(a)

1. (1) The Arkansas Natural Resources Commission staff will regulate the number and timing of projects receiving assistance in a given fiscal year through the execution of a memorandum of agreement.

2. (2) This will be done to:

   1. (A) Maintain administrative control of the project workload; and
   2. (B) Ensure the integrity of the CWRLF program.

3. (3) The memorandum of agreement will:

   1. (A) Be negotiated between the applicant and the commission staff; and
   2. (B) Contain submittal dates for various application documents.

4. (4) Submittal dates will include, but not be limited to, the submittal date for the:

   1. (A) Engineering report and environmental information document;
   2. (B) Construction plans and specifications;
   3. (C) Loan application; and
   4. (D) User charge and sewer use ordinances.

(b)

1. (1) Priority for staff review of application documents will be assigned according to memorandum of agreement submittal dates for all projects.
2. (2) Provisions will be included in the memorandum of agreement for a revision of interim submittal dates when circumstances warrant such a revision, subject to commission staff approval.
3. (3) However, such extensions will result in a lower review priority for the project and may result in the loss of funding for a given fiscal year.

(c)

1. (1) The interest rate, finance fee, administration fee, and the submittal date penalty will be fixed when the memorandum of agreement is executed by both parties.
2. (2) These items will be those fees and rates in effect at that time.

(d)

1. (1) Failure of the applicant to submit documents on the dates specified in the memorandum of agreement, the submittal of substantially incomplete or inadequate documents, or not having a certifiable application on the date specified may result in the imposition of the submittal date penalty.
2. (2) The commission staff will then revise the submittal schedule as needed.
3. (3) The submittal date penalty will be stated in the executed memorandum of agreement.

(e)

1. (1) All engineering subagreements for planning and design that are executed by parties to a memorandum of agreement with the commission staff shall contain a clause addressing the nonperformance or negligence of the consulting engineering firm.

2. (2) This clause shall:

   1. (A) Incorporate the scheduled submittal dates from the memorandum of agreement; and
   2. (B) Provide protection to the city for failure of performance by the consulting engineering firm.
3. (3) Subagreements shall be submitted to the commission staff for review and approval of this clause as a condition for the commission staff executing the memorandum of agreement.