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. f '" c ~ C' . 2.04. Consultant Selection. The U. S. EPA has oromulgated Rules and Regulations regarding subagreements in 40 CFR 35. The City, must'fol~ow these guidelines when retaining consultant to conduct, or assist in conductlng tne III analysis. SECTION 3 - FEDERAL AND STATE GRANTS 3.01. General. The Commission agrees to submit the project and the, proposed cost to MPCA and U.S. EPA for inclusion under any standing grant offer, if eligibility requirements of the grant offer are met. If n~cessary, the Commission a9rees to apply for a grant amendment to include the project and the cost in the III program. The City agrees to keep detailed records of the cost of the project incurred by it. and to furnish this information to the Commission in order to enable the Commission to comply with the provisions of the grants. The Commission shall have the right to audit all project costs furnished by the City. 3.02. Local Costs. The City agr~esto pay the ten percent (10%) local share of the project cost. In addition, the City is responsible fQrproject costs determined not eligible for grant funding. The Commission is responsible for the local share of the administrative cost incurred by its employees or ;InV consulting and administrative services rendered under contract to the CommissioR. 3.03. Reimbursement. As the project progresses, the City may submit to the Commission detailed and certified statements of costs incurrred for the project to a specified date, and request the Commission to seek federal and state reimbursement for the costs so incurred. The Commission shall reimburse the City for grant eligible costs, as determined by the U.S. EPA Rules and Regulations or MPCA determination, as such funds are received by the Commission to the percentage or extent provided by the grants. Disbursement of funds received will be made after the MPCA has given technical approval of the work for which payment is re'luested. Upon receipt 'of grant funds for thj!.project, the Commission may reimburse to itself any qrant eligible costs incurred for the project, out only to the percentage or extent provided by the grants. SECTION 4 - M1INISTRATIVE PROVISIONS . 4.01. Amendments. This agreement may be modified only by written amendment executed by the, City and the Commissio~. 4.02. Effectiveness. This agreement shall be effective upon its execution by the City and the Commission. 4.03. Termination. This agreement shall tenninate upon completion of all actions required of the parties hereund~r. 4.04. Severability. The provisions of this Agreement are severable, and the invalidity or impossibility of performance of any of them shall not invalidate or render ineffective any other provision. V-3