Res 2005-105 - Laserfiche WebLink

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The City of San Marcos Facilities Service Contract any time shall, to the extent permitted by Applicable Law, be deemed added to the amount due as accrued. SECTION 15.6. NEGOTIATED FIXED PRICE WORK. (A) Base Fee Component of the Service Fee. The Hase Fee Component of the Service Fee has been fIxed and agreed to by the parties based on the Company's proposal submitted in response to the RFP, and is not subject to Cost Substantiation. (H) Negotiated Lump Sum Pricing of Work for Which the City is Financially Responsible. This Service Contract obligates the City to pay for certain costs resulting from Uncontrollable Circumstances, City Hreach and otherwise as more specifically provided herein. It is the expectation of the parties, in general, that the City will pay for such costs on a negotiated, lump sum basis, and that the lump sum price will be negotiated in advance of the Company's performance of the work. For example, if a Change in Law occurs, as required under Section 13.2 the parties will assess the impact of the Change in Law, take all appropriate mitigation steps, determine any necessary Capital Modifications and operating changes, and agree upon lump sum pricing therefor. To facilitate such negotiations, the Company shall fumish the City with all information reasonably required by the City regarding the Company's expected costs of performing the work and its mark-up. Once the parties agree upon the lump sum price, the Company's actual costs of performance shall not be subject to Cost Substantiation unless after-the-fact Cost Substantiation with respect to all or a portion of the Company's actual costs was agreed to by the parties in establishing the lump sum price. SECTION 15.7. COST SUHSTANTIATION. (A) Cost Substantiation Generally. The Company shall provide Cost Substantiation for the costs for which the City is financially responsible hereunder, other than the Hase Fee Component of the Service Fee, and costs for which the parties have negotiated a lump sum price, all as provided in Section 15.6. In incurring costs which are or may be subject to Cost Substantiation, the Company shall utilize competitive practices to the maximum reasonable extent (including, where practicable and except with respect to costs of the Company to which the Service Fee applies, obtaining three competing quotes or estimates, and shall enter into subcontracts on commercially reasonable terms and prices in light of the work to be performed and the City's potential obligation to pay for it. (B) Costs Requiring Cost Substantiation. Cost Substantiation shall be provided as soon a reasonably practicable after the costs which require substantiation have been incurred by the Company. Examples of costs which require substantiation include (1) Corrective Maintenance, (2) work done on an emergency basis to respond to an Uncontrollable Circumstance, where it is not reasonably practicable for the parties in advance to negotiate a lump sum price for the work, and (3) work done as a Change Order authorized 102