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HomeMy WebLinkAboutContracts & Agreements_213-2006_CCv0001.pdf AGREEMENT TO PERFORM PROFESSIONAL ENGINEERING SERVICES FOR OPERATION AND MAINTENANCE OF REDLANDS COGENERATION FACILITY This agreement for consulting services("Agreement")is made and entered into this 19th day of September, 2006 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City") and SCS Energy ("Consultant") who are sometimes individually referred to herein as a "Party"and together, as the "Parties." In consideration of the mutual promises contained herein, City and Consultant agree as follows: ARTICLE 1 - ENGAGEMENT OF CONSULTANT 1.1 City hereby engages Consultant to perform professional engineering services for Operation and Maintenance of the City of Redlands Electricity Cogeneration Facility (the "Services"). 1.2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services. ARTICLE 2 -..SERVICES OF CONSULTANT 2.1 The Services which Consultant shall perform are more particularly described in Attachment 'A" entitled "Scope of Services," which is attached hereto and incorporated herein by this reference. 2.2 Consultant shall comply with all applicable Federal, State and local laws and regulations in the performance of this Agreement including, but not limited to, the Americans with Disabilities Act, the Fair Employment and Housing Act and prevailing wage laws commencing at Labor Code section 1770 et seq. and non- discrimination laws including the Americans with Disabilities Act. Pursuant to Labor Code section 1773.2, copies of the prevailing rates of per diem wages as determined by the Director of the California Department of Industrial Relations for each craft, classification, or type of worker associated with the performance of the Services are on file at the City of Redlands office of the Public Works Department, Civic Center, 35 Cajon Street, Suite 222 (P.O. Box 3005 mailing), Redlands, California 92373. 2.3 Consultant acknowledges that if it violates the Labor Code provisions relating to prevailing wage, that City may enforce those provisions by issuing a notice of the withholding of contract payments to Consultant pursuant to Labor Code section 1771.6. DMAgreement ; S Energy 9-96 2.4 If Consultant executes an agreement with a subcontractor to perform any of the Services, Consultant shall comply with Labor Code sections 1775 and 1777.7, and shall provide the subcontractor with copies of the provisions of Labor Code sections 1771, 1775, 1776, 1777.5, 1813 and 1815. Consultant acknowledges that the statutory provisions imposing penalties for the failure to comply with state wage and hour laws and to pay prevailing wages may be enforced by City pursuant to Labor Code sections 1775 and 1813. 2.5 Consultant and its subcontractors shall comply with the provisions of Labor Code section 1776 regarding payroll records' maintenance, certifications, retention and inspection. 2.6 Consultant acknowledges that eight (8) hours constitutes a legal days work pursuant to Labor Code section 1810. 2.7 If applicable, Consultant shall comply with the provisions of Labor Code section 1777.5 relating to apprenticeships, and Labor Code sections 1771, 1775, 1776, 1777.5, 1813 and 1815. ARTICLE 3 - RESPONSIBILITIES OF CITY 3.1 City shall make available to Consultant information in its possession that may assist Consultant in performing the Services. 3.2 City will make reasonable provision for Consultant to enter upon City-owned property, as required by Consultant, to perform the Services. 3.3 City designates Greg Gage as City's representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City's policies and decisions with respect to performance of the Services. ARTICLE 4 - PERFORMANCE OF SERVICES 4.1 Consultant shall perform the Services in a prompt and diligent manner and in accordance with the schedule set forth in Attachment "B," entitled " Project Schedule." 4.2 At any time during the term of this Agreement, City may request that Consultant perform Extra Services. As used herein, "Extra Services"means any work which is determined necessary by City for the proper completion of the project or work for which the Services are being performed, but which the Parties did not reasonably anticipate would be necessary at the time of execution of this Agreement. Provided the Extra Work does not exceed twenty percent (20%) of the compensation to be DJMIAgreemenfslS S Energy 9-06 paid by City to Consultant for the Services, such Extra Work may be agreed to by the Parties, by written amendment to this Agreement, executed by City's City Manager. Consultant shall not perform, nor be compensated for, Extra Work without such written authorization from City. ARTICLE 5 - PAYMENTS TO CONSULTANT 5.1 The total compensation for Consultant's performance of the Services shall not exceed the amount of four hundred ten thousand eight hundred and ten dollars ($410,810). City shall pay Consultant on a time and materials basis up to the not to exceed amount, in accordance with Attachment "C" entitled "Project Costs, and based upon the hourly rates shown in Attachment "D," entitled "Rate Schedule." Both Exhibits "C" and "D" are attached hereto and incorporated herein by this reference. 5.2 Consultant shall submit monthly invoices to City describing the work performed during the preceding month. Consultant's invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses, if any. City shall pay Consultant no later than thirty(30)days after receipt and approval by City of Consultant's invoice, provided the Services reflected in the invoice were performed to the reasonable satisfaction of City in accordance with the terms of this Agreement, provided that the number of hours of Services set forth in the invoice reflect the amount of time ordinarily expended for such Services by members of the profession currently practicing in the same locality under similar conditions, and provided further that all expenses, rates and other information set forth in the invoice are consistent with the terms and conditions of the Agreement. 5.3 All notices shall be given in writing by personal delivery or by mail. Notices sent by mail should be addressed as follows: City Consultant Greg Gage Jeff Pierce Municipal Utilities Department SCS Energy City of Redlands 3900 Kilroy Airport Way 35 Cajon Street, Suite 15A Suite 100 PO Box 3005 (mailing) Long Beach, CA 90806-6816 Redlands, CA 92373 When so addressed, such notices shall be deemed given upon deposit in the United States Mail. Changes may be made in the names and addresses of the person to who notices and payments are to be given by giving notice pursuant to this section 5.3. DJM\Agreements\ Cs Energy 9-06 ARTICLE 6 - INSURANCE AND INDEMNIFICATION 6.1 All insurance required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services. Consultant shall not perform any Services unless and until all required insurance listed below is obtained by Consultant. Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. All insurance policies shall include a provision prohibiting cancellation of the policy except upon thirty (30) days prior written notice to City. 6.2 Workers' Compensation and Employer's Liability. A. Consultant shall secure and maintain Worker's Compensation and Employer's Liability insurance throughout the duration of this Agreement in accordance with the laws of the State of California, with an insurance carrier acceptable to City. B. Consultant expressly waives all rights to subrogation against City, its elected officials, officers and employees for losses arising from work performed by Consultant for City by expressly waiving Consultant's immunity for injuries to Consultant's employees and agrees that the obligation to indemnify, defend and hold harmless provided for in this Agreement extends to any claim brought by or on behalf of any employee of Consultant. This waiver is mutually negotiated by the Parties. This waiver shall not apply to any damage resulting from the sole negligence of City, its employees or agents. To the extent any of the damages referenced herein were caused by or resulted from the concurrent negligence of City, its agents or employees, the obligations provided herein to indemnify, defend and hold harmless are valid and enforceable only to the extent of the negligence of Consultant, its officers, agents and employees. 6.3 Hold Harmless and Indemnification. Consultant shall defend, indemnify and hold harmless City and its elected officials, employees and agents from and against any and all claims, losses or liability, including attorneys fees, arising from injury or death to persons or damage to property occasioned by Consultant's and its officers', employees' and agents' sole negligent acts or omissions in performing the Services. 6.4 Assignment. Consultant is expressly prohibited from assigning any of the Services without the express prior written consent of City. In the event of agreement by the Parties to assign a portion of the Services, Consultant shall add the assignee as an additional insured and provide City with the insurance endorsements required by this Agreement prior to the performance of any Services by the assignee. Assignment does not include printing or other customary reimbursable expenses that may be provided for in this Agreement. C> MAgreenenfs\SGS Energy 9-06 6.5 Comprehensive General Liability Insurance. Consultant shall secure and maintain in force throughout the term of this Agreement comprehensive general liability insurance with carriers acceptable to City. Minimum coverage of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate for public liability, property damage and personal injury is required. City shall be named as an additional insured. Such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City. 6.6 Professional Liability Insurance. Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made. 6.7 Business Auto Liability Insurance. Consultant shall have business auto liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit for bodily injury liability and property damage liability. This coverage shall include all Consultant owned vehicles used in connection with Consultant's provision of the Services, hired and non-owned vehicles, and employee non-ownership vehicles. Such insurance shall be primary and non- contributing to any insurance or self insurance maintained by City. City shall be named as an additional insured. ARTICLE 7 - CONFLICTS OF INTEREST 7.1 Consultant covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the geographical area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant's Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement. 7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant: A. Does not make or participate in: (i) the making or any governmental decisions regarding approval of a rate, rule or regulation, or the adoption or enforcement of laws; (ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certifications, approvals, orders or similar authorizations or entitlements; (iii) authorizing City to enter into, modify or renew a contract; C} KAgree ents\SCS Energy 9-06 (iv) granting City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) granting City approval to a plan, design, report, study or similar item; (vi) Adopting, or granting City approval of, policies, standards or guidelines for City or for any subdivision thereof. B. Does not serve in a staff capacity with City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for City that would otherwise be performed by an individual holding a position specified in City's Conflict of Interest Code under Government Code section 87302. 7.3 In the event City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the City Clerk's office pursuant to the written instructions provided by the Office of the City Clerk. ARTICLE 8 - GENERAL CONSIDERATIONS 8.1 Attorneys' Fees. In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in-house counsel of the Parties. 8.2 Prohibition Against Assignment. Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms, and conditions of this Agreement. 8.3 Documents and Records. All documents, records, drawings, designs, cost estimates, electronic data files, databases and other documents developed by Consultant in connection with its performance of the Services, and any copyright interest in such documents, shall become the property of City and shall be delivered to City upon completion of the Services, or upon the request of City. Any reuse of such documents, and any use of incomplete documents, shall be at City_s sole risk. 8.4 Independent Contractor Status. Consultant is for all purposes under this Agreement an independent contractor and should perform the Services as an independent contractor. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as herein set forth. Consultant shall supply all tools and instrumentalities required to perform the Services. All personnel employed by Consultant are for its account only, and in no DJMXAgreernents\S S Energy 9-00 event shall Consultant or any personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Consultant shall have no authority, express or implied,to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation. 8.5 Termination. A. Unless earlier terminated, as provided for below, this Agreement shall terminate upon completion and acceptance of the Services by City. B. This Agreement may be terminated by City, in its sole discretion, by providing thirty (30) business days prior written notice to Consultant (delivered by certified mail, return receipt requested) of City's intent to terminate. C. If this Agreement is terminated by City, an adjustment to Consultant's compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant. D. Upon receipt of a termination notice, Consultant shall immediately discontinue its provisions of the Services and, within five (5)days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of any data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination. 8.6 Books and Records. Consultant shall maintain any and all books, ledgers, invoices, accounts and all other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at all reasonable times for examination by City at the office of Consultant. 8.7 Entire Agreement/Amendment. This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Any amendment to this Agreement shall be in writing,approved by City and signed by City and Consultant. DJNIt,Agreements;SCS Energy 9-46 8.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 8.9 Severability. If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate any of the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement. IN WITNESS WHEREOF, duly authorized representatives of the City and Consultant have signed in confirmation of this Agreement. CITY OF REDLANDS SCS ENERGY By: s _ By n Harrison, Mayor y: , Attest: L City Cterk D.MkAgreenents�SC i Energy 9-06 ATTACHMENT A SCOPE OF SERVICES Ongoing Operation and Maintenance Service at the Cogeneration Facility Located at the City of Redlands Wastewater Treatment Plant Equipment Covered The scope of this assignment covers the day-to-day operation and maintenance of the landfill gas fired cogeneration facility located at the City of Redlands wastewater treatment plant. Major equipment covered by this assignment includes: • One Duetz Engine/Generator; Model TBG620 V12; gross rated output=970 kW; • Engine radiator; • Horriba continuous emissions monitoring system (CEMS); • Heat recovery heat exchanger; • Landfill gas blower/flare station; • Landfill gas air-to-gas after cooler; and • Encorp switchgear. Basic Operation and Maintenance (Tasks 1 and 2) In order to debug power plant problems and improve overall uptime, SCS Energy(SCS) proposed that the City budget the equivalent of a full-time operator,plus 15 percent overtime, for the first four months of this assignment. The budgeted manpower level would reduce to 32 hours per week thereafter. The budgeted annual cost will be$159,970 (1,882 hours at $85 per hour). Only actual hours utilized will be billed. SCS will attempt to reduce the actual hours billed to below the target hours through preventative maintenance and through remote site communication and control. In addition to the operator labor, the City will budget 10 man hours per month for engineering support and operational review. The budgeted cost should be $15,840 (120 hours at $132 per hour). The$132 rate represents the average billing rates of SCS's Project Manager and Senior Project Professional billing rates. Again, SCS would only bill for actual hours expended. SCS would bill all labor cost against a task titled "Task 1 -- Operation and Maintenance (Labor)." The total budget for Task 1 is $175,810. Attachment A September 12, 2006 Page 10 Subcontracts, equipment, materials, equipment rentals, and mileage will be billed on as incurred basis. A total of$160,000 be budgeted for these costs for the first year. SCS will track these costs under a task titled"Task 2 -- Routine Operation and Maintenance(Non-Labor)." SCS will secure advance approval from the City for any individual purchase order or service order to be issued by SCS, that is expected to exceed $5,000. SCS Energy will provide general tools and safety equipment at no cost to the City. Any specialty tools required for maintenance (generally limited to special tools for the engine) will be purchased and be billed to the City under Task 2. At the close of the contract, items purchased by the City will remain on site. Shutdown response will be provided from 6:00 a.m. to 9:00 p.m. on a seven day per week basis. The labor cost for these responses will be billable to Task 1. Travel time billed to the City for any single visit to the site will not exceed one hour. SCS will log in and out at the wastewater treatment plant, and will submit copies of its timesheets to the City. Routine maintenance services will include: i General site operation, clean-up, and data recording + Engine maintenance-- - Valve adjustments - Spark plug adjustments and replacement - Air filter cleaning and replacement - Oil testing, replacement, and disposal - Generator lubrication * Balance of plant maintenance -- - Radiator coil cleaning and lubrication - After-cooler cleaning and lubrication - Liquid pump cleaning and lubrication - Annual cleaning of the hot water heat exchanger - Gas analyzer calibration gas - Annual instrumentation calibration and safety shutdown testing • Emission system -- - LEMS maintenance, including one annual factory(Horriba) calibration Attachment A September 12, 2006 Page 1 I - CEMS calibration gas - Engineering and operations support for the annual source test. SCEC to provide the actual testing - SCAQMD operational reporting • Blower flare station maintenance-- - Blower and motor lubrication - Propane supply - Sump pumps - Instrumentation review • Miscellaneous repair and replacement of pipe fittings, supports, and gauges as required Non-Routine maintenance, if any,will include items like major troubleshooting,major repairs, and replacement of equipment(due to catastrophic failures). These developments would likely result in the exceedance of the above routine labor and routine expense target budgets. SCS will inform the City if, and as soon as, such developments that might affect the target occur. Comprehensive Engineering Evaluation and Report(Task 3) SCS will undertake a complete engineering review of the facility design and its operating parameters. This evaluation would be undertaken for a not-to-exceed price of$25,000. The cost would be billed at SCS's Fee Schedule rates. Issues to be addressed, among others, include: • Merits of the addition of a fuel pretreatment system (a cost-effectiveness type analysis will be performed); • Evaluation of the capacity of the jacket water and intercooler system, and its effects on de-rating the generator output; and • Evaluation of the sizing and capacity of the heat recovery equipment with respect to integration with the wastewater treatment plant's heat requirements. The following upgrades may be recommended by the evaluation. These were identified from an initial review of the facility and discussions with City personnel. Additional upgrades may be identified during the comprehensive engineering evaluation. The upgrades are listed in order of relative importance. These upgrades will be studied in greater detail, along with others, and a new priority list will be developed from the evaluation. Attachment A September 12, 2006 Page 12 Modify and Add Ventilation - $20,000 The existing building ventilation appears to be inadequately sized, and improperly installed for the project. Intake air is typically routed to the generator and engine intake section first and then discharged past the exhaust section of the engine. The air flow is reversed at Redlands. In addition the existing ventilation fans have been mounted high on the wall with no ducting to route airflow to the engine or generator. Crankcase Ventilation Vent Filters - $4,000 Often, the excessive buildup of deposits on pistons, valves, and spark plugs is due to the recycling of the cylinder blow-by back to the intake system. Deutz recommends the installation of Racer filters in the blow-by lines to mitigate this problem. Install Data Monitoring Recording and Reporting System $30,000 Based on currently available records, comments from the City, and discussions with SCEC, this upgrade appears to be a currently missing, important plant component. The new system will be integrated with the new PLC. Data will be stored in a SQL database and made accessible both locally at the plant and remotely via the Internet. SCS will work with the City to develop custom trends and reports based on plant operational and SCAQMD compliance requirements. Set Ute Remote Communication and Control - $10,000 It is understood that remote communication was attempted as part of the original project. SCS will look at what has already been installed to date and either complete the existing or substitute alternative communication equipment. The intent is to allow remote monitoring and control of the complete facility including the blower flare station. Upgrade the Flare Station PLC Program for Auto-Restart on Engine Failure SI5.000 The existing Opto 22 system is an early version Windows-based system which would cost more to upgrade than replace. It also places safety and control at the mercy of Windows. The upgrade would replace the Opto system with a standard industrial PLC which will communicate with the engine, CEMS, heat recovery, and flare station. The new PLC will be installed with 20% spare capacity for additional future instrumentation and monitoring capability. Oil and Coolant Tank- $20,000 The existing storage of new and used oil and coolant is a variety of drums and containers placed sporadically around the facility. It is recommended to install a single, dual contained, storage container with four separate compartments. Each compartment will be piped to the engine oil and cooling water pumps as required. Attachment A September 12, 2046 Page 13 Clean Heat Recovery Heat Exchanger $2,000 It was noted in the interview that the heat recovery system was not meeting the design expectation. It was also noted that the heat recovery system heat exchanger has never been cleaned, and that it utilizes untreated water. It is likely that scale build-up within the heat exchanger is limiting the heat recovery effectiveness. Because this is a plate-and frame heat exchanger it can be upgraded at the time of cleaning by adding additional plates. Additional plates are not included in the budget cost. The effectiveness and design should be reviewed as part of the engineering study. Safety Railing for Access to CEMS Equipment $2,000 Safe access to the CEMS at the exhaust line is required for on-going maintenance. The City will use the engineering evaluation report to establish a prioritized capital improvements program(a one year or a multi-year program). If the City decides to proceed with an upgrade identified in the report, then a task number and budget for each upgrade will be established. Spare Parts Acquisition (Task 4) An initial stock of spare and consumable parts should be purchased shortly after the start of this assignment. Examples of spare parts are: • Cylinder head and liner kits; • Water pumps and motors; • Water system control valves; • Flare station fire eye; • Spark plugs; • Air filters; • CEMS filters and miscellaneous parts; and • Oil filters. A complete list will be supplied approximately 30 days following start of the contract. The list will identify the part, its cost, its expected delivery time, and the benefit to having shelf, the part on the Attachment A September 12, 2006 Page 14 SCS suggests that the budget for these items be set at $50,000; however, the City will decide on the actual amount to be spent, based on the recommendations provided by SCS. When a spare part is used by SCS, it will be replaced and the cost of the replacement part will be charged to Task 2. Spare parts purchased through SCS will include a 15 percent markup. Alternatively, the City could buy the spare parts directly and avoid SCS's markup, ATTACHMENT B PROJECT SCHEDULE Task 1: Routine Operation and Maintenance(Labor) Complete the assignment twelve months from notice-to-proceed. Task 2: Routine Operation and Maintenance (Non-Labor) Complete the assignment twelve months from notice-to-proceed. Task 3: Comprehensive Engineering Evaluation and Report Complete the assignment forty-five days after notice-to-proceed. Task 4: Spare Parts Acquisition Provide a spare parts acquisition recommendation thirty days after notice-to-proceed. Task S and Higher: Individually Budgeted and Approved Plant Upgrades Schedules to be established with each task order. ATTACHMENT C PROJECT COSTS Task 1: Routine Operation and Maintenance (Labor) Not-to-exceed $175,810 Task 2: Routine Operation and Maintenance (Non-Labor) Not-to-exceed $160,000 Task 3: Comprehensive Enineerin2 Evaluation and Report Not-to-exceed $25,000 Task 4: Spare Parts Acquisition Not-to-exceed $50,000 Task 5 and Beyond: Individually Budp-eted and Approved Plant Upgrades To be established case-by-case by contract amendment. ATTACHMENT D SCSENERGY FEE SCHEDULE (Effective July 1, 2006, Through June 30, 20107) Rate/Hour ProjectDirector..................................................................................................................$185 ProjectManager................................................................................................................... 148 SeniorProfessional.............................................................................................................. 116 ProjectProfessional .............................................................................................................101 Staff Professional/Operations Manager.................................................................................85 ProjectAdministrator.............................................................................................................74 SeniorTechnician/Operator...................................................................................................69 Designer/Drafter.....................................................................................................................64 Technician..............................................................................................................................53 Administrative/Secretarial .....................................................................................................48 General Terms 1. Scheduled rates are effective through June 30,2007. Work performed thereafter is subject to a new Pee Schedule. 2. Scheduled labor rates include overhead, administration, and profit. Costs for outside consultants and subcontractors, and for job-related employee travel and subsistence, reproduction, telephone, equipment, and supplies are billed at actual cost plus a 15 percent administrative fee. 3. Vehicle mileage is invoiced at $0.40 per mile for company autos and $0.50 per mile for company trucks. 4. Invoices will be prepared monthly or more frequently for work in progress, unless otherwise agreed. Invoices are due and payable upon receipt. Invoices not paid within 30 days are subject to a service charge of 1.5 percent per month on the unpaid balance. 5. Payment of SCS invoices for services performed will not be contingent upon the client's receipt of payment from other parties, unless otherwise agreed in writing. Client agrees to pay legal costs,including attorney's fees,incurred by SCS in collecting any amounts past due and owing on client's accounts. 6. For special situations such as expert court testimony and limited consultation,hourly rates will be on an individually negotiated basis.