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ACTIA 2002-26.01 APPENDIX A POLICY ON ELIGIBLE COSTS Environmental Studies ACTIA funds are eligible to reimburse expenses incurred by SPONSOR staff and consultant staff for environmental study costs, including determination of the appropriate environmental document, preparation of all preliminary engineering for each alternative, including geometric layouts, determination of right-of-way needs, environmental technical studies (such as air, noise, energy, cultural resources and hazardous waste), and all other studies or activities necessary to prepare and to finalize the appropriate environmental document for approval. Allocations for environmental studies are noted in SPECIFIC AGREEMENT. (Note: This is generally the amount estimated in the original PLAN cost estimates or if no estimate was included then 9% of the construction cost to cover Environmental Analysis, Environmental Document Preparation and the associated Preliminary Engineering.) Design Costs ACTIA funds are eligible for expenses incurred by SPONSOR staff and consultant staff for design activities related to the PROJECTS scope identified in the PLAN. These activities include preparation of alternative design studies; materials and foundation reports; drainage, hydrology and hydraulic reports; management oversight; surveying and mapping; preparation of the plans, specifications and estimate; preparation of bid documents and files for PROJECTS; preparation of permit applications and maintenance agreements; coordination of agency reviews and any other activities necessary to prepare final PS&E for bid advertisement and award. If the SPONSOR wishes to include items of work not covered under the description of PROJECTS, the cost for including the additional work shall be segregated and the cost borne by the SPONSOR from non-ACTIA fund source. Items of work that would fall into this area would be the correction or betterment of pre-existing non -transportation related items such as drainage, landscaping (beyond Caltrans standards) or pedestrian facilities, unless these were approved as part of the original PROJECTS. Annual expenses incurred for maintenance shall likewise be borne by the SPONSOR from non-ACTIA fund sources. Allocations for design are noted in SPECIFIC AGREEMENT. (Note: This is generally the amount estimated in the original PLAN cost estimates or if no estimate was included then 10% of the construction cost). Right -of -Way Acquisition ACTIA funds are eligible for expenses incurred by SPONSOR staff and consultant staff for all activities related to right-of-way, advanced right-of-way, and hardship acquisitions, including determination of right-of-way needs; title searches; parcel appraisals; hazardous materials disposition; preparation of right-of-way acquisition documents; negotiation with property owners; activities involved with acquiring rights -of -way including condemnation proceedings, right-of-way capital costs, and cost -to -cure impacts related to the acquisition. Page D-2