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<br />04-SM -O-RDWC <br />M-D365(001) <br /> <br />DATE: 08/07/9l <br />PAGE: 2 <br /> <br />SPECIAL COVENANTS OR REMARKS <br /> <br />1. All maintenance, involving the physical condition and the <br />operation of the improvements, referred to in 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 /> <br />2. The Local Agency will advertise, award, and administer this <br />project and will obtain the state's concurrence prior to <br />either award or rejection of the contract. <br /> <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 Division of <br />Local streets and Roads. <br /> <br />4. 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 /> <br />5. 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 />