N.J. Admin. Code § 7:22-5.11

Current through Register Vol. 56, No. 19, October 7, 2024

Section 7:22-5.11 - Miscellaneous costs

(a) Allowable miscellaneous costs include:

1. For loan awards made in State Fiscal Year 1996 and later and for loan awards made in State Fiscal Year 1995 and earlier for which final payment has not been received under Fund or Trust loan agreements, the costs of salaries, benefits and expendable materials the recipient incurs for the project. However, the allowable portion of these administrative costs, including the administrative costs listed in (a)3, 4, 5 and 6 below, will be limited to three percent of the low bid building cost. If a project receives a post-construction supplemental Fund or Trust loan for costs arising from differing site conditions, the allowable administrative costs for the portion of the project funded by the post-construction supplemental Fund or Trust loan is limited to three percent of the allowable building costs due to differing site conditions. The three percent limit may be exceeded only in instances where the Department, in the case of a Fund loan, and the Trust, in the case of a Trust loan, approve a greater amount through line item adjustments in accordance with 7:22-3.26 or 4.26. For loan awards made prior to State Fiscal Year 1996 and for which final payment has been made to the project sponsor, administrative cost funding for this paragraph and (a)3 and 4 below for up to one percent is allowable.

2. The costs of additions to environmental infrastructure facilities that were assisted under the Federal Water Pollution Control Act Amendments, the Federal Safe Drinking Water Act Amendments, the Trust Act, the Pinelands Infrastructure Trust Bond Act of 1985 ( P.L. 1985, c.302) or its amendments and/or the Bond Acts and that fail to meet the performance standards as specified in the Fund or Trust loan agreement, provided:

i. The project is identified on the Project Priority List as a project for additions to environmental infrastructure facilities that have received previous State or Federal funds;

ii. The loan application for the additions includes an analysis of why the environmental infrastructure facilities cannot meet the specified performance standards; and

iii. The additions could have been included in the original grant or loan award; and

(1) Are the result of one of the following:

(A) A change in the specified performance standards required by the State or the United States Environmental Protection Agency (EPA);

(B) A written understanding between the Regional Administrator of EPA and grantee prior to or included in the original Federal grant award;

(C) A written understanding between the Department and the recipient prior to or included in the original Fund loan award;

(D) A written understanding between the Trust and the recipient prior to or included in the original Trust loan award;

(E) A written understanding between the Pinelands Commission and the recipient prior to or included in the original Pinelands grant or loan award;

(F) A written direction by the Regional Administrator of EPA or the Department or the Pinelands Commission or the Trust to delay building part of the environmental infrastructure facilities; or

(G) A major change in the environmental infrastructure facilities' design criteria that the recipient cannot control; or

(2) Meet all of the following conditions:

(A) The environmental infrastructure facilities have not completed their first full year of operation;

(B) The additions are not caused by the recipient's mismanagement or the improper actions of others;

(C) The costs of rework, delay, acceleration or disruption that are a result of building the additions are not included in the loan; and

(D) The loan does not include an allowance for facilities planning or design of the additions.

iv. This provision applies to failures that occur either before or after the initiation of operation. This provision does not cover environmental infrastructure facilities that fail at the end of their design life.

3. Costs of royalties for the use of or rights in a patented process or product with the prior approval of the Department or the Trust, as appropriate.

4. Costs of recipient's employees attending training workshops/ seminars that are necessary to provide instruction in administrative, fiscal or contracting procedures required to complete the construction of the environmental infrastructure facilities, if approved in advance by the Department or the Trust, as appropriate.

5. Costs of bond counsel, financial advisor, bond issuance and other expenses incidental to the approval, preparation and sale of bonds, notes or obligations of the project sponsor that are necessary to finance the project and the interest on the bonds, notes or obligations.

6. Costs of fees for permits required for the building of the project.

7. Costs for the construction of that portion of the house connection (service lateral) owned by the project sponsor and to which the project sponsor has access by easement for maintenance and repair.

8. Costs associated with the purchase and installation of security measures, including, but not limited to, such items as fencing, cameras, lighting or video equipment.

(b) Unallowable miscellaneous costs include:

1. Ordinary operating expenses of the recipient including salaries and expenses of elected and appointed officials and preparation of routine financial reports and studies;

2. Preparation of applications and permits required by Federal, State or local regulations or procedures;

3. Administrative, engineering and legal activities associated with the establishment of special departments, agencies, commissions, regions, districts or other units of government;

4. Costs of fees for permits required for the operation of the project, including the NJPDES permit pursuant to N.J.A.C. 7:14A;

5. The costs of replacing, through reconstruction or substitution, environmental infrastructure facilities that were assisted under the Federal Water Pollution Control Act Amendments, the Federal Safe Drinking Water Act, the Trust Act, the Pinelands Infrastructure Trust Bond Act of 1985 ( P.L. 1985, c.302) or its amendments and/or the Bond Acts and that fail to meet their performance standards. This provision applies to failures that occur either before or after the initiation of operation but does not apply to environmental infrastructure facilities that fail at the end of their design life;

6. Personal injury compensation or damages arising out of the project;

7. Fines and penalties due to violations of, or failure to comply with, Federal, State or local laws, regulations or procedures;

8. Costs outside the scope of the approved project;

9. Costs for which grant or loan payment has been or will be received from another federal or State agency for the project;

10. The cost of environmental infrastructure facilities that would provide wastewater treatment capacity or water supply service for new habitation or other establishments to be located on environmentally sensitive land (See 7:22-10.5(b)7 );

11. The costs of preparing a corrective action report required by 7:22-3.30(b)1 or 4.30(b)1, as applicable;

12. The cost of the construction of dams or rehabilitation of dams for water supply purposes;

13. The cost of purchasing water rights, except if the water rights are owned by a system that is being purchased through consolidation as part of a capacity development strategy in accordance with the Federal Safe Drinking Water Act Amendments;

14. The cost of building reservoirs, except for finished water reservoirs and those reservoirs that are part of the treatment process and are located on the property where the water treatment facility is located; and

15. Laboratory fees for monitoring and other routine operation and maintenance expenses.

N.J. Admin. Code § 7:22-5.11

Amended by R.1988 d.210, effective 5/16/1988.
See: 19 New Jersey Register 1600(a), 20 New Jersey Register 1076(a).
Substituted "Project Priority" for "State Funding".
Amended by R.1992 d.42, effective 1/21/1992.
See: 23 New Jersey Register 3282(a), 24 New Jersey Register 246(a).
Revised to reflect the policy of limiting the allowable costs for salaries, benefits and expendable materials (including legal, fiscal and administrative costs) to one percent of the low bid building cost.
Amended by R.1993 d.242, effective 6/7/1993.
See: 24 New Jersey Register 4310(b), 25 New Jersey Register 2271(a).
Amended to allow project sponsors to receive up to one percent of the allowable costs due to differing site conditions for their own administrative expenses associated with the project.
Amended by R.1995 d.494, effective 9/5/1995.
See: 27 New Jersey Register 1536(a), 27 New Jersey Register 3403(a).
Amended by R.1997 d.346, effective 8/18/1997.
See: 29 New Jersey Register 2207(a), 29 New Jersey Register 3723(a).
In (a)2 and (b)5, inserted reference to "Green Acres" bonding act.
Amended by R.1998 d.407, effective 8/3/1998.
See: 30 New Jersey Register 1144(a), 30 New Jersey Register 2863(a).
Rewrote (a) and (b).
Amended by R.2006 d.22, effective 1/3/2006.
See: 37 New Jersey Register 2645(a), 38 New Jersey Register 139(a).
In (a), added new provision at 8 to indicate that security measures are allowable project costs.