Resolution 1979- 38
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RESOLUTION NO. 79 - 38
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY APPROVING AN AMEND-
MENT TO THE AGREEMENT FOR ENGINEERING CONSULTING SERVICES SE~mRAGE FACI-
LITIES, DATED JULY 20, 1970.
vffiEREAS, the Agreement for Engineering Consulting Services
Sewerage Facilities, dated July 20, 1970 has been previously submitted
to and approved by the City Council; and
HHEREAS, 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 Con-
su1ting Services Sewerage Facilities dated July 20, 1970 with CO~SOER,
TOWNSEND & 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 7th day of Hay, 1979, by the following vote:
NOES:
COUNCIL HEMBERS: CHILDERS, CUT\mINGHAH, HUGHA 1\1 ,
LINK, PATE, STOUT and GOO:n-q,ICH.
COUNCIL 11EMBERS: None
AYES:
ABSENT:
COUNCIL MEMBERS: None
APPROVED:
](~_~~~4 -~
Mayor
ATTEST:
;dJW~k2tff~
RESOLUTION NO. 79 - 38
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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 May , 1979, by and between the CITY OF GILROY, a
municipal corporation of the State of California, hereinafter
7th
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
promlses and subject to the terms, provisions and conditions
hereinafter set forth, the parties hereto do hereby agree as
follows:
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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 liD" 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
arc furnished by the Enqineer then, the cost ceiling and
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~rofit 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
contractorsl 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 t1ANUAL
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
plan t.
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 sununary
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.
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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 serVlces
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
servlces 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."
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II. The following section lS added to the original
agreement after Division "G":
"C:)MPENSATION TO BE PAID ENGINEERS FOR
SERVICES DESCRIBED IN DIVISIONS "D", "F", AND "G"
As compensation for all services described in amended
Divisions "D", "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 "0", "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 arlses.
2. Profit.
The City and the Engineer having negotiated for
the performance of services as described in Divisions liD",
"p" and "G" mutually agree to the establishment of a fixed
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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 Lhe sum of total direct
lc..lbor, plus overhead, all times a multiplier
of G.l'S.
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Said monthly progress payments shall be paid QY 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 serVlces provided
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under Divisions "0", 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
Norman B. Goodrich, Mayor
, and the Engineering firm
of CONSOER, TOWNSEND & ASSOCIATES, by Frederick N. Van Kirk,
Partner, have caused this Agreement to be signed this 7th
day of
May
1979.
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ATTEST:
A~o--J ~ ,dt;-~
~ty ClerR J.
WITNESS:
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CITY OF GILROY, CALIFORNIA
By:
~~.~~
ayar
CONSOER, TOWNSEND & ASSOCIATES
// /: ,#~./~/
By: ~C'!@;/~%A~/
Partner
COST OR PRICE SUMMARY FORMAT Fr - SUBAGREEMENTS UNDER U.S. EPA (,P"\'NTS F arm Approved
(~L'e accompi'wyrng Inslrens before complellng (his Forrr.) 0\1 B No. 158 - R (J/.N
PART I-GENERAL
1. GRANTEE 2. GRANT NUMBER
City of Gilroy, California C-06-1019-10
1. NAME OF CONTRACTOR OR SUBCONTRACTOR 4. DATE OF PROPOSAL
Consoer, Townsend & Associates
5. AOORESS OF CONTRACTOR OR SUBCONTRACTOR (Include ZIP code) 6. TYPE OF SE~VICE TO BE FURNIS....E D
1671 The Alameda Detailed inspection of
San Jose, CA construction, operation and
maintenance manual and plant
start-up services.
PART II. COST SUMMARY
ESTI. HOURLY ESTIMATEO
7. OIRECT LABOR (Specify lebor catelloriea) MATEO TOT AU
HOUR5 RATE COST
~pp ::l~"" ..- ..:I l"vhihit- "n." S S 77 ?Rh ,:;t' ''''''''.' ,...,
" , "
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DIRECT LABOR TOTAL: .C $ 77,281
a. INOIRECT COSTS (Specify indirect COlt paolI) RATE i;:STIMATED ',/,'<,.,.. "'f ;".l.
x BASE = .););< .'.'.'..,'. ,,:,i' ,
COST l".
..:I 1 1n~ 5 77 ?Rh 5 lnn t17?
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attached Exhibit "B" ...ing :>olicies .......'.', ,"
See Re: Accoun ,." .'
INDIRECT COSTS TOTAL: . . ~- -. .'..,," ", " ,.' ':.",' , 5100,472
" .,
3. OTHER DIRECT COSTS ';/.,. "
a. TRAVEL ESTIMATED
COST
(1) TRAN5PORT.\TION S :
(2) F'ER DIEM 5 ,.,...,.. .
,<,.'.
TRAVEL SUBTOTAL: I 5 , '),
b. EQUIPMENT, MATERIALS, SUPPLIES (Specify cat<tllorie.) QTY COST ESTIMATED
COST
5 5
.
EQUIPMENT SUBTOTAL: I
. ESTIMATEO
C.SUBCONTRACTS .
COST
5
SUBCONTRACTS SUBTOTAL: I 5
d. OTHER (Specify cetello"e.) ESTIMATED
COST
R""l ~-~ .~ on - ""''' $ ? c;nn '.
"
OTHER SUBTOTAL: I 5 2,500 .., ...."....
OTHER DIRECT COSTS TOTAL: : I, , .J 5 2,500
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10. TOTAL ESTIMATED COST S 117,758
II.PROFIT $ 26,664
; 12. TOTAL PRICE S 206,922
. PA Fo,m 5700-41 (2.76)
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, PART III . PRICE SUMMARY .
COMPETI.,.OR'S CATALOG LISTINGS, USE ESTIMATES, PRIOR QUOTES ARKET PPQPO"ED
13.
\ indIcate bas.s lor p. .ce compa"son) ,..>RICEI51 P""C E
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PART IV.CERTlFICATlONS
14. CONTRACTOR
I... 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 FECERAL GRANT OR CONTRACT WITHIN THE PAST TWEL.VE MONTHS!
XJ YES o NO (11 "y.,.." give nam., addresa and telephone number 0/ r.view.n, olliea)
EPA Audit Agency, Region V
230 N. Dearborn Street
Chicago, Illinois (312) 353-5250
14b. THIS SUMMARY CONFORMS WITH THE FOLLOWING COST PRINCIPLES
41 CFR 1-15.4
14e.
This proposal is submitted for use in connection with and in response to (1) RP-QllP-S r from (' i t-y nf
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 n 1979 and that a financial management capability exists to fully and accu-
u,
ratelyaccount for the financial transactions under this project. I further certify that I 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 ,esull of audit, n~/ en complete, c""e~ cura te as
of the date above.
I (3) March 8, 1979 /~~"f' /. ~ #~~ ~
OATE OF EXECUTION '\/ l SIGNA TURE OF PROPOSER
Parrner
TITLE OF PROPOSER
14. GPANTEE REVIEWE~
1 I certify that I have reviewed the cost/price summary set forth herein and the proposed costs/price appear
acceptable for 311b<lgreement award.
OATE OF EXECUTION SIGNA TURE OF REVIEWER
TITLE OF REVIEWER
16. EPA REVIEWER ([J applicable)
OATE OF' EXECUTION SIGNATURE OF' REVIEWER
T , T L ~ 0 F R E 'II E ","1 E R
"P4 Form 5700.41 (2-761
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In completing this form, CAREFULL Y 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 requinng a cost review
pursuant to EPA grant regulation:;,
Part III is applicable to all subagreements where review is based
on pnce 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 suba!lreement 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 bnef descnption 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 pnce 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 pnnciples 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 mclude salanes at afegular tIme rate,
Dvertfme premiums should be Identified separately on jln
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 completkm of the cost
review form. the reasons therefor. labor categones. rates and hours
should be Identified on an attachment, Also Included IS the cost of
partners' or pnncipals' 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 pnnClpal shall be
mcluded as direct cost only for the time that he IS expected to be
engaged directly m the performance of work under the contract and
only illt IS the firm's normal practice to charge such tIme directly to
all lobs, The rate of compensation of a partner or pnnClpal 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)
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INSTRUCTIONS
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Enter in block 7 thE! categones 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. adlusted for
prOjected Increases. If any, should be used for the actual categones
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 distnbution base or bases to wh,ch
they are allocated, Since accountfng 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 m an eqUItable allocatIon of indirect costs to
the cost Objectives which they support.
Normally, the firm's accountmg system and estimatmg practIces
will determine the mthod used to allocate overhead costs, The firm's
established practfces. 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 expenenced dunng the contract penod, They
should be based upon recent expenence and be adjusted for known
factors whIch will Influence experienced trends,
Common overhead groupmgs are overhead on direct labor and
general and admInistratIVe expenses. The first groupmg usually
includes employment taxes, fnnge benefits. holidays. vacation. Idle
time, bonuses, etc" applicable to dIrect labor. The second generally
Includes the remammg costs which because of their mcurrence for
common or JOint oblectlves are not readily subject to treatment as
direct costs, It is expected. however, that proposal groupmgs Will
correspond with the Ilrm's normal method of accumulating mdirect
costs, (Under some accounting systems, the first grouping would be
Included mstead under Item 7.) No speCIal categonzatlon IS reqUired
prOVided the results are realistIC and eqUitable.
Direct salanes are the normal dlstnbution base for overhead
costs, but In some circumstances other bases prOduce more
equitable results, As In the case of overhead costs groupmgs, tile
method to be used will depend upon the fIrm's normal practfces and
the equIty of the results produced In the circumstances.
PAGE30F5
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/n the case of mUltl,Dranch firms, fOlnt ventures or affiliates. It IS
~xpected t,hat o~erhead c~asts dPpIIC3bfe to the S.'- ; locatlon(s)
where wort IS to be perlormed wi/I be propose pany-wlde.
Jomt vent~re, or 3ff;liate rate averages may not be opnate, The
rattlS shoLlld be tailored to the work locations, The obleCtlve IS to
aI/ocate overhead costs more preCisely.
ThtJ rate proposed should be based on cost data from the most
recllnt fiscal penods updated to reflect changes m volume of
busintJss or operatIons,
Enter in block 8 the indirect cost pools normally used by the firm
lor allocation of indirect costs, Enter the Indirect cost rate lor each
pool and extend each one by the rat!! base to which it applies to
arrive at the estimated indirect costs td be Incurred dUring the actual
performance of the work, II the direct labor total from block 7 is not
used as the rate base for any of the Indltect 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 indltect 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 01
principals' salaries, the annual amounts, and the hourly charge rate,
If US". should be discussed.
Enter in the far right column the total estimated indirect costs,
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, 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 followmg Items are IllustratIVe of costs normally included in
th,s category of costs:
a. Travel costs. mcluding transportation. lodgmg, subSistence.
and . inCidental expenses mcurred by personnel or
consultants while in a travel status in connectfon With the
performance of services reqUired by the contract, The cost
prinCiples genra/ly reqUire the use of less than first class air
accomodatlons and also limit the cost of private aircraft.
b. EqUipment MaterEals, and Supplies
(1) Long distance telephone. telegraph, and cable
expttnses to be mcurred m connectIon WIth the
performance of services reqUired in connection
wfth the contract
(2) Reproduction costs mcludmg bluepnnts, black
and white prmts, ozalld prmts, photographs,
photostats, negatIves: and express charges.
(3) CommerCfal prEntmg. bmding, artwork. and
models,
(4) SpecIal eqUipment.
c.
Subcontracts,
d,
Other, Olrect costs. if any, not mcluded above,
: Pol For", 5700-41 (2-76)
Enter In blocks 9a.d all "'her dtrect costs proposed, Travel costs
entered must be suppon., an attachment Nhlch Identifies t~e .
number of man.lrops pro and the o:!stlmated cost per man.trlp
for both local and long dl e transportation, The number of days
and the rate per day must be prOVided to ~upport the per diem
shown. Each ~ubcontract and consultant agreement must be
Identified separately In block 9c, For each subcontract in excess at
$10,000, this EPA Form 5700-41 completed and certified by the
subcontractor shall be appended,
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Enter in the tar nght 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:
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a. basis for other direct costs proposed,
b. factual sources of costs, rates. etc.. used in computing the
proposed amount of each cost element.
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Item 10- Total Estimated Cost
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Enter the total of all direct labor, indirect costs. and other direct
costs from items 7,8, and 9.
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Item 11 - Profit
A fair and reasonable prOVfSlon for profit cannot be made by
simply applymg a certaIn predetermmed percentage to the total
estimated cost. Rather. profit will be estimated as iI dollar amount
after considering:
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a. degree of risk,
b, nature of the work to be performed.
c. extent of firm's Investment.
d, subcontracting of work, ilnd
e. other criteria.
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The Federal Procurement Regulations cost prinCiples applicable
to subagreements with profit-making organizatIons (41 CFR 1-15,2
and 1-15.4) disallow certafn types of costs which are sometimes
incurred by firms in the normal conduct of their busmess, Examples
of costs which are not allowable under these cost prinCIples mclude.
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 mdicate
a higher profit estImate than the firm's experienced profit as It
customarEly computes it, The contractor may separately disclose to
the grantee its customary computatIons,
Enter the dollar amount of profit in block II.
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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 pnce
companson (Le.. price analYSIS) is utilized in subagreement reView, It
may also be used by a contractor when price companson is used as a
baSIS for award of a subcontract.
Item 13 - Competitor's Catalog Listings. In-House Estimates.
Prior Quotes
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Enter sources 01 all competitive bids or quotes received. or
catalogs used and their pnces. or in-house estimates made. if
appropnate. for comparison. Attach additional sheets If necessary,
particularly for purchases 01 several different items.
Enter in the tar nght column the proposed price tor the
subagreement.
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PAGE 4 OF 5
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Form Approvf"'tJ
OMB No, 158-ROIU .
PJl:RT IV
CERTIFICATIONS.
.
item 14 - Contractor FOR USi BY CONTRACTOR OR
:iUBCONTRACTOR 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. (ost principles applicable to
subagreements With proflt'mall.lng organizations are those
at 41 CFR 1-15,2. and, for architect-englOeer 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 a,!reed to,
The responsibility of the contractor is not limited
by the personal knowledge of the contractor's
negotiator it 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 ot 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),
em 15 - Grantee ReViewer - FOR USE BY GRANTEE ONL Y
If required by applicable grant regulations. the grantee must
omit the Signed torm for EPA review prior to execution of the
bagreement,
m 16 - EFA Reviewer - FOR USE BY EPA ONL Y
, Form 5700-41 (2-76)
"'AGE S OF 5
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EXHIBIT A
EPA FORM 5700-41 (2/76)
City of Gilroy, California
Sewage Facilities
Cost Summary for Detailed Inspection of Construction
(Division "0"), Final Revenue Program (Division liE"), Operation
and Maintenance Manual (Division "F") and Plant Start-Up Service
(Division "G").
7. Direct Labor
Division "D" - 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 \\'ages (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
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EXIIIBI1' B
E P 1\ F Oru,1 57 0 0 - <11 (2 - 7 6 )
CITY OF GILqOY, CALIFORNIA
SEWAGE FACILITIES
CONSOER, TO\^lNSEND & ASSOCIATES ACCOU~I'I'ING POLIC I ES
FOR DETER~lING COSTS ON CONTRACTS FOR ENGINEEHING 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 vlith long established government policy, certain costs
are considered non-allowilble 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 proje~ts (administrative time) becomes a part of
the overhead pool.
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy~ do
hereby certify that the attached Resolution No.
79-38 Is an original
resolution, duly adopted by the Council of the City of Gilroy at a
regular meeting of said Council held on the 7th day of
May ,19 12-, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the City of Gilroy, this ~ day of May
, 19~.