Alberta Municipal Water/Wastewater Partnership – How to apply

Important dates

Overview

See which projects were approved under government’s recent $150 million water grant announcement: Water Grant – Approved Projects (PDF, 288 KB) .

The Alberta Municipal Water/Wastewater Partnership (AMWWP), which launched in 1991, provides cost-shared funding to eligible municipalities to help build municipal facilities for water supply and treatment, and wastewater treatment and disposal.

Funding

Program funding is determined each budget cycle.

Eligible projects can receive up to 75% of project costs. Funding is calculated as a percentage of eligible project costs (rounded to 2 decimal points) based on the municipality’s official population when the grant is approved.

For hamlets, population is based on a statutory declaration from the municipality applying on the hamlet's behalf.

Populations and grant percentages are determined at the time of approval and do not change during the project.

Eligibility

Eligible applicants

Individual municipalities can apply for funding to support standalone facilities.

• cities (under 45,000 population)
• towns
• villages
• summer villages
• regional commissions
  • regional commissions are eligible to receive funding for multi-municipal commission-owned water supply and treatment and wastewater treatment facilities as outlined in the project eligibility criteria below
  • municipalities that are part of a regional commission but require their own facilities can submit individual applications for funding
• counties, municipal districts, Metis Settlements, and the Special Areas responsible for making applications on behalf of communities within their jurisdiction that have been:
  • deemed an eligible hamlet by Alberta Transportation and received prior approval under other water/wastewater programs, or
  • deemed an eligible hamlet by consisting of a group of 10 or more occupied dwellings, the majority of which are on titled parcels of less than 1,850 square metres of land with a:
    • defined boundary
    • distinct name
    • provision for non-residential uses

Country residential subdivisions, condominium associations and private developments are not eligible hamlets.

Rural municipalities should ask Alberta Transportation if a hamlet is eligible for funding prior to project implementation.

Rural municipalities can contact Alberta Transportation to request that a community be added to the official list of eligible hamlets. The request must include the population and a plan showing:

• parcel size
• land use designations
• community boundary

Eligible projects

The department will assess eligibility of proposed projects. Funding may be available for the following projects:

Water supply and treatment

• raw-water intakes and wells
• raw-water supply lines to storage facilities
• raw-water storage facilities
• raw-water supply lines from storage facilities to treatment facilities
• water treatment facilities
• treated-water supply line from the treatment plant to the first connection point on the distribution system
• treated-water storage facilities and related works

Wastewater treatment

• outfall sewer from last connection point on the collection system to the wastewater treatment facilities
• wastewater treatment facilities
• outfall sewers from the wastewater facilities to the point of discharge or disposal and related works
• septage receiving stations at wastewater treatment plants, up to a limit of 20% of the cost of the facility and 20% of the capacity of the facility

Related projects

• small projects "at the plant" which would enhance the treatment process, such as chlorination or fluoridation
• planning and/or design studies directly related to an eligible project
• general municipal infrastructure planning studies for eligible municipalities under 10,000 population

Criteria

• Municipalities are required to carry out projects on a contract basis.  Alternate procurement approaches which align with obligations under trade agreements, such as P3 delivery can be considered.
• All services, material and equipment used on funded projects must be from the private sector.
• Municipalities are encouraged to support Alberta companies supplying goods and services to the waterworks and wastewater industry.
• The applicant must demonstrate that the project is cost-effective and can be economically justified compared to other facility solutions.

Optional application information

• Provide full lifecycle costs of the project (include initial capital costs, maintenance and operating costs).
• Asset management planning information.
• Identify any innovative construction material or water/wastewater techniques that will potentially reduce construction and operating costs.

Ineligible projects

The following projects are not eligible for this grant:

• updates to municipal infrastructure planning studies
• water distribution and/or sewage collection systems

Eligible costs

This grant can cover the following costs:

• construction costs
• right-of-way acquisition and/or land costs, including expropriation costs
• relocation and adjustment of associated utilities
• engineering costs
• survey fees
• legal fees
• advertising for tenders
• other costs (such as audit fees)
• interim financing costs on unpaid grants from the time of project completion until the grant is paid

Municipalities should contact Alberta Transportation to determine eligibility of other related costs.

Ineligible costs

This grant will not cover the following costs:

• municipal labour and equipment
• administration costs, such as municipal employee and council member salaries and office administration costs
• GST
• water licence costs
• interim financing costs (with the exception of interim financing costs on unpaid grants from the time of project completion until the grant is paid)

How to apply

Step 1. Select project

Municipalities should contact Alberta Transportation prior to applying to discuss the eligibility of proposed projects.

The municipal council must make a motion to apply for funding for the project.

Where projects are not approved, applicants are required to re-affirm their request for funding each November to ensure cost estimates are up to date.

Step 2. Complete the application package

Alberta Transportation will work with the municipality to review the scope of work and the cost-effectiveness of the project.

Regional Directors and Infrastructure Managers in Alberta Transportation’s regional offices are available to provide advice to the municipality during the preparation of the project proposal.

Include the following documents in the application package:

• a letter to the Regional Director in the Alberta Transportation Regional Office from each member municipality or the regional commission requesting funding
• request for funding
• project plan
• project description
• project rationale (design criteria)
• proposed implementation schedule
• detailed cost estimates following the cost estimate requirements
• outline of how the municipal share of project costs will be funded
• rate base for water and wastewater service and the extent of metering
• method of procurement
• asset management planning information (where applicable)
• outline any innovative construction materials used or techniques

The municipality must enter the project information in the Municipal Grants Management Application.

Step 3. Submit the application package

Submit the application package in person email or mail to your local Alberta Transportation Regional Office representative.

Find your region by checking the Municipalities, Locations and Corresponding Alberta Transportation Regions list (PDF, 608 KB).

After you apply

Applicants will be notified in writing of the project's eligibility for funding.

Project approval is conditional upon funding availability and the suitability of the project.

Applications will be evaluated based on:

• project size
• design
• staging
• need
• cost-effectiveness
• municipal population (actual and projected)

The following will also be considered:

• date the application is submitted
• type of project, prioritized as follows:
  • Priority 1: health-related improvements involving upgrading water treatment or water supply facilities
  • Priority 2: environmental protection improvements related to wastewater treatment projects affecting the environment
  • Priority 3: system and development related improvements, such as safety, fire protection and operational improvements

Step 4. Sign memorandum of agreement

Alberta Transportation, in consultation with the municipality, will select a payment method for each approved project. Larger, more complex projects will require a formal agreement with the municipality.

Alberta Transportation will develop a memorandum of agreement outlining its responsibilities and the municipality’s responsibilities. The agreement will include a grant calculation chart and grant payments schedule.

The mayor or reeve and chief administrative officer must sign 2 copies of the agreement on behalf of the municipality. The signed copies must be witnessed or sealed and then returned to the department for execution.

Step 5. Select construction basis

Work on the funded project must be done on a contract basis.

For smaller projects, it may be more feasible to complete the work on a day labour basis. The municipality must receive prior approval from Alberta Transportation if it wants to use this option.

Work undertaken with municipal forces (equipment and labour) is not eligible under the program.

When renting equipment for construction on a day labour basis, the rental rates for equipment must not exceed the current year rental rates as published in the Alberta Roadbuilders and Heavy Construction Association’s Equipment Rental Rates and Membership Roster.

The municipality must advertise tenders for projects undertaken on a contract basis.

Step 6. Accept lowest bid

Alberta Transportation follows the principle of awarding work to the lowest bona fide bidder.

Municipalities are required to do the same and award work to the lowest bona fide bidder when tendering projects funded by the department.

If the municipality accepts a higher bid without prior approval from the department, the municipality will jeopardize the grant funding for its project.

If the municipality believes there are exceptional circumstances where the lowest bid is unacceptable, it must submit a written report to Alberta Transportation requesting approval to award to other than the low bidder.

The report must clearly explain the municipality’s reasons for the recommendation and provide details of all tenders received. The department will review the report and advise the municipality how it will impact the grant funding.

The municipality must provide the following information before receiving payment:

• a summary of tenders
• price schedule of the selected tender
• estimated construction start date
• project costs to date

Step 7. Conduct work

The municipality is responsible for:

• financing the entire cost of the project
• getting all necessary permits, licences, authorities, property easements and lands
  • municipal water and wastewater projects are subject to the provisions of the Environmental Protection and Enhancement Act. Before receiving any funding, the municipality must contact Alberta Environment and Parks to get approvals
• retaining competent engineering expertise as required to meet provincially acceptable design, construction and environmental standards
• building the project at sole risk in accordance with the project's plans and specifications
• assuming all liability for damage claims related to the project

Step 8. Receive advance payment(s)

After Alberta Transportation has reviewed the project status it may provide the municipality with an advance payment which is a portion of the estimated grant.

Depending on the program’s cash flow and the status of project, the amount and timing of funding payments may vary.

The timing of the payments can be structured to flow with the construction of the project as determined during the approval process.

The final payment is then issued upon completion and verification of costs.

Step 9. Deposit funds in separate account

Funds received from Alberta Transportation that exceed current expenditures must be invested in a separate account.

The interest earned from these funds must be applied to reduce the total project costs, excluding GST.

Project revenue earned through the investment of these funds will be deducted from project costs before the grant calculation is made.

Contact Alberta Transportation for more information on this interest policy.

Step 10. Notify when project is 80% complete

The municipality must keep Alberta Transportation regularly informed of the project’s progress.

Before receiving additional payment, the municipality must notify the department in writing of costs incurred to date when the project is nearly 80% complete.

Other advance payments may be available over the course of the project, depending on project size and funding availability.

Step 11. Complete work

Once the municipality is satisfied that the project is complete, it must notify Alberta Transportation and prepare its submission for final payment.

The department may either inspect the project work or ask the municipality to provide evidence that a professional engineer completed an inspection.

Step 12. Submit final payment claim form

The municipality must submit the following information to Alberta Transportation to receive the final grant payment after the project is complete:

• final payment claim form with project invoices and revenues
  • construction and engineering costs must be itemized separately
• summary of details of interim financing charges, if applicable
• details of interest earned on the project
• confirmation, on municipal letterhead, that the project is complete

The municipality must advise the department of any cost changes that occurred.

Step 13. Receive final payment

Alberta Transportation will review the final claim before making the final payment to the municipality.

The department may audit projects that receive grant funding.

Reporting

Revisions

The municipality must notify Alberta Transportation of project cost or scope changes as soon as possible.

The department will review the information and may approve funding and scope changes that fall within the eligibility limits. Scope changes and cost increases will be considered new projects and may be eligible for future grants.

Grant recipients

AMWWP grant recipients

Contact

For more information about the Water for Life program, find your region by checking the Municipalities, Locations and Corresponding Alberta Transportation Regions list (PDF, 608 KB), then contact the Infrastructure Manager in your local Alberta Transportation Regional Office:

Central Region

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 403-340-5166
Fax: 403-340-4810

Address:
Infrastructure Manager
4th Floor, Provincial Building
4920 51 Street
Red Deer, Alberta  T4N 6K8
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North Central Region

Hours: 8:15 am to 12:00 pm and 1 pm to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-674-4700

Address:
Infrastructure Manager
4513 62 Avenue
Barrhead, Alberta  T7N 1A5
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Peace Region

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-624-6280
Fax: 780-624-2440

Address:
Infrastructure Manager
1st Floor, Provincial Building 
9621 96 Avenue
Peace River, Alberta  T8S 1T4
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Southern Region

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 403-381-5426

Address:
Infrastructure Manager
3rd Floor, Administration Building
909 3 Avenue North
Lethbridge, Alberta  T1H 0H5
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