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(7) Cost of vehicle fuel and maintenance for the time the vehicle(s) are <br /> specifically used for this Project. <br /> <br /> INELIGIBLE PROJECT COSTS. All costs which are not eligible for <br />state assistance pursuant to State laws, rules, regulations, guidelines or this <br />Contract, even though incurred by the Grantee, including those that are deemed <br />by the State to be unreasonable or unnecessary. Such costs include, but are <br />not limited to: <br /> <br />(1~ Bonus payments for early completion of the Project. <br /> <br />(2) <br /> <br />Personal injury compensation or damages arising out of or connected <br />with the Project, whether determined by adjudication, arbitration, <br />negotiation or otherwise. <br /> <br />(3) Fines and penalities due to violation of or failure to comply with <br /> Federal, State or local laws and ordinances. <br /> <br />Costs outside the scope of the approved Project. <br /> <br />(5) Interest on bonds or any other form of indebtedness required to <br /> finance Project costs. <br /> <br />(6) <br /> <br />Ordinary operating expenses of the Grantee, such as salaries and ex- <br />penses of management personnel, except as specifically approved in. <br />writing by the State Program Manager. <br /> <br />(7) Water audits or Ieak detection surveys on any distribution lines or <br /> other facilities not owned, leased or under the control of Grantee. <br /> <br />(8) Preparation of applications. <br /> <br />(9) Preparation of reports required by this Contract (Section 3, Task IV). <br /> <br />(10) All costs incurred in violation of the terms, provisions, <br /> conditions or commitments of this Contract. <br /> <br />(11) AZl costs arising out of, or attributable to, Grantee's malfeasance, <br /> misfeasance, mismanagement or negligence; <br /> <br />(12) <br /> <br />AII costs arising out of, or connected with contractor claims <br />against the Grantee; or those persons for whom the Grantee may be <br />vicariously liable, including, but not limited to, any and a!]. costs <br />related to defense or settlement of such claims. <br /> <br />(13) Repair of detected leaks. <br /> <br />Costs incurred before or after the term of this Contract. <br /> <br />12 Contract B-550e~ <br /> <br /> <br />