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<br />The City of San Marcos Facilities Service Contract <br /> <br />maintaining and upgrading the Facilities. Database entry and maintenance for Facilities items <br />shall be the responsibility of the Company. <br />SECTION 9.5. DISPOSAL OF SURPLUS EQUIPMENT. The Company may, <br />with the approval of the City, remove from the Facilities and dispose of or sell, in accordance <br />with Applicable Law, equipment constituting part of the Facilities that is unused or obsolete <br />and no longer needed. All proceeds from any sale, net of the Company's expense in arranging <br />the sale, shall be the property of the City. The Company shall not store or stockpile any such <br />removed equipment at the Facilities. <br />SECTION 9.6. WARRANTIES. During the Term of this Service Contract, the <br />Company shall be responsible for meeting the City's maintenance obligations under all <br />manufacturer's written warranties on new equipment purchased and installed in the Facilities <br />by the City or by the Company, and shall be the agent of the City in enforcing any written <br />equipment warranties and guarantees. The Company shall not be required to commence or <br />maintain any litigation with respect to such warranties or guarantees, but may do so in its <br />discretion. The Company shall cooperate with and assist the City if the City seeks to enforce <br />warranties and guarantees through litigation. <br />SECTION 9.7. LOSS, DAMAGE OR DESTRUCTION TO THE FACILITIES. <br />(A) Prevention and Repair. The Company shall use care and diligence, and shall take all <br />appropriate precautions, to protect the Facilities from loss, damage or destruction. The <br />Company shall report to the City and the insurers, immediately upon obtaining knowledge <br />thereof, any loss, damage or destruction to the Facilities and as soon as practicable thereafter <br />shall submit a full report to the City. The Company shall also submit to the City within 24 <br />hours of receipt copies of all accident and other reports filed with, or given to the Company by, <br />any person, insurance Company, adjuster or Govemmental Body. The parties shall cooperate <br />so as to promptly commence and proceed with due diligence to complete the repair, <br />replacement and restoration of the Facilities to at least the character and condition thereof <br />existing immediately prior to the loss, damage or destruction, in accordance with and subject <br />to the procedures set forth in Article X and Article XIII, as applicable. The City shall have the <br />right to monitor, review and inspect the performance of any repair, replacement and restoration <br />work by the Company. <br />(B) Insurance and Other Third Party Payments. To the extent that any <br />repair, replacement or restoration costs incurred pursuant to this Section can be recovered <br />from any insurer or from another third party, each party shall assist the other in exercising <br />such rights as it may have to effect such recovery. Each party shall provide the other withrcopies of all relevant documentation at no cost to the other party, and shall cooperate with and <br />assist the other party upon request by participating in conferences, negotiations and litigation <br />regarding insurance claims. <br /> <br />68 <br />