N.J. Admin. Code § 7:1A-2.13

Current through Register Vol. 56, No. 11, June 3, 2024

Section 7:1A-2.13 - Eligible project costs

(a) Project costs shall be allowed to the extent permitted by this chapter and the loan award document. Eligible project costs shall be those costs set forth below:

1. Repair, replacement, or reconstruction of all or part of any obsolete, damaged, antiquated, or inadequately operating water supply facilities, or any obsolete or antiquated water supply interconnection or construction of a new interconnection, or the planning, design and construction of water supply facilities or public water systems to address contamination problems as identified by the Department, within the scope of the approved feasibility study, including planning costs when so approved by the Department;

2. Geological and hydraulic services;

3. Interconnection testing;

4. Engineering and inspection costs;

5. Legal expenses;

6. Financial, professional, and other estimates and advice;

7. All other such expenses as may be necessary or incidental to the administration, financing, construction, reconstruction, and completion of the project, or part thereof and the placing of same in operation except as excluded by this section.

(b) Ineligible project costs shall be those costs set forth below:

1. Land acquisition costs;

2. Project design and development costs incurred prior to November 3, 1981;

3. Any costs associated with a project for which construction commenced prior to the filing of a loan application with the Department;

4. Salaries of regular water purveyor employees, expenses for governmentally owned or purveyor owned equipment, and other such force account expenses; and

5. Interest expenses.

(c) Development and construction project contracts must be awarded in accordance with the Local Public Contracts Law, 40A:11-1 et seq., and the Local Public Contracts rules, N.J.A.C. 5:34.

(d) Borrowers shall be provided the actual costs incurred and properly documented for the total cost of the project by the contractor(s) and subcontractor(s).

(e) Project application, design and development costs shall not be reimbursed until construction contracts have been awarded.

(f) Prior to any final award of bids for construction contracts the borrower shall submit for the Department's review and approval the final construction contracts with work specifications detailing any changes made since the Department's previous design approval.

1. The borrower shall provide a tabulation of bids received and name the party to be awarded the construction contract for the project. In the event contracts are not proposed to be awarded to the contractor submitting the lowest bid, the borrower shall provide adequate justification for said award.

2. The Department reserves the right to require the borrower to readvertise the bid specifications for the project if the certifications required in (f)3 below are deemed unsatisfactory by the Department.

3. The borrower shall certify to the Department the following:

i. The borrower's compliance with the Local Public Contracts Law, 40A:11-1 et seq., and the Local Public Contracts rules, N.J.A.C. 5:34;

ii. That all contracts for the project will be awarded to the qualified, responsible and responsive bidder submitting the lowest acceptable bid; and

iii. That the bid prices included in the bid specifications are reasonably balanced.

(g) The borrower shall forward copies of the executed construction contracts and subcontracts and associated documents to the Department within 10 days of their execution.

N.J. Admin. Code § 7:1A-2.13

As amended, R.1983 d.534, effective 11/21/1983.
See: 15 New Jersey Register 1307(a), 15 New Jersey Register 1940(a).
(b)5, (f) and (g) added; under (d), "total cost" language added, "maximum specified in the loan award document" deleted; under (e), project "application" added.
As amended, R.1984 d.232, effective 6/18/1984.
See: 16 New Jersey Register 631(a), 16 New Jersey Register 1479(a).
"Eligible project costs" was formerly codified at N.J.A.C. 7:1A-2.14. (a)1: eligible project costs broadened to include interconnections and resolution of contamination problems; deleted former (a)7 concerning organization and operating expenses; (a)8 made 7, "administration" and "construction" of project inserted; (b)4: exception added; (f)1: "tabulation of bids received" and award justification added.
Emergency amendment, R.1988 d.479, effective 9/19/1988 (expires November 18, 1988).
See: 20 New Jersey Register 2470(a).
Substituted "address" for "resolve".
Adopted concurrent proposal, R.1988 d.574, effective 11/18/1988.
See: 20 New Jersey Register 2470(a), 20 New Jersey Register 3129(a).
Provisions of emergency amendment R.1988 d.479 readopted without change.
Amended by R.1992 d.252, effective 6/15/1992.
See: 24 New Jersey Register 707(a), 24 New Jersey Register 2245(a).
Reference to public water systems added; reference to Local Public Contract rules added.
Administrative correction to (f)3i.
See: 24 New Jersey Register 4368(a).
Amended by R.1997 d.223, effective 5/19/1997.
See: 29 New Jersey Register 7(a), 29 New Jersey Register 2268(a).
In (a)1, substituted "facilities" for "transmission system" following "inadequately operating water supply".