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HomeMy WebLinkAboutReso 91-320 - Approve & Authorize the mayor to sign the CH2M Hill Standard agreement for Professional services between the COR & CH2M Hill Ca, Inc for Engineering Services on Pump Station No. 5 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND AUTHORIZING THE MAYOR TO SIGN THE CH2M HILL STANDARD AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF REDDING AND CH2M HILL CALIFORNIA, INC. FOR ENGINEERING SERVICES ON PUMP STATION NO. 5, AT A FIXED PRICE OF $67,200. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1 . That the City Council of the City of Redding hereby approves the CH2M Hill Standard Agreement for Professional Services for Pump Station No. 5 engineering services, for a fixed price of $67, 200. 00, a true copy of which is attached hereto and incorporated herein by reference. 2 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Agreement on behalf of the City of Redding; and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding thereto. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 6th_ day of August , 1991, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Arness,' Buffum, Fulton.. & Moss. NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Dahl ABSTAIN: COUNCIL MEMBERS: None L V Charlie Moss, Vice Mayor City of Redding i ATTEST: FORMPROVED. ETHEL A. NICHOLS, City Clerk RA DALL A. HAYS" 'City Attorney C112M HILL STANDARD AGREEMENT FOR PROFESSIONAL SERVICES This AGREEMENT is between CH2M HILL CALIFORNIA, INC. (the "ENGINEER") and CITY OF REDDING (the "OWNER") for a PROJECT generally described as: Pump Station No. 5 ARTICLE 1--SCOPE OF SERVICES The Scope of Services is set forth in Attachment A. ARTICLES 2 & 3--COMPENSATION AND TERMS OF PAYMENT ENGINEER's compensation and terms of payment are set forth in Attachment B. ARTICLE 4--OBLIGATIONS OF THE ENGINEER Amendments to ARTICLE 4, if any, are included in Attachment C. A. STANDARD OF CARE The standard of care applicable to ENGINEER's services will be the degree of skill and diligence normally employed by professional engineers or consultants performing the same or similar services. The ENGINEER will reperform any services not meeting this standard without additional compensation. B. SUBSURFACE INVESTIGATIONS In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, explorations, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total PROJECT cost and/or execution. These conditions and cost/execution effects are not the responsibility of the ENGINEER. RDD/R42M8.51 1 C. ENGINEER'S PERSONNEL AT CONSTRUCTION SITE The presence or duties of the ENGINEER's personnel at a construction site, whether as onsite representatives or otherwise, do not make the ENGINEER or its personnel in any way responsible for those duties that belong to the OWNER and/or the con- struction contractors or other entities, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work in accordance with the Contract Documents and any health or safety precautions required by such construction work. The ENGINEER and its personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions and have no duty for inspecting, noting, observing, correcting, or reporting on health or safety deficiencies of the construction contractor or other entity or any other persons at the site except ENGINEER's own personnel. D. OPINIONS OF COST, FINANCIAL CONSIDERATIONS, AND SCHEDULES In providing opinions of costs, financial analyses, economic feasibility projections, and schedules for the PROJECT, the ENGINEER has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by third parties; quality, type, management, or direction of operating personnel; and other economic and operational factors that may materially affect the ultimate PROJECT cost or schedule. Therefore, the ENGINEER makes no warranty that the OWNER'S actual PROJECT costs, financial aspects, economic feasibility or schedules will not vary from the ENGINEER's opinions, analyses, projections, or estimates. When the OWNER requires the ENGINEER to prepare quantity and material take-offs and/or opinions of cost from plans and specifications that are less than 100 percent complete, the OWNER will hold the ENGINEER harmless from any and all loss, liability, or claims resulting from the incompleteness. E. CONSTRUCTION PROGRESS PAYMENTS Recommendations by the ENGINEER to the OWNER for periodic construction progress payments to the construction contractor will be based on the ENGINEER's knowledge, information, and belief from selective sampling that the work has pro- gressed to the point indicated. Such recommendations do not represent that continuous or detailed examinations have been made by the ENGINEER to ascertain that the construction contractor has completed the work in exact accordance with the contract documents; that the final work will be acceptable in all respects; that the ENGINEER has made an examination to ascertain how or for what purpose the construction contractor has used the moneys paid; that title to any of the work, materials, or equipment has passed to OWNER free and clear of liens, claims, security RDD/R42/008.51 2 interests, or encumbrances; or, that there are not other matters at issue between OWNER and the construction contractor that affect the amount that should be paid. F. RECORD DRAWINGS Record drawings, if required, will be prepared, in part, on the basis of information compiled and furnished by others, and may not always represent the exact location, type of various components, or exact manner in which the PROJECT was finally constructed. The ENGINEER is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. G. MINORITY- AND WOMEN-OWNED BUSINESS; OWNER-SPECIFIED SUBCONTRACTORS ENGINEER will comply with OWNER's directives in utilizing the services of OWNER- SPECIFIED subcontractors and/or minority- and women-owned businesses on the PROJECT. Firms selected by the ENGINEER to meet said directives will be subject to approval of the OWNER. ENGINEER's liability arising from the work of said subcontractors or businesses is limited to proceeds available from their insurance. H. ACCESS TO ENGINEER'S ACCOUNTING RECORDS The ENGINEER will maintain accounting records, in accordance with generally accepted accounting principles and practices, to substantiate all invoiced amounts. Said records will be available to OWNER during ENGINEER's normal business hours for a period of 1 year after ENGINEER's final invoice for examination to the extent required to verify the direct costs (excluding established or standard allowances and rates) incurred hereunder. The OWNER may only audit accounting records applicable to a cost-reimbursable type compensation. L. ENGINEER'S INSURANCE The ENGINEER will maintain throughout this AGREEMENT the following insurance: a. Worker's compensation and employer's liability insurance as required by the state or province where the work is performed. b. Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from use of motor vehicles, including onsite and offsite operations, and owned, nonowned, or hired vehicles, with $1,000,000 combined single limits. RDD/R42/008.51 3 C. Commercial general liability insurance covering claims for injuries to members of the public or damage to property of others arising out of any covered negligent act or omission of the ENGINEER or of any of its employees, agents, or subcontractors, with $1,000,000 combined single limits, and $2,000,000 general aggregate limit. d. Professional liability insurance of $250,000. e. OWNER will be named as an additional insured with respect to ENGINEER's liabilities hereunder in insurance coverages identified in Items "b" and "c", and ENGINEER waives subrogation against OWNER as to said policies. ARTICLE 5--OBLIGATIONS OF THE OWNER Amendments to Article 5, if any, are included in Attachment C. A. OWNER-FURNISHED DATA The OWNER will provide to the ENGINEER all technical data in the OWNER's possession, including, but not limited to, previous reports, maps, surveys, borings, and all other information relating to the ENGINEER's services on the PROJECT. ENGINEER will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by the OWNER. B. ACCESS TO FACILITIES AND PROPERTY The OWNER will make its facilities accessible to ENGINEER as required for ENGINEER's performance of its services and will provide labor and safety equipment as required by ENGINEER for such access. OWNER will perform at no cost to ENGINEER such test of equipment, machinery, pipelines, and other components to the OWNER's facilities as may be required in connection with ENGINEER's services, unless otherwise agreed to. OWNER will be responsible for all acts of OWNER's personnel. C. ADVERTISEMENTS, PERMITS, AND ACCESS Unless otherwise agreed to in the Scope of Services, the OWNER will obtain, arrange, and pay for all advertisements for bids; permits and licenses required by local, state, province, or federal authorities; and land, easements, rights-of-way, and access necessary for the ENGINEER's services or PROJECT construction. RDD/R42/008.51 4 D. TIMELY REVIEW The OWNER will examine the ENGINEER's studies, reports, sketches, drawings, specifications, proposals, and other documents; obtain advice of any attorney, insurance counselor, accountant, auditor, and other consultants as OWNER deems appropriate; and render in writing decisions required of OWNER in a timely manner. E. PROMPT NOTICE The OWNER will give prompt written notice to ENGINEER whenever OWNER observes or becomes aware of any development that affects the scope of timing of ENGINEER's services, or any defect in the work of the ENGINEER or construction contractors. F. ASBESTOS OR HAZARDOUS SUBSTANCES AND INDEMNIFICATION If asbestos or hazardous substances in any form are encountered or suspected, the ENGINEER will stop its own work in the affected portions of the PROJECT to permit testing and evaluation of the problem. If asbestos is suspected, the ENGINEER will, if requested, assist the OWNER in contacting regulatory agencies and in identifying asbestos testing laboratories and demolition/removal contractors or consultants. If asbestos is confirmed, the OWNER will engage a specialty consultant or contractor to study the affected portions of the work and perform all remedial measures. If hazardous substances other than asbestos are suspected, the ENGINEER will conduct tests to determine the extent of the problem and will perform the necessary studies and recommend the necessary remedial measures at an additional fee to be negotiated. G. CONTRACTOR INDEMNIFICATION OWNER agrees to include the provisions of ARTICLE 4C, ENGINEER'S PERSONNEL AT CONSTRUCTION SITE, and the following paragraph in all con- struction contracts associated with this PROJECT: To the maximum extent permitted by law, the construction contractor will indemnify and defend OWNER and ENGINEER and their officers, employees, agents, and subcontractors, from all claims and losses, including attorney's fees and litigation costs, arising out of property losses or health, safety, personal injury, or death claims by construction contractors, their subcontractors of any tier, and their employees, agents, or invitees regardless of the fault, breach of contract, or negligence of OWNER or ENGINEER, excepting only such claims or losses that have been adjudicated to have been caused solely by the negligence of OWNER or ENGINEER and regardless of whether or not the construction contractor is or can be named a party in a litigation. The construction contractor will carry comprehensive general liability insurance RDD/R42/008.51 5 naming OWNER and ENGINEER as additional insureds and including a contractual liability clause or endorsement covering the construction contractor's indemnity of OWNER and ENGINEER, and will provide OWNER and ENGINEER with a certificate of insurance showing compliance with the requirements of this paragraph prior to commencement of work. H. EXCLUSION OF CONTRACTOR CLAIMS OWNER agrees to include in all contracts with construction contractors and equipment or material suppliers an exclusion of those parties' right to make direct claims against the ENGINEER in the following form: In performing its obligations for the OWNER, the ENGINEER and its consultants may cause expense for the contractor or its subcontractors and equipment or material suppliers. However, those parties and their sureties shall maintain no direct action against the ENGINEER, its officers, employees, agents, and subcontractors, for any claim arising out of, in connection with, or resulting from the engineering services performed or required to be performed. Only the OWNER will be the beneficiary of any undertaking by the ENGINEER, its officers, employees, agents, and subcontractors. I. OWNER'S INSURANCE a. OWNER will endeavor to provide for a waiver of subrogation as to all OWNER-carried insurance, during construction and thereafter, in favor of ENGINEER, its officers, employees, agents, and subcontractors, and will endeavor to obtain similar waivers from OWNER's other contractors and their lower tier subcontractors. OWNER will provide ENGINEER copies of such waivers. b. OWNER will have the construction contractor provide a Builders Risk.All Risk insurance policy for the full replacement value of all physical facilities associated with the ENGINEER's services. Such policy will include coverage for defects in materials and workmanship and errors in design, and will provide a waiver of subrogation as to the ENGINEER and the construction contractors (or OWNER), and their respective officers, employees, agents, and subcontractors. OWNER will provide ENGINEER a copy of such policy. J. LITIGATION ASSISTANCE The Scope of Services does not include cost of the ENGINEER for required or requested assistance to support, prepare, document, bring, defend, or assist in litigation undertaken or defended by the OWNER. All such services required or requested of the ENGINEER, except for suits or claims between the parties to this AGREEMENT, RDD/R42/008.51 6 will be reimbursed as mutually agreed, and payment for such services shall be in accordance with ARTICLE 3, unless and until there is a finding by a court or arbitrator that ENGINEER's sole negligence caused OWNER's damage. K. CHANGES The OWNER may make or approve changes within the general scope of services in this AGREEMENT. If such changes affect the ENGINEER's cost of or time required for performance of the services, an equitable adjustment will be made through a written amendment to this AGREEMENT. L. SERVICES OF ENGINEER Unless this AGREEMENT is modified or terminated, the OWNER will have all services specified in this AGREEMENT performed by the ENGINEER, employing ENGINEER's standard form and content of drawings, specifications, and contract documents. Any item in the nature of maps, drawings, specifications, etc., which are provided to OWNER under this AGREEMENT shall become the property of OWNER. ARTICLE 6--GENERAL LEGAL PROVISIONS Amendments to Article 6, if any, are included in Attachment C. A. AUTHORIZATION TO PROCEED Execution of this AGREEMENT by the CLIENT will be authorized by CH2M HILL to proceed with the work, unless otherwise provided for in this AGREEMENT. B. REUSE OF PROJECT DOCUMENTS All designs, drawings, specifications, documents, and other work products of the ENGINEER are instruments of service for this PROJECT, whether the PROJECT is completed or not. Reuse by the OWNER or by others acting through or on behalf of the OWNER of any such instruments of service without the written permission of the ENGINEER will be at the OWNER's sole risk. The OWNER agrees to indemnify and defend the ENGINEER from all claims, damages, losses, and expenses, including, but not limited to, direct, indirect, or consequential damages and attorney's fees arising out of or related to such unauthorized reuse. RDD/R42M8.51 7 C. FORCE MAJEURE The ENGINEER is not responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of the ENGINEER. D. TERMINATION This AGREEMENT may be terminated for convenience on 30 days' written notice, or for cause if either party fails substantially to perform through no fault of the other and does not commence correction of such nonperformance within 5 days of written notice and diligently complete the correction thereafter. On termination, the ENGINEER will be paid for all authorized work performed up to the termination date plus termination expenses, such as, but not limited to, reassignment of personnel, subcontract termination costs, and related closeout costs. On termination, ENGINEER shall turn over to OWNER all items of work for which they have received payment that are in the nature of, but not limited to, maps, draw- ings, calculations, etc. E. SUSPENSION, DELAY, OR INTERRUPTION OF WORK The OWNER may suspend, delay, or interrupt the services of the ENGINEER for the convenience of the OWNER. In the event of force majeure or such suspension, delay, or interruption, an equitable adjustment in the PROJECT's schedule, commitment, and cost of ENGINEER's personnel and subcontractors, and ENGINEER's compensation will be made. F. NO THIRD PARTY BENEFICIARIES This AGREEMENT gives no rights or benefits to anyone other than the OWNER and ENGINEER and has no third-party beneficiaries. G. INDEMNIFICATION a. ENGINEER agrees to indemnify and defend OWNER from any loss, cost, or expense claimed by third parties for property damage and bodily injury, including death, caused solely by the negligence or willful misconduct of ENGINEER, its employees, or agents in connection with the PROJECT. b. OWNER agrees to indemnify and defend ENGINEER from any loss, cost, or expense claimed by third parties for property damage and bodily injury, including death, caused solely by the negligence or willful misconduct of OWNER, its employees, or agents in connection with the PROJECT. RDD/R42/008.51 8 C. If the negligence or willful misconduct of both the ENGINEER and OWNER (or a person identified above for whom each is liable) is a cause of such damage or injury, the loss, cost, or expense shall be shared between ENGINEER and OWNER in proportion to their relative degrees of negligence or willful misconduct, and the right of indemnity shall apply for such proportion. H. ASSIGNMENT Neither party will assign all or any part of this AGREEMENT without the prior written consent of the other party. I. LEGAL ACTION All legal actions by either party against the other arising from this AGREEMENT, or for the failure to perform in accordance with the applicable standard of care, or any other cause of action, will be barred 2 years from the date the claimant knew or should have known of its claim, but in any event no later than 4 years from the date of substantial completion of ENGINEER's services. J. INTERPRETATION Releases from, indemnities against, limitations on, and assumptions of liability and limitations on remedies_ expressed in this AGREEMENT shall apply even in the event of breach of contract or warranty, fault, tort including negligence, strict liability, statu- tory, or any other cause of action (except for willful or reckless disregard of obligations) of the party released or indemnified, or whose liability is limited or assumed, or against whom remedies are limited. Party, as used herein, includes the named parties, their officers, employees, agents, subcontractors, and affiliates. K. JURISDICTION The law of the State of California shall govern the validity of this AGREEMENT, its interpretation and performance, and any other claims related to it. L. SEVERABILITY AND SURVIVAL If any of the provisions contained in this AGREEMENT are held for any reason to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision, and this AGREEMENT shall be construed as if such invalid, illegal, or unenforceable provision had never been con- tained herein. Articles 4, 5, and 6 shall survive termination of this AGREEMENT for any cause. RDD/R42/008.51 9 ARTICLE 7--ATTACHMENTS, SCHEDULES, AND SIGNATURES This AGREEMENT, including its Attachments and Schedules, constitutes the entire AGREEMENT, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. The following Attachments and Schedules are hereby made a part of this AGREEMENT: Attachment A--Scope of Services Attachment B--Compensation and Terms of Payment IN WITNESS WHEREOF, the parties execute below: For the OWNER, CITY OF REDDING dated this day of 19 By: Name Title ATTESTED By: Name Title FORM APPROVED By: Name Title For the ENGINEER, CH2M HILL CALIFORNIA , INC., dated this 30th day of July 19 91. By: Vice President Name Title RDD/R42/008.51 10 ATTACHMENT A Attachment A to the AGREEMENT between CH2M HILL CALIFORNIA, INC., (the "ENGINEER"), and CITY OF REDDING, (the "OWNER"), for a PROJECT generally described as: Pump Station No. 5 ARTICLE 1--SCOPE OF SERVICES ENGINEER agrees to furnish OWNER the following engineering services which are defined into the four following tasks: • Task I--Preliminary Design • Task II--Preparation of Contract Documents • Task III--Assistance During the Bidding Period • Task IV--Services During Construction The OWNER has a separate contract with Electrical and Control System Engineering, Inc., (E&C) to provide electrical, and instrumentation and control design for the PROJECT. ENGINEER will coordinate his design with E&C. TASK I--PRELIMINARY DESIGN Review design parameters developed by OWNER at a kickoff meeting and develop final design criteria for building and pump operation. Prepare preliminary sketches showing pump station floor plan, piping layout, site plan, and architectural elevations based on OWNER's design criteria and the existing Pump Station No. 4. Perform preliminary pump selection based on OWNER's design criteria. Submit preliminary sketches, cost estimate, and tentative drawing list to OWNER as completion of preliminary design task. Attend meeting with OWNER to review design criteria, sketches, and cost estimate. Perform geotechnical investigation at the pump station site and recommend allowable foundation bearing pressures, pavement design, and identify expansive soil (if present). The fee for this geotechnical investigation assumes that only two test pits will be required. Perform topographical survey (if required) to verify OWNER's elevations and profile information. TASK II--PREPARATION OF CONTRACT DOCUMENTS Prepare Construction Contract Documents including proposal forms, notice to bidders, general and special conditions, bond forms, technical specifications, and drawings RDD/R42/010.51 A-1 customarily made available for bidding and construction of this type of project. The Contract Documents will be prepared based on the design criteria developed and reviewed with the OWNER in Task I Preliminary Design. ENGINEER shall include a statement within the Contract Documents that CONTRACTOR shall be solely and completely responsible for conditions of the jobsite, including safety of all persons, including employees and property. Perform utility investigation of waterline alignment and pump station site. Compile and submit four copies of design packages for OWNER's review at approxi- mately the 50 and 90 percent stages of design completion. Attend meeting with OWNER to review 50 and 90 percent submittal. Print 50 sets of approved, 100 percent Contract Documents for bidding. Include drawings and specifications provided by E&C with ENGINEER's contract drawings. Prepare an opinion of construction cost based on the 50 percent review submittal and the 100 percent Contract Documents. Provide mylars and electronic files of 100 percent drawings. Electronic files will be on 3-1/2-inch diskettes in AutoCAD Release 10 or 11, or DXF format, and will include all shape, font, or external reference libraries. Provide 100 percent specifications on reproducible 8-1/2-inch by 11-inch paper and on electronic file. Electronic files will be on 3-1/2-inch diskette in WORDPERFECT 5.1 format. TASK III--ASSISTANCE DURING THE BIDDING PERIOD Respond to bidders' questions during the advertisement period. Attend one prebid conference with the OWNER and potential bidders. Prepare and distribute all ENGINEER-generated addenda. Evaluate bids and make a recommendation to the OWNER regarding award of the construction contract. Evaluation shall consist of examining bids for irregularities and ranking the bidders according to price of bid. Engineering services that may be required in event of a bid protest are not included in this Scope of Services. TASK IV--SERVICES DURING CONSTRUCTION Attend a preconstruction conference with the OWNER and CONTRACTOR. RDD/R42/010.51 A-2 Review equipment submittals from the CONTRACTOR. ENGINEER will review and return submittals to the OWNER within 14 calendar days of their receipt. Assist OWNER with final inspection, operational testing, and startup of pump station mechanical equipment for a period not to exceed an aggregate total of five (5) person- days. Prepare Operations Manual and submit ten (10) copies to the OWNER prior to startup. The operations manual will explain the various modes of operation that may be possible, including both normal and emergency operation procedures. Equipment maintenance manuals for the project will be provided by the construction contractor in accordance with the General Requirements of the construction specifications. Prepare one (1) complete set of reproducible record drawings for the work as it is finally constructed, using information supplied by the CONTRACTOR and OWNER's field personnel. The OWNER shall be responsible for the accuracy of the information furnished the ENGINEER for incorporating into the record drawings. If technical assistance by the ENGINEER is required by the OWNER, the ENGINEER will be compensated for that work under a contract amendment. TIME OF PERFORMANCE ENGINEER shall submit the 100 percent Contract Documents to the OWNER by January 1, 1992, if Notice to Proceed is received by August 16, 1991. Otherwise, ENGINEER shall submit the 100 percent Contract Documents to the OWNER within 135 calendar days of Notice to Proceed. Either schedule includes a total of twenty one (21) calendar days for review by the OWNER. Scope of Services do not include: 1. Surge and hydraulic analysis of the Hilltop-Dana pressure zone piping system. 2. Demolition documents for the existing Pump Station No. 5 at Canby Road. 3. Design of pump station electrical and instrumentation and control systems. 4. Coordination of electrical power supply with the City of Redding Electric Department. 5. Bid advertisement, issue of Contract Documents, and bid opening coordination. All bidding issues or questions relating to the electrical and instrumentation and control design shall be directed to E&C. E&C will prepare any addendum items relating to their design. RDD/R42/010.51 A-3 w w 6. Contract administration during construction which includes field inspection, testing (except operational testing), change orders, and progress payments. This ATTACHMENT A supersedes all prior written or oral understandings of the Scope of Services and may only be changed by a written amendment executed by both parties. RDD/R42/010.51 A-4 ATTACHMENT B Attachment B to the AGREEMENT between CH2M HILL CALIFORNIA INC., (the "ENGINEER"), and CITY OF REDDING, (the "OWNER"), for a PROJECT generally described as: Pump Station No. 5 ARTICLE 2--COMPENSATION Compensation by the OWNER to the ENGINEER will be as follows: LUMP SUM For services enumerated in ARTICLE 1 for the respective tasks, the lump sum amounts are: Task I Preliminary Design Thirteen thousand six hundred dollars ($13,600) Task II Preparation of Contract Thirty-three thousand four Documents hundred dollars ($33,400) Task III Assistance During the Four thousand seven hundred Bidding Period dollars ($4,700) Task IV Services During Fifteen thousand five hundred Construction dollars ($15,500) The lump sum fees listed above are based on the current scope of work. If the scope of work is changed to significantly alter the effort required, the lump sum fee will be renegotiated. ARTICLE 3--TERMS OF PAYMENT Payment is due upon receipt of monthly billing of the amount due based on the ENGINEER's estimate of the value of work accomplished, less previous payments made. RDD/R42=9.51 B-1 Interest at the rate of 1 percent per month will be charged on all past-due accounts, starting 45 days after date of invoice. Payments will first be credited to interest and then to principal. If all work is not completed by the end of 1992, compensation for remaining work will be adjusted to reflect the ENGINEER's 1993 salary increases. This Attachment B supersedes all prior written or oral understandings of the Compensation and may only be changed by a written amendment executed by both parties. RDD/R4ZW9.51 B-2