R309-705-6. Applicant Priority System and Selection of Terms of Assistance

(1) Priority Determination.

The Board may, at its option, modify a project's priority rating based on the following considerations:

(a) The project plans, specifications, contract, financing, etc., of a lesser-rated project are ready for execution.

(b) Available funding.

(c) Acute health risk.

(d) Capacity Development (financial, technical, or managerial issues needing resolution to avoid EPA intervention).

(e) An Emergency.

The Board will utilize Table 1 to prioritize loan applicants as may be modified by (a), (b), (c), or (d) above.

TABLE 1

Priority System

Deficiency Description Points

                                                       Received

                    Source Quality/Quantity

Health Risk (select one)

A. There is evidence that waterborne illnesses have

    occurred. 25

B. There are reports of illnesses which may be waterborne. 20

C. High potential for waterborne illness exists. 15

D. Moderate potential for waterborne illness 8

E. No evidence of potential health risks 0

Compliance with SDWA (select all that apply)

A. Source has been determined to be under the influence of

    surface water. 25

B. System is often out of water due to inadequate source

    capacity. 20

-or-

    System capacity does not meet the requirements of UPDWR. 10

C. Source has a history of three or more confirmed

    microbiological violations within the last year. 10

D. Sources are not developed or protected according 10

    to UPDWR.

E. Source has confirmed MCL chemistry violations within

    the last year. 10

                                                  Total 100

                          Treatment

                                                           Points

Deficiency Description Available

Health Risk/Compliance with SDWA (select all that apply)

A. Treatment system cannot consistently meet log removal

    requirements, turbidity standards, or other

    enforceable drinking water quality standards. 25

B. The required disinfection facilities are not

    installed, are inadequate, or fail to provide adequate

    water quality. 25

C. Treatment system is subject to impending failure, 25

    or has failed.

-or-

    Treatment system equipment does not meet demands 20

    of UPDWR including the lead and/or copper action levels.

-or-

    System equipment is projected to become inadequate 5

    without upgrades.

                                                     Total 75

                           Storage

                                                         Points

Deficiency Description Available

Health Risk / Compliance with SDWA (select all that apply)

A. Storage system is subject to impending failure, or has 25

    failed.

-or-

    System is old, cannot be easily cleaned, or subject 15

    to contamination.

B. Storage system is inadequate for existing demands. 20

-or-

    Storage system demand exceeds 90% of storage capacity. 10

C. Applicable contact time requirements cannot be met

    without an upgrade. 15

D. System suffers from low static pressures. 15

                                                    Total 75

                         Distribution

                                                           Points

Deficiency Description Available

Health Risk/Compliance with SDWA (select all that apply)

A. Distribution system equipment is deteriorated or 20

    inadequate for existing demands.

-or-

    Distribution system is inadequate to meet 5 year 10

   projected demands.

B. Applicable disinfectant residual maintenance 20

    requirements are not met or high backflow contamination

    potential exists.

C. Project will replace pipe containing unsafe materials 15

    (lead, asbestos, etc).

D. Minimum dynamic pressure requirements are not met. 10

E. System experiences a heavy leak rate in the 10

    distribution lines.

                                                       Total 75

                         Emergencies

Upon the Board finding of an emergency as required by

R309-705-9. Total 100

Priority Rating = (Average Points Received) x (Rate Factor) x (AGI Factor)

Where:

* Rate Factor = (Average System Water Bill/Average State

Water Bill)

** AGI Factor = (State Median AGI/System Median AGI)

(2) Financial Assistance Determination. The amount and type of financial assistance offered will be based upon the criteria shown in Table 2. As determined by Board resolution, disadvantaged communities may also receive zero-percent loans, or other financial assistance as described herein.

Effective rate calculation methods will be determined by Board resolution from time to time, using the Revenue Bond Buyer Index (RBBI)as a basis point, the points assigned in Table 2, and a method to reduce the interest rate from a recent RBBI rate down to a potential minimum of zero percent. To encourage rapid repayment of a loan the Board will increase the interest rate 0.02 per cent (0.02%) for each year the repayment period exceeds five (5.0) years.

TABLE 2

INTEREST, HARDSHIP GRANT FEE AND OTHER FEES REDUCTION FACTORS

                                                         POINTS

1. COST EFFECTIVENESS RATIO (SELECT ONE)

A. Project cost $0 to $500 per benefitting

   connection 16

B. $501 to $1,500 14

C. $1,501 to $2,000 11

D. $2,001 to $3,000 8

E. $3,001 to $5,000 4

F. $5,001 to $10,000 1

G. Over $10,000 0

2. CURRENT LOCAL MEDIAN ADJUSTED GROSS INCOME (AGI) (SELECT ONE)

A. Less than 70% of State Median AGI 19

B. 71 to 80% of State Median AGI 16

C. 81 to 95% of State Median AGI 13

D. 96 to 110% of State Median AGI 9

E. 111 to 130% of State Median AGI 6

F. 131 to 150% of State Median AGI 3

G. Greater than 150% of State Median AGI 0

3. APPLICANT'S COMMITMENT TO PROJECT

PROJECT FUNDING CONTRIBUTED BY APPLICANT (SELECT ONE)

A. Greater than 25% of project funds 17

B. 15 to 25% of project funds 14

C. 10 to 15% of project funds 11

D. 5 to 10% of project funds 8

E. 2 to 5% of project funds 4

F. Less than 2% of project funds 0

4. ABILITY TO REPAY LOAN:

4. WATER BILL (INCLUDING TAXES) AFTER PROJECT IS

    BUILT RELATIVE TO LOCAL MEDIAN ADJUSTED GROSS

    INCOME (SELECT ONE)

A. Greater than 2.50% of local median AGI 16

B. 2.01 to 2.50% of local median AGI 12

C. 1.51 to 2.00% of local median AGI 8

D. 1.01 to 1.50% of local median AGI 3

E. 0 to 1.00% of local median AGI 0

5. SPECIAL INCENTIVES: Applicant (SELECT ALL THAT APPLY.)

A. Has a replacement fund receiving annual deposits

   of about 5% of the system's annual drinking water

   (DW) budget and fund has already accumulated a

   minimum of 10% of said annual DW budget in

   this reserve fund. 5

B. Has, in addition to item 5.A., accumulated an

   amount equal to at least 20% of its annual DW

   budget in its replacement fund. 5

C. Is creating or enhancing a regionalization plan 16

D. Has a rate structure encouraging conservation 6

TOTAL POSSIBLE POINTS FOR FINANCIAL NEED 100