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EXHIBIT 2 <br /> 0 CITY OF SANTA ANA <br /> 3. COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS <br /> a. Consultant agrees that the Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition <br /> Regulations System, Chapter 1, Part 31.000 et seq., shall be used to determine the cost allowability of <br /> individual items. <br /> b. Consultant agrees to comply with federal procedures in accordance with 2 CFR, Part 200, Uniform <br /> Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. <br /> c. Any costs for which payment has been made to Consultant that are determined by subsequent audit to <br /> be unallowable under 2 CFR, Part 200 and 48 CFR, Federal Acquisition Regulations System, Chapter <br /> 1, Part 31.000 et seq., are subject to repayment by Consultant to City. <br /> 4. TERM <br /> This Agreement shall commence on [enter a Start Date or"the date first written above"] for a number W <br /> year term with the option for the City to grant up to a number M-year renewals, exercisable by a writing by the <br /> City Manager and the City Attorney, unless terminated earlier in accordance with Section 15, below. <br /> 5. STATE PREVAILING WAGE RATES <br /> a. If applicable, Consultant shall comply with the State of California's General Prevailing Wage Rate <br /> requirements in accordance with California Labor Code, Section 1770, and all Federal, State, and local <br /> laws and ordinances applicable to the work. <br /> b. Any subcontract entered into as a result of this Agreement, if for more than $25,000 for public works <br /> construction or more than$15,000 for the alteration, demolition, repair,or maintenance of public works, <br /> shall contain all of the provisions of this Section, unless the awarding agency has an approved labor <br /> compliance program by the Director of Industrial Relations. <br /> c. When prevailing wages apply to the services described in the scope of work, transportation and <br /> subsistence costs shall be reimbursed at the minimum rates set by the Department of Industrial <br /> Relations(DIR)as outlined in the applicable Prevailing Wage Determination. See http://www.dir.ca.gov. <br /> 6. INDEPENDENT CONTRACTOR <br /> Consultant shall, during the entire term of this Agreement, be construed to be an independent Consultant <br /> and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer- <br /> employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the <br /> professional manner in which Consultant performs the services which are the subject matter of this Agreement; <br /> however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable <br /> standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social <br /> security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all <br /> applicable withholding taxes. <br /> 7. OWNERSHIP OF MATERIALS <br /> This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or <br /> sublicense any and all copyrights, designs,and other intellectual property embodied in plans,specifications,studies, <br /> drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, <br /> including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, <br /> which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). <br /> Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual <br />