1. (a) Time to submit applications. Applications and required additional data or information must be submitted in a timely basis. The failure to timely submit the application, the information necessary to complete the application or additional requested information will result in the bypass of the project on the Invited Projects List.

   1. (1) Deadline to submit application. Applicants shall submit a complete application by the deadlines established by the Board as detailed in the applicable IUP or the project will be ineligible for funding. The Applicant will be notified when an application is administratively complete.
   2. (2) Incomplete applications. An Applicant shall cure any deficiency in an application upon request from the executive administrator and shall submit all requested information within fourteen days from receipt of the notice of a deficiency.
   3. (3) Additional information. The Applicant shall submit any additional or modified information or data required by the executive administrator within fourteen days of the request for same, regardless of the expiration of other applicable deadlines in this section.
   4. (4) Extension of time. The executive administrator may grant an extension of time to complete the application or to receive additional information and data if the Applicant can show good cause for the delay or if the delay is caused by an event of force majeure. The executive administrator exercises sole discretion in determining whether and to what extent to grant a time extension.

2. (b) Required application information. For eligible public Applicants and eligible NPNC Applicants that are also eligible public Applicants, an application shall be in the form and numbers prescribed by the executive administrator and, in addition to any other information that may be required by the executive administrator or the Board, the Applicant shall provide at a minimum the following documentation:

   1. (1) a resolution from its governing body that shall:

      1. (A) request financial assistance, identifying the amount of requested assistance;
      2. (B) designate the authorized representative to act on behalf of the governing body; and
      3. (C) authorize the representative to execute the application, appear before the Board on behalf of the Applicant, and submit such other documentation as may be required by the executive;

   2. (2) a notarized affidavit from the authorized representative stating that:

      1. (A) the decision to request financial assistance from the Board was made in a public meeting held in accordance with the Open Meetings Act (Government Code, Chapter 551) and after providing all such notice as is required by the Open Meetings Act or, for a corporation, that the decision to request financial assistance from the Board was made in a meeting open to all customers after providing all customers written notice at least 72 hours prior to such meeting;
      2. (B) the information submitted in the application is true and correct according to best knowledge and belief of the representative;
      3. (C) the Applicant has no outstanding judgments, orders, fines, penalties, taxes, assessment or other enforcement or compliance issues of any kind or nature by EPA, the Commission, Texas Comptroller of Public Accounts, Texas Office of the Secretary of State, or any other federal, state or local government, that would materially affect the Applicant's ability to repay its debt, or identifying such judgments, orders, fines, penalties, taxes, assessment or other enforcement or compliance issue as may be outstanding for the Applicant;
      4. (D) the Applicant warrants compliance with the representations made in the application in the event that the Board provides the financial assistance; and
      5. (E) the Applicant will comply with all applicable federal laws, rules, and regulations as well as the laws of this State and the rules and regulations of the Board;

   3. (3) copies of the following project documents:

      1. (A) any draft or executed contracts for consulting services to be used by the Applicant in applying for financial assistance or constructing the proposed project, including but not limited to, financial advisor, engineer, and bond counsel; and
      2. (B) contracts for engineering services should include the scope of services, level of effort, costs, project schedules, and other information necessary for adequate review by the executive administrator. A project schedule shall be provided with the contract; the schedule must provide firm timelines for the completion of each phase of a project and note the milestones within the phase of the project;
   4. (4) a citation to the specific legal authority in the Texas Constitution and statutes under which the Applicant is authorized to provide the service for which the Applicant is receiving financial assistance as well as the legal documentation identifying and establishing the legal existence of the Applicant;
   5. (5) if the Applicant provides or will provide water supply or treatment service to another service provider, or receives such service from another service provider, the proposed agreement, contract, or other documentation which legally establishes such service relationship, with the final and binding agreements provided prior to closing;
   6. (6) documentation of the ownership interest, with supporting legal documentation, for the property on which proposed project shall be located, or if the property is to be acquired, certification that the Applicant has the necessary legal power and authority to acquire the property;
   7. (7) if financing of the project will require a contractual loan agreement or the sale of bonds to the Board payable either wholly or in part from revenues of contracts with others, a copy of any actual or proposed contracts under which Applicant's gross income is expected to accrue. Before financial assistance is closed, an Applicant shall submit executed copies of such contracts to the executive administrator;
   8. (8) if the bonds to be sold to the Board are revenue bonds secured by a subordinate lien, a copy of the authorizing instrument of the governing body for all prior and outstanding bonds shall be furnished;
   9. (9) if a bond election is required by law to authorize the issuance of bonds to finance the project, the executive administrator may require Applicant to provide the election date and election results necessary for the issuance of the bonds as part of the application or prior to closing;
   10. (10) an audit of the Applicant for the preceding year prepared in accordance with generally accepted auditing standards by a certified public accountant or licensed public accountant; and
   11. (11) if additional funds are necessary to complete the project, or if the applicant has applied for and/or received a commitment from any other source for the project or any aspect of the project, a listing of those sources, including total project costs, financing terms, and current status of the funding requests.

3. (c) For eligible private Applicants and eligible NPNC Applicants that are not also eligible public Applicants, an application shall be in the form and numbers prescribed by the executive administrator, and, in addition to any other information that may be required by the executive administrator or the Board, such Applicant shall provide:

   1. (1) the legal documentation identifying and establishing the legal existence of the Applicant, including articles of incorporation with certificate of good standing or partnership agreements;
   2. (2) the documentation identifying and establishing full legal and equitable ownership interests of the real and personal property that constitute the water system held by the Applicant;

   3. (3) if the documentation of ownership indicates that the Applicant is a legal entity other than a sole proprietorship, the Applicant shall provide:

      1. (A) identification of any affiliated interests or affiliates; and

      2. (B) a notarized statement from each entity holding an ownership interest:

         1. (i) identifying an individual whom may act as the representative on behalf of each legal entity which has been identified as maintaining an ownership interest in the Applicant;
         2. (ii) authorizing such representative to submit an application and such other documentation as may be required by the executive administrator;

   4. (4) identification of the authority to provide the service for which the assistance is requested which shall include:

      1. (A) a map of the area served acceptable to the executive administrator;
      2. (B) if the Applicant provides or will provide water supply or treatment service to another service provider, or receives such service from another service provider, the proposed agreement, contract, or other documentation which legally establishes such service relationship, with the final and binding agreements provided prior to closing; and
      3. (C) for utilities, as defined pursuant to Commission rules, the Certificate of Public Convenience and Necessity number and a service area map;

   5. (5) a notarized affidavit by the designated representative of the Applicant:

      1. (A) for eligible private Applicants, stating that the decision to request financial assistance from the Board was made in a meeting open to all customers and after providing all customers written notice at least 72 hours prior to the meeting that a decision to request public assistance would be made during such meeting;
      2. (B) requesting financial assistance and identifying the amount of requested assistance;
      3. (C) stating that the information submitted in the application is true and correct according to belief and knowledge of the representative;
      4. (D) stating that the Applicant or any of its affiliates or affiliated interests has no outstanding judgments, orders, fines, penalties, taxes, assessment or other enforcement or compliance issue of any kind or nature by EPA, the Commission, Texas Comptroller of Public Accounts, Texas Office of the Secretary of State, or any other federal, state or local government, that would materially affect the Applicant's ability to repay its debt, or identifying such judgments, orders, fines, penalties, taxes, assessment or other enforcement or compliance issue as may be outstanding against the Applicant or any of its affiliates or affiliated interests;
      5. (E) stating that each entity with an ownership interest warrants compliance with representations made in the application in the event that the Board provides the financial assistance; and
      6. (F) assuring compliance with all applicable federal laws, rules, and regulations as well as the laws of this State and the rules and regulations of the Board;

   6. (6) copies of the following project documents:

      1. (A) any draft or executed contracts for consulting services to be used by the Applicant in applying for financial assistance or constructing the proposed project, to include, but not limited to, financial advisor, engineer, and bond counsel; and
      2. (B) contracts for engineering services should include the scope of services, level of effort, costs, project schedules, and other information necessary for adequate review by the executive administrator. A project schedule shall be provided with the contract; the schedule must provide firm timelines for the completion of each phase of a project and note the milestones within the phase of the project;

   7. (7) a business plan that:

      1. (A) identifies by month for the next 18 months, or for the time period of project construction, whichever is longer, anticipated revenues, including any anticipated rate increases, and anticipated expenditures; and
      2. (B) provides five year historical data on system revenue and expenditures;
   8. (8) copies of the federal income tax returns for Applicant for the two previous tax years;
   9. (9) documentation of any bankruptcy proceedings for the Applicant or any affiliated interests or affiliates for the preceding five years or a sworn statement that the Applicant or any affiliated interests or affiliates has not been a party to a bankruptcy proceeding for the preceding five years;
   10. (10) if any part of the community water system has been pledged or otherwise used as security for any other indebtedness of the Applicant or an affiliate or affiliated interest, a copy of the outstanding indebtedness;
   11. (11) if financing of the project will require a contractual loan agreement or the sale of bonds to the Board payable either wholly or in part from revenues of contracts with others, a copy of any actual or proposed contracts under which Applicant's gross income is expected to accrue. Before the financial assistance is closed, an Applicant shall submit executed copies of such contracts to the executive administrator;
   12. (12) if the Applicant is required to utilize a surcharge or otherwise intends to rely on an increase in the rate that it is charging in order to repay the requested financial assistance, a copy of the acknowledgment from the Commission that the proposed rate change filing has been received;
   13. (13) an audit of the Applicant for the preceding year prepared in accordance with generally accepted auditing standards by a certified public accountant or licensed public accountant; and
   14. (14) if additional funds are necessary to complete the project, or if the Applicant has applied for and/or received a commitment from any other source for the project or any aspect of the project, a listing of those sources, including total project costs, financing terms, and current status of the funding requests.

Source Note:The provisions of this §371.31 adopted to be effective August 4, 2010, 35 TexReg 6680; amended to be effective April 28, 2011, 36 TexReg 2610; amended to be effective July 30, 2012, 37 TexReg 5602.