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17 <br />2. Any costs incurred by the City prior to authorization of the Federal Funds, will <br />not be eligible for federal participation. <br />3. Eligible cost and expense, if approved, may consist: of the following: <br />a) The cost of conducting the access planning study and developing an access <br />improvement concept. <br />b) The direct labor charges for City employees for the time that said employees <br />are performing work pursuant to this agreement. Said labor charges may <br />include the prorat.a share of "labor additives" applicable to said labor charges. <br />Costs to the City of "labor additives'.' consisting of holiday pay, vacation, sick <br />leave, retirement, pension, unemployment taxes, compensation and liability <br />insurance, lost time charges and similar costs incidental to labor employment <br />will be reimbursed only when supported by adequate records. <br />c) The applicable equipment rental charges ,for City owned equipment used by <br />the City and mileage charges for employee owned vehicles used by the City <br />on work performed pursuant to this agreement, at rates reflective of the City <br />actual cost. <br />(1) 11"xpendiLures for materials, supplies, mechanical data processing and <br />equipment rental, limited to the actual expenditures for the purposes of this <br />agreement. <br />e) The cost incurred by the City to employ outside forces to perform any or all of <br />the work pursuant to this agreement, subject to the provisions of section T.D. <br />SUI31­ETT'ING. <br />4. Expenditures for: general administration, supervision, maintenance and other <br />overhead or incidental expenses of the City are not eligible for federal <br />participation. <br />5. Acceptability of costs under this agreement: will be determined in accordance with <br />the cost principles and procedures set forth in the applicable Federal Acquisition <br />Regulations, Contract Cost Principals and Procedures, 48 Code of Federal <br />Regulations (CFR) 31 which is hereby incorporated by reference and made a part <br />of this agreement. <br />6. For costs expected to exceed $ 50,000, the City must request the preparation and <br />execution of a supplement to this agreement, prior to incurring such costs. <br />C. STAFFING. <br />1. The City will designate a publicly employed registered engineer, ("Project <br />Engineer"), to be in responsible charge of the Project and to supervise and direct <br />the work performed under any contract let for the Project. If City elects to use a <br />private consultant for engineering services, the City will provide a qualified, full- <br />(Mn/DOT Agreenent NO, 87625) <br />Paye 2 <br />