PURPOSE: This rule defines the department’s grant eligibility and a means of administering the state funds appropriated for rural community and sewer district sanitary sewer collection systems by defining rural communities and sewer districts.

1. (1) Grant Application Requirements.

   1. (A) An application for a grant shall be submitted on forms provided by the department. The application shall be supported by the necessary documents and forms from other state and federal grant or lending agencies or private lending agencies to enable the department to establish eligibility for grant funds.
   2. (B) The project for which the grant application is submitted shall comply with appropriate state and local laws, rules and ordinances.

   3. (C) The grant application shall contain the information identified in (1)(C)1.–4. of this rule:

      1. 1. The preliminary engineering study

for the proposed project including, but not limited to, the following items: development and administration costs; land, structures, right-of-way costs; legal costs; engineering costs; interest costs; equipment costs, contingencies; other costs; total project costs; and other information as required in rule 10 CSR 20-8.110;

1. 2. Information required to determine the

cost per contracted connection of the proposed project;

1. 3. The median annual gross income of

the residents in the district or community as determined by the latest census; and

1. 4. Information required to determine the

ratio of contracted users to potential users.

1. (2) Eligibility Requirements.

   1. (A) Grants will not exceed fourteen hundred dollars ($1400) per contracted connection or fifty percent (50%) of the eligible project cost, whichever is less.
   2. (B) No single grant shall exceed one-third (1/3) of that particular year’s appropriation or four hundred fifty thousand dollars ($450,000) whichever is greater.
   3. (C) Grants shall be limited to rural communities, neighborhood improvement districts or sewer districts of less than ten thousand (10,000) population.
   4. (D) Grants shall be limited to construction of new sewage collection systems only. House laterals are not eligible.
   5. (E) No applicant shall receive more than one (1) grant for a sewer collection project in any two (2)-year period.
   6. (F) The ratio of contracted users to potential users must be at least seventy-five percent (75%).
   7. (G) Grants cannot be used in combination with other department administered grants, unless the monthly user charge exceeds twenty dollars ($20) per month, and only used then to the extent necessary to reduce the monthly charge to twenty dollars ($20) per month. The monthly user charge calculation under this provision shall include debt retirement if that debt is secured by revenues of the public wastewater or drinking water system, property taxes or other such revenue sources that are directly attributable to the system users.

2. (3) Grant Priorities.

   1. (A) Priorities for grants awarded under this rule shall be established by the department. Preference will be given to those applicants who are on the forty percent (40%) grant fundable list administered under 10 CSR 20- 4.023 or are applying for loans administered under 10 CSR 20-4.042.
   2. (B) The establishment of priorities and determination of relative need will be coordinated with other state and federal grant and lending agencies.

3. (4) Approval and Payment of Grants.

   1. (A) The applicant shall be notified by the department when the grant application has been approved. Grant award shall be made upon receipt and approval of bid documents and executed contract documents.

   2. (B) Installment payments of the grant shall be made at the request of the applicant and shall be based on expenditures outlined in paragraph (1)(C)1. of this rule. Payments will be made in equal installments as listed in the following paragraphs in this section;

      1. 1. A first installment will be made when

not less than twenty-five percent (25%) of the construction of the project is completed based on the contractor’s pay estimates;

1. 2. A second installment will be made

when not less than fifty percent (50%) of the construction of the project is completed based on the contractor’s pay estimates:

1. 3. A third installment will be made

when not less than seventy-five percent (75%) of the construction of the project is completed based on the contractor’s pay estimates; and

1. 4. A fourth installment will be made

when the project is completed, and upon submission of a completed statement of work form provided by the department, departmen- 10 CSR 20-4

tal approval of a statement of project receipts and expenditures and a final inspection by the department.

1. (C) Any cost of work completed after submission of the statement of work completed form shall not be considered an eligible project cost. The grant amount will be reduced, if necessary, to reflect actual final project costs at the time of final payment.
2. (D) An audit to verify expenditure of grant funds may be made by the department after the completion of each approved project.

AUTHORITY: sections 640.600, RSMo (1994) and 640.615, RSMo (Cum. Supp. 1989).* Original rule filed Feb. 2, 1983, effective July 1, 1983. Amended: Filed Nov. 27, 1985, effective Feb. 25, 1986. Amended: Filed Aug. 30, 1989, effective Nov. 27, 1989. Amended: Filed Sept. 4, 1991, effective Feb. 6, 1992. Amended: Filed April 14, 1994, effective Nov. 30, 1994. Amended: Filed March 1, 1996, effective Nov. 30, 1996. *Original authority 640.600 and 640.615, RSMo 1989. Information for Public Water Supply District, Sewer District, and Certain Municipal Sewer Systems A. Basic Requirement For Grants (All applications for grants are subject to the following requirements): (1) Ratio of contracted users to potential users shall not be less than seventy-five percent. (2) The grant shall not be in excess of $1400 per connection. (3) No district or system may receive more than one grant for sewers in any two (2)-year period. (4) No grant shall be finally approved until applicant furnishes evidence of a commitment from the primary financial source. If these requirements have been met, submit Section I, Form E2.61 to the Department of Natural Resources; if not, submit pre-application form on reverse side. B. Applicant Responsibilities. (1) Establish legal boundaries of district or area served. (2) Provide preliminary engineering cost study include: (a) Area served. (b) Number of customers. (c) Capacity for future growth. (d) Cost per connection. (3) Submit engineering cost study for approval. (4) Determine for district or community: (a) Bonded indebtedness. (b) Financial condition. (c) Economic level. (d) Need for system. (5) Develop and implement a financing plan. (6) Provide and obtain approval of detailed plans and specifications. (7) Obtain commitment for primary financing. (8) Complete the application and submit to Department of Natural Resources. (e) Number of users. (f) Preliminary design. (g) Other pertinent information. Missouri Department of Natural Resources P.O. Box 176 Jefferson City, MO 65102 573/751-1300 A. Applicant 1. Name (Legal Name) 2. Address (City or Town) (County) (State) (Zip Code) B. Project 1. Title 2. Type of Project G Public Water Supply District G Rural Community Sewer System G Sewage Collection G Sewer District G Sewage Treatment 3. Geographic Location of Project 4. Localities to be Served 5. Project Classification G New G Expansion of Existing System 6. Status of Project. Indicate by check mark the steps that have been completed as of this date relative to planning and engineering of this project. A—Organization Legally Organized G B—Engineering Report Authorized G Underway G Completed G Approved G C—Primary Financing Underway G Tentative G Approved G D—Detailed Plans Authorized G Underway G Completed G Approved G Signed______________________________________ Title________________________________Date___________________ E—Applicant Financial Funds Available G Bond Election Date Set G Approved G Bonds Sold G F—Funding Grant Needed G Federal Loan G Federal Grant G Revenue Bonds G General Obligation Bonds G G—Comprehensive Planning Conforms to Local G Regional G State G Pre-Application General Information G Rural Community Water Supply G Other Municipal Sewer System 10 CSR 20-4 H—Proposed Project Scheduling Date Anticipate Grant_________ Requirements will be completed__________________ After funds offered, construction contract will be let in ___months Submit To: Department of Natural Resources Water Supply Program P.O. Box 176 Jefferson City, MO 65102