Section 1715-03-.03 - DETERMINATION OF ELIGIBILITY(1) Applicants. (a) Only local governments as defined in this chapter shall be eligible for loans to assist in financing the cost of construction utility relocation projects.(b) The applicant shall certify to the satisfaction of the Board all of the following: 1. The applicant is a local government as defined in this chapter;2. The applicant shall certify that the additional debt, together with the applicant's existing debt, is within the debt limitation provisions of the general laws of the State;3. The applicant will comply with all applicable laws, rules, and regulations of the State; and4. As determined from the detailed engineering report and other available information, the estimated revenues to be derived from the project under the applicant's proposed schedule of fees and charges will provide for proper operation, maintenance, depreciation, administration, reasonable expansion of the utility facilities and repayment of present and proposed indebtedness. For this purpose, if the project described in the application is to be an integral part of existing utility facilities, the revenues to be derived from operation of the entire system shall be utilized in determining the adequacy of the applicant's proposed schedule of fees and charges.(2) Applications and Loan Program Agreements. (a) An application for a loan shall include but not be limited to the following:1. A letter from the local government;2. A letter from the Tennessee Department of Transportation describing the project and requiring the local government to relocate its utility facilities;3. An engineering report describing the project, including all estimated costs;4. Estimated time of construction;5. Cash flow projections;6. Evidence of inability to obtain other financing, including but not limited to letters from lending institutions; and7. Three (3) years of audited financial statements.(b) Complete applications will be processed on a first-come, first-served basis by the Board.(3) Project Costs. Eligible project costs shall include but not be limited to: actual cost of construction, materials, equipment, and appurtenances; actual cost of engineering, legal and fiscal services related to the project; actual costs of purchase or acquisition of real property or interests therein; and actual costs caused by change orders and the costs of meritorious contractor claims provided the costs are within the scope of the project.
Tenn. Comp. R. & Regs. 1715-03-.03
Original rule filed March 7, 1990; effective 4/21/1990. Transferred from chapter 1200-22-08 on November 3, 2022, pursuant to Public Chapter 86 of 2007.Authority: T.C.A. §§ 4-5-202 and 7-82-702.