N.J. Admin. Code § 7:10-13.4

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:10-13.4 - Demonstration of managerial and financial capacity for community water systems

(a) No person shall commence operation of a new public community water system prior to obtaining a permit to operate issued by the Department pursuant to N.J.A.C. 7:10-11.5(j).

(b) A written application for a permit to operate shall be submitted in accordance with this section and shall include a description of the as-built water system, and financial and managerial plans pursuant to (c) and (d) below.

(c) The managerial plan shall contain the following:

1. Information concerning the organizational structure of the system including:

i. A description of the organizational structure with a chart showing all aspects of water system management and operation;

ii. A description of the primary responsibilities and identification of all key personnel, including board of directors or councils, involved in the management or operation of the system or personnel;

iii. Identification, including the names and phone numbers, of those responsible for policy decisions ensuring compliance with State regulatory requirements, and the day-to-day operation of the system;

iv. If the person in charge of operation has other responsibilities unrelated to the water system, an explanation as to how the operator will reliably execute his or her responsibilities;

v. Copies of any contracts for management or operation of the water system by persons or agencies other than the system owner; and

vi. A description of how legal, engineering, and other professional services are provided;

2. A description of the qualifications of the owners and managers of the water system, including any training and experience relating to owning or managing a water system. Also, system owners shall include a list of public water systems previously or currently owned as well as any systems previously or currently operated under contract for another owner;

3. A description of a procedure for keeping management personnel informed concerning regulatory requirements for managing and operating a public water system;

4. An emergency management plan that includes:

i. Identification of known and potential natural and human-caused risks to the water system;

ii. Identification of personnel responsible for emergency management;

iii. A description of the notification procedures and means for implementation; and

iv. A description of the emergency response plan for each identified risk;

5. A description of system policies that define the conditions under which water service is provided. The system policies shall include a description of:

i. Water system responsibilities;

ii. Customer responsibilities;

iii. Design and construction standards for system modifications and additions;

iv. Cross-connection control;

v. Developer agreement and "late-comer" (future developers) policies;

vi. Customer information or public education;

vii. The process for investigating and responding to customer complaints;

viii. Budget development and rate structure that includes meter reading and billing schedule; and

ix. Response and notification if water quality violations occur.

(d) A financial plan shall include the following:

1. A five-year budget that includes revenues, operating expenses, reserves, and capital improvements including:

i. A revenue/expenditure analysis that compares all anticipated water system revenues with planned expenditures for the next five years;

ii. Identification of reserve accounts for emergency funding and equipment replacement; and

iii. A capital improvement plan for the next five years including identification of the project, estimated costs, and amount allocated for repayment of debt financing to meet new drinking water standards and accommodate growth;

2. A description of the budget and expenditure control procedures and reports that assure adequate budget control including:

i. Quarterly reports comparing actual expenditures to budgeted expenses; and

ii. Purchasing procedures or policy to prevent misuse of funds; and

3. For new community water systems built in phases, a statement of credit worthiness which shall include the following:

i. A certification that the system is not in arrears on existing debt; and

ii. A current credit report.

N.J. Admin. Code § 7:10-13.4