CITY COUNCIL REGULAR MEETING AGENDA PACKET 9-1-26

5298389.1 consultant management, and deliverable reviews, and these costs are not included in the total Project Budget listed in Article 4.3. 4.5.2 Billing and Payment. Zone 7 shall invoice City quarterly for its cost share of direct consultant/contractor costs incurred in the prior three (3) calendar months. Each invoice must include supporting documentation and a budget summary. The budget summary shall be a line-item summary divided by agreement and task that includes budget, expenses to date, and percent expended vs. percent complete. City shall remit payment in full within sixty (60) days of the invoice date. After 60-days, the invoice will accrue interest at a rate of ten percent (10%) per annum. 4.5.3 Change Orders and Deviations from Budget. In the event any contractor, subcontractor, other construction professional, or design professional proposes a change order, increasing the cost of design, construction, management, or any line item within its applicable scope of work by the lesser of: a) more than 5%, or b) more than $100,000, Zone 7 shall submit a written change order for City’s review within ten (10) workdays of receipt. The City shall provide written comments within ten (10) work days. Zone 7 shall not authorize the changed or additional work to proceed prior to receiving City comments on the change order, unless the City does not respond within the ten (10) workdays. Zone 7 shall consider such City comments before approving the change order. However, within the change order allowance/ contingency included in the original funding proposal, after considering City comments, Zone 7 shall have sole discretion to approve any change order that it determines is appropriate and necessary for the successful completion of the project. If any change orders or deviations from the budget exceeding the change order allowance/contingency included in the original funding proposal, such change orders or budget deviation(s) shall require prior funding authorization from the governing body of both parties. Such change orders shall be placed before the respective governing bodies within 45 days of receipt of proposals. 4.5.4 Funding Authorizations. (a) Authorization Procedure. The Parties understand and agree that, notwithstanding the fact this Agreement provides an overall budget, the nature of the Parties as public agencies is such that at times the Parties will be required to seek the actual appropriation of funds approved via this Agreement for Project purposes. City agrees that, when Zone 7 requires funding authorization from its Board of Directors, City will seek corresponding funding authorization from its City Council in an amount sufficient to cover its proportional allocation as defined in this Agreement. City shall use its best efforts to obtain such authorization within two (2) weeks of Zone 7’s Page 274 of 344