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1993-131E:\W.DQCS\ORD\EMCON.O ORDINANCE NO. 7-0 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND EMCON BAKER-SHIFLETT, INC. RELATING TO THE PROFESSIONAL ENGINEERING SERVICES ASSOCIATED WITH TESTING AND OBSERVATION AND PREPARATION OF SOIL AND LINER EVALUATION REPORTS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Manager is authorized to execute an agreement between the City of Denton and Emcon Baker-Shiflett, Inc. relating to engineering services associated with testing and observation and preparation of soil and liner evaluation reports under the terms and conditions contained with said Agreement, a copy of which is attached hereto and made a part hereof. SECTION II. That the City Council hereby authorizes the expenditure of funds not to exceed Forty Eight Thousand Dollars ($48,000.00) for the services required pursuant to the Agreement. SECTION III. That this ordinance immediately upon its passage and approval. PASSED AND APPROVED this the Ai2t)day ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: AP ROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY shall become effective of , 1993. 0 0 BY:v 1 44A e z 'd DATE: July 20, 1993 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: PURCHASE ORDER # 35039 - EMCON/BAKER SHIFLETT RECOMMENDATION: We recommend this purchase order to Emcon/Baker Shiflett be approved in the amount of $48,000.00. SUMMARY: This purchase order is for the professional services to perform the Soil and Liner Evaluations for excavations and liner at the Landfill. These services are required by the Texas Water Commission. Professional services of this type are exempt from the bid process. BACKGROUND: Memorandum from R.E. Nelson, Proposal from Emcon/Baker- Shiflett, Purchase Order # 35039. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Solid Waste Landfill Operations. FISCAL IMPACT: Funds for this service will come from 1992-93 budget account number #630-024-0803-8502 for Special Services. pectfully submitted: 000 Lloyd V. Harrell City Manager Approved: Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent agenda.389 Date: July 20, 1993 PUBLIC UTILITIES BOARD AGENDA ITEM TO: CHAIRMAN AND MEMBERS OF THE PUBLIC UTILITIES BOARD FROM: R. E. NELSON, P.E., EXECUTIVE DIRECTOR OF UTILITIES SUBJECT: CONSIDER ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH EMCON BAKER-SHIFLETT FOR GEOTECHNICAL TESTING AND SOIL LINER EVALUATION REPORTS (SLER) FOR A THREE ACRE SECTION OF THE DENTON LANDFILL RECOMMENDATION: The Utility staff recommends award of a contract to EMCON Baker-Shiflett, Inc. in the not-to-exceed amount of $48,000 for preparation of the required SLER's at the Denton Landfill. The Public Utilities Board recommends approval by an unanimous vote. SUMMARY: EMCON Baker-Shiflett has submitted a proposal to prepare SLERIs for the remaining unopened area of Denton's landfill (Area "WII). Compensation is based upon salary cost times a multiplier, itemized prices for specific tests, and direct cost in an amount not to exceed $48,000. The Site Development Plan indicates that Area "WII is scheduled for development now. This is the last phase of liner con- struction. The liner construction must be completed and approved by the Texas Water Commission (TWC) before October 9, 1993. Otherwise, Denton will be required to construct a double liner and leachate collection system to conform to Subtitle I'D" requirements. These are estimated to cost $125,000 for construction plus additional operating cost for the leachate collection system. The Community Services staff has been working toward comple- tion of the final liner sections since last October. In accordance with the Site Development Plan, the liner has been constructed in relatively small pieces or sections. Staff recognized in April that substantial time and money savings could be realized if the remaining section, Area IIWII, could be developed as one section instead of four or five. A5393C/l CHAIRMAN AND MEMBERS OF THE PUBLIC UTILITIES BOARD July 20, 1993 One key condition is the ability to enter into one agreement for SLER preparation instead of issuing a purchase order for each section. The original estimate of SLER preparation was $86, 000 based upon five wall sections and four floor sections. Staff opted to negotiate with one firm who has satisfactorily prepared SLER's for Denton's landfill, and by reducing the continuous effort to two wall sections and one floor section, staff has been able to negotiate an agreement not to exceed $48,000. EMCON Baker-Shiflett has prepared several SLER's at overall cost equal to or below that of any other firm; they are well known by the TWC; we have received very few questions from the TWC about their submittals; they were one of two finalist for the Denton Solid Waste Master Plan Proposal; they prepared one of the Preliminary Summary Master Plans; and they are very familiar with Denton's current conditions and future planning efforts. The agreement also acknowledges that staff will make every effort to construct the wall in one section and possibly save as much as $14,000. Tricky construction and safety conditions must first be prevailed over in order to realize any savings. The Subtitle "D" regulations impose a critical deadline of October 9, 1993, for development of Area "W". After that date, new landfills and portions of existing landfills must include additional requirements. A double liner and a leachate collection system are two requirements which can be avoided if the liner is completed, a substantial amount of waste is deposited and a six inch cover in place before October 9, 1993. Denton has recently entered into an agree- ment with HDR Engineering to address Subtitle "D" requirements which must be implemented for continuous landfill operation after October 9, 1993. The double liner is estimated to cost an additional $64,500 and the leachate collection system, $64,500, for a total additional capital cost savings of $125,000. Denton should expect to incur the additional cost associated with Subti- tle "D" if another site were used in lieu of the existing. However, the optional site might not be in position or have the foresight to seek such savings. Denton would be subject to the cost of Subtitle "D", plus owner's markup, plus additional haul cost if an optional landfill were utilized AGENCIES AFFECTED: The citizens of Denton; Denton Municipal Utilities; EMCON Baker-Shiflett, Inc.; Texas Water Commission A5393C/2 CHAIRMAN AND MEMBERS OF THE PUBLIC UTILITIES BOARD July 20, 1993 FISCAL IMPACT: The cost will not exceed $48,000. Respectfully submitted, R. E. Nelson Executive Director of Utilities Prepared by: C. E. Anderson, P.E. Senior Engineer Approved by: Bill Angelo Director of Community Services Attachments: Exhibit Exhibit Exhibit Exhibit I - Resolution II - Proposal III - Contract IV - Financial/Budget Analysis A5393C/3 STATE OF TEXAS COUNTY OF DENTON KNOW ALL MEN BY THESE PRESENTS: THIS AGREEMENT is made and entered by and between the City of Denton, Texas, a municipal corporation situated in Denton County, Texas, hereinafter called the "City," acting herein by and through Lloyd Harrell, its=duly authorized City Manager, and EMCON Baker- Shiflett, Inc., an independent contractor, acting herein by and through Thomas D. Baker, its duly authorized Chairman of the Board, hereinafter called the "Engineer." W I T N E S S E T H That for and in consideration of the mutual covenants and agreements herein contained, the parties hereto do hereby covenant and agree as follows: SECTION I - SERVICES OF THE ENGINEER The City hereby contracts with Engineer as an independent contractor, and the Engineer hereby agrees to perform, within the professional standards normally accepted in the State of Texas, professional services associated with testing and observation and -;Z _ preparation of Soil and Liner Evaluation Reports (SLER) as agreed in writing and included herein as Attachment "A". - 1 - A2792C/1 SECTION II - CHARACTER AND EXTENT OF ENGINEER'S SERVICES The areas requiring SLER's are identified in Attachment "A". They include approximately 115,000 square feet of floor liner and 860 and 200 feet of wall liner. The floor will be completed first and then the wall. Only two SLER's are anticipated to cover the total wall/floor area of Area W. The tests, testing frequency and observation shall be per all Texas Water Commission regulations and Liner Quality Control Plan (SLQCP). It is understood that this Agreement contemplates the full and complete engineering services for providing testing documentation and preparing SLER's including any and all changes necessary to complete the project as detailed in Attachment "A". Nothing contained herein shall be construed as authorizing additional fees for services. The Engineer acknowledges by the execution of this Agreement that all contingencies known to the Engineer and City at the date of this Agreement as may be deemed necessary and proper to complete the project have been included in the maximum fee estimate. Engineer agrees that engineering services will be managed and performed in their Fort Worth Office. s - 2 - A2792C/2 SECTION III - SPECIAL SERVICES OF ENGINEER 3.1 Services Requiring Authorization in Advance. If authorized in writing by City, Engineer shall furnish or obtain from others Special Services necessary to complete the assignments. These services are not included as part of Basic Services as outlined in SECTION II - CHARACTER AND EXTENT OF ENGINEER'S SERVICES. These Special Services will be paid for by City as indicated in Section V. SECTION IV - CITY RESPONSIBILITIES Provide all criteria and full information as to City's requirements and designate a person with authority to act on City's behalf and all matters concerning the project. Assist Engineer in obtaining existing studies, reports and other available data and services of others pertinent to the project and in obtaining additional reports and data as required. Upon reasonable notice arrange for access to and make all provisions for Engineer to enter upon public and private property as may be required for Engineer to perform services hereunder. Designate in writing qualified person who will act as City's representative with respect to the project for the purposes of transmitting instructions, receiving information, interpreting and defining City's policies and decisions with respect to Engineer's services. - 3 - A2792C/3 Review all reports, recommendations and other documents and provide written decisions pertaining thereto within a reasonable time. Examine all studies, reports, sketches, drawings, specifica- tions, proposals and other documents presented by Engineer, obtain advice of an attorney, insurance counselor and other consultants as it deems appropriate for such examination and render in writing decisions pertaining thereto within a reasonable time so as not to delay the services of Engineer. Provide such legal, accounting, insurance and other counseling services to City as may be required for the project. Bear all costs incident to compliance with this Section. SECTION V - COMPENSATION TO ENGINEER The total compensation for all of the project to be performed by Engineer as described in SECTION II - CHARACTER AND EXTENT OF ENGINEERS SERVICES hereof shall not exceed $48,000. Engineer shall be compensated on the basis of Attachment "A„ which is made a part of this Agreement. The City and the Engineer shall agree on the Scope and Compensation for the performance of Special Services prior to the commencement of such Special Services. For Special Services performed under Section III, the Engineer will be compensated at the same rates and methods as outlined in this Section V. - 4 - A2792C/4 SECTION VI - METHOD OF PAYMENT The Engineer shall be paid monthly on the basis of statements prepared from the books and records of account of the Engineer, such statements to be verified as to accuracy and compliance with the terms of this Agreement by an officer of the Engineer. Payment according to statements will be subject to certification by the Executive Director:of Utilities or his duly authorized representa- tives that such work has been performed. The above charges are on the basis of prompt payment of bills rendered and continuous progress of the work on the project until completion. If City fails to make any agreed-to payment due to Engineer for services within sixty (60) days after approval of Engineer's statement thereof, the amount due Engineer shall include a charge at the rate of 1.0 percent per month from said sixtieth day, and, in addition, Engineer may, after giving seven (7) days written notice to City, suspend services under this Agreement until Engineer has been paid in full all amounts due for services actually performed. Mail monthly invoices to: The City of Denton Attention: Charles S. Watkins Superintendent of Solid Waste 901-A Texas Street Denton, Texas 76201 Telephone Number 817 566X420 - 5 - A2792C/5 SECTION VII - TIME SCHEDULE OF ENGINEERING SERVICES The Engineer shall initiate work prescribed hereunder immediately upon the execution of this Agreement and upon issuance by City of a Notice to Proceed. The time period for this Agreement is ninety (90) calendar days. SECTION VIII - TERMINATION The City may terminate this Agreement at any time and for any cause by notice in writing to the Engineer. Upon receipt of such notice, the Engineer shall immediately discontinue all services and work and the placing of all orders or the entering into Contracts for supplies, assistance, facilities and materials in connection with the performance of the Agreement and shall proceed to cancel promptly all existing contracts insofar as they are chargeable to this Agreement. If the City terminates this Agreement under the foregoing paragraph, the City shall pay the Engineer for services performed in accordance herewith prior to such termination, less such payments having been previously made. Such payments shall be based upon the work completed up to the date of termination of the Agreement in accordance with the method of compensation prescribed in Sections V and VI hereof. Engineer shall also be compensated for all termination-related expenses such as meeting attendance, document reproduction, transfer of records, etc. - 6 - A2792C/6 Upon termination of this Agreement, the Engineer shall provide the City reproducible copies of all completed or partially completed engineering documents prepared under this Agreement. SECTION IX - INSURANCE Engineer shall maintain statutory worker's compensation insurance coverage, employer's liability, commercial general liability, automobile liability, and professional liability insurance coverage during the period of performance of services hereunder in the following minimum amounts: LIMITS OF LIABILITY A. Workers's Compensation Statutory Employer's Liability $1,000,000 B. Commercial General Liability (including Contractual Liability): Bodily Injury ) Property Damage ) C. Comprehensive, Automobile Liability (owned, hired, and non-owned vehicles): $1,000,000 combined single limits for each occurrence or aggregate Bodily Injury ) $1,000,000 combined single limits for each Property Damage ) occurrence or aggregate D. Professional Liability $1,000,000 annual aggregate At City's request, insurance certificates will be provided by Engineer to evidence such coverages. Certificate shall contain a - 7 - A2792C/7 provision that such insurance cannot be cancelled, without thirty (30) days prior written notice to City. SECTION X - LIMITATION OF LIABILITY Engineer currently maintains and shall endeavor to maintain professional liability (errors and omissions) insurance in an amount not less that $1,000,000 aggregate limits during the term of the Agreement. To the fullest extent permitted by law, City agrees to limit the liability of Engineer, its officers, shareholders and employees, for any acts, errors or omissions or breaches of contract to the proceeds available from applicable insurance, or, where no insurance is applicable, the lesser of the actual damages incurred by City or the total sum of $100,000. Failure of City to give written notice to Engineer of any claim of negligent act, error or omission within one (1) year of performance shall constitute a waiver of such claim by City. SECTION XI - INDEMNIFICATION Subject to the limitation of liability above and the second sentence hereof, each party shall indemnify the other from loss, cost, damage or expense (including attorneys' fees), arising out of the negligence of the indemnifying party to the extent that such =s - loss, cost, damage or expense is caused by the negligence of the indemnitor. In addition, City agrees to indemnify and hold - 8 - A2792C/8 Engineer harmless from any loss, cost, damage, expense (including attorneys' fees) or liability, arising out of or in connection with Engineer's performance for any existing environmental pollution or contamination except to the extent such pollution or contamination is newly caused or created by the active negligence or willful misconduct of Engineer. SECTION XII - NO THIRD PARTY BENEFICIARIES There are no third party beneficiaries of this Agreement between City and Engineer and no third party shall be entitled to rely upon any work performed or reports prepared by Engineer hereunder for the purpose whatsoever. City shall indemnify and hold Engineer harmless against any liability to any third party for any loss, expenses, or damages arising out of or in connection with reliance by any such third party on any work performed or report issued by Engineer hereunder. SECTION XIII - SAMPLING Most test samples or specimens are consumed or substantially altered during the conducting of tests by the Engineer, and, at Engineer's sole discretion, will dispose (subject to the following) of any remaining residue immediately upon completion of tests: 1. Engineer will maintain preservable test samples and specimens or the residue therefrom for 30 days after - 9 - A2792C/9 submission of Engineer's report free of storage charges. After the initial thirty (30) days and upon written request, Engineer will retain test specimens or samples for a mutually acceptable storage charge and stated period of time. City agrees that it will not hold Engineer responsible or liable for any loss of test specimenb or samples retained in storage. 2. In the event that samples contain substances or constitu- ents hazardous or detrimental to health, safety, or the environment as defined by federal, state or local statutes, regulations or ordinances, Engineer will, after completion of testing and at City's expense: (i) return such samples to City, or (ii) using a manifest signed by City as generator, will have such samples transported to a location selected by city as generator, will have such samples transported to a location selected by City for final disposal. City agrees to pay all costs associated with the storage, transport, and disposal of hazardous samples. City recognizes and agrees that Engineer is acting as a bailee and at no time does Engineer assume title to said waste. All laboratory and field equipment contaminated in performing these engineering services which cannot be reasonably decontaminat- ed, in the sole opinion of the City, shall become the property and - 10 - A2792C/10 responsibility of City. All such equipment shall be delivered to City or disposed of in a manner similar to that indicated in the previous paragraph. City agrees to pay fair market value of any such equipment which, in the City's sole opinion, cannot be reasonably decontaminated. SECTION XIV - INDEMNITY PERTAINING TO HAZARDOUS MATERIALS City acknowledges Engineer will perform part of the work at City's facilities that may contain hazardous materials, including petroleum products, or conditions, and the Engineer had no prior role in the generation, treatment, storage, or disposition of such materials. In consideration of the associated risks that may give rise to claims by third parties or employees of City, agrees insofar as permitted by law, to indemnify Engineer from any and all losses, damages, claims, or actions brought by third party or employees of City against Engineer or Engineer's employees, agents, officers, or directors, in any way arising out of the presence of hazardous materials or conditions at City's facilities, except for claims shown by final judgment to arise out of the sole negligence of Engineer. The City shall defend at its own expense any suits or other proceedings brought against the Engineer and its officers, agents, servants, and employees or any of them on account thereof. In connection with hazardous waste, including petroleum products, City agrees to the maximum extent permitted by law to - 11 - A2792C/11 defend, hold harmless and indemnify Engineer from and against any and all claims and liabilities resulting from: (a) City's violation of any federal, state or local statute, regulation or ordinance relating to the disposal of hazardous substances or constituents; (b) City's undertaking of arrangement for the handling, removal,-treatment, storage, transportation or disposal of hazardous substances or constituents found or identi- fied at the site; (c) Changed conditions or hazardous substances or constit- uents introduced at the City by City or third persons before or after the completion of services herein. (d) Allegations that Engineer is a handler, generator, operator, treater or Storer, transporter, or disposer under the Resource Conservation and Recovery Act of 1976, as amended, or any other similar federal, state or local regulation or law. SECTION XV - RIGHT TO AUDIT Engineer agrees that the City shall, until the expiration of three (3) years after final payment under this Agreement, have access to and the right to examine any directly pertinent books, -r documents, papers and records of the Engineer involving transac- tions relating to this Agreement. Engineer agrees that the City - 12 - A2792C/12 shall have access during normal working hours to all necessary Engineer facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The City shall give Engineer reason- able advance notice of intended audits. SECTION XVI - SUCCESSORS AND ASSIGNS The City and the Engineer each bind themselves, their successors and assigns, to the other party to this Agreement and to the successors and assigns of each other party in respect to all covenants of this Agreement. SECTION XVII - ASSIGNMENT Neither party hereto shall assign, sublet or transfer its interest herein without prior written consent of the other party, and any attempted assignment, sublease or transfer of all or any part hereof without such prior written consent shall be void. SECTION XVIII - INDEPENDENT CONTRACTOR Engineer shall perform all work and services hereunder as an independent contractor, and not as an officer, agent, servant or employee of the City. Engineer shall have exclusive control of, t and the exclusive right to control, the details of the work performed hereunder, and all persons performing same, and shall be - 13 - A2792C/13 solely responsible for the acts and omissions of its officers, agents, and employees. Nothing herein shall be construed as creating a partnership or joint venture between the City and the Engineer, its officers, agents and employees, and doctrine of respondent superior has no application as between the City and the Engineer. SECTION XIX - VENUE Venue of any suit or cause of action under this Agreement shall lie in Denton County, Texas. IN TESTI ONY HEREOF the parties have executed the Agreement, this day of , 19%m . CITY OF DENTON, TEXAS City Manager CITY OF DENTON, TEXAS c Bill Angelo Director, C unity Services EMCON Baker-Shiflett v Thomas D. Baker, P.E. Chairman of the Board - 14 - A2792C/14 ATTACHMENT A 1. BASIC SERVICES Field and Laboratory Testing Floor Liner The floor liner covers approximately 115,000 square feet. Based on conversations with City of Denton personnel, the floor liner will be constructed monolithically, with 8-inch lifts. Each lift will be completed prior to starting the next lift. This construction sequence will require six site visits by the field technician and four visits by the Geotechnical Quality Control Professional (GQCP). We have estimated eight hours per visit for the field technician and four to five hours per visit for the GQCP. Laboratory testing is estimated to consist of three permeability tests, ten Atterberg Limit tests, ten minus 200 sieve tests and one standard Proctor. Wall Liners One of the wall liners will be approximately 860 feet in length with an average height of 21.5 feet. During discussions regarding the construction sequence, the City of Denton stated that every effort will be made to construct the wall liner as a monolithic unit, i.e., each 2-foot test interval will be constructed and tested for the entire 860 feet of length prior to starting the next lift. However, due to physical constraints at the site, the wall may have to be constructed as two monolithic units. For estimating purposes it is assumed that the liner will be constructed as two units. If it is constructed as one unit, a cost savings will be realized by the client. We have estimated 24 site visits by the field technician at 9 hours per visit. For the GQCP, we estimate 14 site visits at four to five hours per visit. The laboratory testing is estimated at 22 permeability tests, 44 Atterberg limits, and 44 minus 200 sieve tests. The other wall liner is approximately 200 feet long with an average height of 22 feet. This wall required ten site visits by tbe.field technician and three visits by the GQCP. Laboratory testing includes 11 permeability tests, 11 Atterberg Limits, 11 minus 200 sieve tests and 1 standard Proctor with remolded permeability. This section of wall liner will be reported with one of the two sections of wall liner discussed in the previous paragraphs. The number of field technician and GQCP hours, and the number of laboratory tests were estimated based on information provided by the City of Denton. The FW/176/SLERCON.630-93/dsf.3 Rev. 0, 07/07193 P-93-05-021 1 actual number of hours and tests may need to be greater, depending on actual conditions encountered in the field, soil variability, construction sequence, and other factors beyond the control of EMCON Baker-Shiflett, Inc. (EBS). Report Preparation Three Soil and Liner Evaluation Reports (SLERs) are proposed, one for the floor and two for the walls. The three reports will summarize test results and data required in accordance with the SLQCP for the site. Five copies of each SLER will be submitted as soon as practical after completion of construction to Mr. Charles Watkins, (or his signature and distribution. A minimum of three copies of the SLER are required for the Texas Water Commission (TWC). Schedule The SLER is anticipated to be ready for transmittal to the City of Denton within two to three weeks of completing liner construction. Site survey data, furnished by the City of Denton, is needed within one week following completion of the liner. 2. SPECIAL SERVICES The following services are not included in Basic Services and will be considered as Special Services if required or requested: • Additional meetings or trips to the site other than those described in Basic Services. These may include site visits due to unacceptable liner test results, changed regulations, unanticipated soil conditions, or coordination with regulatory agencies. • Revisions to the report as a result of changes made by the City, TWC, or changed regulations. • The services of specialty subconsultants or other special outside services other than those described in Basic Services. • Additional or increased insurance"verage (if available) other than that described in the AGREEMENT. • Any costs, including equipment replacement, where applicable, associated with decontamination of personnel or equipment as a result of encountering hazardous or toxic materials at this site. FW/176/SLFRCON.630-93/dsf.3 Rev. 0, 07/07/93 P-93-05-021 2 • Sales or use taxed imposed and due on the professional services described in the Scope of Services after the date of this proposal. • Any other services not specifically included in Basic Services. 3. PROJECT TEAM EBS will provide an experienced project team to conduct the quality assurance, testing, and reporting. Field technicians will have a minimum of two years experience and a degree in geology or a NICET Level II Certification (National Institute for Certification in Engineering Technologies). The Geotechnical Quality Control Professional will be a registered professional engineer in the state of Texas. The proposed project team is presented below • Site Field Representatives Ron Rounsaville Mauro Canizalez David Nicholson Glenn Heath Tommy Thompson Roger Moseley • Laboratory Testing and Analysis Mark Lankford, Laboratory Supervisor • Professional Staff David R. Friels, P.E., Project Manager Wm. Ray Campbell, Jr., P.E., Project Engineer Donald D. James, C.P.G., Project Geologist Thomas D. Baker, P.E., Senior Engineer Roy Grant, S.E.T., Quality Review of Field/Laboratory Testing 4. PAYMENTS TO ENGINEER Payment Terms Defined Direct Labor Cost Direct Labor Cost shall mean salary and wages at the time services are performed of all personnel engaged directly on the PROJECT, including, but not limited to, engineers, architects, scientists, surveyors, designers, draftsmen, specification Fw/176/$LFRCON.630-93/dsf..3 Rev. 0, 07107/93 P-93-05-021 3 writers, estimators, steno, clerical, accounting, and other technical and business personnel but does not include indirect payroll-related costs or fringe benefits. Payroll Cost Payroll Cost shall mean the salary and wages at the time services are performed of all personnel engaged directly on the PROJECT, including, but not limited to, engineers, architects, scientists, surveyors, designers, draftsmen, specification writers, estimators, steno, clerical, accounting and other technical and business personnel, plus the cost of customary and statutory benefits including, but not limited to , social security contributions, unemployment, excise and payroll taxes, workers' compensation, health and retirement benefits, sick leave, vacation, holiday pay and other group employee benefits. For the purposes of this Agreement, the Payroll Cost is equal to Direct Labor Costs, multiplied by a factor of 1.35. Per Diem Per Diem shall mean an hourly rate equal to Direct Labor Cost times an Overhead Multiplier of one and seven tenths (1.7) plus Payroll Cost to be paid to ENGINEER as total compensation for each hour an employee of ENGINEER works on the PROJECT. Reimbursable Expenses will be paid in addition to ENGINEER'S Per Diem compensation. Overhead Multiplier Overhead Multiplier shall mean a factor by which the Direct Labor Cost is multiplied to compensate for general and administrative overhead. When the basis of compensation is Per Diem, the Overhead Multiplier includes profit. Reimbursable Expgnsec_ Reimbursable Expenses shall mean the actual expenses incurred directly or indirectly in connection with the PROJECT, including, but not limited to Subconsultant or Subcontractor costs times a multiplier of one and one tenth (1.1), transportation and subsistence incidental thereto, toll telephone calls, express mail and telegrams, courier services, reproduction of reports, drawings, specifications,bidding documents, and similar. PROJECT-related items in addition to those required under SECTION I, and, if authorized in advance by the OWNER, overtime work requiring higher than regular rates. In addition, Reimbursable Expenses will also include expenses incurred for computer time and other highly specialized equipment, including an appropriate charge for previously established programs and expenses of photographic production techniques. PW/176/SLFRCON.630-93/def:3 Rev. 0, 07/07/93 P-93-05-021 4 Laboratory Tests Laboratory tests will be charged at the unit rates provided on the unit cost estimate sheets provided herein. 5. OTHER PROVISIONS CONCERNING PAYMENTS If OWNER fails to make any payment due ENGINEER for services and expenses within 45 days after receipt of ENGINEER's statement, the amounts due ENGINEER will lje increased at the rate of 1 percent per month from date of invoice, and in addition, ENGINEER may, after giving seven days' written notice to OWNER, suspend services under this Agreement until ENGINEER has been paid in full all amounts due for services, expenses and charges. If the PROJECT is suspended or abandoned in whole or in part for more than 30 days, ENGINEER shall be compensated for all services performed prior to receipt of written notice from the OWNER of such suspension or abandonment, together with Reimbursable Expenses then due. If the PROJECT is resumed after being suspended for more than 30 days, ENGINEER's compensation shall be equitably adjusted. Services performed by ENGINEER at request of OWNER during periods when the PROJECT is suspended shall be considered Additional Services. The OWNER's approval, acceptance, use of or payment for all of any part of the ENGINEER's services hereunder or of the PROJECT itself shall in no way alter the ENGINEER's obligation or the OWNER's rights hereunder. OWNER may temporarily delete any disputed items contained in Engineer's invoice, including items disputed due to lack of supporting documentation, and pay the remaining amount of the invoice. OWNER shall promptly notify ENGINEER of the dispute and request clarification and/or remedial action. After any dispute has been settled, ENGINEER shall include the disputed item on a subsequent regularly scheduled invoice or on a special invoice for the disputed item only. In the event of termination of this Agreemeat by either OWNER or ENGINEER, as provided in SECTION VIII, ENGINEER shall be entitle to payment for Services up to the time of termination, plus termination expenses. Termination expenses shall include labor, reimbursable expenses directly attributed to termination, and direct expenses associated with mobilization and demobilization of ENGINEER's personnel and facilities and any other costs incurred by Engineer not otherwise reimbursed. Fw/176/SLERCON.630-93/dsf..3 Rev. 0, 07/07/93 P-93-05-021 5 The amount of any sales tax, excise tax, value added tax (VAT), or gross receipts tax that may be imposed on this Agreement shall be added to the ENGINEER's compensation as reimbursable expenses. ENGINEER will keep, and will cause each subcontract design professional and consultant engaged under this contract to keep, accurate books of record and account, in accordance with sound accounting principles, of all expenditures made and all costs, liabilities and obligations incurred under this contract in relation to the engagement and payment of all subcontract design professionals and consultants, and in relation to any services performed for which additional compensation will be claimed. Those mentioned accounts shall be available, upon reasonable and authorized request, to the comptroller of the OWNER or their representatives for examination and audit. Records of ENGINEER's Payroll Costs and Reimbursable Expenses pertinent to ENGINEER's compensation for Additional Services under this Agreement will be kept in accordance with generally accepted accounting principles. Upon request, copies will be made available to OWNER prior to final payment for ENGINEER's services. Whenever a factor is applied to Direct Labor Costs for determining compensation payable to ENGINEER, that factor will be adjusted periodically and equitably to reflect changes in the various elements that comprise such factor. All such adjustments will be in accordance with generally acceptable accounting principles as applied on a consistent basis by ENGINEER and consistent with ENGINEER's overall compensation practices and procedures. FW/176/SLFRCON.630-93/dsf.3 Rev. 0, 07/07/93 P-93-05-021 6