All DWSELF loan repayments are subject to the following requirements:

All DWSELF loan repayments are subject to the following requirements: 3.6.1.1 Interest on amounts paid to the loan recipient will commence on the original construction contract completion date. 3.6.1.2 The amount of interest accrued between the original construction contract completion date and the initiation of the repayment process will be added to the final allowable project costs to determine the principal amount to be repaid by the loan recipient. 3.6.1.3 The repayment period will be from the time of transmittal of the final loan repayment agreement to the loan recipient to the date five (5) years after project completion, or sooner if so requested by the loan recipient. 3.6.1.4 Repayments are to be made by counties on a semi-annual basis through homestead exemption annual tax loss reimbursement withholdings, by municipalities on a monthly basis through state sales tax withholdings if adequate to provide such repayments, and by all other loan recipients through submission of monthly payments in accordance with state law, and must commence no sooner than 90 days after and no later than one year after final construction observation by the Department staff. 3.6.1.5 The repayment interest rate and the frequency of interest compounding will be established in the DWSELF loan agreement and repayment agreement. Source: Miss. Code Ann. § 41-3-16(3)(b) This Page Intentionally Left Blank IV. APPENDICES APPENDIX A Determination of Eligible and Allowable Costs CONTENTS Page A. General B. Construction/Repairs 1. Allowable 2. Unallowable C. Equipment, Materials and Supplies 1. Allowable 2. Unallowable D. Change Orders E. Professional Services 1. Allowable 2. Unallowable F. Claims 1. Allowable 2. Unallowable G. Mitigation 1. Allowable 2. Unallowable H. Real Property 1. Allowable 2. Unallowable I. Miscellaneous Costs 1. Allowable 2. Unallowable J. Project Income From Bid Bond Forfeitures, Liquidated Damages, and Interest on Deposits of DWSELF Loan Payments A. General The terms "eligible" and "allowable" are often used interchangeably. Although technically a difference exists between these terms as defined below, their synonymous use will not influence the outcome of a cost determination. Eligible costs are those costs in which DWSELF loan participation is authorized pursuant to applicable statute. Allowable costs are those project costs that are eligible; are only for projects or portions thereof that meet the definition of an emergency as established in Section I.C.(14) of this regulation; are reasonable, necessary, allocable to the project, within the established project scope and budget, in conformance with this DWSELF regulation and are approved as allowable by the Department. An example best illustrates the difference between the two terms. Emergency improvements to drinking water systems, including construction of new drinking water systems or repair of existing drinking water systems, are eligible. Building of roads, fire fighting vehicles, wastewater treatment projects, etc. are not eligible. Within a generic eligible category of projects, costs may be allowable or unallowable for loan participation. For example, the cost of building a distribution line is eligible, but such costs incurred after the thirty-day deadline established in Section III.C.(9)(e) of this regulation are unallowable. In addition to and/or the absence of a specific cost item described in the DWSELF regulations, to be allowable under the DWSELF loan program, costs must meet the following general criteria: (1) Be necessary and reasonable for the proper and efficient administration and construction of the project, be allocable to and within the defined scope of the project, and not be a general expense required to carry out the overall responsibilities of the loan recipient. (2) Be authorized or not prohibited under state or local laws or regulations. (3) Conform to any limitations or exclusions set forth in state laws or other governing limitations as to types or amounts of cost items. (4) Be consistent with policies, regulations, and procedures that apply uniformly to both state assisted and other activities of the loan recipient. (5) Be accorded consistent treatment through the application of generally accepted accounting principles appropriate to the circumstances. (6) Not be allocable to, or included as, a cost of any other Federally or State financed program in either the current, prior, or future period. (7) Be approved as allowable by the Department. (8) Be within the scope of the project and per the loan agreement. (9) Eligible costs will be determined without regard to any previous DWSELF or DWSIRLF loan funding provided for facilities to be replaced, upgraded, or rehabilitated, except as described in Section II.D.(6) of this regulation. (10) Are necessary for the immediate preservation of public health or the immediate restoration of a condition of usefulness of a public water system, or as otherwise allowed in Section II.B. of this regulation. B. Construction/Repairs (1) Allowable costs include: (a) The costs of subagreements for construction/repair work on drinking water systems improvements. These subagreements are the prime contracts (including any subcontracts) for such construction/repair work and any necessary contracts for purchase of equipment, materials and supplies by the loan recipient. Should any costs for such contracts be incurred prior to loan offer, said costs will be allowable provided that the loan recipient has requested and obtained Department approval of said costs, and the loan agreement budget period includes the time period these costs are incurred. (b) Drinking water distribution lines on drinking water distribution projects which provide drinking water to previously unserved areas, service lines between the public water main and the water meter are also allowable. (c) The costs of drinking water distribution system rehabilitation (including rehabilitation of eligible service lines) necessary to eliminate water loss or to preserve/restore the safety or integrity of the system, as determined in a facilities plan. (d) The cost of water system capacity equal to all water distribution system leaks that will remain in the system, as determined in a facilities plan. (e) Drinking water systems which serve industrial or commercial users when such works are owned by counties, incorporated municipalities, districts, or other water organizations that have been granted tax exempt status under either federal or state law. (f) In the design, construction and renovation of drinking water systems, buildings that house or protect water production, treatment or distribution facilities. Administration buildings are unallowable. (2) Unallowable costs include: (a) Construction/repair and construction/repair related costs which are incurred after the Department approved eligible contract completion date (including approved time extension change orders), unless approved by the Department pursuant to Section III.C.(6)(e) of this regulation. (b) Drinking water systems which serve federal users exclusively, or almost exclusively. (c) The use of DWSELF funds to finance the expansion of any public water system in anticipation of future population growth. (d) Bonus payments that are part of the construction contract for completion of building before a contractual completion date, unless required by state law. C. Equipment, Materials and Supplies (1) Allowable costs include: (a) The cost of a reasonable inventory of chemicals and supplies necessary to initiate plant operations and laboratory items necessary to conduct tests required for plant operation. (b) The costs of necessary and reasonable safety equipment, provided the equipment meets applicable federal, state, local or industry safety requirements. (c) Flow metering devices used for billing or treatment purposes. The costs of constructing or installing water flow metering devices used for monitoring and/or billing intermunicipal or other flows are eligible costs. Meters constructed or installed for the primary purpose of serving and billing individual residential, commercial or industrial users and back flow preventers are also eligible. (d) Computers, display monitors, and computer software which are designed into the control system for the daily operation of the water system. Computers are also allowable if they are to be used for the operational control and analysis of the water system. The cost of computer software specifically designed for the operation and maintenance (including the cost of developing unique operating programs for the specific loan funded project) of the treatment works is also allowable for loan participation. (e) The cost of specialized mobile equipment for the operation of the water system, or for the maintenance of equipment. These items include, but are not limited to: (i) Portable stand-by generators. (ii) Portable emergency pumps to provide "pump-around" capability in the event of pump station failure or pipeline breaks. (2) Unallowable costs include: (a) The cost of vehicles for the transportation of the loan recipient's employees, including buses, trucks, cars, motorcycles, ATVs, golf carts, bicycles, etc. (b) Items of routine "programmed" maintenance such as filters, couplings, hoses, belts, etc. (c) Radios, televisions, VCRs, camcorders, and other items of a similar nature. (d) The cost of shop equipment. (e) The costs of distribution system maintenance equipment. (f) (Deleted, effective 10/12/2000) (g) Replacement parts. (h) The cost of furnishings, office equipment, and maintenance equipment, including chairs, desks, file cabinets, typewriters, coffee tables, telephones, office supplies, calculators, copiers, book cases, shelves and lamps, etc. (i) Ordinary site and building maintenance equipment such as lawn mowers, rakes, shovels, brooms, picks, hedge trimmers, and other such equipment. (j) Hand tools such as screwdrivers, pliers, socket wrenches, electric drills or saws, etc. (k) Computers for non-operational purposes, such as for the scheduling of equipment maintenance and replacement and for accounting and billing services. D. Change Orders (1) Change orders are allowable provided the costs are: (a) Necessary and reasonable. (b) Within the scope of the project. (c) Not caused by the loan recipient's mismanagement. (d) Not caused by the loan recipient's vicarious liability for the improper actions of others. (e) In conformance with the DWSELF regulations. (2) Provided the above requirements are met, the following are examples of allowable change orders. (a) Construction costs resulting from defects in the plans, design drawings and specifications, or other contract documents only to the extent that the costs would have been incurred if the contract documents on which the bids were based had been free of the defects, and excluding the costs of any rework, delay, acceleration or disruption caused by such defects. Additional costs to correct defects (i.e., errors and omissions in the contract documents) and other costs caused by the impact of such defects on other portions of the project are not allowable. For example, if the construction drawings had omitted piping from a well to a water tank, and the engineer or contractor detected this before building was undertaken, the cost of a change order to include the piping would be an allowable cost, because: (i) the piping should have been included in the original bid, (ii) no additional construction or rework was required (beyond what would have been required if the work had originally been included), and (iii) there was no cost impact on other portions of the project (since construction work had not begun). If this omission had been realized after substantial construction work had been completed, and therefore required rework, delay, or additional work beyond that which would have been required by defect free drawings, the cost of the piping would still have been allowable, but the additional cost of rework or delay would have been unallowable. The additional cost is measured as the difference between the cost which would have been included in the bid based on defect free drawings and the actual cost of the change order. For example, if a concrete tank had been constructed and was later found to be at an incorrect elevation due to an error in the design drawings and if it was necessary to demolish the tank and reconstruct it at the correct elevation, the entire change order would be unallowable, except for differences in excavation costs. If additional excavation was required to construct the tank at the correct elevation (i.e., the incorrect elevation was too high), the cost of the additional excavation would be allowable. However, if too much excavation had been undertaken, and fill was required to enable the tank to be constructed at the correct elevation (i.e., the incorrect elevation was too low), both the entire change order and the cost of the unnecessary excavation and additional fill would be unallowable. In these cases, the loan recipient must determine whether to seek remedial action or compensation from the responsible parties, however, such action or decision not to take such action will have no effect on loan allowability. Regardless of the allowability of construction costs to correct errors and omissions, in no case are additional engineering, legal, observation, or other costs allowable, except for the cost of observing allowable construction work, to the extent that such observation costs would have been incurred to observe the same construction if such construction had originally been included in defect free drawings. (b) Equitable adjustments for differing site conditions. E. Professional Services The term professional services refers to engineering, legal, administrative, and similar services. Should any costs for professional services be incurred prior to loan offer, these costs will be allowable provided that the loan recipient has requested and obtained Department approval of such costs, and the loan agreement budget period includes the time period that these costs are incurred. (1) Allowable costs include: (a) Pre-award costs. These costs include all engineering and other costs that are incurred in applying for the loan, including, but not necessarily limited to: (i) Preparing the facilities plan, if required by the Department. (ii) Public notification and public hearings. (iii) Preparing the plans, specifications, and contract documents. (iv) Value engineering. (v) Preparing the draft user charge ordinance/corporate resolution and draft user charge system. (vi) Preparing interlocal agreements necessary for the project. (vii) Surveys and all other work needed to obtain clearance or permits from all intergovernmental review agencies. (viii) Preparing the loan application, preparing applications for permits required by federal, state or local regulations or procedures. (ix) Compliance with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act, if required. (b) The costs of services incurred during the advertisement, award and construction of a project to insure compliance with state purchasing laws and to insure that it is built in conformance with the design plans and specifications. These services are primarily engineering and construction management services provided during the advertisement, award and building of the project, including observation services, materials testing (e.g., concrete strength, soil compaction, etc.) required by the specifications, inspecting and expediting the delivery of equipment and material purchased directly by the loan recipient, reviewing shop drawings and record drawings, preparing change orders, payment processing, etc. (c) The costs of legal, engineering, and other services incurred by the loan recipient in deciding procurement protests and defending their decisions in protest appeals under Appendix H are allowable regardless of the outcome of the protest, provided there was not an attempt by the loan recipient to violate or circumvent state purchase laws. (d) The cost of development of an operation and maintenance manual. (e) Start-up services for onsite training of operating personnel in operation and control of specific treatment processes, laboratory procedures, and maintenance and records management, provided these costs are incurred prior to the end of the 30 day period established in Section III.C.(9)(e) of this regulation. (f) Professional liability insurance premiums for a provider of professional services only for insurance which the provider maintains in connection with the general conduct of its business. The types and extent of coverage must be in accordance with sound business practice, and the rates and premiums must be reasonable under the circumstances, but only as part of the contractor's indirect cost agreement. (g) Administrative Services associated with the construction/repair project and administering the DWSELF loan. (h) The cost of services, other than engineering services during construction/ repairs, such as railway or highway flagmen or utility or highway inspectors, required during the building of the project, provided that: (i) The agency responsible for the affected railway, highway, or utility requires such services for all parties conducting similar types of work, regardless of the source of construction funding for the project, or the services are required by law. (ii) The project work requiring such services is allowable and is included in the scope of the approved project. (iii) The cost of such services has not been included in the construction contractor's bid price. (iv) The cost of such services is incurred directly by the loan recipient. (v) The cost is reasonable. (2) Unallowable costs include: (a) The cost of ineligible real property. (b) Engineering, observation, or other services necessary to correct defects in a facilities plan, design plans and specifications, or other contract documents, except as provided in Appendix A, Section D.(2)(a) above. (c) Public liaison services. (d) The cost of local travel (i.e., commuting expenses) between living quarters and the construction site for persons working at the site. (e) The cost of insurance (e.g., for a specific project), beyond that normally carried by the contractor. F. Claims (1) Allowable costs, provided the costs are properly documented, incurred and requested prior to the end of the 30 day period established by Section III.C.(9)(e) of this regulation, include: (a) Change orders to the construction/repair contract as a result of settlements, arbitration awards, or court judgements, to the extent that they would have been allowable had there not been a claim. (b) The costs of assessing the merits of, negotiating, or defending against a claim against the loan recipient are allowable, regardless of the outcome, provided that the matter under dispute is not the result of fraudulent or illegal actions or mismanagement on the part of the loan recipient. (c) Alterations in engineering, legal, etc. contracts as a result of settlements, arbitration awards, or court judgements are allowable to the same extent that they would have been allowable had there not been a claim. (2) Unallowable costs include: (a) Claims arising from work outside the scope of the loan. (b) Claims resulting from fraudulent or illegal activities. (c) Claims resulting from mismanagement by the loan recipient. (d) Claims resulting from the loan recipient's vicarious liability for the improper action of others. (e) The cost of settlements, arbitration awards or court judgements over the allowable costs as established in this regulation. G. Mitigation (1) Allowable costs include: (a) Costs necessary to mitigate only direct, adverse, physical impacts resulting from construction/repair of the water system. (b) The cost of reasonable site screening necessary to comply with facilities plans and necessary to screen adjacent properties. (c) The cost of groundwater monitoring facilities necessary to determine the possibility of groundwater deterioration, depletion or modification resulting from construction/repair of the water system. The extent of the allowable costs for groundwater monitoring facilities is decided on a case- by-case basis and depends on the size and complexity of the project and the present and potential future use of the groundwater. (2) Unallowable costs include: (a) The costs of solutions to aesthetic problems, including design details which require expensive building techniques and architectural features and hardware, that are unreasonable or substantially higher in cost than approvable alternatives and that neither enhance the function or appearance of the treatment works nor reflect regional architectural tradition. (b) The cost of land acquired for the mitigation of adverse environmental effects identified pursuant to an environmental review. H. Real Property (1) Allowable costs include: (a) The cost of land acquired in fee simple title or by easement, at fair market value, which is integral to water system projects, for only; (i) The cost of land acquired for the construction of a treatment facility; (ii) The cost of land acquired for a consolidation project; (iii) The cost of land acquired to protect the source water of the system from contamination; and (iv) The cost of easements and/or rights-of-way for distribution lines. (b) The cost associated with the preparation of the treatment works site before, during and, to the extent agreed on in the loan agreement, after building. These costs include: (i) The cost of demolition of existing structures on the treatment works site (including rights-of-way) if building cannot be undertaken without such demolition. Demolition of existing structures on the treatment works site (including rights-of-way), when not required for building the project, will be considered to be an allowable cost only if the existing structures constitute a real and present hazard to safety, public health, or water quality, and when the hazard can best be abated by the removal of the existing structures. (ii) The cost of removal, relocation or replacement of utilities, provided the loan recipient is legally obligated to pay for such as a result of the DWSELF project under state or local law. (iii) The cost of restoring streets and rights-of-way to their original condition. The need for such restoration must result directly from the construction/repair of the DWSELF project and is generally limited to repaving the width of trench. (c) The cost of complying with state law in the acquisition of eligible property. (2) Unallowable costs include: (a) Any amount paid by the loan recipient for eligible land in excess of just compensation, based on the appraised value, the loan recipient's record of negotiation or any condemnation proceeding. An amount higher than the determination of just compensation may be found allowable as a result of an administrative settlement if the loan recipient provides sufficient written documentation to the Department prior to the actual acquisition. Such an administrative settlement may be appropriate where negotiated purchase is unsuccessful and where a condemnation action may entail a long delay or excessive cost. Administrative settlements may be used when they are reasonable, prudent and in the public interest. Documentation may include evidence of purchase negotiations, real property sales data, estimated court settlement and legal costs based on previous condemnation proceedings. (b) Removal, relocation or replacement of utilities located on land by privilege, such as a franchise, unless the loan recipient is required to pay such costs under state or local law. (c) The cost of acquiring all or part of an existing publicly or privately owned drinking water treatment works. (d) The demolition of an existing structure for the convenience of the owner as a means of increasing property value or property use is unallowable. I. Miscellaneous Costs (1) Allowable costs include: (a) The costs the loan recipient incurs for equipment rental and material cost necessary for the construction/repair project. (b) Unless otherwise specified in this regulation, the costs of meeting specific legal requirements directly applicable to the project. (c) Reasonable royalties associated with the procurement of the right to use, or the rights in, a patented product, apparatus, or process are allowable costs, provided that they are: (i) necessary, and (ii) based on a published fee schedule or on reasonable fees charged to other users under similar conditions. (d) Costs of loan recipient employees attending training workshops/seminars that are necessary to provide instruction in operational, administrative, fiscal or contracting procedures required to complete the construction of the water system. To be allowable, attendance at such training workshops or seminars may only occur after loan offer and before the end of the loan agreement budget period. (e) Any administration fee charged to the loan recipient by the Department, as established in the Intended Use Plan under which the project is funded. (f) Cost of a reasonable project sign. (2) Unallowable costs include: (a) The salaries and benefits for the loan recipients employees. (b) Ordinary operating expenses of the loan recipient including salaries and expenses of elected and appointed officials and preparation of routine financial reports and studies. (c) Administrative, engineering and legal activities associated with the creation of special departments, agencies, commissions, regions, districts, associations, or other entities. (d) Approval, preparation, issuance and sale of bonds or other forms of indebtedness required to finance any portion of the project and the interest on them. (e) Personal injury compensation or damages arising out of the project. (f) Fines and penalties due to violations of or failure to comply with federal, state or local laws, regulations or procedures, and related legal expenses. (g) Costs outside the scope or budget period of the approved project. (h) Costs for which payment has been, or will be, received from another state or federal source. (i) Operation and maintenance costs of the water system, which includes but is not limited to labor, utilities, chemicals, materials and supplies, monitoring and testing, equipment replacement, etc. (j) Periodic payment of royalties for the right to operate under a patent are considered operating costs and are unallowable for loan participation. (k) Costs for travel, by the loan recipient, unless included under an indirect cost agreement, and except as allowed under I.(1)(d) above. (l) Administration Building. J. Project Income From Bid Bond Forfeitures, Liquidated Damages, and Interest on Deposits of DWSELF Loan Payments: (1) Bid bond forfeitures will have no effect on the determination of allowable and unallowable costs. The loan recipient must make the determination of whether or not a bid bond will be forfeited. (2) The amount of liquidated damages collected will have no effect on the determination of allowable and unallowable costs, except as described by Section III.E.(5)(e) of this regulation.. (3) Interest income on DWSELF payments to loan recipients will have no effect on the determination of allowable and unallowable costs. APPENDIX B Procurement Requirements for DWSELF Loan Recipients In the procurement of all repairs, construction, equipment, materials, supplies, professional services and non-professional services and all other costs related to the DWSELF project, all loan recipients (including water associations) must comply with State Purchasing Laws as they apply to local governments. The procurement and conduct of all professional engineering and land surveying services must also be in accordance with the Code of Conduct and other guidance and interpretations established by the Mississippi State Board of Registration for Professional Engineers and Land Surveyors. The procurement of all construction contracts must also be in accordance with the rules and regulations of the State Board of Contractors and other guidance and interpretations established by the Mississippi State Board of Contractors. All loan recipients (including water associations) must submit a procurement certification, as required by the Department staff, indicating that all of the above referenced requirements have been met. Should it be determined that any of the above procurement requirements are violated, the Department may determine that the related costs are unallowable and may require repayment of all DWSELF Loan funds paid for such costs, in accordance with Section III.E.(6) of this regulation. This Page Intentionally Left Blank APPENDIX C Debarment, Suspension and Violating Facilities A. Debarment and Suspension Loan recipients are prohibited from entering into contractual agreements with individuals, businesses, organizations, or any other entities that have been debarred or suspended by the U. S. Environmental Protection Agency, any other federal agency, state agency or by the Department. Entities debarred or suspended by the federal agencies are identified in the General Services Administration (GSA) publication entitled "List of Parties Excluded from Federal Procurement or Nonprocurement Program." Loan recipients are responsible for ensuring that prime contractors utilized on the project are not on the federal or state debarment lists. Likewise, prime contractors are responsible for ensuring that subcontractors utilized on the project are not on the federal or state debarment lists. Anyone may contact the Board Chairman concerning the existence of a cause for debarment or suspension. The Board Chairman may refer the matter to the State Attorney General or other appropriate office for further investigation. If, after review or investigation, the Board Chairman reasonably believes that a cause for debarment exists, the Board Chairman may propose debarment or suspension and may initiate procedures similar to, but not necessarily identical to, federal regulation 40 CFR Part 32: Debarment and Suspension Under EPA Assistance Programs. Such above described debarment or suspension actions will not affect existing executed contractual agreements, unless such agreements have been terminated or suspended under the terms of the agreement by the loan recipient. B. Violating Facilities No loan will be awarded to any loan applicant which owns or makes use of any facility that is on EPA's "List of Violating Facilities", or its successor, unless such loan will remedy the problem which resulted in the facility being placed on the list. Loan Recipients are prohibited from entering into contractual agreements with individuals, businesses, organizations, or any other entities that are in violation of the Safe Drinking Water Act, unless the agreement will remedy the problem which caused the violation. Such entities are identified in the "List of Violating Facilities". This Page Intentionally Left Blank APPENDIX D DWSELF Disputes Procedures Only DWSELF loan recipients may submit a notice of dispute (disagreement) with a decision made by the Department. The following procedures will be used to resolve disputes between the loan recipient and the Department. (1) The loan recipient must submit a written notice of dispute with a Department decision, including a summary of the dispute and reasons for why the loan recipient believes the Department decision should be reversed. (2) The Department staff will then render a written decision on the dispute and will include reasons for the decision. (3) Should the loan recipient desire to appeal the Department staff decision, a request for an informal hearing must be received by the Department within 30 days after the date of the Department staff decision. Upon receipt of such a request, an informal hearing will be held with staff members, as designated by the Board Chairman, and the affected parties. The Board Chairman, or his designee, will render a decision on the appeal as a result of the informal hearing. (4) Should the loan recipient desire to appeal the above informal hearing decision, a request for a formal hearing before the Local Governments and Rural Water Systems Improvements Board must be received by the Department within 30 days after the date of such decision. Upon receipt of such a request, the Board will hold a formal hearing to consider the matter and will render a decision. (5) Appeals of the above formal hearing decision may be made to the Chancery Court in accordance with state law. This Page Intentionally Left Blank APPENDIX E Waste, Fraud and Abuse It is the loan recipient's responsibility for preventing, detecting, and prosecuting waste, fraud, abuse, and all other corrupt practices which occur in relation to the DWSELF loan project. If the loan recipient becomes aware of allegations, evidence, or the appearance of corrupt practices, the loan recipient must: (1) Immediately inform the Department in writing. (2) Promptly pursue available state and local legal, administrative, and contractual remedies. The Department may disallow costs under the DWSELF loan agreement where it is determined that such costs are related to waste, fraud, abuse, or other corrupt practices. The Department may also require repayment of DWSELF loan funds paid for such costs in accordance with Section III.E.(6) of this regulation. This Page Intentionally Left Blank APPENDIX F DWSELF Loan Recipient Accounting and Auditing Requirements All DWSELF loan recipients must maintain project accounts in accordance with generally accepted government accounting standards, as defined by the Guidelines of the Municipal Accounting and Audit Manual, as prescribed by the State Auditor's Office. Charges to the project account must be properly supported, related to eligible construction/repair costs, and documented by appropriate records. These project accounts must be maintained as separate accounts. All contracts for professional services, construction, equipment, and supplies must include an access to audit clause which gives the Department and its representatives access to and the right to audit, inspect, copy and examine books, financial records and other documents relating directly to the receipt and disbursement of DWSELF funds. This Page Intentionally Left Blank APPENDIX G Intergovernmental Review Process The following outlines the Board's requirements for compliance with the Intergovernmental Review Process for Drinking Water Systems Emergency Loan Fund (DWSELF) projects in Mississippi. These actions must be taken and an Intergovernmental Review Certification (hereinafter Certification) submitted as part of the DWSELF loan application package. The Intergovernmental Review Agencies (IGR) are as follows: (1) Department of Archives and History (For Archaeological/Cultural Resources Review); (2) Natural Heritage Program (For Vegetative/Wildlife Survey); (3) Army Corps of Engineers, Regulatory Functions Branch (For Wetlands and Navigable Waterway Crossing Review); (4) U. S. Fish and Wildlife Services (Jackson, Harrison, and Hancock County Projects only, for Coastal Barriers Resources Act Review); and (5) U. S. Forest Service (For Wild and Scenic Rivers). Loan Application When completing the Certification form, the applicant/loan recipient should mark the first certification if the proposed project will consist of only construction/repair work on previously disturbed sites, easements, and rights-of-way. If this certification is marked accurately, then no further intergovernmental review is necessary. If there are portions of the project that will affect previously undisturbed sites, easements, or rights-of-way, during preparation of the DWSELF loan application package the appropriate intergovernmental review agencies must be consulted, by telephone, or other communication, about the proposed project area concerning the existence of any known or possible archaeological/cultural resources sites, endangered vegetation/wildlife, wetlands, navigable waterway crossings, wild and scenic rivers impact or coastal barriers resources impact, and their concurrence or comments noted on the Certification. If any of the intergovernmental review agencies have comments on the project, the applicant/loan recipient must attach a summary of those comments and the actions necessary to address those comments, including a schedule for completing the required actions, to the Certification, which must be included as part of the DWSELF loan application package. It will be the applicant/loan recipient's responsibility to take all actions necessary to satisfy the IGR comments and obtain concurrence in the project prior to awarding contracts for construction/repair for project portions under comment. This Page Intentionally Left Blank APPENDIX H DWSELF Procurement Protest Procedures This Appendix sets forth the process for the resolution of procurement protests filed with the loan recipient by an adversely affected party. The Loan Recipient's protest procedures must include the requirements of this Appendix. (1) Prior to advertisement for bids or proposals, the loan recipient must establish its own procedures for prompt consideration of initial protests concerning solicitations or contract awards. A "protest" is a written complaint concerning the loan recipient's solicitation or award of a contract. The protest must be filed with the loan recipient by a party with a direct financial interest adversely affected by a loan recipient's procurement action, and must be filed in accordance with and within the time frame established by the loan recipient's protest procedures. (2) Any party which transmits any document concerning the protest during the course of a protest and protest resolution must simultaneously furnish all other affected parties and the Department with a copy of all documents in the transmittal. (3) Upon receipt of a protest, the loan recipient must make a determination on the protest in accordance with the loan recipient's protest procedures within thirty (30) calendar days after such protest, or sooner if so required by the loan recipient's procurement protest procedures. (4) The party with a direct financial interest adversely affected by a loan recipient's determination of the protest may appeal such a determination only through the appropriate court of competent jurisdiction, provided such appeal is initiated within seven (7) calendar days after receipt of the determination. (5) Any delay due to a protest or protest resolution will not relieve the loan recipient of the requirement to meet the project schedule established in the loan agreement, nor will such delays prevent the Department from pursuing the remedies for default established in the loan agreement. This Page Intentionally Left Blank APPENDIX I Related Laws and Regulations The loan recipient must comply with all related laws and regulations during the planning, design, construction, and operation of the project, including the following. The listing below does not relieve the loan recipient from the responsibility of compliance with all related laws and regulations, whether listed below or not. - Federal "Safe Drinking Water Act" (42 U.S.C. 300et. seq.). Public Law 93-523. - "National Interim Primary Drinking Water Regulations", Environmental Protection Agency, Water Programs, Federal Register 40, No. 246, December 24, 1975, 59566 - 59574. - "Secondary Maximum Contaminant Levels", Environmental Protection Agency, Water Programs, Federal Register 42, March 31,1977, 17144 - 17146. - "Mississippi Safe Drinking Water Law of 1976", Section 41-26-1 through 41-26- 21, Mississippi Code of 1972, annotated. - "Primary Drinking Water Regulations", Mississippi State Board of Health Environmental Regulations, Division 300 - Water Supply, Part 301, Public Water Systems. - "Municipal and Domestic Water and Wastewater System Operator's Certification Act of 1986", Section 21-27-201 through 21-27-221, Mississippi Code of 1972, annotated. - Regulations Governing the Certification of Municipal and Domestic Water System Operators", Mississippi State Board of Health Environmental Regulations, Division 300 - Water Supply, Part 302.