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<br />The City of San Marcos Facilities Service Contract <br /> <br />requested by the City pertaining to the responsibility of the proposed Subcontractor. In the <br />event the City fails to respond to any such notice of intention within 15 days of receipt thereof, <br />the City shall be deemed to have approved the proposed Subcontractor. The approval or <br />withholding thereof by the City of any proposed Subcontractor shall not create any liability of <br />the City to the Company, to third parties or otherwise. In no event shall any Subcontract be <br />awarded to any person debarred, suspended or disqualified from State or City contracting for <br />any services similar in scope to the Contract Services. <br />(C) Subcontract Terms and Subcontractor Actions. The Company 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 Company in connection with the provision of the <br />Contract Services shall relieve the Company from its obligations hereunder to perform the <br />Contract Services. The Company 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 Company or inflicted on the Company or a Subcontractor by the <br />actions of another Subcontractor. <br />(D) Indemnity for Subcontractor Claims. The Company shall payor cause to <br />be paid to all direct Subcontractors all amounts due in accordance with their respective <br />Subcontracts. No Subcontractor shall have any right against the City for labor, services, <br />materials or equipment furnished for the Contract Services. The Company acknowledges that <br />its indemnity obligations under Section 13.3 shall extend to all claims for payment or damages <br />by any Subcontractor who furnishes or claims to have furnished any labor, services, materials <br />or equipment in connection with the Contract Services. <br />(E) Assignability. All Subcontracts entered into by the Company with <br />respect to the Facilities shall be assignable to the City, solely at the City's election and without <br />cost or penalty, upon the expiration or termination of this Service Contract. <br />SECTION 15.9. ACTIONS OF THE CITY IN ITS GOVERNMENTAL CAPACITY. <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 Company to bring any action against <br />the City, not based on this Service Contract, arising out of any act or omission of the City in its <br />governmental or regulatory capacity. <br />(H) No City Obligation to Issue Governmental Approvals. The City retains all <br />issuance and approval rights it has under Applicable Law with respect to any Governmental <br />Approval required vvith respect to the Facilities, or the Contract Services, and none of such <br />rights shall be deemed to be waived, modified or amended as a consequence of the execution of <br /> <br />104 <br />