Section R309-800-4 - General(1) Capacity development criteria constitute a standard applied in the following situations: (a) when reviewing new or proposed water system applications, including newly discovered water systems previously unknown to the Division that are providing drinking water to the public;(b) when reviewing applications for financial assistance; or(c) when assessing capacity of all water systems that are rated unapproved or are in significant noncompliance with SDWA requirements or State drinking water rules as determined by the state's Improvement Priority System or the Environmental Protection Agency's (EPA) Enforcement Targeting Tool. These criteria may be used as a guideline for other water systems. Water systems may refer to the State's Existing System Capacity Development Strategy, available on the Division's website, for additional information on capacity development and assessments.
(2) Capacity Development Criteria: (a) Technical Capacity. (i) Finished water shall meet all drinking water standards as required by Utah State Rules.(ii) Personnel shall operate the system in accordance with the operations and maintenance manual.(iii) Water systems shall provide proof of sufficient water rights or valid water purchase contracts.(iv) Water systems shall meet source, storage, and distribution requirements as per Utah State Rules.(v) Existing systems rated unapproved or with a history of significant noncompliance, as determined by the state or the EPA, shall agree to undertake appropriate action to resolve noncompliance or become an approved system.(b) Managerial Capacity.(i) The system owner and any management or ownership changes shall be clearly identified to the Executive Secretary of the Drinking Water Board.(ii) The system shall meet all certification requirements defined in Rules R309-300 and R309-305.(iii) The system shall implement a program to effectively manage all system records, such as distribution system histories, maps, asset inventory, and compliance information.(iv) The system shall develop and maintain an operating plan that includes system operator names and certification levels, facility operation and maintenance manuals, routine maintenance procedures, water quality monitoring plan and violations response procedures, training plan, and emergency response plan.(c) Financial Capacity. (i) Revenues shall be greater than expenses.(ii) A Certified Public Accountant must prepare a financial statement or perform an audit if otherwise required of the water system, at least every three years.(iii) The water system shall devise and implement a managerial budget and accounting process in accordance with generally accepted principals.(iv) The operating ratio, calculated as the operating revenue divided by operating expenses excluding depreciation and required reserves, shall be greater than 1.0.(v) The coverage ratio, calculated as the total revenues minus operating expenses excluding depreciation and required reserves divided by annual debt service, shall be greater than 1.0.(vi) Customers shall be metered or the water system shall take action to install meters.(vii) The water system shall create and fund an emergency accountor a replacement reserve account.(d) Asset Management.(i) Existing systems are encouraged to develop and implement an asset management plan that addresses the technical, managerial, and financial aspects of the five core components of asset management defined in Subsection R309-800-5(3).(ii) Retail water suppliers seeking financial assistance through Utah's State Revolving Fund must commit to develop and implement an asset management program as referenced in Section R309-700-5.(iii) Retail water suppliers seeking financial assistance through the federal State Revolving Fund must commit to develop and implement an asset management program as referenced in Section R309-705-5. Capacity Development Worksheets are required for all systems seeking financial assistance from the Drinking Water State Revolving Fund Program.
Utah Admin. Code R309-800-4
Adopted by Utah State Bulletin Number 2023-11, effective 5/22/2023