#29870 PROFESSIONAL MANAGEMENT, ENGINEERING AND/OR ARCHITECTURAL SERVICES PARTI-AGREEMENT yan< THIS AGREEMENT, entered into this ~~-rMday of ~i0r~7~s~3C/L by and between the COUNTY OF KERR, hereinafter called the "County", acting herein by'COUNTY JUDGE hereunto duly authorized, and TETRA TECH, INC. hereinafter called "Firm or Engineer", acting herein by BRAD GROVES, P.E., DIVISIONAL VICE PRESIDENT. WITNESSETH THAT: WHEREAS, the County of Kerr desires to develop a preliminary engineering design study and final report for the development of a wastewater collection, transmission and treatment system for the unincorporated community of Center Point, Kerr County, Texas; and Whereas the County desires to engage Firm to render certain services in connection with the design of such facilities. NOW THEREFORE, the parties do mutually agree as follows: 1. Scope of Services Part II, Scope of Services, is hereby incorporated by reference into this Agreement. 2. Time of Performance -The services of Firm shall commence on execution of this contract. In any event, all of the services required and performed hereunder shall be completed no later than February 28, 2007, with final report due on or before April 30, 2007. 3. Access to Information - It is agreed that all information, data, reports and records and maps as are existing, available and necessary for the carrying out of the work outlined above shall be furnished to Firm by the County and its agencies. No charge will be made to Firm for such information and the County and its agencies will cooperate with Firm in every way possible to facilitate the performance of the work described in the contract. 4. Compensation and Method of Payment -The maximum amount of compensation and reimbursement to be paid hereunder shall not exceed $121,760.00. Payment to (person/firm) shall be based on satisfactory completion of identified milestones in Part III -Payment Schedule of this Contract. 5. Indemnification -Firm shall comply with the requirements of all applicable laws, rules and regulations, and shall exonerate, indemnify, and hold harmless the County and its agency members from and against them, and shall assume full responsibility for payments of Federal, State and local taxes on contributions imposed or required under the Social Security, worker's compensation and income tax laws. 6. Miscellaneous Provisions a. This Agreement shall be construed under and accord with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Kerr County, Texas. b. This Agreement shall be binding upon and insure to the benefit of the parties hereto and heir respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this Agreement. c. In any case one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceabilityshatl not affect any other provision thereof and this Agreement shall not be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. d. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. e. This Agreement may be amended by mutual agreement of the parties hereto and a writing to be attached to an incorporated into this Agreement. 7. Terms and Conditions -This Agreement is subject to the provisions titled, "Part IV Terms and Conditions" and attached hereto and incorporated by reference herein. IN WITNESSETH HEREOF, the parties have hereunto set their hands and seals. COUNTY OF ~ TETRA TECH, IN BY: - f}rJ dge) Brad its Divisional Vice President NOTE: This document has important legal consequences. Please consult with your legal counsel with respect to its completion or modification. PART II PROFESSIONAL ENGINEERING/ARCHITECTURAL SCOPE OF SERVICES The Engineering Firm shall render the following professional services necessary for the development of the project: SCOPE OF SERVICES Phase I Consultant will conduct a preliminary engineering design study/analysis of a proposed wastewater collection and treatment project within the designated project area in the unincorporated area known as Center Point, Kerr County, in accordance with the area delineated on a map included in the Kerr County Application to the Texas Water Development Board (TWDB) dated December 15, 2005. The study must be in sufficient detail to produce a final report that can be used to secure funding for the implementation of the project. Or should the study determine that the project is not financially feasible, so justify that position. The following should be included in the final report: Conduct public meetings in association with Kerr County including but not limited to conduct public meetings with other participants in the project, consultants, local entities, Texas Commission on Environmental Quality (TCEQ), Texas Water Development Board (TWDB) and any interested part at the commencement of the project to discuss the Scope of Work. Additional meetings should be held at the 50% completion milestone of the study and following the study's completion, but prior to the submission of the final draft to the TWDB for review and comments. Also, consultant must specify, as much as possible, how the growth rate for the project area as well as wastewater flow projections will be identified. Wastewater needs should be projected for 25 years beyond final report date. TWDB population projects and wastewater flow projections will be considered along with other economic development potentials brought about by the wastewater collection system. Phase II Consultant will evaluate two (2) treatment options: 1) pump wastewater flows to the City of Kerrville's wastewater collection system at a point of interception to be developed between the City of Kerrville and Kerr County; or, 2) gravity flow wastewater to a point of interception with the Kendall County WC&ID's wastewater collection system in or near the unincorporated area of Comfort, Texas. Transmission to the Kendall County WC&ID system promotes the regional system concept and may qualify for TWDB participation in the cost of the transmission line. Pumping back to Kerrville may not qualify as a regional system. Consultant will consider expansion of the preliminary service area based on whether the effluent flow is transported Eastward to Kendall County WC&ID or Westward to the City of Kerrville sanitary sewer stub in the vicinity of the Kerrville/Kerr County Airport. Consultant will determine the cost of the treatment based on the two (2) scenarios stated above including but not necessarily limited to costs associated with the actual treatment process, treatment provider's fees including tap, hook-up, capital recovery, impact and other fees associated with the respective treatment provider's service to the project. Complete charges including fees and other associated costs will be considered in determining the unit cost (based on 1,000 gallons treated) or proposed rate to be passed on to the project user. Consultant will consider future developments within the study area as well as other potential developments along both treatment transmission routes to the treatment facility. Phase III Consultant shall evaluate the possibility and cost benefit for TWDB's participation in the outfall or transmission line between the project area and the treatment facility, and address the participation with TWDB staff to determine eligibility. TWDB's participation in the cost of construction of the line should be evaluated in order to determine the benefit to the ratepayer based on the 1,000 gallon treated. Phase IV Consultant shall produce a final report including the preliminary engineering design of the collection and transportation system, the two treatment options, unit costs to the ratepayer including each of the two treatment scenarios and including text, maps, other graphics and the Engineer's Opinion of Cost to Construct, maintain and operate the project to the ratepayer based on 1,000 gallons water consumed applied to wastewater flows based on the standard acceptable percentage of total water consumed released into the wastewater system for treatment. Furnish Kerr County 10 copies of the final report (additional copies will be furnished to Kerr County at direct cost of reproduction). SUBCONTRACTS 1. Engineer shall subcontract no work under this Contract without prior approval, in writing, from Kerr County. 2. The Engineer shall, prior to proceeding with the work, notify Kerr County in writing of the name of any subcontractors proposed for the work, including the extent and character of the work to be done by each. 3. If any time during progress of the work, Kerr County determines that any subcontractor is incompetent or undesirable, Kerr County will notify the Engineer who shall take reasonable and immediate steps to satisfactorily cure the problem, substitute performance, or cancel such subcontract. Subletting by subcontractors shall be subject to the same regulations. Nothing contained in this Contract shall create any contractual relation between any subcontractor and Kerr County. 4. The Engineer will include in all contracts and subcontracts of amounts in excess of $100,000 a provision which requires compliance with all applicable standards, orders or requirements issued under Section 306 of the Clean Air Act [42 U.S. 1857 (h)], Section 508 of the Clean Water Act (33 U.S.C. 1368d), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR, Part 15), which prohibit the use under non-exempt Federal contracts, grants or loans of facilities included on the EPA List of Violating Facilities. The provisions shall require reporting of violations to ORCA and to the U.S. Environmental Protection Agency Assistant Administrator for Enforcement. 5. The Engineer will include in all contracts and subcontracts other than for small purchases (less than $10,000), provisions or conditions which will allow for administrative, contractual or legal remedies in instances which violate or breach contract terms, and provide for such sanctions and penalties as may be appropriate. 6. The Engineer will include in all contracts and subcontracts in excess of $10,000 suitable provisions for termination by Kerr County including the manner by which it will be affected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the Engineer. The Engineer will include in all contracts and subcontracts in excess of $10,000 provisions requiring compliance with the following: • The Engineer will not discriminate against any employee or applicant for employment because of race, creed, sex, color, national origin, physical or mental disability, marital status, parenthood, or age. • Executive Order 11246 -Equal Employment Opportunity. • Copeland Anti-Kickback Act. • (In excess of $2,000) -Davis-Bacon Act • (In excess of $2,000) -Section 103 and 107 of the Contract W ork Hours and Safety Standards Act. • A provision recognizing mandatory standards and policies relating to energy efficiency, which are contained in the State energy conservation plan, issued in compliance with the Energy Policy and Conservation Act. • Section 3 of the Housing and Urban Development Act of 1969. • Title VI of the Civil Rights Act of 1964 1. The Engineer will include in all negotiated contracts and subcontracts a provision which indicates that funds will not be awarded under this contract to any party which is debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs under Executive Order 12549 and 24 CFR Part 24. A certification shall be provided and received from each proposed subcontractor under this contract and its principals. The Engineer will include in all negotiated contracts and subcontracts a provision to the effect that Kerr County, ORCA, the Comptroller General of the State of Texas, or any of their duly authorized representatives, shall have access to any books, documents, papers and records of the Contractor which are directly pertinent to that specific contract, for the purpose of making audit, examination, excerpts, and transcriptions. 3. The Engineer will include in all contracts and subcontracts a requirement that the Contractor maintain all relevant project records for three (3) years after Kerr County has made final payment to the Contractor and all other pending matters are closed. STANDARD OF PERFORMANCE AND DEFICIENCIES 1. All services of the Engineer and its independent professional associates, consultants and subcontractors will be performed in a professional, reasonable and prudent manner in accordance with generally accepted professional practice. The Engineer represents that it has the required skills and capacity to perform work and services to be provided under this Contract. The Engineer represents that services provided under this Contract shall be performed within the limits prescribed by Kerr County in a manner consistent with that level of care and skill ordinarily exercised by other professional consultants under similar circumstances. 3. Any deficiency in Engineer's work and services performed under this contract shall be subject to the provisions of applicable state and federal law. Any deficiency discovered shall be corrected upon notice from Kerr County and at the Engineer's expense if the deficiency is due to Engineer's negligence. The Kerr County shall notify the Engineer in writing of any such deficiency and provide an opportunity for mutual investigation and resolution of the problem prior to pursuit of any judicial remedy. In any case, this provision shall in no way limit the judicial remedies available to the Kerr County under applicable state or federal law. The Engineer agrees to and shall hold harmless Kerr County, its officers, employees, and agents from all claims and liability of whatsoever kind or character due to or arising solely out of the negligent acts or omissions of the Engineer, its officers, agents, employees, subcontractors, and others acting for or under the direction of the Engineer doing the work herein contracted for or by or in consequence of any negligence in the performance of this Contract, or by or on account of any omission in the performance of this Contract. NOTE: This document has important legal consequences. Please consult with your legal counsel with respect ', to its completion or modification. PART III PAYMENT SCHEDULE PROFESSIONAL ENGINEERING/ARCHITECTURAL SERVICES County shall reimburse Tetra Tech, Inc. for basic engineering services provided upon completion of the following project milestones per the following percentages of the maximum contract amount: Milestone Contract Fee • Phase I - 40% $ 48,704 • Phase II - 30% 36,528 • Phase III - 10% 12,176 • Phase IV - 20% 24,352 Total $121,760 NOTE: Percentages of payment listed here are general guidelines based on engineering services typically provided. These are negotiable, and should serve only as a guide. Payment schedule should be tied directly to the actual Scope of Work identified in Part II -Engineering/Architectural Scope of Services. PART IV TERMS AND CONDITIONS PROFESSIONAL ENGINEERING AND/OR ARCHITECTURAL SERVICES Termination of Contract for Cause. If, through any cause, the Firm shall fail to fulfill in a timely and proper manner his/her obligations under this Contract, or if the Firm shall violate any of the covenants, agreements, or stipulations of this Contract, the County shall thereupon have the right to terminate this Contract by giving written notice to the Firm of such termination and specifying the effective date thereof, at least five days before the effective date of such termination. In such event, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by the Firm under this Contract shall, at the option of the County, become its property and the Firm shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder. Notwithstanding the above, the Firm shall not be relieved of liability to the County for damages sustained by the County by virtue of any breach of the Contract by the Firm, and the County may withhold any payments to the Firm for the purpose of set-off until such time as the exact amount of damages due the County from the Firm is determined. 2. Termination for Convenience of the County. The County may terminate this Contract at any time by giving at least ten (10) days notice in writing to the Firm. If the Contract is terminated by the County as provided herein, the Firm will be paid for the time provided and expenses incurred up to the termination date. If this Contract is terminated due to the fault of the Firm, Paragraph 1 hereof relative to termination shall apply. 3. Changes. The County may, from time to time, request changes in the scope of the services of the Firm to be performed hereunder. Such changes, including any increase or decrease in the amount of the Firm's compensation, which are mutually agreed upon by and between the County and the Firm, shall be incorporated in written amendments to this Contract. 4. Personnel. a. The Firm represents that he/she has, or will secure at his own expense, all personnel required in performing the services under this Contract. Such personnel shall not be employees of or have any contractual relationship with the County. b. All of the services required hereunder will be performed by the Firm or under his/her supervision and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and Local law to perform such services. c. None of the work or services covered by this Contract shall be subcontracted without the prior written approval of the County. Any work or services subcontracted hereunder shall be specified by written contract or agreement and shall be subject to each provision of this Contract. 5. Assignability. The Firm shall not assign any interest on this Contract, and shall not transfer any interest in the same (whether by assignment or notation), without the prior written consent of the County thereto: Provided, however, that claims for money by the Firm from the County under this Contract may be assigned to a bank, trust company, or other financial institution without such approval. Written notice of any such assignment or transfer shall be furnished promptly to the County. 6. Reports and Information. The Firm, at such times and in such forms as the County may require, shall furnish the County such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Contract, the costs and obligations incurred or to be incurred in connection therewith, and any other matters covered by this Contract. 7. Records and Audits. The Firm shall insure that the County maintains fiscal records and supporting documentation for all expenditures of funds made under this contract in a manner which conforms to OMB Circular A-87, Section 570.490 of the Regulations, and this Contract. Such records must include data on the racial, ethnic, and gender characteristics of persons who are applicants for, participants in, or beneficiaries of the funds provided under this Contract. County shall retain such records, and any supporting documentation, for the greater of three years from closeout of the Contract or the period required by other applicable laws and regulations. 8. Findings Confidential. All of the reports, information, data, etc., prepared or assembled by the Firm under this contract are confidential and the Firm agrees that they shall not be made available to any individual or organization without the prior written approval of the County. 9. Copyright. No report, maps, or other documents produced in whole or in part under this Contract shall be the subject of an application for copyright by or on behalf of the Firm. 10. Compliance with Local Laws. The Firm shall comply with all applicable laws, ordinances and codes of the State and local governments, and the Firm shall save the County harmless with respect to any damages arising from any tort done in performing any of the work embraced by this Contract. 11. Equal Employment Opportunity. During the performance of this Contract, the Firm agrees as follows: The Firm will not discriminate against any employee or applicant for employment because of race, creed, sex, color, handicap or national origin. The Firm will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, sex, color, handicap or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Firm agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the County setting forth the provisions of this non-discrimination clause. b. The Firm will, in all solicitation or advertisements for employees placed by or on behalf of the Firm, state that all qualified applicants will receive consideration for employment without regard to race, creed, color, sex, handicap or national original. c. The Firm will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Contract so that such provisions will be binding upon each subcontractor, provided that the foregoing provisions shall not apply to contracts or subcontracts for standard commercial supplies or raw materials. d. The Firm will include the provisions a. through c. in every subcontract or purchase order unless exempted. 12. Civil Rights Act of 1964. Under Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. 13. Section 109 of the Housing and Community Development Act of 1974. a. No person in the United States shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. 14. "Section 3" Compliance in the Provision of Training, Employment and Business Opportunities. a. The work to be performed under this contract is on a project assisted under a program providing direct Federal financial assistance from the Department of Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project. b. The parties to this contract will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 C.F.R. 235, and all applicable rules and orders of the Department issued thereunder prior to the execution of this Contract. The parties to this Contract certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. c. The contractor will send to each labor organization or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, if any, a notice advising the said labor organization or workers' representative of his/her commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. d. The contractor will include this Section 3 clause in every subcontract for work in connection with the project and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 C.F.R. Part 135. The contractor will not subcontract with any subcontractor where it has notice or knowledge that the latter has been found in violation of regulations under 24 C.F.R. Part 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. Compliance with the provisions of Section 3, the regulations set forth in 24 C.F.R. Part 135, and all applicable rules and orders of the Department issued hereunder prior to the execution of the contract, shall be a condition of the federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its contractors and subcontractors, its successors and assigns to those sanctions specified by the grant or loan agreement or contract through which federal assistance is provided, and to such sanctions as are specified by 24 C.F.R. Part 135. 15. Section 503 Handicapped (if $2,500 or Over) Affirmative Action for Handicapped Workers. a. The contractor will not discriminate against any employee or applicant for employment because of physical or mental handicap in regard to any position for which the employee or applicant for employment is qualified. The contractor agrees to take affirmative action to employ, advance in employment and otherwise treat qualified handicapped individuals without discrimination based upon their physical or mental handicap in all employment practices such as the following: Employment, upgrading, demotion or transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. b. The contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the Act. c. In the event of the contractor's non-compliance with the requirements of this clause, actions for non-compliance may be taken in accordance with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the Act. d. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices in a form to be prescribed by the Director, provided by or through the contracting officer. Such notices shall state the contractor's obligation under the law to take affirmative action to employ and advance in employment qualified handicapped employees and applicants for employment, and the rights of applicants and employees. e. The contractor will notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding, that the contractor is bound by the terms of io Section 503 of Rehabilitation Act of 1973, and is committed to take affirmative action to employ and advance in employment physically and mentally handicapped individuals. f. The contractor will include the provisions of this clause in every subcontract or purchase order of $2,500 or more unless exempted by rules, regulations, or orders of the Secretary issued pursuant to Section 503 of the Act, so that such provisions will be binding upon each subcontractor with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance Programs may direct to enforce such provisions, including action for non-compliance. 16. Interest of Members of the County. No member of the governing body of the County and no other officer, employee, or agent of the County who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this Contract and the Firm shall take appropriate steps to assure compliance. 17. Interest of Other Local Public Officials. No member of the governing body of Kerr County and no other public official of such Kerr County, who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this Contract; and the Firm shall take appropriate steps to assure compliance. 18. Interest of Firm and Employees. The Firm covenants that he/she presently has no interest and shall not acquire interest, director indirect, in the study area or any parcels therein or any other interest which would conflict in any manner or degree with the performance of his/her services hereunder. The Firm further covenants that in the performance of this Contract, no person having any such interest shall be employed. 19. State Auditor Clause By executing this Contract, the SUBCONTRACTOR accepts the authority of the State Auditor's Office, under direction of the legislative audit committee, to conduct audits and investigations in connection with any and all state funds received pursuant to this contract. The SUBCONTRACTOR shall comply with and cooperate in any such investigation or audit. The SUBCONTRACTOR agrees to provide the State Auditor with access to any information the State Auditor considers relevant to the investigation or audit. The SUBCONTRACTOR also agrees to include a provision in any subcontract related to this contract that requires the SUBCONTRACTOR to submit to audits and investigation by the State Auditor's Office in connection with any and all state funds received pursuant to the subcontract. 20. Financial Records The SUBCONTRACTOR (S) and its contracted parties shall maintain satisfactory financial accounting documents and records, including copies of invoices and receipts, and shall make them available for examination and audit by the EXECUTIVE ADMINISTRATOR of the BOARD. Accounting by the SUBCONTRACTOR (S) and its contracted parties shall be in a manner consistent with generally accepted accounting principles. 21. Ownership The BOARD shall have unlimited rights to technical or other data resulting directly from the performance of services under this CONTRACT. It is agreed that all reports, drafts of reports, or other material, data, drawings, computer programs and codes associated with this CONTRACT and developed by the SUBCONTRACTOR (S) or its contracted parties pursuant to this CONTRACT shall become the joint property of the SUBCONTRACTOR (S) and the BOARD. These materials shall not be copyrighted or patented by the SUBCONTRACTOR (S) or by any consultants involved in this CONTRACT unless the EXECUTIVE ADMINISTRATOR of the BOARD approves in writing the right to establish copyright or patent; provided, however, that copyrighting or patenting by the SUBCONTRACTOR (S) or its SUB- SUBCONTRACTORs will in no way limit the BOARD's access to or right to request and receive or distribute data and information obtained or developed pursuant to this CONTRACT. Any material subject to a BOARD copyright and produced by the SUBCONTRACTOR (S) or BOARD pursuant to this CONTRACT may be printed by the SUBCONTRACTOR (S) or the BOARD at their own cost and distributed by either at their discretion. The SUBCONTRACTOR (S) may otherwise utilize such material provided under this CONTRACT as it deems necessary and appropriate, including the right to publish and distribute the materials or any parts thereof under its own name, provided that any BOARD copyright is appropriately noted on the printed materials. 11 The SUBCONTRACTOR (S) and its contracted parties agree to acknowledge the BOARD in any news releases or other publications relating to the work performed under this CONTRACT. "It is agreed that all reports, drafts of reports, or other material, data, drawings, computer programs and codes associated with this contract and developed by the (Name of SUBCONTRACTOR) pursuant to this contract shall become the joint property of the REGIONAL WATER PLANNING GROUP, (Name of SUBCONTRACTOR), (Name of SUB-SUBCONTRACTOR), and the Texas Water Development Board. These materials shall not be copyrighted or patented by the (Name of SUBCONTRACTOR). (Name of SUBCONTRACTOR) agrees that neither the Regional Water Planning Group nor the Texas Water Development Board are parties to this contract and agrees that that these entities have no liability under the terms of this contract. The Texas Water Development Board is solely athird-party beneficiary under this contract." 22. NO DEBT AGAINST THE STATE This SUBCONTRACT and Agreement shall not be construed as creating any debt by or on behalf of the State of Texas and the BOARD, and all obligations of the State of Texas are subject to the availability of funds. To the extent the performance of this SUBCONTRACT transcends the biennium in which this SUBCONTRACT is entered into, this SUBCONTRACT is specifically contingent upon the continued authority of the BOARD and appropriations therefore . 23. LICENSES, PERMIT, AND INSURANCE For the purpose of this CONTRACT, the SUBCONTRACTOR (S) will be considered an independent SUBCONTRACTOR and therefore solely responsible for liability resulting from negligent acts or omissions. The SUBCONTRACTOR (S) shall obtain all necessary insurance, in the judgment of the SUBCONTRACTOR (S), to protect themselves, the CONTRACTOR, the BOARD, and employees and officials of the BOARD from liability arising out of this CONTRACT. The SUBCONTRACTOR (S) shall indemnify and hold the BOARD and the State of Texas harmless, to the extent the SUBCONTRACTOR (S) may do so in accordance with state law, from any and all losses, damages, liability, or claims therefore, on account of personal injury, death, or property damage of any nature whatsoever caused by the SUBCONTRACTOR (S), arising out of the activities under this CONTRACT. The SUBCONTRACTOR (S) shall be solely and entirely responsible for procuring all appropriate licenses and permits, which may be required by any competent authority for the SUBCONTRACTOR (S) to pertorm the subject work. 24. COMPLIANCE WITH BOARD RULES AND STATE LAW The SUB-CONTRACTOR (S) shall comply with BOARD rules and adhere to all requirements in state law pertaining to the procurement of professional services. 12