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Resolution 1979- 25 !" . . ! 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 . . 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 1. . . 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: 2 . . . 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 3 . . . 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 4. . . 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. 5. . . 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 6. . . 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 7 . . . 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. 8. - . . CITY OF GILROY, CALIFORNIA By: /s/ NORMAN B. GOODRICH Mayor ATTEST: J4&~fo~9 CONSOER, TOWNSEND & ASSOCIATES B~~~ Partner WITNESS: 9. ". 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 . .: '. .' .... .. . '.. .,..'. . s14,546 .: . :.' .,..... :,":'" '. ". .... .' .' '. '. . '. . '.' '. . s18,910 ";. .'. "" .' ". . . ........... . . .... ...... .... '. . ....... . .. "'..' . ,. .' ..... ..... . . '. ...... ". " : . ..... '.' .' '" . . ": . .... :.' ':'.:, .......'..... ,...., . ". " . . . ',' . - , . .':'. :: '. '.. .,;,...,......'.... ..'.. '.' . ,.;' . .' " ,:' .', '.' y' . , ....:.. .....~ S $ 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: . . 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. . I '. I " ". .' $ L TOTALS :.' . . . . .' ..... 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 PAGE20F5 :' . } . 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 : ~. -" ~ l>ART IV - CERTlFICATI. . 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 . . 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 '" . . 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. " .., . . 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.