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Resolution 1979- 24 '......,....,~- ,- " . . ;1) (1.J /\t: r;~~ii~( "v.Al;;/v l:i1 I .4 () ;.J RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AN AMENDMENT TO THE AGREEMENT FOR ENGINEERING SEWERAGE FACILITIES, DATED JULY 20, 1970. RESOLUTION NO. 79 - 24 GILROY APPROVING CONSULTING SERVICES WHEREAS, the Agreement for Engineering Consulting Services Sewerage Facilities, dated July 20, 1970 has been previously sub- mitted to and approved by the City Council; and WHEREAS, an Amendment to said Agreement has been prepared and submitted to the City Council; and NOW, THEREFORE BE IT RESOLVED that the Gilroy City Council hereby approves said Amendment to the Agreement for Engineering consulting Services Sewerage Facilities dated July 20, 1970 with CONSOER, TOWNSEND & ASSOCIATES, Consluting Engineers, a co-partner- shop, said amendment shown as Exhibit "A" to this resolution and made part hereof by this reference, and authorizes execution thereof. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Gilroy this 19th day of March, 1979, by the fo110w- ing vote: NOES: COUNCIL MEMBERS: CUNNINGHAM, HUGHAN, LINK, PATE, STOUT and GOODRICH. COUNCIL MEMBERS: None AYES: ABSENT: COUNCIL MEMBER: CHILDERS APPROVED: ATTEST: RESOLUTION NO. 79 - 24 ~, (lAJ(wy~~r.,1 5.,. 7'1 (r....~ 7? -3 e -. . . EXHIBIT "A" AMENDMENT TO AGREEMENT FOR ENGINEERING CONSULTING SERVICES SEWERAGE FACILITIES DATED 20th DAY OF JULY 1970 This Agreement Amendment entered into this day of , 1979, by and between the CITY OF GILROY, a municipal corporation of the State of California, hereinafter called "City", and CONSOER, TOWNSEND & ASSOCIATES, Consulting Engineers, a co-partnership, 1671 The Alameda, San Jose, California 95126, hereinafter called "Engineer". WIT N E SSE T H WHEREAS, the City and the Engineer have previously entered into an Agreement dated July 20, 1970, entitled "Agreement for Engineering Consulting Services Sewerage Facilities", as supplemented November 6, 1974, and as amended August 1, 1977, and WHEREAS, the City has taken bids for Wastewater Treatment Plant Improvements and Interceptor Sewer Construction on the ,. basis of plans and specifications for such project prepared by the Engineer, and WHEREAS, the original agreement includes three divisions of engineering services to be performed upon further author- ization, namely: Division "D" Detailed Inspection of Construction, Division "F" Plant Operations Manual, and Division "G" Plant Start-up Service, and WHEREAS, the City and the Engineer have mutually agreed that the payment for engineering services provided under Divisions "D", "F" and "G" should be on a cost reimbursement basis. NOW THEREFORE, for and in consideration of their mutual promises and subject to the terms, provisions and conditions hereinafter set forth, the parties hereto do hereby agree as follows: 1. . . I. Divisions "D" "F" and "G" of said original agreement are hereby amended to read as follows: "DIVISION "D" DETAILED INSPECTION OF CONSTRUCTION 1. The City agrees that all construction work shall be done under the full time inspection of a qualified resident engineer and by such additional inspectors of construction as may be required for properly inspecting the construction of the project. It is understood and agreed that the resident engineer and all inspectors furnished by the Engineer shall be subject to the approval of the City. 2. As the scope of work for this Division "D" the Engineer shall provide the services of one resident engineer for a maximum of 3,120 man-hours and the services of one inspector of construction for a maximum of 1,038 man-hours. The above stated man-hours for the resident engineer shall be provided within a time period of no more than 550 calendar days after the treatment plant construction contractor on the project is authorized 'to proceed. The above stated man- hours for the inspector shall be provided within a time period of no more than 185 calendar days after the interceptor construction contractor on the project is authorized to proceed. Additional inspectors of construction shall be employed whenever it is necessary for the inspection of the work; for example, when the inspection work is being carried on in a number of locations simultaneously and it is impossible for two persons to inspect all construction work in progress, or whenever due to the complexity of the work and the volume it is impossible for two persons to inspect all work in progress. Said additional inspectors of construction may be furnished by the Engineer or the City, however, this is not included within the scope of work of this Division "D" under this amendment. If said additional inspectors of construction are furnished by the Engineer then, the cost ceiling and 2 . . . profit shall be increased by an amendment to the original agreement. 3. The Engineer shall endeavor to guard the City against defects and deficiencies in the work of the construction contractors, but does not guarantee the performance of construction contractors. 4. The Engineer shall proceed with the work under this Division "D" only upon receiving written authorization from the City to do so. DIVISION "F" OPERATION AND MAINTENANCE r1ANUAL As the scope of work for this Division "F" the Engineer shall: 1. Prepare for the City a Plant Operation and Maintenance Manual which will describe the details of operation of the various treatment and process systems incorporated in the plant. The Manual will provide information on both processes and equipment with subdivisions of the respective chapters into four main parts wherever appropriate, as follows: (a) A general description of the process: (b) a summary of pertinent design data: (c) equipment operating instructions: and (d) process operating instructions. 2. Submit to the City fifteen (15) copies of the completed Manual. 3. Prepare the Manual in accordance with "Operation and Maintenance Manual Guidelines for Wastewater Treatment Facilities" adopted by the State Water Resources Control Board, dated December, 1975. If these guidelines are revised by the State Water Resources Control Board and additional work is required by the Engineer to complete the Operation and Maintenance Manual, then this shall constitute a change in the scope of work. The cost ceiling and profit shall be increased accordingly, by an amendment to the original Agreement. 3. "- . . 4. The Engineer shall proceed with the work ,under this Division "F" only upon receiving written authorization from the city to do so. DIVISION "G" PLANT START-UP SERVICE As the scope of work for this Division "G" the Engineer shall: 1. Furnish technical engineering service to advise on the starting up of the completed facilities, which services will include: a. General assistance and guidance to plant personnel during initial phase of plant start-up. b. Liaison, after plant start-up, between the City and the various Contractors, suppliers and manufacturers involved in the construction of the plant. c. Trouble-shoot problems, if any, arising from malfunction of process, mechanical and electrical equipment. d. Work with city's personnel and representatives of contractors, suppliers and manufacturers to resolve any problems which might arise in connection with~plant operation. e. Observe and advise the City on performance testing of equipment items covered by warranties. 2. The scope of work for this Division "G" is limited to the Engineer providing 400 man-hours of engineering start-up services from a mutually agreed starting date. If the City requires additional start-up services beyond the 400 man-hours herein specified then, by mutual agreement, the cost ceiling and profit shall be increased by an amendment to the original agreement. 3. The Engineer shall proceed with the work under this Division "G" only upon receiving written authorization from the city to do so." 4. r " ',of', , " ~ -............- ~ . '.. . f..".:'. ~',;:' "I . ......o<b......:r-* _1"'_&&__ ...-.:.-:...___ .3... ........... , ~ . . II. The following section ~s added to the original agreement after Division "G": "COMPENSATION TO BE PAID ENGINEERS FOR SERVICES DESCRIBED IN DIVISIONS "D", "F", AND "G" As compensation for all services described in amended Divisions "D1', "F" and "G" above, the City agrees to pay the Engineer in accordance with the cost reimbursement procedures described below: 1. Cost Ceiling The City and the Engineer, having negotiated for the performance of services as described in Divisions "D", "F", and "G" of this agreement, mutually agree to the establish- ment of a cost ceiling in the amount of $206,922 for the performance of said services. The established cost ceiling, as identified above, includes the following cost elements: a. Direct labor b. Overhead (indirect cost) c. Direct costs d. Profit The established cost ceiling of $206,922 may not be exceeded without formal written amendment of this agreement. If changes in the scope or amount of the work described in Divisions "D", "F" and "G" occur because of the requirements of Federal or State agencies, the need and extent of an increase in the cost ceiling, including any or all parts (direct labor, overhead (indirect cost), direct costs and profit) thereof in order to compensate the Engineer shall be determined by the Engineer and the City, when and if the occasion arises. 2. Prof i t. The City and the Engineer having negotiated for the performance of services as described in Divisions "D", "F" and "G" mutually agree to the establishment of a fixed 5. . . dollar profit in the amount of $26,664 to be paid to the Engineer for the performance of services described herein. Said profit in the amount of $26,664 shall be paid to the Engineer irrespective of the amount of money paid for direct labor, plus overhead (indirect costs), plus direct costs, but the total amount paid to Engineers for direct labor, overhead (indirect cost), direct costs and profit shall not exceed the established cost ceiling of $206,922. The fixed dollar profit shall only be increased if the scope of work described hereinabove to be performed or furnished by the Engineer is increased by the City. 3. Compensation Procedures - Periodic Progress Payment The City agrees to compensate and otherwise reimburse incurred expenses of the Engineer by making monthly progress payments based upon the value of work and services performed by the Engineer under this agreement. The Engineer shall prepare and furnish monthly progress payment requests to 'the City, accompanied by supporting documentation, based upon the value of work and services performed. The City shall make said monthly progress payments, provided the work which such payments cover has been performed in accordance with the terms and provisions of this agreement, to the Engineer as follows: a. Direct labor cost equal to the actual wages or salaries paid to personnel of the Engineer's staff, including officers assigned to perform the work and services. Normal payroll rates are for 8 hours/day, 40 hours/week. Non-professional staff will have an overtime rate of l-~ times regular rate, and the professional staff at regular rate for overtime work, plus b. Overhead (indirect costs) equal to the total direct labor times a multiplier of 1.30 plus c. Direct costs (cost not included in over head or direct labor cost) equal to the actual cost incurred by Engineer, if any, including but not limited to costs of subcontracts and relocation expenses for personnel provided under "Division "D", ,plus d. Profit equal to the sum of total direct labor, plus overhead, all times a multiplier of 0.15. 6. . , Said monthly progress payments shall be paid b,y the City to the Engineer within 30 days after invoice submission. If monthly progress payments are not paid within 30 days after invoice submission, interest on such outstanding invoices will be charged at an annual rate of 10 percent or the maximum amount permitted by law, whichever is less. It is agreed that the overhead rate stated in paragraph 3.b. above is an estimated rate that is expected during the accounting period (fiscal year) in which the work will be performed. At the end of each accounting period in which work on this project is performed, the actual overhead rate shall be determined. If said overhead rate is greater than or less than that stated in paragraph 3.b. an adjusted invoice shall be issued to the City by the Engineer either for the amount due the Engineer if the overhead rate is greater or for the credit due the City if the overhead rate is less. The sum of all direct labor plus overhead, plus direct cost, plus profit, shall not exceed the established cost ceiling for this agreement except as provided hereinbefore. The profit shall not exceeed the sum of $26,664 except as provided hereinbefore. Also included for information purposes only is a copy of EPA Form 5700-41 for the Engineer covering the services set forth in Divisions "D", "F" and "G" of this agreement. It is understood that said document is not a part of this Agreement. 4. Other Compensation Provisions It is further understood and agreed that compensation due the Engineer for services performed under any or all divisions of this Agreement shall not be contingent or dependent upon the City's receipt of funds from any Federal, State or local Governmental unit or from any outside agency or entity. It is agreed that if engineering services provided 7 . . . under Divisions "D", and "F" of this agreement cannot be completed by November 30, 1980, or if the engineering services provided under Division "G" of this agreement cannot be completed by May 31, 1981, due to delay in completion of project construction, the cost ceiling and fixed dollar profit to be paid to the Engineer shall be renegotiated to mutually agreeable amounts. It is agreed that the costs incurred by the Engineer for relocation expenses of personnel to be provided under Division "D" of this agreement are direct costs and the Engineer will be compensated for them as such under the terms of paragraph 3 above. It is understood and agreed that in the event the City requires special insurance coverage for the project as covered by this agreement which coverage is over and above the standard insurance coverages maintained by the Engineer, any increase to premiums due to this additional or special coverage shall be reimbursed to the Engineer by the City as a direct cost. The City agrees to pay the Engineer for all costs and expenses incurred for goods and services furnished by the Engineer relative to the providing of the information, books, records, reports, documents, and all other relevant material related to the provisions of Division "H" of this agreement. The costs and expenses payable by the City to the Engineer shall be in accordance with the compensation procedures described under the terms of paragraph 3 above and the cost ceiling and profit shall be increased accordingly by an amendment ot the original agreement. IN WITNESS WHEREOF, the CITY OF GILROY, as the City, by , and the Engineering firm of CONSOER, TOWNSEND & ASSOCIATES, by Frederick N. Van Kirk, Partner, have caused this Agreement to be signed this day of , 1979. 8. . ATTEST: WITNESS: ~Jr~~ . CITY OF GILROY, CALIFORNIA By: CONSOER, TOWNSEND & ASSOCIATES ;/ ,) // /' A I~ /U 0/;~ ///.' By: ~r-~/,:,/(A~/ Partner ----- COST OR PRICE SUMMARY FORMAT *UBAGREEMENTS UNDER U.S. EPAeNTS . . (See accompanying instr s before completing this form) PARTI.GENERAL I. GRANTEE City of Gilroy, California 3. NAME OF CONTRACTOR OR SUBCONTRACTOR Consoer, Townsend & Associates 5. AOORESS OF CONTRACTOR OR SUBCONTRACTOR (Include ZIP code) 1671 The Alameda San Jose, CA Form Approved OM B No. 158 - R"01.+.J 2. GRANT NUMBER C-06-1019-10 4. OATE OF PROPOSAL. ... 6. TYPE OF SERVICE TO BE FURNISHED Detailed inspection of construction, operation and maintenance manual and plant start-up services. 7. OIRECT L.ABOR (Specify lebor catellorie.) ESTI. MATEO HOURS PART II. COST SUMMARY HOURLY RATE !=:"""" ~...... ' , 'Pvnihi'/- "A." DIRECT LASOR TOTAL: 8. INOIRECT COSTS (Specify indirect cost pools) RATE 110SJ; S 77 ?Q~ S 1 nn L1.7? ~ . , 5 ". .: x BASE = See attached Exhibit "B" Re: Accoun_ing >olicies IMDIRECT COSTS TOTAL: ';'" ,:r;,' 9. OTHER OIRECT COSTS a. TRAVEL (1) TRAN5PORT.>-TION (2) PER DIEM TRAVEL SUBTOTAL: b. EQUIPMENT, MATERIAL.S, SUPPLIES (Specify catellorie.) I QTY EQUIPMEMT SUBTOTAL: c. SUBCONTRACTS SUBCONTRACTS SUBTOTAL: d. OTHER (Speclly catellorie.) R",,'~~~"'irln ~ OTHER SUBTOTAL: I: e. OTHER DIRECT COSTS TOTAL: I 10. TOTAL ESTIMATED COST ,,. PROFIT 12. TOTAL PRICE E PA Fotm 5700-41 (2-76) . COST s I . . I; . ..... ESTIMATEO COST s 77 ?Rf\ .' I;STIMATEO COST .: . '. :';' ESTIMATEO COST :) S S EST 1M A TEO COST s ESTIMATED COST 5 s ESTIMATEO COST 5 ? 1:\00 TOTALS ,.~.';::, . . '. ',;::':'- . ,\. '.>:_: :,,;;,:i.\ \ , i.... :>;~.':: . .: ...... .:0.... '. .... S 77 286 , .~~~~. 5100,472 1.';_" "" I ' ~".: .:' '.. . . "". .' !. ::' .".. . ..... . '. . .:.':....... .,":, " : ....' .,"::: ' -' .: . '-"~' - .....: . . . ;..... ~ ~ . '. . ,.... ~ :, ~.: : .~. ....':. , \ ! L 2,500 ;,.5 2,500 5117,758 5 26,664 5206.922 PAGE 1 OF 5 5 I. , L- .-------; , 3. PPOPOSEEl PFlICE PART III . PRICE SUMMARY CO~PETITOR'S ~ATALOG LISTINGS, '" (Indicate basis for USE ESTIMATES. PRIOR QUOTES 14. CONTRACTOR 14.. HAS A FEDERAL AGENCY OR A FEDERALLY CERTIFIED STATE OR LOCAL AGENCY PERFORMED ANY REVIEW OF YOUR ACCOUNTS OR RECORDS IN CONNECTION WITH ANY OTHER FEDERAL GRANT OR CONTRACT WITHIN THE PAST TWEL.VE MONTHS? XJ V ES 0 NO (ll "Yes" give name address and telephone number of reviewing office) EPA Audit Agency, Region V 230 N. Dearborn Street Chicago, Illinois (312) 353-5250 14b. THIS SUMMARY CONFORMS WITH THE FOL.L.OWING COST PRINCIPL.ES 41 CFR 1-15.4 14c. This proposal i!'i submitted for use in connection with and in response to (1) RpqllP!';r from r.i ry of Gilroy, California . This is to certify to the best of my knowledge and belief that the cost and pricing data summarized herein are complete, current, and accurate as of (2). March 8 r 1979 and that a financial management capability exists to fully and accu- ratelyaccount for the financial transactions under this project. I further certify that J understand that the subagreement price may be subject to downward renegotiation and/or recoupment where the above cost and pricing data have been determined, as a result of audit, not t. o~ ve b en complele, cune~t and curate as of the date above. /1. ~ · // " (3) March 8, 1979 . ~//df/ t.~ DATE OF EXECUTION Partner TITLE OF PROPOSER 14. GPANTEE REVIEWER I certify that I have reviewed the cost/price summary set forth herein and the proposed costs/price appear acceptable for 311brlgreement award. DATE OF EXECUTION SIGNATURE OF REVIE'l/EF> TITLE OF REVIEWER 16. EPA REVIEWER (If applicable) DATE OF EXECUTION SIGNATURE OF REVIEWER TITL::: OF ~E\/IEWER: EPA Form 5700-41 (2-76) PAGE20F5 ',.' ( , , ~ :;...: " ,....... I --- . ~.-- .&.,.~ .--- t - ~ r.-- t:::t: '. ,--- i I L.. ,.... ~. , 1..-_., ~ . .\ . In completing this form, CAREFULLY READ AND FOLLOW ALL INSTRUCTIONS. Many items are not self-explanatory, Attach additional sheets if necessary. Use only the applicable portions of this form: Part I is applicable to all subagreements, Part II is applicable to all subagreements requiring a cost review pursuant to EPA grant regulation:;, Part III is applicable to all subagr:eements where review is based on price comparison (i,e" price analysis), Part IV certifications will be executed as required by the regulations and by the instructions for each block, PART I - GENERAL Item 1 - Enter the nam!! 01 the grantee as, shown on the grant agreement. Item 2 - Enter the grant identification number shown on the grant agreement (or assigned to the project. if no grant agreement has yet been executed), Item 3 - Enter the name of the contractor or subcontractor with whom the subagreement is proposed to be executed. Item 4 - Enter the date of the contractor's or subcontractor's proposal to the grantee. Item 5 - Enter the full mailing address of the contractor or subcontractor. Item 6 - Give a brief description 01 the work to be performed under the proposed subagreement. PART II - COST SUMMARY This portion of the form is to be completed by the contractor (or his subcontractor) with whom a subagreement is proposed to be executed, unless that subagreement is a formally advertised, competitively bid. fixed price contract. Nothing in the following discussions should be interpreted as recommending the inclusion as direct costs any items normally treated as overhead costs in the firm's accounting or estimating system, 40 CFR 30.710 contains general cost principles applicable to subagreements under EPA grants, Pursuant to that section. all subagreements awarded to profit-making organizations are subject to the cost principles of 41 CFR 1-15.2, Architect-engineer and construction contracts are subject also to 41 CFR 1-15.4, Item 7 - Direct labor Direct labor costs normally Include salaries at a.regular time rate. Overtime premiums should be Identified separately onjn attachment. Incurrence of unanticipated overtime costs requires the approval of the grantee at the time of incurrence, If Significant overtime is known to be needed at the time of completion of the cost review form, the reasons therefor. labor categories. rates and hours should be Identified on an attachment. Also Included is the cost of partners' or principals' time when they are directly engaged In services to be rendered under the contract. In case the full time of any employee IS not to be devoted to work to be performed under the contract. only the cost of actual time to be applied should be Included. The compensation of a partner or principal shall be mcluded as direct cost only for the time that he is expected to be engaged directly in the performance of work under the contract and only if it is the firm's normal practice to charge such time directly to all jobs, The rate of compensation of a partner or principal shall be commensurate with the cost of emplOYing another qualified person to do such work. but the salary portion shall not exceed the actual salary rate of the mdivldual concerned. Distribution of profits shall not be included in the rate of compensation. EPA Form 5700-41 (2.76) "'-~'y-. I INSTRUCTIONS . Form Approved OM8 fIIo, 158-ROl44 Enter in block 7 the categories of profeSSional or technical personnel necessary to perform each malor element of work under the contract scope of services. Estimate man-hours for each category and extend them by the wage rates to be paid dUring the actual performance of the work.' Current rates, adJusted for prOjected increases, If any, should be used for the actual categories of labor contemplated, All projected increases should be supported by recent experience or established personnel policy, Enter in the far right column the total estimated direct labor cost, Supporting records to be maintained by the contractor and which must be submitted or made available to the grantee or EPA upon request include: a, The method of estimating proposed man-hours, b. The computation technique used in arriving at proposed labor rates, c. The specific documents, books, or other records used as factual source material to develop proposed man-hours and labor rates. d. Detailed rate computations which were used in computing the information submitted on the form, If in block 14a, the contractor has checked "No," a brief narrative description of the methods used in arriving at items a through d above shall be included on an attached sheet. Item 8 -Indirect Costs Indirect costs may consist of one or more pools of expenses which are grouped on the baSIS of the benefits accrumg to the cost objectives represented by the distribution base or bases to which they are allocated. Since accounting practices vary, the use of particular groupings IS not required. Neither is the use of any particular allocation base mandatory. However. it IS mandatory that the method used results In an equitable allocation of indirect costs to the cost Objectives which they support, Normally, the firm's accounting system and estimating practices will determine the mthod used to allocate overhead costs. The firm's established practices, if m accord with generally accepted accounting principles and PROVIDED THEY PRODUCE EQUITABLE RESUL TS IN THE CIRCUMSTANCES, will generally be accepted. Proposed overhead rates should represent the firm's best estimate of the rates to be experienced dUring the contract period. They should be based upon recent experience and be adjusted for known factors which will influence experienced trends. Common overhead groupIngs are overhead on direct labor and general and admimstrative expenses, The first grouping usually includes employment taxes, fringe benefits, holidays, vacation. Idle, time, bonuses, etc" applicable to direct labor. The second generally includes the remalnmg costs whIch because of their incurrence for common or jomt oblectives are not readily subject to treatment as direct costs, It is expected, however, that proposal groupIngs will correspond with the firm's normal method of accumulating indirect costs. (Under some accounting systems, the first grouping would be Included instead under Item 7) No speCial categorization IS reqUired provided the results are realistiC and equitable. Direct salaries are the normal dIstribution base for overhead costs, but In some clfcumstances other bases prOduce more equitable results. As m the case of overhead costs groupmgs, the method to be used will depem;f upon the firm's normal practices and the equity of the results produced m the Circumstances. PAGE30FS ,- -'.-, .-";l~~:'.~ ..Ie .:. ," .." - f' . , ,... ",. . 4, .. ' ~, ': (..., ." . 1,,-0. , t -. r-' ~ ,. ~ , 1 li ~. f ' ! t I , I , ""'----.. , i ~ , ~, I t ~. ,"' .;-;: .." - . In the case of multi-branch firms. lomt ventur.s filiates. it IS -expected that overhead costs applicable to the s 10catJon(s) where work is to 'be performed will be propos. pany-wlde. jomt'Venture. or affiliate rate averages may not be appropriate. The rates should be tailored to the work locations. The objective is to allocate overhead costs more preCisely. The rate proposed should be based on cost data from the most recent fiscal periods updated to reflect changes m volume of business or operations. Enter in block 8 the indirect cost poolS normally used by the firm for allocation of indirect costs. Enter the indirect cost rate for each pool and extend each one by the' ratp base to which it applies to arrive at the estimated indirect costs td be incurred during the actual perlormance of the work. If the direct jabor total from block 7 is not used as the rate base for any of the indirect cost pools, the rate base used must be explained on an attached sheet. A brief narrative statement outlining the firm's policies and practices for accumulating indirect costs and the method used to compute the proposed rate or rates shall accompany the form. Include comment on the firm's policies regarding the pricing and costing of principals' time. The normal accounting treatment of principals' salaries. the annual amounts. and the hourly charge rate. if uses!. should be discussed. Enter in the far right column the total estimated indirect costs. Supporting records to be maintamed by the contractor and which must be submitted or made available to the grantee or EPA upon request include: a. Detailed cost data showing overhead accounts. allocation bases. and rate computations for the preceding fiscal period. If more than six months of the current fiscal period have elapsed. cost data for this period should be included as one of the three periods. b. Company budgets. budgetary cost data. and overhead rate computations for future perlod(s), Item 9 - Other Direct Costs The following items are Illustrative of costs normally included in this category of costs: a. Travel costs. mcluding transportation. lodging. subsistence. and . incidental expenses incurred by personnel or consultants while in a travel status in connection with the performance of services reqUired by the contract. The cost prinCiples genrally require the use of less than first class air accomodations and also limit the cost of private aircraft. b. Equipment. Materials. and Supplies (1) Long distance telephone. telegraph. and cable expl!nses to be incurred in connection with the performance of services required in connection With the contract (2) Reproduction costs Including blueprints. black and white prints. ozalid prints. photographs. photostats. negatives: and express charges. (3) Commercial printing, binding. artwork, and models. (4) Special equipment. c. Subcontracts. d. Other. Direct costs. if any. not Included above. e PA Form 5700-41 (2-76) l.-T,i/ ~~ j~ u. )" I Enter in blocks 9a'd.1I direct cost.s proposed. Travel costs entered must be suppa an attachment which Identlfie~ the number of man-trips pro and the estimated cost per man-Irlp for both local and long distance transportation. The number of days and the rate per day must be provided to support the per diem shown, Each subcontract and consultant agreement must be identified separately In block 9c. For each subcontract in excess of $10.000. this EPA Form 5 700-41 completed and certified by the subcontractor shall be appended, ' Enter in the far right column on line ge the total of all other direct costs (9a-d). Supporting data to be maintained by the contractor and which must be submitted or made available to the grantee or EPA upon request include: a. basis for other direct costs proposed. b. factual sources of costs. rates. etc" used in computing the proposed amount of each cost element. Item 1 0 - Total Estimated Cost Enter the total of all direct labor. indirect costs. and other direct costs from items 7. 8. and 9. Item 11 - Profit A fair and reasonable proviSion for profit cannot be made by simply applYing a certain predetermined percentage to the total estimated cost. Rather, profit will be estimated as a dollar amount after conSidering: a. degree of risk, b, nature of the work to be performed. c. extent of firm's investment, d. subcontractingofwork. and e. other criteria. The Federal Procurement Regulations cost principles applicable to subagreements with profit-making organizations (41 CFR 1-15.2 and 1-15.4) disallow certain types of costs which are sometimes incurred by firms in the normal conduct of their business. Examples of costs which are not allowable under these cost principles include. but are not limited to. entertamment. mterest on borrowed capital and bad debts, Because the Government conSiders "profit" to be the excess of price over allowable costs, such computation can mdlcate a higher profit estimate than the firm's experienced profit as it customarily computes it. The contractor may separately disclose to the grantee its customary computations. Enter the dollar amount of profit in block II. Item 12 - Total Price Enter the total of item 10 and item 1l. PART III . PRICE SUMMARY This portion of the form is for use by a grantee when price comparison (Le" price analysis) is utilized in subagreement review. It may also be used by a contractor when price comparison is used as a baSIS for award of a subcontract. Item 13 - Competitor's Catalog Listings. In-House Estimates. Prior Quotes Enter sources of all competitive bids or quotes received. or catalogs used and their prices. or in, house estimates made. if appropriate, for comparison. Attach additional sheets If necessary, particularly for purchases of several different items, Enter in the far right column the proposed price for the subagreement. PAGE 4 OF S ~ . ..." :-. !, .-.... :.\... .' r-- .,._~, I I ,. (' t F ~"..--. t=:::~ r ! t-.- I....:..,....... ~ ~ : : PART -tV - CERTIFICATIONS. Item 14 - Contractor - FOR U5t: BY CONTRACTOR OR SUBCONTRACTOR ONL Y a. Complete this block only If Part II has been completed. b. Complete this block only if Part II has been completed. Enter the specific cost principles with which the cost summary of Part II conforms. Cost principles applicable to subagreements with various types or organizations are identified in 40 CFR 30,710. Cost prinCiples applicable to subagreements with profit.making organizations are those at 41 CFR 1-15.2, and. for architect-engineer or construction contracts. 41 CFR 1-15.4. c. (1) Describe the proposal, quotation, request for price adjustment or other submission involved, giving appropriate identifying number (e.g., RFP No._). (2) Enter the date when the price negotiations were concluded and the contract price was agreed to, The responsibility of the contractor is not limited by the personal knowledge of the contractor's negotiator if the contractor had information reasonably available at the time of agreement, showing that the negotiated price is not based on complete. current and accurate data, (3) Enter the date of signature. This date should be as close as practicable to the date when the price negotiations were concluded and the contract price was agreed to (not to exceed 30 days). . tem 15 - Grantee Reviewer - FOR USE BY GRANTEE ONL Y If required by applicable grant regulations. the grantee must ubmlt the signed form for EPA review prior to execution of the ubagreement. em 16 - EFA Reviewer- FOR USE BY EPA ONLY 'A Form 5700-41 (2.76) .-----'_.,..........--.....,...~,. . .. .;. ..... ',. -*'.'", . Form Approvpd OMB No. 158-R0144 . ~AGE50F'5 "'.' ." - ~ r--- - '....i ~. ,....-- i I ! L II ;. ,.......... f I ! t:_..;... . . EXHIBIT A EPA FORM 5700-41 (2/76) City of Gilroy, California Sewage Facilities . Cost Summary for Detailed Inspection of Construction (Division "D"), Final Revenue Program (Division "E"), Operation and Maintenance Manual (Division "F") and Plant Start-Up Service (Division "G"). 7. Direct Labor Division "0" - Detailed Inspection of Construction Classification Estimated Hours Hourly Rate Resident Engineer Inspector 3,120 1,038 $17.00 10.38 Total Estimated Wages (Division "D") = Division "F" - Operation and Maintenance Manual Classificationi Estimated Hours Hourly Rate Vice President Principal Associate. Associate Senior Engineer Engineer Engineering Technician 8 8 40 200 240 $37.00 17.00 15.43 14.20 11.10 80 9.73 Total Estimated Wages (Division "F") = Division "G" - Plant. Start-Up Services Classification Estimated Hours Hourly Rate Project Engineer Senior Engineer 100 300 $15.84 15.19 Total Estimated Wages (Division "G") = Estimated Cost 53,040 10,774 $63,814 Estimated Cost 296 136 617 2,840 2,664 778 $7,331 Estimated Cost $1,584 4,557 $6,141 4" . . . EXlIIBIT B EPA FORB 5700-41 (2-76) CITY OF GILROY, CALIFORNIA SEWAGE FACILITIES CONSOER, TOWNSEND & ASSOCIATES ACCOUNTING POLICIES FOR DETER~1ING COSTS ON CONTRACTS FOR ENGINEERING SERVICES All direct labor is accounted for in detailed permanent records and charged to individual projects on the basis of hours worked and actual wage rates at the time services are performed. All services provided by consultants outside the firm are accounted for by project and do not constitute a part of the overhead pool. In accordance ~Jith long established government policy, certain costs are considered non-allowable and are excluded for overhead. These include: Advertising Entertainment and Promotion Expenses Commissions Bad Debts Charitable Donations Interest on Borrowed Capital Overhead is expressed as a percentage of direct labor and consists of all allowable costs which cannot be directly allocated to projects. These accounting practices have been consistently followed by Consoer, Townsend and Associates for determining costs. All the principals of Consoer, Townsend & Associates devote their full time exclusively to the firm's operations. Principals' time spent on specific projects is charged to that project. Time not devoted to specific proj~cts (administrative time) becomes a part of the overhead pool. -- ~" . . . I, SUSANNE E. STEINNETZ, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 79-24 is an original resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 19th day of March , 19~. at which meeting a quorum was present. IN WITNESS t-JHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy, this 20th day of March , 19 79.