N.M. Code R. § 20.7.9.300 – Project and Administrative Requirements

A. Preplanning Conference: At NMED or the applicant's request, a preplanning conference will be scheduled. The applicant's representatives and possibly the applicant's consulting engineer will meet with the NMED project engineers to discuss the project. Items that may be discussed are:
(1) Review of Colonias Grant Program procedures;
(2) Enforceable requirements, water quality and public health concerns;
(3) Eligibility of project components;
(4) Procurement of A/E services;
(5) Appropriate technology;
(6) User charges in relation to financial capability of applicant being able to operate and maintain the facility;
(7) Environmental impacts;
(8) The importance of public participation; (Citizen involvement will be an asset in the development of plans that reflect the needs and value of your community. Informing the public early on can result in issues being resolved before delay and additional costs occur. Citizen support is necessary for capital and user charge systems to fund a project.) and
(9) Project schedule.
B. Grant Agreement: A grant agreement will be prepared by the NMED and executed by the grantee for projects which can be financed with available grant funds and which have completed requirements set by the NMED. Projects which are not ready to proceed to the grant agreement stage within six months of allocation of available funds will be bypassed by projects lower on the priority list which are ready to proceed. The grant agreement contains several conditions and certifications including:
(1) Certification that the Grantee is a legal entity with authority to execute a grant agreement by ordinance. Certification that a resolution designating signatory authority has been passed.
(2) Copies of all executed contracts, subcontracts, agreements, and related amendments entered into by the grantee prior to the grant agreement, but related to this project.
(3) Request for proposals (RFP) documentation and an engineering agreement, or letter of certificate if employing staff engineers.
C. Allowable and Unallowable Costs:
(1) Allowable costs shall be limited to those costs which are necessary, reasonable, and directly related to the efficient achievement of the objectives of the project. Costs incurred by the Grantee for work performed on the project prior to execution of the grant agreement, but which received NMED prior approval, may be considered as allowable costs. The Grantee must justify all expenditures for which it requests a disbursement of grant funds according to accepted NMED criteria and procedures. NMED may withhold disbursement of funds and may reclaim improperly documented disbursements until the Grantee provides sufficient justification.
(2) All unallowable costs, including but not limited to overhead charges, indirect costs, and noneligible construction costs shall be paid by the Grantee from sources other than the Colonias Wastewater Construction Grant Program.
(3) The Grantee agrees that it will implement, in all respects, the project outlined in the grant agreement.
(4) The Grantee agrees to make no change in the project description without first submitting a written request to the NMED and obtaining the NMED approval of the required change.
D. Accounting: Funds received by the Grantee from the NMED and those funds which are contributed by the Grantee shall be deposited in separate bank accounts or in a separate, identifiable ledger account. In addition, the Grantee shall establish and maintain accounting procedures which will ensure strict accountability for all funds received and disbursements made by the Grantee in connection with the grant agreement. he NMED shall be responsible for examining the Grantee's accounting procedures for purposes of this agreement, and their adequacy in accordance with generally accepted government accounting standards. These standards are usually defined as those contained in the U.S. General Accounting Office (GAO) publication, "Standards for Audit of Governmental Organizations, Programs, Activities, and Functions," dated 2/27/81.
E. Records: The Grantee shall maintain books, records, documents, and other evidence sufficient to reflect properly all costs of whatever nature claimed to have been incurred for the performance of this agreement. Such books, records, documents, ledgers, and other evidence shall be preserved and made available to the NMED, State Auditor, US Governmental Accounting Office, and USEPA Office of the Inspector General during the Grant agreement period and for a period of six (6) years from date of final payment. If upon termination of the grant agreement, questions exist concerning proper expenditure of funds, then the Grantee shall preserve and make available all books, records, documents, ledgers and other evidence relating to the grant agreement until such questions are settled and the Grantee has received written notification to that effect from NMED.
F. Audit and Inspection: The project sites and Grantee facilities which are in any part the subject of the grant agreement, and Grantee records as defined elsewhere herein, shall be subject at all reasonable times to inspection and audit by the NMED, State Auditor, US Governmental Accounting Office, and USEPA Office of the Inspector General during the period of the grant agreement and for a period of six (6) years following final payment hereunder. All subcontracts let by the Grantee, the cost of which are included in the grant agreement, shall include the substance of this audit and inspection clause.
G. Occupation Health and Safety: The Grantee covenants that it will take affirmative action to ensure that the project shall be conducted in conformance with federal and state laws and regulations relating to occupational health and safety. In addition, the Grantee shall assure that any contract entered into by the Grantee for the performance of work on this project shall contain language by which the contractor and the Grantee agree that authorized representatives of the NMED Occupational Health and Safety Bureau shall have free access to the project site, and shall not be impeded in any way from performance of their duties.
H. Nondiscrimination:
(1) During the performance of the grant agreement, the Grantee shall not discriminate against any employee or applicant for employment because of race, color, age, religion, sex, handicap or national origin. The Grantee shall take affirmative action to ensure nondiscrimination in employee recruitment advertising, hiring, upgrading, promotion, and selection for training (including apprenticeship).
(2) The Grantee agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this clause. All solicitation or advertisement for employees placed by or on behalf of the Grantee shall state that all qualified applicants will receive consideration without regard to race, color, age, religion, sex, handicap, or national origin. The Grantee shall comply with all provisions of Title VI of the Civil Rights Act of 1964, Executive Order 11246, dated September 24, 1965, and all relevant rules, regulations, and orders of the U.S. Secretary of Labor. The Grantee shall include the provisions of the clause in all project subcontracts.
I. Termination: NMED shall have the right to terminate the grant agreement if at any time in the judgment of NMED the terms of the grant agreement have been violated or the activities described in the project description are not progressing satisfactorily. The Grantee may terminate the grant agreement with sufficient reason. Such termination must be in writing.
J. Procurement: The Procurement Code, NMSA 1978, Section 13-1-28 through 13-1-199, imposes civil and criminal penalties for its violation. In addition, New Mexico criminal statutes impose felony penalties for illegal bribes, gratuities, and kick-backs. The Grantee shall comply with 40 CFR Part 31, Federal regulations governing procurement which include requirements for the participation of minority and women owned businesses (MBE/WBEs).
K. Environmental Review: The Grantee shall comply with the requirements of the National Environmental Policy Act as implemented by the Environmental Review Procedures adopted by NMED.
L. Davis-Bacon Act Wage Rates: Federal wage rates provisions pursuant to 29 CFR, Part 5 shall be paid by the Grantee for construction projects in conformance to the prevailing wage rates established for the locality by the U.S. Department of Labor under the Davis-Bacon Act.
M. Federal Cross-Cutting Authorities: Several cross-cutting federal laws and authorities apply, by their own terms, to all activities assisted with federal funds. Colonias Wastewater Construction Grant projects are funded by a USEPA grant to NMED and therefore must comply with these federal "cross-cutters", three of which are described in the paragraphs above.
[2/28/93, 11/30/95; 20.7.9.300 NMAC - Rn, 20 NMAC 7.9.III.300 through 312, Recompiled 11/27/01]