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STATE OF CALIFORNIA Contract No: 75LX204 DEPARTMENT OF TRANSPORTATION Sheet 4 of 10 November 1, 2011 This declaration shall be based upon actual allowable Project cost, Project Scope and Project cost limits set forth herein. Upon receipt of this declaration, Department will pay all outstanding allowable invoiced Project costs. If upon final accounting, it is determined that the Department previously paid more than its share of said project, Local Agency shall refund the difference between the Department's share and the amount paid by Department. All records of the Local Agency, its contractors and subcontractors are subject to audit by representatives of the Department and Federal Highway Administration. Such records will be retained and made immediately available for inspection by Department's Auditors for a period of three years from Department's date of final payment of aforementioned final invoice. 17. All work to be done hereunder by Local Agency shall be done only by its employees on a force account basis, or by contractors, the cost thereof to be paid to Local Agency by Department in the manner hereinafter set forth. 18. Local Agency agrees that the 48 CFR Chapter 1 Part 31 et scq., Contract Cost Principles and Procedures, Federal Acquisition Regulations System, shall be used to determine the allowable individual items of indirect cost. Local Agency agrees to comply with the applicable Federal procedures in accordance with Office of Management and Budget Circular A -87, Cost Principles for State and Local Governments and CFR 49, Part 18, Uniform Administrative Requirements for Grants and Cooperative Agreements with State and Local Governments. 19. All applicable portions of 23 CFR Part 140, Subpart I are by reference incorporated herein and made a part hereof. 20. An itemized estimate of the cost of the work to be performed by Local Agency is attached hereto as a part of Exhibit B and made a part hereof, 21. Department agrees to reimburse Local Agency for qualified insurance expenses as authorized by 23 CFR 646 et seq., and as set forth in cost estimates attached hereto. 22. The Local Agency has 180 days after the expiration date of this contract to submit the final invoice to Department for verification and payment. 23. In cooperation with the Railroad, the Local Agency shall maintain the Project improvements made under this contract located in its right of way. 24. Subject to the availability of labor and material, it is the intent of the parties hereto that all construction work under this service contract shall be completed within one year after the Notice to Proceed is issued by the Department, unless a time extension is requested by Local Agency and approved in writing by the Department. This Contract is effective for a period of two years only to prevent difficulties, which may arise if the Contract expired prior to all performance requirements being satisfied. Time is of the essence for completion of Project funded by this Contract. Costs incurred after expiration of the contract are not reimbursable. 25. AMENDMENT: No amendment or variation of the terms of this Contract shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in this Contract is binding on any of the parties. APPROVED: Caltrans Legal xng 0312010