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R-04-04-22-14D1 - 4/22/2004RESOLUTION NO. R -04-04-22-14D1 WHEREAS, Chapter 791 of the Texas Government Code, V.T.C.A., authorizes local governments and agencies of the state to enter into agreements with one another to perform governmental functions and services, and WHEREAS, the City of Round Rock wishes to enter into an Interlocal Contract for FY 2004 Solid Waste Equipment and Services with the Capital Area Planning Council for regional solid waste grant funds, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Interlocal Contract for FY 2004 Solid Waste Equipment and Services with the Capital Area Planning Council, a copy of same being attached hereto as Exhibit "A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the publicus required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 22nd day of April, 2004. no/eL--d) Es' WELL, Mayor City of Round Rock, Texas CHRISTINE R. MARTINEZ, City Secre(ary @PFDeskt p\::ODMA/WORLDOX/O:/WDOX/RESOLUTI/R40422D1.WPD/sc CAPITAL AREA PLANNING COUNCIL INTERLOCAL CONTRACT FOR FY2004 SOLID WASTE EQUIPMENT AND SERVICES The Capital Area Planning Council (hereafter, CAPCO) and the agreeing party (hereafter, SUBCONTRACTOR) each certifies that it has authority to perform this Contract under Chapter 391 of the Local Government Code, and Chapter 361 of the Health and Safety Code. This Solid Waste Interlocal Contract is entered into by and between the parties named below. Neither the Texas Commission on Environmental Quality (TCEQ) nor the State of Texas is a party to this agreement. I. CONTRACTING PARTIES: Contractor: Capital Area Planning Council Sub Contractor: City of Round Rock Contract #: 04 -12-G01 Amount Awarded: $26,288 II. SERVICES TO BE PERFORMED: See Attachment B — "Work Program of SUBCONTRACTOR" See Attachment C — "Schedule of Deliverables from SUBCONTRACTOR" III. BUDGET AND PAYMENT PROCEDURES: See Attachment D — "Budget and Authorizations" IV. ADDITIONAL CONTRACT PROVISIONS: See Attachment A — "Special Contract Provisions See Attachment E — "General Contract Provisions" CAPCO FY2004 Solid Waste Interlocal Contract 1 CONTRACTING PARTIES CONTRACTOR: Capital Are Planning Council (CAPCO) SIGNATURE: NAME: TITLE: DATE: Betty Voights Executive Director 03/is/Qq SUBCONTRACTOR: City of Round Rock SIGNATURE: NAME: Nvle Maxwell TITLE: Mayor DATE: CAPCO FY2004 Solid Waste Interlocal Contract 2 TABLE OF CONTENTS Attachment A: Special Contract Provisions 4 Article 1: Period of Performance 4 Article 2: Scope of Services 4 Article 3: CAPCO Obligations 4 Article 4: Reporting Requirements 7 Article 5: Monitoring Requirements 8 Article 6: Title To & Management of Real Property & Equipment 8 Article 7: Compliance with Applicable Laws 11 Article 8: Authorized Representatives 11 Attachment B: Work Program of SUBCONTRACTOR 13 Attachment C: Schedule of Deliverables from SUBCONTRACTOR 14 Attachment D: SUBCONTRACTOR Budget and Authorizations 15 Article 1: Expense Category Standards 15 Article 2: Supplemental Funding Standards 18 Article 3: SUBCONTRACTOR Authorized Budget 20 Attachment E: General Contract Provisions Article 1: Legal Authority & Indemnification Article 2: Scope of Services Article 3: Purpose Article 4: Eligible Entities Article 5: Implementation Project Categories Article 6: Liability Insurance Article 7: Audit/Access to Records Article 8: Independent Financial Audit Article 9: Amendments to Contract Article 10: Termination of Contract for Convenience Article 11: Suspension or Termination of Contract for Article 12: Termination for Breach of Contract Article 13: Severability Article 14: Data and Publicity Article 15: Intellectual Property Article 16: Energy Efficiency Standards Article 17: Identification of Funding Sources Article 18: Dispute Resolution Article 19: Oral and Written Contracts Article 20: Nondiscrimination and Equal Opportunity Article 21: Utilization of Small, Minority, & Women's Business Article 22: Force Majeure Article 23: Conflict of Interest Article 24: Miscellaneous 21 21 21 21 22 23 26 26 27 28 28 Unavailability of Funds 29 29 30 30 30 31 31 31 32 32 Enterprises 32 32 33 33 CAPCO FY2004 Solid Waste Interlocal Contract 3 ATTACHMENT A Special Contract Provisions Article 1: Period of Performance The period of performance of this Solid Waste Interlocal Contract (hereafter, the Contract) begins on the date that it is executed on behalf of CAPCO and ends, unless sooner terminated under Attachment E, on December 31, 2004. The SUBCONTRACTOR has from the time the Contract is executed to the ending date shown above to complete the tasks as shown in Attachment B of this Contract. The SUBCONTRACTOR may request in writing a time extension, but CAPCO is not obligated to provide the time extension. Article 2: Scope of Services All parties agree that the City of Round Rock, in consideration of compensation hereinafter described, shall provide as specifically described in the Special and General Provisions of this Solid Waste Interlocal Contract, the services of: Household Hazardous Waste Management. The SUBCONTRACTOR agrees to implement the Project according to the agreed upon budget in an amount not to exceed $26,288 as detailed in Attachment D, Article 3 of this Contract. Failure on the part of the SUBCONTRACTOR to comply with the conditions set forth in this Contract shall be the basis for termination of the Contract and recovery of any unexpended or inappropriately expended funds. Article 3: CAPCO Obligations (a). Consideration In consideration of full and satisfactory performance hereunder, CAPCO will be liable to SUBCONTRACTOR in an amount equal to the allowable costs defined in OMB Circular No. A-87 and incurred by SUBCONTRACTOR in rendering such performance, subject to the following limitations: 1. CAPCO is not liable for expenditures made in violation of the Authorized Budget and funding guidelines in Attachment D, which outline the standards which shall apply to the SUBCONTRACTOR'S use of funds provided under this Contract, including prohibited activities and expense categories as defined by the TCEQ. 2. CAPCO is not liable for any costs incurred by SUBCONTRACTOR in the performance of this Contract which have not been billed to CAPCO within thirty (30) days following termination of this Contract. 3. CAPCO is not liable to SUBCONTRACTOR for costs incurred or performance rendered by SUBCONTRACTOR for costs incurred by SUBCONTRACTOR before commencement of this Contract or after termination of this Contract. CAPCO FY2004 Solid Waste Interlocal Contract 4 4. Except as specifically authorized by CAPCO in writing, CAPCO is liable only for expenditures made in compliance with the cost principles and administrative requirements set forth in Federal OMB Circular No. A-87. CAPCO is not liable for expenditures made in violation of Attachment D, Article 2 of this Contract. (b). Additional Documentation and Financial Monitoring Program 1. Financial Monitoring Program. The SUBCONTRACTOR will adhere to the following financial monitoring requirements in order to receive reimbursement for authorized expenditures and to ensure that the expenditures incurred were reasonable and necessary to the project. i) Payments to the SUBCONTRACTOR will be made only on a reimbursement basis. To receive reimbursement the SUBCONTRACTOR must submit the following: a) Form PT -F1 b) Form PT -F2 c) Supplemental Forms F2-1 through F2-4 (if appropriate) d) Copies of checks e) Copies of Invoices f) List of bid responses for purchases over $5,000 up to $15,000 g) Copy of RFP and list of RFP responses (if applicable) ii) If the SUBCONTRACTOR does not have a Purchasing Policy that complies with state law, the SUBCONTRACTOR must adhere to the general provisions of CAPCO's Purchasing Policy, which are outlined below: a) Purchases over $10,000 must be approved by the organization's governing body (i.e. school board, city council, and commissioner's court) b) Purchases above $25,000 require formal competitive sealed bids c) Purchases between $5,000 and $25,000 require informal bids (at least three written quotes) and must be approved by the governing body d) Purchases between $2,500 and $4,999 require informal bids (at least three written quotes) e) Purchases between $300 and $2,499 require at least three verbal quotes f) Purchase less than $300 do not require quotes g) Split purchases to avoid bidding requirements will not be allowed h) Cumulative purchases of like items through the fiscal year could be considered circumvention of the policy if it was reasonable to anticipate the purchases in advance Note: The use of State Contract items can eliminate the need for many of the bidding requirements. However, purchases over $10,000 still require approval of the organization's governing body. iii) The SUBCONTRACTOR is allowed to account for expenses incurred and request reimbursement of outlays under either a cash or an accrual basis, as defined and authorized under the UGMS. To be eligible for reimbursement under this Contract, a cost must have been incurred and either paid by the CAPCO FY2004 Solid Waste Interlocal Contract 5 SUBCONTRACTOR prior to claiming reimbursement from CAPCO or incurred by the last day of the time period indicated on a request for reimbursement form and liquidated no later than thirty (30) days after the end of that time period. iv) CAPCO will review all materials provided by the SUBCONTRACTOR with a request for reimbursement (Forms PT -F1 and PT -F2), and will not make a reimbursement payment unless all required items listed under Article 3 (b)1(i) of this Attachment have been provided and are deemed to be accurate. v) CAPCO shall reimburse or otherwise make payment to the SUBCONTRACTOR only for expenses incurred during the term of the Contract between CAPCO and the SUBCONTRACTOR, the term of which may not be outside of the term of this Contract. vi) CAPCO will not reimburse or otherwise make payment to the SUBCONTRACTOR for an expenditure that is not authorized under this Contract. If it is determined by either CAPCO or the TCEQ that an expenditure that was reimbursed is not an authorized expense, CAPCO shall request return and reimbursement of those funds from the SUBCONTRACTOR or, where appropriate, the application of those funds to other authorized expenses, and shall not provide additional reimbursements to the SUBCONTRACTOR until the funds are returned or are applied to other authorized expenses. 2. Documentation required. In general, expenditure documentation to be maintained by the SUBCONTRACTOR should be whatever is necessary to show that the work was indeed performed and that the expense was, in fact, incurred. In addition, the documentation should also support the fact that the expenditure was reasonable and necessary to this Contract. Documents that should be maintained, as appropriate for the expense, include but are not limited to the following: i) Salary/Wages — Time sheets that have been signed and approved. ii) Travel — Documentation which, at a minimum, is consistent with State Travel Regulations. The purpose of the travel should be documented and supported with actual receipts for hotel accommodations, public transportation receipts, airline receipts, etc. iii) Equipment — Purchase orders, invoices, and canceled checks. iv) Supplies — Purchase orders (if issued), invoices, and canceled checks. v) Contractual — All of the above plus documentation that the costs were reasonable and necessary. The same standards should be applicable to subcontractors. 3. Additional Documentation. If requested by CAPCO, the SUBCONTRACTOR agrees to provide to CAPCO the additional expense records and documentation materials, as listed in Section (b) 2 of this Article and appropriate for the expense, for the time period requested by CAPCO, except that the SUBCONTRACTOR will not be asked to submit records that have already been provided to CAPCO with a Financial Status Report. CAPCO will provide reasonable time for the CAPCO FY2004 Solid Waste Interlocal Contract 6 SUBCONTRACTOR to comply with a request for additional records. If CAPCO requests to review additional records to be provided by the SUBCONTRACTOR under CAPCO's financial monitoring program, CAPCO will review those records and provide the SUBCONTRACTOR a written summary of the findings of that review. CAPCO will also allow the SUBCONTRACTOR reasonable time to respond to any findings of noncompliance or other problems identified by the records review. (c). SUBCONTRACTOR Close Out Report No later than thirty (30) days following the termination of this Contract, SUBCONTRACTOR must submit to CAPCO a final "Financial Status Report," which indicates that the report is the "Final Report." If all expenditures have been completed before the end of the Contract, SUBCONTRACTOR shall submit the final "Financial Status Report" with the final "Request for Reimbursement:' (d). Independent Contractor SUBCONTRACTOR is not an employee or agent of CAPCO, but provides goods and performs services under this Contract solely as an independent contractor. Article 4: Reporting Requirements (a). The SUBCONTRACTOR shall prepare and submit to CAPCO progress reports as designated in Attachment C of this Contract. These reports concern the performance under this Contract documenting program accomplishments and units of work performed under Attachment B of this Contract. These progress reports, to be submitted by the SUBCONTRACTOR, shall include: 1. Form PT -S1 which documents the progress and completion of tasks 2. Form PT -R1, the Waste Diversion Tracking Form 3. Forms R1 A, R1 B, R11) or R1 E (as applicable to the project or as requested by CAPCO) Payments (reimbursements) required under this Contract will be withheld by CAPCO until such time as any past due progress reports are received. (b). The SUBCONTRACTOR progress reports required under Subsection A of Article 4 contain descriptions of activities and costs for CAPCO to ensure that the provisions of this Contract are being complied with. In particular, any legal research and related legal activities shall be clearly detailed in the quarterly progress reports in order to assure CAPCO that the activities are not prohibited under Attachment D Article 2 of this Contract (relating to Supplemental Funding Standards). The SUBCONTRACTOR shall comply with any reasonable request by CAPCO for additional information on activities conducted in order for CAPCO to adequately monitor the SUBCONTRACTOR's progress in completing the requirements of and adhering to the provisions of this Contract. (c). The SUBCONTRACTOR will certify in writing to CAPCO through a final progress report, the satisfactory completion of all activities and deliverables required under this Contract. The final progress report shall consist of the forms described in Section A of this Article 4. CAPCO FY2004 Solid Waste Interlocal Contract 7 (d). The SUBCONTRACTOR shall maintain the forms listed in Part A of this Section so that a follow-up results report can be prepared. The SUBCONTRACTOR shall provide CAPCO with a follow-up results report in FY 2005 so that CAPCO can report to the TCEQ the results of the projects funded under this Contract. (e). The SUBCONTRACTOR'S failure to comply with the requirements of this Article shall constitute a breach of this Contract. (f). (g). The SUBCONTRACTOR shall maintain documentation on the results of the project activities for the life of the program or activity. The reporting requirements of this Article 4 survive the ending or early termination of this Contract. Article 5: Monitoring Requirements (a). CAPCO may periodically monitor SUBCONTRACTOR for: 1. The degree of compliance with the terms of this Contract, including compliance with applicable rules, regulations, and promulgations referenced herein; and 2. The administrative and operational effectiveness of the project. (b). CAPCO shall conduct periodic analysis of SUBCONTRACTOR'S performance under this Contract for the purpose of assessing the degree to which contractual objectives and performance standards, as identified in this Contract or as subsequently amended, are achieved by SUBCONTRACTOR. Article 6: Title To and Management of Real Property and Equipment (a). Subject to the obligations and conditions set forth in this Agreement, title to real property and equipment (together hereafter referred to in this Article as "property") acquired under this Agreement by the SUBCONTRACTOR will vest upon acquisition or construction in CAPCO or the SUBCONTRACTOR respectively. (b). Subject to the provisions of this Agreement, and as otherwise provided by state statutes, property acquired or replaced under this Agreement shall be used for the duration of its normally expected useful life to support the purposes of this Agreement whether or not the original projects or programs continue to be supported by state funds. (c). The SUBCONTRACTOR shall not grant or allow to a third party a security interest in any original or replacement property purchased or constructed with funds made available to the SUBCONTRACTOR under this Agreement. (d). The use of property acquired under this Agreement, both during the term of this Agreement and for the useful life of the property or until compensation is provided to the FUNDING AGENCY for the applicable percentage share of the fair market value of the property, shall be in compliance with §361.014(b) of the TEXAS HEALTH & SAFETY CAPCO FY2004 Solid Waste Interlocal Contract A CODE ANN., which directs that a project or service funded under this program must promote cooperation between public and private entities and may not be otherwise readily available or create a competitive advantage over a private industry that provides recycling or solid waste services. (e). The SUBCONTRACTOR may develop and use their own property management systems, which must conform with all applicable federal, state, and local laws, rules and regulations. If an adequate system for accounting for property owned by the SUBCONTRACTOR is not in place or is not used properly, the Property Accounting System Manual issued by the State Comptroller of Public Accounts will be used as a guide for establishing such a system. The property management system used by the SUBCONTRACTOR must meet the requirements set forth in this Section. 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, and the cost of the property, percentage of state participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (fl. (g). 2. A physical inventory of all equipment acquired or replaced under this Agreement shall be conducted no Tess frequently than once every two years and the results of such inventories reconciled with the appropriate property records. Property control procedures utilized by the SUBCONTRACTOR shall include adequate safeguards to prevent Toss, damage, or theft of the acquired property. Any loss, damage, or theft shall be investigated. The SUBCONTRACTOR shall develop and carry out a program of property maintenance as necessary to keep both originally acquired and any replaced property in good condition, and to utilize proper sales procedures to ensure the highest possible return, in the event such property is sold. 3. Certain types of equipment are classified as "controlled assets" and are subject to annual revision. In accordance with the UGMS, the SUBCONTRACTOR should contact the Texas Comptroller of Public Accounts' property accounting staff or review the Comptroller's state Property Accounting User Manual available on the Internet, for the most current listing. Firearms shall be maintained on the SUBCONTRACTOR's inventory system irrespective of cost, and the following equipment with costs between $500 and $1,000 shall be maintained on the inventory system: (1) stereo systems, (2) still and video cameras, (3) facsimile machines, (4) VCRs and VCR/TV combinations and (5) cellular and portable telephones. The SUBCONTRACTOR may for the purpose of replacing property acquired under this Agreement, either trade in or sell the property and use the proceeds of such trade-in or sale to offset the cost of acquiring needed replacement property. The SUBCONTRACTOR agrees that if a determination is made that any property acquired with funds provided under this Agreement with a current per-unit fair market value of $1,000 or more is no longer needed for the originally authorized purpose, CAPCO has the right to require disposition of the property by the SUBCONTRACTOR in accordance with the provisions of this Article. CAPCO FY2004 Solid Waste Interlocal Contract 9 (h). When, during the useful life of property acquired with grant funds under this Agreement by the SUBCONTRACTOR and with a current per-unit fair market value of $1,000 or more, the property is no longer needed for the originally authorized purpose, SUBCONTRACTOR agrees to request disposition instructions from the CAPCO or, if CAPCO is no longer administering a Regional Solid Waste Grants Program, the TCEQ. CAPCO shall, in turn, request authorization from the TCEQ to provide disposition instructions to the SUBCONTRACTOR. Disposition instructions shall solicit, at a minimum, information on the source and amount of funds used in acquiring the property, the date acquired, the fair market value and how the value was determined (e.g., by appraisal, bids, etc.), and the proposed use of the proceeds. The assessment of whether to authorize the proposed disposition of the property must include a determination that the disposition plan will comply with the private industry provisions of §361.014(b) of the TEXAS HEALTH & SAFETY CODE ANN. In cases where SUBCONTRACTOR fails to take appropriate disposition actions, CAPCO may direct SUBCONTRACTOR to take excess and disposition actions. The disposition instructions may provide for one of the alternatives as set forth in this Section. 1. Retain title, sell, or otherwise disposed of with no obligation to compensate CAPCO. 2. Retain title after compensating CAPCO. If CAPCO is compensated by the SUBCONTRACTOR for property acquired using funds provided under this Agreement, CAPCO will in turn compensate the TCEQ or, upon authorization by the TCEQ, use those funds for other projects or activities that support this or similar future programs conducted by the TCEQ. The amount due will be computed by applying the percentage of state -funded participation in the cost of the original purchase to the fair market value of the property. 3. Sell the property and compensate CAPCO. If CAPCO is compensated the SUBCONTRACTOR for property acquired using funds provided under this Agreement, CAPCO will in turn compensate the TCEQ or, upon authorization by the TCEQ, use those funds for other projects or activities that support the goals of this or similar future programs conducted by the TCEQ. The amount due will be calculated by applying CAPCO's percentage of participation in the cost of the original purchase to the proceeds of the sale after deduction of any actual and reasonable selling and fixing -up expenses. If the grant is still active, the net proceeds from sale may be offset against the original cost of the property. When SUBCONTRACTOR is directed to sell property, sales procedures shall be followed that provide for competition to the extent practicable and result in the highest possible return. 4. Transfer title to CAPCO or to a third -party designated/approved by the TCEQ. If the SUBCONTRACTOR participated financially in the original purchase of the property, the SUBCONTRACTOR may be authorized payment from the receiving party of an amount calculated by applying the percentage of the participation in the original purchase of the property to the current fair market value of the property. i) Items of property with a current per-unit fair market value of Tess than $1,000 may be retained, sold or otherwise disposed of by the SUBCONTRACTOR with no further obligation to CAPCO. Methods used to determine per-unit fair market value must be documented, kept on file and made available to CAPCO and the TCEQ upon request. CAPCO FY2004 Solid Waste Interlocal Contract 10 Article 7: Compliance with Applicable Laws The SUBCONTRACTOR shall give all notices and comply with all laws, ordinances, rules, regulations and order of any public authority bearing on the performance of this Contract including, but not limited to, the laws referred to in this Contract. If the SUBCONTRACTOR or CAPCO observes that this Contract is at variance, the observing party shall promptly notify the other party in writing, and any necessary changes shall be addressed by appropriate Contract modification. On request, the SUBCONTRACTOR shall furnish CAPCO modification. The main governing standards include, but may not be limited to the following: (a). Section 361.014, TEX. HEALTH & SAFETY CODE ANN; (b). Section 330.569 of the TCEQ Municipal Solid Waste Regulations (30 TAC Chapter 330); and (c). The Uniform Grant and Contract Management Act, Chapter 783 of the TEX. GOV'T CODE ANN, and the Uniform Contract Management Standards, 1 Texas Administrative Code Section 5.141 et. seq. (UGMS). Article 8: Authorized Representatives (a). CAPCO hereby designates the person named in Exhibit A-1, Project Representative, to this Attachment A, as the individual authorized to give direction to the SUBCONTRACTOR for the purposes of this Contract. CAPCO Project Representative shall not be deemed to have authority to bind CAPCO in Contract unless the Executive Director of CAPCO has delegated such authority in writing. (b). Immediately upon execution of this Contract, the SUBCONTRACTOR shall identify, as its Project Representative, the person authorized to receive direction from CAPCO, to manage the work being performed, and to act on behalf on the SUBCONTRACTOR as Project Representative The SUBCONTRACTOR's Project Representative shall be deemed to have authority to bind the subcontractor in Contract unless the SUBCONTRACTOR, in writing, specifically limits or denies such authority to the SUBCONTRACTOR's Project Representative with respect to the administration of the Contract. (c). Either party may change its Project Representative. In addition, the Project Representative of either party may further delegate his or her authority as necessary, including any delegation of authority to a new Project Representative. The party making the change in Project Representative shall provide written notice of the change to the other party. (d). The SUBCONTRACTOR shall ensure that its Project Representative, or his or her delegate, is available at all times for consultation with CAPCO. If the project representative will be absent during the term of this Contract, the SUBCONTRACTOR shall designate an alternate that will be available to consult with CAPCO. CAPCO FY2004 Solid Waste Interlocal Contract 11 Exhibit A-1 The Capital Area Planning Council hereby designates the individual below as the person to give direction to the SUBCONTRACTOR as Project Representative of CAPCO: Name: Heather Parscal Title: Solid Waste Program Coordinator Address: 2512 IH 35 South, Suite 200 Austin, TX 78704 Phone: (512) 916-6170 Fax: (512) 916-6001 E-mail: hparscal(a�capco.state.tx.us The SUBCONTRACTOR hereby designates the individual named below as the person authorized to receive direction from CAPCO, to manage the work being performed, and to act on behalf of the SUBCONTRACTOR as a Project Representative: (Please complete all of the following information) Name: Tracy Herring Title: Environmental Services Supervisor Address: 2008 Enterprise Drive Round Rock, TX 78664 Phone: (512) 218-5559 Fax: (512) 341-3316 E-mail: tracyh(a�round-rock.tx.us The SUBCONTRACTOR designates the following location for record access and review pursuant to Attachment A & Attachment E of this Contract or any other applicable provision: CAPCO FY2004 Solid Waste Interlocal Contract 12 ATTACHMENT B Work Program of SUBCONTRACTOR Task 1: Obtain pricing on equipment and request permission to purchase by CAPCO Completed By: April 2004 Task 2: Purchase oil units and place into operation Completed By: May 2004 Task 3: Submit 90 -day notification to TCEQ regarding permanent HHW facility Completed By: May 2004 Task 4: Submit 45 -day Operational Plan to TCEQ Completed By: June 2004 Task 5: Purchase hazardous waste storage building and place into operation Completed By: July 2004 Task 6: Document hazardous waste amounts for oil and materials collected for storage unit Completed By: ongoing through entire contract period Task 7: Prepare quarterly reports for CAPCO Completed By: April 30, 2004; July 31, 2004; October 31, 2004; and January 15, 2005 CAPCO FY2004 Solid Waste Interlocal Contract 13 ATTACHMENT C Schedule of Deliverables from SUBCONTRACTOR REQUIRED REPORTS* Report Reporting Period Due Date Progress Report #1 Progress Report #2 Progress Report #3 Final Report #4 Follow Up Results Report Execution of Contract — April 15, 2004 April 16 — July 15, 2004 July 16 — October 15, 2004 October 16 — December 31, 2004 April 30, 2004 July 31, 2004 October 31, 2004 January 15, 2005 TBD — FY 2005 NOTE: For the purposes of preparing quarterly reports, it is suggested that the SUBCONTRACTOR maintain the Waste Diversion Tracking Form on a monthly basis. Please see Attachment A Article 4 for forms that are due at the above due dates. The reporting forms will be sent to the SUBCONTRACTOR after this Contract becomes effective. CAPCO FY2004 Solid Waste Interlocal Contract 14 ATTACHMENT D SUBCONTRACTOR Budget and Authorizations Article 1: Expense Category Standards In addition to the other standards and requirements of this Agreement, the definitions and requirements set forth in Sections (a) — (h) of this Article shall apply to the SUBCONTRACTOR's use of funds provided under this Agreement and assignment of expenses to the expense categories of the budget set forth in Attachment D Article 3 of this Agreement. (a). Personnel. In accordance with §391.0117 of the Local Government Code, as amended by the 76th Legislature, the SUBCONTRACTOR shall utilize the Salary Administration Provisions and Schedules, and Position Classification Schedules applicable to state agencies for all salaries of employees of the SUBCONTRACTOR funded under this Agreement. 1. The SUBCONTRACTOR's employee positions covered in this Agreement are set forth in Detailed Budget Sheet 2 of the grant application. Any change in employee position constitutes a minor amendment pursuant to Article 9 of the General Provisions (Attachment E) of this Agreement. (b). Travel. The SUBCONTRACTOR shall comply with state travel regulations as required by §391.0115 of the Local Government Code, for all of the SUBCONTRACTOR's travel expenses to be reimbursed with funds provided under this Agreement as set forth in this Section. 1. The SUBCONTRACTOR shall obtain prior written authorization from CAPCO for reimbursement under this Agreement of any travel outside of the State of Texas. 2. Except as provided for under Subsection 1 of this Section, the SUBCONTRACTOR shall obtain prior written authorization from CAPCO for reimbursement from the travel expense category of the budget set forth in Attachment D Article 3, of any travel expenses for persons not employed by the SUBCONTRACOTR, and for travel by any employee not included in Detailed Budget Sheet 2 of the grant application. (c). Supplies. Expenses included under the Supplies expense category of the budget set forth in Attachment D Article 3, shall be for non -construction related costs for goods and materials having a unit acquisition cost (including freight) of Tess than $1,000. Such expenditures shall generally relate to the routine purchase of office supplies (paper, pencils, and staplers) or other goods which are consumed by the SUBCONTRACTOR in a relatively short period of time, in the regular performance of the general activities funded under this Agreement. 1. Non -routine expenditures of goods and materials, not falling under the definition of Equipment under Section (d). of these Program Conditions, shall be charged to the Other expense category. CAPCO FY2004 Solid Waste Interlocal Contract 15 (d). Equipment. Expenses included under the Equipment expense category of the budget set forth in Attachment D Article 3, shall be for non -construction related, tangible, personal property having a unit acquisition cost of $1,000 or more (including freight and set up costs) with an estimated useful life of over one year. 1. No purchases of equipment to be charged to the equipment expense category of the budget set forth in Attachment D Article 3, shall be allowed under this Agreement unless approved ahead of time, in writing, by CAPCO. Approvals for equipment purchases in conjunction with COG -managed projects shall be included with the overall approvals for those projects. 2. Any equipment that will be used for other projects or activities, in addition to the funded project, may only be funded at an amount reflecting the appropriate percentage of time that the equipment will be directly used for the funded project. The special conditions and requirements set forth in the grant agreement (relating to Title to and Management of Equipment and Constructed Facilities), also apply to equipment purchased with pass-through grant funding. (e). Construction. Expenses included under the Construction expense category of the budget set forth in Attachment D Article 3, shall be for costs related to projects, administered by the SUBCONTRACTOR, concerned with the enhancement or building of permanent facilities. (f). 1. Expenses budgeted under the construction expense category of the budget set forth in Attachment D Article 3, should be for costs related to the enhancement or building of permanent facilities. Appropriate costs to include under the Construction expense category are set forth in this Section. i) The cost of planning the project. ii) The cost of materials and labor connected to the construction project. iii) The cost of equipment attached to the permanent structure. iv) Any subcontracts, including contracts for services, which are performed as a portion of the project administered by the SUBCONTRACTOR. 2. No expenditures under the Construction expense categories of the budget set forth in Attachment D Article 3, shall be allowed under this Agreement unless approved ahead of time, in writing, by CAPCO. Contractual Expenses. Expenses included under the Contractual expense category of the budget set forth in Attachment D Article 3, shall be for costs for professional services or tasks provided by a firm or individual who is not employed by the SUBCONTRACTOR as set forth in the Section. 1. No contractual expenses included under the contractual expenses category of the budget set forth in Attachment D Article 3, shall be allowed under this Agreement unless such contracts' scope of work has been approved ahead of time, in writing, by CAPCO. 2. Any amendment to the SUBCONTRACTOR's subcontract authorized for reimbursement under this Agreement, whether or not such subcontract required CAPCO pre -approval, which will result in or require substantive changes to any of CAPCO FY2004 Solid Waste Interlocal Contract 16 (9). the tasks required to be performed under this Agreement, as set forth in these Program Conditions, must be approved in writing by the CAPCO. 3. All applicable laws and regulations concerning bidding and contracting for services shall be followed. Other Expenses. All expenses under the Other expense categories of the budget set forth in Attachment D Article 3, shall be in connection with the tasks and activities to be performed under this Agreement. Expenses not falling under the main expense categories may be included under the Other expense category if appropriate for the proposed project as set forth in this Section. 1. No expenses under the Other expense category including computer hardware or software purchases not included under the Equipment expense category, shall be eligible for reimbursement under this Agreement unless approved ahead of time, in writing, by CAPCO. 2. Subcategories of Other expenses for which prior authorization, as described in Subsection 1. of this Section, is not required are set forth in this Section. i) Books and reference materials. ii) Dues and membership fees for the SUBCONTRACTOR's affiliation with organizations and associations which directly relate to the performance of activities under this Agreement (dues for individual employee affiliation to particular organizations or professional associations, unless listed in Detailed Budget Sheet 8 of the grant application, must be approved individually, in writing, by CAPCO). iii) Subscriptions, only insomuch as they relate directly to the performance of activities under this Agreement. iv) Postage, telephone, FAX, and utilities expenses. v) Printing and reproduction expenses. vi) Advertising and public notices. vii) Registration fees and other staff training costs (fees and training costs for persons not employed by the SUBCONTRACTOR, unless listed in Detailed Budget Sheet 8 of the grant application, must be approved individually by CAPCO). viii) Repair and maintenance costs. ix) Office furniture, not falling under the definition of equipment under Attachment D Article 1 of the Agreement. x) Space and equipment rentals. xi) Signs. xii) Additional Other expenses listed in Detailed Budget Sheet 8 of the grant application. 3. The SUBCONTRACTOR shall ensure that expenditures charged under the Other expense category are not also included within the expenses reimbursed through the Indirect Costs category. (h). Indirect Cost Rates. Not withstanding this section or any other part of this Agreement, the SUBCONTRACTOR shall comply with all provisions of §391.0115 of the Texas Local Government Code relating to the restrictions on commission costs, and shall advise CAPCO FY2004 Solid Waste Interlocal Contract 17 CAPCO in writing in the event such compliance will necessitate a reduction or other change to the indirect cost rate(s) set forth in the budget portion of this Agreement. The SUBCONTRACTOR shall comply with all requirements and rules to be adopted by the Office of the Governor pursuant to §391.009 of the Texas Local Government Code relating to the operations and oversight of Regional Planning Commissions. Article 2: Supplemental Funding Standards In addition to the standards set forth in applicable laws and regulations, the standards outlined below apply to all uses of the funds provided under this Agreement. Unless authorization is otherwise specifically provided for in or under the terms of this Agreement, the use of funds provided under this Agreement shall be in accordance with the supplemental funding standards set forth in this Article. 1. Payment of Fees. Local and regional political subdivisions subject to the payment of state solid waste disposal fees and whose payments are in arrears are not eligible to receive grant funding. 2. Land Acquisition Costs.Funds provided under this Agreement may not be used to acquire land or an interest in land. 3. Municipal Solid Waste -Related Programs Only. Funds provided under this Agreement may not be used for programs dealing with wastes that are not considered municipal solid waste (MSW), including programs dealing with industrial or hazardous wastes. 4. Programs Solely Related to Collection of Certain Wastes. Funds provided under this Agreement may not be used for programs and activities solely related to the management of automotive wastes, to include: scrap tires, used oil, oil filters, antifreeze, lead -acid batteries, or other similar wastes excluded from disposal in MSW landfills. Funds may also not be used for the processing of scrap tires, such as through the purchase of equipment to shred or split the tires. However, collection of these materials may be included as part of a comprehensive household hazardous waste collection and management program, so long as that is not the sole intent of the program. 5. Activities Related to the Disposal of Municipal Solid Waste. Except as may be specifically authorized under an eligible project category, funds provided under this Agreement may not be used for activities related to the disposal of municipal solid waste. This restriction includes: solid waste collection and transportation to a disposal facility; waste combustion (incineration or waste -to -energy); processing for reducing the volume of solid waste which is to be disposed of; any landfill -related facilities or activities, including the closure and post -closure care of a landfill; or other activities and facilities associated with the ultimate disposal of municipal solid waste. This provision does not apply to activities specifically included under an authorized project category, to include citizens' collection stations, and small registered transfer stations. 6. Projects Requiring a TCEQ Permit. Funds may not be used for expenses related to projects or facilities that require a permit from the TCEQ and/or that are located within the boundaries of a permitted facility, including landfills, wastewater treatment plants, and other facilities. This provision, however, may be waived by the TCEQ, at its CAPCO FY2004 Solid Waste Interlocal Contract 18 discretion, for otherwise eligible activities to be located at a closed permitted facility and/or for recycling activities that will take place within the boundaries of an open facility. Recycling activities that may qualify for such a waiver may include recyclables collection, composting, and land application of biosolids for beneficial use. The applicant should request a preliminary determination from the TCEQ as to the eligibility of the project prior to consideration for funding. 7. Projects Requiring TCEQ Registration. Projects or facilities that require registration from the TCEQ, and which are otherwise eligible for funding, may be funded. However, the registration for the facility must be finally received before that project can be selected for funding. 8. Projects that Create a Competitive Advantage Over Private Industry. In accordance with §361.014(b) of the Texas Health and Safety Code, a project or service funded under this Agreement must promote cooperation between public and private entities and may not be otherwise readily available or create a competitive advantage over a private industry that provides recycling or solid waste services. Under this definition, the term private industry includes non-profit entities. 9. Supplanting Existing Funds. Funds provided under this Agreement may not be used to supplant existing funds. In particular, staff positions where the functions assigned to that position will remain the same and that were active at the time of the grant application, and were funded from a source other than a previous solid waste grant, are not eligible for grant funding. This provision does not apply to the salaries for staff of the SUBCONTRACTOR in its conduct of activities under this Agreement. 10. Food/Entertainment Expenses. Funds provided under this Agreement may not be used for food or entertainment expenses, including refreshments at meetings and other functions. This provision does not apply to authorized employee per diem expenses for food costs incurred while on travel status. 11. Use of Alcoholic Beverages. Funds provided under this agreement may not be used for payment of salaries to any employee who uses alcoholic beverages on active duty. None of these funds may be used for the purchase of alcoholic beverages, including travel expenses reimbursed with these funds. 12. Funds to Law Enforcement Agencies. Funds provided under this Agreement may not be provided to any law enforcement agency regulated by Chapter 415 of the Texas Government Code, unless the law enforcement agency is in compliance with all rules developed by the Commission on Law Enforcement Officer Standards and Education pursuant to Chapter 415 of the Texas Government Code, or the Commission on Law Enforcement Officer Standards and Education certifies that the requesting agency is in the process of achieving compliance with such rules. CAPCO FY2004 Solid Waste Interlocal Contract 19 Article 3: SUBCONTRACTOR'S AUTHORIZED BUDGET City of Round Rock - HHW Management GRANT BUDGET SUMMARY 1. Personnel (Salary) 2. Fringe Benefits 3. Travel 4. Supplies (unit cost of less than $1,000) 5. Equipment (unit cost of $1000 or more) 6. Construction 7. Contractual (other than for construction) 8. Other $0.00 $0.00 $0.00 $0.00 $26,288.00 9. Indirect charges TOTAL 10. Fringe Benefit Rate: 0% 11. Indirect Cost Rate: 0% $0.00 $0.00 $0.00 $0.00 $26,288.00 Used oil tanks Hoz waste storage building TBD TBD $2,096.00 $20,000.00 $0.00 3 1 0 $6,288.00 $20,000.00 $0.00 ATTACHMENT E General Provisions Article 1: Legal Authority and Indemnification The SUBCONTRACTOR warrants and assures CAPCO that it possesses adequate legal authority to enter into this Contract. The SUBCONTRACTOR'S governing body where applicable has authorized the signatory official(s) to enter into this Contract and bind the SUBCONTRACTOR to the terms of this Contract and any subsequent amendments hereto. The SUBCONTRACTOR agrees to adhere to the provisions of Section 361.014 of the Texas Health and Safety Code, Title 30 Texas Administrative Code section 330.569, to the provisions of section 330.59 of the TNRCC Municipal Solid Waste Regulations, this agreement and the Uniform Grant Management Standards ("UGMS"). Indemnification (a) To the extent allowed by Texas law, SUBCONTRACTOR agrees at its own expense to defend CAPCO and TCEQ, their governing body members, officers, employees, and agents, against any claim, suit, or administrative proceeding, and to indemnify them against any liability (including all expenses and reasonable counsel fees incurred), arising out of any act or omission of SUBCONTRACTOR's governing body member, officer, employee, or agent under this Contract. (b) If SUBCONTRACTOR is served with process in a suit or proceeding described in Subsection (a), SUBCONTRACTOR agrees to furnish CAPCO promptly with a copy of the process. (c) SUBCONTRACTOR agrees that its indemnification obligations under Subsection (a) apply to causes of action accruing during the term of this Contract, and that for this purpose the obligations will survive the ending or early termination of this Contract. Article 2: Scope of Services The services to be performed by the SUBCONTRACTOR are herewith outlined in the General Contract (Attachment E) and the Special Contract Provisions (Attachment A), which are hereby incorporated into and made a part of this Contract as if set out word-for-word herein. Article 3: Purpose (a). The purpose of this Contract is to accomplish the goals of the Solid Waste Disposal Act of 1989, as amended, as they relate to distributing solid waste fee revenue funds to support local and regional solid waste projects consistent with the regional solid waste management plans approved by the TCEQ and to update and maintain those plans. CAPCO FY2004 Solid Waste Interlocal Contract 21 (b). Under the overall goals of the funding program the purposes of this Contract are: 1. To enable CAPCO to carry out or conduct various municipal solid waste management -related services and support activities within CAPCO 's regional jurisdiction; and 2. To enable CAPCO to report to the Legislature and promote the continuation of pass- through grant funding; and 3. To administer an efficient and effective, region -wide, pass-through (subgrantee) assistance grants program and/or, where authorized by CAPCO in accordance with Article 5 of this Attachment, to conduct various CAPCO - managed projects. (c). The specific purposes of this grant Contract, to implement paragraph (b) above are: To provide equipment to the citizens of Round Rock to promote household hazardous waste management. Both the storage facility and used oil collection tanks will help implement CAPCO's Goal #1: Develop and manage a HHW collection and diversion program. Article 4: Eligible Entities (a). Only those local and regional political subdivisions located within the State of Texas as listed below are eligible to receive funding from CAPCO as a pass-through grant: 1. Cities; 2. Counties; 3. Public schools and school districts (does not include Universities or post secondary educational institutions); and 4. Other general and special law districts created in accordance with state law, and with the authority and responsibility for water quality protection or municipal solid waste management, to include river authorities. (b). Local and regional political subdivisions that are subject to the payment of state solid waste disposal fees and whose fee payments are in arrears, as determined by CAPCO, are not eligible to receive pass-through grant funding from CAPCO. CAPCO shall allow a potential pass-through grant applicant that is listed as being in arrears in its fee payments the opportunity to provide documentation of payment of the fees owed the state. If the potential applicant provides CAPCO with documentation of payment of the fees, such as a canceled check or receipt from the state, CAPCO may consider that applicant to be eligible to receive pass-through grant funding under this Contract. CAPCO FY2004 Solid Waste Interlocal Contract 99 Article 5: Implementation Project Categories The standards and requirements set forth in this Article shall apply to all implementation projects funded under this Agreement. CAPCO shall be responsible for ensuring that the implementation projects funded under this Agreement comply with the standards set forth in this Article. (a). Eligible Implementation Funding Recipients. Only those local and regional political subdivisions located within the State of Texas as set forth in this Section are eligible to receive funding from CAPCO as a pass-through grant. 1. Cities. 2. Counties. 3. Public schools and school districts (does not include Universities or post secondary educational institutions). 4. Other general and special law districts created in accordance with state law, and with the authority and responsibility for water quality protection or municipal solid waste management, to include river authorities. 5. Councils of Governments. (b). Implementation Project Categories. CAPCO shall ensure that all implementation projects funded under this Agreement fit within the categories set forth in this Section. The category -specific funding limitations outlined for each category shall apply to all uses of funds under implementation projects conducted for that category. 1. Local Enforcement. This category consists of projects which contribute to the prevention of illegal dumping of municipal solid waste, including liquid wastes. Under this category, grant recipients may investigate illegal dumping problems; enforce laws and regulations pertaining to the illegal dumping of municipal solid waste, including liquid waste; establish a program to monitor the collection and transport of municipal liquid wastes, through administration of a manifesting system; and educate the public on illegal dumping laws and regulations. Funding limitations specific to this category are set forth in this Section. i) Funds provided under this Agreement may not be used for enforcement activities related to the illegal disposal of industrial or hazardous waste. Instances where industrial or hazardous waste may be discovered at an investigation site do not preclude the general investigation of that site, so long as the funded program is specifically aimed at the illegal disposal of municipal solid waste. ii) Funds provided under this Agreement may not be used for either the cleanup of illegal disposal sites nor the transportation and/or disposal of wastes collected at those sites. Note that while this restriction applies to ongoing enforcement programs dealing with illegal dumping, general community cleanup events that may include the cleanup and transportation of general litter and materials may be authorized under a separate category. 2. Source Reduction and Recycling. This category includes projects which provide a direct and measurable effect on reducing the amount of municipal solid waste going into landfills, by diverting various materials from the municipal solid waste stream for reuse or recycling, or by reducing waste generation at the source. Activities funded CAPCO FY2004 Solid Waste Interlocal Contract 23 under this category may include: diversion from the waste stream and/or collection, processing for transport, and transportation of materials for reuse and/or recycling; implementation of efficiency improvements in order to increase source reduction and recycling, to include full -cost accounting systems and cost -based rate structures, establishment of a solid waste services enterprise fund, and mechanisms to track and assess the level of recycling activity in the community on a regular basis; and educational and promotional activities to increase source reduction and recycling. Funding limitations specific to this category are set forth in this Section. i) Programs and projects funded under this category shall have as a goal and be designed to provide a measurable effect on reducing the amount of municipal solid waste being disposed of in landfills. ii) Any program or project aimed at demonstrating the use of products made from recycled and/or reused materials shall have as its primary function the education and training of residents, governmental officials, and others, in order to encourage support for recycling efforts. iii) Programs aimed at efficiency improvements in a local government's solid waste management system to increase the source reduction of solid waste must be coordinated with the TCEQ. Any program to develop a full -cost accounting system shall utilize the full -cost accounting guidance prepared by the TCEQ. iv) Projects funded under this Agreement may not include programs dedicated to the collection and/or recycling of automotive wastes, to include scrap tires, used oil, oil filters, antifreeze, or lead -acid batteries. This restriction includes the purchase of equipment to shred or split scrap tires. However, this restriction does not apply to the ancillary collection of these materials as part of a comprehensive Household Hazardous Waste Collection facility or program. 3. Citizens' Collection Stations, Community Collection Events, and "Small" Registered Transfer Stations. This category includes projects to construct municipal solid waste collection facilities in areas of the state which are under served by collection services or do not have access to proper disposal facilities. Projects funded under this category may include citizens' collection stations, as these facilities are defined under the TCEQ's Municipal Solid Waste regulations (30 TAC Chapter 330, §330.2). Municipal Solid Waste Transfer Stations that qualify for registration under §330.4(d)(1) - (3) or §330.4(r) of the regulations may also be funded. A project funded under this category shall include consideration of an integrated approach to solid waste management, to include providing recycling services at the site, if appropriate to the management system in place. Funding limitations specific to this category are set forth in this Section. i) Transfer stations that require a permit from the TCEQ may not be funded. ii) Municipal solid waste transfer stations that qualify for registration under §330.4(d)(1)- (3) of the Municipal Solid Waste regulations may be funded. iii) Transfer stations that qualify for a registration solely due to their location within a permitted municipal solid waste facility, under §330.4(d)(4), may not be funded. CAPCO FY2004 Solid Waste Interlocal Contract 24 iv) Municipal solid waste transfer stations that qualify for a registration only under the provisions of §330.4(q) of the Municipal Solid Waste regulations allowing for registration of facilities that recover 10% or more of the waste stream for reuse or recycling, but not also under the provisions of §330.4(d)of the Municipal Solid Waste regulations, may not be funded. However, those components of a transfer facility dedicated to the reuse or recycling activities may qualify for funding under the source reduction and recycling grant category. v) Municipal Solid Waste transfer stations that are used only in the transfer of grease trap waste, grit trap waste, septage, or other similar liquid waste, and which qualify for registration under §330.4(r) of the Municipal Solid Waste regulations may be funded under this category. Specifically, §330.4(r) of the regulations allows for registration of a liquid waste transfer facility that will receive 32,000 gallons a day or Tess. vi) Only the costs necessary to construct the facility and/or purchase and install necessary equipment may be funded. Costs associated with operating a facility once it is completed may not be funded. vii) Transfer stations that require a registration must have already received that registration from the TCEQ before a grant may be awarded. 4. Household Hazardous Waste Management. This category includes projects which provide a means for the collection, recycling or reuse, and/or proper disposal of household hazardous waste, including household chemicals and other materials. Projects may include collection events, consolidation and transportation costs associated with collection activities, permanent collection facilities, and education and public awareness programs. Funding limitations specific to this category are set forth in this Section. i) Projects under this category must be coordinated with the TCEQ to ensure that all applicable regulations and guidelines are followed. ii) Funds provided under this Agreement may not be used for programs and activities related to the collection and management of commercial or industrial hazardous wastes. iii) Funds provided under this Agreement may not be used for programs and activities solely related to the management of scrap tires, used oil, oil filters, antifreeze, lead -acid batteries, or other special wastes excluded from disposal in municipal solid waste landfills. However, collection of these materials may be included as part of a comprehensive Household Hazardous Waste collection and management program, so long as that is not the sole intent of the program. 5. Educational and Training Projects. Educational components are encouraged under the other categories in order to better ensure public participation in projects; those educational components should be funded as part of those projects and not separately under this category. This category may be used for "stand-alone" educational projects dealing with a variety of solid waste management topics. This category may include funding for information -exchange activities, subject to the other CAPCO FY2004 Solid Waste interlocal Contract 25 limitations on travel expenses. Funding limitations specific to this category are set forth in this Section. i) Programs and projects funded under this category shall be primarily related to issues involved in the management of municipal solid waste. Education or training events that cover a broader range of environmental issues may be funded on a partial basis appropriate to the extent to which municipal solid waste issues are covered. Article 6: Liability Insurance (a). Contractor agrees to maintain its own commercial general liability insurance, or the equivalent in amount and coverage of self-insurance, during the term of this Contract and to name CAPCO an additional insured on the policy Contractor agrees to provide the minimum primary insurance coverage of $500,000 general aggregate and $250,000 each occurrence plus $500,000 excess coverage. (b). Contractor's liability insurance must contain provisions, to the extent legally permitted, that the insurer will notify CAPCO in writing at least 10 calendar days in advance of (1) cancellation of non -renewal of the policy; (2) any reduction in the policy amounts; and (3) deletion of CAPCO as an additional insured. (c). SUBCONTRACTOR agrees to furnish CAPCO with a certificate of the Contractor's commercial liability insurance or copy of its policy, or to certify in writing that it has in force the equivalent amount and coverage of self-insurance, within 30 calendar days after the date this Contract is signed on behalf of CAPCO. (d). SUBCONTRACTOR shall maintain and supervise all safety precautions and programs in connection with its performance of the work program. Article 7: Audit/Access to Records (a). The SUBCONTRACTOR shall maintain and make available for review, inspection and/or audit books, records, documents, and other evidence reasonably pertinent to performance on all work under this Contract, including negotiated changes or amendments thereto, in accordance with accepted professional practice, appropriate accounting procedures and practices at the SUBCONTRACTOR'S Texas office. The SUBCONTRACTOR shall also maintain and make available at its Texas Office the financial information and data used by the SUBCONTRACTOR or its designee (including independent financial auditors) in the preparation or support of any cost submission or cost (direct and indirect), price or profit analysis for this Contract or any negotiated sub - agreement or change order and a copy of the cost summary submitted to CAPCO. CAPCO, TCEQ, Texas State Auditor's Office or any of CAPCO's duly authorized representatives, shall have access to such books, records, documents, and other evidence for the purpose of review, inspection and/or audit. During the conduct of any such review, audit or inspection, SUBCONTRACTOR'S books, records, and other CAPCO FY2004 Solid Waste Interlocal Contract 26 pertinent documents may, upon prior conference with the SUBCONTRACTOR, be copied by CAPCO or any of its duly authorized representatives. All such information shall be handled by the parties in accordance with good business ethics. The SUBCONTRACTOR shall provide proper facilities within the State of Texas for such access and inspection. (b). Audits conducted pursuant to this provision shall be in accordance with State law, regulations and policy, and generally accepted auditing standards and established procedures and guidelines of the reviewing or audit agency. (c). The SUBCONTRACTOR agrees to the disclosure of all information and reports resulting from access to records pursuant to Section (a) above to CAPCO. Where the audit concerns the SUBCONTRACTOR, the auditing agency will afford the SUBCONTRACTOR an opportunity for an audit exit conference and an opportunity to comment on the pertinent portions of the draft audit report. (d). Records under Sections (a) above shall be maintained and made available during the entire period of performance of this Contract and until three (3) years from date of final CAPCO payment for the project. In addition, those records which relate to any dispute, litigation, or the settlement of claims arising out of such performance, or costs or items to which an audit exception has been taken shall be maintained and made available until completion of such action and resolution of all issues which arise from it, or until the end of the regular three-year period, whichever is later. (e). Access to records is not limited to the required retention periods. The authorized representatives designated in Section (a) of this Article shall have access to records at any reasonable time for as long as the records are maintained. (f). (g). This audit/access to records Article applies to financial records pertaining to all subagreements and all subagreement change orders and amendments. In addition, this right of access applies to all records pertaining to all subagreements, subagreement change orders and subagreement amendments: to the extent the records reasonably pertain to subagreement performance; if there is any indication that fraud, gross abuse or corrupt practices may be involved; or if the subagreement is terminated for default or for convenience. CAPCO reserves the right to require the reimbursement of any over -payments determined as a result of any audit or inspection of records kept by the SUBCONTRACTOR on work performed under this Contract. (h). The SUBCONTRACTOR agrees to include Sections (a) through (g) of this Article in all subagreements and all change orders directly related to project performance. Article 8: Independent Financial Audit The SUBCONTRACTOR shall adhere to the Single Audit requirements of the UGMS. The SUBCONTRACTOR shall deliver to CAPCO any applicable audit report within thirty (30) days of completion of the audit report. The SUBCONTRACTOR is responsible for including the Single Audit requirements in all subagreements and shall be responsible for insuring adherence to those requirements by all subgrantees and subcontractors. CAPCO FY2004 Solid Waste Interlocal Contract 27 CAPCO reserves the right to conduct or cause to be conducted an independent audit of all funds received under this Contract which may be performed by the local government audit staff, a certified public accountant firm, or other auditors as designated by CAPCO, at CAPCO's expense. Such audit will be conducted in accordance with applicable professional standards and practices. SUBCONTRACTOR understands and agrees that the SUBCONTRACTOR shall be liable to CAPCO for any costs disallowed as a result of audit. Article 9: Amendments to Contract Any alterations, additions, or deletions to the terms of this Contract which are required by changes in Federal Law or Regulations are automatically incorporated into this Contract without written amendment hereto, and shall become effective on the date designated by such law or regulation, provided if the SUBCONTRACTOR may not legally comply with such change, SUBCONTRACTOR may terminate its participation herein as authorized by Article 10. CAPCO may, from time to time, require changes in the Scope of the Services of the SUBCONTRACTOR to be performed hereunder. Such changes that are mutually agreed upon by and between CAPCO and the SUBCONTRACTOR in writing shall be incorporated into this Contract. Any changes in personnel whose salaries are funded under this Contract or any other Contract amendments, including increasing or decreasing the amount of total funding, altering budget category allocations, extending or shortening the term of the agreement, or making significant changes in the scope of work, schedule or deliverables, must be approved in advance by CAPCO. A detailed description of the proposed change(s) shall be submitted in writing by the SUBCONTRACTOR to CAPCO for approval. Authorization to amend the Contract will be documented in writing and copies of the authorization retained in the files of both CAPCO and SUBCONTRACTOR. Article 10: Termination of Contract for Convenience a) CAPCO may terminate this Contract in whole or part for its convenience. CAPCO terminates this Contract for convenience by giving SUBCONTRACTOR at least 30 calendar days notice of the termination, specifying the termination date, and describing the part or arts terminated. b) Upon receipt of the termination notice, SUBCONTRACTOR agrees to stop work on or before the termination date, cancel all subcontracts and orders entered into under this Contract, and settle all claims resulting from cancellation of the subcontracts and orders. If CAPCO terminates only part of the Contract, Contractor agrees to complete the un- terminated part if CAPCO so requests. c) At CAPCO's request, following termination of the Contract for convenience, SUBCONTRACTOR agrees to transfer title and deliver to CAPCO, at CAPCO's expense, all work produced in performing this Contract. SUBCONTRACTOR agrees to preserve and protect the work until it is delivered to CAPCO. CAPCO FY2004 Solid Waste Interlocal Contract 28 d) SUBCONTRACTOR agrees to submit to CAPCO a written termination claim itemizing and documenting the amounts due because of termination of the Contract. If Contractor does not submit the termination claim within 90 calendar days from the effective date of termination, SUBCONTRACTOR's termination claim is barred. e) If SUBCONTRACTOR's termination claim is timely submitted, complete, and correct, CAPCO agrees to pay SUBCONTRACTOR the following amounts in full settlement of SUBCONTRACTOR's termination claim: (1) the reasonable cost of all work performed through the date of termination; and (2) the reasonable cost of settling and paying claims resulting from cancellation of subcontracts and orders. However, CAPCO's total payment under this paragraph may not exceed the total Contract price, Tess amounts already paid SUBCONTRACTOR under this Contract, any lawful offsets, and the Contract price for any work not terminated. Article 11: Suspension or Termination of Contract for Unavailability of Funds a) SUBCONTRACTOR acknowledges that CAPCO is a governmental entity without taxing power and that its only source for paying SUBCONTRACTOR under this Contract is the Municipal Solid Waste Disposal and Transportation Revenue Fee administered by TCEQ under Contract with CAPCO. If TCEQ suspends or terminates its Contract with CAPCO, SUBCONTRACTOR agrees that CAPCO may suspend its payment obligations under or terminate this Contract in whole or part if CAPCO learns that funds to pay for all or part of the goods or services will not be available at the time of delivery or performance. If CAPCO suspends or terminates only part of this Contract for unavailability of funds, SUBCONTRACTOR agrees to perform the unsuspended or unterminated part if CAPCO so requests. b) CAPCO suspends or terminates this Contract for unavailability of funds by giving SUBCONTRACTOR notice of the suspension or termination, as soon as it learns of the funding unavailability, specifying the suspension or termination date, and describing the part or parts suspended or terminated. CAPCO agrees to promptly return to SUBCONTRACTOR at CAPCO's expense any goods Contractor shipped to CAPCO before receiving notice of suspension or termination. c) If this Contract is terminated for unavailability of funds under this Article 11, SUBCONTRACTOR is entitled to compensation for goods it furnished and services it performed before it received notice of termination. However, CAPCO is not liable to SUBCONTRACTOR for costs it paid or incurred under this Contract after or in anticipation of its receipt of notice of termination. Article 12: Termination for Breach of Contract (a). If CAPCO or SUBCONTRACTOR breaches a material provision of this Contract, the other may notify the breaching party describing the breach and demanding corrective action. The breaching party has five business days from its receipt of the notice to correct the breach, or to begin and continue with reasonable diligence and in good faith to correct the breach. If the breach cannot be corrected within a reasonable time, despite the breaching party's reasonable diligence and good faith effort to do so, either party may terminate the Contract for breach by notifying the other party of the CAPCO FY2004 Solid Waste Interlocal Contract 29 termination date, which may be no sooner than 10 calendar days from the notice date, or either party may invoke the dispute resolution process of Article 18. (b). If this Contract is terminated for breach under Subsection (a), Contractor is entitled to compensation for services it performed and goods it provided before it received notice of termination. However, CAPCO is not liable to Contractor for costs it paid or incurred under this Contract after or in anticipation of its receipt of notice of termination. (c). Termination for breach under Subsection (a) does not waive CAPCO's claim for damages resulting from the breach, and CAPCO among other remedies may withhold from compensation owed Contractor an amount necessary to satisfy CAPCO's claim. Article 13: Severability All parties agree that should any provision of this Contract be determined to be invalid or unenforceable, such determination shall not affect any other term of this Contract, which shall continue in full force and effect. Article 14: Data and Publicity All data and other information developed under this Contract shall be furnished to CAPCO and shall be public data and information except to the extent that it is exempted from public access by the Texas Open Records/Public Information Act, TEX. GOV'T CODE Chapter 552. Upon termination of this Contract, all data and information shall become the joint property of CAPCO and the SUBCONTRACTOR. Article 15: Intellectual Property (a). For the purpose of this Article, "intellectual property" refers to 1) any discovery or invention for which patent rights may be acquired, and 2) any photographs, graphic designs, plans, drawings, specifications, computer programs, technical reports, operating manuals, or other copyrightable materials, and 3) any other materials in which intellectual property rights may be obtained. (b). If the SUBCONTRACTOR conceives of, actually puts into practice, discovers, invents or produces any intellectual property during the course of its work under this Contract, it shall report that fact to CAPCO. (c). The SUBCONTRACTOR may obtain governmental protection for rights in the intellectual property. However, CAPCO and TCEQ hereby reserve a nonexclusive, royalty -free and irrevocable license to use, publish, or reproduce the intellectual property for sale or otherwise, and to authorize others to do so. CAPCO and TCEQ also reserve a royalty - free nonexclusive, and irrevocable license to use, publish, or reproduce for sale or otherwise, and to authorize others to use, publish, or reproduce, for sale or otherwise (to the extent consistent with the rights of third parties) any intellectual property for which the SUBCONTRACTOR obtains rights with funds received under this Contract. CAPCO FY2004 Solid Waste Interlocal Contract 30 (d). In performing work under this Contract, the SUBCONTRACTOR shall comply with all laws, rules, and regulations relating to intellectual property, and shall not infringe on any third party's intellectual property rights. It shall hold CAPCO and the TCEQ harmless for, and to the extent permitted by the laws and Constitution of the State of Texas, defend and indemnify CAPCO against, any claims for infringement related to its work under this Contract. Article 16: Energy Efficiency Standards The SUBCONTRACTOR is encouraged to follow standards and policies on energy efficiency which are contained in the Texas State Energy Conservation Plan issued in compliance with the Energy Policy and Conservation Act (P.L. 94-163). Article 17: Identification of Funding Sources The SUBCONTRACTOR shall acknowledge the financial support of the TCEQ and CAPCO whenever work funded, in whole or part, by this Contract is publicized or reported in news media or publications. All reports and other documents completed as a part of this Contract, other than documents prepared exclusively for internal use within CAPCO, shall carry the following notation on the front cover or title page: FINANCED WITH FUNDS FROM THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY (TCEQ) THROUGH THE CAPITAL AREA PLANNING COUNCIL (CAPCO) Article 18: Dispute Resolution (a). The parties desire to resolve disputes arising under this Contract without litigation. Accordingly, if a dispute arises, the parties agree to attempt in good faith to resolve the dispute between themselves. To this end, the parties agree not to sue one another, except to enforce compliance with this Article 18, until they have exhausted the procedures set out in these subsections. (b). At the written request of either party, each party shall appoint one non -lawyer representative to negotiate informally and in good faith to resolve any dispute arising under this Contract. The representatives appointed shall determine the location, format, frequency, and duration of the negotiations. (c). If the representatives cannot resolve the dispute within 30 calendar days after the first negotiation meeting, the parties agree to refer the dispute to the Dispute Resolution Center of Austin for mediation in accordance with the Center's mediation procedures by a single mediator assigned by the Center. Each party shall pay half the cost of the Center's mediation services. (d). The parties agree to continue performing their duties under this Contract, which are unaffected by the dispute, during the negotiation and mediation process. CAPCO FY2004 Solid Waste Interlocal Contract 31 Article 19: Oral and Written Contracts All oral or written agreements between the parties hereto relating to the subject matter of this Contract which were developed and executed prior to the execution of this Contract have been reduced to writing and are contained herein. Article 20: Nondiscrimination and Equal Opportunity (a). Subsection (b) summarizes the nondiscrimination requirements applicable to SUBCONTRACTOR's performance under this Contract that are set out in detail in title 41, chapter 60, and title 28, parts 35 and 36, Code of Federal Regulations. The SUBCONTRACTOR agrees to comply with the detailed requirements. (b). SUBCONTRACTOR shall not exclude anyone from participating under this Contract, deny anyone benefits under this Contract, or otherwise unlawfully discriminate against anyone in carrying out this Contract because of race, color, religion, sex, age, disability, handicap, or national origin. Article 21: Utilization of Small, Minority, and Women's Business Enterprises (a). A Historically Underutilized Business (HUB) is a Corporation, Sole Proprietorship, Partnership, or Joint Venture in which as least 51 percent is owned, operated, controlled and actively managed by a person or persons who are historically underutilized (socially disadvantaged) because of their identification with members of certain groups, including Black Americans, Hispanic Americans, Asian Pacific Americans, Native Americans (American Indians) and Women who suffered the effects of discriminatory practices or similar insidious circumstances over which they have no control. (b). The SUBCONTRACTOR agrees that qualified Historically Underutilized Businesses (HUBs) shall have the maximum practicable opportunity to participate in the performance of this Contract. Article 22: Force Majeure (a). Subject to the requirements of Subsections (b) and (c) and the limitation of Subsection (d), a party's obligations under this Contract are suspended during any period the party is unable to perform its obligations because of work stoppage or strike resulting from a labor dispute; fire, flood, wind, earthquake, or other natural disaster; epidemic, riot, sabotage, rebellion, or war; governmental intervention; or other cause beyond the party's control. (b). Subsection (a) does not apply unless the party invoking it notifies the other party of the force majeure event within five business days after it occurs, describing the nature of the event in detail and estimating its likely duration. The party invoking Subsection (a) has the burden of proving that the force majeure event exists. CAPCO FY2004 Solid Waste Interlocal Contract 32 (c). If the other party is reasonably satisfied that the force majeure event exists, it shall notify the invoking party that the obligations of this Contract are suspended from the effective date of the event throughout its duration. The party invoking Subsection (a) shall notify the other party within five business days after the force majeure event ends. When the force majeure event ends, the obligations of this Contract are reinstated for the remainder of the Contract's term. (d). If the obligations of this Contract are suspended because of a force majeure event for a cumulative period of more than 30 calendar days, either party may terminate this Contract in whole or part for convenience under Article 10. Article 23: Conflict of Interest (a). SUBCONTRACTOR agrees to comply with its internal policy prohibiting conflict of interest and with Chapter 171 of the TEX. LOCAL GOVT. CODE ANN. in carrying out this Contract. (b). If SUBCONTRACTOR learns that one of its governing body members, officers, employees, or agents has violated or may violate its internal policy or Chapter 171, SUBCONTRACTOR agrees promptly to take corrective and appropriate disciplinary action and to notify CAPCO in writing of the actual or potential violation and the corrective and disciplinary action taken. Article 24: Miscellaneous (a). All representations and warranties of SUBCONTRACTOR, together with all continuing obligations described in this Contract, survive the ending or early termination of this Contract. (b). This Contract states the entire agreement of the parties, and an amendment to it is not effective unless in writing and signed by both parties. (c). This Contract is binding on and inures to the benefit of the parties' successors in interest. (d). This Contract is performable in Travis County, Texas, and Texas law governs the interpretation and application of this Contract. (e). This Contract is executed in duplicate originals. CAPCO FY2004 Solid Waste Interlocal Contract 33 DATE: April 16, 2004 SUBJECT: City Council Meeting - April 22, 2004 ITEM: 14.D.1. Consider a resolution authorizing the Mayor to execute an Interlocal Contract for FY 2004 Solid Waste Equipment and Services with the Capital Area Planning Council for regional solid waste grant funds. Department: Water and Wastewater Utilities Staff Person: Tom Clark, Utilities Director Justification: Solid Waste Interlocal Contract Capital Area Planning Council (CAPCO) for regional solid waste grant funds will allow the City to offer a permanent household hazardous waste collection facility and to update current waste oil centers. These items will provide for waste diversion, recycling and safe storage of items such as oil, paint, pesticides, and home chemicals for the Round Rock service area. The funds received will go to the purchase of replacement used oil collection units and a new hazardous materials storage building. Contract must be signed if the grant funds to be allocated. Funding: Cost: $26,288 Source of funds: Reimbursed by CAPCO Grant Funds Outside Resources: Background Information: Public Comment: N/A CAPCO The city has conducted a waste oil recycling program for over twelve years. An average of 20,000 gallons of waste oil has been collected each of the past four years. Three of the initial oil units are in need of replacement. The City has participated in Household Hazardous Waste (HHW) event since 1996 and has begun to establish a permanent HHW collection facility. Hazardous materials storage buildings are necessary for this transition. Previous Resolution No. R -04-01-22-14G1 for grant application was approved by council on January 22, 2004. EXECUTED DOCUMENT FOLLOWS CAPITAL AREA PLANNING COUNCIL INTERLOCAL CONTRACT FOR FY2004 SOLID WASTE EQUIPMENT AND SERVICES The Capital Area Planning Council (hereafter, CAPCO) and the agreeing party (hereafter, SUBCONTRACTOR) each certifies that it has authority to perform this Contract under Chapter 391 of the Local Government Code, and Chapter 361 of the Health and Safety Code. This Solid Waste Interlocal Contract is entered into by and between the parties named below. Neither the Texas Commission on Environmental Quality (TCEQ) nor the State of Texas is a party to this agreement. I. CONTRACTING PARTIES: Contractor: Capital Area Planning Council Sub Contractor: City of Round Rock Contract #: OSI -12- GOl Amount Awarded: $26,288 II. SERVICES TO BE PERFORMED: See Attachment B — "Work Program of SUBCONTRACTOR" See Attachment C — "Schedule of Deliverables from SUBCONTRACTOR" III. BUDGET AND PAYMENT PROCEDURES: See Attachment D — "Budget and Authorizations" IV. ADDITIONAL CONTRACT PROVISIONS: See Attachment A — "Special Contract Provisions See Attachment E — "General Contract Provisions" R-641- QLl-as- NDI CAPCO FY2004 Solid Waste Interlocal Contract 1 CONTRACTING PARTIES CONTRACTOR: Capital Are Planning Council (CAPCO) SIGNATURE: NAME: TITLE: DATE: Betty Voights Executive Director SUBCONTRACTOR: SIGNATURE: NAME: TITLE: 03/i S/Gti City of Round Rock Nyle Maxwell Mayor DATE: L{ Oy CAPCO FY2004 Solid Waste Interlocal Contract 2 TABLE OF CONTENTS Attachment A: Special Contract Provisions 4 Article 1: Period of Performance 4 Article 2: Scope of Services 4 Article 3: CAPCO Obligations 4 Article 4: Reporting Requirements 7 Article 5: Monitoring Requirements 8 Article 6: Title To & Management of Real Property & Equipment 8 Article 7: Compliance with Applicable Laws 11 Article 8: Authorized Representatives 11 Attachment B: Work Program of SUBCONTRACTOR 13 Attachment C: Schedule of Deliverables from SUBCONTRACTOR 14 Attachment D: SUBCONTRACTOR Budget and Authorizations 15 Article 1: Expense Category Standards 15 Article 2: Supplemental Funding Standards 18 Article 3: SUBCONTRACTOR Authorized Budget 20 Attachment E: General Contract Provisions 21 Article 1: Legal Authority & Indemnification 21 Article 2: Scope of Services 21 Article 3: Purpose 21 Article 4: Eligible Entities 22 Article 5: Implementation Project Categories 23 Article 6: Liability Insurance 26 Article 7: Audit/Access to Records 26 Article 8: Independent Financial Audit 27 Article 9: Amendments to Contract 28 Article 10: Termination of Contract for Convenience 28 Article 11: Suspension or Termination of Contract for Unavailability of Funds 29 Article 12: Termination for Breach of Contract 29 Article 13: Severability 30 Article 14: Data and Publicity 30 Article 15: Intellectual Property 30 Article 16: Energy Efficiency Standards 31 Article 17: Identification of Funding Sources 31 Article 18: Dispute Resolution 31 Article 19: Oral and Written Contracts 32 Article 20: Nondiscrimination and Equal Opportunity 32 Article 21: Utilization of Small, Minority, & Women's Business Enterprises 32 Article 22: Force Majeure 32 Article 23: Conflict of Interest 33 Article 24: Miscellaneous 33 CAPCO FY2004 Solid Waste Interlocal Contract 3 ATTACHMENT A Special Contract Provisions Article 1: Period of Performance The period of performance of this Solid Waste Interlocal Contract (hereafter, the Contract) begins on the date that it is executed on behalf of CAPCO and ends, unless sooner terminated under Attachment E, on December 31, 2004. The SUBCONTRACTOR has from the time the Contract is executed to the ending date shown above to complete the tasks as shown in Attachment B of this Contract. The SUBCONTRACTOR may request in writing a time extension, but CAPCO is not obligated to provide the time extension. Article 2: Scope of Services AH parties agree that the City of Round Rock, in consideration of compensation hereinafter described, shall provide as specifically described in the Special and General Provisions of this Solid Waste Interlocal Contract, the services of: Household Hazardous Waste Management. The SUBCONTRACTOR agrees to implement the Project according to the agreed upon budget in an amount not to exceed $26,288 as detailed in Attachment D, Article 3 of this Contract. Failure on the part of the SUBCONTRACTOR to comply with the conditions set forth in this Contract shall be the basis for termination of the Contract and recovery of any unexpended or inappropriately expended funds. Article 3: CAPCO Obligations (a). Consideration In consideration of full and satisfactory performance hereunder, CAPCO will be liable to SUBCONTRACTOR in an amount equal to the allowable costs defined in OMB Circular No. A-87 and incurred by SUBCONTRACTOR in rendering such performance, subject to the following limitations: 1. CAPCO is not liable for expenditures made in violation of the Authorized Budget and funding guidelines in Attachment D, which outline the standards which shall apply to the SUBCONTRACTOR'S use of funds provided under this Contract, including prohibited activities and expense categories as defined by the TCEQ. 2. CAPCO is not liable for any costs incurred by SUBCONTRACTOR in the performance of this Contract which have not been billed to CAPCO within thirty (30) days following termination of this Contract. 3. CAPCO is not liable to SUBCONTRACTOR for costs incurred or performance rendered by SUBCONTRACTOR for costs incurred by SUBCONTRACTOR before commencement of this Contract or after termination of this Contract. CAPCO FY2004 Solid Waste Interlocal Contract 4 4. Except as specifically authorized by CAPCO in writing, CAPCO is liable only for expenditures made in compliance with the cost principles and administrative requirements set forth in Federal OMB Circular No. A-87. CAPCO is not liable for expenditures made in violation of Attachment D, Article 2 of this Contract. (b). Additional Documentation and Financial Monitoring Program 1. Financial Monitoring Program. The SUBCONTRACTOR will adhere to the following financial monitoring requirements in order to receive reimbursement for authorized expenditures and to ensure that the expenditures incurred were reasonable and necessary to the project. i) Payments to the SUBCONTRACTOR will be made only on a reimbursement basis. To receive reimbursement the SUBCONTRACTOR must submit the following: a) Form PT -F1 b) Form PT -F2 c) Supplemental Forms F2-1 through F2-4 (if appropriate) d) Copies of checks e) Copies of Invoices f) List of bid responses for purchases over $5,000 up to $15,000 g) Copy of RFP and list of RFP responses (if applicable) ii) If the SUBCONTRACTOR does not have a Purchasing Policy that complies with state law, the SUBCONTRACTOR must adhere to the general provisions of CAPCO's Purchasing Policy, which are outlined below: a) Purchases over $10,000 must be approved by the organization's governing body (i.e. school board, city council, and commissioner's court) b) Purchases above $25,000 require formal competitive sealed bids c) Purchases between $5,000 and $25,000 require informal bids (at least three written quotes) and must be approved by the governing body d) Purchases between $2,500 and $4,999 require informal bids (at least three written quotes) e) Purchases between $300 and $2,499 require at least three verbal quotes f) Purchase less than $300 do not require quotes g) Split purchases to avoid bidding requirements will not be allowed h) Cumulative purchases of like items through the fiscal year could be considered circumvention of the policy if it was reasonable to anticipate the purchases in advance Note: The use of State Contract items can eliminate the need for many of the bidding requirements. However, purchases over $10,000 still require approval of the organization's governing body. iii) The SUBCONTRACTOR is allowed to account for expenses incurred and request reimbursement of outlays under either a cash or an accrual basis, as defined and authorized under the UGMS. To be eligible for reimbursement under this Contract, a cost must have been incurred and either paid by the CAPCO FY2004 Solid Waste Interlocal Contract 5 SUBCONTRACTOR prior to claiming reimbursement from CAPCO or incurred by the last day of the time period indicated on a request for reimbursement form and liquidated no later than thirty (30) days after the end of that time period. iv) CAPCO will review all materials provided by the SUBCONTRACTOR with a request for reimbursement (Forms PT -F1 and PT -F2), and will not make a reimbursement payment unless all required items listed under Article 3 (b)1(i) of this Attachment have been provided and are deemed to be accurate. v) CAPCO shall reimburse or otherwise make payment to the SUBCONTRACTOR only for expenses incurred during the term of the Contract between CAPCO and the SUBCONTRACTOR, the term of which may not be outside of the term of this Contract. vi) CAPCO will not reimburse or otherwise make payment to the SUBCONTRACTOR for an expenditure that is not authorized under this Contract. If it is determined by either CAPCO or the TCEQ that an expenditure that was reimbursed is not an authorized expense, CAPCO shall request return and reimbursement of those funds from the SUBCONTRACTOR or, where appropriate, the application of those funds to other authorized expenses, and shall not provide additional reimbursements to the SUBCONTRACTOR until the funds are returned or are applied to other authorized expenses. 2. Documentation required. In general, expenditure documentation to be maintained by the SUBCONTRACTOR should be whatever is necessary to show that the work was indeed performed and that the expense was, in fact, incurred. In addition, the documentation should also support the fact that the expenditure was reasonable and necessary to this Contract. Documents that should be maintained, as appropriate for the expense, include but are not limited to the following: i) Salary/Wages — Time sheets that have been signed and approved. ii) Travel — Documentation which, at a minimum, is consistent with State Travel Regulations. The purpose of the travel should be documented and supported with actual receipts for hotel accommodations, public transportation receipts, airline receipts, etc. iii) Equipment — Purchase orders, invoices, and canceled checks. iv) Supplies — Purchase orders (if issued), invoices, and canceled checks. v) Contractual — All of the above plus documentation that the costs were reasonable and necessary. The same standards should be applicable to subcontractors. 3. Additional Documentation. If requested by CAPCO, the SUBCONTRACTOR agrees to provide to CAPCO the additional expense records and documentation materials, as listed in Section (b) 2 of this Article and appropriate for the expense, for the time period requested by CAPCO, except that the SUBCONTRACTOR will not be asked to submit records that have already been provided to CAPCO with a Financial Status Report. CAPCO will provide reasonable time for the CAPCO FY2004 Solid Waste Interlocal Contract 6 SUBCONTRACTOR to comply with a request for additional records. If CAPCO requests to review additional records to be provided by the SUBCONTRACTOR under CAPCO's financial monitoring program, CAPCO will review those records and provide the SUBCONTRACTOR a written summary of the findings of that review. CAPCO will also allow the SUBCONTRACTOR reasonable time to respond to any findings of noncompliance or other problems identified by the records review. (c). SUBCONTRACTOR Close Out Report No later than thirty (30) days following the termination of this Contract, SUBCONTRACTOR must submit to CAPCO a final "Financial Status Report," which indicates that the report is the "Final Report." If all expenditures have been completed before the end of the Contract, SUBCONTRACTOR shall submit the final "Financial Status Report" with the final "Request for Reimbursement." (d). Independent Contractor SUBCONTRACTOR is not an employee or agent of CAPCO, but provides goods and performs services under this Contract solely as an independent contractor. Article 4: Reporting Requirements (a). The SUBCONTRACTOR shall prepare and submit to CAPCO progress reports as designated in Attachment C of this Contract. These reports concern the performance under this Contract documenting program accomplishments and units of work performed under Attachment B of this Contract. These progress reports, to be submitted by the SUBCONTRACTOR, shall include: 1. Form PT -S1 which documents the progress and completion of tasks 2. Form PT -R1, the Waste Diversion Tracking Form 3. Forms R1 A, R1 B, R1 D or R1 E (as applicable to the project or as requested by CAPCO) Payments (reimbursements) required under this Contract will be withheld by CAPCO until such time as any past due progress reports are received. (b). The SUBCONTRACTOR progress reports required under Subsection A of Article 4 contain descriptions of activities and costs for CAPCO to ensure that the provisions of this Contract are being complied with. In particular, any legal research and related legal activities shall be clearly detailed in the quarterly progress reports in order to assure CAPCO that the activities are not prohibited under Attachment D Article 2 of this Contract (relating to Supplemental Funding Standards). The SUBCONTRACTOR shall comply with any reasonable request by CAPCO for additional information on activities conducted in order for CAPCO to adequately monitor the SUBCONTRACTOR's progress in completing the requirements of and adhering to the provisions of this Contract. (c). The SUBCONTRACTOR will certify in writing to CAPCO through a final progress report, the satisfactory completion of all activities and deliverables required under this Contract. The final progress report shall consist of the forms described in Section A of this Article 4. CAPCO FY2004 Solid Waste Interlocal Contract 7 (d). The SUBCONTRACTOR shall maintain the forms listed in Part A of this Section so that a follow-up results report can be prepared. The SUBCONTRACTOR shall provide CAPCO with a follow-up results report in FY 2005 so that CAPCO can report to the TCEQ the results of the projects funded under this Contract. (e). The SUBCONTRACTOR'S failure to comply with the requirements of this Article shall constitute a breach of this Contract. (f). (g). The SUBCONTRACTOR shall maintain documentation on the results of the project activities for the life of the program or activity. The reporting requirements of this Article 4 survive the ending or early termination of this Contract. Article 5: Monitoring Requirements (a). CAPCO may periodically monitor SUBCONTRACTOR for: 1. The degree of compliance with the terms of this Contract, including compliance with applicable rules, regulations, and promulgations referenced herein; and 2. The administrative and operational effectiveness of the project. (b). CAPCO shall conduct periodic analysis of SUBCONTRACTOR'S performance under this Contract for the purpose of assessing the degree to which contractual objectives and performance standards, as identified in this Contract or as subsequently amended, are achieved by SUBCONTRACTOR. Article 6: Title To and Management of Real Property and Equipment (a). Subject to the obligations and conditions set forth in this Agreement, title to real property and equipment (together hereafter referred to in this Article as "property") acquired under this Agreement by the SUBCONTRACTOR will vest upon acquisition or construction in CAPCO or the SUBCONTRACTOR respectively. (b). Subject to the provisions of this Agreement, and as otherwise provided by state statutes, property acquired or replaced under this Agreement shall be used for the duration of its normally expected useful life to support the purposes of this Agreement whether or not the original projects or programs continue to be supported by state funds. (c). The SUBCONTRACTOR shall not grant or allow to a third party a security interest in any original or replacement property purchased or constructed with funds made available to the SUBCONTRACTOR under this Agreement. (d). The use of property acquired under this Agreement, both during the term of this Agreement and for the useful life of the property or until compensation is provided to the FUNDING AGENCY for the applicable percentage share of the fair market value of the property, shall be in compliance with §361.014(b) of the TEXAS HEALTH & SAFETY CAPCO FY2004 Solid Waste Interlocal Contract 8 CODE ANN., which directs that a project or service funded under this program must promote cooperation between public and private entities and may not be otherwise readily available or create a competitive advantage over a private industry that provides recycling or solid waste services. (e). The SUBCONTRACTOR may develop and use their own property management systems, which must conform with all applicable federal, state, and local laws, rules and regulations. If an adequate system for accounting for property owned by the SUBCONTRACTOR is not in place or is not used properly, the Property Accounting System Manual issued by the State Comptroller of Public Accounts will be used as a guide for establishing such a system. The property management system used by the SUBCONTRACTOR must meet the requirements set forth in this Section. 1. Property records must be maintained that include a description of the property, a serial number or other identification number, the source of the property, who holds title, the acquisition date, and the cost of the property, percentage of state participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (f). (g). 2. A physical inventory of all equipment acquired or replaced under this Agreement shall be conducted no less frequently than once every two years and the results of such inventories reconciled with the appropriate property records. Property control procedures utilized by the SUBCONTRACTOR shall include adequate safeguards to prevent Toss, damage, or theft of the acquired property. Any loss, damage, or theft shall be investigated. The SUBCONTRACTOR shall develop and carry out a program of property maintenance as necessary to keep both originally acquired and any replaced property in good condition, and to utilize proper sales procedures to ensure the highest possible return, in the event such property is sold. 3. Certain types of equipment are classified as "controlled assets" and are subject to annual revision. In accordance with the UGMS, the SUBCONTRACTOR should contact the Texas Comptroller of Public Accounts' property accounting staff or review the Comptroller's state Property Accounting User Manual available on the Internet, for the most current listing. Firearms shall be maintained on the SUBCONTRACTOR's inventory system irrespective of cost, and the following equipment with costs between $500 and $1,000 shall be maintained on the inventory system: (1) stereo systems, (2) still and video cameras, (3) facsimile machines, (4) VCRs and VCR/TV combinations and (5) cellular and portable telephones. The SUBCONTRACTOR may for the purpose of replacing property acquired under this Agreement, either trade in or sell the property and use the proceeds of such trade-in or sale to offset the cost of acquiring needed replacement property. The SUBCONTRACTOR agrees that if a determination is made that any property acquired with funds provided under this Agreement with a current per-unit fair market value of $1,000 or more is no longer needed for the originally authorized purpose, CAPCO has the right to require disposition of the property by the SUBCONTRACTOR in accordance with the provisions of this Article. CAPCO FY2004 Solid Waste Interlocal Contract 9 (h). When, during the useful life of property acquired with grant funds under this Agreement by the SUBCONTRACTOR and with a current per-unit fair market value of $1,000 or more, the property is no longer needed for the originally authorized purpose, SUBCONTRACTOR agrees to request disposition instructions from the CAPCO or, if CAPCO is no longer administering a Regional Solid Waste Grants Program, the TCEQ. CAPCO shall, in turn, request authorization from the TCEQ to provide disposition instructions to the SUBCONTRACTOR. Disposition instructions shall solicit, at a minimum, information on the source and amount of funds used in acquiring the property, the date acquired, the fair market value and how the value was determined (e.g., by appraisal, bids, etc.), and the proposed use of the proceeds. The assessment of whether to authorize the proposed disposition of the property must include a determination that the disposition plan will comply with the private industry provisions of §361.014(b) of the TEXAS HEALTH & SAFETY CODE ANN. In cases where SUBCONTRACTOR fails to take appropriate disposition actions, CAPCO may direct SUBCONTRACTOR to take excess and disposition actions. The disposition instructions may provide for one of the alternatives as set forth in this Section. 1. Retain title, sell, or otherwise disposed of with no obligation to compensate CAPCO. 2. Retain title after compensating CAPCO. If CAPCO is compensated by the SUBCONTRACTOR for property acquired using funds provided under this Agreement, CAPCO will in turn compensate the TCEQ or, upon authorization by the TCEQ, use those funds for other projects or activities that support this or similar future programs conducted by the TCEQ. The amount due will be computed by applying the percentage of state -funded participation in the cost of the original purchase to the fair market value of the property. 3. Sell the property and compensate CAPCO. If CAPCO is compensated the SUBCONTRACTOR for property acquired using funds provided under this Agreement, CAPCO will in turn compensate the TCEQ or, upon authorization by the TCEQ, use those funds for other projects or activities that support the goals of this or similar future programs conducted by the TCEQ. The amount due will be calculated by applying CAPCO's percentage of participation in the cost of the original purchase to the proceeds of the sale after deduction of any actual and reasonable selling and fixing -up expenses. If the grant is still active, the net proceeds from sale may be offset against the original cost of the property. When SUBCONTRACTOR is directed to sell property, sales procedures shall be followed that provide for competition to the extent practicable and result in the highest possible return. 4. Transfer title to CAPCO or to a third -party designated/approved by the TCEQ. If the SUBCONTRACTOR participated financially in the original purchase of the property, the SUBCONTRACTOR may be authorized payment from the receiving party of an amount calculated by applying the percentage of the participation in the original purchase of the property to the current fair market value of the property. i) Items of property with a current per-unit fair market value of less than $1,000 may be retained, sold or otherwise disposed of by the SUBCONTRACTOR with no further obligation to CAPCO. Methods used to determine per-unit fair market value must be documented, kept on file and made available to CAPCO and the TCEQ upon request. CAPCO FY2004 Solid Waste Interlocal Contract 10 Article 7: Compliance with Applicable Laws The SUBCONTRACTOR shall give all notices and comply with all laws, ordinances, rules, regulations and order of any public authority bearing on the performance of this Contract including, but not limited to, the laws referred to in this Contract. If the SUBCONTRACTOR or CAPCO observes that this Contract is at variance, the observing party shall promptly notify the other party in writing, and any necessary changes shall be addressed by appropriate Contract modification. On request, the SUBCONTRACTOR shall furnish CAPCO modification. The main governing standards include, but may not be limited to the following: (a). Section 361.014, TEX. HEALTH & SAFETY CODE ANN; (b). Section 330.569 of the TCEQ Municipal Solid Waste Regulations (30 TAC Chapter 330); and (c). The Uniform Grant and Contract Management Act, Chapter 783 of the TEX. GOV'T CODE ANN, and the Uniform Contract Management Standards, 1 Texas Administrative Code Section 5.141 et. seq. (UGMS). Article 8: Authorized Representatives (a). CAPCO hereby designates the person named in Exhibit A-1, Project Representative, to this Attachment A, as the individual authorized to give direction to the SUBCONTRACTOR for the purposes of this Contract. CAPCO Project Representative shall not be deemed to have authority to bind CAPCO in Contract unless the Executive Director of CAPCO has delegated such authority in writing. (b). Immediately upon execution of this Contract, the SUBCONTRACTOR shall identify, as its Project Representative, the person authorized to receive direction from CAPCO, to manage the work being performed, and to act on behalf on the SUBCONTRACTOR as Project Representative The SUBCONTRACTOR's Project Representative shall be deemed to have authority to bind the subcontractor in Contract unless the SUBCONTRACTOR, in writing, specifically limits or denies such authority to the SUBCONTRACTOR's Project Representative with respect to the administration of the Contract. (c). Either party may change its Project Representative. In addition, the Project Representative of either party may further delegate his or her authority as necessary, including any delegation of authority to a new Project Representative. The party making the change in Project Representative shall provide written notice of the change to the other party. (d). The SUBCONTRACTOR shall ensure that its Project Representative, or his or her delegate, is available at all times for consultation with CAPCO. If the project representative will be absent during the term of this Contract, the SUBCONTRACTOR shall designate an alternate that will be available to consult with CAPCO. CAPCO FY2004 Solid Waste Interlocal Contract 11 Exhibit A-1 The Capital Area Planning Council hereby designates the individual below as the person to give direction to the SUBCONTRACTOR as Project Representative of CAPCO: Name: Heather Parscal Title: Solid Waste Program Coordinator Address: 2512 IH 35 South, Suite 200 Austin, TX 78704 Phone: (512) 916-6170 Fax: (512) 916-6001 E-mail: hparscal(c�capco.state.tx.us The SUBCONTRACTOR hereby designates the individual named below as the person authorized to receive direction from CAPCO, to manage the work being performed, and to act on behalf of the SUBCONTRACTOR as a Project Representative: (Please complete all of the following information) Name: Tracy Herring Title: Environmental Services Supervisor Address: 2008 Enterprise Drive Round Rock, TX 78664 Phone: (512) 218-5559 Fax: (512) 341-3316 E-mail: tracyhround-rock.tx.us The SUBCONTRACTOR designates the following location for record access and review pursuant to Attachment A & Attachment E of this Contract or any other applicable provision: CAPCO FY2004 Solid Waste Interlocal Contract 12 ATTACHMENT B Work Program of SUBCONTRACTOR Task 1: Obtain pricing on equipment and request permission to purchase by CAPCO Completed By: April 2004 Task 2: Purchase oil units and place into operation Completed By: May 2004 Task 3: Submit 90 -day notification to TCEQ regarding permanent HHW facility Completed By: May 2004 Task 4: Submit 45 -day Operational Plan to TCEQ Completed By: June 2004 Task 5: Purchase hazardous waste storage building and place into operation Completed By: July 2004 Task 6: Document hazardous waste amounts for oil and materials collected for storage unit Completed By: ongoing through entire contract period Task 7: Prepare quarterly reports for CAPCO Completed By: April 30, 2004; July 31, 2004; October 31, 2004; and January 15, 2005 CAPCO FY2004 Solid Waste Interlocal Contract 13 ATTACHMENT C Schedule of Deliverables from SUBCONTRACTOR REQUIRED REPORTS* Report Reporting Period Due Date Progress Report #1 Progress Report #2 Progress Report #3 Final Report #4 Follow Up Results Report Execution of Contract — April 15, 2004 April 16 — July 15, 2004 July 16 — October 15, 2004 October 16 — December 31, 2004 April 30, 2004 July 31, 2004 October 31, 2004 January 15, 2005 TBD — FY 2005 NOTE: For the purposes of preparing quarterly reports, it is suggested that the SUBCONTRACTOR maintain the Waste Diversion Tracking Form on a monthly basis. Please see Attachment A Article 4 for forms that are due at the above due dates. The reporting forms will be sent to the SUBCONTRACTOR after this Contract becomes effective. CAPCO FY2004 Solid Waste Interlocal Contract 14 ATTACHMENT D SUBCONTRACTOR Budget and Authorizations Article 1: Expense Category Standards In addition to the other standards and requirements of this Agreement, the definitions and requirements set forth in Sections (a) — (h) of this Article shall apply to the SUBCONTRACTOR's use of funds provided under this Agreement and assignment of expenses to the expense categories of the budget set forth in Attachment D Article 3 of this Agreement. (a). Personnel. In accordance with §391.0117 of the Local Government Code, as amended by the 76th Legislature, the SUBCONTRACTOR shall utilize the Salary Administration Provisions and Schedules, and Position Classification Schedules applicable to state agencies for all salaries of employees of the SUBCONTRACTOR funded under this Agreement. 1. The SUBCONTRACTOR's employee positions covered in this Agreement are set forth in Detailed Budget Sheet 2 of the grant application. Any change in employee position constitutes a minor amendment pursuant to Article 9 of the General Provisions (Attachment E) of this Agreement. (b). Travel. The SUBCONTRACTOR shall comply with state travel regulations as required by §391.0115 of the Local Government Code, for all of the SUBCONTRACTOR's travel expenses to be reimbursed with funds provided under this Agreement as set forth in this Section. 1 The SUBCONTRACTOR shall obtain prior written authorization from CAPCO for reimbursement under this Agreement of any travel outside of the State of Texas. 2. Except as provided for under Subsection 1 of this Section, the SUBCONTRACTOR shall obtain prior written authorization from CAPCO for reimbursement from the travel expense category of the budget set forth in Attachment D Article 3, of any travel expenses for persons not employed by the SUBCONTRACOTR, and for travel by any employee not included in Detailed Budget Sheet 2 of the grant application. (c). Supplies. Expenses included under the Supplies expense category of the budget set forth in Attachment D Article 3, shall be for non -construction related costs for goods and materials having a unit acquisition cost (including freight) of Tess than $1,000. Such expenditures shall generally relate to the routine purchase of office supplies (paper, pencils, and staplers) or other goods which are consumed by the SUBCONTRACTOR in a relatively short period of time, in the regular performance of the general activities funded under this Agreement. 1. Non -routine expenditures of goods and materials, not falling under the definition of Equipment under Section (d). of these Program Conditions, shall be charged to the Other expense category. CAPCO FY2004 Solid Waste Interlocal Contract 15 (d). Equipment. Expenses included under the Equipment expense category of the budget set forth in Attachment D Article 3, shall be for non -construction related, tangible, personal property having a unit acquisition cost of $1,000 or more (including freight and set up costs) with an estimated useful life of over one year. 1. No purchases of equipment to be charged to the equipment expense category of the budget set forth in Attachment D Article 3, shall be allowed under this Agreement unless approved ahead of time, in writing, by CAPCO. Approvals for equipment purchases in conjunction with COG -managed projects shall be included with the overall approvals for those projects. 2. Any equipment that will be used for other projects or activities, in addition to the funded project, may only be funded at an amount reflecting the appropriate percentage of time that the equipment will be directly used for the funded project. The special conditions and requirements set forth in the grant agreement (relating to Title to and Management of Equipment and Constructed Facilities), also apply to equipment purchased with pass-through grant funding. (e). Construction. Expenses included under the Construction expense category of the budget set forth in Attachment D Article 3, shall be for costs related to projects, administered by the SUBCONTRACTOR, concerned with the enhancement or building of permanent facilities. 1. Expenses budgeted under the construction expense category of the budget set forth in Attachment D Article 3, should be for costs related to the enhancement or building of permanent facilities. Appropriate costs to include under the Construction expense category are set forth in this Section. i) The cost of planning the project. ii) The cost of materials and labor connected to the construction project. iii) The cost of equipment attached to the permanent structure. iv) Any subcontracts, including contracts for services, which are performed as a portion of the project administered by the SUBCONTRACTOR. 2. No expenditures under the Construction expense categories of the budget set forth in Attachment D Article 3, shall be allowed under this Agreement unless approved ahead of time, in writing, by CAPCO. (f). Contractual Expenses. Expenses included under the Contractual expense category of the budget set forth in Attachment D Article 3, shall be for costs for professional services or tasks provided by a firm or individual who is not employed by the SUBCONTRACTOR as set forth in the Section. 1. No contractual expenses included under the contractual expenses category of the budget set forth in Attachment D Article 3, shall be allowed under this Agreement unless such contracts' scope of work has been approved ahead of time, in writing, by CAPCO. 2. Any amendment to the SUBCONTRACTOR's subcontract authorized for reimbursement under this Agreement, whether or not such subcontract required CAPCO pre -approval, which will result in or require substantive changes to any of CAPCO FY2004 Solid Waste Interlocal Contract 16 (g). the tasks required to be performed under this Agreement, as set forth in these Program Conditions, must be approved in writing by the CAPCO. 3. All applicable laws and regulations concerning bidding and contracting for services shall be followed. Other Expenses. All expenses under the Other expense categories of the budget set forth in Attachment D Article 3, shall be in connection with the tasks and activities to be performed under this Agreement. Expenses not falling under the main expense categories may be included under the Other expense category if appropriate for the proposed project as set forth in this Section. 1. No expenses under the Other expense category including computer hardware or software purchases not included under the Equipment expense category, shall be eligible for reimbursement under this Agreement unless approved ahead of time, in writing, by CAPCO. 2. Subcategories of Other expenses for which prior authorization, as described in Subsection 1. of this Section, is not required are set forth in this Section. i) Books and reference materials. ii) Dues and membership fees for the SUBCONTRACTOR's affiliation with organizations and associations which directly relate to the performance of activities under this Agreement (dues for individual employee affiliation to particular organizations or professional associations, unless listed in Detailed Budget Sheet 8 of the grant application, must be approved individually, in writing, by CAPCO). iii) Subscriptions, only insomuch as they relate directly to the performance of activities under this Agreement. iv) Postage, telephone, FAX, and utilities expenses. v) Printing and reproduction expenses. vi) Advertising and public notices. vii) Registration fees and other staff training costs (fees and training costs for persons not employed by the SUBCONTRACTOR, unless listed in Detailed Budget Sheet 8 of the grant application, must be approved individually by CAPCO). viii) Repair and maintenance costs. ix) Office furniture, not falling under the definition of equipment under Attachment D Article 1 of the Agreement. x) Space and equipment rentals. xi) Signs. xii) Additional Other expenses listed in Detailed Budget Sheet 8 of the grant application. 3. The SUBCONTRACTOR shall ensure that expenditures charged under the Other expense category are not also included within the expenses reimbursed through the Indirect Costs category. (h). Indirect Cost Rates. Not withstanding this section or any other part of this Agreement, the SUBCONTRACTOR shall comply with all provisions of §391.0115 of the Texas Local Government Code relating to the restrictions on commission costs, and shall advise CAPCO FY2004 Solid Waste Interlocal Contract 17 CAPCO in writing in the event such compliance will necessitate a reduction or other change to the indirect cost rate(s) set forth in the budget portion of this Agreement. The SUBCONTRACTOR shall comply with all requirements and rules to be adopted by the Office of the Governor pursuant to §391.009 of the Texas Local Government Code relating to the operations and oversight of Regional Planning Commissions. Article 2: Supplemental Funding Standards In addition to the standards set forth in applicable laws and regulations, the standards outlined below apply to all uses of the funds provided under this Agreement. Unless authorization is otherwise specifically provided for in or under the terms of this Agreement, the use of funds provided under this Agreement shall be in accordance with the supplemental funding standards set forth in this Article. 1. Payment of Fees. Local and regional political subdivisions subject to the payment of state solid waste disposal fees and whose payments are in arrears are not eligible to receive grant funding. 2. Land Acquisition Costs.Funds provided under this Agreement may not be used to acquire land or an interest in land. 3. Municipal Solid Waste -Related Programs Only. Funds provided under this Agreement may not be used for programs dealing with wastes that are not considered municipal solid waste (MSW), including programs dealing with industrial or hazardous wastes. 4. Programs Solely Related to Collection of Certain Wastes. Funds provided under this Agreement may not be used for programs and activities solely related to the management of automotive wastes, to include: scrap tires, used oil, oil filters, antifreeze, lead -acid batteries, or other similar wastes excluded from disposal in MSW landfills. Funds may also not be used for the processing of scrap tires, such as through the purchase of equipment to shred or split the tires. However, collection of these materials may be included as part of a comprehensive household hazardous waste collection and management program, so long as that is not the sole intent of the program. 5. Activities Related to the Disposal of Municipal Solid Waste. Except as may be specifically authorized under an eligible project category, funds provided under this Agreement may not be used for activities related to the disposal of municipal solid waste. This restriction includes: solid waste collection and transportation to a disposal facility; waste combustion (incineration or waste -to -energy); processing for reducing the volume of solid waste which is to be disposed of; any landfill -related facilities or activities, including the closure and post -closure care of a landfill; or other activities and facilities associated with the ultimate disposal of municipal solid waste. This provision does not apply to activities specifically included under an authorized project category, to include citizens' collection stations, and small registered transfer stations. 6. Projects Requiring a TCEQ Permit. Funds may not be used for expenses related to projects or facilities that require a permit from the TCEQ and/or that are located within the boundaries of a permitted facility, including landfills, wastewater treatment plants, and other facilities. This provision, however, may be waived by the TCEQ, at its CAPCO FY2004 Solid Waste Interlocal Contract 18 discretion, for otherwise eligible activities to be located at a closed permitted facility and/or for recycling activities that will take place within the boundaries of an open facility. Recycling activities that may qualify for such a waiver may include recyclables collection, composting, and land application of biosolids for beneficial use. The applicant should request a preliminary determination from the TCEQ as to the eligibility of the project prior to consideration for funding. 7. Projects Requiring TCEQ Registration. Projects or facilities that require registration from the TCEQ, and which are otherwise eligible for funding, may be funded. However, the registration for the facility must be finally received before that project can be selected for funding. 8. Projects that Create a Competitive Advantage Over Private Industry. In accordance with §361.014(b) of the Texas Health and Safety Code, a project or service funded under this Agreement must promote cooperation between public and private entities and may not be otherwise readily available or create a competitive advantage over a private industry that provides recycling or solid waste services. Under this definition, the term private industry includes non-profit entities. 9. Supplanting Existing Funds. Funds provided under this Agreement may not be used to supplant existing funds. In particular, staff positions where the functions assigned to that position will remain the same and that were active at the time of the grant application, and were funded from a source other than a previous solid waste grant, are not eligible for grant funding. This provision does not apply to the salaries for staff of the SUBCONTRACTOR in its conduct of activities under this Agreement. 10. Food/Entertainment Expenses. Funds provided under this Agreement may not be used for food or entertainment expenses, including refreshments at meetings and other functions. This provision does not apply to authorized employee per diem expenses for food costs incurred while on travel status. 11. Use of Alcoholic Beverages. Funds provided under this agreement may not be used for payment of salaries to any employee who uses alcoholic beverages on active duty. None of these funds may be used for the purchase of alcoholic beverages, including travel expenses reimbursed with these funds. 12. Funds to Law Enforcement Agencies. Funds provided under this Agreement may not be provided to any law enforcement agency regulated by Chapter 415 of the Texas Government Code, unless the law enforcement agency is in compliance with all rules developed by the Commission on Law Enforcement Officer Standards and Education pursuant to Chapter 415 of the Texas Government Code, or the Commission on Law Enforcement Officer Standards and Education certifies that the requesting agency is in the process of achieving compliance with such rules. CAPCO FY2004 Solid Waste Interlocal Contract 19 Article 3: SUBCONTRACTOR'S AUTHORIZED BUDGET City of Round Rock - HHW Management v+tea.. 1 Al V1FVL`1y, OUiVi1V1Hi(1 5 1 � �' � �.'jdr,• 3 e".;t � f5 � i hied a" � m'� i 3 v 4 1. Personnel (Salary) $0.00 2. Fringe Benefits $0.00 3. Travel $0.00 4. Supplies (unit cost of less than $1,000) $0.00 5. Equipment (unit cost of $1000 or more) $26,288.00 6. Construction $0.00 7. Contractual (other than for construction) $0.00 8. Other $0.00 9. Indirect charges $0.00 TOTAL $26,288.00 10. Fringe Benefit Rate: 0% 11. Indirect Cost Rate: 0% Used oil tanks Hoz waste storage building TBD TBD $2,096.00 $20,000.00 $0.00 3 1 0 $6,288.00 $20,000.00 $0.00 ATTACHMENT E General Provisions Article 1: Legal Authority and Indemnification The SUBCONTRACTOR warrants and assures CAPCO that it possesses adequate legal authority to enter into this Contract. The SUBCONTRACTOR'S governing body where applicable has authorized the signatory official(s) to enter into this Contract and bind the SUBCONTRACTOR to the terms of this Contract and any subsequent amendments hereto. The SUBCONTRACTOR agrees to adhere to the provisions of Section 361.014 of the Texas Health and Safety Code, Title 30 Texas Administrative Code section 330.569, to the provisions of section 330.59 of the TNRCC Municipal Solid Waste Regulations, this agreement and the Uniform Grant Management Standards ("UGMS"). Indemnification (a) To the extent allowed by Texas law, SUBCONTRACTOR agrees at its own expense to defend CAPCO and TCEQ, their governing body members, officers, employees, and agents, against any claim, suit, or administrative proceeding, and to indemnify them against any liability (including all expenses and reasonable counsel fees incurred), arising out of any act or omission of SUBCONTRACTOR's governing body member, officer, employee, or agent under this Contract. (b) If SUBCONTRACTOR is served with process in a suit or proceeding described in Subsection (a), SUBCONTRACTOR agrees to furnish CAPCO promptly with a copy of the process. (c) SUBCONTRACTOR agrees that its indemnification obligations under Subsection (a) apply to causes of action accruing during the term of this Contract, and that for this purpose the obligations will survive the ending or early termination of this Contract. Article 2: Scope of Services The services to be performed by the SUBCONTRACTOR are herewith outlined in the General Contract (Attachment E) and the Special Contract Provisions (Attachment A), which are hereby incorporated into and made a part of this Contract as if set out word-for-word herein. Article 3: Purpose (a). The purpose of this Contract is to accomplish the goals of the Solid Waste Disposal Act of 1989, as amended, as they relate to distributing solid waste fee revenue funds to support local and regional solid waste projects consistent with the regional solid waste management plans approved by the TCEQ and to update and maintain those plans. CAPCO FY2004 Solid Waste Interlocal Contract 21 (b). Under the overall goals of the funding program the purposes of this Contract are: 1. To enable CAPCO to carry out or conduct various municipal solid waste management -related services and support activities within CAPCO's regional jurisdiction; and 2. To enable CAPCO to report to the Legislature and promote the continuation of pass- through grant funding; and 3. To administer an efficient and effective, region -wide, pass-through (subgrantee) assistance grants program and/or, where authorized by CAPCO in accordance with Article 5 of this Attachment, to conduct various CAPCO - managed projects. (c). The specific purposes of this grant Contract, to implement paragraph (b) above are: To provide equipment to the citizens of Round Rock to promote household hazardous waste management. Both the storage facility and used oil collection tanks will help implement CAPCO's Goal #1: Develop and manage a HHW collection and diversion program. Article 4: Eligible Entities (a). Only those local and regional political subdivisions located within the State of Texas as listed below are eligible to receive funding from CAPCO as a pass-through grant: 1. Cities; 2. Counties; 3. Public schools and school districts (does not include Universities or post secondary educational institutions); and 4. Other general and special law districts created in accordance with state law, and with the authority and responsibility for water quality protection or municipal solid waste management, to include river authorities. (b). Local and regional political subdivisions that are subject to the payment of state solid waste disposal fees and whose fee payments are in arrears, as determined by CAPCO, are not eligible to receive pass-through grant funding from CAPCO. CAPCO shall allow a potential pass-through grant applicant that is listed as being in arrears in its fee payments the opportunity to provide documentation of payment of the fees owed the state. If the potential applicant provides CAPCO with documentation of payment of the fees, such as a canceled check or receipt from the state, CAPCO may consider that applicant to be eligible to receive pass-through grant funding under this Contract. CAPCO FY2004 Solid Waste Interlocal Contract 22 Article 5: Implementation Project Categories The standards and requirements set forth in this Article shall apply to all implementation projects funded under this Agreement. CAPCO shall be responsible for ensuring that the implementation projects funded under this Agreement comply with the standards set forth in this Article. (a). Eligible Implementation Funding Recipients. Only those local and regional political subdivisions located within the State of Texas as set forth in this Section are eligible to receive funding from CAPCO as a pass-through grant. 1. Cities. 2. Counties. 3. Public schools and school districts (does not include Universities or post secondary educational institutions). 4. Other general and special law districts created in accordance with state law, and with the authority and responsibility for water quality protection or municipal solid waste management, to include river authorities. 5. Councils of Governments. (b). Implementation Project Categories. CAPCO shall ensure that all implementation projects funded under this Agreement fit within the categories set forth in this Section. The category -specific funding limitations outlined for each category shall apply to all uses of funds under implementation projects conducted for that category. 1. Local Enforcement. This category consists of projects which contribute to the prevention of illegal dumping of municipal solid waste, including liquid wastes. Under this category, grant recipients may investigate illegal dumping problems; enforce laws and regulations pertaining to the illegal dumping of municipal solid waste, including liquid waste; establish a program to monitor the collection and transport of municipal liquid wastes, through administration of a manifesting system; and educate the public on illegal dumping laws and regulations. Funding limitations specific to this category are set forth in this Section. i) Funds provided under this Agreement may not be used for enforcement activities related to the illegal disposal of industrial or hazardous waste. Instances where industrial or hazardous waste may be discovered at an investigation site do not preclude the general investigation of that site, so long as the funded program is specifically aimed at the illegal disposal of municipal solid waste. ii) Funds provided under this Agreement may not be used for either the cleanup of illegal disposal sites nor the transportation and/or disposal of wastes collected at those sites. Note that while this restriction applies to ongoing enforcement programs dealing with illegal dumping, general community cleanup events that may include the cleanup and transportation of general litter and materials may be authorized under a separate category. 2. Source Reduction and Recycling. This category includes projects which provide a direct and measurable effect on reducing the amount of municipal solid waste going into landfills, by diverting various materials from the municipal solid waste stream for reuse or recycling, or by reducing waste generation at the source. Activities funded CAPCO FY2004 Solid Waste Interlocal Contract 23 under this category may include: diversion from the waste stream and/or collection, processing for transport, and transportation of materials for reuse and/or recycling; implementation of efficiency improvements in order to increase source reduction and recycling, to include full -cost accounting systems and cost -based rate structures, establishment of a solid waste services enterprise fund, and mechanisms to track and assess the level of recycling activity in the community on a regular basis; and educational and promotional activities to increase source reduction and recycling. Funding limitations specific to this category are set forth in this Section. i) Programs and projects funded under this category shall have as a goal and be designed to provide a measurable effect on reducing the amount of municipal solid waste being disposed of in landfills. ii) Any program or project aimed at demonstrating the use of products made from recycled and/or reused materials shall have as its primary function the education and training of residents, governmental officials, and others, in order to encourage support for recycling efforts. iii) Programs aimed at efficiency improvements in a local governments solid waste management system to increase the source reduction of solid waste must be coordinated with the TCEQ. Any program to develop a full -cost accounting system shall utilize the full -cost accounting guidance prepared by the TCEQ. iv) Projects funded under this Agreement may not include programs dedicated to the collection and/or recycling of automotive wastes, to include scrap tires, used oil, oil filters, antifreeze, or lead -acid batteries. This restriction includes the purchase of equipment to shred or split scrap tires. However, this restriction does not apply to the ancillary collection of these materials as part of a comprehensive Household Hazardous Waste Collection facility or program. 3. Citizens' Collection Stations, Community Collection Events, and "Small" Registered Transfer Stations. This category includes projects to construct municipal solid waste collection facilities in areas of the state which are under served by collection services or do not have access to proper disposal facilities. Projects funded under this category may include citizens' collection stations, as these facilities are defined under the TCEQ's Municipal Solid Waste regulations (30 TAC Chapter 330, §330.2). Municipal Solid Waste Transfer Stations that qualify for registration under §330.4(d)(1) - (3) or §330.4(r) of the regulations may also be funded. A project funded under this category shall include consideration of an integrated approach to solid waste management, to include providing recycling services at the site, if appropriate to the management system in place. Funding limitations specific to this category are set forth in this Section. i) Transfer stations that require a permit from the TCEQ may not be funded. ii) Municipal solid waste transfer stations that qualify for registration under §330.4(d)(1)- (3) of the Municipal Solid Waste regulations may be funded. iii) Transfer stations that qualify for a registration solely due to their location within a permitted municipal solid waste facility, under §330.4(d)(4), may not be funded. CAPCO FY2004 Solid Waste Interlocal Contract 24 iv) Municipal solid waste transfer stations that qualify for a registration only under the provisions of §330.4(q) of the Municipal Solid Waste regulations allowing for registration of facilities that recover 10% or more of the waste stream for reuse or recycling, but not also under the provisions of §330.4(d)of the Municipal Solid Waste regulations, may not be funded. However, those components of a transfer facility dedicated to the reuse or recycling activities may qualify for funding under the source reduction and recycling grant category. v) Municipal Solid Waste transfer stations that are used only in the transfer of grease trap waste, grit trap waste, septage, or other similar liquid waste, and which qualify for registration under §330.4(r) of the Municipal Solid Waste regulations may be funded under this category. Specifically, §330.4(r) of the regulations allows for registration of a liquid waste transfer facility that will receive 32,000 gallons a day or Tess. vi) Only the costs necessary to construct the facility and/or purchase and install necessary equipment may be funded. Costs associated with operating a facility once it is completed may not be funded. vii) Transfer stations that require a registration must have already received that registration from the TCEQ before a grant may be awarded. 4. Household Hazardous Waste Management. This category includes projects which provide a means for the collection, recycling or reuse, and/or proper disposal of household hazardous waste, including household chemicals and other materials. Projects may include collection events, consolidation and transportation costs associated with collection activities, permanent collection facilities, and education and public awareness programs. Funding limitations specific to this category are set forth in this Section. i) Projects under this category must be coordinated with the TCEQ to ensure that all applicable regulations and guidelines are followed. ii) Funds provided under this Agreement may not be used for programs and activities related to the collection and management of commercial or industrial hazardous wastes. iii) Funds provided under this Agreement may not be used for programs and activities solely related to the management of scrap tires, used oil, oil filters, antifreeze, lead -acid batteries, or other special wastes excluded from disposal in municipal solid waste landfills. However, collection of these materials may be included as part of a comprehensive Household Hazardous Waste collection and management program, so long as that is not the sole intent of the program. 5. Educational and Training Projects. Educational components are encouraged under the other categories in order to better ensure public participation in projects; those educational components should be funded as part of those projects and not separately under this category. This category may be used for "stand-alone" educational projects dealing with a variety of solid waste management topics. This category may include funding for information -exchange activities, subject to the other CAPCO FY2004 Solid Waste Interlocal Contract 25 limitations on travel expenses. Funding limitations specific to this category are set forth in this Section. i) Programs and projects funded under this category shall be primarily related to issues involved in the management of municipal solid waste. Education or training events that cover a broader range of environmental issues may be funded on a partial basis appropriate to the extent to which municipal solid waste issues are covered. Article 6: Liability Insurance (a). Contractor agrees to maintain its own commercial general liability insurance, or the equivalent in amount and coverage of self-insurance, during the term of this Contract and to name CAPCO an additional insured on the policy Contractor agrees to provide the minimum primary insurance coverage of $500,000 general aggregate and $250,000 each occurrence plus $500,000 excess coverage. (b). Contractor's liability insurance must contain provisions, to the extent legally permitted, that the insurer will notify CAPCO in writing at least 10 calendar days in advance of (1) cancellation of non -renewal of the policy; (2) any reduction in the policy amounts; and (3) deletion of CAPCO as an additional insured. (c). SUBCONTRACTOR agrees to furnish CAPCO with a certificate of the Contractor's commercial liability insurance or copy of its policy, or to certify in writing that it has in force the equivalent amount and coverage of self-insurance, within 30 calendar days after the date this Contract is signed on behalf of CAPCO. (d). SUBCONTRACTOR shall maintain and supervise all safety precautions and programs in connection with its performance of the work program. Article 7: Audit/Access to Records (a). The SUBCONTRACTOR shall maintain and make available for review, inspection and/or audit books, records, documents, and other evidence reasonably pertinent to performance on all work under this Contract, including negotiated changes or amendments thereto, in accordance with accepted professional practice, appropriate accounting procedures and practices at the SUBCONTRACTOR'S Texas office. The SUBCONTRACTOR shall also maintain and make available at its Texas Office the financial information and data used by the SUBCONTRACTOR or its designee (including independent financial auditors) in the preparation or support of any cost submission or cost (direct and indirect), price or profit analysis for this Contract or any negotiated sub - agreement or change order and a copy of the cost summary submitted to CAPCO. CAPCO, TCEQ, Texas State Auditor's Office or any of CAPCO's duly authorized representatives, shall have access to such books, records, documents, and other evidence for the purpose of review, inspection and/or audit. During the conduct of any such review, audit or inspection, SUBCONTRACTOR'S books, records, and other CAPCO FY2004 Solid Waste Interlocal Contract 26 pertinent documents may, upon prior conference with the SUBCONTRACTOR, be copied by CAPCO or any of its duly authorized representatives. All such information shall be handled by the parties in accordance with good business ethics. The SUBCONTRACTOR shall provide proper facilities within the State of Texas for such access and inspection. (b). Audits conducted pursuant to this provision shall be in accordance with State law, regulations and policy, and generally accepted auditing standards and established procedures and guidelines of the reviewing or audit agency. (c). The SUBCONTRACTOR agrees to the disclosure of all information and reports resulting from access to records pursuant to Section (a) above to CAPCO. Where the audit concerns the SUBCONTRACTOR, the auditing agency will afford the SUBCONTRACTOR an opportunity for an audit exit conference and an opportunity to comment on the pertinent portions of the draft audit report. (d). Records under Sections (a) above shall be maintained and made available during the entire period of performance of this Contract and until three (3) years from date of final CAPCO payment for the project. In addition, those records which relate to any dispute, litigation, or the settlement of claims arising out of such performance, or costs or items to which an audit exception has been taken shall be maintained and made available until completion of such action and resolution of all issues which arise from it, or until the end of the regular three-year period, whichever is later. (e). Access to records is not limited to the required retention periods. The authorized representatives designated in Section (a) of this Article shall have access to records at any reasonable time for as long as the records are maintained. This audit/access to records Article applies to financial records pertaining to all subagreements and all subagreement change orders and amendments. In addition, this right of access applies to all records pertaining to all subagreements, subagreement change orders and subagreement amendments: to the extent the records reasonably pertain to subagreement performance; if there is any indication that fraud, gross abuse or corrupt practices may be involved; or if the subagreement is terminated for default or for convenience. (f). (g). CAPCO reserves the right to require the reimbursement of any over -payments determined as a result of any audit or inspection of records kept by the SUBCONTRACTOR on work performed under this Contract. (h). The SUBCONTRACTOR agrees to include Sections (a) through (g) of this Article in all subagreements and all change orders directly related to project performance. Article 8: Independent Financial Audit The SUBCONTRACTOR shall adhere to the Single Audit requirements of the UGMS. The SUBCONTRACTOR shall deliver to CAPCO any applicable audit report within thirty (30) days of completion of the audit report. The SUBCONTRACTOR is responsible for including the Single Audit requirements in all subagreements and shall be responsible for insuring adherence to those requirements by all subgrantees and subcontractors. CAPCO FY2004 Solid Waste Interlocal Contract 27 CAPCO reserves the right to conduct or cause to be conducted an independent audit of all funds received under this Contract which may be performed by the local government audit staff, a certified public accountant firm, or other auditors as designated by CAPCO, at CAPCO's expense. Such audit will be conducted in accordance with applicable professional standards and practices. SUBCONTRACTOR understands and agrees that the SUBCONTRACTOR shall be liable to CAPCO for any costs disallowed as a result of audit. Article 9: Amendments to Contract Any alterations, additions, or deletions to the terms of this Contract which are required by changes in Federal Law or Regulations are automatically incorporated into this Contract without written amendment hereto, and shall become effective on the date designated by such law or regulation, provided if the SUBCONTRACTOR may not legally comply with such change, SUBCONTRACTOR may terminate its participation herein as authorized by Article 10. CAPCO may, from time to time, require changes in the Scope of the Services of the SUBCONTRACTOR to be performed hereunder. Such changes that are mutually agreed upon by and between CAPCO and the SUBCONTRACTOR in writing shall be incorporated into this Contract. Any changes in personnel whose salaries are funded under this Contract or any other Contract amendments, including increasing or decreasing the amount of total funding, altering budget category allocations, extending or shortening the term of the agreement, or making significant changes in the scope of work, schedule or deliverables, must be approved in advance by CAPCO. A detailed description of the proposed change(s) shall be submitted in writing by the SUBCONTRACTOR to CAPCO for approval. Authorization to amend the Contract will be documented in writing and copies of the authorization retained in the files of both CAPCO and SUBCONTRACTOR. Article 10: Termination of Contract for Convenience a) CAPCO may terminate this Contract in whole or part for its convenience. CAPCO terminates this Contract for convenience by giving SUBCONTRACTOR at least 30 calendar days notice of the termination, specifying the termination date, and describing the part or arts terminated. b) Upon receipt of the termination notice, SUBCONTRACTOR agrees to stop work on or before the termination date, cancel all subcontracts and orders entered into under this Contract, and settle all claims resulting from cancellation of the subcontracts and orders. If CAPCO terminates only part of the Contract, Contractor agrees to complete the un- terminated part if CAPCO so requests. c) At CAPCO's request, following termination of the Contract for convenience, SUBCONTRACTOR agrees to transfer title and deliver to CAPCO, at CAPCO's expense, all work produced in performing this Contract. SUBCONTRACTOR agrees to preserve and protect the work until it is delivered to CAPCO. CAPCO FY2004 Solid Waste Interlocal Contract 28 d) SUBCONTRACTOR agrees to submit to CAPCO a written termination c:aim itemizing and documenting the amounts due because of termination of the Contract. If Contractor does not submit the termination claim within 90 calendar days from the effective date of termination, SUBCONTRACTOR's termination claim is barred. e) If SUBCONTRACTOR's termination claim is timely submitted, complete, and correct, CAPCO agrees to pay SUBCONTRACTOR the following amounts in full settlement of SUBCONTRACTOR's termination claim: (1) the reasonable cost of all work performed through the date of termination; and (2) the reasonable cost of settling and paying claims resulting from cancellation of subcontracts and orders. However, CAPCO's total payment under this paragraph may not exceed the total Contract price, less amounts already paid SUBCONTRACTOR under this Contract, any lawful offsets, and the Contract price for any work not terminated. Article 11: Suspension or Termination of Contract for Unavailability of Funds a) SUBCONTRACTOR acknowledges that CAPCO is a governmental entity without taxing power and that its only source for paying SUBCONTRACTOR under this Contract is the Municipal Solid Waste Disposal and Transportation Revenue Fee administered by TCEQ under Contract with CAPCO. If TCEQ suspends or terminates its Contract with CAPCO, SUBCONTRACTOR agrees that CAPCO may suspend its payment obligations under or terminate this Contract in whole or part if CAPCO learns that funds to pay for all or part of the goods or services will not be available at the time of delivery or performance. If CAPCO suspends or terminates only part of this Contract for unavailability of funds, SUBCONTRACTOR agrees to perform the unsuspended or unterminated part if CAPCO so requests. b) CAPCO suspends or terminates this Contract for unavailability of funds by giving SUBCONTRACTOR notice of the suspension or termination, as soon as it learns of the funding unavailability, specifying the suspension or termination date, and describing the part or parts suspended or terminated. CAPCO agrees to promptly return to SUBCONTRACTOR at CAPCO's expense any goods Contractor shipped to CAPCO before receiving notice of suspension or termination. c) If this Contract is terminated for unavailability of funds under this Article 11, SUBCONTRACTOR is entitled to compensation for goods it furnished and services it performed before it received notice of termination. However, CAPCO is not liable to SUBCONTRACTOR for costs it paid or incurred under this Contract after or in anticipation of its receipt of notice of termination. Article 12: Termination for Breach of Contract (a). If CAPCO or SUBCONTRACTOR breaches a material provision of this Contract, the other may notify the breaching party describing the breach and demanding corrective action. The breaching party has five business days from its receipt of the notice to correct the breach, or to begin and continue with reasonable diligence and in good faith to correct the breach. If the breach cannot be corrected within a reasonable time, despite the breaching party's reasonable diligence and good faith effort to do so, either party may terminate the Contract for breach by notifying the other party of the CAPCO FY2004 Solid Waste Interlocal Contract 29 termination date, which may be no sooner than 10 calendar days from the notice date, or either party may invoke the dispute resolution process of Article 18. (b). If this Contract is terminated for breach under Subsection (a), Contractor is entitled to compensation for services it performed and goods it provided before it received notice of termination. However, CAPCO is not liable to Contractor for costs it paid or incurred under this Contract after or in anticipation of its receipt of notice of termination. (c). Termination for breach under Subsection (a) does not waive CAPCO's claim for damages resulting from the breach, and CAPCO among other remedies may withhold from compensation owed Contractor an amount necessary to satisfy CAPCO's claim. Article 13: Severability All parties agree that should any provision of this Contract be determined to be invalid or unenforceable, such determination shall not affect any other term of this Contract, which shall continue in full force and effect. Article 14: Data and Publicity All data and other information developed under this Contract shall be furnished to CAPCO and shall be public data and information except to the extent that it is exempted from public access by the Texas Open Records/Public Information Act, TEX. GOV'T CODE Chapter 552. Upon termination of this Contract, all data and information shall become the joint property of CAPCO and the SUBCONTRACTOR. Article 15: Intellectual Property (a). For the purpose of this Article, "intellectual property" refers to 1) any discovery or invention for which patent rights may be acquired, and 2) any photographs, graphic designs, plans, drawings, specifications, computer programs, technical reports, operating manuals, or other copyrightable materials, and 3) any other materials in which intellectual property rights may be obtained. (b). If the SUBCONTRACTOR conceives of, actually puts into practice, discovers, invents or produces any intellectual property during the course of its work under this Contract, it shall report that fact to CAPCO. (c). The SUBCONTRACTOR may obtain governmental protection for rights in the intellectual property. However, CAPCO and TCEQ hereby reserve a nonexclusive, royalty -free and irrevocable license to use, publish, or reproduce the intellectual property for sale or otherwise, and to authorize others to do so. CAPCO and TCEQ also reserve a royalty - free nonexclusive, and irrevocable license to use, publish, or reproduce for sale or otherwise, and to authorize others to use, publish, or reproduce, for sale or otherwise (to the extent consistent with the rights of third parties) any intellectual property for which the SUBCONTRACTOR obtains rights with funds received under this Contract. CAPCO FY2004 Solid Waste Interlocal Contract 30 (d). In performing work under this Contract, the SUBCONTRACTOR shall comply with all laws, rules, and regulations relating to intellectual property, and shall not infringe on any third party's intellectual property rights. It shall hold CAPCO and the TCEQ harmless for, and to the extent permitted by the laws and Constitution of the State of Texas, defend and indemnify CAPCO against, any claims for infringement related to its work under this Contract. Article 16: Energy Efficiency Standards The SUBCONTRACTOR is encouraged to follow standards and policies on energy efficiency which are contained in the Texas State Energy Conservation Plan issued in compliance with the Energy Policy and Conservation Act (P.L. 94-163). Article 17: Identification of Funding Sources The SUBCONTRACTOR shall acknowledge the financial support of the TCEQ and CAPCO whenever work funded, in whole or part, by this Contract is publicized or reported in news media or publications. All reports and other documents completed as a part of this Contract, other than documents prepared exclusively for internal use within CAPCO, shall carry the following notation on the front cover or title page: FINANCED WITH FUNDS FROM THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY (TCEQ) THROUGH THE CAPITAL AREA PLANNING COUNCIL (CAPCO) Article 18: Dispute Resolution (a). The parties desire to resolve disputes arising under this Contract without litigation. Accordingly, if a dispute arises, the parties agree to attempt in good faith to resolve the dispute between themselves. To this end, the parties agree not to sue one another, except to enforce compliance with this Article 18, until they have exhausted the procedures set out in these subsections. (b). At the written request of either party, each party shall appoint one non -lawyer representative to negotiate informally and in good faith to resolve any dispute arising under this Contract. The representatives appointed shall determine the location, format, frequency, and duration of the negotiations. (c). If the representatives cannot resolve the dispute within 30 calendar days after the first negotiation meeting, the parties agree to refer the dispute to the Dispute Resolution Center of Austin for mediation in accordance with the Center's mediation procedures by a single mediator assigned by the Center. Each party shall pay half the cost of the Center's mediation services. (d). The parties agree to continue performing their duties under this Contract, which are unaffected by the dispute, during the negotiation and mediation process. CAPCO FY2004 Solid Waste Interlocal Contract 31 Article 19: Oral and Written Contracts All oral or written agreements between the parties hereto relating to the subject matter of this Contract which were developed and executed prior to the execution of this Contract have been reduced to writing and are contained herein. Article 20: Nondiscrimination and Equal Opportunity (a). Subsection (b) summarizes the nondiscrimination requirements applicable to SUBCONTRACTOR's performance under this Contract that are set out in detail in title 41, chapter 60, and title 28, parts 35 and 36, Code of Federal Regulations. The SUBCONTRACTOR agrees to comply with the detailed requirements. (b). SUBCONTRACTOR shall not exclude anyone from participating under this Contract, deny anyone benefits under this Contract, or otherwise unlawfully discriminate against anyone in carrying out this Contract because of race, color, religion, sex, age, disability, handicap, or national origin. Article 21: Utilization of Small, Minority, and Women's Business Enterprises (a). A Historically Underutilized Business (HUB) is a Corporation, Sole Proprietorship, Partnership, or Joint Venture in which as least 51 percent is owned, operated, controlled and actively managed by a person or persons who are historically underutilized (socially disadvantaged) because of their identification with members of certain groups, including Black Americans, Hispanic Americans, Asian Pacific Americans, Native Americans (American Indians) and Women who suffered the effects of discriminatory practices or similar insidious circumstances over which they have no control. (b). The SUBCONTRACTOR agrees that qualified Historically Underutilized Businesses (HUBs) shall have the maximum practicable opportunity to participate in the performance of this Contract. Article 22: Force Majeure (a). Subject to the requirements of Subsections (b) and (c) and the limitation of Subsection (d), a party's obligations under this Contract are suspended during any period the party is unable to perform its obligations because of work stoppage or strike resulting from a labor dispute; fire, flood, wind, earthquake, or other natural disaster; epidemic, riot, sabotage, rebellion, or war; governmental intervention; or other cause beyond the party's control. (b). Subsection (a) does not apply unless the party invoking it notifies the other party of the force majeure event within five business days after it occurs, describing the nature of the event in detail and estimating its likely duration. The party invoking Subsection (a) has the burden of proving that the force majeure event exists. CAPCO FY2004 Solid Waste Interlocal Contract 32 (c). If the other party is reasonably satisfied that the force majeure event exists, it shall notify the invoking party that the obligations of this Contract are suspended from the effective date of the event throughout its duration. The party invoking Subsection (a) shall notify the other party within five business days after the force majeure event ends. When the force majeure event ends, the obligations of this Contract are reinstated for the remainder of the Contract's term. (d). If the obligations of this Contract are suspended because of a force majeure event for a cumulative period of more than 30 calendar days, either party may terminate this Contract in whole or part for convenience under Article 10. Article 23: Conflict of Interest (a). SUBCONTRACTOR agrees to comply with its internal policy prohibiting conflict of interest and with Chapter 171 of the TEX. LOCAL GOVT. CODE ANN. in carrying out this Contract. (b). If SUBCONTRACTOR learns that one of its governing body members, officers, employees, or agents has violated or may violate its internal policy or Chapter 171, SUBCONTRACTOR agrees promptly to take corrective and appropriate disciplinary action and to notify CAPCO in writing of the actual or potential violation and the corrective and disciplinary action taken. Article 24: Miscellaneous (a). All representations and warranties of SUBCONTRACTOR, together with all continuing obligations described in this Contract, survive the ending or early termination of this Contract. (b). This Contract states the entire agreement of the parties, and an amendment to it is not effective unless in writing and signed by both parties. (c). This Contract is binding on and inures to the benefit of the parties' successors in interest. (d). This Contract is performable in Travis County, Texas, and Texas law governs the interpretation and application of this Contract. (e). This Contract is executed in duplicate originals. CAPCO FY2004 Solid Waste Interlocal Contract 33