Wisconsin Administrative Code › Department of Natural Resources › NR 100-199 - Environmental Protection General › Chapter NR 166 - Safe Drinking Water Loan Program › Subchapter II - Financial Assistance Requirements › Section NR 166.07 - Cost eligibility

Current through June 24, 2024
(1) ELIGIBLE COSTS. Allocable
				  project-specific costs that are necessary and reasonable are eligible for
				  financial assistance under this subsection. Eligible costs include expenses
				  incurred by the municipality for any of the following items and activities when
				  specific to the scope of a scored project, or when approved by the department
				  as necessary and reasonable for the efficient operation or integrity of the
				  overall water system:
(a)
Abandonment.
Abandonment of an entire water system or portions
				  of a water system if approved in the plans and specifications of an eligible
				  project or by department staff, including activities such as demolition,
				  re-landscaping, and removal and disposal of debris.
(b)
Access roads.
Construction of roadways necessary to provide appropriate access to water
				  system facilities such as wellhouses, storage tanks, and water treatment
				  plants.
(c)
Administrative
				  buildings and equipment.
Buildings, offices, and office equipment and
				  furnishings used for purposes of operating a water system, such as
				  administration and storage buildings when part of the scope of the scored
				  project and included in the approved plans and specifications or otherwise
				  approved by department staff. The department may prorate costs for buildings,
				  offices, and office equipment and furnishings that are partially used for
				  purposes not related to the water system.
(d)
Administrative costs of a
				  commission.
Administrative, legal, and other costs incurred by a
				  commission solely for the scored project if identifiable in a contract or
				  agreement between the member municipalities.
(e)
Compliance with state and federal
				  requirements.
Costs incurred for activities associated with complying
				  with state and federal requirements related to the scored project.
Note:
State and federal requirements may
					 include any of the following: Americans with Disabilities Act design and
					 construction; green project reserve documentation; Davis-Bacon and Related Acts
					 administration or other activities associated with wage rate requirements; DBE
					 solicitation and documentation; activities associated with the use of products
					 made in the United States; environmental review of project sites and other
					 activities related to ch. NR 150 compliance, including costs of public notices
					 and hearings; historical, architectural, archaeological, and cultural resources
					 work identified during planning, design, or construction of the project and
					 incurred prior to project closeout; signage requirements, including on a
					 website or at a drinking water facility or project site; audit activities
					 related to the federal single audit act portion of the municipality's annual
					 audit report until the project is complete.
(f)
Construction activities.
Activities defined in s.
				  NR 166.03
				  (14) and included in construction contracts
				  or performed by force account, including any of the following:
1. Replacing, repairing, or rehabilitating a
				  water system if identified in the plans and specifications as cost-effective
				  and necessary.
2. Repairing or
				  restoring items or areas damaged as a direct result of construction of the
				  project.
3. Completing punch list
				  item activities.
4. Acquiring,
				  consuming, or expending materials.
5. Obtaining products that comply with
				  federal requirements to use products made in the United States in SDWLP
				  projects.
6. Incurring other
				  capital costs solely for purposes of the scored project.
(g)
Demolition.
Demolishing
				  existing portions of a water system if the demolition is part of a scored
				  project and at least one of any of the following applies:
1. The demolition will remove an existing
				  building structure located in the space in which a new structure is to be
				  constructed.
2. The demolition is
				  necessary for site preparation.
3.
				  The demolition is included in abandonment procedures as approved in the plans
				  and specifications of the scored project or when otherwise approved by
				  department staff.
4. The demolition
				  entails removal of equipment or materials, or both, from inside an existing
				  water system building or other structure being modified or repurposed as part
				  of the scored project.
(h)
Easements and
				  rights-of-way.
Acquiring easements and rights-of-way if acquisition is
				  from a willing seller. Expenses related to acquisition include purchase cost
				  and administrative and legal expenses.
(i)
Equipment.
Equipment
				  related to the scored project, the costs of which the department may prorate if
				  the municipality intends to use the equipment for multiple purposes rather than
				  solely for the water system. Eligible equipment includes any of the following:
1. Mobile equipment, such as portable
				  stand-by generators, portable emergency pumps, and grounds and maintenance
				  equipment for mowing and snow removal, for the water system.
2. Spare parts, if included in the plans and
				  specifications or otherwise approved by the department.
3. Machinery for manufacturing or repairing
				  necessary tools or equipment for the water system.
4. Computers, tablets, and related equipment,
				  including purchasing, installing, programming, or upgrading computers,
				  printers, control systems, and other computer-related equipment necessary for
				  operating and maintaining the public water system. Equipment and systems for
				  accounting, billing, public notification, testing, monitoring, reporting,
				  emergency alerts, communications, geographic information, and supervisory
				  control and data acquisition are included under this subdivision.
(j)
Fees.
Fees
				  paid by the municipality for any of the following:
1. Permits obtained for construction,
				  including building, electrical, and plumbing permits, pit or trench dewatering
				  permits, hydrostatic test water permits, construction site storm water permits,
				  and railroad crossing permits.
Note:
Permit fees are not required by the
					 department for waterway projects authorized under ch. 30, Stats., that are
					 funded in whole or in part by any federal or state agency. Therefore, under
					 sub. (2) (dm), if a municipality at the time of purchase of a permit under ch
					 30, Stats., pays a fee for the permit due to not identifying the project as
					 being funded with state or federal funds, the fee is not eligible for
					 reimbursement by the SDWLP.
2. Legal fees of an attorney that is not an
				  on-staff municipal attorney, including costs of legal reviews of architectural,
				  engineering, or construction contracts, user charge systems and water system
				  ordinances, management plans, intermunicipal agreements, and legal work
				  necessary for securing eligible permits.
3. Service fees paid to a state or federal
				  agency, except administrative fees paid annually along with principal and
				  interest payments on a SDWLP loan.
(k)
Galvanized pipe.
Removal
				  of galvanized pipe that was or is downstream of lead pipe, a lead gooseneck, or
				  other appurtenances containing lead if the municipality has approval from the
				  public service commission for a lead service line replacement program or is
				  pledging general obligation bonds to the SDWLP.
(L)
Groundwater monitoring.
Installing groundwater monitoring equipment or facilities.
(m)
Insurance.
Purchasing
				  insurance necessary during construction of the project, including property,
				  liability, builder's risk, and construction insurance.
(n)
Interim debt.
Costs
				  associated with interim debt for the scored project as delineated in sub.
				  (3).
(o)
Laboratories.
Laboratory equipment related to initial setup or
				  a significant upgrade or expansion of an on-site laboratory if requested in the
				  financial assistance application.
(p)
Land acquisition.
Acquiring land, including purchase cost and administrative and legal expenses
				  if all of the following apply:
1. The land is
				  integral to the project, including land needed to locate a treatment facility,
				  transmission line, storage tank, pump station, or well.
2. The land is acquired from a willing
				  seller.
(q)
Lead
				  service lines.
Costs for removal and replacement of private service
				  lines that are made of lead or galvanized materials if the municipality has
				  public service commission approval for a lead service line replacement program
				  or is pledging general obligation bonds to the SDWLP.
(r)
Municipal staff, equipment, and
				  materials.
Municipal expenses incurred solely for the scored project
				  and documented by the municipality as force account, including any of the
				  following:
1. Salary and benefits of municipal
				  employees, except elected officials or on-staff attorneys, for time spent
				  working directly on the scored project.
2. Expendable material costs incurred by the
				  municipality outside of a construction contract.
3. Estimated costs incurred using equipment
				  owned by the municipality.
(s)
Professional services.
Service fees and costs of engineering, architectural, legal, and other
				  professional services provided for the project that are not force account work,
				  including any of the following:
1. Conducting
				  value engineering studies or analyses during the design phase.
2. Conducting system evaluations and studies,
				  including well site investigations.
3. Developing, preparing, and submitting
				  engineering reports and plans and specifications.
4. Preparing, printing, and distributing
				  bidding documents.
5. Gathering
				  documents and information for, completing, and submitting the SDWLP financial
				  assistance application and other forms and information required for financial
				  assistance.
6. Developing or
				  revising an operations and maintenance manual.
7. Preparing a plan of operation for the
				  project.
8. Advertising for and
				  conducting bid lettings.
9.
				  Analyzing bids, preparing award recommendations, and preparing
				  contracts.
10. Providing
				  construction management, observation, and inspection.
11. Preparing for and facilitating public
				  education and participation opportunities.
12. Labor for services provided for the
				  scored project, travel related to the project, and indirect costs charged as
				  part of a contract by the service provider for their overhead, administrative,
				  office equipment, and other similar costs not attributable specifically to the
				  scored project.
13. Preparing a
				  user charge system, including associated attorney fees and completing and
				  submitting application documents to the public service commission for a water
				  rate increase and developing or updating water system related
				  ordinances.
14. Preparing
				  environmental assessment reports and evaluations.
15. Conducting archaeological surveys and
				  gathering historical site information.
16. Providing municipal advisor or bond
				  counsel services related to loan closing or the issuance of bonds.
17. Preparing a water conservation or
				  wellhead protection plan.
18.
				  Producing record drawings.
19.
				  Updating or upgrading water system maps of the areas impacted by the scored
				  project.
20. Providing
				  administration of activities related to the federal Davis-Bacon and Related
				  Acts or other wage rate requirements.
Note:
Links to the Davis-Bacon and Related
					 Acts can be found on the U.S. department of labor's website at
https://www.dol.gov/agencies/whd/government-contracts/construction/laws
.
					 The Davis-Bacon Act is found in
					 40 USC
					 3141 et seq. with procedures and rules in 29
					 CFR parts 1 to 7.
21.
				  Evaluating construction materials and equipment for compliance with applicable
				  domestic preference requirements.
22. Conducting research or energy audits for
				  incorporation of energy and water efficiency and conservation into the planning
				  and design of a project.
(t)
Project site.
Construction-related work activities at the project site of a scored project,
				  including any of the following:
1.
				  Landscaping areas impacted by construction of the scored project.
2. Reconnecting water service lines due to
				  the rehabilitation of a water system.
3. Relocating storm water or wastewater sewer
				  pipes if necessary for construction and replacing sewer pipes with the same
				  size or required minimum size pipe if breakage from construction
				  occurs.
4. Erecting project and
				  water system identification signs.
5. Preparing a site for construction,
				  including surveying, staking, and grading.
6. Restoring the construction site to
				  original condition or, when necessary, upgrading the site to meet state and
				  local requirements.
7. Removing,
				  relocating, or replacing utilities, providing temporary utilities, installing
				  new utility equipment, or upgrading utilities, if necessary for construction of
				  the scored project and the recipient is legally obligated to pay these
				  costs.
(u)
Safety.
Purchasing and installing safety equipment related to
				  the scored project, the costs of which the department may prorate if the
				  municipality intends to use the equipment for multiple purposes rather than
				  solely for the water system.
(v)
Security.
Purchasing and installing security equipment and
				  appurtenances for the water system, including surveillance cameras, fencing,
				  security alarms, and motion detectors, and conducting a vulnerability
				  assessment if necessary for determining security needs, the costs of which the
				  department may prorate if the municipality intends to use the equipment for
				  multiple purposes rather than solely for the water system.
(w)
Sewers on site.
Storm
				  sewers and sanitary sewers necessary for controlling storm water runoff and
				  wastewater on water system sites, such as at a wellhouse or water treatment
				  plant site.
(x)
Special
				  assessment fees.
Financial and legal costs associated with the process
				  of preparing and implementing special assessments, except when the tasks are
				  performed by an on-staff attorney, when the municipality is pledging special
				  assessments toward repayment of its SDWLP loan.
(y)
Staffing evaluations.
Conducting an evaluation of staffing needs to determine appropriate changes to
				  staffing levels as a result of the scored project.
(z)
Startup.
Startup
				  expenses for a water system incurred solely because of the scored project,
				  including costs for any of the following:
1.
				  Preparing a startup curriculum and training materials.
2. Initial training of operating personnel on
				  new or modified equipment, laboratory procedures, computers, controls, records
				  management, and treatment processes.
3. Obtaining expert operational assistance
				  for adjustments to the treatment process or other significant portions of the
				  water system.
4. Implementing a
				  maintenance management system.
5.
				  Obtaining necessary computers, upgrades, and software, the costs of which the
				  department may prorate if the municipality intends to use the equipment for
				  multiple purposes rather than solely for the water system.
6. Attending off-site formal training
				  programs if necessary for the initial operation of the constructed water
				  system.
7. Purchasing the first
				  fuel fill-up for new equipment, such as generators.
(zm)
Street restoration.
Restoring streets and rights-of-way to preconstruction condition, and repairing
				  items damaged during construction of the scored project, such as pavement,
				  sidewalks, sanitary sewers, and storm sewers. Eligibility of costs may be
				  prorated based on participation by one or more other funding sources, or on the
				  percent of the project attributable to SDWLP-eligible activities.
Note:
Other funding sources that tend to
					 participate in the types of projects that involve street restoration include
					 the department of transportation, the community development block grant
					 program, and the U.S. department of agriculture rural development community
					 programs. Proration of costs may be due to the other funding source covering a
					 portion of costs that would otherwise be eligible for SDWLP funding or because
					 some of the project costs are not eligible for SDWLP funding, such as
					 wastewater or storm water pipe costs being ineligible when the overall project
					 purpose is to replace both watermains and sanitary sewers.