Conn. Agencies Regs. § 22a-482-2 - Requirements for funding project agreements
(a)
Types of Projects. The Commissioner is authorized to award
assistance for the following types of projects:
(1) Planning: the preparation of engineering
reports;
(2) Design: the
preparation of contract plans and specifications; and
(3) Construction: the building of pollution
abatement facilities and sewers.
(b)
Level of State Assistance.
The amount of state funding assistance shall be based on the Commissioner's
determination of eligibility and the provisions of sections
22a-475
to
22a-483,
inclusive, of the General Statutes.
(c)
Applications for Funding
Assistance. A municipality applying for funding assistance shall file
properly executed forms and applications prescribed by the Commissioner. In
addition, the following supporting documentation shall be submitted as
appropriate:
(1) An Application for
Engineering Report Funding Assistance which shall include:
(A) a Plan of Study including:
(i) the proposed planning area;
(ii) an identification of the entity or
entities that will be conducting the planning;
(iii) the nature and scope of the proposed
planning project and public participation program, including a schedule for the
completion of specific tasks; and
(iv) an itemized description of the estimated
engineering report costs;
(B) proposed subagreements, or an explanation
of the intended method of awarding subagreements, for performance of any
substantial portion of the project;
(C) a resolution adopted by the
municipality's Water Pollution Control Authority authorizing a specific person
to file the application and execute the agreement. The resolution shall be
certified and sealed by the Town/City Clerk; and
(D) a cash flow projection.
(2) An Application for Design
Funding Assistance which shall include:
(A) an
engineering report meeting all the requirements set forth in section
22a-482-3(a)
of the Regulations of Connecticut State Agencies.
(B) proposed subagreements, or an explanation
of the intended method of awarding subagreements, for performance of any
substantial portion of the project;
(C) a resolution adopted by the
municipality's Water Pollution Control Authority authorizing a specific person
to file the application and execute the agreement. The resolution must be
certified and sealed by the Town or City Clerk;
(D) a value engineering (VE) commitment in
compliance with section
22a-482-3(d)
of the Regulations of Connecticut State Agencies for all design funding
assistance applications for projects with a projected total building cost of
$10 million or more, including the cost for interceptor and collector sewers.
For those projects requiring VE, the municipality may propose, subject to the
Commissioner's approval, to exclude interceptor and collector sewers from the
scope of the VE analysis;
(E)
proposed or executed (as determined appropriate by the Commissioner)
inter-municipal agreements necessary for the construction and operation of the
proposed pollution abatement facility for any facility serving two or more
municipalities;
(F) a schedule for
initiation and completion of the project work;
(G) evidence that local authority to
construct the facilities has been obtained; and
(H) a cash flow projection.
(3) An Application for
Construction Assistance which shall include:
(A) all requirements for design funding
assistance as specified in subdivision (c) (2) of this section;
(B) a final legal opinion stating that the
acquisition of all sites, easements or rights-of-way necessary to assure
undisturbed construction and operation and maintenance of the proposed project
have been acquired. The cost of any real property eligible for funding
assistance must reflect fair market value as determined by standard recognized
appraisal methods;
(C) two copies
of contract plans and specifications for the review and approval of the
Commissioner;
(D) a schedule for
submission of a proper operation and maintenance program including a
preliminary plan of operation;
(E)
an approved user charge system developed in accordance with the requirements
set forth in section
22a-482-3(e)
of the Regulations of Connecticut State Agencies;
(F) a cash flow projection; and
(G) amounts and terms of any other financial
assistance.
(d)
Terms of Funding Assistance.
(1) No financial assistance shall be made for
a pollution abatement facility that would provide capacity for new connections
or other developments to be located in environmentally sensitive land such as
wetlands, floodplains, prime agricultural lands, or regulated coastal zones.
Appropriate and effective funding conditions (e.g. restricting sewer hook-ups)
should be used where necessary to protect these resources from new
development.
(2) The prime purpose
in the award of construction assistance is to solve existing pollution problems
and not intended to assist in new development.
(3) For engineering reports and design, no
financial assistance will be allowed for any engineering work performed before
award without the prior written approval of the Commissioner.
(4) Except as otherwise provided in this
subsection, no assistance for construction may be awarded for any construction
which is initiated prior to the date of award. Preliminary construction work,
such as advance acquisition of major equipment items requiring long lead times,
acquisition of an option for the purchase of eligible land, or advance
construction of minor portions of a pollution abatement facility, including
associated engineering costs, in emergencies or instances where delay could
result in significant cost increases, may be approved by the Commissioner after
the completion of an environmental review, but only if the municipality submits
a written and adequately substantiated request.
(5) The approval of a plan of study, an
engineering report, plans and specifications, advance acquisition of equipment
or advance construction will not constitute a commitment or approval of
assistance for a subsequent phase of the project. In instances where such
approval is obtained, the applicant proceeds at its own risk, since payment for
such costs cannot be made unless assistance for the project is
awarded.
(6) The municipality shall
notify the Commissioner that it has complied or will comply with the applicable
procurement provisions of subsections (f), (g) and (h) of 22a-482-4 of the
Regulations of Connecticut State Agencies before the award of any
assistance.
(7) Within ninety (90)
days after receipt of a completed application (excluding suspension periods for
submission of supplemental information), the Commissioner will take one of the
following actions: (A) approve for award; (B) defer due to lack of funding; or
(C) disapprove the application. The applicant shall be promptly notified, in
writing, of any deferral or disapproval. A deferral or disapproval of an
application shall not preclude its reconsideration or a
reapplication.
(8) The Commissioner
will transmit the funding agreement to the applicant for execution. The
agreement must be executed by the applicant and returned within three (3)
calender weeks after receipt. The agreement shall set forth the approved
project scope, budget (cash flow analysis), total project costs, and the
approved commencement and completion dates for the project or major phases
thereof.
(9) The project funding
agreement shall set forth the amount of funding assistance. The amount may not
exceed the amount of funds available.
(10) The amount and term of funding
assistance shall be determined at the time of award. The time period is subject
to extension for excusable delay, at the discretion of the
Commissioner.
(11) The amount of
financial assistance shall not exceed 100% of the cost eligible for grant and
loan. Calculation of a grant or loan available shall first include a deduction
of financial assistance available from other sources.
(12) The municipality may finance short term
debt through the marketplace or from the Clean Water Fund.
(A) Accrued interest on funds borrowed from
the marketplace shall be paid at the time of borrowing.
(B) Accrued interest on amounts borrowed from
the Clean Water Fund may be either paid at the time of such borrowing or become
part of the principal to be repaid over the term of the project and shall be
determined by the Commissioner at the time of issuance of the project funding
obligation. Short term interest shall be charged at the rate of 2% per year
compounded annually for all outstanding loan balances. Interest on short term
obligations shall be computed on the basis of a year of 360 days and the number
of days elapsed. Interest shall be charged from the date a check is issued from
the fund to the municipality.
(13) Grant proceeds shall be disbursed only
upon a determination by the Commissioner that satisfactory documentation of
eligible grant costs have been received.
(14) The Commissioner shall establish a
procedure for disbursement of grant and loan proceeds to the
municipalities.
(15) The
municipality shall use the proceeds of the project loan and the project grant
solely for the purpose of funding the project. The municipality shall promptly
disburse to all contractors the proceeds of such project loan and project grant
on the same day that it receives proceeds from the state.
(16) The municipality shall agree and
covenant in the project funding agreement that it shall, at all times, do and
perform all acts and things reasonably requested by the state to insure
interest paid on any tax exempt obligations issued by the state to fund the
Clean Water Fund shall, for the purposes of federal income taxation, be
excludable from the gross income of the recipients thereof under the Internal
Revenue Code of 1986, as amended.
(17) The municipality shall have all project
costs, loans, and grants audited by an auditor approved by the
Commissioner.
(18) The municipality
shall repay to the Clean Water Fund all outstanding loan balances, including
principal and interest accrued, within twenty years from the scheduled
completion date of the project.
(19) The municipality shall establish a
dedicated source of repayment of the loan satisfactory to the
Commissioner.
(20) Each project
loan obligation shall be paid in substantially equal monthly installments of
principal and interest or in monthly installments of principal plus interest
which shall be sustantially equal and which shall be arranged such that no
principal installment payable in any month shall be less than the amount of any
installment payable in any subsequent month.
(21) Payments on long term loans shall begin
one year from the scheduled completion date of the project. Should excusable
delay cause the actual completion to go beyond scheduled completion the
Commissioner and the municipality shall enter into a project funding agreement
to cover project cost incurred after the specified date.
(22) The Commissioner shall make loans to the
municipalities at an interest rate not to exceed two percent compounded
annually.
(23) Interest on the loan
shall be computed on the basis of 360 days and the actual number of days
elapsed.
(24) The Commissioner may
provide short term loans to municipalities for planning and design, as
applicable, of an eligible water quality project. The municipalities may not be
required to begin repaying its short term loan for planning or design, as
applicable, until six months after the date of completion of such planning or
design provided the municipality must commence design or construction, as
applicable, within six months.
(25)
The municipality shall comply with the following federal laws and Executive
Orders:
(A) Archeological and Historic
Preservation Act of 1974, P.L. 93-291;
(B) Coastal Barrier Resources Act,
16 U.S.C.
3501 et seq.;
(C) Coastal Zone Management Act of 1972, P.L.
92-583;
(D) Endangered Species Act,
16
U.S.C. 1531, et seq.;
(E) Executive Order 11593, Protection and
Enhancement of the Cultural Environment;
(F) Executive Order 11990, Protection of
Wetlands;
(G) Farmland Protection
Policy Act,
7 U.S.C. 4201
et. seq.;
(H) Fish and Wildlife
Coordination Act, P.L. 85-624;
(I)
National Historic Preservation Act of 1966, P.L. 89-665;
(J) Safe Drinking Water Act, section 1424
(e), P.L. 92-523;
(K) Wild and
Scenic Rivers Act, P.L. 90-542;
(L)
Demonstration Cities and Metropolitan Development Act of 1966, P.L.
89-754;
(M) Section 306 of the
Clean Air Act and Section 508 of the Clean Water Act, including Executive Order
11738;
(N) Brooks Murkowski Act,
P.L.
100-202 ;
(O) Age Discrimination Act, P.L.
94-135;
(P) Civil Rights Act of
1964, P.L. 88-352;
(Q)Section 13 of
P.L. 92-500, prohibition against sex discrimination;
(R) Executive Order 11246, Equal Employment
Opportunity;
(S) Executive Orders
11625 and 12138, Women's and Minority Business Enterprise;
(T) Rehabilitation Act of 1973, P.L. 93-112,
including Executive Orders 11914 and 11250;
(U) Uniform Relocation and Real Property
Acquisition Policies Act of 1970, P.L. 91-646;
(V) Executive Order 12549, Debarment and
Suspension;
(W) Executive Order
11988, Flood Plain Management; and
(X) Clearn Air Act,
42 U.S.C.
7506(c).
Notes
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