Loading...
HomeMy WebLinkAbout52-80 RESOLUTION• • • •••• • • RESOLUTION NO. WCROWAS) A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT WITH BLACK & VEATCH, CONSULTING ENGINEERS, FOR A COMPREHENSIVE WATER AND WASTE WATER RATE STUDY. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute a contract with Black & Veatch Consulting Engineers for a comprehensive water and waste water rate study. A copy of the contract authorized for execution hereby is attached hereto marked Exhibit and made a part hereof. PASSED AND APPROVED this J7 day of ,ATTEST: City Clerk t*it Seat-) P -7-54n765.11: #2:11 y -* fie. a it T••••,, APPROVED: , 1980. ASSISTANT MAYOR "mma, CERTIFICATE OF RECORD State of Arkansas SS City of Fayetteville ( 1, Bonnie Goering,, City Clerk and Ex -Officio recorder for the City of Fayetteville, do here- by certify that the annexed er foregoing is of record M my office and the same ap- pears in Ordinance CD Resolu2on book "t pageWitncsa rty al this c2 ti day of 19 0 hand and • ,410 ag_ael , Air Jaw City Clerk and Ex -Officio Record" 6717780 • -Ie. a • WATER AND WASTEWATER RATE STUDY • , 195 • Assistant Mayor Noland noted that this resolution would authorize the execution 395.1 of the contract with Black & Veatch Consulting Engineers which had been approved at the June 3 meeting, and City Attorney McCord pointed out that Section II of the con- tract should specify the engineer's standard rates. Director Henry, seconded by Osborne, moved to authorize the execution of the 395.2 contract with Section II_amended to specify the engineer's standard rates recorded vote was: Ayes: Henry, Lancaster, Noland, Osborne, Sharp Nays:. None The Assistant Mayor -declared the resolution passed. Pi° e".9 016Ce RESOLUTION NO. 52-80 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK VIII. CONDEMNATION AUTHORIZATION/HWY 62 WEST 0 City Manager Grimes said that a resolution authorizing the initiation of condem- 395.3 QJ nation proceedings on three properties in connection with the Highway 62 widening and O utility relocation projects was routine. Director Lancaster, seconded by Sharp, < moved to authorize the condemnation proceedings on the following property owners: Thomas H. and Dorothy Ward, Floyd E. and Betty D. Gabbard, and Ray E. and Addie Lee Lister. Mr. Floyd Gabbard expressed concern that four Chinese Elm trees on his property 395.4 would be damaged, and Grimes said the trees would be taken into consideration with the assessment of the value of the easement. There being no further discussion, the recorded vote on the resolution was: Ayes: Henry, Lancaster, Noland, Osborne, Sharp Nays: None The Assistant Mayor declared the resolution passed. RESOLUTION NO. 53-80 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK VIII. ALLEY CLOSING/NORTH OF HWY 62 WEST, BETWEEN RAZORBACK RD. & LEWIS AVE. The City Attorney read an ordinance closing and vacating three unopened alleys, 395.5 running east and west, one block north of Hwy 62 West, between Razorback Road and Lewis Avenue. He explained that this ordinance would vacate any interest the City may have in this alley and that the City Engineer has reserved a utility easement. Director Henry, seconded by Lancaster, moved the rules be suspended and the 395.6 ordinance be placed on second reading. The recorded vote was: Ayes: Henry, Lancaster, Noland, Osborne, Sharp Nays: None The Assistant Mayor declared the motion passed and the City Attorney read the ordinance for the second time. Director Osborne, seconded by Henry, moved the rules be further suspended and 395.7 the ordinance be placed on third and final reading. The recorded vote was: Ayes: Henry, Lancaster, Noland, Osborne, Sharp Nays: None The Assistant Mayor declared the motion passed and the City'Attorney read the ordi- nance for the third and final time. There being no further discussion, Assistant Mayor Noland asked if the ordinance 395.8 should pass. The recorded vote was: Ayes: Henry, Lancaster, Noland, Osborne, Sharp Nays: None The Assistant Mayor declared the ordinance passed ORDINANCE NO 2641.APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK VIII. '••• • CONTRACT FOR ENGINEERING SERVICES THIS CONTRACT, executed in duplicate this /704day of between Fayetteville, Arkansas, hereinafter called th Veatch,vConsulting Engineers of Kansas City, Missouri, called the Engineers: , 191g, OCihtitly2 and Black & hereinafter WHEREAS: The Engineers have proposed to prepare a comprehensive water utility rate study and analyses concerned with the adequacy of revenues resulting from the existing schedules of rates and the development of recommended rate schedules to meet projected costs of providing service. WHEREAS: The Engineers have proposed to prepare a wastewater utility service charge study concerned with the adequacy of revenues resulting from the existing schedules of charges and the development of recommended schedules of charges to meet projected future costs of providing service. WITNESSETH: That in consideration of the mutual covenants herein contained, the City hereby agrees to employ the Engineers to perform the services hereinafter outlined in connection with separate studies and reports for the water and wastewater utilities on financial analysis, cost of service, and rate matters, and agrees to pay them for such services according to the schedule of fees herein contained. SECTION I - SCOPE OF SERVICES The services which the Engineers agree to perform are as follows: A. Water Rate Study 1. Revenue and Revenue Requirements a. Analyze service area growth and water use, taking into account climatic and other local conditions. Project future customers served, water sales volumes, and revenues which may be reasonably expected for a 3 to 5 year study, period based on past records of numbers and types of customers served, historical water use by customer class, and revenues received under existing rates. Ascertain the degree to which water sales and revenues have been abnormally high or low so that future projections may reflect normal conditions. b. Analyze past water system operating expenses and project future operating costs by recognizing increases in the number of customers'served, water requirements, and the effects of continuing inflation on cost levels. 'EXHIBIT A s • • • c. Develop a financing plan to meet proposed water utility capital improvement requirements. Project debt service requirements for principal and interest payments and reserves on existing and any proposed bond issues. d. Study projected annual revenue requirements on a basis of total cash needs, including operating expenses, debt service requirements, cost of routine annual capital expenditures, and any other requirements for revenue. e. Supervise the preparation of a water bill analysis for a recent 12 month period. Meet with'appropriate City officials and staff familiar with existing billing procedures to outline the intent, purpose, and general procedures involved in the analysis. Establish the 12 month period to be analyzed, the format in which the billing data can be compiled, and the most feasible procedure by which the City might accomplish the desired analysis based on existing billing methods, data, and facilities. 2. Cost of Service Analysis a. Allocate total requirements for revenue, or cost of service, to functional cost components of volume, peak demands and customer elements to provide a basis for determining the unit costs of service. b. Estimate the relative responsibility of each customer class for system capacity, total volumes required, and customer elements based upon local experience and conditions. Customer classes may include residential, commercial, industrial, municipal, wholesale service, public fire protection, and any other appropriate service group. c. Distribute the functional costs of service to the various customer classifications on the basis of estimated service requirements for each class. d. Compare revenues expected from each customer class under the existing rate schedule with the distributed functional cost of service to determine the adjustment in revenues for each classification required to reasonably distribute total cost of service to customers served. 3. Rate Design ka. Design water rate schedules to recover revenues from customer classes generally in accordance with costs of service. Recognize practical aspects of historical practice and the City's policy in the recommended rate adjustments. • • • • b. Prepare a schedule of typical bills under proposed rates for selected meter size and water sales in each class of customers. c. Compare revenues under cost of service rates to revenue requirements, showing the flow of funds during the study period. B. Wastewater Service Charge Study a 1. Revenue and Revenue Requirements a. Study the present wastewater service area. Project future wastewater volumes and revenues, for a study period encompassing the first years operation of new facilities but not to exceed five years, based on historical records of the number and type of customer served, historical wastewater volumes by customer class, and revenues received under current rate schedules. Base projections of sewage volumes and revenues on normalized conditions, recognizing adjustments required for water sales to which wastewater service charges are not applicable as well as sewage volumes from sources other than water sales. b. Analyze historical system operating expenses and project future operating costs recognizing growth in the service area and the effects of continuing inflation on cost levels. c. Develop a financing plan for the proposed capital improvements program of the sewerage system. Project debt service requirements for principal and interest payments and reserves on existing and any proposed bond issues required. d. Project total annual revenue requirements of the wastewater utility for the study period, including operating expenses, debt service requirements, normal annual replacements and system additions, and any other payments as required. Determine the adequacy of estimated revenues to meet requirements on a year by year basis for the study period. Determine the need and extent of any overall revenue level adjustments. e. Supervise the preparation of a wastewater bill analysis for a recent 12 month period. Meet with appropriate city officials and staff familiar with existing billing procedures to outline the intent, purpose, and general procedures involved in the analysis. Establish the 12 month period to be analyzed, the format in which the billing data can be compiled, and the most feasible procedure by which the City night accomplish the desired analysis based on existing billing methods, data, and facilities. • • • • •1 2. Cost of Service Analysis a. Allocate total revenue requirements, or cost of service, to functional cost components related to wastewater volume, strength, infiltration/inflow, and customer elements. Develop unit costs of service applicable to all customer classes served. • b. Based on available data from the City and the experience of other utilities, estimate the relative responsibility of each customer group, or customer class, for wastewater volumes delivered, contributed strengths, infiltration/inflow, and customer cost. Customer classes may include residential, commercial, industrial, municipal, and any other distinguishable group. c. Distribute the costs by functional component to the various customer classifications based on relative service requirements. Guidelines of the Environmental Protection Agency (EPA), in effect at the time of the authorization to proceed, will be recognized in developing cost of service allocations. d. Compare revenues expected from each customer class with the allocated costs of service, to determine the adequacy of present revenue levels from each class. Determine the adjustment in revenues required to reasonably distribute costs of service to respective classes. 3. Service Charge Design a. Develop a schedule of wastewater service charges which will reasonably recover revenue from the various classes of customers in proportion to total costs• of providing service to each class. Charges to customers are to be consistent with general policy established by the City and current Federal requirements. b. Develop unit charges recognizing EPA rules and regulations for user charge and industrial cost recovery as of the date of the authorization to proceed. c. Prepare a schedule of typical bills under proposed charges for selected meter size and volumes in each class of customers. d. Compare revenues under cost of service charges to revenue requirements, showing the flow of funds during the study period. • • • C. Presentation of Findings 1. Prepare a letter report summarizing the preliminary findings of water and wastewater revenue requirements and present the findings to City representatives on a date agreeable to both parties. Based on conclusions reached, the City may wish to pursue additional study areas; however, such studies are beyond the scope of this agreement. 2. Upon completion of the rate studies, prepare separate preliminary reports summarizing revenue requirements,.cost allocations, and rate design for the water and wastewater utilities and present the findings in person to City representatives on a date agreeable to both parties. 3. Upon receipt of review comments from the City, revise the preliminary reports, if necessary, before submitting 20 copies of each final report. 4. Included in the maximum payments limit is one appearance by the Engineers before the City Council to explain the studies' findings. SECTION II - COMPENSATION A. Water Rate Study 1. For the services set forth in SECTION IA and the water related portion of SECTION IC, the City agrees to pay an amount based upon the Engineers' itemized monthly statements within thirty (30) days after date of billing. The total of the monthly payments shall not exceed a maximum payments limit of THIRTY- TWO THOUSAND SEVEN HUNDRED DOLLARS ($32,700) except that additional work may be authorized by the City. 2. The Engineers shall render an itemized monthly statement to the City for work performed and costs incurred during the preceding month on the following basis of charges: All Personnel Payroll Costs x 2 Payroll Costs Defined Reimbursable Expenses Actual Salary Costs Plus 25% for Overhead Actual Cost on Engineer's Standard Rates • • a •11 • B. Wastewater Service Charge Study 1. For the services outlined in SECTION IB and the wastewater portion of SECTION IC, the City agrees to pay the Engineers a cost-plus fixed fee payment which shall include direct salary, actual overhead, other indirect costs, direct expenses, and fixed fee. The total fixed fee for the study shall be $3,200. The total of the monthly payments shall not exceed TWENTY-FOUR THOUSAND SIX HUNDRED DOLLARS ($24,600) without further authorization. 2. Cost shall mean salary, salary times a multiplier to cover actual overhead and other indirect costs, plus reimbursable expenses at actual cost. The multiplier to cover actual overhead and facilities capital cost of money shall be 0.92908. This multiplier shall apply until June 26, 1980. The multiplier shall be changed annually on June 27 to agree with actual overhead and other indirect costs of the Engineers during the previous calendar year. 3. Reimbursable expenses and direct costs shall be actual out-of- pocket travel and subsistence expenses of personnel engaged in this work while away from the office of the Engineers and all other direct out-of-pocket costs for printing, long distance telephone, computer time charges, copying and other incidental costs expended in connection with this work, including any work performed by a subcontractor for the Engineers. 4. The City agrees to make monthly payments to the Engineers, within thirty (30) days after the date of billing, for the services rendered under this contract on the basis of statements submitted each month. Statements shall be accompanied by adequate itemization to fully indicate the basis of charges. C. Additional Services 1. The maximum payments limits for the water and wastewater studies outlined above shall not be exceeded unless additional meetings, appearances, or studies are required and specifically authorized by the City. Such supplemental services shall be furnished on the basis of charges set forth in SECTION II, Paragraph A2, except that they will not be included in the stated maximum payments limits for either study. 2. For additional services, the City agrees to pay the Engineers, within thirty (30) days after date of billing, the amount due for such services rendered during the month. SECTION III - MUTUAL UNDERSTANDING It is mutually understood and agreed: • A. That the City will provide, at its own expense, the following items: 1. For both the water and wastewater utilities, a tabulation of bills, by customer class and water usage or wastewater volumes for a period of 12 months, prepared under the supervision of and in a manner suitable for use by the Engineers. 2. Water and wastewater capital improvements programs for the study period. Programs will describe each item of improvement, including estimated costs and anticipated dates of construction. 3. Furnish available data on industrial wastewater volume and strength characteristics as a basis for estimates of expected industrial waste loadings on the wastewater system. 4. Make available to the Engineers any financial records, annual operating or other reports, audits, maps, existing and proposed tables of organization, and other data or information available in the City's files as may be needed to complete the studies. 5. Provide policy direction on such matters as the City considers appropriate and expeditiously review preliminary reports to permit the timely completion of the studies. B . That, if additional services not specifically provided for in this contract are to be performed, written approval of the City must be given. C. That the Engineers shall perform the work under this contract in a competent, timely and professional manner. The Engineers shall not be liable for delays resulting from causes beyond the reasonable control of the Engineers; that the Engineers have made no warranties, expressed or implied, which are not expressly set forth in this contract; and that under no circumstances will the Engineers be liable for indirect damages. D . That Appendix C-1 as published in the Federal Register on December 29, 1976 is made a part of this contract E . That any notice or communications between the Engineers and the City and required to be given under the terms of this contract, shall be in writing and shall be deemed to have been sufficiently given when sent by prepaid United States mail to the other party at the addresses stated below: 4 Mr. Don Grimes ;City Manager • City of Fayetteville P. 0. Drawer F Fayetteville, Arkansas 72701 • • • • • e • • 2. Mr. J. R. Brown Black & Veatch, Consulting Engineers P. 0. Box 8405 Kansas City, Missouri 64114 SECTION IV IN WITNESS WHEREOF, the parties hereto have executed this contract this /7day of 1„4„1.,„.1L, , 1980. A ATTEST: 44,..EtTY ••=.1i. eye s* 51:1% " II. 5:37 /LA a At 7.4 • CLERK CITY OF FAYETTEVILLE, ARKANSAS By • BLACK & VEATC , CONSULTING ENGINEERS By 4 t. .• or data noecurrent(ks certified in his certifi- • cation of current cost or pricing data (EPA . form 5700-41), then such price, cost.. or profit shall be reduced accordingly and the . agreement shall be modified in writing to reflect such reduction. OD Failure to agree on a reduction shall be subject to the remedies clause of this agreement. (Note.—Since the agreement is subject to reduction under this clause by reason of de- .•fective cost or .pricing data .submitted in connection with certain subcontracts, Vic engineer •may wish to include c clause in each such subcontract requir:ng the subcon- . . tractor to appropriately indemnify the cthi- neer. It ft also expected that any subcontrac- - . tor subject to such indemnification will gen- erally require substantially sintilar indemni- fication for defective cost or pricing data re- quired to be submitted by his lower tier sub; 'contractors) • • , 11. 3013CONTRACTS . . • • (a) Any subcontractors and outside asso- ciates or consultants required by the engi- neer in connection with services under this • agreement will be limited to such individ- • uals or firms as were specifically.identified and agreed to during negotiations, or as the owner specifically authorizes during the perforrnance of this agreernent. The owner must give prior approval for any substitu- tions in or additions to such subcontractors, associates, or consultants. (b) The engineer may not subcontract ser- vices in excess of thirty (30) percent (or percent. if the owner and the engi- neer hereby agree) of the contract price to • subcontractors 6r consultants without the owner's prior written approval. 12: LABOR STANDARDS To the extent that this agreement In- volves "COPISCTIICUOD" (as defined by the Secretary of Labor). the engineer agrees that such construction work shall be subject to the following labor standards provisions. to the extent applicable: • • (a) Davis-T3acon Act. (40 U.S.C. 276a - 276a -7): (b) Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333): Cc/Copeland 'Anti -Kickback Act (18 U.S.C. 874): and (d) Executive Order 11246 (Equal Employ- ment Opportunity): and litiplementing "rules, regulations. and relevarit orders of the Secretary of Labor or EPA_ The engineer further agrees that this agreement shall include and be subject to the "Labor Standards Provisions for Feder- ally Assisted Construction Contracts" (EPA /dna 5720-4) In effect at the time of execu- tion of this agreement. 13. EQUAL EMPLOYMENT OPPORTUNITY In accordance with EPA policy as ex- pressed• In 40 CFR 30.420-5. the engIneer agrees that he will not discriminate against any employee or applicant for employment because of race, religion. color, sex. age, or national origin. . 11. Pintas -rims OF SMALL AND MINORITY BUSINESS In accordance with EPA policy as ex- pressed In 40 CFR 35.036-7, the engineer agrees that qualified small business and mi- nority business enterprises shall have the maximum practicable opportunity to par- ticipate In the performance of EPA grant• aSsIsted contracts and subcontracts. 15. COVENANT AGAINST CONTINGENT PEES The engineer warrants that no person or selling agency has been employed or re- tained to solicit or secure this contract upon an agreement. or understanding for a com- mission, percentage, brokerage. or contin- gent fee, excepting bona fide employees. For - breach or violation of this warranty the owner shill have the right to annul this agreement without liability or In •its discre- tion to deduct from the contract price or consideration, or otherwise recover, the full amount of such commission, percentage, brokerage. or contingent. fee. 16. GRATUITIES (a) If It Is found, after notice and hearing. by the owner that the engineer. or any of the engineer'sagents or representatives. of- fered or gave gratuities (in the form of. en- tertainment. gifts. or otherwise), to any off'• cial, employee, or agent of the owner, of the State, or of EPA -in an attempt to secure a contract or favorable treatment in award. Ing. amending. or making any, determina- tions related to- the performance of this agreement, the •owner may.. by written notice to the engineer. terminate the right of the engineer to proceed under this agree- ment. The ovmer may also pur§ue other rights and remedies that the law or this agreement provides. However, the existence of the facts upon which the Owner bases such findings shall be in issue and may be reviewed in proceedings under the remedies clause of this agreement. (b) In the event this agreement Is termi- nated -as provided in Paragraph (a) hereof, th:shall Is: __1•.•,1. (13 71-0 puisue the same remedies against the engineer as it could pursue In the event of a breach of the contract by the engineer, and (2). as a penal- ty, in addition to any Other damages to which it may be entitled by law, to exempla- ry damages M an amount (as determined by the owner) which shall be not less than 3 nor more than 10 times the costs the engi- lleet IDCUTS in providing any such gratuities to any such officer or employee. • 17. PATENTS If this agreement invokes research, devel- opmental, experimental. or demonstration work and any discovery or -invention arises or -Ls developed in the course of or under this agreeme.nt, such imiention or discovery shall be subject to the reporting and rights provisions of subpart D of 40 CFR part 30. In effect on the date of execution of this agreement, including appendix 8 of part 30. In such case, the engineer shall report the discovery or invention to EPA directly or through the owner, and shall otherwise comply with the owners responsibilities in accordance with subpart D of 40 CFR part 30. The engineer agrees that the disposition of rights to inventions made under this agreement shall be in accordance with the terms and conditions of appendix B. The en- gineer shall inclOde appropriate patent proi. visions to achieve the purpose of this condi- tion in all subrontracts involving research, devcloprnent7.I. experimental. or denionstra- Lion work. 113. COPYRIGHTS AND RIGHTS IN DATA (a) The engineer agrees that any plans, drawings. designs, specifications. computer programs (which are substantially Pald for with EPA grant funds), technical reports, operating manuals, and other work submit- ted with a step I facilities. plan or with a step 2 or step 3 grant application or which are specified• to • be delivered under this agreement or which are developed or pro. duccd and paid for under this agreement (referred to In this clause as "Subject Data") are subject to the rights In the United States. as set forth In subpart D of 40 CFR part 30 and In appendix C to 90 CFR part 30, In effect on the date of execu- tion of this agreement. These rights include the right to use. duplicate, and disclose such subject data, In whole or in part, in any manner for any purpose .whatsoever, and to have others do so. For purptises of this clause. "grantee" as used in appendix C refers to the engineer. If the material Is co. pyrightable, the engineer may copyright as appendix C perrnits, subject to the rights Ln the Government In appendix C, but the owner and the Federal Government reserve a royalty -free, nonexclusive, and irrevocable license to reproduce, publish, and use such materials, In *hole or In part, and to audio. rite others to do so. The engineer shall in- clude appropriate provisions to achieve the purpose of this condition In all subcontracts expected to produce copyrightable subject data. (b) All such subject data furnished by the engineer pursuant to this agreement arc in. - struments of his services in respect of the project. It is understood that the engineer does not represent such subject data to be suitable for reuse on any other. project or Mr any other purpose. If the owner reuses. the subject data without the engineer's spe- cific written verification or adaptation, 'such reuse will be at'the risk of the ov.-ner, with- out liability to the engineer. Any such ver- IfiCation or adaptation will entitle the engi- neer to furthercompensation at rates agreed upon by the owner and the engineer. FEDERAL REGISTER, VOL. 43, /.10. 188—WEDNESDAY, SEPTEMBER 27, 1970 • - • c. • • APPTNDI X C-1—RPGNI/RED PROVISIONS— CONSULTING Escraaraine AGP.EL-rdENTS 1. General' 2. Responsibility of the Engirv:er 3. Scope of Work 4. Changes 5. Termination 6. Remedies 7. Payment 8. Project De.sIgn Ilk Audit; Access to Records 10. Price Reduction for Defective Cost or Pricing Data 11. Subcontracts 12. Labor Standards 13. Equal Employment Opportunity 14. IRILizatioti of Small or Minority Busi- ness 15. Covenant Against Contingent -Fees 16. Gratuities . 17. Patents 18. Copyrighti and Rights in Data • I. GENERAL • • (a) The owner and the engineer agree that the following provisions apply to the EPA grant -eligible work to be perfonned tinder this agreement and that such provisions su- persede any conflicting provisions of this agreement. (b) •The work under this agreement is funded in part by.a grant frorn the U.S. En- vironmental Protection Agency. Neither the 'United States nor the 17.S. Environmental Protection Agency (hereinafter, "EPA") is a party to this agreement. This agreement which covers p -ant -eligible work Is subject to regulations contained in 40 Cr R 3a.93o. 35.937..and 35.939 in effect on the date -of execution of this agreement. As used in these clauses, the words the date of execu- tion of thIs agreeznent" mean the date of Execution of this agreement and any subse- quent modification of the terms, compensa: Mon or scope of services pertinent to unper- formed work. • (c) The owner's rights and remedies pro- vided in these clauses are in addition to any other rights and remedies provided by law or this agreement. 2. RESPONSIBILITY ENGINLTR (a) The engineer shall be responsible for the professional quality, technical accuracy. timely completion. and the coordination of alfclesigna drawings. Specifications. reports. and other services furnished by the engi- neer under this agreement. The engineer shall, without additional compensation, cor- rect or revise any errors. omissions, or other deficiencies In his designs, drawings, specifi- cations. reports, and other services. (b) The engineer shalt perform such pro- fessional services as may be necessary to ac- complish the work required to be performed under this agreement, in accordance with this agreement and applicable EPA require- ments in effect on the date of execution of this agreement. (c) The owner's or ETA s approval of drawings. designs. specifications, reports, and incidental engineering work or materi• als furnished hereunder shall not in any way relieve the engineer of responsibility for the technical adequacy of his work. Nei- ther the owner's nor EPA's review. approval or acceptance of, nor payment for, any of the services shall be construed to operate as a waiver of any rights under this agreement or of any eause of action arising out df the performance of this agreemenL (d) The engineer shall be and shall remain liable. In accordance with app/icable law, for all damages to the owner or EPA caused by the engineer's negligent performance of any of the services furnished under this agree.: ment; except for errors.- omissions or other deficiencies to the extent attributable to the• owner. owner -furnished data or any third party. The engineer shalt not be responsible for any time delays in the project caused by circumstances beyond the engineeer's cons trol. Where innovative processes or tech- niques (see 40 CFR 35.908) are recommend- ed by the engineer and are used, the engi- neer shall be liable only for gross negligence' to the extentbf such use. • • S. SCOPE OP WORK • The services to be performed by the engi-i neer shall.include all services required to complete the task or Step In accordance: with applicable EPA regulations (40 CFR. Part 35, Subpaxt Z In effect on the data of execution of this agreement) to the extent, of the scope of work as defined and set out in the engineering services agreement to, which these provisions are attached. 4. GRANGES (a) The owner may. at any time. by writ- • ten order make changes within the general scope of thti agreement in the services or • . work to be performed: If such changes cause an increase or decrease in the engineers cost of, or time re.quired.far. performance of any services under this agreement, whether or not changed by .any order, an equitable adjustment shall be made and this agree- ment shall be modified in wrising according- ly. The engineer must assert any claim for adjustment under this clause In writing within 30 days from the date of receipt by the engineer of the notification of change, . 7 unless the owner grants a further period of - timobefore the &ate of final payment under this agreement. (b) No services for which an additional compensation will be charged by the engi• neer shall be furnished without the written authorization of the owner. (0 In the event that there is a modifica- tion of EPA requirements relating to the services to be performed under this agree- ment after the date of execution of this agreement, the increased or decreared cost of performance of the serviees provided for in this agreement shall be reflected in an appropriate modification of this agreement. a TERMINATION (a) Either party may terminate this agree- ment, in whole or in part, In writing. if the other party substantially fails to fulfill its obligations under this agreement through no fault of the terminating party. Ilowever. no such termination may be effected unless the other party is given (1) not less than ten (I0) calendar days written notice (delivered by certified mail, return receiptrequested) of Intent to terininate and (2) an opportuni- ty for consultation with the terminating party before termination. (b) The owner may terminate this agree- ment, in whole or in part, in writing, for its convenience. if the termination is for good cause (Such as for legal or financial reasons. major changes In the work Or program re. GuirenieriLS, initiation of a new step) and the engineer Is given (1) not less than ten (10) calendar days written notice (delivered by FEDERAL REGISTER, VOL. 43, NO. 188—WEDNESDAY, SEPTEMBER 27, 7978 • certified mail, return receipt requested) Of Intent to terminate, and (2) an opportunity for consultation with the terminating party before termination. (c) If the owner terminates for default. an equitable adjustment in the price provided for in this agreement shall be made. but (1) no amount shall be allowed for anticipated profit on unperfonned services or other work. and (2) any payment due to the engi- neer at the Wile of termination may be ad- justed to the extent of any additional costa the owner incurs because of the engineer's default. If the engineer terminates for de- fault or 0 the owner terminates for convert• fence, the equitable adjustment shall in- clude a reasonable profit for services or other work performed. The equitable ad- justment far any terrnlnatIon shall provide for payment to the engineer for services rendered and expenses Incurred before the termination, in addition to termination set- tlement costs the engineer reasonably incurs relating to commitments which had become fims before the termination. (d) Upon receipt of a termination action under paragraphs (a) or (b) above, the engi- neer shall (1) promptly discontinue all ser- vices affected (unless the notice directs oth- erwise). and (2) deliver or otherwise make available to the owner all data, drawings, specifications, reports. estimates, summar- ies, and such other information and materi- als as the engineer may have accumulated in performing this agreement, whether com- pleted or In process. (e) Upon termination under paragraphs (a) or (b) abcive, the owner may take over the work and prosecute the same to comple- tion by agreement with another party or otherwise. Any work the owner takes over for completion will be completed at the owners rise, ana tne owner win note narm- less the engineer from all claims and dam- ages arising out of improper use of the engi- neers work. (f) If, after termination for failure of the engineer to fulfill contractual obligations, it is determined that the engineer had not so failed, the termination shall be deemed .to have been effected for the corwenience of the owner. In such event, adjustment of the Price provided for In this agreement shall be made as paragraph (c) of this clause pro- vides. II. REMEDIES Except as this agreement otherwise pro- vides, till claims, counter-clatms, disputes, and other matters in question between the owner and the engineer arising out of or re- lating to this agreement or the breach of it will be decided by arbitration lf the parties hereto mutually agree, or in a court of com- petent jurisdiction within the State In which the owner is located. 7. PAYMENT (a) Payrnent shall be made in accordance with the payment schedule incorporated in this agreement as soon as practicable upon submission of statements requesting Pay- ment by the engineer to the owner. If no such payment schedula Is incorporated in this agreement, the payment provisions of paragraph (b) of this clause shall apply. ao The engineer may request monthly Proeress payments and the owner shall make them as soon as practicable upon eub- mLssion of statements requesting payment by the engineer to the owner. When such progress payments are made, the owner may withhold up to ten (10) percent of the vote chered amount until satisfactory completion by the engineer of work and services within a step called for under this agreement. When the owner determines that the work under thLs agreement or any specified task hereunder Is substantially complete and that the amount of retained percentages Is In excess of the amount consgered by him to be adequate for his protection, he shall release to the engineer such excess arnount. (c) No payment request made under para- graph (a) or (b) of this clause shell exceed the estimated amotuit and value of the work and services performed by the engineer under this agreement. The engineer shall prepare the estimates of work perforrned and shall supplement thern with such sup- porting data as the owner may require. (d) Upon satisfactory completion of the work performed under this agreement, as a condition precedent to final payment under this agreement or to settlement upon termi- nation of the agreement. the engineer shall execute and deliver to the owner a release of all claims against the owner arising under or by virtue of this agreement. other than such claims, if any, as may be specifically exempted by the engineer from the oper- ation of the release in stated amounts to be set forth therein. S. PROJECT DESIGN (a) In the performance of this agreement, the engineer shall. to the extent practicable, provide for maximum use of structures, ma- chines, products, materials, corestrumion methods. and equipment which are readily available through competitive procurement, or through standard or proven production techniques, methods, and processes, consist, ClIir WA 40 CFR .35.i.i6-5azd5leeea-i5 in effect on the date of execution of this agree- ment, except to the extent to which innova- tive technology may be used under 40 CFR 35.908 in effect on the date of execution of this agreement. (b) The engineer shall not, in the perform. ance of the work under this agreement. pro- duce a design or specification which would require the use of structures, machines, products, materials, construction methods, equipment. or processes which the engineer knows to be available only from a soie source. unless the engineer has adequately Justified the use of a sole source Ln writing. (e) The engineer shall not. In the perform - ranee of the work under this agreement. pro- duce a &siert or specification which would be restrictive in violation of sec. 204(a)(6) of the Clean Water Act. This statute requites that no specification for bids or statement of work shall be written in such a manner as to contain proprietary, exclusionary, or dis- criminatory requirements other than those based upon performance, unless such re- quirements are necessary to test or demon- strate a specific thing, or to provide for nec- essary iaterchartgeability of parts and equipment, or at least two brand names or trade names of comparable quality or titility are listed and are followed by the words "or equal." With regard to materials. If a single material is specified, the engineer must be prepared to substantiate the basis for the selection of the material. (c) The engineer shall report to the owner any sole -source or restrictive design or speci- fication giving the reason or reasons why It Is necessary to restrict the dc•ign or specie - cation. (e) The engineer shall not knowingly specify or approve the performance of work at a facility which is in violation of clean air or water standards and which Is listed b. the Director of the EPA Office of Federal AcRvities under 40 CFR Part 15. 9. AUDIT; ACCESS TO RECORDS (a) Thc engineer shall niaintain books records, documents, and other evidence di- rectly pertthent to performance on E?A grant work under this agreement In accord- anc.e with generally • accepted accounting principles and practices consistently ap- plied. and 40 CFR 30.605, 30.805. and 35.935- 7 in effect on the date of execution of this agreement. The engineer shall also main- tain the financial information and data used by the engineer in the preparation or sup- port of the cost submission required under 40 CFR 35.9374(b) in effect on the date of execution of this agreement and a copy Of the cost sure:nary submitted to the owner, The U.S. Environmental Protection Agency, the Comptroller General of the United States, the U.S. Department of Labor, owner, and /the State water pollution con- trol agency] or any of their duly authorized representatives shall have access to such books, records, documents, and other m4 - dente for inspection, audit, and copying. The engineer will provide proper facilities for such access and inspection. (b) The engineer agrees to include para- graphs (a) through (e) of this clause In all his contracts and all tier subcontracts di- rectly related to project Perfermanee that are In excess of S10,000. tc) Audits conducted under this provision shall be in accordance with cencrally ate' cepted auditing standards and established procedures and guidelines of the reviewing or audit agency(ies). (d) The engineer agrees to the disclosure of all information and reports resulting from access to records under.paragraphe(a) and (b) of this clause, to any of the agencies referred to in paragraph (a), provided that the engineer is afforded the opportunity for an audit exit conference and an opportunity to conunent and submit any supportIna doc- umentation on the pertinent portions of the draft audit report and that the final audit report will Include written comments of rea- sonable length, if any, of the engliteer. (e) The engineer shall maintain and make available records under paragraphs (a) and (b) of this clause during performance on EPA grant work under thls agreement and until 3 years from the date of final EPA grant payment for the project. In addition, those records which relate to any Dispute" appeal under an EPA grant. agreement, to litigation, to the Settlement of claims aris- ing out of such performance. or to costs or Items to which an audit exception has been taken, shall be maintained and made availa- ble until 3 years after the date of resolution of such appeal, litigation, claim, or excep- tion. 10. PRICE REDUCTION FOR DEFECTIVE COST OR PRICING DATA (This clause is applicable if the aMount this agreement exceeds $100,000.) (a) If the owner or EPA determines that any price, including profit, negotiated In connection with this agreement or any cost reimbursable under this agreement was in- creased by any significant stuns because the engineer or any subcontractor furnished in complete or inaccurate cost or pricing (Mt. FEDERAL REGISTER, VOL 43, NO. ISR—WEDNISDAY, SEPTEMUlt 27, 1971 • • •