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04-ALA-0-SLN <br />STPLJ-5041(006) <br />DATE: 09/03/97 <br />SPECIAL COVENANTS OR REMARKS <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 />2. The Local Agency will reimburse the State for their share of <br />costs for work requested to be performed by the State. <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. 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 />5. State Traffic System Management (TSM) funds are being made <br />available to match only those federal funds eligible in <br />accordance with Section 182.4 of the Streets and Highways Code <br />and as permitted by Article XIX of the State Constitution. <br />6. Federal funds eligible for TSM match will be proportional to the <br />total federal participating amount established at contract award <br />as indicated on the Finance or Bid Letter or its modification. <br />7. TSM match funds will be paid under normal progress payment <br />procedures after contract award or upon approval of the Annual <br />State Budget, whichever occurs later. <br />8. 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 />9. 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 />