Current through Register Vol. 48, No. 38, September 20, 2024
a) The grantee will be paid, upon request, in
accordance with General Condition Section
360.804,
(Grant Payment Schedule) hereof, for the state share of all necessary costs
within the scope of the approved project not to exceed the total grant offer
and determined to be allowable in accordance with the following
criteria:
b) Allowable project
costs.
Allocable project costs of the grantee which are reasonable
and necessary are allowable. Necessary costs may include, but are not limited
to:
1) Costs of salaries, benefits,
and expendable material incurred by the grantee for the project, except as
provided in Section 360.801(c)(7) below.
2) Costs under construction
contracts;
3) Professional and
consultant services;
4) Facility
planning directly related to the treatment works;
5) Sewer system evaluation;
6) Project feasibility and engineering
reports;
7) Preparation of
construction drawings, specifications, estimates, and construction contract
documents;
8)
Landscaping;
9) Supervision of
construction work;
10) Removal and
relocation or replacement of utilities for which the grantee is legally
obligated to pay;
11) Materials
acquired, consumed, or expended specifically for the project;
12) A reasonable inventory of laboratory
chemicals and supplies necessary to initiate plant operations;
13) Development and preparation of an
operation and maintenance manual; and
14) Project identification signs.
15) Flood plain insurance
c) Unallowable costs
Costs which exceed the total amount of the grant offer or are
not necessary for the construction of a treatment works project are
unallowable. Such costs include, but are not limited to:
1) Basin or areawide planning not directly
related to the project;
2) Bonus
payments not legally required for completion of construction in advance of a
contractual completion date;
3)
Personal injury compensation or damages arising out of the project, whether
determined by adjudication, arbitration, negotiation, or otherwise;
4) Fines and penalties resulting from
violations of, or failure to comply with, federal, state, or local
laws;
5) Costs outside the scope of
the approved project;
6) Interest
on bonds or any other form of indebtedness required to finance the project
costs;
7) Ordinary operating
expenses of local government, such as salaries and expenses of a mayor, city
council members, or city attorney, except as provided in Section 360.801(e)
below;
8) Site acquisition (for
example, sewer rights-of-way, sewage treatment plant sites, sanitary landfills
and sludge disposal areas) except as otherwise provided in Section
360.801(d)(1) below;
9) Costs for
which payment has been or will be received under another state or federal
assistance program;
10) Costs of
equipment or material procured in violation of any provisions of these General
Conditions;
11) Costs of special
funds (i.e., industry advancement funds; funds to reimburse bidding costs to
unsuccessful offerors, etc.) financed by contractors, contributions in the
construction industry for methods and materials research, public and industry
relations, market development, labor-management matters, wage negotiations,
jurisdictional disputes, defraying of all or part of unsuccessful offerors
bidding costs, or similar purposes;
12) Costs under construction contracts which
costs are incurred after the expiration of the applicable contractual
completion date, even if the contractual completion date is subsequently
extended by the grantee, unless such extension has been approved by the Agency
in accordance with General Condition Section
360.402, (Project
Changes) hereof;
13) Personal and
professional services costs (including professional engineering costs) arising
under a cost-plus-percentage of cost type of agreement (including the
multiplier contract where profit is included in the multiplier) or a
percentage-of-construction-cost type of contract;
14) Personal and professional services costs
(including professional engineering costs) when the Agency has been refused
access to the books and records of the contractor or the contractor has refused
to renegotiate a personal or professional services contract in accordance with
the provisions of General Condition Section
360.303,
(Contracts for Personal and Professional Services - Consulting Engineering
Agreements) hereof; and
15)
Increases in personal and professional services contract fees which are based
solely on a percentage of an increased construction cost notwithstanding the
contractual liabilities of the grantee under such contract.
d) Costs allowable, if approved.
Certain direct costs are sometimes necessary for the
construction of a treatment works and are allowable if reasonable and approved
by the Agency in the grant offer or a grant amendment. Such costs include, but
are not limited to:
1) Land acquired
after October 17, 1972, that will be an integral part of the treatment process
or that will be used for ultimate disposal of residues resulting from such
treatment (for example, land for spray irrigation of sewage effluent);
and
2) Rate determination studies
required pursuant to determination of user charges under General Condition
Section
360.602,
(User Charges) hereof.
e) Indirect costs
Indirect costs of the grantee shall be allowable in
accordance with an indirect cost agreement negotiated and incorporated in the
grant agreement. An indirect cost agreement must identify those cost elements
allowable pursuant to Section 360.801(a) above. Where the benefits derived from
an applicant's indirect services cannot be readily determined, a lump sum for
overhead may be negotiated based upon a determination that such amount will be
approximately the same as the actual indirect costs that may be incurred.
Procedures for development of an indirect cost agreement are included as
Appendix D to these General Conditions.
f) Disputes concerning allowable costs
The grantee shall seek to resolve any questions relating to
cost allowability or allocation at its earliest opportunity (if possible, prior
to execution of the grant agreement). Final determinations by the Agency
concerning the allowability of costs shall be conclusive unless appealed within
30 days in accordance with General Condition Section
360.306,
(Disputes) hereof.
g)
Limitation upon project costs incurred prior to grant award
Payment will not be authorized for costs incurred prior to
the date of the grant award except as in accordance with paragraphs (1), (2),
and (3) of this Section 360.801.
1)
Step 1 or 2 projects:
A) No prior approval or
prior grant award is required for Step 1 or Step 2 project work initiated on or
before October 31, 1974; payment for all such allowable costs incurred after
the approved date of initiation of construction will be authorized in
conjunction with the first award of grant assistance.
B) In the case of Step 1 or Step 2 project
work initiated on or after November 1, 1974, no payment is authorized for:
i) Step 1 costs incurred prior to the date of
approval of a plan of study by the Agency; and
ii) Step 2 costs incurred prior to the date
of approval by the Agency of a facilities plan;
iii) Payment for Step 1 or Step 2 costs
incurred after such dates of approval by the Agency will be authorized in
conjunction with the first award of grant assistance.
C) Where Step 1 or Step 2 project work is
initiated after June 30, 1975, no grant for the Step 1 or Step 2 project work
may be awarded unless such award precedes initiation of the project
work.
2) Step 3
projects: No grant offer for a Step 3 project will be awarded unless such award
precedes initiation of the Step 3 construction. Advance acquisition of major
equipment items requiring long lead times, or advance construction of minor
portions of treatment works, in emergencies or instances where delay could
result in significant cost increases, may be approved by the Agency, but only:
A) If the grantee submits a written and
adequately substantiated request for approval; and
B) If written approval by the Agency is
obtained prior to the initiation of the advance acquisition or advance
construction.
3) The
approval of a plan of study, a facilities plan, or of advance acquisition of
equipment or advance construction will not constitute a commitment for approval
of grant assistance for a subsequent treatment works project, but will allow
payment for the previously approved costs as allowable project costs only upon
subsequent award of grant assistance, if requested prior to grant award. In
instances where such approval is obtained, the applicant proceeds at its own
risk, since payment for such costs will not be made until grant assistance for
the project is awarded.
h) Sewage collection systems.
1) No project costs will be allowed for the
construction of any sewage collection system until the Agency has made a
determination in writing prior to initiation of construction that:
A) There is a waste treatment works of
sufficient existing or planned capacity to adequately treat the sewage
collected by the proposed sewage collection system; and
B) That such project work is either for a new
sewage collection system in a previously unsewered community and that the
community was in existence on October 18, 1972, or is for replacement or major
rehabilitation of an existing sewage collection system and such replacement or
rehabilitation has been determined by the Agency to be necessary in accordance
with the provisions of General Condition Section
360.202,
(Sewer System Evaluation and Rehabilitation) hereof.
2) No project costs will be allowed for the
replacement or major rehabilitation of an existing sewage collection system if
the sewage collection system average dry weather flow design capacity exceeds
150 percent of the average dry weather flow design capacity of the sewage
collection system existing on October 18, 1972.
3) Project costs allowable for the
construction of new sewage collection systems are limited to the design and
construction of a system with flow design capacity through the system equal to
150 percent of the waste waters originating from the community as it existed on
October 18, 1972.