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

(1) Priority Determination. The Board will use Table 1 to assign applicants for financial assistance a priority rank. The Board may modify an applicant's priority rank based on the following considerations. (a) The project plans, specifications, contract, financing, or other measures of a project's readiness to proceed to construction of a lower priority applicant 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. Table 1 Priority System Deficiency Description Points Received Source Quality or 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 to UPDWR. 10 E. Source has confirmed MCL chemistry violations within the last year. 10 Total 100 Treatment Deficiency Description Points Available Health Risk or 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 or has failed. 25 -or- Treatment system equipment does not meet demands of UPDWR including the lead or copper action levels. 20 -or- System equipment is projected to become inadequate without upgrades. 5 Total 75 Storage Deficiency Description Points Available Health Risk and Compliance with SDWA (select all that apply) A. Storage system is subject to impending failure or has failed. 25 -or- System is old, cannot be easily cleaned, or is subject to contamination. 15 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 Deficiency Description Points Available Health Risk and Compliance with SDWA (select all that apply) A. Distribution system equipment is deteriorated or inadequate for existing demands. 20 -or- Distribution system is inadequate to meet 5-year projected demands. 10 B. Applicable disinfectant residual maintenance requirements are not met or high backflow contamination potential exists. 20 C. Project will replace pipe containing unsafe materials, such as lead or asbestos 15 D. Minimum dynamic pressure requirements are not met. 10 E. System experiences a heavy leak rate in the distribution lines. 10 Total 75 Emergencies Upon the Board finding of an emergency as required by Section R309-705-9. 100 (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 0% loans, or other financial assistance as described in this rule. Effective rate calculation methods will be determined by Board resolution from time to time, using the Revenue Bond Index RBI as a basis point, the points assigned in Table 2, and a method to reduce the interest rate from a recent rate down to a potential minimum of 0%. TABLE 2 INTEREST, HARDSHIP GRANT FEE AND OTHER FEES REDUCTION FACTORS 1. COST EFFECTIVENESS RATIO, SELECT ONE POINTS Project Cost per benefitting connection A. $0 to $500 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 (MAGI), 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. 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 MAGI 16 B. 2.01 to 2.50% of local median MAGI 12 C. 1.51 to 2.00% of local median MAGI 8 D. 1.01 to 1.50% of local median MAGI 3 E. 0 to 1.00% of local median MAGI 0 5. SPECIAL INCENTIVES, SELECT ALL THAT APPLY: The Applicant has the following: A. 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. 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. Created or enhanced, or will create or enhance, a regionalization plan. 16 D. Implemented a rate structure encouraging conservation. 6 TOTAL POSSIBLE POINTS FOR FINANCIAL NEED 100