Current through Register Vol. 6, March 22, 2024
(1) The program may not provide assistance to
a public water system that does not have financial, managerial and technical
capability to assume compliance with the requirements of the federal act,
except as provided herein. For purposes of these rules those terms shall have
the following meanings:
(a) "Financial
capability" shall mean the financial RESOURCES of the water system, including
but not limited to the revenue sufficiency, credit worthiness, and fiscal
controls.
(b) "Managerial
capability" shall mean the management structure of the water system, including
but not limited to ownership accountability, staffing and
organization.
(c) "Technical
capability" shall mean the physical infrastructure of the water system,
including but not limited to the source water adequacy, infrastructure
adequacy, and technical knowledge based on information provided by the borrower
and its own inquiry of system operators.
(2) Each applicant for financial assistance
under the program shall complete a capability assessment questionnaire provided
by the department of environmental quality, which will elicit from the borrower
relevant information that will enable the department and the department of
environmental quality to determine the borrower's capabilities. In determining
whether the borrower has the relevant capability, the department and department
of environmental quality shall consider, among other things:
(a) financial capability:
(i) whether the revenues cover the costs of
the system;
(ii) whether the rates
and charges cover the costs by providing water service;
(iii) whether adequate books and records are
maintained; and
(iv) whether
appropriate budgeting, accounting and financial planning methods are
used.
(b) managerial
capability:
(i) whether the system owner(s),
operator(s) and manager(s) are clearly identified;
(ii) whether system owner(s) can be held
accountable for the system;
(iii)
whether the system is properly staffed and organized;
(iv) whether personnel understand the
management aspects of regulatory requirements and system operations;
(v) whether personnel have adequate expertise
to manage water system operations;
(vi) whether personnel have the necessary
licenses and certifications;
(vii)
whether the system interacts well with customers, regulators, and other
entities; and
(viii) whether the
system is aware of available external RESOURCES, such as technical and
financial assistance.
(c) technical capability:
(i) whether the system has a certified
operator;
(ii) whether the system
is operated with technical knowledge of applicable standards;
(iii) whether personnel are able to implement
technical knowledge effectively;
(iv) whether the operators understand the
technical and operational characteristics of the system; and
(v) whether the system has an effective
operation and maintenance program.