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) Grant Application Requirements.

1. (A) Applicants must have submitted a preliminary project proposal to the Missouri Water and Wastewater Review Committee (MWWRC) and received an invitation from the MWWRC to apply for financial assistance.
2. (B) 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.
3. (C) The project for which the grant application is submitted shall comply with appropriate state and local laws, rules and ordinances.

4. (D) 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 household 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, departmental 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.

1. (5) If at any time during the twenty (20)-year design life of the facility(ies) funded under this rule is sold, either outright or on contract for deed, to other than a political subdivision of the state, the state shall receive reimbursement of the grant funds. The total amount of grant funds to be reimbursed shall be based on a twenty (20)-year straight-line depreciation. Grant funds to be reimbursed shall become due and payable upon transfer of ownership of the facility(ies).

AUTHORITY: section 640.600, RSMo 1994 * 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. Amended: Filed June 24, 1999, effective March 30, 2000.

*Original authority: 640.600, RSMo 1989.