1. (a) This Interagency Contract is entered into by and between the State agencies shown below as Contracting Parties, pursuant to the authority granted and in compliance with the provisions of Chapter 771, Texas Government Code.
2. (b) Contracting Parties. The Texas Water Development Board (Board), the Texas Commission on Environmental Quality (Commission), and the Department of State Health Services (DSHS).

3. (c) Statement of Work.

   1. (1) Upon the Board's request, DSHS shall conduct public health nuisance surveys for the Board on behalf of applicants for financial assistance through the Board's Economically Distressed Areas Program (EDAP). Each survey shall include a final determination by DSHS as to whether a public health nuisance exists that is dangerous to public health and safety and that results from water supply and/or sanitation problems in the area to be served by the proposed project. All work will be performed in a diligent and timely manner, in accordance with DSHS guidelines agreed upon by the participating agencies. Public health nuisance determinations by DSHS under this Contract shall be final.
   2. (2) Requests for public health nuisance surveys shall originate from the Board's deputy executive administrator with oversight of the Economically Distressed Areas Program or that person's designee. Requests will be in writing, by means of postal or electronic mail.
   3. (3) The Board and the Commission shall reimburse DSHS for actual costs incurred for the performance of each survey. DSHS shall adhere to the applicable State of Texas Travel allowances.

4. (d) Contract Amount.

   1. (1) The total amount of this Contract shall not exceed Two Hundred Fifty Thousand Dollars ($250,000 ($125,000 per State of Texas fiscal year)) in reimbursement and payments to DSHS. The Board and the Commission shall not pay more than One Hundred and Twenty-Five Thousand Dollars ($125,000) each to DSHS for the biennium.
   2. (2) DSHS understands and agrees that the amount actually paid under this Contract shall be only for the performance of public health nuisance surveys specifically requested by the Board and that the full amount of this Contract may not be expended during the term of this Contract.

5. (e) Payment.

   1. (1) DSHS shall be reimbursed for its actual, reasonable, and necessary costs incurred while conducting public health nuisance surveys for the Board on behalf of applicants for financial assistance through the Board's Economically Distressed Areas Program. Actual, reasonable, and necessary costs include but are not limited to costs for administrative review, field work, report preparation, and travel.
   2. (2) The Board shall reimburse DSHS for fifty percent (50%) of its actual, reasonable, and necessary costs incurred while conducting public health nuisance surveys for the Board on behalf of applicants for financial assistance through the Board's Economically Distressed Areas Program up to an amount not to exceed One Hundred Twenty-Five Thousand Dollars ($125,000) for the biennium.
   3. (3) The Commission shall reimburse DSHS for the remaining fifty percent (50%) of its actual, reasonable, and necessary costs incurred while conducting public health nuisance surveys for the Board on behalf of applicants for financial assistance through the Board's Economically Distressed Areas Program up to an amount not to exceed One Hundred Twenty-Five Thousand Dollars ($125,000) for the biennium.
   4. (4) DSHS shall submit requests for reimbursement of costs in the form of a cumulative summary "Outlay Report and Request for Reimbursement," Exhibit A, (Outlay Report) with line itemized documentation as required by the Board. Each Outlay Report shall also include a separate original invoice detailing the specific amount the Commission is being requested to pay. Requests for reimbursement shall be submitted on the Outlay Report on a per project basis as costs are incurred.

   5. (5) Outlay Reports shall be submitted by DSHS concurrently to:

      1. (A) Staff Services and Contract Administration, Texas Water Development Board, Attn: Agency Contract Administrator, P.O. Box 13231, Austin, Texas 78711-3231; (512) 463-3154; and
      2. (B) Texas Commission on Environmental Quality, Attn: Contract Manager, Financial Support Section, Field Operations Division, 12100 Park 35 Circle, Bldg. A, MC 174, Austin, Texas 78753.
   6. (6) The Board and the Commission will independently review all submitted requests for reimbursement and process such requests in a timely manner. Upon approval of the Outlay Report, the Board and Commission shall separately make required payments to DSHS.
   7. (7) DSHS shall maintain financial accounting documents and records in accordance with generally accepted governmental accounting practices and procedures. Such documents and records shall include copies of invoices, receipts, and approved travel vouchers. DSHS shall make such documents and records available for examination and audit by the Board or the Commission upon request.
   8. (8) DSHS accepts the authority of the State Auditor's Office to conduct audits and investigations in connection with any and all state funds received pursuant to this Contract. DSHS shall comply with and cooperate in any such investigation or audit. DSHS also agrees to include a provision in any subcontract related to this Contract that requires the subcontractor to submit audits to, and agree to investigation by, the State Auditor's Office in connection with any and all state funds received pursuant to the subcontract.

6. (f) Term of Contract.

   1. (1) This Contract is effective beginning October 1, 2009 and expires upon the occurrence of either of the following:

      1. (A) automatically upon failure of the legislature to authorize appropriations; or
      2. (B) upon thirty day written notice by one of the parties to the other parties.
   2. (2) In the event of the occurrence of conditions in paragraph (1) of this subsection, funding shall continue until reimbursement is made to DSHS of all unreimbursed eligible expenses incurred, as described under subsection (e) of this section.

7. (g) Notices.

   1. (1) Requests for EDAP surveys should be sent to: Kathryn C. Perkins, RN, MBA, Assistant Commissioner, Division for Regulatory Services, Texas Department of State Health Services, P.O. Box 149347, MC 1949, Austin, Texas 78714-9347.

   2. (2) Other than requests for reimbursement and for EDAP surveys, all notices between the parties under this Contract shall be sent to:

      1. (A) Texas Water Development Board, Attn: Deputy Executive Administrator, Project Finance and Construction Assistance, P.O. Box 13231, Austin, Texas 78711-3231;
      2. (B) Texas Commission on Environmental Quality, Attn: Contract Manager, Financial Support Section, Field Operations Division, P.O. Box 13087, MC 174, Austin, Texas 78711-3087; and
      3. (C) Department of State Health Services Client Services Contracting Unit Attn: Contract Manager MC 1886 P.O. Box 149347 Austin, Texas 78714-9347.
8. (h) Severance Provision. Should any one or more provisions of the Contract be held to be null, void, or for any reason without force or effect, such provision(s) shall be construed as severable from the remainder of the Contract and shall not affect the validity of all other provisions of the Contract, which shall remain in full force and effect.
9. (i) Amendment. The Contract may be amended only in writing at any time by the mutual consent of the Board, the Commission, and DSHS and by the officials indicated below or their designees.
10. (j) Miscellaneous Provisions. Force Majeure: DSHS may be excused from performance under this Contract for any period when performance is prevented as the result of an act of God, strike, war, civil disturbance, epidemic, or court order, provided that the party experiencing the event of Force Majeure has prudently and promptly acted to take any and all steps that are within the party's control to ensure performance and to shorten the duration of the event of Force Majeure. The party suffering an event of Force Majeure shall provide notice of the event to the other parties as soon as practicable but not later than 36 hours after the termination of the event. Subject to this provision, such nonperformance shall not be deemed a default or a ground for termination.

11. (k) Certifications.

    1. (1) The Undersigned Parties do hereby certify as follows:

       1. (A) that the services above are necessary and essential for activities that are properly within the statutory functions and programs of the affected agencies of State Government;
       2. (B) that the proposed arrangements serve the interest of efficient and economical administration of the State Government; and
       3. (C) that the services, supplies, or materials contracted for are not required by §21 of Article 16 of the Constitution of Texas to be supplied under contract given to the lowest responsible bidder.
    2. (2) The Board further certifies that it has the authority to enter into this Contract by authority granted in Chapter 6, §6.190 of the Texas Water Code and Chapter 771 of the Texas Government Code.
    3. (3) The Commission further certifies that it has the authority to enter into this Contract by authority granted in Chapter 5, §5.229 of the Texas Water Code and Chapter 771 of the Texas Government Code.
    4. (4) DSHS further certifies that it has authority to enter into this Contract and to perform the services of this Contract by authority granted in Chapter 2, §17.933(b) of the Texas Water Code, Chapter 1001 of the Texas Health and Safety Code, and Chapter 771 of the Texas Government Code.

Source Note:The provisions of this §354.6 adopted to be effective July 26, 2010, 35 TexReg 6351.