Determination Of Eligibility Of Costs

The Department will review the application, including necessary contracts to be submitted with the application, to determine whether the costs are eligible costs for funding. (7-1-26) 01. Eligible Costs. Eligible costs are those determined by the Department to be: (3-24-22) a. Necessary; (7-1-26) IDAHO ADMINISTRATIVE CODE IDAPA 58.01.12 – Rules for Administration of Department of Environmental Quality Wastewater & Drinking Water Loan Funds Section 041 Page 13 b. Reasonable; and (7-1-26) c. Are not ineligible as described in Section 041. (7-1-26) 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 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. (7-1-26) 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 requirements for competitive bidding for construction and professional service contracts, including without limitation, the provisions in Sections 67-2801 et seq., 67-2320, 59-1026, and 42-3212, Idaho Code. (7-1-26) 04. Examples of Costs That May Be Eligible. Examples of costs that may be eligible, if determined necessary and reasonable: (7-1-26) 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. Start-up services; (3-24-22) n. Project identification signs; (3-24-22) o. Public participation for alternative selection; (3-24-22) p. Development of user charge and financial management systems; (3-24-22) IDAHO ADMINISTRATIVE CODE IDAPA 58.01.12 – Rules for Administration of Department of Environmental Quality Wastewater & Drinking Water Loan Funds Section 042 Page 14 q. Development of sewer use or water system protection ordinance; (3-24-22) r. Staffing plans and budget development; (3-24-22) s. Certain direct and other costs as determined eligible by the Department; (3-24-22) t. Costs of complying with the Clean Water Act 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 (7-1-26) u. Site acquisition costs, including right of way, plant site, wastewater land application sites and sludge disposal areas. Land purchase must be from a willing seller. (7-1-26) 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 systems; (7-1-26) 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; (7-1-26) m. All costs related to assessment, defense and settlement of disputes; and (7-1-26) n. 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. The applicant may provide the Department with additional information in response to the notice. (7-1-26) 07. Eligible Costs and the Loan Offer. The loan offer will reflect those costs determined by the Department to be eligible costs. The loan offer, however, may include estimates of some eligible costs, such as construction costs. Actual eligible costs may differ from 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. (7-1-26)