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EXHIBIT G <br />® Grant No. 209 -3007 <br />Delta Ponds Habitat Restoration <br />STATUTORY DEFINITION OF "CAPITAL EXPENDITURE" <br />and <br />OREGON PREVAILING WAGE RATE LAW <br />Capital Expenditure <br />(4) "Capital expenditures" means direct expenses related to: <br />(a) Personal property of a non - expendable nature including items that are not consumed in the <br />normal course of operations, can normally be used more than once, have a useful life of <br />more than two years and are for use in the enforcement of fish and wildlife and habitat <br />protection laws and regulations; or <br />(b) Projects that restore, enhance or protect fish and wildlife habitat, watershed functions, <br />native salmonid populations or water quality, including but not limited to: <br />(A) Expenses of assessment, research, design or other technical requirements for the <br />implementation of a project; <br />(B) The acquisition of determinate interests, including fee and less than fee interests, in <br />land or water in order to protect watershed resources, including appraisal costs and <br />.other costs directly related to such acquisitions; <br />(C) Development, construction or implementation of a project to restore, enhance or <br />protect water quality, a watershed, fish or wildlife, or riparian or other habitat; <br />(D) Technical support directly related to the implementation of a project; and <br />(E) Monitoring or evaluation activities necessary to determine the actual effectiveness of <br />a project. <br />Oregon Prevailing Wage Rate Law <br />Grantees may be required to comply with Oregon's prevailing wage rate law. ORS 279.348 - <br />279.380. This law requires that entities using public funds for public works must pay not less <br />than the prevailing rate of wage for an hour's work, including fringe benefits, in the same <br />trade in the locality where the work is performed. Contracts not exceeding $50,000 are <br />exempt from prevailing wage rate laws and nonprofit organizations are exempt for work <br />other than construction. Public works is defined as including "roads, highways, buildings, <br />structures and improvements of all types, the construction, reconstruction, major renovation <br />or painting of which is carried on or contracted for by any public agency to serve the public <br />interest ..." ORS 297.348(3). Construction is defined as "the initial construction of <br />buildings and other structures, or additions thereto, and of highways and roads." <br />OAR 839 - 025- 0004(5) <br />Failure to comply with prevailing wage rate laws could result in a Grantee being liable to the <br />workers affected in the amount of their unpaid minimum wages, including all fringe benefits, <br />and in an additional amount equal` to unpaid wages as liquidated damages. <br />Information regarding prevailing wage rate law can be found on the Bureau of Labor and <br />Industries website at www.oregon.gov /BOLI /WHD /PWR/W PWR Pwrbk.shtnzl <br />07 -09 Capital 08.01.08.doc j 14 <br />