Title of Rule: WAC 399-30-060 Loan and financing guarantee contracts, this rule identifies contractual terms and conditions; sets timelines for adoption of terms; and sets timelines for borrowers to return contract documents to the Public Works Board.
Purpose: Removes minimum matching fund requirements.
Statutory Authority for Adoption: RCW 43.155.040(4).
Statute Being Implemented: Chapter 43.155 RCW.
Summary: The Public Works Board has determined its local match requirements hinder local government participation in the public works trust fund.
Reasons Supporting Proposal: The board has traditionally required a minimum 10% local match for the projects funded by public works trust fund loans. As the cost of projects has increased, the board finds that flexibility in setting local match rates is necessary.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Mike Woods, Evergreen Plaza Building, 711 Capitol Way, Suite 102, Olympia, WA, (360) 586-4133.
Name of Proponent: Public Works Board, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: The Public Works Board has traditionally funded 90% of the cost of local government infrastructure projects (10% local match is required). As the cost of projects has increased, the board finds the 10% local match requirement hinders local participation in the program. Removing 10% match requirement provides the board flexibility in setting match. This will result in improved customer service.
Proposal Changes the Following Existing Rules: Removes
the 10% local match requirement.
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THE USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Mike Woods, Public Works Board, Evergreen Plaza Building, 711 Capitol Way, Suite 102, Olympia, WA 98504-8319 , AND RECEIVED BY April 19, 2004.
February 10, 2004
Program Resources Manager
(2) After the legislature has appropriated funds from the public works assistance account for a specific list of public works projects, the loan funds will be disbursed to the applicant local government through a contract. The contract will offer terms and conditions as the board determines are reasonable, based on the following standards:
(a) The amount loaned to a local government must not
exceed ninety percent of eligible proposed project costs. (b) (a) The local government's financial participation
funds must be from locally generated revenues or federal or
state shared revenues that can be allocated at the discretion
of the local government. (c) (b) The interest rates, and local share requirements
and loan limits for loans will be determined annually by the
board. (d) (c) Loans must not exceed twenty years, or the useful
life of the improvements, whichever is shorter.
(3) The local government and the department must execute a final contract before any funds are disbursed.
(4) The local government must complete a scope of work form for a loan or financing guarantee and return it to the department within ninety days after the department offers a loan or financing guarantee.
(5) The local government must execute any loan or financing guarantee contracts offered within ninety days after the department offers the contract.
(6) The local government must begin work on a public works project prior to October 1 of the year in which the loan or financing guarantee is offered.
(7) The local government must complete work on the public works project within the time specified in the loan agreement, unless a written request for extension is approved by the board.
(8) The board or department will not reimburse local governments for any funds spent on public works projects financed through the public works assistance account before a contract agreement has been formally executed. Funds spent before the contract is executed may be used toward local participation requirements if they are for eligible activities under WAC 399-30-030 and are consistent with the executed loan agreement.
[Statutory Authority: RCW 43.155.040 (4) and (5). 98-24-010, § 399-30-060, filed 11/19/98, effective 12/20/98. Statutory Authority: RCW 43.155.040(4). 92-03-052, § 399-30-060, filed 1/13/92, effective 2/13/92. Statutory Authority: RCW 43.155.040. 88-23-095 (Order 88-08, Resolution No. 86-12), § 399-30-060, filed 11/22/88; 86-18-009 (Resolution No. 86-12), § 399-30-060, filed 8/21/86. Statutory Authority: 1985 c 446 § 10. 85-24-072 (Order 85-17), § 399-30-060, filed 12/4/85.]
Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.