R653-2-4. Project Funding Process

  (1) After the application for assistance has been completed by the sponsor/applicant, signed by the Board member, and forwarded to the Division, a three-step process will be followed to determine those projects which will be funded by the Board.

  (2) The three steps of the funding process are:

  (a) APPROVAL for Staff Investigation:

  (i) The Board member considers the proposed project to fall within the Board's general statutory authority.

  (ii) Division staff will prepare a feasibility report covering the general scope of the proposed project but focusing on technical, financial, legal, and environmental aspects, water needs and rights, and water users' support.

  (b) AUTHORIZATION:

  (i) The feasibility report will be presented to the Board, which will consider the project for authorization on the basis of its merits and overall feasibility and the contribution the project will make to the general economy of the area and the state.

  (ii) As part of its decision-making process, the Board considers it important to discuss the merits of the project with the sponsor. Therefore, representatives of the project sponsor must attend the Board meeting when the project is considered for authorization.

  (iii) If the project is authorized by the Board, a letter outlining the engineering and legal requirements for the project and other conditions of the financial assistance will be sent to the sponsor. For example, some of the more common conditions of these projects are:

  (A) Obtain all easements, rights-of-way, and permits required to construct, operate, and maintain the project.

  (B) Pass a company resolution to assign properties, easements, and water rights required for the project to the Board.

  (C) Enter into a contract with the Board for construction of the project and subsequent purchase from the Board.

  (D) Obtain approval of final plans and specifications from the Division.

  (E) Prepare a Water Management and Conservation Plan.

  (F) Adopt an ordinance prohibiting municipal irrigation of landscapes between the hours of 10:00 a.m. and 6:00 p.m.

  (G) Adopt a progressive water rate schedule (municipal projects).

  (H) Submit a letter noting completion and acceptance of a Water Conveyance Facilities Management Plan as described in and within the time frame required by Utah Code 73-10-33 (2010 First Substitute House Bill 60); and

  (I) Be in compliance with Utah Code 17-27a-211 (2010 House Bill 298) which requires a canal company or canal operator to provide stated information to the county.

  (c) COMMITTAL OF FUNDS:

  (i) After the sponsor has complied with the Board requirements and conditions, the project will be presented for final review. If the Board finds the project to be in order and ready for construction, and IF FUNDS ARE AVAILABLE, the Board will commit funds and direct its officers to enter into the necessary agreements to secure project financing.

  (ii) The project sponsor will not normally be required to attend the Board meeting at which funds are to be committed for the project. If the project scope or cost estimate has changed substantially, the sponsor may be asked to attend the meeting to discuss the changes with the Board.