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HomeMy WebLinkAbout1978-06-07; City Council; 3500-3; Encina water pollution control facility expansion Phase III Upgrading and ExpansionCITY OF CARLSBAD AGENDA BILL NO. *** DATE: June 7, 1978 DEPARTMENT: Public Works - Joint Advisory Committee Subject:ENCINA WATER POLLUTION CONTROL FACILITY - PHASE III UPGRADING AND EXPANSION Statement of the Matter The Environmental Protection Agency (EPA), via the State Water Resources Control Board (SWRCB), has given us concept approval on the Phase III project. Upon receipt of a Step 2 (design) grant offer, we will have approximately one year in which to design the project. The Vista Sanitation District (VSD) is the lead agency on this project. The existing Step I preliminary study, Contract VSD-100, between VSD and Brown and Caldwell (B&C) authorizes the negotiation of a design contract with B&C. The JAC has reaffirmed its intention to exercise this condition and has negoti- ated the attached contract. Because the EPA requires certain wording in these contracts, Exhibit "C" to the contract is included as a part thereof. This exhibit incorporates Title 40, which contains many of the provisions we normally include in our contracts. This contract differs from our normal contracts in two respects. First, it is cost plus fixed fee rather than lump sum. Second, it is in three distinct parts. The first part takes design to the 10% level, at which time it is evaluated by the Value Engineering Team (a federal requirement). The second part takes it through completion. The third part is for special engineering services, as directed. The budget for the work is as follows: Preliminary Design Services (cost ceiling plus fixed fee) $ 210,776.00 Step 2 Services •" " " " " 1,281,520.00 Special Engineering Services 200,000.00 Exhibits: 1. Letter from JAC counsel dated May 4, 1978 2. Resolution No. Recommendation: If Council concurs, adopt Resolution No.^J'yjM approving and authorizing the Vista Sanitation District to enter into a contract with Brown and Caldwell for design services for the Phase III upgrading and expansion of the Encina Water Pollution Control Facility. Council action 6-7-78 Resolution #5433 was adopted, approving and authorizing the Vista Sanitation District to enter into a contract with Brown and Caldwell for design services for the Phase III upgrading . and expansion of the Encina Water Pollution Control Facility. RUSSELL W. WALKER ROY H. QANN WALKER AND GANN ATTORNEYS AT LAW 333 - SOUTH JUNIPER, SUITE - 214 POST OFFICE BOX 788 ESCONDHM). CAI.IH'OKMA U2O2K May 4, 1978 TELEPHONE 743-3022 AREA CODE 714 City Council City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Attention: A.J. Skotnicki Re: Approval of Proposed Agreement between Vista Sanitation District and Brown & Caldwell for Phase III Design Engineering. Dear Mr. Skotnicki: Enclosed please find a Resolution which, when adopted by your City Council , will authorize Vista to enter into the proposed contract with Brown & Caldwell for design engineering of Phase III enlargement and upgrading of the Encina Water Pollution Control Facilities. Any action that may be taken to expedite adoption of the Resolution will be for the best interests of all agencies involved. It is respectfully requested that a conformed copy of the adopted Resolution be sent directly to Vista Sanitation District, and a copy of the accompanying cover letter be directed to the undersigned in order that communication be kept current. A similar resolution is transmitted herewith to all members of the Joint Powers Agreement. Your cooperation is appreciated. Very truly yours, WALKER & GANN RHG:dr Enclosure RECEIVED MAY 1 2 1978 CITY OF CARLSBAD Engineering Department RESOLUTION NO. 54331 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE EXECUTION OF AN AGREEMENT BETWEEN 3 VISTA SANITATION DISTRICT AND BROWN AND CALDWELL FOR ENGINEERING SERVICES IN CONNECTION WITH PHASE III ENLARGEMENT 4 AND UPGRADING OF THE ENCINA WATER POLLUTION CONTROL FACILITY 5 WHEREAS, the Vista Sanitation District has planned for engineering ser- 6 vices for the Phase III enlargement and upgrading of the Encina Water Pollution 7 Control Facility (hereinafter referred to as the "Project"); and 8 WHEREAS, Vista Sanitation District and other public agencies have entered 9 into a Joint Powers Agreement, pursuant to Chapter 5 of Division 7 of Title 1 10 of the Government Code for the joint exercise of powers and the acquisition, 11 construction and operation of facilities for the transmission, treatment and 12 disposal of sewage, which facilities comprise a single system of sanitation 13 works and includes any expansion of such facilities by virtue of the Project 14 which is the subject of this Agreement; and 15 WHEREAS, by a duly authorized and executed Supplemental Agreement to the 16 aforesaid Joint Powers Agreement, Vista Sanitation District has been, and 17 presently is, authorized to enter into the Agreement that is the subject of 18 this Resolution, as well as to act as the administrator in connection with the 19 subject Project; and 20 WHEREAS, it is necessary and desirable to expand and upgrade the Encina 21 Water Pollution Control Facility (EWPCF) to meet environmental protection re- 22 quirements of applicable regulatory bodies; and 23 WHEREAS, Vista Sanitation District is receiving a grant from the U.S. 24 Environmental Protection Agency for the proposed Project, and desires that 25 the Agreement with Brown and Caldwell shall be in accordance with the Amend- 26 ments to Title 40 of the Code of Federal Regulations, Part 35, as published 27 in the Federal Register of December 17, 1975; and 28 xx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, at a regular meeting of the Joint Advisory Committee held on April 26, 1978, a motion was duly made, seconded and unanimously adopted that Vista Sanitation District be authorized to enter into the Agreement attached hereto marked Exhibit "A"; and WHEREAS, some of the parties to the aforesaid Joint Powers Agreement have heretofore expressed a desire to peruse the contracts proposed to be entered into for engineering services in connection with enlargement and up- grading of the Encina Water Pollution Control Facility; and WHEREAS, changes in energy considerations and technological progress since completion of the 1975 project report require a review of said report; and WHEREAS, the Agreement attached hereto marked Exhibit "A" contains, among other things, provisions for such review; and WHEREAS, it appears that the health and welfare of the public will best be served by authorizing Vista Sanitation District to enter into the aforesaid Agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad as follows: Section 1: That the Board of Directors of the Vista Sanitation District be, and is, hereby authorized to enter into a contract with Brown and Caldwell in the form and substance as that attached hereto marked Exhibit "A". xx xx xx xx xx xx -2- 1 a 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at an adjourned regular meeting of the City Council of the City of Carlsbad held on the 7th day of June, 1978, by the fol- lowing vote, to wit: AYES: NOES: ABSENT: None Councilmen Packard, Skotnicki, Anear and Councilwoman Casler None RONALD C. PACKARD, Mayor ATTEST: -3- c AGREEMENT FOR STEP 2 ENGINEERING-SERVTCES BETWEEN VISTA SANITATION DISTRICT AND BROWN AND CALDWELL FOR PHASE III ENLARGEMENT AND UPGRADING OF THE ENCINA WATER POLLUTION CONTROL FACILITY THIS AGREEMENT made and entered into as of the day of 1978 by and between the VISTA SANITATION DISTRICT, a county sanitation district, hereafter referred to as "District" or "Owner", and BROWN AND CALDWEIt, a California corporation, hereafter referred to as "Engineer": WITNESSETH: WHEREAS, the District has planned for engineering services for the Phase III Enlargement and Upgrading of the Encina Water Pollution Control Facility (herein- after referred to as the "Project"); and WHEREAS, District and other public agencies have entered into a Joint Powers Agreement, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code for the joint exercise of powers and the acquisition, construction and operation of facilities for the transmission, treatment, and disposal of sewage which facilities comprise a single system of sanitation works and includes any expansion of such facilities by virtue of the project which is the subject of this Agreement; and WHEREAS, by a duly authorized and executed Supplemental Agreement to the aforesaid Joint Powers Agreement, District has been, and presently is, authorized to enter into this Agreement as well as to act as the administrator in connection with the subject Project; and WHEREAS/ it is necessary and desirable to expand and upgrade the Encina Water Pollution Control Facility (WPCF) to meet environmental protection requirements of applicable regulatory bodies; and WHEREAS, District is receiving a grant from the U.S. Environmental Protection Agency for the proposed project, and desires that this Agreement shall be in accord- ance with the Amendments to Title 40 of the Code of Federal Regulations, Part 35, as published in the Federal Register of December 17, 1975; and WHEREAS, Engineer has available and offers to provide personnel and facilities necessary to accomplish the work within the required time; and WHEREAS, such available and offered personnel include the following categories of professional employees whose services are available for work on this project for the approximate number of manhours over the project period as follows: EXHIBIT A faiiUM .-garm cPreliminary Design Services T<=ihnr Category Chief Engineer Managing Engineer Supervising Engineer Principal Engineer Senior Engineer Engineer -2- Approxlmate manhours 141 584 348 240 996 840 NOW/ THEREFORE, District and Engineer agree as follows: I. Scope of Engineering Services Engineer agrees to perform those services which are more particularly de- scribed hereafter. Unless modified in writing by the party to be charged, duties of Engineer shall not be construed to exceed those services specifically set forth herein.. A. Planned Engineering Services Engineer agrees to perform those tasks described In Exhibit "A" Planned Step 2 Engineering Services, which is attached hereto and incorporated herein by reference. Compensation for planned services shall be as provided in Exhibit "B", which is attached hereto and incorporated herein by reference. B. Special Engineering Services ' . ' District and Engineer agree that certain of the work contemplated to be performed by Engineer cannot be defined sufficiently at the time of execution of this Agreement, and that incidental engineering work related to the project and not covered in Exhibit "A" may be needed during performance of this Agreement. It is intended that such categories of work be classified as Special Engineering Services. Special engineering services may include, but are not limited to, the following: 1. Additional copies of contract drawings, specification and other documents above the number specified to be furnished under Article I .A., Planned Step,2 Engineering Services and handling and mailing of these copies, . 2. Offset printing and binding of reduced plans and specifications. The services shall also include the procurement and supervision of subcontractor retained for this work. 3. Assistance, as requested, to District as expert witness in arbitration or litigation arising from the Implementation of the project. 4. Provision of engineering services and/or the services of Engineer's attorney for the purpose of preparing documentation and presentations incident to any bid protest hearings including those in accordance with 40 CFR 35.939. nirri *•"»>«»«£*•'••'•' -3- . ^ - - '..> • 5. Provide assistance to District during bidding periods to include distribution of plans and specifications, preparation and printing of adden attendance at a pre-bid conference, site tour and Equal Employment Opportunity meeting, tabulation and analysis of results of bidding, . recommendations as to award of construction contract and consultation to District prior to award of construction contract. 6. Plotting, computing and filing descriptions of easements and rights - of-way. 7. Assistance to District in preparing of applications and requests for aid from the state agencies and federal government for construction grants. 8. Assistance to District in obtaining any permits required by local, state or federal governments. -i • 9. Additional copies of operation and maintenance manuals above the num- ber specified to be furnished "under Article I.A., Planned Step 2 Engineer!] Services and handling and mailing of these copies. 10. Preparation and participation in hearings before the State Water Resources Control Board, the Environmental Protection Agency, or other funding or regulatory agencies except as otherwise provided for in Article I.A, Planned Step 2 Engineering Services. 11. Additional engineering services required to Implement recommendations of the Value Engineering (VE) analysis. 12. Designs prepared at the request of the District for alternative methods of treatment or construction than those actually designed. These designs do not include minor changes In design following the 50 percent submittals, providing these minor changes do not conflict with the scope of design services described in Article I.A., Planned Step 2 Engineering Services. 13. Assistance to District in preparing for and meeting with representatives of the SWRCB to discuss Grant Eligibility for the Encina Phase III Project. 14. Detailed field verification of as-constructed conditions. 15. Assistance to District in updating the financial plan and revenue program. 16. Assistance to District regarding Institutional arrangements. /*">».. • • • -4- 17. Provision of additional services associated with the preparation of additional contract documents for "fast tracking" part or parts of the project. 18. Provision of engineering services to assist the District in applying for a modification of the secondary treatment requirements. 19. Assistance to District in preparing the Construction Management Plan required by the State Water Resources Control Board. 20. Assistance as necessary to the construction management consultant. 21. Consultation or other services on matters not otherwise provided in this Agreement. II. Authorization, Progress and Completion Specific authorization to proceed with the work described in Exhibit "A" shall be granted in writing by the District. The Engineer shall not proceed with the work without such authorization. Such authorization shall set forth the date of commence- ment of the work and the schedule of progress and completion. If the authorization to proceed with the work described in Exhibit "A" occurs subsequent to September 30, 1978, it shall constitute an increase in scope of work and Engineer shall be entitled to an appropriate increase in compensation. For special engineering services, the authorization by the District shall be in writing and shall include the definition of the work to be done, the schedule for commencing and completing the work and the basis for compensation for the work. III. Compensation . For the services described in Exhibit "A" which are to be performed by the Engineer, the District agrees to pay, and the Engineer agrees to accept, compen- sation in accordance with the schedules set forth in Exhibit "B". Compensation fpr special engineering services shall be as set forth in the written authorization for special services or as specifically detailed in Exhibit "B". IV. Responsibility of Engineer The Engineer is employed to render a professional service only and any payment made to it is compensation solely for such services as it may render and recommendations it may make in the design of the project. The Engineer makes no warranty, either expressed or implied, as to its findings, recommendations, specifications or professional advice other than they were promulgated after follow- -5.- . ing a practice usual to the engineering profession. The Engineer makes no warranty or representation as to his ability to obtain or assist in the obtaining of grants as contemplated herein other than Engineer will use .his professional skills in attempting to do so. The Engineer shall indemnify and hold the District and all of its officers, principals, agents and employees harmless from any liability for injuries to persons or damage to property which arise from negligent acts by the Engineer in performing services under this Agreement. V. Integration This Agreement represents the entire understanding of District and Engineer as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing signed by the party to be charged. VI. Ownership of Documents Any plans, studies, sketches, drawings or specifications supplied, as herein required, are the property of the District. In the event this contract is terminated, any documents, plans, specifications and drawings shall be delivered forthwith to the District. VTI. Subcontracts Engineer shall be entitled, to the extent determined appropriate by the Engineer, to subcontract any portion of the work to.be performed under this project. Engineer shall negotiate and administer subcontracts in accordance with Provision 11 of Appendix C-l to 40 CFR Part 35, Subpart E as published in the Federal Register on December 29, 1976. The Engineer shall be responsible to the District for the actions of persons and firms performing subcontract work. At the time subcontracted services are anticipated, the Engineer shall notify District of the nature of and need for such services and identify the proposed sub- contracting firm. The Engineer must receive written approval from the District prior to utilization of any subcontractors. The Engineer is authorized by the District to subcontract work having a cost which will not exceed 40 percent of the total amount of compensation due under this Agreement. In the event Engineer desires to subcontract work having a cost in excess of 40 percent, the work shall be subject to the approval of the District and this Agreement shall be amended. VHI. District's Project Officer The District's Project Officer, who shall be empowered to act for the District in accordance with the provisions of this Agreement, where such acts are not con- trary to law or District ordinance, shall be the General Manager of the Encina Water Pollution Control Facility or as appointed by the District. PC. Engineer*s Prolect Officer The Engineer's Project Officer, who shall be empowered to act for the Engineer in accordance with this Agreement in all matters relating to the technical administratior of services to be provided, shall be the Engineer's duly appointed Project Manager for the work. The Project Manager shall be Mr. Graham T. Fraser. In the event Mr. Fraser, for any reason, cannot fulfill the duties of the Engineer's Project Manager, the assignment shall be filled by either Mr. Donald R. Lee or Mr. Michael G. Hoover. The Engineer shall notify the District, in writing, when circumstances require any such change in assignment. Other substitution other than those individuals listed above shall only be with the prior written approval of the District. X. EPA Required Terms and Conditions The "Required Provisions - Consulting Engineering Agreements" as published in the Federal Register dated December 29, 1976 as Appendix C-l to Part 35 of Title 40 of the Code of Federal Regulations, are attached hereto and incorporated herein by reference as exhibit "C". XI. Effective Date This Agreement shall be effective on and from the day and year first above written. IN WITNESS WHEREOF, we have hereunto set our hands and seals. ATTEST: ' VISTA SANITATION DISTRICT By Approved by Resolution No. BROWN AND CALDWELL a California Corporation • on • By ; APPROVED AS TO FORM ,. Vice President Date EXHIBIT "A1 PLANNED STEP 2 ENGINEERING SERVICES The planned engineering services to be provided under this Agreement include: (1) Preliminary Design Services and (2) Basic Step 2 Services. A. Preliminary Design Services Preliminary design services are required to properly accomplish the basic Step 2 services. The following preliminary design tasks shall be performed by Engineer: Task 0 - Management Management of Preliminary Design Services includes supervision of project staff, review of engineering work by managerial level engineers, and correspondence with District. Task 1 - Procurement arid Supervision of Subcontractors Procurement and supervision of subcontractors includes those services necessary for the procurement of subcontractors for both preliminary design services and basic Step 2 services and supervision of of subcontractors providing preliminary design services. Task 2 - Geotechnical Investigations^ Geotechnical investigations over the treatment plant site will be conducted by a qualified geotechnical consultant. The investigations include test borings, soil analyses and founda- tion exploration studies to obtain geotechnical data and recommendations necessary for the project design. Task 3 - Surveys \ Surveying of the Encina WPCF site will be performed by qualified surveyors. The work includes aerial and ground surveys, detailed layout of existing facilities, establishment of ground control work Including lines and grades, base lines, monuments and topography and related office computations and drafting. Task 4_ ~ Preliminary Architectural Preliminary architectural work includes architectural services necessary for the "10 percent design submittal" required by the State Water Resources Control Board. The work includes consultation, preparation of drawings for the 10 percent submittal and attendance at meetings. A-2 Task 5 - Corrosion Protection Study Under this task, the project site conditions will be investigated and a letter report will be prepared to identify the need to provide a corrosion protection system for piping and appurtenances buried tn aggressive soils. Task 6 - Preparation of Preliminary Design Report The work will consist of consultation to the District and preparation of a report which will be an attachment to the Preliminary 10 Percent Design Report (Task 7). The work is necessary because of changes that have occurred in the plant's discharge requirements, changes in technology and changes in costs, particularly energy costs, that have occurred since the project report was written in early 1975. In addition, several high maintenance areas have been identified in the existing plant. These areas are to be evaluated to determine the cost- effectiveness of retaining or replacing the equipment. The subtasks to be performed by the Engineer are as follows: 1. Review of Biological Secondary Treatment Process. The review will update the alternative analysis section of the project report with respect to the selection of biofiltration, activated sludge and a relatively new biological process developed since the project report, i.e. the Rotating Biological Contractors (RBC's). 2. Review of Submerged Launders and Air Skimming. Submerged launders and air skimming were recommended for improved oil and grease removal and for odor control. Recent changes in the grease and oil discharge requirements and reported operating difficulties with submerged launders warrants a review of the need for these systems. The need to add helical skimmers to tanks 1 and 2 and the modification of the helical skimmer in tank 5 will be reviewed. 3. Review of Odor Control Systems. Odorous air collected from the aerated grit tank, primary sedimentation tanks, all open channels, the sludge dewatering building and from the biofilters is recommended, in the project report, to be deodorized in bio- logical scrubbing towers. Recent reported operating difficulties with similar odor removal systems at other locations suggest that a review of the effectiveness and utility of this system compared with other odor removals systems be conducted. This review is needed to insure the most effective system is provided in view of recent cease and desist orders received by the plant for odorous emissions. •4. Review of Screening and Screening Handling Systems. The projec report recommends providing one new mechanically cleaned bar screen and screenings grinding pump and the relocation of the barscreen and grinding pump. Critical depth hydraulic A-3 control sections are recommended to be provided downstream of each screen to improve screen efficiency by reducing the rate of flow through the screen. The screenings grinder pumps discharge the ground screening back into the flow. This review shall determine if the existing mechanically cleaned screen should be replaced or repaired and also determine special fea- tures to be incorporated in the specifications to reduce future screen maintenance. The need for the proposed hydraulic control sections downstream of the screens will also be reviewed, The review will identify and evaluate systems for conveying the screenings to a storage hopper for landfill disposal. Screen control alternatives will also be evaluated. 5. Review of Grit Systems. The project report recommends utiliz- ing recessed impeller centrifugal pumps pumping to centrifugal separators and final washing of the heavy fraction from the centrifugal separator in a helical flight type grit washer. The grit is then discharged to a hopper for landfill disposal. The review will identify and evaluate alternative grit removal, separation, conveying and storage systems. 6. Primary Sludge Pumping Study. The project report does not address primary sludge pumping. Recent maintenance reports indicate reduced sludge pump capacity and extremely high sludge pump maintenance. The study will evaluate other types of primary sludge pumping systems and determine if it is cost- effective to replace the existing primary sludge pumps with new lower maintenance pumps. 7. Sludge Dewaterinq and Cake Handling Study. The project report recommends the addition of a second centrifuge at ground level in the position reserved for it on the existing centrifuge structure. The existing centrifuge is experiencing high maintenance costs. This study will evaluate alternative sludge dewatering techniques to determine the most cost- effective sludge dewatering system for the Phase III expansion. If centrifuges are found to be cost-effective the study will determine if it is cost-effective to elevate both centrifuges to eliminate the need for the conveyor belt systems. 8. Energy Conservation and Reclamation Study. The project report recommends the utilization of sludge gas as a fuel for engines driving on-site power generators, the power so generated to be used for operating other plant equipment. The project report proposed to utilize the heat from the engines as a source of heat for the plant anaerobic digestion process. The study will identify the best alternative for energy utilization in the Encina WPCF. The study shall identify the amount of energy required under various discharge requirements and quantities of sludge gas available under each treatment arrangement. The following will be examined to determine the most cost- effective energy and resource management alternative; a. Full gas management, as proposed in the February 1975 Project Report. b. Utilization of digester gas for digester heating only. c. Sale of excess digester gas. d. Cogeneratlon, in parallel with the electric utility. e. Direct drive of selected plant loads using gas engines. The study will include an evaluation of overall plant energy • and operating costs under each alternative and will include costs associated with providing necessary standby power for reliability as required by EPA regulations. 9. Biofilter Pumping Station Study. The project report recom- mends four constant speed pumps be provided and variable flows be accommodated by hydraulically varying the recycle quantity to maintain a constant hydraulic load to the biofilters. The variation in the recycle rate is achieved by the action of a weir and the limiting hydraulic capacity of the constant speed pumps. Also, this system minimizes the size of the wet well. The study will review and compare the cost and utility of this control system with a system with four constant speed pumps, two variable speed pumps and a wet well/dry well system. 10. Btoflocculation Study. The project report does not include a bioflocculation stage between the biotowers and the secondary sedimentation tanks. The need for such a facility shall be determined. Task 7 - Preparation of the Preliminary 10 Percent Design Report The preparation of the Preliminary 10 Percent Design Report will comply with the State Water Resources Control Board Clean Water Grant Bulletin No. 26. The Preliminary Design Report, prepared under Task 6, will be attached and made part of the Preliminary 10 Percent Design Report for presentation to the Value Engineering (V.E.) team. The information to be prepared, assembled and presented shall be as follows; process schematics, design criteria with supporting calculations regarding process unit sizing, solids balance sheet and preliminary service building floor plans. A-5 Task 8 - Asmstance Associated with V.E. ArHifysis Assistance and consultation, as necessary, to the District and the V.E. team by the Engineer before, during and following the conduct of the V.E. analysis. This work includes the response to the comments and recommendations in the value engineers report, and final preparation of the "10 Percent Design Completion Level Submittal" to the State Water Resources Control Board. Additional preliminary design studies required as a result of V.E. analysis shall be considered a Special Engineering Service. Task 9 - Review Meetings Preparation for, travelling and attendance at meetings requested by the Engineer or District to review the preliminary design services described in the foregoing tasks. Review meetings will include 3 trips to sewerage agencies within California and one trip outside of California to review treatment processes and techniques applicable to the design of the Encina Phase III Expansion. B. Basic Step 2 Services The scope of work in the Basic Step 2 Services shall include (1) design tasks and (2) the draft submittal of the Operations and Maintenance Manual for the Phase III Enlargement and Upgrading of the Encina WPCF. The detailed scope of the Basic Step 2 Services will be defined towards the end of the period scheduled for the conduct of the preliminary design services. C. Time Schedule It is intended that the Preliminary Design Services under this agreement be conducted and substantially completed to prepare a detailed scope of work for the Basic Step 2 Services-. Specific time schedule .for reports to be provided under this Agreement shall be as follows: a. Preliminary 10 Percent Design Report. The 10 Percent Design Report for use by the Value Engineering team shall be submitted to the District .within 100 calendar days following the Notice to Proceed. Up to fifteen copies of the Preliminary 10 Percent Design Report shall be delivered to the District. b. 10 Percent Design Completion Level Submittal. The 10 Percent Design Completion Level Submittal required by the State Water Resources Control Board will be submitted to the District within 10 calendar days following receipt of the Value Engineering Team's comments. This schedule shall not apply if there are additional preliminary design studies required as a result of the V.E. Analysis. Up to fifty copies of the 10 percent submittal shall be delivered to the District. One unbound copy shall be delivered to the District. c. Basic Step 2 Services. The 99 percent submittal of the design tasks will be submitted to the District within 304 calendar days following Notice to Proceed. EXHIBIT "B" COMPENSATION A. Compensation Compensation for services provided under Article I, "Scope of Engineering Services" shall be in accordance with the methods described in this Exhibit and the specific amounts listed in Paragraph C. Compensation Schedule, or as may be later mutually agreed to at the time of authorization. Compensation for each authorized phase of the work or engineering service shall be on the basis of: (1) firm fixed-price, (2) cost reimbursement, (3) hourly rate or as may be later mutually agreed to at the time of authorization: 1. Firm Fixed-Price Basis Compensation for each phase of the work or engineering service authorized on a firm fixed-price basis shall be as listed in Paragraph C, Compensation Schedule, of this Exhibit or as may be mutually agreed upon at the time of authorization. 2., Cost Reimbursement Basis : Compensation for each phase of the work or engineering service authorized on a cost reimbursement basis shall be the cost reimbursement plus a fixed professional fee, as defined herein. a. ^ost Reimbursement _ ( ' The cost reimbursement portion of the compensation shall be the sum of direct labor costs, indirect costs and other direct costs, as herein defined. The cost reimbursement for each designated engineering service shall not exceed the cost ceiling listed in the compensation schedule without formally amending this Agreement. CO Direct Labor Costs Direct labor costs shall be the total number of hours worked on the job by each employee times the regular rate for such employee's labor category. Direct labor costs for principals, who are defined as professional engineers assigned to the corporate staff of Engineer, will be based upon the actual rate of pay for those individuals. Direct labor rates shall be revised annually for periods of October 1 through September 30 to generally reflect relevant changes in the U.S. Department of Commerce Consumer Price Index. (2) Indirect Costs Indirect costs shall be the product of all direct labor costs multiplied by an overhead rate. A billing overhead rate of 1.45 shall be used for interim reimbursement purposes. The Engineer, as soon as possible but not later than ninety (9Q) days after the expiration of his fiscal year, or such other period as may be mutually agreed upon, shall submit to the District a proposed provisional over- head rate or rates for that period based on the Engineer's actual cost experience during that period, together with supporting cost data. Negotiation of provisional overhead rates by the Engineer and the District shall be undertaken as promptly as practicable after receipt of the Engineer's proposal. Allowability of costs and acceptability of cost allocation methods shall be determined in accordance with the applicable portions of the Federal Procurement Regulations, 41 CFR 1-15.4 as in effect on the date of this Agreement. The results of each negotiation shall be set forth in an amendment to this Agreement, which shall specify (1) the agreed negotiated provisional rates (2) the bases to which the rates apply, and (3) the periods for which the rates apply. Pending establishment of negotiated provisional overhead rates for any period, Engineer shall be reimbursed at billing overhead rates as provided in the Agrement, subject to appro- priate adjustment when the negotiated provisional rates for that period are established. To prevent substantial over or under payment, and to apply either retroactively or prospectively, billing overhead rates may, at the request of either party, be revised by mutual agreement. Any such revision of billing over- head rates shall be sot forth in an amendment to this Agreement. Any failure by the parties to agree on any rates under this clause shall be subject to the "Remedies" clause (Provision No. 6, •Exhibit "C") of this Agreement. Negotiated provisional overhead rates negotiated by the parties to this Agreement shall be used to adjust all interim billings as soon as such rates are established. Negotiated provisional overhead rates shall be subject to review and revision by the cognizant audit authority"designated by the EPA Project Officer, and shall be adjusted either upward or downward in accordance with EPA rulings following interim or final audits. Indirect costs for cost reimbursement work under this Agreement shall be the product of direct labor costs multi- plied by the final audited overhead rate. B~2 (3) Other Direct Costs Other direct costs shall be billed at cost and shall include the following: (a) Services directly applicable to the work such as computer rental and ptugramming costs, special consultants, borings, laboratory charges, commercial printing and binding, and similar costs that are not applicable to general overhead. (b) Identifiable reproduction costs applicable to the work such as printing of drawings, photostating, multi~ llthing, printing and similar costs » (c) Identifiable communication expenses such as long distance telephone, telegraph, cable, express charges, and postage other than for general corre- spondence. (d) Living and traveling expenses of employees when away from home office on business connected with work except for automobile travel which shall be billed at the rate of 20 cents per mile. (f) Subcontracted services. Costs described above shall be payable up to a cost ceiling listed in the compensation schedule. In the event the entire scope of work provided for under a cost reimbursement engineering service is not completed within the cost ceiling established for such a service, Engineer shall continue with all or any part of the work for which an amended cost ceiling is established, but not otherwise b. Fixed Professional Fee The fixed professional fee portion of the compensation shall be the amount listed in the compensation schedule and it shall not be increased except in the event there is an amendment to this Agreement that increases the scope of work. 3. Hourly Rate Basis Compensation for each phase of the work or engineering service authorize on an hourly rate basis shall be the sum of direct salary costs and direct non- salary costs, as herein defined. B-3 a. Direct Salary Cost Direct salary cost shall be the total number of hours worked on the job by each employee times an hourly billing rate for such employee's labor category. The hourly billing rate for each employee category shall be the sum of: (1) the regular direct labor rate, (2) the indirect costs rate and (3) a professional fee rate. Direct salary rates shall be revised annually for periods of October 1 through September 30 to generally reflect relevant changes in engineering salary costs and relevant changes in engineering salary costs and relevant changes in the U.S. Department of Commerce Consumer Price Index. b. Direct Nonsalary Cost Direct nonsalary cost shall be actual costs and shall include the following: (1) Services directly applicable to the work such as computer rental and programming costs, special consultants, b.orings, laboratory charges, commercial printing and binding, and similar costs that are not applicable to general overhead. (2) Identifiable reproduction costs applicable to the work such as printing or drawings, photostating, multilithing, printing and similar costs. (3) Identifiable communication expenses such as long distance telephone, telegraph, cable, express charges, and postage other than for general correspondence. (4) Living and traveling expenses of employees when away from home office on business connected with work except for automobile travel which shall be billed at the rate of . 20 cents per mile. (5) Subcontracted services. Compensation for any engineering service on an hourly rate basis shall not exceed the price ceiling listed in the compensation schedule for given service, or if none is shown, shall not exceed the price ceiling agreed to at the time of authorization of the service, without, • approval by the District's Project Officer. In the event the entire scope of work provided for under an hourly rate engineering service is not completed within the cost ceiling established for such service, Engineer shall continue with all or any part of the work for which an increased cost ceiling is established, but not otherwise. B-4 4. Limitation of Cost and Time It is estimated that the cost ceiling (for services authorized on a cost 'reimbursement basis) and the price ceiling (for services authorized on an hourly rate basis) given in Paragraph C of this Exhibit and the time for com- pletion given in the authorization will not be exceeded. The Engineer agrees to use his best efforts to perform the work specified in Article I within the estimated cost and time of completion. If, at any time, the Engineer has . reason to believe that the cost ceiling or price ceiling will be greater or substantially less than the then ceilings indicated in Paragraph C, the Engineer shall notify the District in writing to that effect. The notification will state the revised cost ceiling or price ceiling for performance of the services and, if applicable, the revised time for completion. Such notification will be sub- mitted to the District at the earliest possible date and in no event later than 30 days prior to scheduled completion of the work. The District shall not be obligated to reimburse the Engineer for costs incurred in excess of the estimated cost ceiling or price ceiling set forth in Paragraph C. The Engineer shall not be obligated to continue performance under the agreement or otherwise incur costs in excess of the estimated cost ceiling or price ceiling set forth in Paragraph C, unless and until the District shall have notified the Engineer in writing that such estimated cost ceiling or price ceiling has been increased and shall have specified in such notice a revised estimated cost ceiling or price ceiling which shall thereupon con- stitute the estimated cost ceiling or price ceiling for performance of this agreement. If, after such notification, additional funds are not allotted by the end of the period scheduled for completion, or an agreed date substituted therefor, the District will, upon written request by the Engineer, terminate this agree- ment pursuant to the provisions of the termination clause. The termination date shall be the originally scheduled completion date or an agreed date sub- stituted therefor. If the Engineer, in the exercise of his reasonable judgment, estimates that the funds available will allow him to continue to perform services covered in this agreement for a period extending beyond such date, he shall specify the later date in his request, and the District, at his discretion may terminate this agreement at that later date. B. Payment of Compensation ' Charges determined on the basis of this exhibit shall be billed monthly to the District and payment in full by the District shall be made within a reasonable period of time. Brief monthly project progress reports shall be included with the invoices an shall include a summary of activities related to progress of the project for the invoice period. Monthly invoices shall contain the following information for each type of compensation: B-5 1. Cost Reimbursement Basis For the cost reimbursement portion of the compensation, invoices shall include the following: (1) each labor category and the total number of hours worked by employees in that category, (2) direct labor rate and costs for each labor category, (3) total indirect costs, and (4) each general category of other direct costs. For the fixed professional fee portion of the compen- sation, invoices shall include the percent of the total fixed professional fee to be paid each month in accordance with the tabulated amounts shown for each engineering service listed in the compensation schedule. 2. Hourly Rate Basis Invoices for engineering services authorized on an hourly rate basis shall include the following: (1) each labor category and the total number of hours worked by employees in that category, (2) the hourly billing rate and costs for each labor category, and (3) each general category of other direct costs. C. Compensation Schedule For each engineering service authorized under this Agreement, compensation shall be in accordance with the applicable portions of this Agreement and the following schedule: 1. Planned Engineering Services Compensation for the planned engineering services (Article I.A.) shall be as follows: a. Preliminary Design Services (Exhibit "A", Paragraph A) Basis of compensation: Cost Reimbursement Cost ceiling $ 189,004 Fixed professional fee $ 21,772 Portion of fixed professional fee, payable monthly 1/4 b. Basic Step 2 Services (Exhibit "A", Paragraph B) Compensation for these services shall be on a cost reimbursement basis. The compensation shall be determined by mutual agreement' between District and Engineer prior to authorization. A maximum allowance (cost ceiling plus fixed professional fee) of $ 1,281,520 shall be established for these services. The District's Project Officer may authorize the engineer to proceed with these services provided the agreed upon compensation is no greater than this maximum allowance. B-6 This allowance shall not be increased without an Amendment to this Agreement that has been approved by all the member agencies in the Encina Joint Powers. 2. Special Engineering Services Compensation for special engineering services (Article I.E.) shall be agreed to at the time of authorization. An allowance of $ 200,000 shall be established for such special engineering services as may be authorized by the District's Project Officer in accordance with Article II. This allowance shall not be increased without an amendment of this Agreement. B-7 EXHIBIT "C" RULES AND REGULATIONS Title 40—Protection of Environment CHAPTER I—ENVIRONMENTAL PROTECTION AGENCY SUBCHAPTER B—GRANTS (FBI, 655-2] PART 35—STATE AND LOCAL ASSISTANCE • Subagreements Under Grants for Con- struction of Treatment Works; Technical Amendments APPENDIX C-l PROVISIONS — C7ON3OT.TINO ENCINEMINO AGREEMENTS I. General. •2. Responsibility of the engineer.3. Scope of work.4. Changes.6. Termination. 0. Remedies. V. Payment.8. Project design. 9. Audit; access to records. 10. Price reduction for defective cost orpricing data. II. Subcontracts.12. Labor standards.13. Equal employment opportunity. 14. Utilization of small or minority busi-ness. •15. Covenant against contingent lees.16. Gratuities.17. Patents. 18. Copyrights and rights in data. * 1. GENERAL . (a) The Owner and the Engineer agree that the following provisions shall apply to .the EPA grant-eligible work to be performed under this agreement and that such pro-visions shall supersede any conflicting pro- visions of this agreement. (b) The work under this agreement Isfunded In part by a grant from the U.S. En- vironmental Protection Agency. Neither theUnited States nor the U.S. EnvironmentalProtection Agency ( hereinafter, "EPA") Is a party to this agreement. This agreementwhich covers grant-eligible work is subject to regulations contained in 40 CF& 35.936,35.037. and 35.939 in effect on the date ofexecution of this agreement. As used In these clauses, the words "the date of execution ofthis agreement" meau the date of execution of this agreement and any subsequentmodification of the terms, compensation or scope of services pertinent to unperformedwork. (c) The rights and remedies of the owner provided for in these clauses are in additionto any other rights and remedies providedby law or under this agreement. 2. RESPONSIBILITY or THE ENGINEER (a) The Engineer shall be- responsible forthe professional quality, technical accuracy,timely completion, and the coordination ofall designs, drawings, specifications, reports. and other services furnished by the Engineerunder this agreement. The Engineer shall, without additional compensation, correct or revise any errors, omissions or other deficien-cies In his designs, drawings, specifications, reports and other services. (b) The Engineer shall perform such pro-fessional services as may be necessary to ac-complish the work required to b« performed under this agreement. In accordance wltb.this agreement a)id applicable EPA require-ments in effect on the date of execution of this agreement.(c) Approval by the Owner or EPA ofdrawings, designs, specifications, reports, and Incidental engineering work or materials fur- nished bereunder shall not In any way re-lieve the Engineer of responsibility for thetechnical adequacy of his work. Neither th« Owner's nor EPA's review, approval or ac-ceptance of, cor payment for, any of the serv- ices shall be construed to operate as a waiver of any rights under this agreement or of anycause of action arising out of the perform-ance of this agreement. (d) The Engineer shall be and remain li-able In accordance with applicable law forall damages to the Owner or EPA caused by the Engineer's negligent performance of anyof the services furnished under this agree-ment, except for errors, omissions or other deficiencies to the extent attributable to theOwner, Owner-furnished data or any thirdparty. The Engineer shall not be responsible • lor any time delays In the project caused byciroumsta.nces beyond the Engineer's control.Where new or-advanced processes, methods or technology (see 40 CFR 35.908) are recom-mended by the Engineer and are utilized, theEngineer shall be liable only for gross negli- gence to the extent of such utilization. 3. SCOPE OP WORK The services to be rendered by the Engineershall include all services required to com-plete the task or Step in accordance with ap- plicable EPA regulations (40 CFR Part 35,Suboart E in effect on the.date of executionof this agreement) to the extent of the scope of work as denned and set out In the engi- neering services agreement to which theseprovisions ere attached. 4. CHANGES (a) The Owner may, at any time, by writ- ten order, make changes within the generalscope of this agreement In the services orwork to be performed. If such changes causean Increase or decrease. in the Engineer'scost of, or time required for, performance of any services under this agreement, whetheror not changed by any order, nn equitableadjustment shall be made and this agree- ment shall be modified in writing accord-ingly. Any claim of the Engineer for adjust-ment under this clause must be asserted In writing within at) days from the date of re-ceipt by the Engineer of the notification ofchange unless the Owner grants a furtherperiod of time in-fore the date of final pay- ment under this agreement. COPY FEDERAL REGISTER, VOt. 41, NO. 251— WEDNESDAY. DECEMBER 29, Iv76 C-l RULES AND REGULATIONS />•) No. services for which an additional«vjmp»iuu»tlon will be charged by the Engi-•i.nr shall b« furulahed without the writtenauthorization ot the Owner. (c) In th» event that there la a modifica- tion of EPA requirements relating to thenervlces to be performed under this agree- ment subsequent to the data of execution ofthis, agreement, the increased or decreasedcost of performance of the service* provided for In this agreement shall b« reflected in anappropriate modification of this agreement. 5. TERMINATION (a) This agreement may be terminated in whole or in part In writing by either party inthe event of substantial failure by the otherparty to fulfill its obligations under this agreement through no fault of the terminat-ing party: Provided, That no such termina- tion may be effected unless the other partyis given (1) not less than ten (10) calendar days written notice (delivered by certifiedmail, return receipt requested) of Intent to terminate and (2) an opportunity for con-sultation with, the terminating party prior to termination. (b) TUU agreement may be terminated inwhole or in part In writing by the Owner for iU convenience: protected. That suchtermination ia for good cause (such as forlegal or financial reasons, major changes inthe work or program requirements, initiation of a new Step) and that the Engineer is given (.1) not less than ten (10) calendar dayswritten notice (delivered by certified mall, return receipt requested) of intent to termi- nate nod (2) An opportunity for consulta-tion with the terminating party prior to termination.(c) If termination for default is effected by the Owner, an equitable adjustment inthe prlco provided for In this agreement shallbe made, but (1) no amount shall be allowed for anticipated profit on unperformed serv-ice* or other work, and (2) any payment due to the Engineer at the time of germination may be adjusted to the extent of any addi-tional cost* occasioned to the Owner by rea-son ot the Engineer's default. If terminationfor default U effected by the Engineer, or if termination for convenience is effected bythe Owner, the equitable adjustment shall Include a reasonable profit for services orother work perfftrmed. The equitable adjust-ment for any termination shall provide for payment to the Engineer for services ren-dered and expenses incurred prior to the tcrmlnaUon. in addition to termination set-"CTfitn* ccct* r"**^cn*??!r Iric'irro^ by ths En- gineer relating to commitments which hadbecome Arm prior to the termination.(d) Upon receipt of a termination actionpursuant to paragraphs (a) or (b) above, the {engineer shall (1) promptly discontinue oliservices affected (unless the notice directsotherwise), and (2) deliver or otherwise make availabln to the Owner all data, drawings,specifications, reports, estimates, summaries.and such other information and materials as may have been accumulated by the Engineerin performing this agreement, whether com- pleted or in. process.' (e) Upon termination pursuant to para-graphs (a) or (b) above, th« Owner may take over the work and prosecute the same tocompletion by agreement with another party or otherwise. Any work taken over by theOwner for completion will be completed at the Owner's risk, and the Owner will holdthe Engineer from all claim* and arising out of Improper use of the Engineer's work. (J) If. utter termination for failure of th» Engineer to f ulflll contractual obligations. Itis dotermlntrtl that the" Engineer had not so failed, the termination shall he deemed t-> have been effected for the convenience of theOwner. In such event, adjustment of the' price provided for In this agreement shall benude as provided in paragraph (c) ot thisclause: 6. REMEDIES Except as may be otherwise provided Inthis agreement, all claims, counter-claims, dLtputes and other matters In question be-tween the Owner and the Engineer arising •out ot or relating to this agreement or thebreach thereof will be decided by arbitration if the parties hereto mutually agree, or In acourt of competent jurisdiction within the State in which the Owner is located. 7. PAYMENT (a) Payment shall be made in accordancewith the payment schedule incorporated in this agreement as soon as practicable uponsubmission, of statements requesting pay-ment by the Engineer to the Owner. If nosuch payment schedule is incorporated inthis agreement, the payment provisions, of. paragraph (b) of this clause shall apply.(b) Monthly progress payments may be re-quested by the Engineer and shall be made by the Owner to the Engineer as soon as prac-ticable upon submission of statements re-questing payment by the Engineer to theOwner. When such progress payments are made, the Owner may withhold up to tenpercent of the vouchered amount until sat- isfactory completion by the Engineer of workand services within a Step called for under this agreement. When the .Owner determinesthnt the work under this agreement or any specified task hereunder is .substantiallycomplete and that the amount of retained percentages is in excess of the amount con-sidered by him to be adequate for the pro- tection of the Owner, he shall release to theEngineer such excesss amount. (c) Mo payment request made pursuant toparagraph (a) or (b) of this clause shall exceed the estimated amount and value ofthe. work and services performed by the En- gineer under this agreement, which esti-mates shall be prepared by the Engineer and supplemented or accompanied by ouch sup-porting data as may be required by. the Owner.(d) Upon satisfactory completion" of the work performed hereunder, and prior to finalpayment under this agreement for suchwork, or prior settlement upon terminationof the agreement, and as a condition prec- edent thereto, the Engineer shall execute•and deliver to the Owner a release of allclaims against the Owner arising under or byvirtue of this agreement, other than ouchclaims, if any, as may be specifically ex- empted by the Engineer from the operationot the release In stated amounts to be set forth therein. B. PROJECT DLSICN (a) In the performance of this agreement, the Engineer shall, to the extent practicable,provide for maximum use of structures, ma-chines, products, materials, constructionmethods, and equipment which are readilyavailable through competitive procurement, or through,standard or proven productiontechniques, methods, and processes, consist-ent with 40 CFB 35.036-3 and 35.936-13 in effect on the dute ot execution of this agree-ment, except to the extent that advanced technology may be utilized pursuant to 4.0CFB 35.008 in effect on the date of execution of this agreement.(b) The Engineer shall not, in the per- formance of tho work culled for r>y thisagreement, produce a desi(jn or specification such as to require the use of structures,machines, products, materials, constructionmethods, equipment, or processes which are known by the Engineer to be available onlyfrom a sole source, unless such use has beenadequately justified in writing by the Engi-neer.(c) The Engineer shall not, in the per-formance of the work called for by thisagreement, produce a design or specificationwhich would be restrictive in violation ofSec. 204(a) (6) of the Federal Water Pollu- , Uon Control Act (PL 02-600). This statuterequires that ixo specification for bids orstatement of work shall be written in sucha manner as to contain proprietary, exclu-sionary, or discriminatory requirements other • than those based upon performance, unlesssuch requirements are necessary to teat or demonstrate a specific thing, or to providefor necessary interchangeablllty of parts andequipment, or at least two brand names or trade namea of comparable quality or utilityare listed and are followed by the. words "orequal." With regard to materials, if a single• material is specified, the Engineer must b» prepared to substantiate the barta for theselection of the material. (d) The Engineer shall report to the Ownerany sole-Bource or restrictive design or spec- ification giving the reason or reasons whyit is considered necessary to restrict thedesign or specification.(e) The Engineer shall not knowingly spec- ify or approve the performance of work ata facility which is in violation ot Clean Airor Water standards and which 1s listed by the Director of the EPA Office of Federal Activi-ties pursuant to 40 OFB Part 15. 9. Auorr; ACCESS TO RXCOEDS, (a) The Engineer shall maintain books, records, documents and other evidence di-rectly pertinent to performance on EPA grant work under tills agreement in accord-ance with generally accepted accountingprinciples and practices consistently applied,and 40 CFR 30.C05, 30.805, and 35,935-7 ineffect on the date ot execution of this agree-ment. The Engineer shall also maintain the financial information and data used by theEngineer in the preparation or support of «the cost AUbmission required pursuant to 40CFB 35.937-6(b) in effect' on the date ofexecution of this agreement and a copy ofthe cost summary submitted to the Owner. The United States Environmental ProtectionAgency, the Comptroller General of theUnited States, the United States Departmentof Labor, Owner, and (the State water pollu-tion, control agency) or any of their duly authorized representatives shall have aeeessto such books, records, documents and other evidence for tho purpose of Inspection, auditand copying. The Engineer will provide prop-,er faculties for such access and Inspection.' (b) The Engineer agrees to Include para-graplis (a) through (e) of this clause ui all his contracts and all tier subcontracts di-rectly related to project performance which ore in excess of $10,000.(c) Audits conducted pursuant to tMs pro-vision shall be In accordance with generally accepted auditing standards and establishedprocedures and guidelines of the reviewingor audit agency (les). (d) The Engineer agrees to the disclosure of all information and reports resulting fromaccess to records pursuant to paragraphs (a> and (b) above, to any of the agenciH, re-ferred to in paragraph (a) above, provided that the Engineer is afforded the opportunityfor an audit exit conference and an opportu-nity to comment and submit any Buprx.nln,;tlocxunentatlou on the pertlm-ut portions of the draft audit report and that the finalaudit report will Include written commentsot reasonably length, if any, of the Engineer. (e) Ifccordu under paragraphs (a) and (b) above »Uhll be maintained and made avail- FEDERAL REGISTER. VOl. 41. NO. 251—WEDNESDAY, DECEMBER 29, 1976 C-2 able during performance- on EPA grant work under thU agreement and untu three yearsfrom date of ttnal EPA grant payment for theproject. In addition, those records which re-late, to any "Dispute" appeal under an EPA grant agreement, or litigation, or the settle- ment of claim* arising out of such perform-.•nc», or costs or Items to which an-auditexception ha* been taken, Khali be main. tamed and. made available until three yeanafter the date of resolution of such appeal,litigation, claim or exception. 10. PMC* BxDucnoM Kin Dencnva COST OBPWCIKO DATA ' (This clause it applicable if the amount ofthii agreement exceeds $100,000.) (a) If the Owner or EPA determines that- any price, including profit, negotiated Inconnection with thU agreement or any costreimbursable under this agreement waa In- creased by any significant sum* because tt»Engineer or any subcontractor furnished In- 'complete or Inaccurate cost or pricing data or data not current as certified in his certifi-cation of current cost or pricing data (EPA Form 6700-41), then such prie» or cost orprofit shall t>e reduced accordingly and theagreement-shall be modified In writing to re- flect such reduction.(b) Failure to agree on a reduction shallbe eubject to the Remedies clause of this agreement. (NOTE—Since the agreement it subject to reduction under this clause by reafon of de-fective cott or pricing data submitted in con- ncctto» with certain subcontracts, the Engi- neer may wish to include o clause in eachtuch subcontract requiring the subcontractor to appropriately indemnify the Engineer. Itfa alto CTpectedJhat any subcontractor tub-feet to tuch indemnification will generally•require substantially similar indemnification for defective cost or pricing data required tobe submitted by hit lower tier subcontrac- tort.) II. SUBCONTRACTS (a) Any subcontractors and outside asso-ciates or consultants required by the Engi- neer In connection with the services covered by this agreement will be limited to suchIndividuals or firms as were specifically identified and agreed to during negotiations, or as are specifically authorized by the Ownerduring the performance of this agreement. Any substitutions in or additions to suchsubcontractors, associates, or consultantswill be subject to the prior approval of theOwner.(b) The Engineer may not subcontractservices in excess of thirty percent (orpercent. If the Owner and the Engineerhereby agree) of the contract price to sub-contractors or consultants without prior written approval of the Owner. , 13. LABOB STANDARDS To the extent that this agreement Involves "construction" (as defined-by the SecretaryOf t*bor). the Engineer agrees that such construction work shall be subject to the fol- lowing labor standards provisions, to theextent applicable:(a) Davis-Bacon Act (40 0.S.C. 278a-378a- 7): (b) contract Work Hours and Safety Standards Act (40 U.8.C. 327-333); (c) Copeland Anti-Kickback Act (18 UJ3.O.874); and (d) Executive Order 11246 (Equal Employ-ment. Opportunity); and implementing rule*.' regulations, and relevant order* of the Secretary of Labor orEPA; and the Engineer further agrees that•V.tft "ipr-omont ibcll Ini-lurt" nn»l r^ nubjectto the "Labor Standards Provisions for Fed-erally Assisted Construction .Contract*" (EPA RULES AND REGULATIONS Form 6720-4) in effect at the time of execu- tion of-this agreement. 13. EQUAL EMPLOYMENT OPPORTUNITY In accordance with EPA policy as expressed in 40 CPR 30.420-6, the Engineer agrees thathe will not discriminate against any em- ployee or applicant for employment because of race, religion, color, sex, age or nationalorigin. 14. TJTUJZATION or SMAU. AND MINORITYBUSINESS In accordance with EPA policy as expressed in 40 CPR 35.936-7, the Engineer agrees that qualified small business and minority busi-ness enterprises shall have the maximum practicable-opportunity to participate In theperformance of EPA grant-assisted contractsand subcontracts. 19. COVENANT AGAINST CONTINGENT FEES The, Engineer warrants that no person orselling agency baa been employed or retained to solicit or secure this contract upon anagreement or understanding for a commis- sion, percentage, brokerage, or contingentfee, excepting bona fide employees. For breachor violation of this warranty the Owner shall have the right to annul this agreement with-out liability or in' its discretion to deductfrom the contract price or consideration, or otherwise recover, the 'full amount of suchcommission, percentage, brokerage, or con- tlngen,t fee. • 16. GRATUITIES (a) If it Is found, after notice and hearing,by the Owner that gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by the Engineer, or any agent or representative of the Engineer, to anyofficial, employee or agent of the Owner, ofthe State, or of EPA with a view toward se- curing a contract or securing favorable treat- ment with respect to the awarding or amend-ing, or the making of any determinationswith respect to the performance of this agree-ment, the Owner may, by written notice to the Engineer, terminate the right of theEngineer to proceed under this agreement ormay pursue such other rights and remediesprovided by law or under this agreement: Provided, That the existence of the facts upon which the Owner makes such findingsshall be In issue and may be reviewed in pro- ceedings pursuant to the Remedies clause of this agreement.(b) In the event thin agreement is termi-nated as provided In paragraph (a) hereof,the Owner shall be entitled (1) to pursuethe same remedies against the Engineer as it could pursue in the event of a breach of thecontract by the Engineer, and (2) as a pen-alty in addition to any other damages to which it may be entitled by law. toexemplary damages in an amount (as deter- mined by the Owner) which shall be not less than three nor more than ten times thecosts incurred by the Engineer In providingany such gratuities to any such officer or employee. 17. PATENTS If this.agreement involves research, devel- opmental, experimental, or demonstration work, and any discovery or Invention arises.or Is developed In the course of or under thisAgreement, ouch Invention or discovery shall be subject to the reporting and rights provi- sions of Bubpart D of 40 CPR Port 30. In effect on the date of execution of this BKI ^ -m«ut. including Appendix B of paid Pnrt :«-i.To such csje. the Engineer ahull report iivtdiscovery or Invention to EPA direct!» <.rW."',:;;!' *^8 Owner, and •*>•>• otn'rwi«e •>••»>.ply with the Owner's resiM.iuibmueu In ac-cordance with said Subpmt l> ot 40 CFH Part 30. The Engineer hereby agrees that thedisposition of rights to' inventions madt> under this agreement shall be in accordance with the terms and conditions of aforemen-tioned Appendix B. The Engineer shall In- clude provisions appropriate to effectuate thepurposes of this condition In all subcontract*involving research, developmental, experi-mental, or demonstration work. IB. COPTMOHTB AMD RloilTS IN DATA (a) The Engineer agree* that any plane, drawings, designs, specifications, computer programs (which are substantially paid forwith EPA grant funds), technical reports,operating manuals, and other work submitted . with a Step 1 Facilities Plan or with a Step 3or Step 3' grant application or which arespecified to be delivered under this agree-ment or which are developed or produced and paid for under this agreement (referred toin this clause as "Subject Data") are sub-ject to the rights in the United State*, as setforth in Subpart P of 40 CPB Part 30 and In Appendix C to 40 CFS Part 30, in effect on the date of execution of this agreement. Includ-ing the right to ua«t duplicate and disclose, such Subject Data, in whole or in part, in any manner for any purpose whatsoever, andhave others do so. For purposes of this arti-cle, "grantee" as used in, said Appendix C shall refer to the Engineer. If the material la copyrlghtahle, the Engineer may cop/rightsuch, as permitted by said Appendix C, and subject to the rights la the Government as set forth in Appendix C, but the Owner andthe Federal Government reserve a royalty-free, nonexclusive, and Irrevocable license to reproduce, publish and use such material*. In whole or in part, and to authorize othersto do so. The Engineer shall Include provi-sions appropriate to effectuate the purpose of this condition in all subcontracts expectedto produce copvrlnhtable Subject Data. (b) All such Subteot Data furnished bv the Engineer pursuant to this agreement areinstruments of his services in respect of the ' protect. It is'understood that the Engineer does not represent such Subject Data to besuitable for reuse oa any other protect or forany other purpose. Any reuse by the Ownerwithout specific written verification or adap-tation by the Engineer will be at the risk of the Owner and without liability to the Engi-neer. Any such verification or adaptationwill entitle the Engineer to further compen- sation at fates to be agreed upon by theOwner and the Engineer. COPY FEDERAL REGISTER VOl. 41, NO. 251—WEDNESDAY, DECEMBER 29, 1976 C-3