(a) Availability. The board will make funds available through the research and planning fund or development fund to political subdivisions in affected counties for up to 100% of the cost of facility planning for water and wastewater facilities to serve economically distressed areas. The determination of the amount of grant made available by the board shall be made under the following criteria:
  (1) If an applicant has unrestricted cash reserves in an amount that is more than one and one-half times than the preceding year's average monthly operation and maintenance expenses, the board may fund 75% of the cost of the facility planning, with the applicant providing at least 50% of the remaining cost of the facility planning in the form of cash;
  (2) Upon written request of an applicant for a greater grant percentage and if the applicant has unrestricted cash reserves of less than one and one-half times but equal to or greater than one times the preceding year's average monthly operation and maintenance expenses, the board may fund 87.5% of the cost of the facility planning, with the applicant providing for the remaining portion of the facility planning by providing in-kind services or any combination of cash and in-kind services;
  (3) Upon written request of an applicant for a greater grant percentage and if the applicant has unrestricted cash reserves of less than one times the preceding year's average monthly operation and maintenance expenses, the board may fund 87.5% of the cost of the facility planning, with the applicant providing for the remaining portion of the facility planning by providing in-kind services; provided however, upon certification by the applicant that the applicant does not have the staff or that the applicant's staff lacks sufficient expertise to perform any in-kind contribution, the board may provide 100% of the cost of the facility planning; or
  (4) Funds made available to the board pursuant to an agreement which specifies terms and conditions under which the board may distribute such funds shall be provided to eligible applicants based on the availability of the funds and pursuant to the criteria and in the manner set forth in such funding agreements. Any such agreements shall be available upon request.
(b) Engineering. To make the most effective use of the limited amount of funds available, the applicant will confer with the board on all significant decisions related to facility planning.
(c) Professional engineer. All facility planning reports and plans shall be signed and sealed by a professional engineer in accordance with the Texas Engineering Practice Act, Texas Occupations Code, Chapter 1001.
(d) The board may provide financial assistance for costs necessary to provide water or sewer services to economically distressed areas for the preliminary planning, including contingencies as determined by the board, to determine the feasibility of a water supply project, treatment works, or flood control measures. The grant agreement shall provide for the board to retain a minimum of 15% of the progress payments otherwise due to the applicant until the funded deliverable, as defined in the grant agreement, is substantially complete and is authorized by the executive administrator.

Source Note: The provisions of this §355.71 adopted to be effective October 11, 1991, 16 TexReg 5329; amended to be effective May 6, 1992, 17 TexReg 3001; amended to be effective March 15, 1994, 19 TexReg 1466; amended to be effective August 12, 1994, 19 TexReg 5846; amended to be effective February 11, 1999, 24 TexReg 765; amended to be effective January 2, 2007, 31 TexReg 10802; amended to be effective February 18, 2008, 33 TexReg 1348