Resolution 1979- 25
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RESOLUTION NO. 79 - 25
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING AN
AMENDMENT TO THE AGREEMENT FOR ENGINEERING CONSULTING SERVICES -
SEWAGE FACILITIES DIVISION "E" - FINAL REVENUE PROGRAM.
WHEREAS, the Agreement for Engineering Consulting Services
Sewerage Facilities, dated July 20, 1970 has been previously submitted
to and approved by the City Council; and
WHEREAS, the Amendment to said Agreement, Division "E"
Final Revenue Program 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 Con-
sulting Services - Sewage Facilities Division "E" - Final Revenue
Program with CONSOER, TOvlliSEND & ASSOCIATES, Consulting Engineers, a
co-partnership, 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 following
vote:
AYES:
NOES:
ABSENT:
COUNCIL :MEMBERS: CUNNINGHAM, BUGHAN, LINK, PATE,
STOUT and GOODRICH.
COUNCIL MEMBERS: None
COUNCIL MEMBER: CHILDERS.
APPROVED:
~~&?~
Mayor
ATTEST:
pgSOLUTION NO. 79 - 25
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EXHIBIT "A"
AMENDMENT TO
AGREEMENT FOR ENGINEERING CONSULTING SERVI'CES
SEWERAGE FACILITIES
DATED 20th DAY OF JULY 1970
This Agreement Amendment entered into this
March
19th
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 Treat-
ment Plant Improvements and Interceptor Sewer Construction
on the basis of plans and specifications for such project
prepared by the Engineer, and
WHEREAS, the City is required by the regulations of the
Environmental Protection Agency and the California State
Water Resources Control Board to develop a final revenue
program for the project and
WHEREAS, preliminary financial information for the
final revenue program was required immediately by the City
and the Engineer was authorized to proceed with the develop-
ment of said information as of November 29, 1978, and
WHEREAS, the City deemed it necessasry to proceed
immediately with work on the final revenue program and the
Engineer was authorized to proceed with said work as of
March 5, 1979, and
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WHEREAS, the development pf a final revenue program was
not included in the scope of work of the original agreement,
and
WHEREAS, the payment for engineering services for the
final revenue program must be on a cost reimbursement basis
in accordance with the current regulations of the Environmental
Protection Agency and said basis is not provided in the
original agreement, and
WHEREAS, the original agreement includes a Division
"E", Financial Report and Extra Work, to be performed upon
further authorization, and
WHEREAS, the City and the Engineer have mutually agreed
that the payment for engineering services provided under
Division "E" 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:
I. Division "E" of said original agreement is hereby
amended to read as follows:
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The scope of work to be performed by the Engineer for
the final revenue program is as follows:
PHASE I -- DEVELOPMENT OF PRELIMINARY INFORMATION
The Engineer shall prepare preliminary information on
the allocation of capital and operation and maintenance
costs of the waste water treatment facilities between the
cities of Gilroy and Morgan Hill. This preliminary infor-
mation shall be based on the Engineer's estimates of
construction costs and operation and maintenance costs of
the waste water treatment facilities. Values of the existing
facilities and operation and maintenance costs of the collection
systems shall be supplied by the cities of Gilroy and Morgan
Hill.
It is understood that the information developed in this
Phase I of the final revenue program is preliminary and
subject to change under Phase II depending upon actual
construction costs, revised operation and maintenance costs,
changes in policy by the cities of Gilroy and Morgan Hill,
revisions to guidelines, and other factors.
The Engineer shall attend up to a total of four (4)
meetings to present information developed under Phase I.
The Engineer is authorized as of November 29, 1978 to
commence work under this Phase I.
PHASE II - PREPARATION OF FINAL REVENUE PROGRAM
The Engineer shall prepare a final revenue program
report for the waste water treatment facilities. This
study shall result in the development of separate systems of
charges for the cities of Gilroy and Morgan Hill when the
new facilities are placed in operation.
The scope of work for Phase II shall consist of the
following tasks:
1. Identify, classify and estimate wastewater loadings
from all commercial, industrial and institutional user~.
Pollutant concentrations shall be based on established
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values for typical commercial, industrial and institutional
groups. Any sampling or testing that may be required shall
be the responsibility of the City and is not included in the
scope of the Engineer's work.
2. Estimate wastewater loadings from all residential
user groups.
3. Estimate inflow/infiltration, future capacity and
total loadings.
4. Assist in establishing rate making policies to be
used in the development of the user charges for each city,
including the attendance at up to a total of four (4) meetings
for this purpose.
5. Estimate operation and maintenance costs, including
replacement and operating reserve fund accruals, for the
waste water treatment facilities and the collection system
of each city.
6. Estimate capital costs, including debt service and
capital outlays.
7. Determine capital cost allocations based on the
awarded construction costs.
8. Calculate unit capital and operation and maintenance
costs.
9. Calculate annual revenues required from each user
group.
10. Calculate rates for each user group.
11. Complete the forms requested by the State Water
Resources Control Board on the development of the final
revenue program and submit to each city with a summary
report not to exceed five (5) pages in length.
12. Attend up to a total of two (2) meetings to present
the results of Phase II of the final revenue program.
It is understood and agreed that the final revenue
program will require updating prior to the completion of
construction of the Waste Water Treatment facilities and
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that the said updating is not within the scope of work of
this agreement.
The Eng"ineer is authorized as of March 5, 1979 to
commence work under this Phase II.
II. The following section is added to the original
agreement after Division "G":
"COMPENSATION TO BE PAID ENGINEERS FOR
SERVICES DESCRIBED IN DIVISION "E"
As compensation for all services described in amended
Division "E" 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 Division "E" of this
agreement, mutually agree to the establishment of a cost
ceiling in the amount of $38,474 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 $38,474 may not be
exceeded without formal written amendment of this agreement.
If changes in the scope or amount of the work described in
Division "E" 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.
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2. Profit.
The City and the Engineer having negotiated for
the performance of services as described in Division "E"
mutually agree to the establishment of a fixed dollar profit
in the amount of $5,018 to be paid to the Engineer for the
performance of services described herein.
said profit in
the amount of $5,018 shall be paid to the Engineer irres-
pective 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 $38,474.
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
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c. Direct costs (costs 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, plus
d. Profit equal to the sum of total direct
labor, plus overhead, all times a multiplier
of 0.15.
Said monthly progress payments shall be paid by 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
lS 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 $5,018 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 Division "E" 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
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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 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
NormanB. Goodrich, Mayor , and the Engineering firm
of CONSOER, TOWNSEND & ASSOCIATES, by Frederick N. Van Kirk,
Partner, have caused this Agreement to be signed this 19th
March
day of
, 1979.
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CITY OF GILROY, CALIFORNIA
By: /s/ NORMAN B. GOODRICH
Mayor
ATTEST:
J4&~fo~9
CONSOER, TOWNSEND & ASSOCIATES
B~~~
Partner
WITNESS:
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COST OR PRICE SUMMARY FORM.OR SUBAGREEMENTS UNDER U.S. EeRANTS
. , (See accompanying i ., ctions beFore completing this Form)
PART I.GENERAL
F arm A ppro;"ed
. OMS No. 158-ROI..t4
1. GRANTEE
City of Gilroy, California
3. NAME OF CONTRACTOR OR SUBCONTRACTOR
Consoer, Townsend & Associates
4. DATE OF PROPOSAL
2'~~'Cr6-1~1~-10
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$ 11 4Sh
$ S n 1 Q
~ lR 47.1
S. ADDRESS OF CONTRACTOR OR SUBCONTRACTOR (Include ZIP code)
6. TYPE OF SERVICE TO 8E FURNISHED
1671 The Alameda
San Jose, CA
Final Revenue Program
PART II. COST SUMMARY
7. DIRECT LABOR (Specify labor categories)
ESTI-
MATED
HOURS
HOURLY
RATE
ESTIMATED
COST
See attached Exhlblt "A"
s
$14,546
DIRECT LABOR TOTAL:
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8. INDIRECT COSTS (Specify indirect cost pools)
ESTIMATED
COST
RATE
x BASE =
Overhead
130% s 14,546
$ 18 910
See Exhibit
Re: Accountinq Policie~
INDIRECT COSTS TOTAL: 1::\:<
".' .'
"B"
9. OTHER DIRECT COSTS
a. TRAVEL
ESTIMATED
COST
(1) TRANSPORTATION
(2) PER OIEM
$
$
$
TRAVEL SUBTOTAL:
I,;' .:," . ". '....,..
, QTY COST
ESTIMATED
COST
b. EQUIPMENT, MATERIALS, SUPPLIES (Specify categories)
$
$
EQUIPMENT SUBTOTAL:
c. SUBCONTRACTS
ESTIMATED
COST
$
SUBCONTRACTS SUBTOTAL:
. I
$
d, OTHER (Specify categories)
ESTIMATED
COST
s
OTHER SUBTOTAL:
e. OTHER DIRECT COSTS TOTAL:
10. TOTAL ESTIMATED COST
1 I. PROFIT
12. TOTAL PRICE
E PA Form 5700.41 (2-76)
I. . t. .
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$
L
TOTALS
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PAGE10F5
PART III . PRICE SUMMARY
, J.
COMPETITOR'S CATALOG LISTIN
(Indicate basI.
N-HOUSE ESTIMATES, PRIOR QUOTES
rice comparison)
MARKET
PRICEiSi
PROPOSED
::>RICE
s
14. CONTRACTOR
14a. 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 TWELVE MONTHS?
PART IV.CERTIFICATIONS
~ V ES 0 NO (II "Yes" give name address and telephone number 01 reviewing oUice)
EPA Audit Agency, Region V
230 N. Dearborn Street
Chicago, ILL (312) 353-5250
14b. THIS SUMMARY CONFORMS WITH THE FOLLOWING COST PRINCIPLES
41 CFR 1-15.4
14c.
This proposal is submitted for use in connection with and in response to (1) ReQlle s t from Ci ty of
Gi 1 ro~. California . This is to certify to the best of my knowledge
and belieF that the cost and pricing data summarized herein are complete, currE'nt, and accurate as of
(2), March 16, 1979 and that a financial management capability exists to fully and accu-
rately account for the financial: transactions under this project. I further certify that I understand that the
subagreemp.nt 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 to ve en co plet.e, current~7rate as
mar the date above. _ '1 ~ ~ ~
Mrlrf'"'h lh, lq7q ~J
OATE OF EXECUTION SIGNAT'~Re: OF PROPOSER
Partner
14. GRANTEE REVIEWER
T1TLE OF ?r=tOPOSER
r certify that r have reviewed the cost/price sammary set forth herein and the proposed costs/price appear
acceptable for 511bRgreement award.
DATE OF EXECUTION
SIGNATURE OF ~EVIEWER
16. EPA REVIEWER (II applicable)
TITL.E OF REI/tE't"ER
DA.TE OF EXEC'..JTION
SIGNATURE OF REVIEWER
EP4 Form 5700.41 (2.76)
T ' T ,_ E :> F ;:, =:: 'I I 5: N E R
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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 regulations.
Part III is applicable to all subagreements 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~ of 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 of 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 on an
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
included 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 indivIdual concerned. DIstribution of profits shall
not be included in the rate of compensation.
EPA Form 5700.41 (2.76)
Form Approved
OMS No. 158-ROI44
INSTRUCTIONS
.
Enter in block 7 the categories of professional or technical
personnel necessary to perform each major 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 accruing 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 In accord with generally accepted
accounting princljJles 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 admInIstrative expenses. The first groupIng usually
Includes employment taxes. fnnge benefits, holidays, vacation, idle
time. bonuses, etc.. applicable to direct labor, The second generally
includes the remaimng costs whIch because of their Incurrence for
common or joint objectives 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 dlstnbutlon base for overhead
costs. but In some circumstances other bases produce more
equitable results, As in the case of overhead costs groupings. the
method to be used will depend upon the firm's normal practIces and
the equity of the results produced in the circumstances.
PAGE30F5
, . In th~ Gase of multi. branch firms, joint ven.r affiliates. it is
expected that overhead costs applicable to the specdlC 10catlOn(s)
where work IS to be performed will be proposed. Company. wide,
loint 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 in 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'rate base to which it applies to
arrive at the estimated indirect costs to be incurred during the actual
performance of the work, If the direct labor 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 shaH 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 used. should be discussed.
Enter in the far right column the total estimated indirect costs.
Supporting records to be matntained by the contractor and
which must be submitted or made available to the grantee or EPA
upon request include:
a. Detailed cost data showtng 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 period(s),
Item 9 - Other Direct Costs
The following items are illustrative of costs normally included in
this category of costs:
a, Travel costs. including transportation, lodging, subSistence,
and Incidental expenses incurred by personnel or
consultants while In a travel status in connection wlfh the
performance of services reqUired by the contract, The cost
prinCiples genrally require the use of less than first class air
accomodatlons and also limit the cost of private aircraft.
b. EqUipment. Materials, and Supplies
(1) Long distance telephone, telegraph, and cable
expenses to be incurred in connection with the
performance of services required in connection
wlfh the contract,
(2) Reproduction costs Including blueprints. black
and whlfe 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. d any, not included above,
EPA Form 5700-41 (2-76)
Form ApproYoo
OM.'> No. f 51'-R014,s
Enter in blocks 9a.A.her' direct costs proposed, Tr~vel cost;
entered must be supp"-'by an attachment which identifies the
number of man.trips proposed and the estimated cost per man.trip
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 5700-41 completed and certified b~ 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 10 - 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. subcontracting of work, and
e, other criteria.
The Federal Procurement Regulations cost prinCiples applicable
to subagreements with proflf.maklng organizations (41 CFR 1-1 5,2
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 limlfed to. entertainment. interest on borrowed capital
and bad debts. Because the Government considers "profit" to be the
excess of price over allowable costs. such computation can indicate
a Mgher profit estimate than the firm's experienced profit as it
customarily computes it. The contractor may separately disclose to
the grantee Ifs customary computations,
Enter the dollar amount of profit in block II.
Item 12 - Total Price
Enter the total of item 10 and item 11,
PART III . PRICE SUMMARY
This portion of the form IS for use by a grantee when price
comparison (i,e.. 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.
PAGE40FS
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l>ART IV - CERTlFICATI.
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Form Approved
OMS NO<. 158-R0144
Item 14 - Contractor . FOR USE BY CONTRACTOR OR
SUBCONTRACTOR ONLY
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.englneer 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).
Item 15 - Grantee Reviewer - FOR USE BY GRANTEE ONL Y
If required by applicable grant regulations, the grantee must
submit the signed form for EPA review prior to execution of the
subagreement.
Item 16 - EF A Reviewer - FOR USE BY EPA ONL Y
EPA Form 5700.41 (2.76)
PAGE SOF 5
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EXHIBIT A
EPA FORM 5700-41 (2/76)
City of Gilroy, California
Sewage Facilities
Cost Summary for Final Revenue Program (Division "E")
7. Direct Labor
Division "E" - Final Revenue Program
Estimated Hourly Estimated
Classification Hours Rate Cost
Vice President 20 $37.00 740
Principal Associate 54 17.00 918
Project Engineer 120 14.80 1,776
Senior Engineer 950 11.42 10,849
Engineering
Technician 27 9.73 263
Total Estimated Wages (Division "E") = $14,546
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EXIIIBIT B
EPA FORf.1 5700-41 (2-76)
CITY OF GILROY, CALIFORNIA
SEWAGE P~CILITIES
CONSOER, TOWNSEND & ASSOCIATES ACCOUNTI~G POLICIES
FOR DETERMING 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 fir~ are accounted
for by project and do not constitute a part of the overhead pool.
In accordance with long established government policYr 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 projects (administrative time) becomes a part of
the overhead pool.
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I, SUSANNE E. STEINNETZ, City Clerk of the City of Gilroy,
do hereby certify that the attached Resolution No. 79-25 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, this21st day of
March , 19 79.