N.J. Admin. Code § 7:22-6.17 - Loan conditions

Current through Register Vol. 54, No. 7, April 4, 2022

(a) The following requirements, in addition to 7:22-6.18 through 6.30, as well as such statutes, rules, terms and conditions which may be applicable to particular loans, are conditions to each Pinelands grant or loan, and conditions to each disbursement under a Pinelands grant or loan agreement:
1. The recipient shall comply with the Local Public Contracts Law (40A:11-1 et seq.), the New Jersey Wastewater Treatment Privatization Act (58:27-1 et seq.) or other applicable procurement method authorized by State law;
2. The recipient shall certify that it is, and shall assure that its contractors and subcontractors are, maintaining their financial records in accordance with generally accepted accounting principles and auditing standards for governmental institutions. The recipient shall comply with the requirements of the Single Audit Act of 1984 ( 31 U.S.C. §§ 7501- 7507 ) and Federal OMB Circular A-128, both incorporated herein by reference, and State OMB Circular 04-04-OMB, incorporated herein by reference, as amended and supplemented. Copies of these documents may be obtained from the Department;
3. The recipient shall comply with the Department's standards of conduct (N.J.A.C. 7:22-8 ) and the Local Government Ethics Law ( P.L. 1991, c.29; 40A:9-22 );
4. The recipient shall comply with the requirements of N.J.A.C. 7:14-2, Construction of Wastewater Treatment Facilities, and the provisions of the NJPDES rules at N.J.A.C. 7:14A;


6. The recipient shall establish an effective regulatory program pursuant to 58:10A-6 and enforce pretreatment standards which comply with 40 C.F.R. Part 403;
7. The recipient shall comply with all applicable requirements of Federal, State and local laws;
8. The recipient shall pay the unallowable costs of the construction of the project and shall pay the allowable costs not covered by the Pinelands grant or loan, if any;
9. The Pinelands grant or loan agreement or any amendment thereto may include special conditions necessary to assure accomplishment of the project objectives or Department requirements. The recipient shall comply with any special conditions which the Department requires in the agreement or any amendment thereto;


11. Construction of the project, including letting of contracts in connection therewith, shall conform to applicable requirements of federal, State and local laws, ordinances, rules and regulations and to contract specifications and requirements;
12. No Pinelands grant or loan moneys shall be disbursed to a local government unit who is in current default on any State loan. In order to facilitate full or partial payment of such defaulted loan obligation the Department may, at its discretion, make a Pinelands grant or loan disbursement where it determines that the local government unit will repay the defaulted loan obligation and associated penalties. Nothing in this paragraph shall in any way limit any right or duty of the Department to demand and collect at any time the total due under any such defaulted loan;
13. An amount of any Pinelands grant or loan disbursement equal to any unpaid portion of a finally determined State assessed penalty pursuant to N.J.A.C. 7:14-8, Assessment of Civil Administrative Penalties, shall, at the discretion of the Department, be held in escrow until said penalty is paid in full. In no case will the total amount withheld under this subsection exceed the unpaid amount of said penalty;
14. The Department may assess penalties to late loan repayments as appropriate as specified in the Pinelands grant or loan agreement;
15. The recipient shall comply with the Environmental Assessment Requirements for State Assisted Wastewater Treatment Facilities (N.J.A.C. 7:22-10 );
16. The recipient shall certify to the Department that a final plan of operation, including an operations and maintenance manual, an emergency operating program, personnel training, an adequate budget consistent with the user charge system, operational reports, laboratory testing needs, and an operation and maintenance (including replacement) program for the complete wastewater treatment system acceptable to the local government unit, has been developed for the project;
17. The recipient shall certify that it has not and shall not enter into any contract with, nor has any subcontract been or shall be awarded to any person debarred, suspended or disqualified from Department contracting pursuant to N.J.A.C. 7:1D-2 for any services within the scope of project work.
18. The recipient shall certify that the project or phase of the project was initiated and completed in accordance with the time schedule specified in the Pinelands grant or loan agreement or approved amendments thereto;
19. The recipient shall certify that it and its contractors and subcontractors shall comply with all insurance requirements of the Pinelands grant or loan agreement and certify, when appropriate, that the insurance is in full force and effect and that the premiums have been paid. The recipient shall include the State and its agencies, employees and officers as additional "named insureds" on any certificate of liability insurance coverage of the contractor. The recipient shall provide the Department with such certificate of liability insurance (or other similar document evidencing liability insurance coverage) prior to the issuance of the notice to proceed with the project. Such certificate shall be maintained in full force and represent a continuing obligation to include the State and its agencies, employees and officers as additional "named insureds" through the completion of construction. The recipient shall not alter or cancel such certificate without prior notification to the Department, in writing, 15 days in advance of any alteration or cancellation. In addition, when required, the recipient shall acquire or have the contractor acquire, as appropriate, flood insurance made available under the National Flood Insurance Act of 1968 ( P.L. 90-448 ), as amended. Flood insurance coverage shall begin with the period of building and continue for the entire period during which the wastewater treatment facility operates. The insurance must be in an amount at least equal to the allowable improvements or the maximum limit of coverage made available to the recipient under the National Flood Insurance Act, whichever is less. The recipient shall comply with each requirement of this subsection prior to the release of the initial disbursement for building the project;
20. The recipient shall certify that it and its contractors and subcontractors shall comply with the discrimination and affirmative action provisions of 10:2-1 through 10:2-4, the New Jersey Law Against Discrimination (10:5-1 et seq.), and the rules and regulations promulgated pursuant thereto, including, but not limited to, N.J.A.C. 17:27;
21. The recipient shall certify that it has established an affirmative action program for the hiring of minority workers in the performance of any construction contract for that project, consistent with the provisions of the New Jersey Law Against Discrimination (10:5-1 et seq.);
22. The recipient shall designate an officer or employee, who may be an existing officer or employee, to serve as its public agency compliance officer, pursuant to 17:27-3.5 and 7:22-9.11;
23. The recipient shall certify that it shall comply with the Rules and Regulations for Awarding Contracts for State Assisted Projects to Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged Individuals (N.J.A.C. 7:22-9 );
24. The recipient shall make a good faith effort to award not less than 10 percent of the total amount of all contracts for building, materials or services (including planning, design and building related services) for a project to small business concerns owned and controlled by socially and economically disadvantaged individuals as defined in the Small Business Act ( 15 U.S.C. 637(a) and 637(d) ), and any regulations promulgated pursuant thereto. Where a local government unit has Minority Business Enterprise/Women's Business Enterprise (MBE/WBE) goals which exceed 10 percent of the total amount of all contracts, the local government unit's goals will take precedence over State goals;
25. The recipient shall pay not less than the prevailing wage rate to workers employed in the performance of any contract for the project, in accordance with the rate determined by the Commissioner of the New Jersey Department of Labor pursuant to 34:11-56.2 5 et seq.;
26. After the award of a contract and prior to the start of work, a preconstruction meeting shall be scheduled by the recipient. The recipient, the responsible engineer, the environmental and construction inspectors, the contractor and one or more representatives of the Department must be present at the preconstruction meeting;
27. Prior to starting construction, the recipient shall provide photographs or videotapes to the Department in conformance with the provisions of 7:22-10.11(q);
28. The recipient shall provide inspection coverage of the construction work using qualified personnel on a routine basis as follows:
i. A qualified inspector shall be provided at each construction site. There are times when a qualified individual can cover more than one site; however, this must be governed by on-site conditions which determine rate of progress;
ii. Inspection coverage at a treatment plan site shall be on a full-time basis at all times;
iii. For pipeline construction, full-time construction inspections shall be provided during the following operations:
(1) Preparation of trench bottom for placement of bedding and to determine if bottom will support pipe or if additional support must be provided;
(2) Placing of pipe bedding material where required, as necessary, and in the quantity required in conformance with the approved specifications;
(3) Alignment and joining of pipe sections;
(4) Bedding, placement, and alignment of manholes and other appurtenances; and
(5) Placement and compaction of trench backfill material;
iv. Inspection coverage at pump station and metering station sites shall be sufficient to ensure that the work satisfies specifications. The coverage shall include, but not be limited to, the following:
(1) Excavation and spoils disposal;
(2) Checking of all elevations including footings, piles, slabs and equipment pads (this function may be performed by the responsible engineer);
(3) Installation of all concrete reinforcing bars;
(4) Installation of all electrical conduit, plumbing and piping; and
(5) Installation of all equipment;
v. All concrete shall be checked for truck mix time and temperature prior to placing in forms. Periodic slump tests and test cylinders, per good construction practice, shall be taken. Cold weather and hot weather precaution shall be taken as appropriate. Any additions to the specified concrete mix must be approved by the responsible engineer; and
vi. During the construction period, the construction inspector shall keep a job diary in which he will keep a record of progress, problems encountered, and corrective action taken to rectify any problems. The job diary shall be made available to the Department upon request;
29. The recipient shall provide environmental inspection coverage and ensure completion of environmental restoration in conformance with the provisions of 7:22-10.12;
30. During the construction phase of the projects, job meetings shall be held at frequent intervals to review construction and restoration progress and to resolve difficulties which might delay completion of the work. Attendees at these meetings shall include the recipient, the responsible engineer, the recipient's inspectors (construction and environmental), the contractor, and one or more representatives of the Department;
31. The recipient shall provide notification, information and conduct visual inspections and testing of projects as follows:
i. The recipient shall notify the Department one week prior to all final visual inspections and tests of all sewer lines, force mains, mechanical equipment and treatment plant operation at which time the Department shall notify the recipient if it is necessary that a Department representative be present at the visual inspection or testing activity, a determination that will be made based on the specific project circumstances such as project location, design, construction methods and other factors;
ii. Copies of all final visual inspections and test reports shall be forwarded to the Department;
iii. Copies of record drawings shall be forwarded to the Department prior to the start of visual inspection and testing of all pipeline projects; and
iv. All visual inspections and testing shall be done in accordance with the following:
(1) All manholes and pipelines shall be completed and flushed clean prior to the visual inspection. This inspection must be performed with a representative of the recipient and/or the responsible engineer, the contractor and, if determined necessary under (a)31i above, a representative from the Department present. All discrepancies must be noted and a reinspection performed to verify the corrective action;
(2) All manholes and pipelines shall be visually inspected and accepted prior to testing;
(3) Upon acceptance of the visual inspection by the Department, the necessary infiltration, exfiltration, or low pressure air test and deflection tests when applicable shall be performed by the contractor. The test must be witnessed by the recipient and/or the responsible engineer (or representative), the contractor, and, if determined necessary under (a)31i above, a representative from the Department. Upon completion of the test, a copy of the test results must be forwarded to the Department;
(4) Infiltration tests of gravity lines shall be limited to 2,000 linear feet per test;
(5) Force mains shall be tested to two times the maximum operating pressure, but not greater than the pipe pressure rating, whichever is less. The length of pipe tested during a force main pressure test is not restricted; however, it is recommended that it be limited for ease in locating leaks if present;
(6) Testing of all mechanical equipment at treatment plants and pump stations may be witnessed by a representative of the Department; and
(7) If required, actual flow tests must be done in accordance with parameters established by the Department and may be witnessed by a representative of the Department; and
32. The recipient shall forward a letter to the Department upon completion of all construction and restoration of each contract of a project, stating that the project (or contract) is ready for final inspection. No final inspection will be scheduled until formal notification is received. The final inspection will be a joint inspection with the recipient and/or the responsible engineer, the recipient's inspector(s), the contractor, and one or more representatives of the Department in attendance.
(b) The recipient shall certify that it is in compliance with all other requirements and conditions of the Pinelands grants or loan agreement.
(c) The Department may impose such other conditions as may be necessary and appropriate to implement the laws of the State and effectuate the purpose and intent of the Pinelands Bond Act.
(d) Neither the State of New Jersey nor the Pinelands Commission will be a party to any contracts and subcontracts awarded pursuant to this subchapter. All such contracts and subcontracts shall include the following statement:

"This contract or subcontract is expected to be funded in part with funds from the New Jersey Department of Environmental Protection and the Pinelands Commission. Neither the State of New Jersey, the Pinelands Commission nor any of their departments, agencies or employees is, or will be, a party to this contract or subcontract or any lower tier contract or subcontract. This contract or subcontract is subject to provisions of N.J.A.C. 7:22-6, 7, 9 and 10."

(e) The recipient shall insert into the contracts for building the project EPA Form 5720-4 (5-13), Labor Standards Provisions for Federally Assisted Construction Contracts.
(f) The recipient shall insert into the contracts, and shall ensure that their contractor(s) include within their subcontractor(s), the following statement:

"In accordance with the provisions of 58:11B-26 and N.J.A.C. 7:22-6.17(a)24, the contractor (subcontractor) shall comply with all of the provisions of N.J.A.C. 7:22-9."

(g) All applicable surety bonds required in connection with the advertisement and award of building contracts or subagreements shall be written by a surety company listed on the Federal Treasury List (Department Circular 570--Surety Companies Acceptable on Federal Bonds), incorporated herein by reference. Copies of this document may be obtained from the Department.


N.J. Admin. Code § 7:22-6.17
Amended by R.1992 d.42, effective 1/21/1992.
See: 23 New Jersey Register 3282(a), 24 New Jersey Register 246(a).
Modified to conform with program requirements applied to projects funded under the Wastewater Treatment Financing Program and generally reflect good management practices, to incorporate standards regarding auditing and to ensure consistent practices by local government units receiving a loan pursuant to this subchapter, clearly indicate that a local government unit is subject to the ethics standards of the Local Government Ethics Law (P.L. 1991, c.29; N.J.S.A. 40A:9-22) and modified to identify program requirements related to implementation of a user charge system, liability and flood insurance requirements, wage rates, labor standards, contractor/subcontractor certification provisions and surety companies acceptable under the program.
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 include specific requirements for the construction of wastewater treatment facilities; also amended to delete the requirement for recipients to provide a Subcontractor Certification Form to the Department.
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)31i, inserted "at which time ... and other factors"; in (a)31iv(1) and (3), inserted ", if determined necessary under (a)31i above,"; in (a)31iv(1), inserted "clean" following "and flushed"; and in (a)31ii and iv(3), deleted reference to a request regarding forwarding results to the Department.
Administrative change.
See: 32 New Jersey Register 1796(a).
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), updated 2 to incorporate, by reference, the most current State OMB Circular, as amended and supplemented; deleted and reserved 5 and 10; removed the requirement at 25 that projects pay not less than the prevailing Federal wage rate; modified the requirement at 31iv(6) and (7) that the Department witness certain mechanical and flow testing procedures.

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