DWSRF_Contracting_Requirements.pdf

APPENDIX

DRINKING WATER STATE REVOLVING FUND

FEDERAL & STATE CONTRACTING REQUIREMENTS

RCSA SECTION 22a-482 CWF CONTRACT REQUIREMENTS

EXECUTIVE ORDER 11246 (FEDERAL EEO)

EXECUTIVE ORDER No. 3 (GOV. MESKILL JUNE 16, 1971)

EXECUTIVE ORDER No. 17 GOV. MESKILL FEBRUARY 15, 1973)

EXECUTIVE ORDER No. 16 (GOV. ROWLAND AUGUST 4, 1999)

EXECUTIVE ORDER 12549 (DEBARMENT AND SUSPENSION)

CLEAN WATER FUND MEMORANDUM (2019-003)

STATE OF CT DEPT. PUBLIC HEALTH MBE/WBE (DBE)

UTILIZATION SEMI-ANNUAL REPORTING FORM,

INSTRUCTIONS, & DBE SUBCONTRACTOR VERIFICATION

FORM

AMERICAN IRON AND STEEL PROVISIONS

De MINIMIS ON-GOING TRACKING FORM &

De MINIMIS FINAL UTILIZATION AND CERTIFICATION FORM

REGULATIONS OF CONNECTICUT STATE AGENCIES

SECTION 22a-482 CLEAN WATER FUND

CONTRACT REQUIREMENTS

Clean Water Fund

Sec. 22a-482-1 Introduction and Priority Management System

Sec. 22a-482-1 (a) Purpose and Limitations

(a) Definitions as used in Sections 22a-482-1 to 22a-482-4 inclusive.

(1) "Act" means the Federal Clean Water Act (33 U.S.C. 1251 et seq., as amended).

(2) "Ad valorem tax" means a tax based upon the value of real property.

(3) "Applicant" means a municipality as defined in C.G.S. Section 22a-475.

(4) "Architectural or engineering services" means consultation, investigations, reporting and design services offered within the scope of the practice of architecture or professional engineering as defined by the laws of the State of Connecticut.

(5) "Building" means the erection, acquisition, alteration, remodeling, improvement or extension of pollution abatement facilities.

(6) "Cash flow projection" means a schedule of expenditures to municipal prime contracts throughout the life of the project.

(7) “Clean Water Fund” means the fund created under section 22a-475 to 22a-483 inclusive of the General Statutes

(8) "Collector sewer" means the common lateral sewers, within a publicly owned sewer system, which are primarily installed to receive wastewaters directly from facilities which convey wastewaters from individual systems, or from private property, and which include service "Y" connections designed for connection with those facilities including:

(A) Crossover sewers connecting more than one property on one side of a major street, road, or highway to a lateral sewer on the other side when more cost effective than parallel sewers and

(B) Pumping units and pressurized lines serving individual structures or groups of structures when such units are cost-effective and are owned and maintained by the municipality.

This definition excludes other facilities which convey wastewater from individual structures, from private property to the public lateral sewer, or its equivalent and also excludes facilities associated with alternatives to conventional pollution abatement facilities in small communities.

(9) "Combined sewer" means a sewer that is designed as a sanitary sewer and a storm sewer.

(10) "Compatible industrial wastewater” means wastewater that is produced by an industrial user, has a pollutant strength and other characteristics similar to those of domestic wastewater, and can be efficiently and effectively transported and treated with domestic wastewater.

(11) "Complete waste treatment system" means a complete waste treatment system that consists of all the pollution abatement facilities necessary to meet the requirements of Title III of the Act, involving the transport of wastewater from individual homes or buildings to a plant or facility where treatment of the wastewater is accomplished; the treatment of the wastewater to remove pollutants; and the ultimate disposal, including recycling or reuse, of the treated wastewater and residues which result from the treatment process.

(12) "Construction" means the erection, building, acquisition, alteration, remodeling, improvement or extension of pollution abatement facilities or the inspection and supervision of any of the foregoing items.

(13) "Cost Analysis" means the review and evaluation of each element of subagreement cost to determine reasonableness, allocability and allowability.

(14) "Design" means studies, surveys, plans, working drawings, specifications, procedures, field testing of innovative and alternative wastewater treatment processes and techniques (excluding operation and maintenance) requisite for the construction of pollution abatement facilities.

(15) "Excessive infiltration/inflow" means the quantity of infiltration/inflow which can be economically eliminated from a sewer system as determined in a cost-effectiveness analysis that compares the costs for correcting the infiltration/inflow conditions to the total costs for transportation and treatment of the infiltration/inflow.

(16) "Grantee" means a municipality as defined in C.G.S. Section 22a-475.

(17) "Individual systems" means privately owned alternative pollution abatement facilities

(including dual waterless/gray water systems) serving one or more principal residences or small commercial establishments. Normally these are onsite systems with localized treatment and disposal of wastewater, but may include systems serving a cluster of principal residences or small commercial establishments.

(18) "Infiltration" means water other than wastewater that enters a sewer system (including sewer service connections and foundation drains) from the ground through such means as defective pipes, pipe joints, connections, or manholes. Infiltration does not include, and is distinguished from, inflow.

(19) "Inflow" means water other than wastewater that enters a sewer system (including sewer service connections) from sources such as, but not limited o: roof leaders, cellar drains, yard drains, area drains, drains from springs and swampy areas, manholes covers, connections between storm sewers and sanitary sewers, catch basins, cooling towers, storm waters, surface runoff, street wash waters, or drainage. Inflow does not include, and is distinguished from, infiltration.

(20) "Initiation of operation" means the date specified by the municipality on which use of the project begins for the purpose that it was planned, designed and built.

(21) "Interceptor sewer" means a sewer which is designed for one or more of the following purposes:

(A) To intercept wastewater from collector sewers and convey such wastes directly to a treatment facility or another interceptor.

(B) To replace an existing pollution abatement facility and transport the waste to an adjoining collector sewer or interceptor sewer for conveyance to a treatment plant.

(C) To transport wastewater from one or more municipal collector sewers to another municipality or to a regional plant for treatment.

(D) To intercept an existing discharge of raw or inadequately treated wastewater for transport directly to another interceptor or to a pollution abatement facility.

(22) "Municipality" is as defined in C.G.S. Section 22a-475.

(23) "Nonexcessive infiltration" means the quantity of wastewater flow which cannot be economically and effectively eliminated from a sewer system as determined in a cost-effectiveness analysis.

(24) "Nonexcessive inflow" means the rainfall induced peak inflow rate which does not result in chronic operational problems related to hydraulic overloading of the pollution abatement facility during storm events. These problems may include surcharging, backups, bypasses, and overflows.

(25) "Operation and maintenance" means activities required to assure the dependable and economical function of pollution abatement facilities.

(A) Maintenance: Preservation of functional integrity and efficiency of equipment and structures. This includes preventive maintenance, corrective maintenance and replacement of equipment as needed during the useful life of the facility.

(B) Operation: Control of the unit processes and equipment which make up the pollution abatement facility. This includes financial and personnel management, records, laboratory control, process control, safety and emergency operation planning.

(26) "Pollution abatement facility" is as defined in. Section 22a-475 of the General Statutes and is synonymous with the terms project, treatment works, treatment system, and treatment facility.

(27) "Pollution abatement facility phase or segment" means any portion of a complete pollution abatement facility described in an approved engineering report which can be identified as a contract or discrete sub-item or subcontract. Completion of building of a pollution abatement facility phase or segment may, but need not in and of itself, result in an operable pollution abatement facility.

(28) "Planning" means all necessary engineering reports and studies to determine the feasibility of pollution abatement facilities including pertinent engineering, architectural, legal, fiscal and economic investigations prior to design.

(29) "Project performance standards" means the performance and operations requirements applicable to a project including the enforceable requirements of the Act and the specifications which the project is planned and designed to meet.

(30) "Price analysis" means the process of evaluating a prospective price without regard to the contractor's separate cost elements and proposed profit. Price analysis determines the reasonableness of the proposed subagreement price based on adequate price competition, previous experience with similar work, established catalog or market price, law, or regulation.

(31) "Principal residence" means the habitation of a family or household for at least 51 percent of the year. Second homes, vacation or recreation residences are not included in this definition.

(32) "Profit" means the net proceeds obtained by deducting all allowable costs (direct and indirect) from the price.

(33) "Project schedule" means a timetable specifying the dates of key project events including public notices of proposed procurement actions, subagreement awards, issuance of notice to proceed with building, key milestones in the building, initiation of operation and completion of the project.

(34) "Replacement" means expenditures for obtaining and installing equipment, accessories, or appurtenances which are necessary during the useful life of the pollution abatement facility to maintain the capacity and performance for which such works were designed and constructed. The term "operation and maintenance" includes replacement.

(35) "Sanitary sewer" means a conduit intended to carry liquid and water - carried wastes from residences, commercial buildings, industrial plants and institutions together with minor quantities of ground, storm and surface waters that are not admitted intentionally.

(36) "Services" means a contractor's labor, time or efforts which do not involve the delivery of a specific end item, other than documents which may result from the contractor's labor, time or efforts (e.g., reports, design drawings, specifications). This term does not include employment agreements or collective bargaining agreements.

(37) "Small commercial establishments" means for purposes of the provisions contained in these regulations providing funding for privately owned individual systems, private commercial establishments such as" restaurants, hotels, stores, filling stations, or recreational facilities; or private, non-profit entities such as: churches, schools, hospitals, or charitable organizations having dry weather wastewater flows of less than 25,000 gallons per day.

(38) "Small community" means for purposes of the provisions contained in these regulations providing funding for small community systems, any municipality with a population of 5,000 or less, or highly dispersed sections of large municipalities, as determined by the Commissioner.

(39) "Storm sewer" means a sewer designed to carry only storm waters, surface runoff, street wash waters and drainage.

(40) "Subagreement" means a written agreement between a grant recipient and another party

(other than another public agency) and any lower tier agreement for services, supplies, equipment, or construction necessary to complete the project. Subagreements include contracts and subcontracts for personal and professional services, agreements with consultants and purchase orders.

(41) "Useful life" means the period during which a pollution abatement facility will be operated.

(42) "User charge" means a charge levied on users of a pollution abatement facility, or that portion of the ad valorem taxes paid by a user, for the user's proportionate share of the cost of operation and maintenance (including replacement) of such facility.

(43) "Value engineering" means a specialized cost control technique which uses a systematic and creative approach to identify and to focus on unnecessarily high cost in a project in order to arrive at a cost saving without sacrificing the reliability or efficiency of the project.

Sec. 22a-482-1 (b) Development and Format of Project Priority List.

(1) The Commissioner shall make funding assistance available for projects on a state priority list as established under this section for such periods as authorized by the Legislature under Chapter 446k;

(2) The Commissioner shall prepare an ordered priority listing of projects for which state funding assistance shall be made available for the period effective October 1st to the following September 30th corresponding to the federal fiscal year;

(3) The priority list shall contain two portions: (i) a fundable portion consisting of those highest priority projects ready for construction and anticipated to be funded within the current federal fiscal year, and (ii) a planning portion consisting of those projects that may be funded from future authorized allotments.

Sec. 22a-482-1 (c) State Priority System and Project Priority List.

(1) Priority Rating Criteria. All projects eligible for funding assistance shall be evaluated and assigned a priority rating in accordance with the criteria set forth below and will appear on the project priority list. The Commissioner may determine that large-scale, multi-phase projects be segregated and rated separately. Each project shall be evaluated and given points as applicable for each of the following rating criteria, the sum of which shall determine its priority number. These criteria are consistent with the rating system used to establish Federal funding priorities and are shown in the following table:

PRIORITY RATING POINT SYSTEM

I. Benefit of project upon adversely impacted potable water supplies. (10 points maximum)

A. Impaired water supply affecting less than 25 people - 2 points.

B. Impaired water supply affecting 26 to 100 people - 4 points.

C. Impaired water supply affecting 101 to 1,000 people - 6 points.

D. Impaired water supply affecting 1001 to 5,000 people - 8 points.

E. Impaired water supply affecting more than 5,000 people - 10 points.

II. Benefit of project toward attainment of designated water quality standards and goals. (28 points maximum)

A. Project is necessary for attainment of water quality standards where the impacted water resource is:

1. Smaller than main stem of a sub-regional drainage basin or groundwater goals will be attained - 5 points.

2. Main stem of sub-regional drainage basin - 10 points.

3. Main stem of regional drainage basin - 15 points.

4. Main stem of major drainage basin - 20 points.

5. Projects which impact coastal areas are considered the equivalent of a regional drainage basin and assigned 15 points.

B. Project will enable impacted waters to meet minimum dissolved oxygen standards - 8 points.

For the purposes of the Priority Rating Point System, the drainage basin designations are defined on the map entitled "Natural Drainage Basins in Connecticut: 1981" prepared by the Natural Resources Center of the Department of Environmental Protection in cooperation with the United State Geological Services.

C. Project will enable impacted waters to meet minimum dissolved oxygen standards – 8 points.

III. Project will enhance specific water resource values. (24 points maximum)

A. Fishery resources - (6 points maximum).

1. Project will improve recreational fisheries - 3 points.

2. Project will improve anadromous fisheries - 6 points.

3. Project will open new steams for fish stocking programs - 6 points.

B. Shellfish resources - (6 points maximum).

1. Project will lower coliform bacteria levels in the waters of shellfish beds - 3 points.

2. Project will open new areas for shellfishing - 6 points.

C. Swimming (6 points maximum).

1. Project will enhance existing swimming opportunities - 3 points.

2. Project will allow for new swimming opportunities - 6 points.

D. Eutrophication - (6 points maximum).

1. Project will reduce eutrophication of a lake or impoundment by diverting septic system discharges out of a drainage basin - 3 points.

2. Project will reduce eutrophication of a lake or impoundment by providing nutrient removal in a municipal treatment plant or by relocating an existing treatment plant discharge - 6 points.

IV. Population equivalent (including commercial and industrial waste) initially served by the project.

(12 points maximum)

A. Less than 5000 - 2 points.

B. 5,000 but less than 10,000 - 4 points.

C. 10,000 but less than 20,000 - 6 points.

D. 20,000 but less than 40,000 - 8 points.

E. 40,000 but less than 75,000 - 10 points.

F. 75,000 or greater - 12 points

V. Health and Sanitation Impacts. (6 points)

Project will eliminate ponding of sewage from failing septic systems, backup of sewage into basements, or overflow of sewage in streets (combined sewer overflow correction projects are not eligible for points).

VI. Miscellaneous. (20 points maximum)

A. Project involves the upgrading of an existing primary facility in order to comply with secondary treatment standards - 5 points.

B. Project that will result in Commissioner rescinding an Order concerning a sewer connection moratorium - 5 points.

C. Project will eliminate nuisance odors associated with treatment processes or pump stations but exclusive of large-scale expansion or upgrading of pollution abatement facilities - 5 points.

D. Remedial action will improve treatment plant operations where treatment standards are already being achieved - 5 points.

VII. Connecticut Housing Partnership Program – Development Designation Community has received development designation – 3 points.

Note: In cases where the priority rating or score is the same for two or more projects, the order is determined by highest score assigned cumulatively in criteria II (total), III (total), and IV. If a tie still remains, preference will be given to those projects ready to proceed at the earliest date within the limit of funds available.

(2) Project Ranking Mechanism - The relative position or rank of a project on the priority list for funding will be determined by its priority number and its readiness to proceed to construction during the funding year under consideration. The Commissioner may choose to assign a higher rank for projects which fall into one of the following categories:

(A) Category I- Consists of projects for which a construction application was submitted for review during the previous funding period and which were on the fundable portion of that year's priority list. These applications have undergone preliminary review, are essentially complete and represent the good faith efforts of municipalities to comply with grant program requirements. Only those projects from the fundable portion of the previous year's priority list can be placed in this category;

(B) Category II - Consists of projects where previously funded segments of pollution abatement facilities have been built and are not usable or are severely restricted in use until the downstream project(s) are fully constructed and operational. This category enables these projects to be highly ranked for construction and thus allow full use of all facilities; or

(C) Category III - Consists of projects which remedy documented pollution of potable water supplies. In order to qualify for high ranking for funding within this special category, projects must meet the following basic criteria: 1. the scope of the pollution problem is significant; 2. the affected water supply is not potable, i.e.

does not meet minimum drinking water standards and requires treatment beyond chlorination; and 3. pollution abatement facilities are the cost-effective solution to the problem. This category does not apply to potential emergency use of class B waters for potable water supply as defined in the Connecticut Water Quality Standards adopted pursuant to Section 22a-426.

(3) Order of Funding Priority. The Commissioner shall distribute funds subject to the requirements for public hearing set forth in this section. It is the goal to establish a balance between planning, design and construction. Therefore, all needs within the highest funding designation need not be fulfilled before proceeding to the next highest funding designation. The following paragraphs establish the general order in which assistance is made:

(A) Funds to finance temporary loans for planning and design pursuant to C.G.S.

Section 22a-478(e) necessary for planning and design for sewage facility projects;

(B) A reserve of funds to finance unanticipated cost increases for Projects previously funded;

(C) A reserve of funds sufficient to finance at least one small community project;

(D) Additional set asides which the Commissioner may establish if he or she determines that serious health or water quality problems caused by wastewater facilities are in the public interest to correct but will not receive sufficient priority to correct in a time frame he or she considers reasonable; and

(E) Funds available for construction.

(4) Annual Public Hearing. The amount of funds applied to each paragraph described in (3) above shall be determined annually by the Commissioner based upon available funds and shall be designated in a draft priority list. The draft priority list will indicate which specific projects are proposed to receive funding within each funding designation for the upcoming fiscal year and shall be made available to appropriate local officials at least 30 days prior to a specified date for Public Hearing. The Commissioner will consider all written and oral testimony presented at the Hearing and may elect to modify the draft priority list on the basis of such testimony. The Commissioner shall also indicate his or her reasons for accepting or rejecting any suggested revisions as part of the Hearing record. Following notice of any changes to the priority list which may result from the Hearing, the priority list shall be deemed final except for minor revisions allowable under Section 22a-482-1(d) (5).

(5) Revisions to the Priority List.

(A) The priority system shall include a project bypass procedure. The Commissioner may bypass a project on the fundable portion of the priority list if he or she determines that the bypassed project will not be ready to proceed within the first six months of the funding year. The Commissioner shall advise, in writing, each municipality he or she intends to bypass and the reasons therefore. Projects that are bypassed will retain their relative priority rating for consideration in future years.

Projects bypassed will be replaced by the next highest ranking project ready to proceed. Projects will be removed from the priority list the following year after they receive funding.

(B) Revisions to the priority list may be made at any time during the funding period. If the

Commissioner determines the change to be significant, a public hearing with appropriate notice will be held and all affected by such a change will be notified directly.

(Effective March 5, 1992)

Sec. 22a-482-2. Requirements for funding Project Agreements.

Sec. 22a-482-2 (a) Types of Projects.

The Commissioner is authorized to award assistance for the following types of projects:

(1) Planning: the preparation of engineering reports;

(2) Design: the preparation of contract plans and specifications; and

(3) Construction: the building of pollution abatement facilities and sewers.

Sec. 22a-482-2 (b) Level of State Assistance.

The amount of state funding assistance shall be based on the Commissioner's determination of eligibility and the provisions of section 22a-475 through 22a-483, inclusive, of the General Statutes.

Sec. 22a-482-2 (c) Applications for Funding Assistance.

A municipality applying for funding assistance shall file properly executed forms and applications prescribed by the Commissioner. In addition, the following supporting documentation shall be submitted as appropriate:

(1) An application for Engineering Report Funding Assistance which shall include:

(A) A Plan of Study including:

(i) The proposed planning area;

(ii) An identification of the entity or entities that will be conducting the planning;

(iii) The nature and scope of the proposed planning project and public participation program, including a schedule for the completion of specific tasks; and

(iv) An itemized description of the estimated engineering report costs;

(B) Proposed subagreements, or an explanation of the intended method of awarding subagreements, for performance of any substantial portion of the project;

(C) A resolution adopted by the municipality's Water Pollution Control Authority authorizing a specific person to file the application and execute the agreement. The resolution must be certified and sealed by the Town/City Clerk; and

(D) A cash flow projection.

(2) An Application for Design Funding Assistance which shall include:

(A) an engineering report meeting all the requirements set forth in Section 22a-482-

3(a);

(B) proposed subagreements, or an explanation of the intended method of awarding subagreements, for performance of any substantial portion of the project;

(C) a resolution adopted by the municipality's Water Pollution Control Authority authorizing a specific person to file the application and execute the agreement. The resolution must be certified and sealed by the Town/City Clerk;

(D) a value engineering (VE) commitment in compliance with Section 22a-482-3(d) for all design funding assistance applications for projects with a projected total building cost of $10 million or more, including the cost for interceptor and collector sewers. For those projects requiring VE, the municipality may propose, subject to the Commissioner's approval, to exclude interceptor and collector sewers from the scope of the VE analysis;

(E) proposed or executed (as determined appropriate by the Commissioner) intermunicipal agreements necessary for the construction and operation of the proposed pollution abatement facility for any facility serving two or more municipalities;

(F) a schedule for initiation and completion of the project work;

(G) evidence that local authority to construct the facilities has been obtained; and

(H) a Cash flow projection.

(3) An Application for Construction Assistance which shall include:

(A) All requirements for design funding assistance as specified in Section 22a-482-

2(c)(2);

(B) a final legal opinion stating that the acquisition of all sites, easements or rights-of-way necessary to assure undisturbed construction and operation and maintenance of the proposed project have been acquired. The cost of any real property eligible for funding assistance must reflect fair market value as determined by standard recognized appraisal methods;

(C) two copies of contract plans and specifications for the review and approval of the

Commissioner;

(D) a schedule for submission of a proper operation and maintenance program including a preliminary plan of operation;

(E) an approved user charge system developed in accordance with the requirements set forth in Section 22a-482-3(e);

(F) a Cash flow projection; and

(G) amounts and terms of any other Financial Assistance.

Sec. 22a-482-2 (d) Terms of Funding Assistance:

(1) No financial assistance shall be made for a pollution abatement facility that would provide capacity for new connections or other developments to be located in environmentally sensitive land such as wetlands, floodplains, prime agricultural lands, or regulated coastal zones. Appropriate and effective funding conditions (e.g. restricting sewer hook-ups) should be used where necessary to protect these resources from new development.

(2) The prime purpose in the award of construction assistance is to solve existing pollution problems and not intended to assist in new development.

(3) For engineering reports and design, no financial assistance will be allowed for any engineering work performed before award without the prior written approval of the

(4) Except as otherwise provided in this paragraph, no assistance for construction may be awarded for any construction which is initiated prior to the date of award. Preliminary construction work, such as advance acquisition of major equipment items requiring long lead times, acquisition of an option for the purchase of eligible land, or advance construction of minor portions of a pollution abatement facility, including associated engineering costs, in emergencies or instances where delay could result in significant cost increases, may be approved by the Commissioner after completion of environmental review, but only if the municipality submits a written and adequately substantiated request.

(5) The approval of a plan of study, an engineering report, plans and specifications or advance acquisition of equipment or advance construction will not constitute a commitment or approval of assistance for a subsequent phase of the project. In instances where such approval is obtained the applicant proceeds at its own risk, since payment for such costs cannot be made unless assistance for the project is awarded.

(6) The municipality shall notify the Commissioner that it has complied or will comply with the applicable procurement provisions of C.G.S. Section 22a-482-4(f), (g) and (h) before the award of any assistance.

(7) Within ninety (90) days after receipt of a completed application (excluding suspension periods for submission of supplemental information), the Commissioner will take one of the following actions: 1. approve for award; 2. defer due to lack of funding; or 3.

disapprove the application. The applicant shall be promptly notified in writing of any deferral or disapproval. A deferral or disapproval of an application shall not preclude its reconsideration or a reapplication.

(8) The Commissioner will transmit the funding agreement to the applicant for execution. The agreement must be executed by the applicant and returned within 3 calender weeks after receipt. The agreement shall set forth the approved project scope, budget (cash flow analysis), total project costs, and the approved commencement and completion dates for the project or major phases thereof.

(9) The project funding agreement shall set forth the amount of funding assistance. The amount may not exceed the amount of funds available.

(10) The amount and term of funding assistance shall be determined at the time of award. The time period is subject to extension for excusable delay, at the discretion of the

(11) The amount of financial assistance shall not exceed 100% of the cost eligible for a loan.

Calculation of a grant or loan available shall first include a deduction of financial assistance available from other sources.

(12) The municipality may finance short term debt through the marketplace or from the Clean

Water Fund.

(A) Accrued interest on funds borrowed from the marketplace shall be paid at the time of borrowing.

(B) Accrued interest on amounts borrowed from the fund may be either paid at the time of such borrowing or become part of the principal to be repaid over the term of the project and shall be determined by the Commissioner at the time of issuances of funding obligation the project funding obligation. Short term interest shall be charged at the rate of 2% per year compounded annually for all outstanding loan balances. Interest on short term obligations shall be computed on the basis of a year of 360 days and the number of days elapsed. Interest shall be charged from the date a check is issued from the fund to the municipality.

(13) Grant proceeds shall be disbursed only upon a determination by the Commissioner that satisfactory documentation of eligible grant cost has been received.

(14) The Commissioner shall establish a procedure for disbursement of grant and loan proceeds to the municipalities.

(15) The municipality shall use the proceeds of the Project Loan and the Project Grant solely for the purpose of funding the Project. The Municipality shall promptly disburse to all contractors the proceeds of such Project Loan and Project Grant on the same day that it receives proceeds from the state.

(16) The Municipality shall agree and covenant in the project funding agreement that it shall at all times do and perform all acts and things reasonably requested by the state to insure interest paid on any tax exempt obligations issued by the State to fund the Clean Water Fund shall for the purposes of Federal income taxation be excludable from the gross income of the recipients thereof under the Internal Revenue Code of 1986, as amended.

(17) The municipality shall have all project costs, loans, and grants audited by an auditor approved by the Commissioner.

(18) The Municipality shall repay the Clean Water Fund all outstanding loan balances including principal and interest accrued within twenty years from the scheduled completion date of the project.

(19) The Municipality shall establish a dedicated source of repayment of the loan satisfactory to the Commissioner.

(20) Each project loan obligation shall be paid in substantially equal annual installments of principal and interest or in annual installments of principal plus interest which shall be substantially equal and which shall be arranged that no principal installment payable in any year shall be less than the amount of any installment payable in any subsequent year.

(21) Payments on long term loan shall begin one year from the scheduled completion date of the project. Should excusable delay cause the actual completion to go beyond scheduled completion the Commissioner and the municipality shall enter into a project funding agreement to cover project cost incurred after the specified date.

(22) The commissioner shall make loans to the municipalities at an interest rate not to exceed two percent compounded annually.

(23) Interest on the loan shall be computed on the basis of 360 days and the actual number of days elapsed.

(24) The Commissioner may provide short term loans to municipalities for planning and design, as applicable, of an eligible water quality project. The Municipalities may not be required to begin repaying its short term loan for planning or design, as applicable, until six months after the date of completion of such planning or design provided the municipality must commence design or construction, as applicable, within six months.

(25) The municipality shall comply with the following Federal Laws and Executive Orders:

(A) Archeological and Historic Preservation Act of 1974, P.L. 93-291;

(B) Coastal Barrier Resources Act, 16 U.S.C. 3501 et seq.;

(C) Coastal Zone Management Act of 1972, P.L. 92-583;

(D) Endangered Species Act, 16 U.S.C. 1531, et seq.;

(E) Executive Order 11593, Protection and Enhancement of the Cultural Environment;

(F) Executive Order 11990, Protection of Wetlands;

(G) Farmland Protection Policy Act, 7 U.S.C. 4201 et. seq.;

(H) Fish and Wildlife Coordination Act, P.L. 85-624;

(I) National Historic Preservation Act of 1966, P.L. 89-665;

(J) Safe Drinking Water Act, section 1424(e), P.L. 92-523;

(K) Wild and Scenic Rivers Act, P.L. 90-542;

(L) Demonstration Cities and Metropolitan Development Act of 1966, P.L. 89-754;

(M) Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738;

(N) Brooks Murkowski Act;

(O) Age Discrimination Act, P.L. 135;

(P) Civil Rights Act of 1964, P.L. 88-352;

(Q) Section 13 of P.L. 92-500, prohibition against sex discrimination;

(R) Executive Order 11246, Equal Employment Opportunity;

(S) Executive Orders 11625 and 12138, Women's and Minority Business Enterprise;

(T) Rehabilitation Act of 1973, P.L. 93-112, including Executive Orders 11914 and

11250;

(U) Uniform Relocation and Real Property Acquisition Policies Act of 1970, P.L. 91-

646;

(V) Executive Order 12549, Debarment and Suspension;

(W) Executive Order 11988, Flood Plain Management; and

(X) Clean Air Act, 42 U.S.C. 7506(c).

Sec. 22a-482-3. Technical Program Elements

Sec. 22a-482-3 (a) Engineering Report Requirements

(1) General. Engineering reports consist of those necessary plans and studies which directly relate to the development of pollution abatement strategies and the construction of pollution abatement facilities necessary to comply with an Order to Abate Pollution as defined in C.G.S. Section 22a-423. The engineering report will demonstrate the need for the proposed pollution abatement facility through an evaluation of all feasible alternatives and shall demonstrate that the selected alternative is cost-effective, i.e. is the most economical means of meeting effluent and water quality goals while recognizing environmental considerations.

(2) Content of Engineering Reports. The content of the engineering report shall be determined by the Commissioner based on a pre-report conference with the municipality and its engineering consultant regarding the precise plan of study (engineering report outline) and resulting scope of services to be performed. Engineering reports must address as a minimum each of the following as determined appropriate by the Commissioner:

(A) A detailed evaluation of the existing and potential wastewater treatment and disposal problems in the study area;

(B) A cost-effective analysis of alternatives available to correct the pollution problems identified. The final selection of alternative(s) to correct the problems noted shall be based on the results of the cost-effectiveness analysis. The monetary costs to be considered must include the present worth or equivalent annual value of all capital costs and operation, maintenance and replacement costs. The interest rate used for this analysis shall be the rate established by the Federal Water Resources Council for use in federally funded projects. The population forecasting in the analysis shall be consistent with current projections of the Connecticut Office of Policy and Management. A cost-effective analysis shall include:

(i) The relationship of the size and capacity of the recommended facilities to the needs to be served, including any reserve capacity;

(ii) An evaluation of alternative flow and waste reduction measures, including nonstructural methods;

(iii) An evaluation of improved effluent quality attainable by upgrading the operation and maintenance and efficiency of existing facilities as an alternative or supplement to construction of new pollution abatement facilities;

(iv) An evaluation of the capability of each alternative to meet applicable effluent limitations and water quality standards;

(v) Various treatment techniques including: conventional biological or physical-chemical treatment and discharge systems; land application techniques and other innovative and alternative techniques which may result in recycling of water and pollutants; onsite and nonconventional systems, both community and individual;

(vi) An evaluation of the alternative methods for the ultimate disposal of treated wastewater and sludge materials resulting from the treatment process and a justification for the method(s) chosen; and

(vii) An adequate assessment of the expected environmental impact of alternatives (including sites) under the requirements of Section 22a-1a to 1f, inclusive, of the Connecticut General Statutes;

(C) If applicable, a demonstration of the non-existence or possible existence of excessive infiltration/inflow in the affected sewerage system;

(D) An identification of proposed effluent discharge limits if appropriate and a description of how the proposed project will result in compliance with any pollution abatement order issued by the Commissioner;

(E) A summary of public participation in the development of the engineering report;

(F) A brief statement demonstrating that the local authorities who will be implementing the plan have the necessary legal, financial, institutional, and managerial resources available to insure the construction, operation and maintenance of the proposed pollution abatement facilities;

(G) A brief description of potential opportunities for recreation, open space, and access to bodies of water afforded by the recommended project; and

(H) For the selected alternative, a concise description of at least the following:

(i) Estimated capital construction, and operation and maintenance costs;

(ii) Estimated cost of future expansion and long term needs for reconstruction of pollution abatement facilities following their useful life;

(iii) Cost impacts on pollution abatement facility users; and

(iv) A statement concerning the availability and estimated cost of any proposed treatment sites.

(3) Public Participation.

(A) The scope and level of detail of the public participation program shall be determined during the development of the plan of study. The program shall be comprised of public forums such as workshops, meetings and hearing(s) as necessary to promote public awareness and input into the planning process.

(B) At a minimum, prior to adoption of the engineering report, the municipality must hold a public hearing to describe the proposed program and action(s) and to assure that the public's concerns are fully considered.

(C) The time and place of the public hearing shall be conspicuously and adequately announced at least 10 days in advance, or for such longer period as may be required by local ordinance or charter. Copies of the engineering report must be made available for inspection by the public at least 10 days prior to the hearing.

(D) A request to waive the public hearing on an engineering report may be submitted in writing to the Commissioner when the municipality determines a public hearing is not necessary and would not serve the public interest.

(4) Environmental Review. Prior to the award of a project funding agreement for design or construction, the requirements of the Connecticut Environmental Policy Act (Section 22a-

1) shall have been met. The municipality must prepare an adequate environmental assessment of expected environmental impacts consistent with the requirements of Section 22a-1a to 1f of the Connecticut General Statutes as part of facility planning. Projects receiving financial assistance shall comply with the following:

(A) For any project not required in the environmental classification document to undergo an environmental impact evaluation or finding of no significant impact, the Commissioner shall publish a notice in a newspaper of community-wide circulation indicating the determination that a finding of no significant impact is not necessary and that supporting documentation for this determination is available for inspection;

(B) When in the determination of the Commissioner that significant changes in the project or environmental conditions have occurred, an amendment to the environmental impact evaluation or the finding of no significant impact or the determination that a finding of no significant impact is not necessary will be issued in accordance with the Connecticut Environmental Policy Act;

(C) For environmental impact evaluations or findings of no significant impact or determinations that a finding of no significant impact is not necessary five or more years old on projects seeking a construction project funding agreement, the Commissioner shall re-evaluate the project, environmental conditions and public comments and prior to financial award shall either:

(i) Issue a public notice in a newspaper of community-wide circulation reaffirming the decision to proceed with the project without revising the finding of no significant impact or environmental impact evaluation or reaffirming that a finding of no significant is not necessary;

(ii) Update information and prepare or amend the environmental impact evaluation or finding of no significant impact in accordance with the Connecticut Environmental Policy Act;

(iii) Withdraw the finding of no significant impact and prepare an environmental impact evaluation in accordance with the Connecticut Environmental Policy Act;

(D) In the development of the finding of no significant impact, the Commissioner shall include a description and analysis of the reasonable alternatives to the proposed action including no action.

Sec. 22a-482-3 (b) Small Community Systems.

Projects proposed to be funded from the reserve for small communities shall be for improvements to existing wastewater treatment systems or new collector sewers, interceptor sewers and treatment works serving small communities. Routine interceptor sewer extensions within municipalities that do not meet the definition of a small community are not eligible for funding from this reserve. Categories of projects eligible for assistance under this reserve are (1) projects involving improvements to or construction of collector sewers, interceptor sewers and treatment works for which the entire proposed service area within the municipality meets the definitions of a small community and (2) projects for interceptor sewers connecting a service area meeting the definition of a small community to a wastewater treatment facility in another municipality. In order to be eligible for funding under this reserve, the applicant must demonstrate to the satisfaction of the Commissioner that the only alternative to the proposed project would be the construction of new treatment works which would involve a discharge of treated wastewater which would result in violation of or require a revision to the State's Water Quality Standards and Criteria as adopted pursuant to C.G.S. Section 22a-426.

Sec. 22a-482-3 (c) Privately Owned Individual Systems.

(1) A municipality may apply for a funding assistance to construct privately owned pollution abatement facilities serving one or more principal residences or small commercial establishments.

(2) In addition to the engineering report requirements set forth in Section 22a-482-3(a) the municipality shall:

(A) Demonstrate that the total present worth cost and environmental impact of building the individual systems will be less than the present worth cost of a larger municipally owned pollution abatement facility;

(B) Demonstrate to the satisfaction of the Commissioner that the individual systems proposed are part of a technically feasible and implementable program which will successfully address all existing and potential wastewater treatment needs within the planning area;

(C) Certify that the principal residence or small commercial establishment was constructed before July 11, 1983, and inhabited or in use on or before that date;

(D) Apply on behalf of a number of individual units to be served in the planning area;

(E) Certify that, where public ownership of such works is not feasible, the municipality will have unlimited right of access to the site and to the system for the purpose of necessary inspection, maintenance, and repair;

(F) Certify that such treatment works will be properly operated and maintained and will comply with all other requirements of these regulations, state statutes, and the regulations of Connecticut State Agencies; and

(G) Certify that a user charge system established in compliance with these regulations will be developed and implemented to ensure the availability of financial resources sufficient to ensure the proper operation, maintenance, and eventual repair or replacement of funded facilities and those individual systems which are within the service area identified in paragraph (B) above but which are not required and replaced with the assistance funds.

Sec. 22a-482-3 (d) Value Engineering (VE)

(1) Value engineering proposal. All design funding assistance applications for projects having a projected total building cost of $10 million or more, including the cost for interceptor and collector sewers, will contain a VE commitment. The VE proposal must contain sufficient information for the Commissioner to determine the adequacy of the VE effort and the justification of the proposed VE fee. Essential information shall include the scope of VE analysis, VE team and VE coordinator (names and background), level of VE effort, VE cost estimate, and VE schedule in relation to project schedule (including completion of VE analysis and submittal of VE summary reports). The VE coordinator and a majority of the VE team members shall be employed by a firm (or firms) other than the design engineering consultant.

(2) Value engineering analysis. When the VE analysis is completed, a preliminary report summarizing the VE findings and a final report describing implementation of the VE recommendations must be submitted to the Commissioner.

(3) Valve Engineering Implementation. For those projects on which a VE analysis has been performed, VE recommendations shall be implemented to the maximum extent easible as determined by the municipality, subject to the approval of the Commissioner. Rejection of any recommendations shall be on the basis of cost-effectiveness, reliability, and other factors that may be critical to the treatment processes and the environmental impact of the project and the extent of project delays.

Sec. 22a-482-3 (e) User Charge System.

The user charge system must be designed to produce adequate revenues required for the operation, maintenance, and replacement of the pollution abatement facilities. It shall provide that each user which discharges wastewaters to the system that cause an increase in the cost of operating and maintaining pollution abatement facilities shall pay for such increased cost. The user charge system shall be based on either actual use or ad valorem taxes as follows:

(1) User charge system based on actual use. A municipality's user charge system based on…