HomeMy WebLinkAboutCOM 0166.003 1996-1998 40VhYY Oi yw''
J. CURTIS TYLER, III ~~,6i;,. Tel: (808) 961-8273
Councibnrruber Fax ($OS) 969-3291
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COUNTY COUNCII~ ~ ~ ~
County of Ha2oaii ~ '17
Hawaii County Buildin~~ ~
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25 Aupuni Street F-+
Hilo, Hawaii 96720 " ~
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April 28, 1997
TO: JAMES ARAKAKI , CHfiIY.
HAWAII COUNTY COUNCIL
\
FROM: J. CURTIS TYLER, III, COUNCILMEMBE a~, ti
HAWAII COUNTY COUNCIL ~
RE: w r r F - r n C n i i n r l in Bill 49
Please refer the attached correspondence dated April 18, 1997
from Peter Boucher, Division Chief of Wastewater Division,
regarding Sewer User Fees - Grant Conditions relating to Bill
49, to be heard in the Council meeting dated May 7, 1997.
Thank you.
~°13 hl~l.. C
. b....
s.zet. i',,te_.APR 2 S 1997.._..
77-6399 Nalani St., Suite 1-A Kailua-Kona, Hawaii 96740 Kona Telephone: (808) 326-568~k Fax: (ROS) 326-5697
County of Hawaii -Department of Public Works
WASTEWATER DIVISION
Te1:961-8338 Fax: 961-8644 ~
Q
zt_ rv fit
Memorandum:
_T~
Date: April 18, 1997 = - c' J
cn
To: Councilmember Bobby-Jean Leithead-Todd - cn
Councilmember Curtis Tyler
From: Peter Boucher, Division Chief
Re: Sewer User Fees
Grant Conditions
As requested at the 4/15/97 Finance Committee meeting, I am sending you a set of the various
documents identifying the grant conditions associated with user fees. These conditions require
that user fees be established to finance the operation, maintenance and replacement of the sewer
facilities. Should you have any questions, please call me at 961-8338.
Attch.
,}Spy2 Federal Regis),er J Vol. 48. No. 191 /Friday, September 30, 1983. / Rules and Regulations
(For restrictions on EPA employees, see (2) Amounts budgeted for indirect (b) EPA wit! charge you interest and
40 CFR Part 3.) costs to absorb increases in direct costs: penalty if you tail to pay within 30 days
(a) An official or employee of a or from the date of the Agency's final
recipient may not participate in any (3) Amounts budgeted for training decision. (see Subpart L). The Interest
activity relating to EPA assistance if any allowances if transferred to other cost rate will be the rate established by the
of the following persons or categories. Setaetary of Treasury in accordance
organizations, to the official's or with the Treasury Fiscal Requirements
employee's knowledge, has a financial ; 1tlhat etwtges an i make to my Manual 8-8020.20. The rates ere
aaabtarrea apreermnt without a formal
interest in the activity: ~d~^n published quarterly in the Federal
(1) The official or employee himself; Register. EPA will also charge you s
Minor changes in the project work
(2) The official or employee's spouse that ere conaiatent with the objective of Penalty charge of a percent of the debt
or minor child; end will charge you its cost to handle
(3) A partner of the official or the project end within the scope of the and proceea the debt. '
employee; aaeistance agreement do not require the (c) The penalty and handling charges t
(4) An organization (other than s execution of a formal amendment before ~ this section do not apply to State and
public agency) in which the official or the recipient's implementation of the local governments, but the interest
employee serves es an officer, director, change. However. ouch changes do not charges do apply.
trustee, partner, or employee; or obligate EPA to provide Federal funds
(5) Any person or organization with for any coats incurred by you in excess [-What Measures May EPA
whom the official or.employee is of the assistance amount, unless Take for Non-Compilartee?
negotiating or has any arrangement approved in advance under }30,700.
concerning prospective employment. } 30.900 Whit sro Ufa aarrctlons for twrr
(b) Officials and employees of } x'710 G^ l tarmlmb • part or as of ary 7
assists^« a~^~^n If ou do not com I with all of the
recipients must avoid any action which Y P Y
might result in, or create the appearance la) you end EPA may terminate a pert terms and conditions of your assistance
oE. or ell of your assistance agreement agreement, the award official may apply
(1) Using official position for private When both parties agree that the any o[ the [ollowing sanctions: '
continuation of the project will not (a) Issue estop-work order,
gain; roduce beneficial results. You and the
(2) Civing preferential treatment to P ~ (b) Wthhold payment:
sward official moat agree on the c Sus end or terminate our
any person; P Y
conditions of the termination, the
, '(3) Losing independence or essiatance agreement for cause;
effective date, end in iha case of partial
impartiality: (d) Annul your essiatance agreement;
(4) Making an official decision outside termination, the portion to be (e) Debar or suspend you as an
official channels; or terminated. EPA may unilaterally eligible recipient;
(5) Undermining public confidence in terminate Eor ceuee your asais[ence Take other appropriate
the integrity of F3A programs. agreement under 430.903 of this part. administrative action: or
(b) EPA will pay you the Federal (g) Institute judicial proceedings.
}30.615 Mey I employ • former EPA share of allowable costa incurred up to
employee and atilt rxelve asslstancs7 the date of termination and allowable } 3p,ppt Yrlrat an the eoraeQuerreea of •
You may hire a former EPA employee costs related to commitments you made stop-work order'?
and still receive assistance provided the prior to termination that you carrot (a) A stop-work order requires you to
former employee complies with the cancel. {tnmedietely stop the work or activities
restrictions on poet-employment described in the order and to take all
activities established by SB U.S.C. 207. Subpart H---Flow Do I Close Out My reasonable steps to minimize costs
These restrictiana are explained in P?ols~et't incurred on the work. The award official
regulations issued by the Office of } a0 Opp What rxorda and repor4 moat 1 will issue the order in writing. The order
Personnel Management under 5 CFR keep otter I eompleta my pro)eetT will be in effect for forty-five days after
Part 737 end EPA regulations under 40 you and your contractor moat keep you receive it unless cancelled or
CFR Part 3. all books, records, documents, and other extended by mutual agreement between
Subpart C:--Can An Asalstanee evidence (including accounting you and EPA. If the problem cannot be
Agreement Be ChanyedT procedures end practices and resolved during the stop-work period
subagreement documents) that track the end EPA is likely to terminate or annul
} 30.700 whet elunpee to my aeslatana progress of your project in accordance the agreement the sward official will so
agreement nqulr+ • formal amendmeirC/ with the requirements under }30.501. inform you.
You must receive from the award (b) If the stop-work order is cancelled
offidal a formal amendment before } U^dK what ~0oni rvMl t orra and it caused any Increase In the cost of
implementing: money to EPA? and/or the time for completing the
(a) A transfer of an award to another (a) U the award official determines project you may request an adjustrnent
recipient: that you owe funds, you must reimburse In the project period budget period, or
(b) Changes in the objectives of the the Federal government that amount aaeistance amount You must submit •
project: F8A will take appropriate legal and request for adjustment to the project
(c) Changes in the assistance amount; edministratlve action to collect the officer within sixty days after the etop•
(d) Subetentiei changes within the amount you owe the Agency t[ work order ended
scope of the project; or reimburoement 1¦ not made Ia • timely
(e) A rebudgeting of the following: manner. EPA may offset the debt }~~0
~~i7M of
(1) Amounts budgeted for either against other funds payable to you
construction ornon-construction under en EPA or other Pedenl agency (s)'!be award official may withhold
activities i[ tranafersed from one activity esslslance agreement If not explldUy payment. when you fail to comply with
to the other, prohibited by another stators. lha leeks, reporting requirements, or
C~.~
AGREEMENT FOR
STATE REVOLVING FUND GRANT-IN-AID
WITH THE COUNTY OF HAWAII
FOR THE CONSTRUCTION OF WASTEWATER PROJECTS
Project No. C150062 09
Project Title: Hilo Wastewater Treatment and Conveyance Project,
Phase II, Schedule D, G, and H
THZS AGREEMENT, made and entered into as of the 4th day
of October, 1990, by and between the DIRECTOR OF THE DEPARTMENT
OF HEALTH, STATE OF HAWAII (hereinafter the "DIRECTOR"), and the
COUNTY OF HAWAII (hereinafter the "COUNTY"), a Hawaii
municipality with principal offices at 25 Aupuni Street, Hilo,
Hawaii 96720, WITNESSES THAT:
WHEREAS, pursuant to Act 365, 1988 Haw. Sess. Laws 705,
as partially codified in section 342-34 and later in section
342D-54, Hawaii Revised Statutes, the DIRECTOR and his delegates
are authorized to make grants to municipalities for the
construction of necessary treatment works and for other projects
intended for wastewater reclamation or waste management;
WHEREAS, the COUNTY has made an application for a grant
related to the construction of the Project, hereinafter
described, and said Project has been determined by the DIRECTOR
ADM. SERV. OFFICE
LOG NO. 91-178 1
Furthermore, no assignment of claims for money due or to become
due to the COUNTY under this Agreement shall be effective unless
the assignment of such claims is first approved by the DIRECTOR
and the Comptroller of the State of Hawaii.
18. DEFENSE AND INDEMNIFICATION. The COUNTY shall
defend, indemnify, and save harmless the State of Hawaii, the
DIRECTOR, and their officers, employees, and agents from and
against any and all actions, claims, suits, damages, and costs
arising out of or resulting from the acts or omissions of the
COUNTY or the COUNTY's officers, employees, agents, contractors,
or subcontractors occurring during or in connection with the
performance of the COUNTY'S services under this Agreement.. The
COUNTY shall defend and indemnify the State of Hawaii, the
DIRECTOR, and their officers, and agents against any such action
or claim unless-the action or claim involves an act or omission
solely of the State or the DIRECTOR, their officers, employees,
or agents.
19. COMPLIANCE WITH LAWS, REGULATIONS, ETC. The
COUNTY shall:
a. Comply with and require its contractors and
subcontractors to comply with all applicable federal
and state law, rules, guidelines, regulations, and
requirements to include, but not be limited to, the
list of federal "cross-cutting" authorities as
identified in Exhibit "C" and made a part hereof.
b. Conduct an environmental review of the
ADM. SERV. OFFICE
LOG NO. 91-178 16
Project that meets the requirements of the U.S.
Environmental Protection Agency's 40 CFR Part 6,
Subpart E and 40 CFR sec. 35.3140.
c. Affirm that the Project is consistent with
plans developed under 33 U.S.C. sections 1285(j), 1288,
1313(e), 1329, and 1330.
d. Adopt and maintain a user charge system and
sewer use ordinance for the useful life of the Project.
The user charge system and sewer use ordinance shall
comply with the requirements of^:40"`CFR sec. 35.2122 and
shall be reviewed and approved by the DIRECTOR
annually. The COUNTY is deemed the "applicant" and the
DIRECTOR is deemed the "Regional Administrator" for the
application here of this federal regulation.
e. Submit a final operation and maintenance
manual to the DIRECTOR for approval .prior to ninety
percent (90~) of Project completion.
f. Comply with the Davis-Bacon labor wage
provisions to treatment works construction. Wages paid
for the construction of treatment works must conform to
the prevailing wage rates established for the locality
by the U.S. Department of Labor under Section 513 of
the Davis-Bacon Act, 46 Stat. 1494, 40 U.S.C.A. secs.
276a - 276a-5 (West 1986).
20. LOBBYING. No portion of this loan shall be used
for lobbying or propaganda purposes as prohibited by 18 U.S.C.A.
ADM. SERV. OFFICE
LOG NO. 91-178 17
~2 a,«~
6244 Federal Register /Vol. 49, No. 34 /Friday, February 17, 1984 /Rules and Regulations
isions {or possible [uture additions performed before award of grant periods of high groundwater, the
of treatment processes or techniques to assistance for that project, except: applicant shall either:
meet secondary treatment requirements. (1) In emergencies or instances where (i) Perform a study of the sewer
delay could result in significant cost system to determine the quantity of
§ 35.2113 Environmental review. increases, the Regional Administrator excessive infiltration and to propose a
(a) The environmental review may approve preliminary Step 3 work sewer rehabilitation program to
required by Part 6 of this Chaplet must (such as procurement of major eliminate the excessive infiltration; or
be completed before submission of any equipment requiring long lead times, (ii) If the flow rate is not significantly
application. The potential applicant field testing of innovative and more than 120 gallons per capita per
should work with the State and EPA as alternative technologies, minor sewer day, request the Regional Administrator
early as possible in the facilities rehabilitation, acquisition of eligible to determine that he may proceed
planning process to determine it the land, or of an option for the purchase of without further study, in which case the
project qualifies for a categorical eligible land or advance building of allowable project cost will be limited to
exclusion from Part 6 requirements, or minor portions o[ treatment works), the cost of a project with a capacity of
whether a finding of no significant after completion of the environmental 120 gallons per capita per day under
impact or an environmental impact review as required by § 35.2113. Appendix A.G.2.a.
statement is required. (2) If the Regional Administrator (Approved by the Office of Management end
(b) [n conjunction wish the facilities approves preliminary Step 3 vaork, such Budget under control number zoa0-ooz7)
planning process as described in approval is not an actual or implied
§ 35.2030(c), a potential applicant may commitment of grant assistance and the § 35.2122 Approval Cf user charge system
request, in writing, that EPA make a applicant proceeds at its own risk. 'and proposed sewer use ordinance.
formal determination under Part 6 of this (b) Any procurement is subject to the If the project is for Step 3 grant
chapter. requirements of 40 CFR Part 33, and in assistance, unless it is solely for
§ 35.2118 Value engineering. the case of acquisition of eligible real acquisition of eligible land, the applicant
(aj If the project has not received Step Property, 40 CFR Part 4. must obtain the Regional
A roved b the Office of Mana smear and Administrator's approval of its user
2 grant assistance the applicant shall ( PP Y g char e s stem 35.2140 and ro osed
conduct value engineering if the total Budget under control number 204th-o0z7] (or existing) sewer use ordinance p
estimated cost of building the treatment §35.2120 Intlltration/Inflow. § 35.2130)..If the applicant has a sewer
works is more than $10 million. (a) Cenero/. The applicant shall use ordinance or user charge system in
rb) The value engineering demonstrate to the Regional affect, the applicant shall demonstrate
;ommendations shall be implemented
to the maximum extent feasible. Administrator's satisfaction that each to the Regional Administrator's
sewer system discharging into the satisfaction that they meet the
(Approved by the Office of Management and proposed treatment works project is not requirements of this Part and are being
Budget under control number 2oao-oo27) or will not be subject to excessive enforced.
§35.2116 Collection system. infiltration/inflow. For combined [Approved by the Office of Management and
Except as provided in § 35.2032[c), if sewers, inflow is not considered Budget under control number 2tYt4-0027j
the project involves collection system excessive in any event. § 35.2123 Reserve ca acct .
work, such work: (b) Inflow. If the rainfall induced peak P y
(a) Shall be for the replacement or inflow rate results or will result in EPA will limit grant assistance for
major rehabilitation of an existing chronic operational problems during reserve capacity as follows:
collection system which was not build storm events, the applicant shall (a) If EPA awarded a grant for a Step
with Federal funds awarded on or after Perform a study of the sewer system to 3 interceptor segment before December
October 18, 1972, and shall be necessary determine the quantity of excessive 29, 1981, EPA may award grants for
to the integrity and performance of the inflow and to propose a rehabilitation remaining interceptor segments included
complete waste treatment system; or Program to eliminate the excessive in the facilities plan with reserve
(b) Shall be for a new cost-effective inflow. All cases in which facilities are capacity as planned, up to 40 years.
collection system in a community in planned for the specific storage and/or (b) Except as provided in paragraph
existence on October 18, 1972, which treatment of inflow shall be subject to a (a) of this section, if EPA awards a grant
has suf[icient existing or planned cost-effectiveness analysis. for a Step 3 or Step 3 segment of a
capacity to adequately treat such (c) lnfillralion. [1) If the flaw rate at primary, secondary, or advanced
collected wastewater and where the the existing treatment facility is 120 treatment facility or its interceptors
bulk (generally two-thirds) of the gallons per capita per day or less during included in the facilities plan before
expected flow (flow [nom existing plus Periods of high groundwater, the October i, 1984, the grant for chat Step 3
future residential users) will be from the applicant shall build the project or Step 3 segment, and any remaining
resident population on October 18, 1972. including sufficient capacity to Transport segments, may include 20 years reserve
The expected flow will be subject to the and treat any existing infiltration. capacity.
limitations for interceptors contained in However; if the applicant believes any (c) Except as provided in paragraph
§ 35.2123. if assistance is awarded, the specific portion of its sewer system is (b) of this section, after September 30,
grantee shalt provide assurances that subject to excessive infiltration, the 1984, no grant shell be made to provide
~te existing population will connect to applicant may confirm its belief in a reserve capacity for a project for
..re collection system within a cost-effectiveness analysis and propose secondary treatment or more stringent
reasonable time after project a sewer rehabilitation program to treatment or new interceptors and
completion. eliminate that specific excessive appurtenances. Grants for such projects
infiltration. shall be based on capacity necessary to
§35.2118 Preaward costa. (2) If the flow rule ?t the existing serve existing needs (including existing
(a) EPA will not award grant treatment facility is more than 77.0 needs of residential, commercial,
assistance for Slep 2+3 end Step 3 work gallons per capita per day during industrial, end other users) as
C~~~~
AGREEMENT FOR
` STATE REVOLVING FUND LOAN
WZTH THE COUNTY OF HAWAII
FOR THE CONSTRUCTION OF WASTEWATER PROJECTS
LOAN FROM STATE AND FEDERAL FUNDS
Project No. C150062 04
Project Title: Ainako Interceptor Sewer, Parts A & B
THIS AGREEMENT, made and entered into as of the 1st day
of June, 1994, by and between the DIRECTOR OF THE DEPARTMENT OF
HEALTH, STATE OF HAWAII (hereinafter the "DIRECTOR"), and the
County of Hawaii (hereinafter the "COUNTY"), a Hawaii
municipality with principal offices at 25 Aupuni Street, Room
202, Hilo Hawaii 96720, WITNESSES THAT:
WHEREAS, pursuant to Act 365, 1988 Haw. Sess. Laws 705,
as partially codified in section 342-34 and later in section
342D-54, Hawaii Revised Statutes, and pursuant to section 342D-
54, Hawaii Revised Statutes, as amended by Act 262, 1991 Haw.
Sess. Laws 577, the DIRECTOR and his delegates are authorized to
make loans to municipalities for the construction of necessary
treatment works and for other projects intended for wastewater
reclamation or waste management;
WHEREAS, the COUNTY has made an application for a loan
related to the construction of the Project, hereinafter
described, and said Project has been determined by the DIRECTOR
to be eligible for a loan pursuant to applicable federal and
ADM. SERV. OFFICE
LOG NO. 94-500
1
~
HEALTH as required by this Agreement or defaults in the
observance or performance of any other provisions of this
Agreement, the DIRECTOR shall be entitled to an order or a writ
of mandamus issued by a court of proper jurisdiction, compelling
and requiring the COUNTY and its officers to observe and perform
any covenant, condition or obligation prescribed in this
Agreement.
No delay or omission to exercise any right or power
shall be construed to be a waiver of any such default or
acquiescence therein, and every such right and power may be
exercised from time to time and as often as may be deemed
expedient. The specific remedy herein provided shall be
cumulative of all other existing remedies and the specification
of such remedy shall not be deemed to be exclusive.
13. USER CHARGE SYSTEM The COUNTY shall at all times
maintain a User Charge System designed to produce adequate
revenue required for operation and maintenance (including
replacement) in accordance with 40'CFR sec.-35:2i~4`0' (the COUNTY
is deemed the "grantee" and the DIRECTOR is deemed the "Regional
Administrator" for the application here of this federal
regulation).
The User Charge System may include ad valorem taxes,
user charges based on actual use, or other sources of income
which are consistent with federal requirements.
The COUNTY guarantees that revenues from the User
ADM. SERV. OFFICE
LOG NO. 94-500
13
Charge System will be set aside for operation and maintenance
(including replacement) and not used for other purposes.
The COUNTY further agrees to annually review and if
necessary, modify the User Charge System in accordance with 40
CFR sec. 35.2122. (The COUNTY is deemed the "applicant" and the
DIRECTOR is deemed the "regional Administrator" for the
application here of this Federal Regulation.) The User Charge
System and all modifications thereof shall be consistent with
applicable guidelines established by the DIRECTOR.
14. PROJECT PROCUREMENT -The COUNTY shall:
a. Procure the architectural/engineering
services in accordance with Chapter 103 of the Hawaii
Revised Statutes and County of Hawaii Consultant
Selection Procedures.
b. Procure the construction contractor(s) in
accordance with Chapter 103 of the Hawaii Revised
Statutes.
c. Contractors debarred, suspended or voluntarily
excluded from participating in federally assisted
programs shall not be considered.
d. Award the prime construction contract for the
Project no later than ninety (90) days after receipt of
the Pre-Award offer. The COUNTY shall promptly submit
a copy of the Notice to Proceed to the DIRECTOR.
e. Provide the DIRECTOR an executed copy of the
ADM. SERV. OFFICE
LOG NO. 94-500
14
~ t-
Federal Register J Val. 49, No. 34 /Friday, February 17, 1984 /Rules and Regulations 6245
determined on the date of the approval wastewater produced by a facility that treatment works within the grantee's
of the Slep 3 grant. Grant assistance is owned and operated by the Federal service area and the grantee has
awarded after September 30,1990 shall government which contributes more continued to use that system;
be limited to the needs existing on than 250,000 gallons per day or five (2) The ad valorem user charge system
September 30, 1990. percent of the design flow of the distributes the operation and
(d) For any application with capacity complete waste treatment system, maintenance (including replacement)
in excess of that provided by this whichever is less.. costs for all treatment works in the
section: (Approved by the O[fice of Management and grantee's jurisdiction to the residential
(1) All incremental costs shall be paid Budget under control number 2040-oozy) and smell non-residential user class
by the applicant. Incremental costs (including at the grantee's option
include all costs which would net have 635.8130 Sewer use ordinance. nonresidential, commercial and
been incurred but for the additional The sewer use ordinance (see also industrial users that introduce no more
excess capacity, i.e., any cost in ~ § 35.2122 and 35.2208) or other legally than the equivalent of 25.000 gallons per
addition to the most cost-effective binding document shall prohibit any day of domestic sanitary wastes to the
alternative with eligible reserve new connections from inflow sources treatment works), in proportion to the
capacity described under paragraphs (a) into the treatment works and require use of the treatment works by this class;
and (b) of this section. that new sewers and connections to the and
(2) It must be determined that the treatment works are properly designed (3) Each member of the industrial user
actual treatment works to be built meets and constructed. The ordinance or other and commercial user class which
the requirements of the National legally binding document shall also discharges more then 25,000 gallons per
Environmental Policy Act and all require that all wastewater introduced day of sanitary waste pays its share of
applicable laws and regulations. into the treatment works not contain the costs of operation and maintenance
(3) The Regional Administrator shall toxics or other pollutants in amounts or (including replacement) of the treatment
approve the plans, specifications and concentrations that endanger public works based upon charges for actual
estimates for the actual treatment safety and physical integrity of the USe
works. treatment works; cause violation of (c) Notification. Each user charge
(4) The grantee shall assure the effluent or water quality limitations; or system must provide that each user be
Regional Administrator satisfactorily preclude the selection of the most cost- notified, at least annually, in
that it has assessed the costs and effective alternative for wastewater conjunction with a regular bill (or other
financial impacts of the actual treatment treatment and sludge disposal. means acceptable to the Regional
works and has the capability to finance (Approved by the Office of Management end Administrator), of the rate and that
and manage their construction and Budget under control number 2o4a-0027) portion of the user charges or ad
operation. valorem taxes which are attributable to
(5) The grantee must implement a user 635.2140 User charge system.
charge system which applies to the The user charge system (see wastewater treatment services.
entire service area of the grantee. 6635.2122 and 35.2208) must be designed (d) Financial management system.
e) The rantee shall execute to produce adequate revenues required Each user charge system must include
( g an adequate financial management
appropriate grant conditions or releases for operation and maintenance system that will accurately account for
protecting the Federal Government from (including replacement). It shall provide revenues generated by fhe system and
an claim for an of the costs of that each user which discharges
construction due to the additional pollutants that pause an increase in the expenditures for operation and
cost of mans to the effluent or stud a maintenance (including replacement) of
capacity, g g g the treatment system, based on an
from the treatment works shall pay £or
6 35.2125 Treatment of wastewater from such increased cost. The user charge adequate budget identifying the basis
Industrial users. system shall be based on eithar actual for determining the annual operation
(e) Grant assistance shall not be use under paragraph (a) of this section, and maintenance costs and the costs of
provided for a project unless the project ad valorem taxes under paragraph (b) of Personnel, material, energy and
is included in a complete waste this section, or a combination of the two. administration.
treatment system and the principal (a) User charge system based on (e) Charges for operation and
purpose of both the project and the actual use. A grantee's user charge maintenance for extraneous flows. The
system is for the treatment of domestic system based on actual use (or user charge system shall provide that
wastewater of the entire community, estimated use) of wastewater treatment the costs of operation end maintenance
area, region or district concerned. services shall provide that each user (or for all flow no[ directly attributable to
(b) Allowable project costs do not user class) pays its proportionate share users (i.e., infiltration/inflow) be
include: of operation and maintenance (including distributed among all users based upon
(ij Costs of interceptor or collector replacement) costs of treatment works either of the following:
sewers constructed exclusively, or within the grantee's service area, based (1) In the same manner that it
almost exclusively, to serve industrial on [he user's proportionate contribution distributes the costs for their actual use,
users; or to the total wastewater loading from all or
(2) Costs for control or removal of users (or user classes). (2) Under a system which uses one of
pollutants in wastewater introduced into (b) User charge system based on od any combination oC the following factors
the treatment works by industrial users, valorem !axes. A grantee's user charge on a reasonable basis:
unless the applicant is required to system which is based on ad valorem (i) Flow volume of the users;
remove such pollutants introduced Crom taxes may be approved if: (ii) Land area of the users:
nonindustrial users. (1) On December 27, 1977, the grantee (iii) Number of hookups or discharges
bed in existence a system of dedicated of the users;
6 35.2127 Federal tacllltlea. ed valorem taxes which collected (jv) Property valuation of the users, if
Grant assistance shall not be provided revenues to pay the cost of operation the grantee has an approved user charge
for costs to Iransporl or treat end maintenance of wastewater eyelem based on ad valorem taxes.
6246 Federal Register /Vol. 49, No. 34 /Friday, February 17, 1984 /Rules and Regulations
,f) After completion of building a the treatment works referenced in subfect to the conditions under
project, revenue from the project (e.g., (a)(3)(i) of this section provided that all § § 35.2202 through 35.2218.
sale of atreatment-related by-product; phases or segments previously funded § 35.2202 Step 2+3 projects.
lease of the land; or sale of crops grown by EPA are operational and comply with
on the land purchased under the grant the enforceable requirements of the Act. (a) Prior to initiating action to acquire
agreement) shall be used to offset the (b) Innovative and alternative eligible real property, a Step 2+3
costs of operation and maintenance. The technology. In accordance with grantee shall submit for Regional
grantee shall proportionately reduce all § 35.2032, the Federal share for eligible Administrator review and written
user charges. .treatment works or unit processes and approval the information required under
(g) Adoption of system. One or more techniques that the Regional § 35.2040(6)(7).
municipal legislative enactments or Administrator determines meet the (b) Hefore initiating procurement
other appropriate authority must definition of innovative or alternative action for the building of the project, a
incorporate the riser charge system. If technology shall be 20 percent greater Step 2+3 grantee shall submit for the
the project accepts wastewater from than the Federal share under paragraph Regional Administrator's review and
other municipalities, the subscribers (a) or (cj of this section, but in no event written approval the information
receiving waste treatment services from shall the total Federal share be greater required under § § 35.2040 (bj(5) and
the grantee shall adopt user charge than 85 percent. This increased Federal (b)(5), 35.2106, 35.2107, 35.2130 and
systems in accordance with this section. share depends on the availability of 35.2140.
These user charge systems shall also be funds from the reserve under § 35.2020.
incorporated in appropriate municipal The proportional State contribution to § 35.2204 Protect changes.
legislative enactments or other the non-Federal share of building costs (a) Minor changes in the project work
appropriate authority of all for I/A projects must be the same as ur that are consistent with the objectives of
municipalities contributing wastes to the greater than the proportional State the project and within the scope of the
treatment works. contribution (if any) to the non-Federal grant agreement do not require the
(h) Inconsistent agreements. The user share of eligible building costs for all execution of a formal grant amendment
charge system shall take precedence treatment works which receive 75 or 55 "before the grantee's implementation of
over any terms or conditions of percent grants or such other.Federal the change. However, the amount of the
agreements or contracts which are share under paragraph (c) of this section funding provided by the grant agreement
inconsistent with the requirements of in the State. may only be increased by a formal grant
section 2o4(b)(1j(Aj of the Act and this (c) Uniform IowerFederel share. (1) amendment.
action. Except as provided in § 35.2032 (cj and (b) The grantee must receive from the
_..pproved by the Office of Management and (d) of this section, the Governor of a Regional Administrator a formal grant
Budget under control number 2040-0027) State may request the Regional amendment before implementing
Administrator's approval to revise changes which:
§ 35.2152 Federal share. uniformly throughout the State the
(a) Genera/. The Federal share for Federal share of grant assistance for all (1) Alter the project performance
each project shall be based on the sum future projects. The revised Federal standards;
of the total Step 3 allowable costs and share must apply to all needs categories [2) Alter the type of wastewater
the allowance established in the grant (see § 35.2015(6)(2)). treatment provided by the project;
agreement under Appendix B. Except as (2) After EPA awards grant assistance (3) Significantly delay or accelerate
provided elsewhere in this section, the fat a project, the Federal share shall be the project schedule;
Federal share shall be: the same for any grant increase that is (4) Substantially alter the facilities
(1) 75 percent for grant assistance within the scope of the project. plan, design drawings and
awarded before October 1, 1984; (d) Training Facilities. The Federal specifications, or the location, size,
(2) 55 percent for grant assistance share of treatment works required to capacity, or quality of any major part of
awarded after September 30, 1984, train and upgrade waste treatment the project; or
except as provided in paragraph (a)(3) of works operations and maintenance (5) Otherwise require a formal grant
this section; and personnel maybe up to 100 percent of amendment under Part 30 of this
(3) Subject to paragraph (c) of this the allowable cost of the project, subchapter.
section, 75 percent for grant assistance (1) Where a grant is made to serve
awarded after September 30, 1984, for two or more States, the Administrator is §:35.2206 Operation and malntenanee.
sequential phases or segments of a authorized to make an additional grant a The grantee must assure
primary, secondary, or advanced for a supplemental facility in each State. ( )
treatment facility or its interceptors, or The Federal funds awarded to any State economical and effective operation end
infiltration/inflow correction provided: under section 109(6) for all training maintenance (including replacement) of
(iJ The treatment works being phased facilities shall not exceed $500,000. the treatment works.
or segmented is described in a facilities (2) Any grantee who received a grant (b) Except as provided in paragraphs
plan approved by the Regional under section 109(6) before December (c)(1) and (c)(2) of this section, [he
Administrator before October 1. 1984; 27, 1977, may have the grant increased Regional Administrator shall not pay
(ii)~The Step 3 grant for the initial up to $500,000 by funds made available more than 50 percent of the Federal
phase or segment of the treatment works under the Act, not to exceed 100 percent share of any project unless the grantee
has furnished and the Regional
described in (a)(3)(i) of this section is of the allowable costs. Administrator has approved the final
warded prior to October 1, 1984; and (Approved by the Office of Management and
(iii) The phase or segment that Budget under control number 2alo-0027) Plan of operation required by § 35.2108,
receives 75 percent funding is necessary and shall not pay more than 90 percent
to (A) make a phase or segment § 35.2200 Grant condl0ona, of the Federal share of any project
previously funded Ly EPA operational In addition to the EPA Cencrel Crant unless the grantee has furnished and the
and comply with the enforceable Conditions (Part 30 of this subchapter), Regional Administrator has approved an
requirements of the Acl, or (D) complete each treatment works grant shall be operation and maintenance manual.
KEY USER CHARGE REGULATORY REQI.~ .EMENTS AS A
CONDITION OF RECEIVING A CONSTRUCTION GRANT
REGULATORY REQUIREMENTS REGULATORY CITATION
40 CFR PART:
1. Preparetheframeworkforapprovalofauser
auserchargesystemby:
-Insurin g adeq uate public participation • 25
--Including acost-effective analysis of the annual
capital and O,M&R costs of the various treat-
menttechniquestechniquesconsideredinthe
~ facilities plan 35.2030 (b) (3) (vii?
i
' --Including the cost impacts on system users
of the technology selected 35.2030 (b) (7) (iii)'
-Demonstratingthelegal,institutional,
managerial, and financial capabilityto ensure
adequate O,M&R 35.2104 (b)
-Developing a plan of operation that addresses
the user charge system 35.2106
-Executing the proper intermunicipal service
agreements, when necessary 35.2107
2. Develop User Charge System which provides
~ forthefollowing:
-DistributesO,M&R costs for wastewater 35.2140
treatmentto users (or user classes in Section 204 (6) (11(A)
proportion to the total loading of each of theAct^
user (or user class)
--Generates sufficientrevenueto offset 35.2140(a)(b)
O,M&R costs
-Establishes user classes as required 35.2140 (al (bl
--Distributes Infiltration/Inflow costs 35.2140 (e)
among all users
I -Annual notification of users 35.2140 (c)
-Establishesfinancial managementsystem 35.2140 (d)
to account for revenues and expenditures
-Ensu res that toxic dischargers pay for
the incremental costs oftreatment and Section 301 of the Act
sludge disposal
-Ensures that user charge system takes
precedence over agreements or contracts 35.2140(8)"
between the grantee and users
•Changed to 35.2030 (b) (8) (iv) in the Final Construction Grants Regulations published February 17, 1984
•'Changed~to 35.2140 (hl in the Fnal Construction Grants Regulations published February 17, 1984
13