-09-0013-CWPopulation: 10,472Loan Amount: $1,335,000.00Binding Commitment Date: 10/13/09Loan Closing Date: 11/06/09Percent Complete as of June 30, 2010: 50%OWRB Staff: Y. Sugeng, Engineer; M. Cogburn,Environmental Specialist; S. Stoitzev, FinancialAnalystGuymonGuymon Utilities Authority, Texas County, ownsand operates a wastewater system that servesthe City of Guymon. The Oklahoma Departmentof Environmental Quality issued a Consent Orderto the City of Guymon regarding construction andoperation violation. The Authority’s wastewatertreatment system consists of two treatment facilities:the 28-acre northeast treatment lagoons andthe 22-acre west treatment lagoons. These two treatmentsystems do not currently provide sufficientcapacity for the City of Guymon’s wastewater andthe effluent from Seaboard Industries wastewaterpre-treatment facility. To address the violations andcapacity issues, the City of Guymon initiated a twophased process with Phase I funded via the CWSRFProgram in FY 2009. This project is consideredPhase II of the improvements and further enhancesthe wastewater treatment system by constructing anultra-violet disinfection system, a 20-inch diameteroutfall line plus manholes to the Beaver River aswell as a cascade aerator.18 Panhandle RegionOklahoma Water Resources Board

Southwest RegionArdmoreHOBART PUBLIC WORKSAUTHORITYORF-07-0007-CWPopulation: 3,997Loan Amount: $1,270,000.00Binding Commitment Date: 6/8/10Loan Closing Date: 10/10Percent Complete: 0%BethanyOWRB Staff: Y. Sugeng, Engineer; M. Cogburn,Environmental Specialist; S. Mock, FinancialAnalystHobart Public Works Authority owns andoperates a water and wastewater system thatserves the City of Hobart. Presently, there are areasin the corporate limits along Highway 183, wherethe existing homes and the Hobart MunicipalAirport are not served by the public sanitary sewersystem. The Authority is proposing to constructnew sanitary sewer collection systems for the existinghouses without public sewer to reduce healthrisks. The Authority has proposed to resolve theirproblems by constructing 6,350 LF of 8” PVC sewerline, 14,250 LF of 12” PVC sewer line, 19,800 LF of6” PVC force main, a lift station, 54 manholes andother various components.PANHANDLE REGION SOUTHWEST REGIONSouthwest RegionAnnual Report19

Beaver-CacheRegionDuncanDUNCAN PUBLIC WORKSAUTHORITY (ARRA)ORF-09-0016-CWPopulation: 21,732Loan Amount: $340,000.00Binding Commitment Date: 9/8/09Loan Closing Date: 9/18/09Percent Complete: 100%OWRB Staff: B. Sudhakaran, Engineer; T. Griffin,Environmental Specialist; S. Stoitzev, FinancialAnalystDuncan Public Works Authority owns and operatesa wastewater treatment plant designed totreat an average daily flow of 4.5 MGD, with a peakhourly design flow of 6.75 MGD. Duncan PublicWorks Authority proposes to replace the currentaerators in the activated sludge nitrification basin atthe Wastewater treatment plant. These aerators areused to mix and circulate the mixed liquid phase ofsewage. The new motors and the variable frequencydrives are part of energy efficiency improvements tothe plant.LAWTON WATER AUTHORITY(ARRA)ORF-09-0015-CWPopulation: 92,757Loan Amount: $12,270,000.00Binding Commitment Date: 9/8/09Loan Closing Date: 11/30/09Percent Complete: 80%OWRB Staff: B. Sudhakaran, Engineer; M. Cogburn,Environmental Specialist; S. Mock, Financial Analyst20 Beaver - Cache RegionOklahoma Water Resources Board

LawtonLawton Water Authority continues the implementationof their Master Plan. This projectproposes sanitary sewer rehabilitation, upgrading,and improvements to the wastewater treatmentplant. The sewer line rehabilitation workincludes SE “D” Ave. upgrade to 12” from 10”, NW62nd St. upgrade to 12” from 10”, rehabilitation ofsub-basins 313-B, 304, 305, 311, 310 and 303. Thewastewater treatment plant upgrades include theimprovement of the influent pump station, gritremoval system, primary clarifiers, primary sludgepump station, primary effluent pump station, tricklingfilters, trickling filter pump station, nitrificationaeration basins, aeration blower building, nitrificationclarifiers, effluent filtration and aeration, mixedsludge holding tanks, anaerobic digesters & controlbuilding and solids handling building.Walters’WALTERS PUBLIC WORKSAUTHORITY (ARRA)ORF-09-0005-CWPopulation: 2,657Loan Amount: $1,326,407.00Binding Commitment Date: 10/13/09Loan Closing Date: 12/23/09Percent Complete: 65%OWRB Staff: V. Rajaraman, Engineer; K. Koon,Environmental Specialist; D. Hughes, FinancialAnalystLawtonWalters Public Works Authority owns andoperates a water and wastewater system thatserves the City of Walters. The Oklahoma Departmentof Environmental Quality has issued a consentorder to the Authority regarding sanitary seweroverflow from a manhole that was flowing into anearby drainage ditch. According to the consentorder, the Authority needs to perform necessaryimprovements on the collection system to eliminatethe unpermitted discharges. The Authorityproposed to resolve their problems by constructingtwo new sewer interceptors as well as upgrading theexisting wastewater treatment plant to replace andinstall a new headwork screen, guide rails, pumpcontrols, flow measurement device, control gates,valves, and an earthen berm.BEAVER - CACHE REGIONFinancial Assistance DivisionAnnual Report21

Lower WashitaRegionArdmoreSulphurARDMORE PUBLIC WORKSAUTHORITY (ARRA)ORF-09-0018-CWPopulation: 23,711Loan Amount: $1,090,000.00Binding Commitment Date: 9/8/09Loan Closing Date: 12/18/09Percent Complete: 50%OWRB Staff: V. Rajaraman, Engineer; M. Cogburn,Environmental Specialist; D. Hughes, FinancialAnalystArdmore Public Works Authority owns and operatesa wastewater treatment plant and sewerrelated components. The proposed project includesreplacement and rehabilitation of about 185 manholes.The rehabilitation work includes replacementof standard frame and cover, reversible frame andcover, replacement of wastewater stub out connection,inflow insert, and repairs to the pipe entranceat the manhole. This loan will pay for the associatedwork, which includes full depth saw cut, wastewaterservice transfer, concrete pavement repair, job sitesafety, and traffic control.22 Lower Washita RegionOklahoma Water Resources Board

SulphurSULPHUR MUNICIPALAUTHORITY (ARRA)ORF-09-0030-CWPopulation: 4,794Loan Amount: $10,200,000.00Binding Commitment Date: 12/8/09Loan Closing Date: 12/29/09Percent Complete: 30%OWRB Staff: T. Mensah, Engineer; M. Cogburn,Environmental Specialist; S. Stoitzev, FinancialAnalystFinancial Assistance DivisionThe Sulphur Municipal Authority owns andoperates a sanitary sewer and wastewatertreatment facility consisting of collection lines,lift stations, flow equalization basin, head worksand a sequencing batch reactor (SBR) waste watertreatment plant (WWTP). The Authority is undera Consent Order from the Oklahoma Departmentof Environmental Quality regarding overflowsin the collection system and high inflow into thewastewater treatment facility. To properly addressthe order, the Authority is proposing to retrofit andexpand the existing WWTP through the constructionof a three-basin SBR system and replacementof eighteen (18) inch force main. The design flowfor the proposed new system is 1.5 million gallonsper day (MGD) with a peak flow of 4.3 MGD. Theproposed project also includes the construction offlow equalization basin (FEB), pre-aeration basin,blower building with blowers, head works rehabilitation,new aerobic digester, new primary liftstation, gravity belt thickener with filter press, andall other related appurtenances.“Fixing infrastructureis like goingto the dentist. You wantpreventative care, youdon’t want it to break.”– Mark Bruegel,Manager at Michelin (Ardmore)Annual ReportLOWER WASHITA REGION23

Central RegionDel CityDEL CITY MUNICIPALSERVICES AUTHORITY (ARRA)ORF-09-0022-CWPopulation: 22,128Loan Amount: $1,190,000.00Binding Commitment Date: 8/11/09Loan Closing Date: 10/9/09Percent Complete: 100%OWRB Staff: V. Rajaraman, Engineer; M. Cogburn,Environmental Specialist; D. Hughes, FinancialAnalystOklahoma CityDel City Municipal Services Authority owns andoperates a wastewater collection system thatserves the City of Del City. The Authority recentlycompleted a general evaluation of the wastewatertreatment plant, the treatment performance, andsludge management alternatives. Based on the engineeringstudy report, the greatest issue at the plantis sludge management. The loss of application fieldsand the seasonal weather problems of application atthe fields frequently cause the plant to get behind inthe ability to process sludge. Through this project,the Authority proposed to resolve their problem bybuilding a new belt filter press to meet or exceed the18% solids level for the landfill application.24 Central RegionOklahoma Water Resources Board

Oklahoma CityPiedmontCENTRAL REGIONOKLAHOMA CITY WATERUTILITIES TRUST (ARRA)ORF-09-0021-CWPopulation: 506,132Loan Amount: $9,469,450.64Binding Commitment Date: 7/14/09Loan Closing Date: 11/13/09Percent Complete: 65%OWRB Staff: Y. Sugeng, Engineer; K. Koon,Environmental Specialist; A. Thompson, FinancialAnalystOklahoma City Water Utilities Trust owns andoperates a water and wastewater system thatserves the City of Oklahoma City. Existing collectionlines and manholes have deteriorated dueto age and are subject to inflow and infiltrationFinancial Assistance Divisionproblems, increasing the possibility of sewer overflows.Through the eight (8) projects funded underthis loan, the City proposed to rehabilitate existingsewer lines and manholes to reduce the total systemwet weather inflow and to enhance the long-termstructural integrity of the existing system. Theprojects are anticipated to improve the overall conditionof the existing system while providing for theprotection of public health and safety.PIEDMONT MUNICIPALAUTHORITY (ARRA)ORF-09-0014-CWPopulation: 3,650Loan Amount: $2,515,000.00Binding Commitment Date: 8/11/09Loan Closing Date: 12/17/09Percent Complete: 65%OWRB Staff: V. Rajaraman, Engineer; K. Koon,Environmental Specialist; S. Mock, FinancialAnalystPiedmont Municipal Authority owns and operatesa wastewater treatment system consistingof collection lines, lift stations, and a total retentionlagoon treatment system. Due to recent growthin the area, the current lagoon system is operatingnear its maximum capacity. In order to solve theirproblem, the City plans to convey a portion of theirflow to the City of Oklahoma City. The proposedproject consists of the construction of approximately11,080 feet of 24-inch gravity sanitary sewer line,approximately 2,040 feet of 8-inch force main andall related construction and appurtenances.Annual Report25

Central RegionOU / OCCOU / OCCOKLAHOMA CONSERVATIONCOMMISSION/UNIVERSITY OFOKLAHOMA (ARRA)ORF-09-0031-CWPopulation: 95,694Loan Amount: $86,500.00Binding Commitment Date: 10/13/09Loan Closing Date: 12/8/09Percent Complete: 100%OWRB Staff: Y. Sugeng, Engineer; T. Griffin,Environmental Specialist; A. Thompson, FinancialAnalystLocated in Norman, Oklahoma, The Universityof Oklahoma is a doctoral degree-grantingresearch university serving the educational, cultural,economic, and health-care needs of the state, regionand nation. The University, in cooperation with theOklahoma Conservation Commission is proposingto construct an approximately 1500 S.F. experimentalgreen roof located on the University of Oklahomacampus at the National Weather Center in Norman,Oklahoma. Green roof or a vegetative roof systemis proven to reduce storm water runoff quantity andimprove discharge quality while reducing warmseason energy demand loads and extending the lifeof the waterproofing membrane. Due to its location,this project will also become the subject of researchexamination and visitation by numerous scholars,students, and community officials for Oklahoma andthe world. The classroom roof will be used for study,teaching of students and officials, and as an exhibitfor visitors.26 Central RegionOklahoma Water Resources Board

CENTRAL REGIONCOMCDCOMCDCENTRAL OKLAHOMAMASTER CONSERVANCYDISTRICT (ARRA)ORF-09-0027-CW/ORF-09-0027-CWAPopulation: 171,910Loan Amount: $1,501,285.20Binding Commitment Date: 9/8/09Loan Closing Date: 1/12/10Percent Complete: 90%OWRB Staff: B. Sudhakaran, Engineer; T. Griffin,Environmental Specialist; A. Thompson, FinancialAnalystFinancial Assistance DivisionThe Central Oklahoma Master ConservancyDistrict (COMCD) is made up of representativesfrom the cities of Del City, Midwest Cityand Norman and is responsible for managing theresources of Lake Thunderbird. Lake Thunderbirdis a 303(d) listed priority watershed and the priorityassignment is due to the impairment listing for color,turbidity and dissolved oxygen. COMCD proposeda project to manage the anoxic hypolimnionof Lake Thunderbird. By utilizing the supersaturateddissolved oxygen injection system (SDOX) tomaintain the bottom 5 meters of hypolimnion at 3ppm, the dissolved oxygen will restore the low dissolvedoxygen impairment. The SDOX method willinvolve installing an onshore pump and appropriatepiping to allow water to be withdrawn, supersaturatedto around 300% and then injected back to thehypolimnion with minimal thermal impact. Theproposed project consists of two SDOX chambers,one control panel, one programmable logic controller(PLC), two pumps and motors, packaging andtesting and protective coatings.“The economicdevelopment doorfor Piedmont is finallyopen, and the door knob isthe sewer.”– Mike Fina, Mayor (Piedmont)Annual Report27

Central RegionMooreMOORE PUBLIC WORKSAUTHORITYORF-08-0002-CWALoan Amount: $42,837,500Binding Commitment Date: 5/13/10Loan Closing Date: 09/10Percent Complete: 0%OWRB Staff: B. Sudhakaran, Engineer; M. Cogburn,Environmental Specialist; D. Hughes, FinancialAnalystMoore Public Works Authority’s wastewatercollection and treatment system is comprisedof approximately 193 miles of collection lines,four lift stations, and a wastewater treatment plant(WWTP.) The WWTP is a 20+ year old RotatingBiological Contactor (RBC). To meet changes indischarge permit limits for ammonia (as required byan Oklahoma Department of Environmental QualityConsent Order) as well as existing and future capacityneeds, the Authority is proposing to constructimprovements to its existing WWTP. The proposedproject will replace the RBC type treatment processwith a Sequential Batch Reactor (SBR) process andincrease treatment capacity to approximately 9.0MGD. Construction includes site work, screening,grit removal and parshall flume, influent lift station,Sequential Batch Reactor (SBR) and effluent flowequalization, aerobic digesters, effluent pump station,sludge dewatering and disposal facilities, wet weatherflow holding pond, yard piping, site electric work,instrumentation and controls, belt filter press, newWWTP buildings and miscellaneous appurtenances.28 Central RegionOklahoma Water Resources Board

El RenoEl RenoEl RenoCENTRAL REGIONCITY OF EL RENOORF-09-0025-CWLoan Amount: $205,000.00Binding Commitment Date: 10/13/09Loan Closing Date: 12/18/09Percent Complete: 100%OWRB Staff: V. Rajaraman, Engineer; T. Griffin,Environmental Specialist; S. Stoitzev, FinancialAnalystEl Reno Municipal Authority owns and operatesa sanitary sewer system consisting ofapproximately 82 miles of line ranging in sizefrom 6-inch through 27-inch diameter that servesthe City of El Reno. Pipe materials consist of castiron, clay, ductile iron, and PVC. The OklahomaDepartment of Environmental Quality has issueda Consent Order to the City regarding the unpermittedwastewater discharges from the wastewatertreatment plant. To resolve the problem the Cityconducted an Infiltration and Inflow (I&I) studyand identified a bad section of pipe in downtown ElReno along the tributary of Four Mile Creek. TheAuthority proposes to replace the bad section of thepipe and reduce the I&I to the system. The projectconsists of replacing approximately 1,250 feet of 10”pipe, 780 feet of 12” pipe, 385 feet of 4” pipe, seven(7) sewer manholes and other related constructionand appurtenances.Financial Assistance DivisionAnnual Report29

Upper ArkansasRegionStillwaterSTILLWATER UTILITIESAUTHORITY (ARRA)ORF-09-0024-CWPopulation: 39,065Loan Amount: $1,875,000.00Binding Commitment Date: 8/11/09Loan Closing Date: 11/24/09Percent Complete: 47%OWRB Staff: B. Sudhakaran, Engineer; M. Cogburn,Environmental Specialist; A. Thompson, FinancialAnalystStillwaterStillwater Utilities Authority proposed improvementsto its wastewater treatment system in partto address an Oklahoma Department of EnvironmentalQuality Consent Order (#08-233), to correctunauthorized discharge of wastewater from the City’swastewater collection system. The Authority’s collectionlines and manholes have deteriorated due toage and are subject to inflow and infiltration problems,increasing the possibilities of sewer overflows.The projects include replacement of existing sewerlines and manholes, construction of an enclosure toprotect equipment at the wastewater treatment plant(WWTP), installation of a lightening protection systemat the WWTP, rehabilitation of a lift station, andto replace deteriorated field apparatuses used for theapplication of biosolids and maintenance of stormsewers. The improvements will help to improve theoverall condition and enhance the long-term structuralintegrity of the existing system while providingfor the protection of public health and safety.30 Upper Arkansas RegionOklahoma Water Resources Board

EnidENID MUNICIPAL AUTHORITYORF-09-0019-CWPopulation: 47,045Loan Amount: $39,900,000.00Binding Commitment Date: 5/11/10Loan Closing Date: 5/25/10Percent Complete: 3%OWRB Staff: V. Rajaraman, Engineer; M. Cogburn,Environmental Specialist; S. Mock, FinancialAnalystEnidEnid Municipal Authority owns and operates awater pollution control facility which was builtin 1954 and was expanded several time to thepresent average daily flow capacity of 8.5 milliongallons per day. Many of the process units andfacilities have reached the end of their useful lives.The projected flows from population and industrialgrowth are expected to exceed the present capacitywithin a few years. To solve the problem andserve the citizens of Enid, the City is proposing tobuild a new Verticel® modified nitrification WaterReclamation Facility (WRF) at a new location forthe projected flow of 12mgd for the planning yearof 2030. The proposed project consists of influentpumping station, headworks, three primary clarifiers,verticell basin, three final clarifiers, sludgepumping station, flow meter, ultra violet disinfection,effluent pumping station and other relatedconstruction and appurtenances to serve the Cityof Enid.“It’s the first plant of its kindin the state of Oklahoma,”Strong said, adding that theproject showed the city not justtaking care of its future needs butemploying the newest technology,as well. “Enid should becongratulated for being proactiveand deliberate in its decisionmaking.”- J.D. Strong, Interim Executive Director(Water Board)UPPER ARKANSAS REGIONFinancial Assistance DivisionAnnual Report31

Upper ArkansasRegionPonca CityPONCA CITY UTILITYAUTHORITY (ARRA)ORF-09-0011-CWPopulation: 25,919Loan Amount: $575,000.00Binding Commitment Date: 7/14/09Loan Closing Date: 10/6/09Percent Complete: 100%TulsaPonca City Utility Authority owns and operates awater and wastewater system that serves the Cityof Ponca City. The entity requested funding to installan emergency generator at the main lift station andmake improvements at the Brentwood lift station.The Brentwood lift station improvements includeinstalling larger pumps, new SCADA controls,connection for a portable pump and generator, andconstructing a four hour emergency holding basinand all necessary appurtenances.OWRB Staff: Y. Sugeng, Engineer; M. Cogburn,Environmental Specialist; D. Hughes, FinancialAnalyst32 Upper Arkansas RegionOklahoma Water Resources Board

Broken ArrowOklahoma ConservationCommission/Oklahoma StateUniversity (ARRA)Cow Creek Stream Restoration andStream Bank Stabilization ProjectORF-09-0032-CWPopulation: 39,065Loan Amount: $2,000,000.00Binding Commitment Date: 10/15/09Loan Closing Date: 12/8/09Percent Complete: 1%OWRB Staff: B. Balasko, Engineer; K. Koon,Environmental Specialist; A. Thompson, FinancialAnalystFinancial Assistance DivisionOSU / OCCSediment is a critical non-point source pollutantthroughout Oklahoma. One source of excessivesediment is incised stream banks. Stabilizationof these stream banks can improve water qualitythrough reduced loadings to rivers and streams,and can reduce the potential for downstream floodingby reconnecting streams to their floodplains.Cow Creek, located on the west side of Stillwater,Oklahoma, is a typical degrading stream. Inaddition to water quality issues, the downstreammeander migration pattern and the widening of thechannel has threatened land and infrastructure onboth sides of the creek. The Oklahoma ConservationCommission in cooperation with OklahomaState University proposes to address this issue byrestoring the stream bank between OK-51 andWest Virginia Ave. The proposed project consistsof removing a current rip-rap obstruction, establishinga riffle/pool sequence along the stream,resloping stream banks as necessary, reestablishingvegetation, and all related construction and appurtenances.OSU / OCC“Astabilization projectof this magnitudeon such a small creek [CowCreek] should result insignificant reductions insediment loading to the systemand should demonstratetechniques that might beneeded to stabilize othersystems.”– Shanon Phillips, Water QualityDivision Director (ConservationCommission)Annual ReportUPPER ARKANSAS REGION33

Middle ArkansasRegionOwassoOWASSO PUBLIC WORKSAUTHORITY (ARRA)96th and Garnett Rd. Regional DetentionFacilityORF-09-0003-CWAPopulation: 18,502Loan Amount: $1,785,000.00Binding Commitment Date: 8/11/09Loan Closing Date: 12/8/09Percent Complete: 40%OWRB Staff: V. Rajaraman, Engineer; M. Cogburn,Environmental Specialist; S. Mock, Financial AnalystOwasso, Oklahoma is a growing city locatedabout 15 miles northeast of Tulsa in TulsaCounty. Rapid development in the Ranch CreekTributary A drainage basin has resulted in increasedstorm water runoff. The Owasso Public Works Authorityhas proposed to construct a regional detentionfacility near 96th St. and Garnett Rd. in orderto impound and control the release of higher runofffrom upstream areas. The pond will provide relief fordownstream culverts that do not have the capacity tocarry the increased flow. This project is one of severalidentified in the City of Owasso’s Master DrainagePlan. The proposed project consists of grading andearthwork necessary to construct the pond and dam,re-vegetate, construction of a concrete spillway, andall related construction and appurtenances.34 Middle Arkansas RegionOklahoma Water Resources Board

OwassoOwassoOWASSO PUBLIC WORKSAUTHORITYORF-09-0003-CWPopulation: 18,502Loan Amount: $10,795,000.00Binding Commitment Date: 8/11/09Loan Closing Date: 12/8/09Percent Complete: 40%OWRB Staff: V. Rajaraman, Engineer; M. Cogburn,Environmental Specialist; S. Mock, FinancialAnalystThe Owasso Public Works Authority ownsand operates a sanitary sewer system consistingof collection lines, lift stations and wastewatertreatment plant. The Authority is proposing toupdate the aging 117th Street Pump Station. TheAuthority is also proposing to increase the capacityof the Owasso WWTP to be capable of treating anaverage daily flow of 4.2 mgd and a peak of 5.8 mgdto better match current projected residential andcommercial growth and to provide more efficientand reliable service. The project will also eliminatehydraulic bottlenecks within the plant and providemore efficient solids treatment. The proposed projectconsists of improvements to the aeration tank,WAS thickening, Relief Pump Station, WWTPconveyance system, and construction of new finalclarifier, new Activated Sludge Pump Station No.2, Activated Sludge Pump Station No. 1, effluentdisinfection, aerobic digestion and all other relatedconstruction and appurtenances to the serve theCity of Owasso.OWASSO PUBLIC WORKSAUTHORITYEast 76th Street North Sanitary SewerInterceptorORF-09-0007-CWPopulation: 18,502Loan Amount: $4,510,000.00Binding Commitment Date: 8/11/09Loan Commitment Date: 12/8/09Percent Complete: 30%OWRB Staff: V. Rajaraman, Engineer; M. Cogburn,Environmental Specialist; S. Mock, FinancialAnalystMIDDLE ARKANSAS REGIONFinancial Assistance DivisionAnnual Report35

Middle ArkansasRegionTulsaTulsaOwasso, Oklahoma is a growing city locatedabout 15 miles northeast of Tulsa in TulsaCounty. The Owasso Public Works Authority hasalso experienced rapid growth and developmentin recent years and expects the same in comingyears. The Authority has also received requests forextensions of sewer service. The Authority has alsoannexed 990 acres of the Stone Canyon developmentthat was within the Authority’s fence line (Section35 and 36 of Township 21 North Range 14 East). Tomeet the present and future demand, the Authorityis proposing to construct a gravity interceptor sewerto serve approximately 3,483 acres of developed andundeveloped land which includes the Stone Canyondevelopment. The proposed project consists ofconstructing approximately 18,900 feet of 24-inchsanitary sewer line, approximately 1,950 feet of 15-inch sanitary sewer line, approximately 5,725 feetof 12-inch sanitary sewer line, approximately 1,875feet of 10-inch sanitary sewer line, approximately1,050 feet of 8-inch sanitary sewer line and all relatedconstruction and appurtenances.TULSA MUNICIPAL UTILITYAUTHORITYORF-10-0001-CWPopulation: 393,049Loan Amount: $27,757,000.00Binding Commitment Date: 4/13/10Loan Closing Date: 4/15/10Percent Complete: 0%OWRB Staff: B. Balasko, Engineer; T. Griffin,Environmental Specialist; A. Thompson, FinancialAnalystTulsa Metropolitan Utility Authority is proposingsanitary sewer system rehabilitation and capacityimprovements as part of its continuous Tulsa CityWide program. This loan is divided into seventeen(17) total city-wide projects. Nine (9) projects36 Middle Arkansas RegionOklahoma Water Resources Board

Sperryconsist of engineering design only; while eight (8)involve various engineering/construction improvements/rehabilitation.The most cost effective designand construction methods will be chosen from theengineering design reports.SPERRY UTILITY SERVICESAUTHORITY (ARRA)ORF-09-0023-CWPopulation: 981Loan Amount: $390,000.00Binding Commitment Date: 9/8/09Loan Closing Date: 10/9/09Percent Complete: 85%OWRB Staff: V. Rajaraman, Engineer; K. Koon,Environmental Specialist; S. Stoitzev, FinancialAnalystTulsaSperry Utility Services Authority requested a loanthat will be used to upgrade their wastewatertreatment system. The construction work is mainlytargeted to improve the wastewater treatmentplant. The loan amount will be used to constructa chlorine disinfection system, dechlorinationsystem, two chlorine contact basins, V-notch weirwith a flow meter and all appurtenances to servethe disinfection facility and for the installation of astandby generator.COLLINSVILLE MUNICIPALAUTHORITY (ARRA)ORF-09-0009-CWPopulation: 4,077Loan Amount: $550,000.00Binding Commitment Date: 7/14/09Loan Closing Date: 10/30/09Percent Complete: 40%OWRB Staff: Y. Sugeng, Engineer; K. Koon, EnvironmentalSpecialist; D. Hughes, Financial AnalystCollinsville Municipal Authority proposes tomake improvements in their waste water treatmentplant to comply with the new OPDES permitissued by Oklahoma Department of EnvironmentalQuality. The proposed project includes UV equipmentand installation, UV channel, 16” pipe andpipe fittings, site work, electrical work, engineeringand inspection.MIDDLE ARKANSAS REGIONFinancial Assistance DivisionAnnual Report37

Middle ArkansasRegionTulsaTCCLTULSA CITY COUNTY LIBRARY(ARRA)Central Library Green Roof and SperryRain GardenORF-09-0034-CWPopulation: 393,049Loan Amount: $278,580.00Binding Commitment Date: 11/10/09Loan Closing Date: 12/29/09Percent Complete: 40%OWRB Staff: Y. Sugeng, Engineer; K. Koon,Environmental Specialist; A. Thompson, FinancialAnalystCentral Library Green RoofReflecting pools were installed during the originalconstruction of the Central Library in 1964. By1965, it was realized the pools were not sufficientlywaterproofed and the water leaking from the poolscaused damage to automobile’s paint jobs parkedunderneath and dripped on library customers. Sincethe pools continually leaked, the decision was madeto permanently drain the pools. The pool surfacinghas subsequently cracked, heaved, and become quitean eye-sore. The entity is proposing to constructa green roof or a vegetative roof system to replacethe reflecting pools. The system is proven to reducestorm water runoff quantity and improve dischargequality while reducing warm season energy demandloads and extending the life of the waterproofingmembrane. The green roof also provides the communitywith an aesthetic natural benefit.38 Middle Arkansas RegionOklahoma Water Resources Board

TCCLSperry Rain GardenSperry Library raised its foundation in excessof 4 feet to alleviate any flood threats due tothe structure being located within the floodplain.A two acre area on the northwest corner of theproperty remains too low to allow a natural flow ofrainfall to the bar ditches despite significant grading.This results in a perpetually soggy area whichattracts negative plants, insect, and animal activity.The entity is proposing to construct a rain garden.The rain garden will be designed to hold all rainwater coming from approximately 50% of the site,create a natural habitat, recharge the water table,and create a potential educational tool at a publicfacility.Sapulpa Municipal Authority(ARRA)ORF-09-0010-CWLoan Amount: $3,969,114.00Population: 19,166Binding Commitment Date: 10/13/09Loan Closing Date: WithdrawnPercent Complete: 0%OWRB Staff: V. Rajaraman, Engineer; T. Griffin,Environmental Specialist; A. Thompson, FinancialAnalystSapulpa Municipal Authority proposes to makeupgrades to the sanitary sewer system due toexcessive infiltration and inflow. The OklahomaDepartment of Environmental Quality has issued aConsent Order for sanitary sewer overflows in thearea North of Johnson Street between Hickory andJohannes Streets. The Authority proposed to resolvethe problem by resizing the existing Interceptorline. The proposed project consists of constructingapproximately 7681 feet of PVC gravity line(1830 feet of 10” line, 460 feet of 12” line, 3743 feetof 15” line and 1648 feet of 21” line) and all otherrelated construction and appurtenances.MIDDLE ARKANSAS REGIONFinancial Assistance DivisionAnnual Report39

Grand Region“As mayor you balance your responsibilityto the public withyour responsibility to the environment.There is a considerable misconceptionabout the lake and water/wastewatertreatment, educating citizens is the onlyway to overcome the gap.”- Gary Bishop, Mayor (Grove)GroveGroveGRAND LAKE PWA (ARRA)ORF-09-0004-CWPopulation: 4,958Loan Amount: $992,500.00Binding Commitment Date: 9/8/09Loan Closing Date: 12/29/09Percent Complete: 35%OWRB Staff: B. Sudhakaran, Engineer; T. Griffin,Environmental Specialist; D. Hughes, FinancialAnalystThe Authority is proposing to improve theirwastewater treatment system to avoid inflow andinfiltration by rehabilitating part of their sewer linesand manholes. Additionally, the Authority intends toimprove their wastewater treatment plant by installingnew pumps and flow monitoring system. Theproposed facilities will include the rehabilitationof five lift stations and raising the height of one liftstation, rehabilitation of 5350 L.F. of collection lines,rehabilitation of 43 manholes, and the installation offlow monitoring system and pumps for the wastewatertreatment plant.GROVE MUNICIPAL SERVICESAUTHORITY (ARRA)ORF-07-0008-CWPopulation: 5,131Loan Amount: $1,900,000.00Binding Commitment Date: 7/14/09Loan Closing Date: 8/21/09Percent Complete: 100%OWRB Staff: B. Sudhakaran, Engineer; M. Cogburn,Environmental Specialist; S. Mock, Financial Analyst40 Grand RegionOklahoma Water Resources Board

GRAND REGIONPhoto provided by OCCOCCGrove Municipal Services Authority is proposingto modify their existing biosolids managementcapability at the existing wastewater treatmentplant (WWTP) through the construction ofa cost-effective biosolids composting facility andrelated appurtenances immediately adjacent to theexisting WWTP facilities. The proposed projectwould include the construction of a 40,000 squarefoot concrete surface and the use of a skid steertractor/loader and trommel screen for operations.Composting would consist of a 1 to 1 wood chip tobiosolid ratio, meeting Oklahoma Department ofEnvironmental Quality requirements as set forth inthe City’s Sludge Management Plan.OKLAHOMA CONSERVATIONCOMMISSION (ARRA)Streambank Restoration in the IllinoisRiver and Eucha/Spavinaw WatershedsORF-09-0028-CWPopulation: 100,000Loan Amount: $2,000,000.00Binding Commitment Date: 9/8/09Loan Closing Date: 12/29/09Percent Complete: 1%OWRB Staff: B. Balasko, Engineer; M. Cogburn,Environmental Specialist; A. Thompson, FinancialAnalystStreambank instability and resulting erosion isa widespread problem throughout Oklahomawaters. Channel alterations, riparian degradation,increases in livestock and human traffic, andchanges in land use have all contributed to bankinstability. Bank erosion can contribute significantlyto sediment loading in streams and downstreamreservoirs, as well as contribute to pollutant loading.Increased velocities caused by the channelizationof the stream also result in further erosion ofdownstream areas. The Oklahoma ConservationCommission proposes to address this issue byrestoring various streambanks located throughoutThe Illinois River and Eucha/Spavinaw Watersheds.The proposed project consists of reestablishingnative vegetation on streambanks, resloping banksas necessary, installing various in-stream structuresas needed (i.e. rock veins, etc.), and all related constructionand appurtenances.Financial Assistance DivisionAnnual Report41

Eufaula RegionGroveOKMULGEE MUNICIPALAUTHORITYORF-09-0012-CWPopulation: 13,022Loan Amount: $5,100,000.00Binding Commitment Date: 6/8/10Loan Closing Date:Percent Complete: 0%Okmulgee Municipal Authority owns and operatesa water and wastewater system that servesthe City of Okmulgee. The City of Okmulgee hasbeen under a consent decree with the EnvironmentalProtection Agency (EPA) and the Oklahoma Departmentof Environmental Quality (ODEQ) to improvethe collection system and eliminate the overflowingmanholes. The Authority is proposing to replaceseveral sewer lines and manholes throughout the city.The proposed lines will be at the same location and atleast minimum grade as required by ODEQ.OWRB Staff: Y. Sugeng, Engineer; M. Cogburn,Environmental Specialist; D. Hughes, FinancialAnalyst42 Eufaula RegionOklahoma Water Resources Board

EUFAULA REGIONHenryettaHENRYETTA MUNICIPALAUTHORITY (ARRA)ORF-09-0029-CWLoan Amount: $3,650,000.00Population: 6,096Binding Commitment Date: 10/13/09Loan Closing Date: 12/21/09Percent Complete: 30%OWRB Staff: V. Rajaraman, Engineer; T. Griffin,Environmental Specialist; S. Stoitzev, FinancialAnalystHenryettaHenryetta Municipal Authority proposes tomake upgrades to the sanitary sewer systemdue to excessive infiltration and inflow. The OklahomaDepartment of Environmental Quality has issueda Consent Order to the City because of unpermittedwastewater discharges at several locations.The City conducted an Infiltration and Inflow (I&I)study and identified several basins which are susceptibleto inflow. The Authority has proposed toresolve the problem by rehabilitating the collectionsystem. The proposed project consists of replacingapproximately 6,000 feet of 12” pipe, 5,300 feetof 10” pipe, 29,350 feet of 8” pipe, 3,900 feet ofsurface road repair, remove and replace 137 sewermanholes, reconnect 548 service connections, approximately99 sewer main spot repairs and otherrelated construction and appurtenances.Financial Assistance DivisionAnnual Report43

Lower ArkansasRegionGroveMUSKOGEE MUNICIPALAUTHORITY (ARRA)ORF-09-0020-CWPopulation: 38,310Loan Amount: $1,435,000.00Binding Commitment Date: 8/11/09Loan Closing Date: 8/28/09Percent Complete: 99%OWRB Staff: B. Balasko, Engineer; T. Griffin,Environmental Specialist; S. Mock, Financial AnalystMuskogeeMuskogee Municipal Authority owns and operatesa wastewater treatment system consistingof collection lines, lift stations, and a mechanicaltreatment plant. The “Coody Creek Sanitary OutfallSewer” was constructed in 1911 and is at the endof its useful life. The line was constructed usingformed-in-place concrete with no reinforcing steel.Hydrogen sulfide gases generated by raw sewagehave corroded the interior of the pipe causing it tocollapse in several locations. The Authority proposesto solve their problem by replacing the line. Theproposed project consists of the construction of approximately3,600 feet of 54-inch sanitary sewer lineand all related construction and appurtenances.44 Lower Arkansas RegionOklahoma Water Resources Board

HenryettaPOTEAU VALLEYIMPROVEMENT AUTHORITY(ARRA)ORF-09-0026-CWLoan Amount: $839,101.00Population: 43,000Binding Commitment Date: 09/08/09Loan Closing Date: WithdrawnPercent Complete: 0%OWRB Staff: V. Rajaraman, Engineer; T. Griffin,Environmental Specialist; A. Thompson, FinancialAnalystCollinsvillePoteau Valley Improvement Authority (PVIA)utilizes Wister Lake as a raw water supply toprovide many residents in Leflore and LatimerCounties with potable water. Wister Lake locatedin Leflore County, Oklahoma is impaired due tohigh turbidity, high color, high phosphorus andlow dissolved oxygen. Elevated levels of these waterquality parameters are largely a consequence ofnon- point source (NPS) pollutants running offfrom the watershed. PVIA proposed to implementthe recommended Depth Selective Flow RoutedOutflow (DSFRO) of the Section 314 Lakes DiagnosticFeasibility Study to ensure an oxygenatedwater column, to reduce dissolved nutrients andreduced dissolved metals while improving waterquality and aid in meeting the water quality standards.The proposed project consists of constructinga DSFRO system which consists of approximately425 ft of 36-inch diameter pipe, geotechnicaltesting, water quality monitoring, and other relatedconstruction, project fees and appurtenances.LOWER ARKANSAS REGIONFinancial Assistance DivisionAnnual Report45

Loan Adjustmentsfor FY 2010 BindingCommitments• Moore Public Works Authority was approved bythe OWRB for funding in April 2009. The first phaseof the loan was closed on May 28, 2009 (ORF-08-0002-CW). Phase II, however, was taken back toOWRB in November 2009 in order to extend thetime that the CWSRF funds were available. In early2010, it was further determined that the initial engineersestimate was insufficient to complete Phase IIof the project. An additional extension of time andincrease of funds to $42 million was subsequentlyapproved by OWRB in May 2010.• Sapulpa Management Authority was approved bythe OWRB for funding in October in 2010. Ultimatelythe Authority determined that they wereunable to fulfill the ARRA requirements and soughtanother funding.• Poteau Valley Improvement Authority was approvedby the OWRB as an ARRA GPR project inSeptember 2009. A funding increase adjustment wasmade to the binding commitment in November 2009based on a revised engineers estimate. Ultimately,the project encountered difficulties with the U.S.Army Corps of Engineers and the project was unableto move forward in order to meet ARRA deadlines.• Central Oklahoma Master Conservancy Districtwas approved by the OWRB as an ARRA GPRproject in September 2009. A funding increase to$1.1 Million was approved in November 2009 basedon revised engineers estimate. Part 1 of the loan wasclosed on December 4, 2009. An additional fundingincrease to $1.5 Million and one month extensionwas approved in January 2010 based on the completionof plans and specifications.• The Piedmont Municipal Authority and OwassoPublic Works Authority were originally approved bythe Board in August 2009. In November 2009 theprojects were taken back to OWRB in order to extendthe time that the CWSRF funds were available.Intended Use PlanStatus and ChangesThe FY 2010 Intended Use Plan (IUP) wasamended two times during the fiscal year forthe addition of new projects, adjustments to the loanaward dates, revisions to the construction assistanceamounts, and to include the new FY 2010 appropriationrequirements. A public notice was released priorto all amendments and no other projects targeted forfunding were impacted.Total funds of approximately $314.9 million wereinitially required for the 60 projects included onthe fundable portion of the July 2009 IUP issuance.Amendment I, issued September 2009, added thecommunity of Henryetta to the Project Priority List(PPL) as well as made adjustments to loan dates andassistance amounts. With these changes, the totalamount of funds requested increased to $319.8 million.In May 2010 Amendment II was issued to addthree additional communities to the PPL. The totalamount of funds requested on the fundable portionof the PPL decreased to $145.3 million due toa considerable number of projects approved fromSeptember 2009 to February 2010. The new FY 2010appropriation requirements were also added withAmendment II.A total of 35 projects identified on the fundableportion of the FY 10 PPL received a binding commitmentduring the fiscal year. Loans receiving bindingcommitments totaled $203.5 million in funds. Theremaining entities included on the FY 2010 projectPriority List were consulted and moved to the FY2011 list as appropriate.Goals andAccomplishmentsGoals and Objectives provide a road map foractivities conducted throughout the year. TheFY 10 Intended Use Plan set out fourteen short-termand five long-term goals for the year.Short-term Goals andAccomplishments1Provide financing to communities listed in thisplan that are under NPDES enforcement ordersto meet deadlines for municipal compliance in accordancewith Section 301(I)(l) of the Act.Status: Eighteen (18) of the thirty-four (34) projectsfunded during FY 10 were proposed as a result ofviolations to wastewater discharge permits and/orenforceable orders detailing a specific short-termcompliance schedule. This assistance will allow theseOklahoma communities to attain compliance withthe enforceable requirements of the Act and improveor maintain water quality in receiving streams andunderlying groundwater. The OWRB continued toimplement a process initiating immediate contactwith municipalities receiving new consent orders toinform and work with them in determining eligibilityand to provide funding in accordance with enforcementschedules.46 Loan AdjustmentsOklahoma Water Resources Board

2Provide financing to assist communities ineliminating water pollution problems, improvingwater quality in the State’s waters, and buildingsewage facilities needed to maintain surface waterand ground water quality standards.Status: Once constructed, all funded projects willcontribute to the long-term elimination of pollutionto surface and ground waters. As detailedin Attachment 3, loans were made to twelve (12)communities to reduce pollutant loads dischargeddirectly to rivers upstream of public and privatewater supply reservoirs. Twenty-one (21) projectswill reduce pollutants discharged from entities withdischarge points located on State priority streamsegments identified as threatened or impaired onthe Impaired Waterbodies List, Section 303 (d)(Oklahoma’s Integrated Water Quality AssessmentReport). Twenty-nine (29) projects are locatedwithin hydrologic basins where groundwater isdesignated as “very highly vulnerable” to contaminationfrom surface sources of pollution or withindrainage basins of “waters with recreational and/or ecological significance”, as designated in Oklahoma’sWater Quality Standards or affecting sourcewater protection areas.3Work with State/local agencies to identifycurrent gaps in the State’s NPS, stormwater,and Brownfields funding, identify potential CWSRFeligible projects, and develop appropriate financingstrategies, as necessary.Status: Oklahoma’s CWSRF can fund virtually anypollution control project that is included in the NPSManagement Program 2000 - 2015. Prior to fundinga NPS Project, however, State law requires thatthe Oklahoma Conservation Commission (OCC)must submit written concurrence on the proposedproject. The project must 1) meet a critical localor state need, as defined in the NPS ManagementProgram; 2) be needed to comply with the NPSManagement Program; 3) is designed to prevent,reduce, or halt pollution of the waters of the state;4) be cost-effective; and 5) be awarded on a costsharebasis, as required. With the ARRA GreenProject Reserve, OWRB consulted with OCC as thelead NPS agency. OCC reviewed the GPR proposalsand provided constructive comments and opportunitiesfor partnerships.Additionally, OWRB worked cooperatively withOCC, ODEQ and other federal, state, sub-state andlocal stakeholders to identify current gaps in theState’s nonpoint source financing and potential highpriority projects or regions of the state and to investigatevarious financing strategies to fund nonpointsource projects. Staff also met with the OklahomaClean Lakes and Watersheds Association in April of2010 to discuss ARRA funded GPR projects as wellas the future of the GPR in the CWSRF program.In SFY 2011, OWRB will continue to work withmunicipalities and other agencies to support andadopt watershed approaches to protect water/wastewater infrastructure as well as identify gaps infunding.4Meet the needs of current and potential borrowersby developing and implementing aCWSRF Market Strategy based upon the customersatisfaction survey conducted in FY 2007.Status: Although the vast majority of the feedbackto the surveys was positive, the OWRB FinancialAssistance Division identified four key areas of improvement:outreach, financing strategies, applicationassistance, and program efficiencies. Projectsrelating to these four focus areas have been identifiedand assigned. Each project varies in lengthfrom one to three years and has been incorporatedinto the Division’s marketing goals and objectives,which are reviewed and evaluated on an ongoingbasis.To address the communities’ need for furtherassistance in developing the CWSRF application,OWRB developed a project entitled the “ApplicationAssistance Program.” This program was vitalto ensuring project were able to meet the expeditiousrequirements under ARRA. The purpose ofthe program is to implement individual trainingor pre-application meetings for applicants whenneeded. An environmental specialist, a financialanalyst, and an engineer will visit an applicant andreview the loan process in detail. The team leaderwill then follow up with the applicant on a monthlybasis to determine if they need further guidance.5Provide 25% of all CWSRF loans to communitiesof less than 10,000 population for assistancein building more affordable sewage treatmentworks or implementing NPS pollution controlactivities.Status: Twenty-six percent (26%) of FY 2010binding commitments for long-term, low-interestloans were made to Oklahoma’s small communities,totaling $28 million. The cumulative total isabove the program goal and the CWSRF programis anticipated to continue providing below marketrateloans to help ensure project affordability andenvironmental health protection for small communitiesacross Oklahoma. The OWRB works veryclosely with USDA Rural Development to determinethe most appropriate source of funding forsmall communities. As a result of ARRA, a specialANNUAL REPORTFinancial Assistance DivisionAnnual Report47

ochure was developed which summarized theClean and Drinking Water State Revolving Fund(DWSRF) Loan Programs, as well as the USDA RuralDevelopment Water and Wastewater Loan andGrant Program.6Obtain maximum capitalization of the Fund forthe State in the shortest time possible.Status: This goal is being achieved on an ongoingbasis. The CWSRF five-year Project Priority Listidentifies more long-term project needs than availableCWSRF funds. To provide for these needs, theOWRB financing plan makes loan repayments, aswell as federal funds, available to obligate to newwastewater construction projects or to place in reservefor leveraged bond issues, sized to meet currentand future demand according to cash flow modeling.7Gain approval of applications for the FY 2009CWSRF capitalization grant appropriationsand have grant funds awarded within the 1st quarterFFY 2010.Status: The ARRA Capitalization grant was awardedon April 24, 2009. With the work associated withARRA, OWRB was delayed in applying for the FY2009 and FY 2010 capitalization grants. OWRB’s applicationfor the FY 2009 and 2010 CWSRF capitalizationgrants in March of 2010. An award has notbeen received to date.8Generate sufficient investment and loan interestearnings to retire state revenue bonds.Status: During FY 05, $7.5 million in state matchmonies for the 2003, 2004, 2005, and 2006 capitalizationgrants were provided by the Series 2004 RevenueBond Issue. Based on a detailed projected cash flowof the Bond Issue provided by The Public FinancialManagement Group, the Board’s Financial Advisorat the time, the state match debt was structured tocoincide with the repayment of the bonds. To ensureadequate coverage, the intention was for total incometo be slightly in excess of debt service. This scheduleand bond sizing provides for required bond repaymentwhile allowing the CWSRF program sufficientoperational capacity for upcoming projects onIntended Use Plans as well as the additional flexibilityto transfer CW funds to the DW Program whennecessary. Additionally, significant cost savings arepassed on to CWSRF loan recipients by leveragingfederal capitalization grant monies with larger bondissuances, reducing bond issuance costs. Sufficientfunds will be generated from interest and investmentearnings to retire the balance of the state matchbonds by April 1, 2025.9Gain EPA approval to reserve transfer authorityof an amount equal to 33% of the DWSRF capitalizationgrants between the DWSRF and the CWSRF.Status: This goal was met, as this request was madethrough both the CWSRF and DWSRF IntendedUse Plans. Oklahoma has reserved the authority totransfer 33% of the FY 03 through 09 capitalizationgrants, totaling over $29.9 million. During FY 10,approximately $8.7 million in funds were transferredfrom the CWSRF Cash Management Plan (CMP)Account to the DWSRF account. It is anticipated thatan additional $5.5 million will be available throughthe FY 10 DWSRF Capitalization Grant, increasingreserve authority to $5.5 million through FY 11.10Complete a revenue bond issue to meetfunding shortfalls and to provide matchingfunds for Federal Capitalization Grants, as necessary.Status: A revenue bond issue was not necessary duringFY 2010; however, one is being planned for FY2011 for the approximate amount of $175 million.11As part of the OWRB’s CWSRF MarketingInitiative Strategy develop a plan to implementworkshops held in conjunction with otherWater/Wastewater financing agencies, add a loan calculatorto OWRB’s website, and develop an outreachplan for notification of improvements, enhancements,or changes made to the CWSRF program.Status: During FY 2010, OWRB updated their websiteby adding an “easy to use” loan calculator foruse by any future borrower. The loan calculator isable to give a rough estimate on how much the borrowercan save by borrowing money thru OWRBprograms. The website also added several new linkssuch as EPA-ARRA website and OWRB-ARRA.OWRB also made presentations and also exhibitedin major conferences across the Oklahoma to promotethe CWSRF program. Any interested customerswere guided thru OWRB’s loan application andtechnical planning process. OWRB staffs conducteda meeting with new customers as needed.12Develop capacity model and other criteria toimplement 30-year financing term.Status: OWRB rules under the Oklahoma AdministrativeCode have been changed to allow for extendedterm financing for the Clean Water Program. A60-year capacity model was developed with the helpof OWRB financial advisors and was submitted toEPA for review along with other appropriate documentationfor approval. EPA conditionally approvedthe OWRB’s request to offer 30-year financing whenappropriate to communities beginning July 1, 2010.48 Goals & AccomplishmentsOklahoma Water Resources Board

13Support Congress’s directive under theAmerican Recovery and Reinvestment Actof 2009 to provide an unprecedented opportunityto improve wastewater infrastructure across the nationwhile creating jobs for our citizens.Status: The ARRA requires priority be given toprojects that will be “ready to proceed” to constructionwithin 12 months of the date of enactment,February 17, 2010. Oklahoma had 34 CWSRFagreements with contracts executed by January15, 2010. In anticipation of compliance with thisrequirement, OWRB consulted with all potentialrecipients with projects on the project priority listby letter and phone to make determination as towhich of these projects can be started and expeditiouslycompleted.14Solicit projects that address green infrastructure,water or energy efficiencyimprovements or other environmentally innovativeactivities.Status: The goal with ARRA was to have at least20% of funds directed towards projects that met theguidelines of the Green Project Reserve. On April16, 2009, OWRB announced a solicitation acceptingproposals for additional green projects throughMay 16, 2009. The notice was posted on OWRB’swebsite, mailed to service providers and communitiesas well as state and federal reviewing agencies.It was also distributed via mail and e-mail to nontraditionalorganizations such as state agencies,environmental organizations, and universities forconsideration and posting on their websites. As ofFebruary 17, 2010, OWRB funded eleven (11) projectswith green components totaling $7,904,593.Financial Assistance DivisionLong-term Goals andAccomplishments1Assist borrowers in complying with the enforceablerequirements of the Clean Water Actto reach the goal of eliminating discharge of pollutantsinto the State’s waters.Status: This goal is being accomplished on anongoing basis. As detailed in short-term goal No. 1,financial assistance provided through the CWSRFfocuses on providing loans to communities withwastewater discharge permit violations and/or consentorders detailing a schedule of compliance. ForFY 2010 fifty-two percent (52%) of the new commitmentsmade were for projects required to meet aState or federal enforceable construction schedule.CWSRF assistance will contribute to bringing theseOklahoma communities into compliance with theenforceable requirements of the Act.The OWRB continued to provide technical assistanceto communities with projects listed onthe FY 2010 IUP, but were not ready to proceedto loan commitments during the year. Many ofthe projects not funded in FY 2010 have beenmoved to the FY 2011 IUP and are scheduled tobe funded during FY 2011.2Assist in the maintenance, restoration andprotection of beneficial uses identified inOklahoma’s Water Quality Standards to provide forthe propagation of fish and wildlife and the protectionof water and recreational resources in and onwaters of the State.Status: This goal is accomplished on an ongoingbasis. Loans made during FY 10 assist communitiesin 1) eliminating sewage system bypasses which degradethe integrity of the surface water of the statethrough providing greater storage capacity and/or 2) providing additional levels of treatment toreduce pollutant loads to effluent receiving stream.Loan commitments and subsequent constructiondirectly accomplish this goal by enabling municipalitiesto discharge water which meets dischargepermit requirements in place to meet the “fishable/swimmable goals” of the Clean Water Act andOklahoma’s Water Quality Standards for surfaceand groundwater. By providing increased levels oftreatment prior to discharge into surface waters ofthe state, fish and wildlife habitat is better protectedand recreational uses are enhanced. Along withproviding construction and refinancing loan fundstoward this goal, the Board continues to support itsCWSRF Water Quality Standards ImplementationPlan (“WQS Plan”).CWSRF Water Quality Standards ImplementationPlan – As part of a long-term State initiative,the CWSRF maintains a plan detailing how theprogram supports Oklahoma’s WQS. As detailedin the Plan, the primary function of the programis to fund wastewater projects that 1) maintainwater quality where beneficial uses are supported;2) remove threats to water quality where beneficialuses are in danger of not being supported; and 3)restore water quality where beneficial uses are notbeing supported. Program activities or processessupporting OWQS include project prioritization,planning and environmental document review/approval, and design and construction review andoversight. Updates to the Plan included the additionof Oklahoma’s integrated priority rating systemused to rank projects on the basis of environmentalbenefits, including 1) a water quality protectionfactor (preventative measures against degradationAnnual ReportANNUAL REPORT49

of high-quality water bodies and waters meetingbeneficial uses); 2) a water quality restoration factor(restorative measures on waters not meeting beneficialuses); 3) project type factor (whether the projectwill eliminate a documented health threat), and 4)a general readiness to proceed factor. The ratingsystem works with other state agencies priority waterprotection plans by the integration of non-pointsource priority watersheds and other approved waterquality remediation plans, TMDLs, or 208 waterquality management plans.3Support EPA’s Watershed Approach and StrategicPlan and assist the State in meeting waterquality goals identified in the Continuing PlanningProcess and Nonpoint Source Management Programto reduce or eliminate water quality threats in Oklahoma’spriority watersheds.Status: The CWSRF program assists in implementationof these strategic plans and their water qualitygoals that in turn work towards meeting OklahomaWater Quality Standards and the “fishable/swimmable”goals of the Clean Water Act.Program staff coordinates with numerous agenciesand organizations, including the Office of theSecretary of the Environment, Oklahoma ConservationCommission, Oklahoma Department ofEnvironmental Quality, Oklahoma Scenic RiversCommission, Oklahoma Corporation Commission,Oklahoma Association of Conservation Districts,National Resources Conservation Services, OklahomaMunicipal League, and Oklahoma Rural WaterAssociation. Within OWRB, CWSRF activities arecoordinated where possible between water qualitymonitoring, assessment, water quality standards, andpermitting staffs. Staff is also involved with otherwater related organization including the OklahomaClean Lakes and Watersheds Association, an associationof water quality scientists and state professionalsfrom state agencies and universities. Work on theNational State/EPA SRF Workgroup’s EnvironmentalBenefits Task Group has also provided an opportunityfor CWSRF environmental staff, along withUSEPA to meet with these entities.The coordination with Oklahoma’s environmentalagencies and conservation organizations providesstaff with the latest information on water quality issuesaround Oklahoma so that we may better targetmarketing and funding in those areas. Opportunitiesfor further identifying priority projects include1) attending Water Quality Standards rules revisionmeetings, 2) involvement with Oklahoma’s NRCSState Technical Committee, 3) meetings with theOCC and NRCS to identify NPS funding gaps andODEQ and Oklahoma Corporation Commission toidentify stormwater and Brownfields projects, and4) presenting at the annual conferences includingbut not limited to the State Brownfields Conference,Oklahoma Clean Lakes and Watersheds Association,and Natural Resources Management Conference.4Maintain the fiscal integrity of the CWSRF toensure it remains viable and self-perpetuating tomeet the long-range water quality needs of the State.Status: This goal is being achieved on an ongoingbasis through stringent program procedures andfinancial controls as well as continuous repaymentof previously issued loans that provide a “renewable”source of funding for future loans.To maintain the fiscal integrity of the CWSRF, theOWRB performs a variety of processes including,providing credit reviews and technical assistance toloan recipients, establishing fiscal controls, and maintainingfinancial accounts within the CWSRF sufficientto minimize financial risk. The OWRB’s creditreview of CWSRF applications and the OWRB’s proceduresfor monitoring loan conditions and collectingpayments of interest and principal have enhancedthe fiscal integrity of the program. Traditionally,each of these processes has ensured that paymentsfrom loan recipients are billed and paid in a promptmanner, thus enhancing the fiscal integrity of theCWSRF. To date the program has maintained a zerodefault loan repayment record (see Attachment 4b.Aging Schedule). Should a default occur, the crosscollateralizationstrategy included in the MasterTrust Agreement will allow excess CWSRF revenuesto be available to cure any DWSRF bond paymentdefault or reserve fund deficiency, or vice versa. TheOWRB also maintains a Cash Flow Model, whichdemonstrates perpetuity (see Attachment No. 14 forspreadsheet, including assumptions).5Maintain the perpetuity of the CWSRF throughmaintaining net assets equal to federal capitalizationgrants and state matching funds.Status: The OWRB has defined the perpetuity of theCWSRF as “maintaining an amount in the CWSRFequal to the capitalization grants and state matchindefinitely.” When investment and loan interestearnings by the CWSRF meet or exceed the administrativefunds withdrawn from the CWSRF thenthe OWRB can demonstrate that this goal has beenmet. During FY 10, investment earnings and interestearned on loans totaled 1.35 times greater than totalfunds withdrawn from the CWSRF for administrativeexpenses, interest payments on bonds, andtrustee fees.The OWRB’s target interest rate, approximately 60%of market rate, provides financial incentives for water50 Goals & AccomplishmentsOklahoma Water Resources Board

quality improvements through participation in theprogram. This target rate, combined with a sound,innovative long-term financing plan, should helpmaintain the buying power of the fund in perpetuity.The financial indicator for perpetuity, sustainabilityor retained earnings, shows a 19.7% cumulativeretained earnings as a percentage of contributedcapital (Attachment 9).Fund FinancialManagementFund Financial Status1Binding Commitments & AssistanceActivityAs detailed in Attachment 1, the OklahomaCWSRF entered into binding agreements for 34projects, and a decrease in funds to two (2) projectsfrom previous years. Assistance to Section212 sewer construction and refinancing projects,including adjustments, totaled over $185.2 million.FY10 binding commitments (excluding refinancingloans) reportable to EPA’s National InformationManagement System (NIMS) totaled over $191 million.No Section 320 projects were funded. Attachments1, 2, 3 and 6 illustrate assistance levels andfinancial activity of the fund.2Sources, Uses and Guarantees ofFundsAttachment 4a presents sources and uses of funds.Sources totaled approximately $147.8 million. Federalfunds are drawn as construction is completedand reimbursement requests are submitted and willcontinue to be drawn down as quickly as possible.OWRB has established bypass procedures withinOWRB Rules which along with the IntegratedPriority Rating System guides project funding.The bypass procedure states “A project on thefundable portion of the list may be bypassed if itis determined that the project will not be ready toproceed during the funding year. This determinationwill be made on projects that are unableto meet the schedule established on the prioritylist. The applicant whose project is affected shallbe given written notice that the project is to bebypassed. Projects that have been bypassed maybe reinstated on the funded portion of the list ifsufficient funds are available, and the applicantcompletes the necessary tasks to proceed. Fundswhich become available due to the utilization ofthese bypass procedures will be treated in thesame manner as additional allotments.”Total expenditures or “uses” of funds, totaled $82.9million. Remaining Series 2004 bond proceedswere obligated to construction projects during FY09 and an anticipated Series 2011 bond issue couldbe closed in the fourth quarter of FY 11. No fundswere used for guarantees. See Attachment 4a andAttachment 14 for additional details.3A-133 Audit, Compliance andFinancial AuditsArledge & Associates Inc., Certified Public Accountantswere retained to audit FY 10 CWSRF financialstatements for the program. A copy of the auditedfinancial statements, along with the financial statementsof the administrative fund held outside theCWSRF will be submitted to EPA when available.An A-133 Audit was conducted for SFY 2010.Financial Indicators and Interest Rate SubsidyOver the past several years EPA and the State SRFWorkgroup have developed a process to measurethe pace of the CWSRF Program. In an effort tomeasure the pace, Oklahoma’s CWSRF incorporates“financial indicators” into annual program review.Attachment 9 presents five key measures that reflectthe different financial objectives of the SRF andprovides broad indicators of how the CWSRF ismeeting them.In addition to these five numeric indicators, anadditional indicator, “Estimated Interest RateSubsidy” provides a description of the subsidy providedby the CWSRF program’s AAA rated bondscompared to interest rates available to communitieswhose local debt would fit into a given creditrating category. Although the CWSRF bonds carryan average interest rate of 4.33%, the OWRB offersCWSRF loans at an interest rate equal to 60% of theMunicipal Market Daily (MMD) AAA scale spotrates for each year though maturity with 55 basispoints added to compensate for risk. The interestrate is calculated 10 days prior to loan closing and isprovided to communities regardless of credit quality.On average our interest rates have stayed similarto past CWSRF interest rates and have averaged2.1% - 2.8% range.This way of calculating interest rates provides aninterest rate savings of approximately 2.8% for communitiesthat could obtain the same interest rateas the OWRB. For communities that cannot obtainsuch a high credit rating, the market interest rateavailable to them is higher and therefore the 2.8%loan rate offers a greater subsidy in comparison tothe market. Subsidies ranged from 1.3% for highinvestment grade communities to 2.4% for non-ANNUAL REPORTFinancial Assistance DivisionAnnual Report51

investment grade communities as shown in the table.The market rates listed are those that were availableat the time the CWSRF bonds were sold. During thetwo-year period since the bonds were sold whenmarket rates were higher, the subsidy was even larger.If interest rates rise, the size of the subsidy providedwill grow.State Matching FundsThrough FY 2010, Oklahoma received federalcapitalization grant awards totaling $250.6 million,matched in previous years by $43.8 million in Statefunds. Attachment 13 lists sources of State matchfunding for FFY capitalization grants awardedthrough the Clean Water Act from 1988 through2008. As a part of the Series 2004 Bond Issue, $7.5million in bonds were designated to provide Statematching funds to cover the 20% match for anticipatedFFY 03, 04, 05, and 06 capitalization grants.In January 2010, the Board reallocated $3.9 millionof bond proceeds from the 2004 Bond Issue to Statematching funds for the 07, 08 and 09 capitalizationgrants. Since July 24, 1996 the OWRB has expendedavailable State matching funds prior to expendingfederal funds for the convenience of accountingfor the drawdown of State funds to ensure Federalcapitalization grant funds are not drawn down priorto State funds, in accordance with Federal regulations.These regulations, found in 40 CFR 35.3135,stipulate that at a minimum, State match funds proportionalto the State match share (17% of combinedState match and capitalization grant funds) must beexpended as Federal funds are drawn down. Thisapproach is not intended to alter any relationship,legal or otherwise, that would have existed had theprescribed draw down ratio been followed.Proposed ProgramInitiativesModifications of the ProgramOWRB received EPA’s approval to begin offering30-year extended term financing for disadvantagedcommunities July 1, 2010.Long-term and Short-term Goals forFuture Intended Use PlansTo provide for better management and greaterflexibility of the CWSRF, as well as the DWSRF,the OWRB will again request EPA approval toreserve the right to transfer funds, of up to 33% ofthe DWSRF capitalization grant, between the twoprograms. The OWRB anticipates that transfersbetween the CWSRF and DWSRF may be necessaryin order to provide adequate funds to meetthe demand in future years. Any transfers will beimplemented in accordance with state and federallaws and program regulations.No changes in the loan interest rate subsidy are anticipated,however, the OWRB is currently utilizingan independent financial advisor to review all OWRBlending programs and identify the strategy’s longtermimpact on the health of the fund, along withthe financial aspects of the loan application and loanmonitoring processes.Rule ChangesTitle 785 of the Oklahoma Administrative Code,Chapter 50 Subsection 9 contains regulations forOklahoma’s CWSRF Program. Changes were madeduring SFY 2010 to incorporate changes to EPA’sNEPA process. The changes were approved by EPAand became effective on July 1, 2010.Provisions of theOperating Agreementand Grant ConditionsThe OWRB has agreed to all the terms and conditionslisted in its Operating Agreement (OA) withEPA as well as the annual capitalization grant agreements.Many of the terms and conditions are selfexplanatory and need no further explanation whileother conditions need further description.Adherence to OperatingAgreement52 Provisions of the Operating Agreement & Grant ConditionsOklahoma Water Resources Board123Modification to the OA – No changes weremade during FY 10.Timing of Application Review – OWRB hasmet this term of the operating agreement.Roles and Responsibilities – State legislationgives the OWRB authority to develop regulationsto implement state environmental reviewprocedures (“SERP”). These regulations, adopted bythe Board, were included in the regulations implementingthe CWSRF.45Maintain a Competent Organization andAccept EPA Training – During SFY 2010, theOWRB maintained staffing with skills necessaryto assure the CWSRF operates in a lawful manner,with full disclosure, and in compliance with federaland state programmatic requirements and to assurethat all projects met acceptable technical, environ-

mental and financial requirements as established orreferenced in the OA/capitalization grants.The Agency retained the services of a financialadvisor during the year to assist in developingand refining CWSRF financing strategies,portfolio management, cash flow modeling, andprogram operations.The OWRB attends various training from EPAand other sources. The following is a partial list oftraining sessions/conferences which were budgetedand attended to keep the organization up-to dateon the latest technologies and trends in wastewaterinfrastructure design, financing, and on legislationand program requirements.• Oklahoma Rural Water Association AnnualConference• Oklahoma Municipal League AnnualConference• National Association Bond LawyersConference• NEPA Training• Oklahoma Municipal League Water Summit• Oklahoma Rural Water AssociationConvention• Governor’s Water Conference• Water Day at the Capitol• Drug Free Workplace• OIG Fraud, Waste and Abuse Training• Fact Meeting (Qtrly)• SRF 101 Workshop6• Region 6 SRF Annual Meeting• Infrastructure Financing Software Training• Council of Infrastructure FinancingAuthorities Fall and Spring Conferences• EPA/State Workgroup Meetings (Fall/Spring)• How to Identify Bid Rigging Training• U.S.D.A. Engineer’s ARRA Meeting• Green Building Conference• EPA/ARRA Training• Energy Management Workshop• Various Buy American, Green Infrastructureand Davis Bacon WebcastsManage CWSRF Program – The OWRBmanaged the CWSRF program in accordancewith the OA, terms of the grant agreements, theCWA, as amended, 40 CFR Part 35 Subpart K andapplicable regulations.7Maintain Separate CWSRF Account – TheOWRB maintains a current and separate accountfor the CWSRF. A revenues and expendituresstatement is prepared by staff, audited by outsideauditors and included in the financial statements inAttachment 14.8Payment Schedule – The OWRB has enteredinto sufficient binding commitments to coverthe schedule of payments from the EPA -ACHSystem (see Attachment 6).9State Matching Funds – The OWRB issued$7.5 million in bonds to provide match for theFFY 2003, 04, 05, and 06 capitalization grants andan overmatch for future grants. The 2007, 08 and09 capitalization grants were matched with bondproceeds from the 2004 Bond issue reallocation inJanuary 2010.10Binding Commitments – By the endof FY 10, cumulative binding commitmentsof large- and small-community constructionand refinancing of non-CWSRF debt totaled over$800.8 million, 272% above the minimum requiredcommitments of $294.3 million as detailed in Attachment6.11Timely Expenditures – The FY 2010 IUPidentified sufficient projects to obligateexisting funds and maintain a program reserve. TheSeries 2004 bond issue was sized to meet the fundingdemand through the majority of 2010.12Enforceable Requirements of the Act –Section 602(b)(5) requires that “all fundsin the fund as a result of capitalization grants(including the capitalization grant, repayments ofthe first round of loans awarded from the grant, andstate match) will first be used to assure maintenanceof progress toward compliance with enforceabledeadlines, goals, and requirements of the Act, includingthe municipal compliance deadline.” Priorto the award of the first capitalization grant in 1989,the State certified that all projects listed as NationalMunicipal Policy Projects (under enforcementactions) had been previously funded. This requirementwas, therefore, considered to be met.13Title II Equivalency Requirements – Accordingto Section 602 (b)(6) of the federalCWA, Title II equivalency requirements listedin this section no longer applied after October 1,1994. The Board met this requirement by approvingbinding commitments to equivalency projects inANNUAL REPORTFinancial Assistance DivisionAnnual Report53

sufficient numbers to satisfy the equivalency provisionsof the federal capitalization grants for thosegrant payments received prior to October 1, 1994(see Attachment 2 & 6).14State Law and Procedures – OWRB expendedgrant funds in accordance with allstate laws and procedures.15State Accounting and Audit Procedures— The OWRB utilizes fiscal controls andaccounting procedures, including the latest editionof “Standards for Audit of Governmental Organization,Program, Activities, and Functions,” publishedby the GAO, sufficient to assure compliance. In orderto verify that the CWSRF accounting proceduresconform to “generally accepted accounting principles,”the OWRB procured an independent auditorto test compliance with “generally accepted accountingprinciples.” Financial audit reviews with auditedfinancial statements are included in Attachment 9.16Intended Use Plan (IUP) – OWRB followedOklahoma Administrative Code Title 785Chapter 50 in preparing the FY 2010 IUP and subsequentamendments.17Capitalization Grant – The FY 07 and 08grants were awarded on September 24, 2009.The ARRA Capitalization grant was awarded onApril 24, 2009.18Repayment to the Fund – The OWRBcollected principal payments in accordancewith interim construction, long-term and small communityloan agreements. As noted on Attachment 4b,Aging Schedule FY 10, there were no cases of receiptof principal and interest payments over 90 days pastdue and no defaults were recorded.19Financial Assistance Provided by CWSRF– All loans made were consistent withplans developed under CWA Section 205(j), 208,303(e) and 319.20Disadvantaged Business EnterpriseProgram – In response to changes in theDisadvantaged Business Program, OWRB modifiedits MBE/WBE program to be consistent with federalrules. The new OWRB forms were first implementedin January 2009 and stress that compliance is notachieved by meeting the MBE/WBE targets. Complianceis measured instead by ensuring that the sixaffirmative steps are implemented to the greatestextent possible. FY 10 MBE/WBE procurement as apercentage of all large-community loan procurementis presented in the following tables, along with thegoals negotiated with EPA for the four procurementcategories. As required by 40 DFR Part 33, the tabledocuments Oklahoma CWSRF as it relates to thetotal Capitalization Grant.21Disbursements/Third Quarter Scheduleand Commitments – Attachment 11provides a comparison of projected federal disbursementsand actual disbursements.22Fund Administration – The CWSRF is administeredin accordance with the EPA OAand all other provisions and conditions of the EPAcapitalization grant agreements.23FY 10 MBE/WBE for Project Procurement(based on 120% of CAP Grant)Minority Business EnterpriseProject Management and ReviewProcedures –The CWSRF was managed inaccordance with applicable CWSRF state procedures.Category Construction Equipment Services SuppliesGoal 10.62% 11.48% 16.84% 12.00%Procurement Amount $1,056,817 $132,500 $65,274 $2,737,049% Achieved 17.45% 2.19% 1.08% 45.20%FY 10 MBE/WBE for Project Procurement(based on 120% of CAP Grant)Women Owned Business EnterpriseCategory Construction Equipment Services SuppliesGoal 9.01% 13.51% 30.94% 31.00%Procurement Amount $869,100 $0 $65,000 $1,178,131% Achieved 14.35% 0.00% 1.07% 19.45%TABLE 2TABLE 354 Goals & AccomplishmentsOklahoma Water Resources Board

CommunityCWSRF Environmental Decisions in 2010Loan NumberEnforcementSchedule OrderDecision TypeTABLE 4Grove MSA ORF-07-0008-CW NO CE 07/14/09Collinsville MA ORF-09-0009-CW YES CE 07/14/09Ponca City UA ORF-09-0011-CW NO CE 07/14/09Oklahoma City WUT ORF-09-0021-CW YES FNSI/EA & CE 07/14/09Piedmont MA ORF-09-0014-CW YES FNSI/EA 08/11/09Stillwater UA ORF-09-0024-CW YES CE 08/11/09Del City MSA ORF-09-0022-CW NO CE 08/11/09Muskogee UA ORF-09-0020-CW YES CE 08/11/09Owasso PWA ORF-09-0003-CW NO CE 08/11/09Owasso PWA ORF-09-003-CWA NO CE 08/11/09Owasso PWA ORF-09-0007-CW NO FNSI/EA 08/11/09Ardmore PWA ORF-09-0018-CW NO CE 09/08/09Grand Lake PWA ORF-09-0004-CW NO CE 09/08/09Sperry USA ORF-09-0023-CW NO CE 09/08/09Duncan PUA ORF-09-0016-CW NO CE 09/08/09Lawton WA ORF-09-0015-CW NO CE 09/08/09Sapulpa MA ORF-09-0010-CW YES FNSI/EA 10/13/09El Reno MA ORF-09-0025-CW YES CE 10/13/09Guymon UA ORF-09-0013-CW YES FNSI/EA 10/13/09Walters PWA ORF-09-0005-CW YES FNSI/EA 10/13/09Henryetta MA ORF-09-0029-CW YES CE 10/13/09Sulphur MA ORF-09-0030-CW YES FNSI/EA 12/08/09Tulsa MUA ORF-10-0001-CW YES CE 04/13/10Enid MA ORF-09-0019-CW YES FNSI/EA 05/11/10Hobart PWA ORF-07-0007-CW NO FNSI/EA 06/08/10Okmulgee MA ORF-09-0012-CW YES CE 06/08/10Date24Sanctions and Compliance – No sanctions/correctiveactions were requiredduring the year.25National Reporting Needs – OWRB suppliedEPA with the required set of projectleveldata and documentation, including the ProjectPriority List, Intended Use Plan, Third Quarter DisbursementSchedule and project loan informationfor the National Information Management System.26Records – The OWRB maintained documentsand made them available to thepublic in accordance with federal and state regulations.27Environmental Review - The OWRB conductedenvironmental reviews and determinationswere executed and distributed using theEPA approved State Environmental Review Processprior to funds being provided for the projects identifiedin Table 4. In addition to these environmentaldecisions, the OWRB initiated several planning andenvironmental reviews that will result in environmentaldecisions being issued in FY 2011.28Consistency With Planning – The OWRBmaintains engineer report guidance documentsto ensure CWSRF project planning is consistentwith CWA Sections 205(j), 208, and 303(e).29Grant Agreement Administrativeand Programmatic ConditionsTerms and conditions for all capitalization grantawards are summarized in the following. Manyconditions have been met and need no explanation,while others that have been met are described inthe following pages.ANNUAL REPORTFinancial Assistance DivisionAnnual Report55

AcknowledgementsANNUAL REPORTThe Financial Assistance Division would like to thank our FY 2010 assistance recipients as well as past recipients forhelping making Oklahoma’s Clean Water State Revolving Fund Program a success.Thank you to the FAD technical and financial staff for preparation of the project summaries, attachments, and review ofthe report. Special thanks to Owen Mills and the OWRB Public Information Staff for their vision with the formatting ofthis report. And, thank you to the Kansas Scenic Byways program for the design inspiration.Finally, tremendous thanks to the OWRB’s Financial Assistance Staff for their dedication and hard work over the lastyear. Funding the equivalent of three years worth of projects within a twelve month period was a daunting task that youcompleted with flying colors!Cover photo: Guymon Wastewater Treatment Plant - Barry Fogerty, OWRBFinancial Assistance DivisionAnnual Report57

58 Oklahoma Water Resources Board