Current through August 31, 2023
The Department will review the application, including any
contracts required to be submitted with the application, to determine whether
the costs are eligible costs for funding. (3-24-22)
01.
Eligible Costs. Eligible
costs are those determined by the Department to be: (3-24-22)
a. Necessary costs; (3-24-22)
b. Reasonable costs; and (3-24-22)
c. Costs that are not ineligible as described
in Section 041. (3-24-22)
02.
Necessary Costs. The
Department will determine whether costs are necessary by comparing the tasks
for which the costs will be incurred to the scope of the project as described
in the plan of study for facility planning documents, the project
implementation plan or work plan for nonpoint source projects, and any other
relevant information in the application that describes the scope of the project
to be funded. (3-24-22)
03.
Reasonable Costs. Costs will be determined by the Department to be
reasonable if the obligation to pay the costs is the result of or will be the
result of the applicant's compliance with applicable competitive bidding
requirements for construction and requirements for professional service
contracts, including without limitation, the requirements set forth in Sections
67-2801 et seq., 67-2320, 59-1026,
and 42-3212, Idaho Code. (3-24-22)
04.
Examples of Costs That May Be
Eligible. Examples of costs that may be eligible, if determined
necessary, reasonable and not ineligible costs include: (3-24-22)
a. Costs of salaries, benefits, and
expendable material the applicant incurs in the project except ordinary
operating expenses of local government, such as salaries and expenses of
mayors, city council members, attorneys, commissioners, board members, or
managers; (3-24-22)
b. Costs under
construction contracts bid and executed in compliance with state public works
construction laws; (3-24-22)
c.
Professional and consulting services utilizing a lump sum contract, a
negotiated hourly rate contract, a time and materials contract, or cost plus a
fixed fee contract; (3-24-22)
d.
Planning directly related to the projects; (3-24-22)
e. System evaluations; (3-24-22)
f. Financial and management capability
analysis; (3-24-22)
g. Preparation
of construction drawings, specifications, estimates, and construction contract
documents; (3-24-22)
h.
Landscaping; (3-24-22)
i. Removal
and relocation or replacement of utilities for which the applicant is legally
obligated to pay; (3-24-22)
j.
Material acquired, consumed, or expended specifically for the project;
(3-24-22)
k. A reasonable inventory
of laboratory chemicals and supplies necessary to initiate plant operations;
(3-24-22)
l. Preparation of an
operation and maintenance manual; (3-24-22)
m. Preparation of a plan of operation;
(3-24-22)
n. Start-up services;
(3-24-22)
o. Project identification
signs; (3-24-22)
p. Public
participation for alternative selection; (3-24-22)
q. Development of user charge and financial
management systems; (3-24-22)
r.
Development of sewer use or water system protection ordinance;
(3-24-22)
s. Staffing plans and
budget development; (3-24-22)
t.
Certain direct and other costs as determined eligible by the Department;
(3-24-22)
u. Costs of complying
with the Federal Water Pollution Control Act (P.L. 92-500) as amended,
33 USC Section
1251 et seq. and the Safe Drinking Water Act
( 42 U.S.C. Section
300j et seq, loan requirements applied to
specific projects; and (3-24-22)
v.
Site acquisition costs, including right of way, plant site, wastewater land
application sites and sludge disposal areas. Land purchase shall be from a
willing seller. (3-24-22)
05.
Ineligible Project Costs.
Costs which are ineligible for funding include, but are not limited to:
(3-24-22)
a. Basin or area wide planning not
directly related to the project; (3-24-22)
b. Bonus payments not legally required for
completion of construction before a contractual completion date;
(3-24-22)
c. Personal injury
compensation or damages arising out of the project; (3-24-22)
d. Fines or penalties due to violations of,
or failure to comply with, federal, state, or local laws; (3-24-22)
e. Costs outside the scope of the approved
project; (3-24-22)
f. Ordinary
operating expenses of local government, such as salaries and expenses of
mayors, city council members, attorneys, commissioners, board members, or
managers; (3-24-22)
g. Construction
of privately owned wastewater treatment facilities; (3-24-22)
h. Cost of land in excess of that needed for
the proposed project; (3-24-22)
i.
Cost of refinancing existing indebtedness; (3-24-22)
j. Engineering costs incurred without
professional liability insurance; (3-24-22)
k. Costs of condemnation; (3-24-22)
l. Reserve funds; and (3-24-22)
m. Costs incurred prior to acceptance of the
loan unless specifically approved in writing as eligible pre-award costs by the
Department. (3-24-22)
06.
Notification Regarding Ineligible Costs. Prior to providing a loan
offer, the Department will notify the applicant if certain costs are not
eligible for funding and the reasons for the Department's determination. If
such costs are included in the engineering contract, the Department will also
provide notification to the engineer. The applicant may provide the Department
additional information in response to the notice. (3-24-22)
07.
Eligible Costs and the Loan
Offer. The loan offer shall reflect those costs determined by the
Department to be eligible costs. The loan offer, however, may include estimates
of some eligible costs that have not yet been set, such as construction costs.
Actual eligible costs may differ from such estimated costs set forth in the
loan offer. In addition, loan disbursements may be increased or decreased if
eligible costs are modified as provided in Section
060. (3-24-22)
