SECTION 785:50-8-6. Disbursement of funds

(a)   Action following Board approval and prior to disbursement of funding.

(1)   Notification of approval. Upon approval of a REAP grant application, the Board shall furnish to the applicant a written notice of grant approval. The notice shall advise the applicant that the grant application has been formally and officially approved by the Board and that the grant funds approved shall be made available to the applicant by the Board for such purposes and upon such other terms and conditions as the Board may require.

(2)   Bid filing. Within ninety (90) days following the date of the written notice of approval, the applicant shall file with the Board an acceptable bid for completion of the proposed project. Where determined necessary and appropriate, the Board or its staff may permit additional time to file such a bid; provided, notwithstanding any approval of additional time, if such a bid is not filed within one (1) year following the date of Board approval of the application, then the Board's approval shall expire and no funds shall be released provided however, if an acceptable bid for completion has not been filed due to circumstances that lay outside the applicant's control, the applicant may request, and the Board may approve or deny, a one-time extension of time not to exceed six months to file an acceptable bid. Provided further, in the event of such expiration the applicant may file a new application which shall be subject to due consideration on its own merits.

(3)   Additional conditions prior to disbursement of grant funds.

(A)   Applicant shall establish, in such manner as is acceptable to the Board or its staff, a special and separate federally insured account in and through which the grant proceeds shall be administered and accounted for by the applicant.

(B)   Unless otherwise provided and approved by the Board, applicant shall submit to the Board all plans, specifications and engineering reports, for the project for staff approval, all of which shall be complete and in sufficient detail as would be required for submission of the project to a contractor for bidding or contracting the project. If not previously provided, applicant shall provide Board with a written and verified statement setting forth:

(i)   the amount of funds necessary for release and disbursement at closing which funds are needed for initial commencement of the project, and

(ii)   information reflecting the reasonable availability of and/or a commitment from all other revenue or funding sources needed to finance and complete the project.

(C)   Applicant and Board, and all other necessary parties, shall have executed all necessary and incidental instruments and documents, including but not limited to a grant agreement.

(4)   Board action on request for increase in approved amount. If prior to disbursement of the grant monies to the applicant, the project bids exceed the engineer's estimates or it otherwise develops that the REAP grant amount approved by the Board, when combined with any other sources of funding, will be insufficient to complete the approved project, then the applicant may file a written request:

(A)   to amend the scope of the approved project in a manner consistent with (a)(5) of this Section; or

(B)   decline funding and withdraw its application for the current fiscal year and request that the Board reconsider the application with an increased REAP grant amount during the following fiscal year. The request for an increased REAP grant amount shall be treated as a new application on its own merits; provided, the original application shall not be counted for purposes of the previous grant assistance portion of the priority point determination.

(5)   Board action on request for change in scope of approved project. If prior to disbursement of the grant monies to the applicant, it develops that the applicant wishes to change the scope of the project from that approved by the Board, then the applicant may file a written request for approval of such a change. If the Board staff determines that the change is reasonably and in all material aspects within the scope of the project description approved by the Board, then the staff shall be authorized to approve such requested change. If the Board staff determines that the change is not in all material respects within the scope of the project description approved by the Board, then such a request shall be presented to the Board for action. Provided, however, the Board shall not approve a change in scope of project if the change, if considered as part of the original application, would have resulted in a lower priority point determination on the application.

(b)   Disbursement of funding to applicant; action following disbursement.

(1)   Disbursement contingent on completion of conditions; reduction from approved amount. At the time and upon compliance by the applicant with the applicable requirements in (a) of this Section, the Board may disburse the approved amount of REAP grant funds to the applicant for the approved project.

(2)   Disbursement in whole or part; timing. As the Board may direct, grant funds may be disbursed to the applicant in installments or in lump sum, and may be disbursed prior to, during or upon completion of the project, all as deemed appropriate by the Board under the project circumstances presented.

(3)   Post-disbursement requests for increases in funding amount. If after disbursement of the grant monies to the applicant it develops that the applicant needs more money for the project than the REAP grant amount disbursed by the Board, then any request for additional REAP grant money shall follow the rules in this Subchapter governing, and shall be treated as, a new application on its own merits.

(4)   Post-disbursement requests for changes in scope of approved project. If after disbursement of the grant monies to the applicant it develops that the applicant wishes to change the scope of the project from that approved by the board, then the applicant may file a written request for approval of such a change. If the applicant successfully demonstrates reasonably unforeseeable or extraordinary circumstances that in the Board's judgment and sound discretion represent a better utilization of REAP grant funds by the applicant to serve the public interest and welfare, then the Board shall approve the change in project scope. If the applicant does not make such a demonstration, then the Board shall deny the request and the applicant shall either proceed with the project as approved or abandon the project and return the grant monies to the Board within thirty days after the date of the Board's action.

(5)   Post-disbursement action regarding unexpended funding. If following completion of the project it develops that the applicant needed less money for the project than disbursed by the Board, the applicant shall return the unexpended amount to the Board.

(6)   Additional requirements. The Board may impose additional reasonable and necessary conditions or requirements for the disbursement to the applicant or expenditure by the applicant of REAP grant funds, all as may be deemed appropriate by the Board.

(c)   Completion of Project after receipt of Bid Tabulation.

(1)   All projects under $500,000 must be completed within 180 days of receipt of the bid tabulation or the date of completion on the notice to proceed, whichever is later, unless the delay is caused by circumstances outside the control of the grant recipient shown by written documentation thereof. If these provisions are not met, the funds will be deobligated and the grant will expire.

(2)   All projects over $500,000 must be completed within 365 days of the receipt of the bid tabulation, or the completion date on the notice to proceed, whichever is later, unless the delay is caused by circumstances outside the control of the grant recipient shown by written documenation thereof. If these provisions are not met, the funds will be deobligated and the grant will expire.

(3)   In the case where the documented circumstances are beyond the control of the grant recipient, an extension will be allowed based on the circumstances surrounding the project, but never beyond one (1) year of the Notice to Proceed date of completion.

[Source: Added at 13 Ok Reg 3733, eff 7-18-96 (emergency); Added at 14 Ok Reg 2788, eff 7-1-97; Amended at 16 Ok Reg 2691, eff 7-1-99; Amended at 19 Ok Reg 2531, eff 6-27-02; Amended at 27 Ok Reg 1321, eff 5-27-10; Amended at 33 Ok Reg 1954, eff 9-11-16; Amended at 34 Ok Reg 2179, eff 9-11-17]