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HomeMy WebLinkAboutResolution - 6338 - Contract - Fanning Fanning & Associates - HVAC Renovations, LBC - 06_10_1999Resolution No.6338 June 10, 1999 Item No. 19 RESOLUTION r BE IT RESOLVED BY THE CITY COUNCal, OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a contract between the City of Lubbock and A/E services for H.V.A.C. renovations at the Lubbock Business Center, attached herewith, by and between the City of Lubbock and FANNING, FANNING & ASSOCIATES of Lubbock, Texas and any associated documents, which Agreement shall be spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this loth day June 1999. SI YORVo- APPROVED AS TO CONTENT: h, AIA, FacilitiesManager APPROVED AS TO FORM: DV/c:cityatt/AEServices..doc June 2, 1999 Resolution No. 6338 June 10, 1999 Item No. 19 May 20,1999 Mr. Gary Smith Purchasing City of Lubbock Lubbock, Texas 79401 Subject: Engineering Services Business Center Air Condition Renovations Dear Sir: Fanning Fanning and Associates, inc. C o n s u l t i n g E n g i n e e r s 2555 74th Lubbock, TX 79423 806 745-2533 Fanning, Fanning and Associates, Inc. proposes to render professional engineering services to the City of Lubbock, Texas for the subject project. Our Basic Services include preparing the Study and Report, Final Design Documents, Project bidding, Assistance during bidding, evaluating those bids and assisting in Contractor selection, and site visits to assist in your Construction Administration, all as set forth in the printed General Provisions as amended and supplemented in Exhibit A, which are attached to this letter. Our understanding is that the project scope includes the following: 1) Identify and map the location of existing facilities and design services for the Business Center air conditioning renovations according to availability of construction funds. 2) Prepared engineering reports and recommendations for the development of plans and specifications. 3) Prepare contract documents for the work identified above. 4) Provide construction phase services. Design elements shall consist of air conditioning renovations. You are expected to furnish us with full information of your Project requirements, including any special conditions or special services needed. You will pay us for Basic Services in accordance with Exhibit A attached thereto. We will submit statements periodically, which will be due and payable when you receive them. We will furnish Additional Services you authorize. Additional Services will be charged on the basis of our Hourly Rate attached thereto. This proposal, the General Provisions consisting of nine pages and Exhibit A thereto which consists of one page and the Schedule of Compensation (for additional services) represent the Fax 806-7453596 E-mail: fanning@onramp.net • http://rampages.onramp.net/--fanning EXHIBIT A to GENERAL PROVISIONS attached to LETTER AGREEMENT BETWEEN OWNER AND ENGINEER FOR PROFESSIONAL SERVICES. May 21,1999 FURTHER DESCRIPTION OF BASIC ENGINEERING SERVICES AND RELATED MATTERS. 1. Amend Paragraph 1.2 as follows: The Study, and Report Phase I shall be submitted within 45 calendar days following written authorization from OWNER and ENGINEER to proceed with that phase of services. Total fee for this phase shall be $3,120.00 2. Amend Paragraph 1.3 and 1.4 as follows: The PreliminaryDesign Phase and the Final Design Phase shall be combined and submitted within 60 calendar days following written authorization from OWNER and ENGINEER to proceed with that phase of services. Total Lump Sum fee for this phase shall be $21,840.00. 3. Amend Paragraph 1.6 as follows: A. The Construction Phase services shall coincide with the construction contract Total Lump Sum fee for this phase shall be $6,240.00. B. Delete any and all references to Resident Project Engineer. C. Site visits and Reports by ENGINEER will be made weekly during the CONSTRUCTION PHASE. 4. Delete Paragraph 5.7. Arbitration in its entirety. GENERAL PROVISIONS Attached to and made a part of LETTER AGREE- MENT, dated May 21 , 19 99 between City of Lubbock (OWNER) and Fanning. Fanning & Associates. Inc. (ENGINEER) in respect of the Project described therein. SECTION 1- BASIC SERVICES OF ENGINEER 1.1. General. I.I.I. ENGINEER shall perform for OWNER professional enu►eering services in all phases of the Project to which this Agreement applies as hereinafter provided. These services will include serving as OWNER's professional engineering representative for the Project, providing professional engineering consultation and advice and furnishing customary civil, structural, mechanical and electrical engineering services and customary architectural services incidental thereto. 1.2. Study and Report Phase. After written authorization to proceed, ENGINEER shall: 1.2.1. Consult with OWNER to clarify and define OWNER's requirements for the Project and review available data. 1.2.2. Advise OWNER as to the necessity of OWNER's providing or obtaining f -om others data or services of the types described in paragraph 3.2, and assist OWNER in obtaining such data and services. 1.2.3. Identify and analyze requirements of governmental authorization having jurisdiction to approve the design of the Project and participate in consultations with such authorities. 1.2.4. Provide analyses of OWNER's needs, planning surveys, site evaluations and comparative studies of prospective site and solutions. 1.2.5. Provide a general economic analysis of OWNER's requirements applicable to various alternatives. 1.2.6. Prepare a Report containing schematic layouts, sketches and conceptual design criteria with appropriate exhibits to indicate clearly the considerations involved (including applicable requirements of governmental authorities having jurisdiction as aforesaid) and the alternative solutions available to OWNER and setting for The ENGINEER's findings and recomm ndations. This Report will be accompanied by ENGINEER's opinion of probable costs for the Project, including the following which will be separately itemized: Construction Cost, allowance for engineering costs and contingencies, and (on the basis of information furnished by OWNER) allowances for such other items as charges of all other professionals and consultants, for the cost of land and rights way, for compensation for or damages to properties, for interest and financing charges and for other services to be provided by others for OWNER pursuant to paragraph 3.2. The total of all such costs, allowances, etc. are hereinafter called "Total Project Costs." 1.2.7. Furnish five copies of the Study and Report documents and review them in person with OWNER. The duties and responsibilities of ENGINEER during the Study and Report Phase are amended and supplemented as indicated in paragraph 2 of Exhibit A "Further DescriEtions of Basic Engineering Services and Related Matters . 1.3. Preliminary Design Phase. After written authorization to proceed with the Preliminary Design Phase, ENGINEER shall: 1.3.1. In consultation with OWNER and on the basis of the accepted Study and Report documents, determine the general scope, extent and character of the Project. 1.3.2. Prepare Preliminary Design documents consisting of final design criteria, preliminary drawings, outline specifications and written descriptions of the Project. 1.3.3. Advise OWNER if additional data or services of the types described in the first subparagraph of paragraph 3.2 are necessary and assist OWNER in obtaining such data and services. 1.3.4. Based on the information contained in the preliminary design documents, submit a revised opinion of probable Total Project Costs. 1.3.5. Furnish five copies of the above Preliminary Design documents and present and review them in person with OWNER. The duties and responsibilities of ENGINEER during the Preliminary Design Phase are amended and supplemented as indicated in paragraph 3 of Exhibit A "Further Description of Basic Engineering Services and Related Matters . 1.4. Final Design Phase. After written authorization to proceed with the Final Design Phase, ENGINEER shall: 1.4.1. On the basis of the accepted Preliminary Design documents and the revised opinion of probable Total Project Costs, prepare for incorporation it the Contract Documents final drawings to show the general scope, extent and character of the work to be furnished and performed by Contractor(s) (hereinafter called Drawings") and Specifications (which will be prepared in conformance with the sixteen division format of the Construction Specifications Institute). 1.4.2. Provide technical criteria, written descriptions and design data for OWNER's use in filing applications for permits with or obtaining aapppprovals of such governmental authorities as have jurisdiction to approve the design of the Project, and assist OWNER in consultations with appropriate authorities. 1.4.3. Advise OWNER of any adjustments to the latest opinion of probable Total Project Costs caused by changes in general scope, extent or character or design requirements of the Project or Construction Costs. Furnish to OWNER a revised opinion of probable Total Project Costs based on the Drawings and Specifications. 1.4.4. Prepare for review and approval by OWNER, its legal counsel and other advisors contract agreement forms, general conditions and supplementary conditions, and (where appropriate) bid forms, invitations to bid and instructions to bidders (all of which shall be consistent with the forms and pertinent guide sheets prepared by the Engineer's Joint Contract Documents Committee), and assist in the preparation of other related documents. 1.4.5. Furnish five copies of the above documents and of the Drawings and Specifications and present and review them in person with OWNER The duties and responsibilities of ENGINKEK during the Final Design Phase are amended and supplemented as indicated in paragraph 4 of Exhibit A "Further Description of Basic Engineering Services and Related Matters." 1.5. Bidding or Negotiating Phase. After written authorization to proceed with the Bidding or Negotiating Phase, ENGINEER shall: 1.5.1. Assist OWNER in advertising for and obtaining bids or negotiating proposals for each separate prime contract for construction, materials, equipment and services; and, where applicable, maintain a record of prospective bidders to whom Bidding Documents have been issued, attend pre -bid conferences and receive and process deposits for Bidding Documents. 1.5.2. Issue addenda as appropriate to interpret, clarify or expand the Bidding Documents. 1.5.3. Consult with and advise OWNER as to the acceptability of subcontractors, suppliers and other persons and organizations proposed by the prime contractor(s) (herein called "Contractor(s)") for those portions of the work as to which such acceptability is required by the Bidding Documents. 1.5.4. Consult with OWNER concerning and determine the ptability of substitute materials and equipment propaas�ed by Contractor(s) when substitution prior to the award of contracts is allowed by the Bidding Documents. 1.5.5. Attend the bid opening, prepare bid tabulation sheets and assist OWNER in evaluating bids or proposals and in assembling and awarding contracts for construction, materials, equipment and services. The duties and responsibilities of ENGINEER during the Bidding or Negotiating Phase are amended and supplemented as indicated isparagraph 5 of Exhibit A "Further Description of BasicEngincering Services and Related Matters . U. Construction Phase. During the Construction Phase: 1.6.1. General Administration of Construction Contract. ENGINEER shall consult with and advise OWNER and act as OWNMVs representative as provided in Articles I though 17, inclusive, of the Standard General Conditions of the Construction Contract, No. 1910-8 (1983 edition) of the Engineers' Joint Contract Documents Committee. The extent and limitations of the duties, responsibilities and authority of ENGINEER as assigned in said Standard General Conditions shall not be modified, except to the extent provided in paragraph 6 of Exhibit A "Further Description of Basic Engineering Services and Related Matters" and except as ENGH41M may otherwise agree in writing All of OWNER's instruction to Contractor(s) will be issued through ENGINEER who will have authority to action behalf of OWNER to the extent provided in said Standard General Conditions except as otherwise provided in writing. 1.6.2. Visits to Site and Observation of Construction. In connection with observations of the work of Contractor(S) while it is in progress: 1.6.2.1. ENGINEER shall make visits to the site at intervals appropriate to the various stages of construction as ENGINEER deems necessary m order to observe as an experienced and qualified design professional the progress and quality of the various aspects of Contractor(s)' work In addition, ENGINEER shall provide the services of a Resident Project Representative (and assistants as agreed) at the site to assist ENGINEER and to provide more continuous observation of such work. Based on information obtained gg such visits and on such observations, ENGID shall endeavor to determine in general if such work is proceeding in accordance with the Contract Documents and ENGINEER shall keep OWNER informed of the progress of the work 1.6.2.2. The Resident Project Representative (and any assistants) will be ENGINEER's agent or employee and under ENGINEER's supervision. The duties and responsibilities of the Resident Project Representative (and assistants) are set forth in Exhibit B "Duties, Responsibilities and Limitation of Authority of Resident Project Representative". 1.6.2.3. The purpose of ENGINEER's visits to and representation by the Resident Project Representative (and assistants, if any) at the site will be to enable ENGINEER to better carry out the duties and responsibilities assigned to and undertaken by ENGINEER during the Construction Phase, and, in addition, by exercise of ENGINEER's efforts as an experienced and qualified design professional, to provide for OWNER a greater degree of confidence that the completed work of Contractor(s) will conform generally to the Contract Documents and that the integrity of the design concept as reflected in the Contract Documents has been implemented and preserved by Contractor(s). On the other hand, ENGINEER shall not, during such visits or as a result of such observations of Contractor(s)' work in progress, supervise, direct or have control over Contractor(s)' work nor shall ENGINEER have authority over or responsibility for the means, methods, techniques, sequences or procedures of construction selected by Contractor(s), for safety precautions and programs incident to the work of Contractor(s) or for any failure of Contractor(s) to comply with laws, rules, regulations, ordinance, codes or orders applicable to Contractor(s) furnishing and performing their work. Accordingly, ENGINEER can neither guarantee the performance of the construction contracts by Contractor(s) nor sesame responsibility for Contractor(s)' failure to furnish and perform their work in accordance with the Contract Documents. 1.6.3. Defective Work During such visits and on the basis of such observations, ENGINEER may disapprove of or reject Contractor(s)' work while it is in progress if ENGINEER believes that such work will not produce a completed Project that conforms generally to the Contract Documents or that it will prejudice the integrity of the design concept of the Project as reflected in the Contract Documents. 1.6.4. Interpretations and Clarifications. ENGINEER shall issue necessary interpretations and clarifications of the Contract Documents and in connection therewith prepare work directive changes and change orders as 1.6.5. Shop Drawings. ENGINEER shall review and approve (or take other appropriate action 'in respect of) Shop Drawings (as that term is defined in the aforesaid Standard General Conditions), samples and other data which Contractor(s) are required to submit, but only for conformance with the design concept of the Project and compliance with the information given in the Kntract Documents. Such reviews and approvals or other action shall not extend to means, methods, techniques, sequences or procedures of construction or to safety precautions and programs incident thereto. 1.6.6. Substitutes. ENGINEER shall evaluate and determine the a facility of substitute materials and equipment pby Contractor(s), but subject to the provision of the second subparagraph of paragraph 2.1.2. 1.6.7. Inspections and Tests. ENGINEER shall have authority, as OWNER'S representative, to require special inspectin or testing of the work, and shall receive and reveiw all certifiates of inssectons, testing and approvals rquired by laws, rules, regulations, ordinances, codes, orders or the Contract Documents (but only to determine generally that their content complies withe requirements of, and the rsults certified indicate compliance with, the Contract Documents). 1.6.8. Disputes between OWNER and Contractor. ENGINEER shall act as initial interpreter of the requirements of the Contract Documents and judge of the acceptability of hte work thereunder and make decisions on all claims of OVVNER and Contractor(s) relating to the acceptability of the work or the interpretation of the requirements oflite Contract Documents pertaining to the execution and progress of the work ENGINEER shall not be liable for the results of any such interpretations or decisions rendered in good faith. 1.6.9. Applications for Payment. Based on ENGINEER's on -site observations as an experienced and qualified design professional, on information provided by the Resident Project Representative and on review of applications for payment and the accompanying data and schedules: 1.6.9.1. ENGINEER shal determine the amounts owing to Contractor(s) and recommend in writing payments to Contractor(s) in such amounts. Such recommendations of payment will constitute a representation to OWNER, based on such observations and review, that the work has progressed to the point indicated, and that, to the best of ENGJNMVs knowledge, information and belief, the quality of such work is generally in ac corance with the Contract Documents (subject to an evaluation of such work as a functioning whole pior to or upon Substantial Completion, to the results of any subsequent tests called for in the Contrat Documents and to any other qualifications stated in the recommendation). In the case of unit price work, ENGINEER' recommendations of payment will include final deternunatiosn of quantities and classifications of such work (subject to any subsequent adjustments allowed by the Contract Documents). 1.6.9.2 By recommending any payment ENGINEER will not thereby be deemed to have represented that exhaustive, continuous or detailed reviews or examinations have been made by ENGINEER to check the quality or quantity of Contractor(s)' work as it is furnished and performed beyond the responsibilities specifically assigned to ENGINEER in this Agreement and the Contract Documents. ENGINEER's review of Contractor(s)' work for the purposes of recommending payments will not impose on ENGINEER responsibility to supervise, direct or control such work or for the means, methods, techniques, sequences, or procedures of construction or safety precautions or programs incident thereto or Contractor(s) compliance with laws, rules, regulations, ordinances, codes or orders applicable to their furnishing rid ppeerforming the work. It will also not impose responsibility on ENGINEER to make any examination to ascertain how or for what purposes any Contractor has used themoneys paid on account of the Contract Price, or to determine that title to any of the work, materials or equipment has passed to OWNER fiee and clear of any lien, claims, security interests or encumbrances, or tht there may not be other matters at issue between OWNER and Contractor that aught affect the amount that should be paid. 1.6.10. Contractor's)' Completion Documents. ENGINEER shall receive and review maintenance and certificates of inspection, tests and approvals which are to be assembled by Contractor(s) in accordance with the Contract Documents (but such review will only be to determine that their content complies with the requirements a and in the case of certificates of inspection, tests and approvals the results certified indicate compliance with, the Contract Documents); and shall transmit them to OWNER with written comments. 1.6.1 L .Inspections ENGINEER shall conduct an inspection to determine if the work is substantially complete and a final inspection to determine if the completed work is acceptable so that ENGINEER may recommend, in writing, final payment to Contractor(s) and may give written notice to OWNER and the Contractor(s) that the work is acceptable (subject to any conditions therein expressed), but any such recommedation and notice will be subject to the limitations expressed in paragraph 1.6.9.2. 1.6.12. Limitation of Responsibilities ENGINEER shall not be responsible for the acts or omissions of any Contractor, or of any subcontractor or supplier, or any of the Contractor's)' or subcontractor's or supplier's agents or employees or any other persons (except ENGINEER's own employees and agents) at the site or otherwise furnishing or performing any of the Contractor(s)' work; however, nothing contained in paragraphs 1.6.1 thru 1.6.11, inclusive, shall be construed to release ENGINEER from liability for failure to properly perform duties and responsibilities assumed by ENGINEER in the Contract Documents. M. Operational Phase. During Operational Phase, ENGINEER shall, when requested by OWNER: 1.7.1. Provide assistance in the closing of any financial or related transaction for the Project. 1.7.2. Provide assistance in connection with the reinfing and adjusting of any equipment or system. 1.7.3. Assist OWNER in training OWNER's staff to operate and maintain the Project 1.7.4. Assist OWNER in developing systems and procedures for control of the operation and maintenance of and record keeping for the Project. 1.7.5. Prepare a set of reproducible record prints of Drawings showing those changes made during the construction process, based on the marked -up prints, drawings and other data furnished by Contrator(s) to ENGINEER and which ENGINEER considers significant. 1.7.6. In company with OWNER, visit the Project to observe any apparent defects in the completed construction, assist OWNER in consultations and discussions with Contractor(s) concerning correction of such deficiencies, andmake recommendations as to replacement or correction of defective work. operating instructions, schedules, guarantees, bonds and The duties and responsibilities of ENGINEER during the Operational Phase are amended and supplemented as indicated in paragraph 7 of Exhibit A "Further Description of Basic Engineering Services and Related Matters". SECTION 2 - ADDITIONAL SERVICES OF ENGINEER 2.1. Normal and customary engincerin services do not include service in respect of the following categories of work which are usually referred to as Additional Services. 2.1.1. If OWNER wishes ENGINEER to perform any of the following Additional Services, OWNER shall so instruct ENGINEER in writing, and ENGINEER shall perform or obtain from others such services and will be paid therefor as provided in the Letter Agreement: -Preparation of applications and supporting documents for governmental financial support of the Project in addition to those required under Basic Services; preparation or review of emnromental studies and related services; and assistance in obtaining environmental approvals. -Services to make measured drawings of or to investigate existing conditions or facilities. - Services resulting from significant changes in the general extent or character of the Project or major in documentation previously accepted by OWNER where changes are due to causes beyond ENGINEER's control. -Providing renderings or models. documents for alternate bids requested by OWNER for work which is not executed or for out -of -sequence work. -Detailed consideration of operations, maintenance and overhead expenses; value engineering and the preparation of rate schedules, earnings and expense statements, cash flow and economic evaluations, feasibility studies, appraisals and valuations. -Furnishing the services of independent professional associates or consultants for other than Basic Services. -If ENGINEER's compensation for Basic Services is not on the basic of Direct Labor or Salary Costs, services resulting from the award of more than one prime contract for construction, materials, equipment or services for the Project, or from the construction contract containing cost plus or incentive -savings Provisions for Contractor's basic compensation, or from arranging for performance by persons other than the principal prime contractors or from edminictering OWNER's contracts for such services. - Services in connection with field surveys for staking purposes work of Cand �tracto�r(s).surveys and - Services during out-f-town travel other than visits to the site. -Preparation of operating and maintenance manuals to supplement Basic Services under paragraph 1.7.3. -Preparing to serve or serving as a consultant or witness in an litigation, arbitration or other legal or adminstrative proceeding except where required as part of Basic Services. 2.1.2. When required by the Contract Documents in circumstances beyond > ENGH4MR's control, ENGINEER shall perform or obtain from others any of the following Additional Services as circumstances require during construction and without waiting for specific instructions from OWNER, and ENGINEER will be paid therefor as provided in the Letter Agreement: - Services in connection with work directive changes and change ordes to relfect the changes requested by OWNER if the resulting change in compensation for Basic Services is not commensurate with the additional services rendered Services in making revisions to Drawings and Specifications occasioned byy the acceptance of substitutions proposed by Contractor(s); services afler the award of each contract in evaluating and determining the acceptability of an unreasonable or excessive number of substitutions proposed by Contractor, and evaluating an unreasonable or extensive number of claims submitted by Contractor(s) or others in connection with the work. Services resulting from significant dealys, chan*cs or price increases occurring as a direct ormdi drect result of material, equipment or energy shortages. Additional or extended services during eonstruciton made necessary by (1) work damage by fire or other causes during construction, (2) a significant amount of defective or neglected work of any Contractor, (3) acceleration of the progress schedule involving services beyond normal working hours, (4) default by any Contractor. SECTION 3 - OWNER'S RESPONSIBILITIES 3.1. OWNER shall provide all criteria and full infomration as to OWNER's requirements for the Project; designate a person to act with authority on OWNER's behalf m of all aspects of the Proejct; examine and respopromptly to ENGINEER's submissions; and give prompt wirtten notice to ENGINEER whenever OWNER observes or otherwise becomes aware of any defect in the work. 3.2. OWNER shall also do the following and pay all costs incident thereto: Furnish to ENGINEER borings, probings and subsurface explorations, hydrographic surveys, laboratory tests and inspections of samples, materials and equipment; appropriate professional interpretations of all of the foregoing, environmental assessment and impact statement; property, boundary, easement, right-d--way, topographic and utility surveys; property descriptions; zoning and cad restrictions; all of which ENGINEER may rely upon in performing services hereunder. - Guarantee access . to and make all provisions for. ENGINEER to enter upon public . and private property. - Provide such legal, accounting, independent cost estimating and insurance counseling services as may be reuqired for the Project, any auditing service required in respect of Contractor(s)' applications for payment, and anypE�on services to determine if Contractor(s) are orming the work legally. - Provide engineering surveys to establish reference points for construction. - Furnish approvals and permits farm all gavernrnental authorities having jurisdiction over the Project. - If more than one prime contractor is to be awarded for construction, designate a party to have responsibility and authority for coordinating the activities of the various prune contractors. 3.3. OWNER shall pay all costs incident to obtaining bids or proposals from Contractor(s). SECTION 4 - MEANING OF TERMS 4.1. As used herein the term "this Agreement" refers to the Letter Agreement to which these General Provisions are attached and to these General Provisions, Exhibit A "Further Descrption of Basic Engineering Services and Related Matters" and Exhibit B "Duties, Responsibilities and Limitations of Authority of Resident Project Representative", as if they weir part of one and the same document. 4.2. The construction cost of the entire Project (herein referred to as "Construction Cost") means the total cost to OWNER of those portions of the entire Project designed and specified by ENGINEER, but it will not include ENGINEER's compensation and expenses, the cost of land, rights-f--way, or compensation for or damages to properties unless this Agreement so specifies, nor will it include OWNER's legal, accounting, insurance counseling or auditing services, or interest and financing charges incurred in connection with the Project or the cost of other services to be provided by others to OWNER pursuant to paragraph 3.2. [Construction Cost is one of the items comprising Total Project Costs which is defined in paragraph 1.2.6.1 4.3. Direct Labor Costs used as a basis for payment means salaries and wages (basic and incentive) paid to all ENGINEER's personnel engaged directly on the Proeject, including, but not limited to, engineers, architects, surveyors, designers, draftsmen, specification writers, estimators, other technical and business personnel; but does not include indirect payroll related costs or fringe benefits. For the purposes of this Agreement the principals of ENGINEER and their current hourly Direct Labor Costs are: The hourly Direct Labor Costs of principals of ENGINEER will be adjusted equitably to reflect changes in personnel and in ENGINEER's overall compensation procedures and practices. 4.4. The Salary Costs used as a basis for payment mean salaries and wages (basic and incentive) paid to all ENGINEER's personnel engaged directly on the Project, incuding, but ont limited to, engineers, architects, surveyors, designers, draftsmen, specification writers, estimators, other technical and business personnel; lulus the cost of customary and statutory benefits including, but not limited to, social security contributions, unemployment, excise and payroll taxes, workers' compensation, health and retirement benefits, sick leave, vacation and holiday pay and other group benefits. For the purposes of thus Agreement, the principals of ENGINEER and their current hourly Salary Costs are: The hourly Salary Costs of principals of ENGINEER will be adjusted equitably to reflect changes in personnel and in ENCI]NEER's overall compensation procedures and practices. 4.5 Reimbursable Expenses mean the actual expenses incurred by ENGINEER or ENGINEER's independent professional associates or consultants directly or indirectly in connection with the Project, such as expenses for: transportation and subsistence incidental therto; obtainging bids or proposals from Contractor(s); grounding and maintaining field office facilities including furnishings and utilities; subsistenc and transportation of Resident Project Representatives and their assistants; toll telephone calls and telegrams; production of reports, Drawings, Specifications, Bidding Documents and similar Project -related items in addition to those required under Section 1; and if authorized in advance by OWNER, overtime work requiring higher than regular rates. In addition, when compensation for Basic Services is on the basis of cost plus a fixed fee, Direct Labor Costs or Payroll Costs method of payment, if authorized in advance by OWNER, Reimbursable Expenses will also include expenses incurred for armputer time and other highly specialized equipment, including an appropriate charge for previously established programs and expenses of photographic production teohmques times a factor of 1(one) SECTION 5 - MISCELLANEOUS 5.1. Reuse of Documents. All documents including Drawings and Specifications prepared or furnished by ENGINEER (and ENGINEER'S independent professional associates and consultants) pursuant to this Agreement are instruments of service in respect of the Project and ENGINEER shall retain an ownership and property interest therein whether or not the Project is completed. OWNER may make and retain copies for information and reference in connection with the use and occupancy of the Project by OWENR and others; however, such documents are not intended or represented to be suitable for reuse by OWNER or others on extensions of the Project or on any other project Any reuse without written verification or adaptation by ENGINEER for the specific purpose intended will be at OWNER's sole risk and without liability or legal exposure to ENGINEER, or to ENGINEER'S independent professional associates or consultants, and OWNER shall indemnify and hold harmless ENGINEER and ENGINMVs independent professional associates and consultants from all claims, damages, losses and expenses including attorneys' fees arising out of or resulting therefrom. Any such verification or adaptation will entitle ENGINEER to further compensation at rates to be agreed upon by OWNER and ENGINEER 5.2. Opinions of Cost. Since ENGINEER has no control over the cost of labor, materials, equipment or services furnished by others, or over the Contractor(s)' methods of determining prices, or over competitive bidding or market conditions, ENGINEER's opinions of probable Total Project Costs and Construction Cost provided for therein are to be made on the basis of ENGINEER's experience and qualification and represent ENGINEER's best judgment as an experienced and qualified professional engineer, familiar with the construction industry but ENGINEER cannot and does not guarantee that proposals, bids or actual Total Project or Construction Costs will not vary from opunions of probable cost prepared by ENGINEER. If prior to the Bidding or Negotiating Phase OWNER wishes greater assurance as to Total Project or Construction Costs, OWNER shall employ an independent cost estimator as provided in paragraph 3.2. ENGINEER'S services to modify the Contract Documents to * brmff the Construction Cost within any limitation established by OWNER will be considered Additional Services and paid for as such by OWNER 5.3. Other Provisions Concerning Payments. If OWNER fails to make any payment due ENGINEER for services and expenses within thirty days after receipt of ENGINEER's statement therefor, the amounts due ENGINEER will be increased at the rate of 1% per month from said thirtieth day, and in addition, ENGINEER amy, after giving seven days' written notice to OWNER, suspend services under this Agreement until ENGINEER has been paid in full all amounts due for services, expenses and charges. 5.4. Termination The obligation to provide further services under this Agreement may be terminated by either party upon seven days' written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party. In the event of any termination, ENGIl3EER will be paid for all services rendered to the date of termination, all Reimbursable Expenses and termination expenses. S.S. Controlling Law. This Agreement is to be governed by the law of the principal place of business of ENGINEER. 5.6. Successors and Assigns. 5.6.1. OWNER and ENGINEER each is hereby bound and the partners, successors, executors, administrator and legal representatives of OWNER and ENGINEER (and to the extent permitted by paragraph 5.6.2 the assigns of OWNER and ENGINEER) are hereby bound to the other party to this Agreement and to the partners, successors, executors, administrators and legeal representatives (and said assigns) of such other party, in respect of all covenants, agreements and obligations of this Agreement. 5.6.2. Neither OWNER nor ENGINEER shall assign, sublet or transfer any rights under or interests in (including, but without limitation, moneys that may become due or moneys that are due) this Agreement without the written consent of the other, except to the extent that any assignment, subletting or transfer is mandated by law or the effect of this limitation may be restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will releaes or discharge the assignor from any duty or responsibility under this Agreement. Nothing contained in this paragraph shall prevent ENGINEER form employing such independent professional associates and consultants as EN R-41M may deem appropriate to assist in the performance of services hereunder. 5.6.3. Nothing under this Agreement shall be construed to give any rights or benefits in this Agreement to anyone other than ONWER and ENGINEER, and all duties and responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of OWNER and ENGINEER and not for the benefit of any other party. 5.7. Deleted. entire understanding between you and us in respect of the Project and may only be modified in writing signed by both of us. If it satisfactorily sets forty your understanding of our agreement, we would appreciate your signing the enclosed copy of this letter in the space provided below and return it to us. Very truly yours, FANNING, FANNING & ASSOCIATES, INC. Accepted this loth day of June, 1999. City k; Lu bock ty, T By Windy Sitto Mayor Approved as to Content A& - Gary . SmMi, AIA Facilities Manager B . Jack F. Roberts, P.E. Vice President ATTEST: I �11*1 ) " Kayth arnell city S cretary Approved as to Form William de Haas Competition & Contracts Manager