Section R653-2-4 - Project Funding Process(1) After the application for assistance has been completed by the applicant, forwarded to the Division, and signed by the Board member, a three-step process will be followed to determine those projects which will be funded by the Board.(2) The three steps of the funding process are:(a) APPROVAL for Staff Investigation:(i) The Board member considers the proposed project to fall within the Board's general statutory authority.(ii) Division staff will prepare a feasibility report covering the general scope of the proposed project but focusing on technical, financial, legal, and environmental aspects, water needs and rights, and water users' support.(b) AUTHORIZATION: (i) The feasibility report will be presented to the Board, which will consider the project for authorization on the basis of its merits and overall feasibility and the contribution the project will make to the general economy of the area and the state.(ii) As part of its decision-making process, the Board considers it important to discuss the merits of the project with the applicant. Therefore, representatives of the project applicant must attend the Board meeting when the project is considered for authorization.(iii) If the project is authorized by the Board, a letter outlining the engineering and legal requirements for the project and other conditions of the financial assistance will be sent to the applicant. For example, some of the more common conditions of these projects are:(A) Obtain all easements, rights-of-way, and permits required to construct, operate, and maintain the project.(B) Pass a company resolution to assign properties, easements, and water rights required for the project to the Board.(C) Enter into a contract with the Board for construction of the project and subsequent purchase from the Board.(D) Obtain approval of final plans and specifications from the Division.(E) Prepare a Water Conservation Plan.(F) Adopt an ordinance prohibiting irrigation of landscapes between the hours of 10:00 a.m. and 6:00 p.m.(G) Adopt a progressive water rate schedule (municipal projects).(H) Submit a letter noting completion and acceptance of a Water Conveyance Facilities Management Plan as described by Utah Code 73-10-33; and(I) Be in compliance with Utah Code 17-27a-211, which requires a canal company or canal operator to provide stated information to the county.(iv) The Board's authorization is valid for two years. (A) If the project does not proceed to committal of funds within this time, the applicant may request to the Board to extend the authorization one additional year.(B) The Board may grant an extension if the applicant has shown due diligence in completing its requirements.(C) If the Board authorizes a phased project that will extend beyond two years, the Board's authorization will be valid for up to six years. A phased project will only be considered if the applicant needs to spread out the capital investments required over several years, or the nature and cost of each phase is unlikely to change significantly over the six-year period.(c) COMMITTAL OF FUNDS: (i) After the applicant has complied with the Board requirements and conditions, the project will be presented for final review. If the Board finds the project to be in order and ready for construction, and IF FUNDS ARE AVAILABLE, the Board will commit funds and direct staff to enter into the necessary agreements with the applicant to secure project financing.(ii) The project applicant will not normally be required to attend the Board meeting at which funds are to be committed for the project. If the project scope or cost estimate has changed substantially, the applicant will be asked to attend the meeting to discuss the changes with the Board.Utah Admin. Code R653-2-4
Adopted by Utah State Bulletin Number 2015-24, effective 11/23/2015Amended by Utah State Bulletin Number 2020-08, effective 3/26/2020