(1) The municipality must comply with all applicable state laws, regulations and requirements, such as Oregon prevailing wage rates, municipal audit law, and procurement regulations.(2) The municipality shall certify that a registered professional engineer will be responsible for the design and construction of the project and it shall follow standard construction practices, such as bonding of engineers and contractors, requiring errors and omissions insurance, performing testing and inspections during construction, and obtaining as-built drawings.(3) For a project funded with state lottery proceeds, the municipality shall comply with ORS 280.518 (Display of information that program is financed by State Lottery) for public display of information on lottery funding of the project. At a minimum the municipality shall:(a) Include the following statement, prominently placed, on all plans, reports, bid documents and advertisements relating to the Project: “This project was funded in part with a financial award from the Water Fund, funded by the Oregon State Lottery and administered by the State of Oregon, Business Development Department.” and(b) For a construction project, post a sign, provided by the Authority, at the project site or, if more than one site is included in the project, at a site visible to the general public stating that the project is being funded by lottery proceeds.(4) For a construction project the municipality shall have a plan for ongoing operation, maintenance, and replacement that will preserve the project’s benefits over its useful life.