Okla. Admin. Code § 785:50-6-3
Current through Vol. 42, No. 7, December 16, 2024
Section 785:50-6-3 - Emergency grant priority point system(a)Basis of priority system and formula.(1)General description. The priority system consists of a mathematical equation rating the applicants and the proposed project in accordance with the requirements of the statutes by means of a formula awarding points for each criteria used in the evaluation. The maximum point total under the system is one hundred twenty (120). The Board may consider each month, and in order from the highest rating, those applications awarded point ratings of 60 or more priority points. If the Board determines that the applicant with the highest point rating cannot promptly proceed with the project due to delays, including but not limited to those caused by legal problems, engineering problems, feasibility problems or availability of other funding sources, the Board may pass over consideration of such application then proceed to consider in order the next highest rated application. Applications which are bypassed shall retain their ratings and thus remain eligible for further consideration. Applications preliminarily determined by Board staff to have point ratings of 59 or fewer shall be deemed denied; provided, such applications may be reevaluated if the applicant submits additional information showing changed circumstances within 120 days after the date of staff's determination, and such information improves the applicant's preliminary point rating. (2)Statutory criteria. The basis of the priority formula has been developed from the enacting legislation. The two primary statutory criteria are: (A) The emergency situation of the applicant. (B) Whether or not the applicant can reasonably finance the project without assistance from the state. (3)Total priority points. Total priority points will be calculated and awarded for individual projects; therefore, eligible entities will be required to complete separate applications for each project for which grant funds are requested. Priority lists compiled and published by other Oklahoma State agencies and/or seniority dates of applications submitted shall be utilized to decide ties in point totals among applicants. (b)Priority formula for eligible entities other than school districts.(1)Formula. The following formula has been devised to rank grant applications: P E + WR + I + L + MHI + FP + AR + BP - AN, where: (B) E = Emergency ranking (C) W R = Water and sewer rate (D) I = Indebtedness per customer (E) L = Amount of local contribution toward project (F) MHI = Median Household Income (G) FP = Applicant's ability to finance project (H) AR = Amount of grant requested (I) BP = Benefit of project to other systems (J) AN = Application number (2)Explanation. Each of these criteria are explained below: (A)Emergency rankings (E). Emergencies are ranked by severity with Category 1 being the most severe and Category 2 being the least severe. Points awarded range from a maximum of 50 points for Category 1 and a minimum of 40 points for Category 2 . If an applicant requests funds to correct more than one emergency category need, only the amount of assistance needed to correct the most severe need will be considered in the calculation for the application ranking. The applicant will be informed that separate and additional applications must be filed for other needs and projects. An applicant who receives funding for a project under any of the listed emergencies may not reapply under the same emergency. The two (2) emergency ranking categories are as follows: (i)Category 1. Total loss of a water supply or sewage system or loss of a major component of a system due to a natural or unforeseen disaster which could not have been prevented by the exercise of reasonable care by the applicant. Examples of such disasters may include but are not necessarily limited to: tornado; flood; fire; severe weather; landslide; sudden loss of a water supply system; sudden collapse of a major structural portion of a system; signs of imminent failure of a public water supply lake dam, spillway or outlet structure such as settlement or slumping of the crest, excessive seepage, slides, cracks or sloughs along the upstream and downstream slopes of the dam. Also included under this category is the construction of a new water system to serve areas where residents are supplied by domestic sources or domestic systems whose quantity does not supply the basic needs of the residents. In such cases where new or extended systems are proposed, the Board shall consider and determine whether an adequate population density is available to utilize the proposed system. Notwithstanding any other provisions of this Chapter, if the density is preliminarily determined by Board staff to be inadequate for the applicant to feasibly provide operation and maintenance of the new or extended system, then the application will not be recommended for approval until the proper density, which will make the extension feasible, is achieved. Category 1 emergencies receive 50 points. (ii)Category 2. Water or sewer emergencies which could not have been prevented by the exercise of reasonable care by the applicant and which cause immediate danger or an imminent health hazard to the community or other nearby citizens. Such emergencies may include but are not necessarily limited to: users or systems whose water supply is deemed to be dangerous or unhealthy; systems whose supply source becomes contaminated by man-made pollution caused by a person other than the applicant; overflow of raw sewage into homes or streets due to structural failure in the collection mains and/or structural, mechanical, or electrical failure at a lift station due to disasters which could not have been prevented by the exercise of reasonable care by the applicant, including but not limited to tornado, flooding, fire, or landslides; sewage treatment systems which discharge raw or inadequately treated sewage effluent whose quality and/or quantity causes an immediate and imminent health or safety danger to a public water supply due to a structural, mechanical or electrical failure of a process unit(s) caused by disasters which could not have been prevented by the exercise of reasonable care by the applicant, including but not limited to tornado, flooding, fire, or landslides. Also included under this category is the construction of a new water system to serve areas where residents are supplied by domestic sources or domestic systems whose quality is dangerous or unhealthy as a consequence of circumstances that could not have been prevented by the exercise of reasonable care by the applicant. In such cases where new or extended systems are proposed, the Board shall consider and determine whether an adequate population density is available to utilize the proposed system. Notwithstanding any other provision of this Chapter, if the density is preliminarily determined by Board staff to be inadequate for the applicant to feasibly provide operation and maintenance of the new or extended system, then the application will not be recommended for approval until the proper density, which will make the extension feasible, is achieved. Category 2 emergencies receive 40 points. (B)Water and sewer rate structure (WR).(i)For systems providing water service only:(I) If the cost per 5000 gallons is $50.00 or greater, the applicant shall be given 10 points. (II) If the cost per 5000 gallons is $45.00 to $49.99, the applicant shall be given 9 points. (III) If the cost per 5000 gallons is $40.00 to $44.99, the applicant shall be given 8 points. (IV) If the cost per 5000 gallons is $35.00 to $39.99, the applicant shall be given 7 points. (V) If the cost per 5000 gallons is $30.00 to $34.99, the applicant shall be given 6 points. (VI) If the cost per 5000 gallons is $25.00 to $29.99, the applicant shall be given 5 points. (VII) If the cost per 5000 gallons is $23.00 to $24.99, the applicant shall be given 4 points. (VIII) If the cost per 5000 gallons is $21.00 to $22.99, the applicant shall be given 3 points. (IX) If the cost per 5000 gallons is $19.00 to $20.99, the applicant shall be given 2 points. (X) If the cost per 5000 gallons is $18.00 to $18.99, the applicant shall be given 1 point. (XI) If the cost per 5000 gallons is less than $18.00, the applicant shall be given 0 points. (ii)For systems providing water and sewer services:(I) If the cost per 5000 gallons is $56.00 or greater, the applicant shall be given 10 points. (II) If the cost per 5000 gallons is $53.00 to $55.99, the applicant shall be given 9 points. (III) If the cost per 5000 gallons is $49.00 to $52.99, the applicant shall be given 8 points (IV) If the cost per 5000 gallons $45.00 to $48.99, the applicant shall be given 7 points. (V) If the cost per 5000 gallons is $41.00 to $44.99, the applicant shall be given 6 points. (VI) If the cost per 5000 is $37.00 to $40.99, the applicant shall be given 5 points. (VII) If the cost per 5000 gallons is $34.00 to $36.99, the applicant shall be given 4 points. (VIII) If the cost per 5000 gallons is $32.00 to $33.99, the applicant shall be given 3 points. (IX) If the cost per 5000 gallons is $31.00 to $31.99, the applicant shall be given 2 points. (X) If the cost per 5000 gallons is $30.00 to $30.99, the applicant shall be given 1 point. (XI) If the cost per 5000 gallons is less than $30.00, the applicant shall be given 0 points. (iii)For systems providing sewer service only:(I) If the cost per connection per month is $34.00 or greater, the applicant shall be given 10 points. (II) If the cost of connection per month is $32.00 to $33.99, the applicant shall be given 9 points. (III) If the cost of connection per month is $30.00 to $31.99, the applicant shall be given 8 points. (IV) If the cost of connection per month is $28.00 to $29.99, the applicant shall be given 7 points. (V) If the cost of connection per month is $26.00 to $27.99, the applicant shall be given 6 points. (VI) If the cost of connection per month is $24.00 to $25.99, the applicant shall be given 5 points. (VII) If the cost of connection per month is $22.00 to $23.99, the applicant shall be given 4 points. (VIII) If the cost of connection per month is $20.00 to $21.99, the applicant shall be given 3 points. (IX) If the cost of connection per month is $18.00 to $19.99, the applicant shall be given 2 points. (X) If the cost of connection per month is $16.00 to $17.99, the applicant shall be given 1 point. (XI) If the cost of connection per month is less than $16.00, the applicant shall be given 0 points. (iv) The Board will deduct 3 points from the total of the Water and Sewer Rate Structure ranking for any system which charges a flat water or sewer rate (unmetered) without regard to the amount of water or sewer used, and 2 points for a decreasing block rate which lowers the cost per 1000 gallons for customers using larger amounts of water. No points will be added or subtracted for systems using a fixed rate per 1,000 gallons above the minimum. Two points will be added for systems using an increasing block rate. Entities who dedicate sales tax for water and/or sewer improvements will be awarded 1 additional point. Under the category the maximum number of points is 13 and the minimum is -3 points. (C)Indebtedness per customer (I). The indebtedness per customer ranking is calculated by taking the applicant's monthly requirements for debt service on debt incurred for water and/or sewer system purposes and dividing it by the number of customers served. (i) If the indebtedness per customer is $20.00 or greater, the applicant shall be given 10 points. (ii) If the indebtedness per customer is $17.50 to $19.99, the applicant shall be given 9 points (iii) If the indebtedness per customer is $16.00 to $17.49, the applicant shall be given 8 points. (iv) If the indebtedness per customer is $14.50 to $15.99, the applicant shall be given 7 points. (v) If the indebtedness per customer is $13.00 to $14.49, the applicant shall be given 6 points. (vi) If the indebtedness per customer is $11.50 to $12.99, the applicant shall be given 5 points. (vii) If the indebtedness per customer is $10.00 to $11.49, the applicant shall be given 4 points. (viii) If the indebtedness per customer is $8.50 to $9.99, the applicant shall be given 3 points. (ix) If the indebtedness per customer is $7.00 to $8.49, the applicant shall be given 2 points. (x) If the indebtedness per customer is $5.50 to $6.99, the applicant shall be given 1 point. (xi) If the indebtedness per customer is less than $5.50, the applicant shall be given 0 points. (D)Local participation (L).(i) The Board will not approve nor fund any grant application unless the applicant contributes at least fifteen percent (15%) of the total cost of the proposed project. (ii) The local participation ranking is based on the percent of the total project cost which is locally funded through cash contributions, or incurrence of additional debt through a loan. Grant funds received through other agencies will not be counted as local funding. Points awarded for participation are as follows: (I) If the percentage of the project cost locally funded is 90% or greater, the applicant shall be given 10 points. (II) If the percentage of the project cost locally funded is at least 80% but less than 90%, the applicant shall be given 9 points. (III) If the percentage of the project cost locally funded is at least 70% but less than 80%, the applicant shall be given 8 points. (IV) If the percentage of the project cost locally funded is at least 60% but less than 70%, the applicant shall be given 7 points. (V) If the percentage of the project cost locally funded is at least 50% but less than 60%, the applicant shall be given 6 points. (VI) If the percentage of the project cost locally funded is at least 40% but less than 50%, the applicant shall be given 5 points. (VII) If the percentage of the project cost locally funded is at least 30% but less than 40%, the applicant shall be given 4 points. (VIII) If the percentage of the project cost locally funded is at least 25% but less than 30%, the applicant shall be given 3 points. (IX) If the percentage of the project cost locally funded is at least 20% but less than 25%, the applicant shall be given 2 points. (X) If the percentage of the project cost locally funded is at least 15% but less than 20%, the applicant shall be given 1 point. (XI) If the percentage of the project cost locally funded is less than 15%, the application shall not be approved nor funded. (E)Median Household Income (MHI). The median household income is calculated according to the most current federal decennial census or American Community Survey data available. (i) The county median figure for median household income will be used in cases where data for the applicant's service area is not available. (ii) Points are awarded as follows: (I) If the median household income is less than $17,000, the applicant shall be given 10 points. (II) If the median household income is $17,000 to $20,999, the applicant shall be given 9 points. (III) If the median household income is $21,000 to $23,999, the applicant shall be given 8 points. (IV) If the median household income is $24,000 to $28,999, the applicant shall be given 7 points. (V) If the median household income is $29,000 to $31,999, the applicant shall be given 6 points. (VI) If the median household income is $32,000 to $36,999, the applicant shall be given 5 points. (VII) If the median household income is $37,000 to $39,999, the applicant shall be given 4 points. (VIII) If the median household income is $40,000 to $44,999, the applicant shall be given 3 points. (IX) If the median household income is $45,000 to $47,999, the applicant shall be given 2 points. (X) If the median household income is $48,000 to $51,999, the applicant shall be given 1 point. (XI) If the median household income is $52,000 or greater, the applicant shall be given 0 points. (F)Ability to finance project (FP).(i) The maximum points possible under this criterion for the ability of the applicant to finance the project without assistance from the state is 12. (ii) The FP ranking gives a standardized account of the amount the existing water/sewer rates would have to be raised in order for the applicant to finance the project through a loan. A standard interest rate and term of 5% for 25 years is assumed. The cost per customer per month is calculated using the following formula: FP equals the product of AR multiplied by (0.0710), divided by the product of (12) multiplied by (C), where: (I) FP = Estimate of the amount monthly water/sewer rates would have to be raised to finance the amount of grant request for the project. (II) AR = Amount of grant request. For this calculation, the amount of available reserve not dedicated to the project will be deducted from the amount requested. (III) (0.0710) = Annual rate factor for a 25 year loan at 5% (IV) (12) = Number of months per year. (V) (C) = Number of customers (iii) In cases where the applicant's current revenues exceed expenses by a large margin, the Board will appropriately adjust the (AR) figure to accurately represent the applicant's ability to finance the project. (iv) Points in the FP ranking are awarded as follows: (I) If the ability to finance the project is $10.00 or greater, the applicant shall be given 12 points. (II) If the ability to finance the project is $8.00 to $9.99, the applicant shall be given 11 points. (III) If the ability to finance the project is $6.00 to $7.99, the applicant shall be given 10 points. (IV) If the ability to finance the project is $5.00 to $5.99, the applicant shall be given 9 points. (V) If the ability to finance the project is $4.00 to $4.99, the applicant shall be given 8 points. (VI) If the ability to finance the project is $3.00 to $3.99, the applicant shall be given 7 points. (VII) If the ability to finance the project is $2.00 to $2.99, the applicant shall be given 6 points. (VIII) If the ability to finance the project is $1.75 to $1.99, the applicant shall be given 5 points. (IX) If the ability to finance the project is $1.50 to $1.74, the applicant shall be given 4 points. (X) If the ability to finance the project is $1.25 to $1.49, the applicant shall be given 3 points. (XI) If the ability to finance the project is $1.00 to $1.24, the applicant shall be given 2 points. (XII) If the ability to finance the project is $0.75 to $0.99, the applicant shall be given 1 point. (XIII) If the ability to finance the project is less than $0.75, the applicant shall be given 0 points. (G)Amount of grant requested (AR).(i) Points under this category for amount of grant requested are distributed as follows: (I) $95,001 to $100,000: -5 (II) $90,001 to $95,000: -4 (III) $85,001 to $90,000: -3 (IV) $80,001 to $85,000: -2 (V) $75,001 to $$80,000: -1 (VI) $70,001 to $75,000: 0 (VII) $65,001 to $70,000: +1 (VIII) $60,001 to $65,000: +2 (IX) $55,001 to $60,000: +3 (X) $50,000 to $55,000: +4 (XI) $45,001 to $50,000: +5 (XII) $40,001 to $45,000: +6 (XIII) $35,001 to $40,000: +7 (XIV) $30,001 to $35,000: +8 (XV) $25,001 to $30,000: +9 (XVI) $25,000 or less: +10 (ii) If a project exceeds $75,000 and the amount of funds needed over and above the OW RB grant request are being secured through a loan from OWRB, then there will be no deduction of points under this category. (H)Project benefit to other systems (BP). If the applicant's project will benefit other adjacent systems as well as applicant's, or result in or lead to consolidation of systems, an additional five (5) priority points will be included in the total of priority points assigned to the application. (I)Number of grants. Since it is anticipated that entities who have received emergency grants might submit additional grant applications for approval, points will be deducted from such applications according to the following schedule; provided, points shall not be deducted from such any emergency grant which was funded 10 or more years prior to the date of Board action on the pending application and which has been subjected to a Board audit: (i) 1 prior grant = 5 reduction points (ii) 2 prior grants = 8 reduction points (iii) 3 prior grants = 10 reduction points (iv) 4 prior grants = 12 reduction points (v) 5 or more prior grants = 14 reduction points (c)Priority formula for school districts.(1) School districts, created under Article V of the 1971 School Code, 70 O.S. 1981, §5-101 et seq., are political subdivisions of the State, and therefore are eligible for financial assistance under the Board's program. (2) In evaluating and prioritizing grant applications from school districts similar criteria to those applied to municipalities, towns and rural water districts will be utilized. (3) In developing a priority formula for school district applicants, again, the two primary statutory criteria are: (A) The emergency situation of the school district. (B) Whether the school district can reasonably finance the emergency project without the Board's assistance. (4) The emergency aspect of each project is ranked with a maximum of 50 points being given to the most serious situations and a minimum of 30 points to the least serious. The emergency categories and points given for each are the same as those listed in (b)(2) of this Section. (5) The school district's financial situation is given a maximum of 66 points and is derived by analyzing the following: (D) Median household income within the school district's geographical area (E) Applicant's ability to finance project (F) Amount of grant requested (6) Priority lists compiled and published by other Oklahoma state agencies shall be utilized to assess the seriousness of the emergency. (7) Using the previously mentioned analysis, the following formula has been devised to rank school districts' grant applications: P = E + LT + BI + L + MHI + FP + AR - AN, where: (A) P = Priority ranking total points (B) E = Emergency ranking (C) LT = Local tax levies (D) BI - Bonded indebtedness (E) L = School's contribution toward the project (F) MHI = Median household income of population within a school district (G) FP = Applicant's ability to finance project (H) AR = Amount of grant requested (I) AN = Application number (8) The criteria E, MHI, FP, AR and AN are the same as that set forth in (b) of this section. LT, BI and L are explained as follows: (A)Local tax levies (LT). Points awarded under this category for local tax levies are based on the total amount of mills levied, as follows: (i) 95 to 100,00 mills = 13 points (ii) 90 to 94.99 mills = 11 points (iii) 85 to 89.99 mills = 10 points (iv) 80 to 84.99 mills = 8 points (v) 70 to 79.99 mills = 6 points (vi) 60 to 69.99 mills = 4 points (vii) 55 to 59.99 mills = 2 points (viii) 50 to 54.99 mills = 1 point (ix) 45 to 49.99 mills = 0 points (x) 40 to 44.99 mills = -1 points (xi) Less than 40 mills = -2 points (B)Bonded indebtedness (BI).(i) Priority points for Bonded Indebtedness are as follows: Percentage of Indebtedness Points (I) 95% to 100% of debt limitation = 10 points (II) 90% to 94.99% of debt limitation = 8 points (III) 80% to 89.99% of debt limitation = 7 points (IV) 75% to 79.99% of debt limitation = 6 points (V) 70% to 74.99% of debt limitation = 5 points (VI) 65% to 69.99 of debt limitation = 4 points (VII) 60% to 64.99% of debt limitation = 3 points (VIII) 55% to 59.99% of debt limitation = 2 points (IX) 50% to 54.99% of debt limitation = 1 point (X) 45% to 49.99% of debt limitation = 0 points (XI) 40% to 44.99% of debt limitation = -1 point (XII) 30% to 39.99% of debt limitation = -2 points (XIII) Less than 30% of debt limitation = -3 points (ii) A deduction of one (1) point from the indebtedness ranking total will be made for applicants with 75% of existing debts financed at rates of 5% or less, and one (1) point will be added if 75% of existing debts are financed at rates greater than 10%. (C)Local participation (L).(i) In order to achieve the maximum benefit from available grant funds, the Board will not approve nor fund any grant application unless the applicant contributes at least fifteen percent (15%) of the total cost of the proposed project. (ii) The local participation ranking is based on the percent of the total project cost which is locally funded through cash contributions or incurrence of additional debt through a loan. Points awarded are as follows: (I) If the percentage of the project cost locally funded is 90% or greater, the applicant shall be given 10 points. (II) If the percentage of the project cost locally funded is at least 80% but less than 90%, the applicant shall be given 9 points. (III) If the percentage of the project cost locally funded at least 70% but less than 80%, the applicant shall be given 8 points. (IV) If the percentage of the project cost locally funded at least 60% but less than 70%, the applicant shall be given 7 points. (V) If the percentage of the project cost locally funded at least 50% but less than 60%, the applicant shall be given 6 points. (VI) If the percentage of the project cost locally funded is at least 50% but less than 60%, the applicant shall be given 5 points. (VII) If the percentage of the project cost locally funded is at least 40% but less than 50%, the applicant shall be given 4 points. (VIII) If the percentage of the project cost locally funded is at least 25% but less than 30%, the applicant shall be given 3 points. (IX) If the percentage of the project cost locally funded is at least 20% but less than 25%, the applicant shall be given 2 points. (X) If the percentage of the project cost locally funded is at least 15% but less than 20%, the applicant shall be given 1 point. (XI) If the percentage of the project cost locally funded is less than 15%, the application shall not be approved nor funded. (iii) Under the Ability to Finance Project (FP) category the Number of Customers (C) as previously discussed will be replaced by the Number of Families within a school district. Points awarded under the FP category are the same as discussed and shown in (b) of this Section. Okla. Admin. Code § 785:50-6-3
Adopted by Oklahoma Register, Volume 35, Issue 24, September 4, 2018, eff. 9/14/2018Amended by Oklahoma Register, Volume 36, Issue 22, August 1, 2019, eff. 8/11/2019