EP 1165-2-1
30 Jul 99
10-12. Transfer of Completed Local Cooperation Projects to non-
Federal Interests. Under the terms of the PCA, when the Government
determines that an entire project, or functional portion thereof, is
complete, the Government provides written notice to the non-Federal
sponsor of such determination and furnishes an Operations,
Maintenance, Repair, Replacement, and Rehabilitation (OMRR&R) Manual
to the non-Federal sponsor. The non-Federal sponsor is then
responsible for the OMRR&R of the project, or functional portion.
After completion and notice to the non-Federal sponsor, authority is
considered to expire for expenditure of Federal funds for construction
of additional improvements on the project or for maintenance thereof.
10-13. Project Cost Increase Limitations. Section 902 of WRDA 1986,
as amended by Section 3.b of Public Law 100-676, provides that,
excluding the impacts of general price increases and any project
additions otherwise authorized, the total project costs for any
project authorized in WRDA 1986 and all subsequently authorized
projects may not exceed the authorization limit by more than 20
percent. Procedures for calculating this limit are described in
Appendix P of ER 1105-2-100. A construction contract can not be
awarded if the estimated total project costs after bid opening exceed
the Section 902 limit (unless and until the limit is modified by law).
Also, no reimbursement can be made to a non-Federal sponsor if
subsequent to contract award, total project costs exceed the Section
902 limit (unless the limit is modified).
10-14. Appraisal of Lands Containing Hazardous,Toxic, and Radioactive
Wastes (HTRW) on Local Cooperation Projects. Regardless of whether or
not the land required for a local cooperation project is in the non-
Federal sponsor's possession, or whether or not HTRWs exist on or
beneath the property, ER 1165-2-131 (paragraph 12.c) is the basic
guidance for appraising land values for credit. The credit amount
shall be based on an approved appraisal using the principles outlined
in the Uniform Appraisal Standards for Federal Land Acquisitions under
the assumption that the lands are clean. Therefore, regardless of
whether the non-Federal sponsor paid a nominal price or an exhorbitant
price and whether the lands are actually clean or contain HTRW, the
credit appraisal should assume clean lands. The cost of HTRW cleanup
is not a factor in the appraisal (or credit) nor are any cleanup costs
to be included in the fair market value of the land or in the estimate
of total project cost.
10-17
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