Utah Admin. Code R317-101-3 - Application and Project Initiation Procedures

The following procedures must normally be followed to obtain financial assistance from the board:

A. It is the responsibility of the applicant to obtain the necessary financial, legal and engineering counsel to prepare an effective and appropriate financial assistance agreement, including cost effectiveness evaluations of financing methods and alternatives, for consideration by the board.

B. A completed application form, project engineering report as appropriate, and financial capability assessment are submitted to the board. Any comments from the local health department or association of governments should accompany the application.

C. The staff prepares an engineering and financial feasibility report on the project for presentation to the board.

D. The board authorizes financial assistance for the project based on the feasibility report prepared by the staff, designates whether a loan, credit enhancement agreement, interest buy-down agreement, hardship grant, or any combination thereof, is to be entered into, and approves the project schedule see Section R317-101-14. The board shall authorize a hardship grant only if it determines that other financing alternatives are unavailable or unreasonably expensive to the applicant. If the applicant seeks financial assistance in the form of a loan of amounts in the security account established pursuant to Title 73, Chapter 10c, Water Development Coordinating Council, which loan is intended to provide direct financing of projects costs, then the board shall authorize such loan only if it determines that credit enhancement agreements, interest buy-down agreements and other financing alternatives are unavailable or unreasonably expensive to the applicant or that a loan represents the financing alternative most economically advantageous to the state and the applicant; provided, that for purposes of this subsection and for purposes of Subsection 73-10c-4(2), the term "loan" shall not include loans issued for interest buy-down agreements as described in Section R317-101-12 or for any other interest buy-down arrangement.

E. Planning Advance Only - The applicant requesting a Planning Advance must:

1. attend a preapplication meeting;

2. complete an application for a Planning Advance;

3. prepare a plan of study; and

4. submit a draft contract for planning services.

F. Design Advance Only - The applicant requesting a design advance must have completed an engineering plan which meets program requirements and submitted a draft contract for design services.

G. The project applicant must demonstrate public support for the project.

H. A political subdivision which receives assistance for a wastewater project under this rule must agree to participate annually in the Municipal Wastewater Planning Program, commonly referred to as MWPP.

I. A political subdivision which receives assistance for a wastewater project under this rule shall adopt a capital asset management plan. A capital asset management plan shall include:

1. goals for level of service;

2. an inventory of assets including location, condition, value, life, useful life;

3. an analysis of asset for criticality;

4. a plan for sustainable funding; and

5. a certification that the recipient has evaluated and will be implementing water and energy conservation efforts as part of the plan.

J. A political subdivision which receives assistance under this rule and which owns a culinary water system must complete and submit a Water Conservation Plan, per Section 73-10-32.

K. The project applicant's engineer prepares a preliminary design report outlining detailed design criteria for submission to the board.

L. Upon approval of the preliminary design report by the board, the applicant's engineer completes the plans, specifications, and contract documents for review by the board.

M. For financial assistance mechanisms when the applicant's bond is purchased by the board, the project applicant's bond documentation, including an opinion from legal counsel experienced in bond matters, that the wastewater project obligation is a valid and binding obligation of the political subdivision, must be submitted to the assistant attorney general for preliminary approval and the applicant shall publish a Notice of Intent to issue bonds in a newspaper of general circulation pursuant to Section 11-14-201. For financial assistance mechanisms when the applicant's bond is not purchased by the board, the applicant shall submit a true and correct copy of an opinion from legal counsel experienced in bond matters that the wastewater project obligation is a valid and binding obligation of the political subdivision.

N. Hardship Grant - The board executes a grant agreement setting forth the terms and conditions of the grant.

O. The director issues a Construction Permit and Plan Approval for plans and specifications, and concurs with bid advertisement.

P. If a project is designated by the board to be financed by a loan or an interest buy-down agreement as described in Sections R317-101-12 through R317-101-13 to cover any part of project costs, an account supervised by the applicant and the board shall be established by the applicant to assure that loan funds are used only for qualified project costs. If financial assistance for the project is provided by the board in the form of a credit enhancement agreement as described in Section R317-101-11, any project funds shall be maintained in a separate account and a quarterly report of project expenditures shall be provided to the board.

Q. A copy of the applicant's Sewer Use Ordinance or Resolution and User Charge System must be submitted to the division for review and approval to insure adequate provisions for debt retirement, operation and maintenance, or both.

R. A plan of operation must be submitted by the applicant to the division for new treatment works, sewerage systems, and projects involving upgrades that add additional treatment, for example, advanced treatment. The plan must address: adequate staffing, with an operator certified at the appropriate level in accordance with Rule R317-10, training, and start up procedures to assure efficient operation and maintenance of the facilities. The plan must be submitted by the applicant in draft at initiation of construction and approved in final form before 50% of construction completion.

S. An Operation and Maintenance Manual, commonly referred to as Manual, which provides long-term guidance for efficient facility operations and maintenance is submitted by the applicant and approved in draft and final form before, respectively, 50% and 90% of project construction completion. Existing Manuals may be submitted or amended if the existing Manual is relevant to the funded project.

T. The applicant's contract with its engineer must be submitted to the board for review to determine that there will be adequate engineering involvement, including project supervision and inspection, to successfully complete the project.

U. The applicant's attorney must provide an opinion to the board regarding legal incorporation of the applicant, valid legal title to rights-of-way and the project site, and adequacy of bidding and contract documents.

V. Credit Enhancement Agreement and Interest Buy-Down Agreement Only - The board issues the credit enhancement agreement or interest buy-down agreement setting forth the terms and conditions of the security or other forms of assistance provided by the agreement and notifies the applicant to sell the bonds as described in Sections R317-101-11 through R317-101-12.

W. Credit Enhancement Agreement and Interest Buy-Down Agreement Only - The applicant sells the bonds on the open market and notifies the board of the terms of sale. If a credit enhancement agreement is being utilized, the bonds sold on the open market shall contain the legend required by Subsection 73-10c-6(2)(a). If an interest buy-down agreement is being utilized, the bonds sold on the open market shall bear a legend which makes reference to the interest buy-down agreement and states that such agreement does not constitute a pledge of or charge against the general revenues, credit or taxing powers of the state and that the holder of any such bond may look only to the applicant and the funds and revenues pledged by the applicant for the payment of interest and principal on the bonds.

X. The applicant opens bids for the project.

Y. Loan Only - The board gives final approval to purchase the bonds and execute the loan contract as described in Section R317-101-13.

Z. Loan Only - The final closing of the loan is conducted.

AA. The board gives approval to award the contract to the low responsive and responsible bidder.

BB. A preconstruction conference is held.

CC. The applicant issues a written notice to proceed to the contractor.

Notes

Utah Admin. Code R317-101-3

Amended by Utah State Bulletin Number 2015-20, effective 9/24/2015 Amended by Utah State Bulletin Number 2023-14, effective 6/28/2023