(c) Purchasing insurance for a municipality.
(25) “Financial assistance agreement” means a written agreement between a municipality, the department and DOA that contains the terms and conditions of the financial assistance provided to the municipality.
(26) “Financial assistance agreement amendment” means a formal, written change to an existing financial assistance agreement, executed by all parties to the original agreement.
(27) “Force account work” means engineering, construction, or other project-specific activities performed by a municipality’s employees, or using equipment owned by the municipality, or both.
(28) “Future growth” means distribution system expansion beyond the existing system and excess capacity built into facilities that exceeds standard engineering practices.
(29) “Interim financing” means a debt of a municipality incurred to temporarily finance a project until permanent financing is obtained from the department under this chapter.
(30) “Interim financing costs” means the net interest, fees, and charges associated with issuing interim financing, including underwriter discounts, attorney fees, financial advisor fees, printing costs, bond rating charges, and trustee fees.
(32) “Maintenance” means activities or procedures that are established, commonplace, or repetitious, and are performed or should be performed frequently or on a schedule to sustain the functional integrity and efficiency of existing facilities and to provide upkeep for prevention of early decline or failure, or are performed as needed in response to minor emergencies, such as watermain repair when a pipe bursts, including the following types of maintenance:
(a) Preventive maintenance, including scheduled service, repair, inspection, adjustment, or replacement of parts, to keep equipment or facilities in satisfactory operating condition, to avoid frequent breakdowns and premature replacements, and to achieve the expected life of constructed assets and installed building equipment, conducted with a frequency of one year or less.
(b) Corrective maintenance, including unscheduled maintenance repairs to correct deficiencies during the year in which they occur.
(c) Mobile equipment maintenance, including all corrective, preventive, emergency, or replacement maintenance work done on mobile equipment assets, except when performed at time of purchase of used equipment to bring the purchased equipment to a fully functional or improved condition, or both.
(d) Recurring maintenance, including preventive maintenance activities that recur on a periodic and scheduled cycle of greater than one year, but less than 10 years.
(e) Component renewal, which is preventive maintenance activities that recur on a periodic and scheduled cycle of greater than 10 years, excepting storage tank recoating.
(f) Emergency maintenance, including unscheduled activities and repairs, such as repairing watermain breaks or mechanical malfunctions in aged or damaged infrastructure, typically initiated within a very short amount of time from when a need is identified, to correct an emergency need to prevent injury, loss of property, or human health impacts, or to quickly return an asset to service, excepting emergency repairs or replacement needed due to damage caused by severe weather, cyber attacks, or other unforeseen serious emergency situations over which the municipality has no control.
(g) Minor equipment replacement that substitutes or exchanges one existing asset, asset component, or item of installed equipment for another having the same specifications and the same capacity to perform the same function, except when performed within the scope of a larger capital improvement.
(h) Demolition that does not meet the cost eligibility criteria established in s. NR 166.07 (1) (g). (33) “Market interest rate” has the meaning given in s. 281.59 (1) (b), Stats. Note: Under s. 281.59 (1) (b), Stats., “market interest rate” means the effective interest rate on a fixed-rate revenue obligation issued by the state to fund a loan made under s. 281.59 (1) (b) or, for a variable rate obligation, the effective interest rate that the department of administration determines would have been paid if the variable rate obligation had been sold at a fixed rate. (34) “Maximum contaminant level” or “MCL” means the maximum permissible level of a contaminant that is delivered to any user of a public water system.
Note: The maximum permissible level and the sampling and analytical requirements vary depending on the specific contaminant. Chapter NR 809 should be consulted for specific information regarding any contaminant. (35) “MCL exceedance” means the analytical results of sampling for microbiological, inorganic, synthetic organic, volatile organic, disinfection byproducts, or radionuclide contaminants, as determined by methodology outlined in ch. NR 809, exceed the MCL of the contaminant. (36) “Median household income” has the meaning given in s. 281.58 (1) (cm), Stats. Note: Under s. 281.58 (1) (cm), Stats., “median household income” means median household income determined by the U.S. bureau of the census as adjusted by the department to reflect changes in household income since the most recent federal census. (37) “Minor civil division” means the primary governmental divisions of a county, including towns, as designated by the U.S. bureau of the census to collect and publish data.
(38) “Minority business enterprise” or “MBE” means a DBE that is owned or controlled on a daily basis by one or more minority group members.
(39) “Municipality” has the meaning given in s. 281.59 (1) (c), Stats. Note: Under s. 281.59(1)(c), Stats., “municipality” means any city, town, village, county, county utility district, town sanitary district, public inland lake protection and rehabilitation district, metropolitan sewerage district, joint local water authority created under s. 66.0823, Stats., or federally recognized American Indian tribe or band in this state. To be eligible for financial assistance from the safe drinking water loan program, an entity must be of a type included in the definition of “municipality” under s. 281.59 (1) (c), Stats., However, “municipality” includes some entities that are not eligible to receive safe drinking water loan program financial assistance because they are not eligible under federal regulations. The types of entities that are eligible to receive safe drinking water loan program financial assistance are those included in the definition of “local governmental unit” under s. 281.61 (1) (a), Stats., which reads as follows: ““Local governmental unit” means a city, village, town, county, town sanitary district, public inland lake protection and rehabilitation district, joint local water authority created under s. 66.0823, or municipal water district.” If a municipal water district applies for safe drinking water loan program financial assistance, the recipient of the financial assistance is the incorporated place, rather than the utility itself. (40) “Non–community water system” means a public water system that is not a community water system.
(41) “Operations” means labor, materials and chemicals used regularly, and work activities performed on a recurring basis throughout the year that are intended to meet routine, daily functional needs. Work activities may include any of the following:
(a) Operational maintenance activities related to continuing normal performance of the functions for which a water system asset or item of equipment is intended, such as lubricating gates and valves and removing organic growth or sediment, or related to keeping building systems such as HVAC, lighting, and electrical utilities working properly.
(b) Custodial maintenance activities, such as housekeeping duties, rodent and pest control, cutting brush and weeds, and lawn mowing, associated with general day-to-day care and cleaning necessary to maintain constructed assets.
(c) Trash removal activities to dispose of hazardous and non-hazardous waste and debris and to recycle products such as paper, cans, and bottles.
(d) Snow and ice removal and activities to treat surfaces to eliminate unsafe weather-related conditions.
(e) Office activities related to billing, collections, customer communications, personnel, and other types of activities that support the administration of the water system.
(f) Monitoring and record-keeping activities associated with making sure all components of the water system are working as they should, including: sampling, testing, analyzing data from a supervisory control and data acquisition system, patrolling and inspecting, reading gauges and meters, keeping plant logs and records, and preparing operations reports.
(42) “Place” means a concentration of population either legally bounded as an incorporated place, such as a city or village, or identified as a census designated place by the U.S. bureau of the census.
(43) “Plans and specifications” means project drawings and specification manuals for all construction work to be included in the financial assistance for the scored project.
(44) “Population” means the most recent year’s final population estimate published by the DOA demographic services center for the Wisconsin city, town, or village that submitted an intent to apply form. For a public water system owned by other than a city, town or village, “population” means the most recent population count or estimate done for the system or municipality and provided to the department by the municipality for purposes such as completing a sanitary survey.
(45) “Present value subsidy” or “PV” means the sum of periodic subsidies for loans made to or projected to be made to municipalities during a fiscal year, discounted at a rate of 5% to 7% per year to the first day of the biennium during which the loans are made.
(46) “Priority score” means the numerical value determined by the department that is assigned to each project in accordance with ss. NR 166.23 and 166.24. (47) “Professional services” includes engineering, archaeological, legal, or financial services, provided by a formally certified member of a professional body, such as a trade association or organized profession.
(48) “Project” means a set of activities described by a municipality for a planned undertaking related to its water system.
(50) “Project completion date” means the earliest date on which all of the following apply:
(a) The project construction is complete.
(b) The department or its agents have certified that the project was constructed according to department-approved plans and specifications.
(c) The department or its agents have certified that the facilities are operating according to design.
(d) The project closeout is complete.
(e) The department has notified the recipient that the project is complete.
(51) “Public water system” means a system for the provision to the public of piped water for human consumption if the water system has at least 15 service connections or regularly serves an average of at least 25 individuals daily at least 60 days each year. A public water system is either a community water system or a non–community water system.
Note: The definition of public water system as regulated by this chapter is broader and includes more water systems than those governed by the Public Service Commission under its definition of a public utility in ch. 196, Stats. (52) “Recipient” means any municipality or group of municipalities that has been awarded or has received financial assistance under ss. 281.59 and 281.61, Stats. (53) “Safe drinking water act” means the federal safe drinking water act, 42 USC 300f to 300j–26. (54) “Safe drinking water loan program” or “SDWLP” has the meaning given in s. 281.61 (1) (d), Stats. Note: Under s. 281.61 (1) (d), Stats., “safe drinking water loan program” means the program administered under s. 281.61, Stats., with financial management provided under s. 281.59, Stats. (55) “Scored project” means a project to which all of the following apply:
(a) The type of project meets eligibility criteria established in s. NR 166.06 (1). (b) The planned set of activities of the project includes construction activities that are reasonably necessary and appropriate to address a particular public health or water system concern.
(c) The scope of work is described in a priority evaluation and ranking form and a notice of intent to apply submitted by the applicant.
(d) The department completed all of the following actions:
1. Reviewed the priority evaluation and ranking form.
2. Made any appropriate changes to the scope of work identified by the applicant to remove work that is superfluous to the scope of work necessary to address the particular public health or water system concern.
3. Determined the project priority score based on the adjusted scope.
4. Provided a SDWLP project number to the scored scope of work.
(56) “Service line” means the connection from a publicly or privately owned water system to a residential, commercial, institutional, or industrial user located in the public right–of–way or on private property.
(57) “Significant noncomplier” means a public water system that the U. S. environmental protection agency has reported to the department to be in significant noncompliance with any requirement of a primary drinking water regulation or variance under 42 USC 300g−1. (58) “Subsidy” means the amount provided from the environmental improvement fund to a recipient of SDWLP financial assistance to reduce the interest rate of a loan made under the SDWLP from the market interest rate to a lesser rate, or to forgive a portion of the principal of an SDWLP loan.
(59) “Substantial completion” means the date on which project construction is sufficiently complete in accordance with the contract documents so that the owner can occupy or utilize the project for its intended use.
(61) “Treatment technique” means one or more methods of treatment that are known to remove or inactivate giardia and viruses as determined in ss. NR 810.29 and 810.31. (62) “Utility” means a public utility as defined in s. 196.01 (5), Stats. (63) “Water rates” means a charge or system of charges levied on users of a water system for the user’s proportional share of the revenue requirement of a water system that consists of operation and maintenance expenses, depreciation, taxes and return on investment.
(64) “Water system” means all structures, conduits and appurtenances by means of which water is obtained or drawn from a source and eventually delivered to consumers, except piping and fixtures inside buildings served and the privately owned portions of service lines from street mains to buildings.
(65) “Women business enterprise” or “WBE” means a DBE that is owned or controlled on a daily basis by a woman or women.
SUBCHAPTER II — FINANCIAL ASSISTANCE REQUIREMENTS
NR 166.04 Types of financial assistance available. The department and DOA may, subject to applicable requirements of ss. 281.59 and 281.61, Stats., and ch. Adm 35, provide to eligible applicants for eligible projects any of the following types of financial assistance unless the project has been substantially complete for 3 years or longer or the applicant already has long-term affordable debt outstanding for its completed or substantially completed project: (1) Subject to the limits established in s. NR 166.07 (3), purchase or refinance a municipality’s interim financing. (2) Guarantee, or purchase insurance for, municipal obligations for construction if the guaranteed or purchased insurance would improve credit market access or reduce interest costs on the municipal obligations.
(3) Make loans below the market interest rate.
NR 166.05 Annual funding policy, project priority list, and funding list. (1) FUNDING POLICY AND PROJECT PRIORITY LIST. The department may produce an annual SDWLP funding policy in conjunction with the fiscal year’s project priority list established under s. NR 166.25. The funding policy may describe methods for making funding determinations and other policies related to the fiscal year. If the department publishes a funding policy for a given year, it shall provide an opportunity for public comment regarding the funding policy. (2) FUNDING LIST. The department shall prepare an annual funding list in accordance with s. 281.61 (8), Stats., and s. NR 166.25. NR 166.06 Project eligibility. (1) ELIGIBLE PROJECTS. A municipality may receive financial assistance under this chapter for a project that has any of the following purposes:
(a) Address safe drinking water act health standards that have been exceeded or to prevent future violations of health standards and regulations contained in ch. NR 809. This includes projects to maintain compliance with existing regulations for contaminants with acute health effects and regulations for contaminants with chronic health effects. (b) Replace infrastructure if necessary to maintain compliance with or further the public health protection goals of the safe drinking water act. This includes projects with any of the following purposes:
1. Rehabilitate or develop sources to replace contaminated sources, excluding reservoirs, dams, dam rehabilitation, and water rights,.
2. Install or upgrade treatment facilities if, in the department’s opinion, the project would improve the quality of drinking water to comply with primary or secondary drinking water standards.
