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08 -SBD -0 -COL <br />STPL-5065(003) <br />DATE: 09/20/95 <br />SPECIAL COVENANTS OR REMARKS <br />1. All maintenance, involving the physical condition and the <br />operation of the improvements, referred to y.n Article VI <br />MAINTENANCE of the aforementioned Master Agreement will be <br />performed by the Local Agency at regular intervals or as required <br />for efficient operation of the completed improvements. <br />2. The Local Agency will advertise, award and administer this <br />project in accordance with the current Local Program Procedures <br />or the new Local Programs Manual, when issued. <br />3. The Local Agency agrees the payment of Federal funds will be <br />limited to the amounts approved by the Federal Highway <br />Administration in the Federal -Aid Project Agreement (PR-2)/Detail <br />Estimate, or its modification (PR -2A) or the FNM -76, and accepts <br />any increases in Local Agency Funds as shown on the Finance or <br />Bid Letter or its modification as prepared by the Office of Local <br />Programs. <br />4. In accordance with Section 182.4 of the Streets and Highways Code <br />and as permitted by Article XIX of the State Constitution, State <br />Traffic System Management (TSM) funds are being made available to <br />match eligible Federal funds. The Local Entity's share of <br />matching funds for the phases of work shown in this agreement <br />will be 100% of the amount remaining, if any, after Federal and <br />TSM funds participation. The TSM funds shown will be adjusted <br />accordingly as Federal funds increase or decrease until final <br />vouchering. Adjustments will be reflected on the Finance or Bid <br />letter or it's modification as prepared by the Office of Local <br />Programs. <br />5. In executing this Program Supplemental Agreement, Local <br />Agency hereby reaffirms the "Nondiscrimination Assurances" <br />contained in the aforementioned Master Agreement for <br />Federal -Aid Program. <br />6. Whenever the local agency uses a consultant on a cost plus basis, <br />the local agency is required to submit a post audit report cover- <br />ing the allowability of cost payments for each individual consul- <br />tant or sub -contractor incurring over $25,000 on the project. <br />The audit report must state the applicable cost principles utili- <br />zed by the auditor in determining allowable costs as referenced in <br />CFR 49, part 18, Subpart C - 22, Allowable Costs. <br />Page 2 of 2 <br />ATTACHMENT 2 <br />