PREPROPOSAL STATEMENT OF INQUIRY
[Filed August 21, 2019, 9:19 a.m.]
Subject of Possible Rule Making: Creating chapter 136-500 WAC, Emergency loan program (ELP).
Statutes Authorizing the Agency to Adopt Rules on this Subject: Chapter 36.78
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The goal of this new program is to provide financial assistance to counties during a disaster.
Process for Developing New Rule: Agency study; and comments received will be presented to the county road administration board at their October 24-25, 2019, quarterly meeting.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Karen Pendleton, 2404 Chandler Court S.W., Suite 240, Olympia, WA 98504-0913, phone 360-753-5989, email firstname.lastname@example.org, web site www.crab.wa.gov.
August 21, 2019
John M. Koster
Chapter 136-500 WAC
EMERGENCY LOAN PROGRAM (ELP)
WAC 136-500-010Purpose and authority.
provides that the county road administration board shall administer the emergency revolving loan program established by chapter 36.78
RCW. This chapter describes the manner in which the county road administration board will administer the provisions of the emergency revolving loan program.
For this chapter, the following definitions shall apply:
(1) Board - County road administration board as defined in chapter 36.78
(2) CRAB - County road administration board.
(3) DDIR - Detailed damage inspection report used by the Federal Highway Administration as an application for emergency funding under their programs.
(4) LGIP - Local government investment pool under the administration of the state treasurer.
(5) Permanent - Work that restores or improves a county road for the long-term use by the traveling public.
(6) Temporary - Work that restores a county road for the short-term use by the traveling public. Temporary work typically results in restricted use and signing of deficiencies for the safety of the traveling public.
WAC 136-500-030Eligible work.
Eligible work under this chapter is work of either a temporary or a permanent nature. Permanent work must restore the roadway to the predisaster condition and may include necessary improvements to bring the damaged roadway to current design standards. This work must be the result of a natural or man-made event that results in the closure or substantial restriction of use of the roadway by the traveling public. Work of an emergency nature is beyond the scope of work done by a county in repairing damage normally or reasonably expected from seasonal or other natural conditions.
This program may fund eligible work on any classification of road under the county's jurisdiction.
WAC 136-500-040County eligibility.
Any county who is eligible to participate in the rural arterial program, has a current certificate of good practice and a total population under 800,000 as of April 1, 2019, is eligible to participate in this program.
WAC 136-500-050Project type and submittal.
(1) There are two project types eligible for funding under this program:
(a) Site specific - Single location.
(b) County wide - Multiple sites within a single county.
(2) To request a loan through this program, the county shall submit the following:
(a) A copy of the adopted emergency declaration; and
(b) A brief description of the project site(s) requested for funding; and
(c) An estimate of costs for work at each site(s); and
(d) Pictures of the damaged area(s); or
(e) A DDIR for each site may be submitted in lieu of requirements (a) through (d) of this subsection.
WAC 136-500-060Funding limits.
Project funding is limited to two million dollars or fifty percent of available fund balance, whichever value is less. If a county desires funding above these limits, the county's legislative authority may request additional funding at the next regularly scheduled board meeting.
If CRAB receives multiple loan requests resulting from a single regional event, funding shall be prioritized. Prioritization will be made by averaging the county rankings for the following criteria:
(1) RCW 46.68.124
(2) - Annual road costs. Counties ranked from lowest road cost factor to highest.
(2) RCW 46.68.124
(3) - Money needs. Counties ranked from lowest money needs factor to highest.
The lower the average county ranking, the higher priority that county is for funding during a regional event.
WAC 136-500-080Payback terms.
Any loan funded through this program shall have a term not to exceed twenty-four months. The county will be invoiced six months from the date of contract execution and quarterly thereafter until the end of the contract term.
Interest on the amount of the loan shall be the monthly rate of return for the LGIP not to exceed three percent.
If a county pays the county road administration board the principle amount of the loan within six months of the date of contract execution, no interest will be charged and the contract will be closed. Should a county not pay the loan in full within six months of the date of contract execution, interest will be calculated from the date of contract execution to the date of final payment. A county may pay off any loan received through this program before the end of the term to reduce the amount of interest owed.
WAC 136-500-090Execution of CRAB/county contract.
The executive director of CRAB is authorized to execute a contract with any eligible county under this program with a not to exceed amount of two million dollars or fifty percent of available fund balance, whichever value is less. A county may request additional funding through this program at the next regularly scheduled board meeting.
Upon execution of a contract under this chapter, the executive director will advise board members of the contract details including county, number of project(s) and the loan amount.
WAC 136-500-100Failure to meet requirements of this chapter or terms of the contract.
Should a county fail to meet the requirements of this chapter or the terms of the contract, the matter will be before the board at their next regularly scheduled meeting. The county will be requested to be present for said meeting to provide an explanation for failing to meet the requirements of this chapter or terms of the contract. At said meeting, the board may take any action it deems necessary to ensure prompt compliance of the requirements of this chapter and the terms of the contract.
WAC 136-500-110Report to legislature.
Consistent with RCW 43.01.036
, the board must submit a report to the legislature by December 1st of each even-numbered year identifying each project that received money from the CRAB emergency loan account, the amount of the loan, the expected repayment terms of the loan, the expected date of repayment, and the loan repayment status. Each project should be reported about until the loan is repaid.