Section 3. Underground Placement of Utility Distribution Lines Except as provided below, the cost of underground placement of utility distribution lines within the project area may be charged to Item 1 of Gross Project Cost or may be offered as an Item 2 noncash local grant-in-aid. While the "conformance with local standards" policy set forth in Section 11-1-1 is applicable to utility distribution lines that are eligible as project improvements, the policy is not applicable to the underground placement of these lines. Justification for underground placement need not be submitted to HHFA. The cost of underground placement of utility distribution lines is not eligible for inclusion in Gross Project Cost when special circumstances, such as adverse subsurface conditions or the limited extent of contemplated project improvements in the affected area, would make the cost exceptionally high in relation to the benefits to be derived. PUBLICLY OWNED UTILITY The full cost of relocating existing overhead lines underground is eligible as an Item 1 site clearance expenditure or an Item 2 noncash local grant-in-aid. The full cost of construction required to place new services underground is eligible as a project cost. The eligible cost of the service lines themselves will be based, as appropriate, either on the "improvements of excess size or capacity" policy set forth in Section 11-1-1 or on policies applicable to the determination of relative benefit of public facilities (see Section 17-4-2). PRIVATELY OWNED UTILITY 1 To the extent that a utility company may not legally be required 1 to relocate existing lines underground or to install new lines underground, Item 1 project costs may include compensation to the company for the actual cost of relocating existing lines underground or installing new lines underground. Specifically: (1) If the company may legally be required to relocate existing lines 1 As used herein, the term "legally be required" means required under applicable State statutes, local ordinances, judicial decisions, or provisions of the company's franchise. 2 SITE PREPARATION WORK (3) If the company may not legally be required to relocate existing lines or to install new lines underground, compensation for the full cost of relocating the existing lines or installing the new lines underground is eligible. With Part I of the Application for Loan and Grant, the LPA shall submit a legal opinion establishing what the utility company may or may not legally be required to do at its own expense. If the underground installation affects the character of privately owned street lighting standards to be installed, Item 1 project costs may include the actual cost of standards and fixtures installed, less the estimated cost of standards and fixtures which would have been provided under existing practice in the locality. URBAN RENEWAL PLAN Specific provision for any contemplated underground placement of utility distribution lines shall be included in the Urban Renewal Plan. If an existing Urban Renewal Plan does not provide for underground placement, the LPA shall give advance notification to reuse appraisers and to all potential redevelopers of land to be served by the underground utility distribution lines. CHAPTER 3. EXECUTION OF PROJECT IMPROVEMENTS AND SITE Section 1. Introduction This Chapter contains the requirements with which the LPA must comply in designing and constructing project improvements and carrying out site preparation work, including: (1) Demolition and removal of buildings and other existing improvements. (2) Clearance of the project site. (3) Supervision, inspection, and administration of all project improvement and site preparation work performed as a part of the project. The LPA will be governed by the provisions of State or local law whenever they are in addition to or are more stringent or restrictive than those established in this Manual. LABOR STANDARDS Federal labor standards requirements are contained in Chapter 30-4. INSURANCE AND BONDING Requirements for bid bonds, performance and payment bonds, and insurance coverage the LPA shall require of contractors doing project improvement or site preparation work which is included in Item 1 of Gross Project Cost are set forth in Section 30-5-2. Special provisions relating to site clearance and construction work being provided as a non-cash local grant-in-aid by an entity other than the LPA are set forth in Section 30-5-4. COOPERATION OF OTHER GOVERNMENT AGENCIES The LPA shall investigate the possibilities of having other local governmental agencies act as its agents in connection with: (1) Design and preparation of drawings and specifications for project improvement and other site preparation work. (2) Preparation of bidding and contract documents. (3) Handling of bidding procedures. SITE PREPARATION WORK (4) Contract administration following an award of a contract for Item 1 work. The LPA may enter into agreements for such work without HHFA concurrence, provided the cost is within the approved project budget. Any agreement shall be in writing and shall set forth (1) the scope of services to be rendered, (2) the basis of compensation, and (3) total compensation to be paid to the agency. PAYMENT OF COST OF INELIGIBLE PORTION OF IMPROVEMENT Payments received from the public body for the cost of the ineligible portion of an Item 1 project improvement of excess size or capacity (see Section 11-1-1) shall not be deposited in the project bank accounts but shall be handled separately. After final payment to the contractor, the actual cost of the ineligible portion of the improvement shall be determined and the payments of the public body shall be adjusted accordingly. These payments shall include a pro rata share of related costs, including engineering design and supervision, equal to the percentage of the total cost of the improvement. that is ineligible as an Item 1 expenditure. RESPONSIBILITY FOR COMPLETED PROJECT IMPROVEMENTS The LPA must use every appropriate means to avoid expenses for repair, protection, replacement, maintenance, or operation of project improvements which are included in Item 1 of Gross Project Cost. After their completion, any such expenses will not be allowed as project costs except in unusual situations. If project improvements in the above category are to be dedicated to the municipality or other public body, whenever legally possible the LPA shall take appropriate steps to assure that the date of completion of the improvements will be the cutoff date of accountability and liability for further costs. |