12-004 Code Vt. R. 12-030-004-X - MUNICIPAL WATER SUPPLY PROJECT PRIORITY SYSTEM RULE

Section 1.0 PURPOSE

The Water Supply Priority System defined herein is used by the Vermont Department of Environmental Conservation to rate and rank all municipal water supply systems with respect to the urgency of the water supply needs and also with respect to their readiness to proceed with the next engineering planning or construction step. The priority system is used to determine which municipal water systems will receive funding from State construction and planning funds appropriated annually and to assist the Department in adjusting surveillance, monitoring, enforcement and other program activities with respect to the most critical municipal water supply needs.

Section 2.0 INTRODUCTION

The project priority system assigns priority points to each municipal water supply system in Vermont based upon four general areas of concern. They are:

a) the quality of the water actually delivered to a system user;

b) the adequacy of the physical components of the water system;

c) the population served; and

d) the readiness of the municipality to proceed to the next planning or construction step. The population of a municipality determines a numerical factor which is multiplied by the sum of the points accrued in the preceding two categories. The first three categories of points depict the relative significance of water supply improvement needed by a municipality. The greater the number of points, the higher the priority of that project. The sum of priority points from the first three categories are used to rank (array) all municipalities with respect to their water supply needs from the highest priority (most points) to the lowest priority (least points). That ranking is used by the Department to guide its actions with respect to monitoring, surveillance, and enforcement of operations of municipal water systems and in channeling limited planning and construction funds toward projects of highest priority.

Engineering planning and construction of public works projects such as water supply improvements progress in three distinct steps. They are:

a) preparation of preliminary engineering studies to assess problems and propose alternative solutions that are technically and financially feasible;

b) the preparation of final drawings and specifications based upon the selected alternative; and

c) construction of the needed facilities. The effective allocation of limited planning and construction funds to competing projects requires that the selected project be ready to proceed to the next planning/construction step and that it can actually use the allocated funds. The fourth category of points (readiness to proceed) is used for that purpose.

The priority system categories 1-3 generally remain unchanged from year to year and, therefore, projects will generally retain their relative position of rank. The priority list may, at the discretion of the Commissioner be amended by procedures described-later in this document.

Vermont statutes authorize the award of engineering planning advances for water supply projects when the project is:

a) necessary to preserve or enhance the quality of the water provided to the inhabitants of a municipality;

b) to alleviate an adverse public health condition; or

c) to allow for orderly development and growth. The overall municipal water supply needs within Vermont in the first two categories are so great as to preclude reasonable use of the third category (orderly development and growth) as a measure of project priority.

Section 3.0 ANNUAL PRIORITY LIST DEVELOPMENT

The project priority list designating which municipal water supply projects are to receive planning and construction funds will be developed annually beginning in April. A notice designating which projects are proposed for funding and a master listing of all municipal water supply projects ranked in order of priority as computed in Categories: I (Water Quality); II (Facilities); and III (Population) shall be sent to all municipalities with water systems and also to other interested groups and institutions. In addition, information describing funds available for the next fiscal year and how they are to be apportioned between engineering planning and construction activity shall be sent to the same parties. A standard mailing list will be maintained for this purpose. An annual public hearing preceded by a minimum 14 day's notice shall be held to receive public comment on the proposed list. Other meetings may be held to provide information to the public or to receive public comment. A public responsiveness summary following the public hearing will be published (generally prior to August 15).

The Commissioner shall retain authority and responsibility for preparation of the project priority list designating which projects are to receive planning and construction funds.

Section 4.0 ANNUAL PRIORITY LIST AMENDMENT

The project priority list may be amended annually in March by action of the Commissioner. The purpose of which is to move onto the fundable portion of the list those additional projects of the next highest priority (priority computed from all four categories of points), which are prepared to receive a grant or planning advance under 10 V.S.A., Chapter 55 as of March 15 of that year. Municipalities which qualify for advancement onto the fundable portion of the list must have an approvable (awardable) planning advance application or grant application with all requisite attachments and approvals in the office of the Department by March 1. The annual amendment of the priority list is made to offer those municipalities which are ready to proceed to the next planning or construction step an opportunity to be funded in the event projects originally designated for funding fail to submit approvable funding applications.

Those projects originally designated for funding, and which are not funded due to a shortage of funds arising from accelerated funding of other projects advanced under the annual amendment, or for any other reason will remain on the fundable project priority list and will be placed on the fundable project priority list the following year.

Section 5.0 PRIORITY RATING

The priority points assigned to each municipal water supply system shall be computed in the manner described below. The priority point rating will be reviewed and updated annually. A more precise definition of the terms used below is given in the Definitions Section of this document.

5.1 Water Quality - Points below shall be based upon municipal water system performance for the 12 month period preceding development of the priority list and ending March 31.

A.	Bacteriological
1. No MCL Violations	0 points
2. 1 - 2 MCL Violations	9 points
3. Greater than 2 MCL Violations	14 points
B.	Nitrate
1. No nitrate level above 1.0 mg/l	0 points
2. Levels above 1.0 mg/l but below MCL	6 points
3. MCL Violation(s)	12 points
C.	Turbidity
1. No MCL Violations	0 points
2. 1 - 2 MCL Violations	7 points
3. Greater than 2 MCL Violations	10 points
D.	Primary I norganic Chemical, Organic Chemical and Radiological Standards
1. No MCL Violations	0 points
2. 1 - 2 MCL Violations	7 points
3. Greater than 2 MCL Violations	12 points
E.	Secondary Inorganic Chemical Standards
1. No MCL Violations	0 points
2. 1 - 2 MCL Violations	5 points
F.	Permanent Boil Status	15 points
(No Points allowed if the maximum of 14 Points is allowed in 5.1. A above)
G.	System is under a Health Order, compliance schedule, assurance of discontinuance, special sampling requirements or a formal USEPA action	15 Points

5.2 Facilities

A.	System Integrity
1. Groundwater
a) Inadequate Source Protection (based on risk analysis--see attached table I)	5-15 points
b) Contaminated Source--needs treatment or replacement	20 points
c) Inadequate Source Construction	5 points
d) Inadequate Finished Storage Construction	5 points
e) Inadequate Chlorination Capability	5 points
f) Inadequate Treatment
I. Corrosion Control	8 points
II. Iron and/or Manganese problems	3 Points
2. Surface Water
a) Inadequate Source Protection based on risk analysis--see attached Table I	1-5 points
b) Inadequate Filtration (non-compliance requirement 6/89 SWTR)	15 points
c) Inadequate Disinfection--CT Values (6/89 SWTR)	10 points
d) Inadequate System Monitoring (6/89 SWTR)	5 points
e) Inadequate Finished Storage Construction	5 points
f) Inadequate Treatment (Other than filtration)
I. Corrosion Control	8 points
II. Iron and Manganese problem	3 points
B.	System Capacity
1. Inadequate Source	15 points
2. Inadequate Transmission and Distribution	5 points
3. Inadequate Storage Volume	5 points
4. No alternative/Emergency Source	5 points

1.25
2,001 - 5,000	1.4
5,000+	1.5

The population priority factor shall be multiplied by the sum of all points accrued under Section I (Water Quality) and Section II (Facilities) to determine the priority rating of a project. That priority point rating shall be used to rank all municipal projects on a master list.

5.4 Readiness to Proceed

A.	Preliminary Engineering Completed	10.0 points
B.	Bonds/Funds Voted for Local Share (Municipality will normally have initiated final planning)	10.0 points
C.	Final Plans & Specifications Completed	25.0 points

Section 6.0 PRIORITY LIST MANAGEMENT

6.1 The Department shall employ the following concepts in managing the priority list.

A. Planning/Construction Mix - The Department shall exercise its best judgement in allocating annually appropriated funds between engineering planning and construction projects so as to maintain a continuing availability of projects ready for final planning or construction in future years. The Department will exercise discretion in this area and attempt to insure that projects will be ready to proceed to the next planning/construction step so as to optimize use of anticipated State and Federal funds for water supply projects. Vermont statute, 10 V.S.A. § 1596, limits the amount of planning advances made to 30% of the appropriation authorized for water supply grants.

B. Contingency Fund - The Department will generally maintain a contingency fund of at least 5% of the funds available for water supply construction/planning activity at the beginning of the fiscal year. Greater amounts may be held in the contingency fund when, in the Department's judgement, such action would be prudent in light of inflationary trends, current construction bid atmosphere, etc. The contingency fund will be used to support reasonable but unanticipated cost increases in construction grants or planning advances.

C. Project Segmenting - Several projects carry State construction grant requirements in excess of the construction grant appropriation normally authorized by the General Assembly. The Department may provide for funding segments of such projects in successive fiscal years. Project segments must, in general, be workable (functional), and there must be reasonable assurance that subsequent segments will be funded and built without significant delay so that the segment or the whole project will yield significant public benefit without undue delay. Where a project is segmented, all segments of the project will retain the priority point rating of the whole project. This action insures that deferred segments are not adjusted to a lower priority rating and thereby delayed.

D. Preparation of Fundable Lists - The Department will annually prepare three listings of municipal water supply projects ready to proceed into:

1) preliminary engineering planning,

2) preparation of final plans and specifications, and

3) construction. These lists shall be extracted from the master list of all projects ranked in priority order.

The preliminary planning project list shall contain the highest ranked municipal projects ready to proceed into preliminary planing arrayed in priority order. The project list shall contain the estimated cost of the State planning advance required to conduct preliminary planning.

The final planning project list shall contain all municipal projects ready to proceed into final planning and which have preliminary planning completed. The projects shall be listed in priority order, and the estimated cost of State planning advance required to conduct final planning shall be shown. Projects appearing on the final planning list will be credited with all those points which are related to the project for which plans and specifications are to be prepared.

The construction project list shall contain all municipal projects ready to proceed into construction and which have final Planning completed. The projects shall be listed in priority order, and the estimated cost of the State construction grant shall be shown. Projects appearing on the construction list will be credited with all those points which are related to the project for which a construction grant has been requested or for which local bonds have been authorized.

E. Estimated Costs - The Department shall estimate the grant/planning advance cost of each project on the fundable lists based on the information available. Old estimates will be updated and original estimates prepared where no information is available.

F. Creation of Municipal Water Supply Systems - Privately or cooperatively owned public water systems may, from time to time, become owned by a municipality as defined in 3 V.S.A., § 126 and, therefore, become eligible applicants for State planning advance loans and construction grants. Where such new municipal water systems arise, their priority point rating shall be computed by the Department. That municipal water system will be added to the priority list at its next amendment or at the preparation of the next year's priority list, whichever comes first. The award of a planning advance under these conditions shall require that the sponsoring municipal entity either have outright ownership of the public water system or have entered into a binding buy/sell agreement with the private/cooperative owner, whereby transfer of the water system to the municipality is to be executed prior to the start of construction improvements. The award of a construction grant under these conditions shall require that the municipality have outright ownership of the water system prior to the start of construction improvements.

G. Amendments - The priority funding list may be amended at any time at the discretion of the Commissioner. At each amendment, the Department shall send written notice to all municipalities on the priority list and other interested groups and institutions of the proposed changes, the reasons supporting such changes, and provide a minimum of 14 days for comment. The Department of Water Resources and Environmental Engineering shall conduct a public hearing upon request of 25 or more persons or upon request of two or more municipalities. A minimum of 14 day's notice shall be provided prior to the hearing. The Department shall provide written notice to all parties of its final amendment decision and shall provide a response to comments received.

H. Selection Among Projects With Equal Priority Points - The Department will, in general, employ the following concepts when it is necessary to select projects for funding from among a number of projects with equal priority points.

1. The remaining segments of segmented projects will generally be funded-prior to funding new projects.

2. Projects which have tandem funding commitments will generally be funded ahead of other projects to take maximum advantage of other funding sources.

3. Municipal projects for which legally enforceable schedules have been issued will generally be funded ahead of projects without such schedules.

4. Municipal projects which, in the judgement of the Department, will result in the elimination of a serious health hazard condition, will generally be funded ahead of others.

I. Public Hazard - The Department will exercise its best judgement in advancing the funding of a municipal project where early funding would abate a significant emergency condition or hazard to the health of the people of- the municipality. The Department will mail a notice of the decision to all municipalities, groups, and institutions on the mailing list.

J. New Water Systems - This priority system is designed to prioritize the needs of existing municipal water systems. Municipal water systems may, however, be needed where no municipal system now exists and where individual homes and businesses are served by wells, springs, etc. which are substandard. Where a municipality identifies such a need - and substantiates that individual systems are substandard, the Department may use its discretion in providing preliminary planning funds to more completely evaluate the needs of that community. The subsequent priority rating of such projects will be based upon information developed in the preliminary report. This section is not intended to establish the priority for distribution water line extensions but rather to accommodate those areas of a municipality which are beyond reasonable economic extensions of water distribution lines.

K. Grant/Planning Increases - Grant and planning advance increases necessary to complete ongoing projects will generally be funded prior to funding new planning or construction project starts.

6.2 The Department shall employ the following concepts in managing the priority list.

A. Compliance Schedules - The Department will utilize the priority list to formulate compliance schedules for municipal water systems most needing improvement. Compliance schedules will be established for systems positioned high on the priority list for which improvement funds are available, independent of the current status of improvements or a community's willingness to proceed.

B. Violations - The Department will work with municipalities violating maximum contaminant level standards to insure both public health protection and the immediate correction of deficiencies not requiring bonding or aid. The funding of major improvements will await the municipality's placement onto the fundable lists. The Department will encourage municipalities to proceed with engineering plans at their own expense in order to improve their position on the fundable lists.

Section 7.0 DEFINITIONS

The following definitions shall be used in developing the annual project priority list and in computing the priority points assigned to each municipal water system.

7.1 Water Quality. The Water served by public water systems in Vermont requires routine analysis by State certified laboratories for chemical, physical, and bacteriological constituents. Water quality information is incorporated into the priority system by the assignment of points to water systems supplying water of inferior quality. Water quality violations (MCL violations) are assessed in terms of the maximum contaminant level standards specified by the Water Supply Rule.

A violation shall be a violation as determined by the Department in accord with the Water Supply Rule.

GREATER
COMPLIANCE	NO MCL	1-2 MCL	THAN 2 MCL
CONSTITUENT	PERIOD	VIOLATIONS	VIOLATIONS	VIOLATIONS
Bactiological	monthly & quarterly	0	9	14
Nitrate	quarterly	0	8	12
Turbidity	monthly	0	7	10
Primary inorganic chemical standards,radiological, and organic chemical
standards	quarterly	0	6	8
Secondary inorganic chemical standards	quarterly	0	5	6

The priority list is based on water quality information from analyses conducted for the compliance period preceding development of the priority list and ending March 31. Municipalities not fulfilling the monitoring requirements of the Water Supply Rule will not receive water quality points for constituents not being monitored.

7.2 Facilities

A. System Integrity

1. Groundwater Supply

a. Inadequate Source Protection - See Table I for definition

b. Contaminated Source shall mean a source requiring treatment or replacement to be in compliance with the Water Supply Rule.

c. Inadequate Source Construction shall mean wells that terminate in a pit, have improper or no grouting of the casing, cracked concrete floor around well or other construction deficiencies, and springs that permit surface water or animal intrusion.

d. Inadequate Finished Storage Construction shall mean open or partially covered finished water storage or a tank requiring repair or replacement to prevent leakage. Also absence of proper security at access hatch, inadequate or no vent.

e. Inadequate Chlorination Capability shall mean either the absence of some or all of the necessary chlorination equipment, or that the chlorination equipment is not able to meet the required CT value for disinfection.

f. Inadequate Treatment for Fe (iron), Mn (Manganese), or Corrosion Control shall mean insufficient or no treatment for the above-listed constituents when contaminant levels specified by the Water Supply Rule are exceeded.

2. Surface Water Supply

a. Inadequate Source Protection - See Table I

b. Inadequate Filtration shall mean the absence of acceptable filter technology to meet the SWTR 6/89. Filtration which does not meet the design standards of the Water Supply Rule shall also represent inadequate filtration.

c. Inadequate Disinfection CT Values shall mean the system is unable to meet the requirements as detailed in Vermont Standards for Design and Construction.

d. Inadequate System Monitoring shall mean the system is unable to meet the requirements as detailed in Vermont Standards for Design and Construction.

e. Inadequate Finished Storage construction shall mean open or partially covered finished water storage or a tank requiring repair or replacement to prevent leakage.

f. Inadequate Treatment for Fe (iron), Mn (Manganese), pH, and Corrosion Control shall mean insufficient or no treatment for the above-listed constituents when contaminant levels are exceeded as specified by the Water Supply Rule.

B. System Capacity

1. Inadequate Source shall mean that the source (to include the physical plant) cannot supply quantities of water sufficient to meet existing average day demand and that the shortage cannot be corrected without major equipment improvements or the development of new sources. Verification by the Department may include a review of metering/pump data, calculated demand, historical record of demands and inspection of facilities. Shortages caused by equipment breakdown, malfunction or system leakage will not be considered.

2. Inadequate Transmission/Distribution shall mean the transmission/distribution system is incapable of delivering existing average day demand at acceptable pressures (20 psi at curb stop) as required by the Vermont Standards for Design and Construction. Verification by the Department may include a review of pipeline sizing, pump records, hydrant flow tests, historical record of problems and inspection of facilities.

3. Inadequate Storage Volume shall mean the finished water storage volume (distribution storage) is less than required by Vermont Standards for Design and Construction. Verification by the Department may include a review of the metering/pump data, calculated demand, historical record of demands and inspection of facilities.

4. No Alternate or Emergency Source shall mean the water system has no alternate or emergency source to be used in the event of equipment failure, source contamination, or other conditions requiring temporary or permanent abandonment of the primary source.

7.3 Population shall mean the population currently served and Proposed to be served by a municipal water system taken from existing Department inventory.

7.4 Readiness to Proceed

A. Preliminary Engineering Completed shall mean the preliminary engineering report is submitted to the Department prior to May 1 and is judged by the Department to be an approvable document.

B. Bonds/Funds Voted for Local Share shall mean the municipality has held a positive bond vote on a project acceptable to the Department. The bond vote must be for an amount which, when combined with the anticipated State grant and any committed Federal grant, results in a fundable project.

C. Final Plans and Specification Completed shall mean the final plans and specifications have been submitted to the Department prior to May 1 and have been judged by the Department to be an approvable document.

D. Priority Points Total shall be rounded to the nearest 1/10 of a point.

7.5 "Department" means the Vermont Department of Environmental Conservation

7.6 "Commissioner" means the Commissioner of the Vermont DePartment of Environmental Conservation

7.7 "SWTR 6/89" means the federal Surface Water Treatment Rule adopted in June of 1989.

7.8 "Vermont Standards for Design and Construction" means the standards in Appendix A of the Water Supply rule, Chapter 21.

7.9 "Water Supply Rule" means the Vermont Water Supply Rule adopted as Chapter 21 of the Department's Environmental Protection Rules.

TABLE I STANDARDIZED ASSIGNMENT OF RANKING POINTS

Inadequate Source Protection

A) Surface Water 1 -5 Points For Inadequate Source Protection

Points	Land Uses in Watershed
0	Recreational Only
1	Recreational, Forestry
2	Recreational, Forestry, Agriculture
3	Recreational, Forestry, Agriculture, Residential
4	Recreational, Forestry, Agriculture, Residential, Commercial
5	Recreational, Forestry, Agriculture, Residential, Commercial, Industrial

B) Groundwater 5 - 15 Points for Inadequate Source Protection

RANKING CRITERIA

Points	Isolation Zone Controlled	Isolation Zone Not Controlled	No Sources of Contamination (S.O.C200' within	Non-Septic (SOC)
0	X	X
5.0	X	X
5.5	X	X
6.0	X	X
6.5	X	X
X	X
7.5	X	X
8.0	X	X
8.5	X	X
9.0	X	X
9.5	X	X
10.0	X	X
10.5	X	X
11.0	X	X
11.5	X
12.0	X
12.5	X
13.0	X
13.5	X
14.0	X
14.5	X	X
15.0	X	X

Points	Non-Septic (SOC) from 200-500'	Septic System within 200-500'	Septic System within 200'
0
5.0
5.5	X
6.0	X
6.5
7.5	X
8.0	X
8.5	X
9.0	X
9.5	X	X
10.0	X	X
10.5	X	X
11.0	X	X
11.5	X
12.0	X
12.5	X	X
13.0	X	X
13.5	X	X	X
14.0	X	X	X
14.5	X	X	X
15.0	X	X	X

Notes

12-004 Code Vt. R. 12-030-004-X

Effective Date: November 20, 1981
AMENDED: July 15, 1994 (Secretary of State Rule Log #94-58)