NR 162.23(1)(c)3.3. If the department determines that the project includes other market rate costs as described in par. (b) 5., the amount of those costs shall be subtracted from the amount eligible for below–market rate financing and added to the amount of market rate costs calculated in subd. 2.

NR 162.23 NoteNote: All questions relating to cost eligibility or allocation shall be resolved prior to the execution of the financial assistance agreement in accordance with s. NR 162.15.

NR 162.23(2)(2) Ineligible costs. Costs for items and activities not directly associated with or not necessary for the construction or startup of a scored project are not eligible for financial assistance unless specifically approved by the department as necessary and reasonable for the efficient operation or integrity of the overall storm water treatment works or BMP. Ineligible items and activities include all of the following:

NR 162.23(2)(a)(a) Allowances. Any allowance or contingency amounts built into a bid contract for nonspecific or ineligible items or activities.

NR 162.23(2)(b)(b) Basin planning. Basin or areawide planning not related to the scored project.

NR 162.23(2)(c)(c) BCPL ineligibles. For a project receiving interest rate subsidy under subch. IV, project costs determined to be ineligible for loan assistance from the BCPL.

NR 162.23(2)(d)(d) Bonus payments. Bonus payments not legally required for completion of construction before a contractual completion date.

NR 162.23(2)(e)(e) Buying capacity. Purchase cost of buying capacity in an existing storm water treatment works or BMP that is not being expanded.

NR 162.23(2)(f)(f) Conflict of interest. Costs incurred in a contract that creates a real or apparent conflict of interest. An apparent conflict of interest arises when an official or employee of a recipient participates in the selection, award, or administration of a contract supported by the CWFP and any of the following conditions exist:

NR 162.23(2)(g)(g) Engineering. Engineering costs relatable to ineligible construction costs when the ineligible construction and equipment costs are more than 10 percent of total construction and equipment costs.

NR 162.23(2)(h)(h) Grant administration. Any costs for administering or applying for funding from sources other than the CWFP, such as U.S. department of agriculture’s rural development programs, a community development block grant program, federal state and tribal assistance grants, U.S. army corps of engineers, focus on energy, or other non-CWFP federal or state government loan or grant programs, or other types of financial assistance programs.

NR 162.23(2)(i)(i) Hookup charges. Hookup charges imposed by one municipality on another for hooking into a storm water treatment works or BMP, or transport system to such a facility, unless the charges are based on identifiable capital improvement costs incurred by the municipality imposing the charge, and are included in an intermunicipal agreement meeting the requirements of s. NR 162.05 (4) (h).

NR 162.23(2)(j)(j) Interim financing. Interest or principal payments on interim debt paid by the municipality out of its internal funds rather than capitalized funds.

NR 162.23(2)(k)(k) Late fees. Interest or late fees charged to a municipality for delayed payments related to the project.

NR 162.23(2)(L)(L) Leases. Costs related to leasing land.

NR 162.23(2)(m)(m) Mismanagement and litigation. Costs of claims against the recipient resulting from mismanagement or caused by the recipient’s vicarious liability for the improper action of others, and costs resulting from litigation of contract disputes, liquidated damages, appeals, and other related disputes.

NR 162.23(2)(n)(n) Negligence. Costs incurred due to negligence or error of a party contracted by the municipality.

NR 162.23(2)(o)(o) No construction. All costs of a project if the municipality does not finance some construction costs through the CWFP, unless another governmental agency or another program in the department is providing financing for the construction costs and department CWFP staff receive acceptable documentation of the other agency’s or other program’s commitment.

NR 162.23(2)(p)(p) Operations and maintenance. Operations and maintenance expenses as defined in s. NR 162.003 (50) and (40), respectively.

NR 162.23(2)(q)(q) Ordinary municipal operating expenses. Ordinary operating expenses of a municipality, such as salaries and expenses of elected officials and on-staff attorneys, postage, utility bills, and annual financial audits.

NR 162.23(2)(r)(r) Other funding. Costs for which payment has been or will be received from another funding source, including costs for which funds from the U.S. department of agriculture’s rural development program or a community development block grant program are committed, or costs covered by a focus on energy grant. If the municipality does not receive the funds expected from the other source, the department may consider the costs of the work that was to be funded through the other source to be eligible for CWFP financial assistance unless the costs are considered ineligible under another paragraph in this subsection. This paragraph does not apply to a municipality receiving a loan from the BCPL for a scored project receiving interest subsidy under subch. IV.