Water System Acquisition

Water System Acquisition The terms of water system acquisition must be provided to the Department prior to the acquisition to ensure cost allowability under federal regulations and applicable state law. 3. Allowable costs include the costs of: E. Purchase of a public or private Public Water System with a PWS ID number to consolidate system with Grant Applicant. F. Cost of appraisal of water system infrastructure by a licensed engineer G. Legal costs associated with negotiation of acquisition and preparation of acquisition documents H. Real property costs as outlined in these regulations, including purchase of existing water distribution system easements 4. Unallowable costs include the costs of: B. Any amount paid by the Grant recipient for eligible PWS infrastructure or real property in excess of the appraised value or the Grant recipient's record of negotiation. An amount higher than the appraised value may be found allowable if the Grant recipient provides sufficient written documentation to the Department and receives allowability approval prior to the actual acquisition.