Res 2026-015 approving an Out-of-Scope Services Agreement with Operations Maintenance International, Inc., also known as Jacobs, for a headworks septage receiving station rehabilitation at the City of San Marcos Wastewater Treatment Plant

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MARCOS shall inspect the work and furnish a certificate of acceptance or notify Contractor in writing of any work requiring completion or correction. Upon Substantial Completion, THE CITY OF SAN MARCOS shall pay Contractor the unpaid balance of this Out -of -Scope Agreement price, less a sum equal to Contractor's estimated cost of completing any unfinished items. Each month thereafter, THE CITY OF SAN MARCOS shall pay Contractor the amount retained for unfinished items as each item is completed. 9.3 Acceptance and Final Payment. Within five business days after receiving notice from Contractor that the work is completed or corrected, THE CITY OF SAN MARCOS will issue a certificate of acceptance. Final payment will be due within 15 days after the certificate of acceptance is issued. Contractor shall be relieved of any further responsibility for the services under this Out -of -Scope Agreement except for re - performance pursuant to Section 9 above. If THE CITY OF SAN MARCOS fails to issue such certificate or notice within the specified time, the services under this Out -of -Scope Agreement shall be deemed to be accepted for all purposes hereunder. 9.4 Waiver of Claims. Final payment shall constitute a waiver of all claims by THE CITY OF SAN MARCOS except those previously made in writing and identified by THE CITY OF SAN MARCOS as unsettled at the time of acceptance and those arising during the warranty period pursuant to Section 9 above. Acceptance of final payment shall constitute waiver of all claims by Contractor except those previously made in writing. 10. Suspension of Work by THE CITY OF SAN MARCOS: Contractor will, upon written notice fi•om THE CITY OF SAN MARCOS, suspend, delay, or interrupt all or a part of the work. In such event, Contractor will resume work upon writlen notice from THE CITY OF SAN MARCOS, and the Contract Time will be extended and Contract Price will be adjusted for demobilization, remobilization, standby and other costs incurred. If THE CITY OF SAN MARCOS does not direct Contractor to resume work within 90 days, Contractor may, in its discretion, treat the suspension as a Termination for Convenience pursuant to Article 32 of the Agreement. 11. Insurance and Bonds 11.1 In addition to the Insurance required pursuant to Section 15 of the Agreement, Contractor will maintain throughout the term of this Out -of -Scope Agreement the following insurance and will, if requested, submit certificates verifying such to THE CITY OF SAN MARCOS: 11.1.1 Subcontractor Builder's Risk Property Insurance including work and materials, upon the entire project for the full replacement cost at the time of loss. This insurance shall include as additional insureds THE CITY OF SAN MARCOS, Contractor, Subcontractors and Sub - subcontractors. The policy shall insure against direct risk of physical loss or damage including flood or other water damage, earthquake, transit, off premises storage, boiler and machinery, delay in opening, testing (both hot and cold), and damage resulting from defective design, or faulty workmanship or materials. Minimum deductible for all risks perils, flood, earthquake, business interruption, and delay in opening are subject to prevailing market conditions. 11.2 Waiver. THE CITY OF SAN MARCOS and Contractor waive all rights against each other as per the Agreement. THE CITY OF SAN MARCOS waives subrogation against Contractor, Subcontractors and Sub -subcontractors on all property and consequential loss policies carried by THE CITY OF SAN MARCOS on adjacent properties and under property and consequential loss policies purchased for the Project after its completion. 11.3 Bonds. Contractor shall furnish such bonds through the general contractor as may be required by this Out -of -Scope Agreement. Page 5 of 5