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<br />City of San Marcos/Guadalupe-Blanco River Authority <br />Water Treatment Facilities <br /> <br />Service Contract <br />Article XN - Miscellaneous Provisions <br /> <br />for Contract Services valued in excess of $25,000 (as adjusted annually by the Service Fee <br />Adjustment Factor) annually, except: (1) Mfiliates of the Authority; (2) equipment suppliers; <br />(3) Governmental Bodies; and (4) suppliers of Consumables and chemicals. The Authority shall <br />furnish the City written notice of its intention to engage Subcontractors requiring City <br />approval, and shall furnish all information reasonably requested by the City pertaining to the <br />demonstrated responsibility of the proposed Subcontractors. The City's approval will not be <br />unreasonably withheld or delayed. In the event the City fails to respond to any such notice of <br />intention within 15 days of receipt thereof, the City shall be deemed to have approved the <br />proposed Subcontractor. The approval or withholding thereof by the City of any proposed <br />Subcontractor shall not create any liability of the City to third parties or otherwise unless the <br />City's withholding is unreasonable. In no event shall any Subcontract be awarded to any <br />person debarred, suspended or disqualified from State or City contracting for any services <br />similar in scope to the Contract Services. <br />(C) Subcontract Terms and Subcontractor Actions. The Authority shall <br />retain full responsibility to the City under this Service Contract for all matters related to the <br />Contract Services notwithstanding the execution or terms and conditions of any Subcontract. <br />No failure of any Subcontractor used by the Authority in connection with the provision of the <br />Contract Services shall relieve the Authority from its obligations hereunder to perform the <br />Contract Services. The Authority shall be responsible for settling and resolving with all <br />Subcontractors all claims arising out of delay, disruption, interference, hindrance, or schedule <br />extension caused by the Authority or inflicted on the Authority or a Subcontractor by the <br />actions of another Subcontractor. <br />(D) Payment of Subcontractors. The Authority shall payor cause to be paid <br />all Subcontractors it may retain in the execution of its responsibility under this agreement all <br />amounts due in accordance with their respective Subcontracts. No Subcontractor shall have <br />any right against the City for labor, services, materials or equipment furnished for the Contract <br />Services. The City shall be responsible for any third-party contractor it may retain or cause to <br />be retained. <br /> <br />(E) Nondiscrimination. The Authority shall include a nondiscrimination <br />provision similar to that contained in Section 14.16 in any of the Authority's contracts with <br />Subcontractors that perform services related to the Facilities. <br />SECTION 14.9. ACTIONS OF THE CITY IN ITS GOVERNMENTAL CAPACITY. <br /> <br />(A) Rights as Government Not Limited. Nothing in this Service Contract shall be interpreted as <br />limiting the rights and obligations of the City under Applicable Law in its governmental or <br />regulatory capacity (including police power actions to protect health, safety and welfare or to <br />protect the environment), or as limiting the right of the Authority to bring any action against <br /> <br />92 <br />