Res 2005-105 - Laserfiche WebLink

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The City of San Marcos Facilities Service Contract ARTICLE X CAPITAL MODIFICATIONS SECTION 10.1. CAPITAL MODIFICATIONS GENERALLY. (A) Purpose. The parties acknowledge that it may be necessary or desirable from time to time during the term of the Service Contract to modify, alter or improve the Facilities in their then-current condition, either at the request of the Company or at the request of the City due to growth, expansion or otherwise, or as a result of a Change in Law. Capital Modifications shall be the general responsibility of the City. The Company shall provide a reasonable level of design input regarding any modifications proposed by the City. Capital Modifications may be financed by the City through the issuance of bonds or such other method as may be determined by the City. (B) City Approval and Change Orders Proposed bv the Company. The City shall have the right, in its sole discretion, to approve or reject all Capital Modifications. The City's approval shall be given by means of a "Change Order," which shall contain all material information required by this Article. All Capital Modifications shall be made and implemented in accordance with this Article. The City shall have the express right to condition its approval of a Capital Modification upon the sharing of net cost savings expected, if any, to result therefrom as provided in subsection (D) of this Section. The City shall retain all planning responsibility for Capital Modifications and all other capital facilities related to the Facilities. (C) Party Responsible for Costs. The City shall bear the cost and expense of all Capital Modifications and related operation, maintenance, repair and replacement costs (other than as part of an enforcement action taken in response to a breach hereof), unless otherwise agreed to in writing by the parties. (D) Cost Savings. In the event any Capital Modification is reasonably expected to result in a net cost savings to the Company, the parties shall negotiate in good faith the extent to which any such net cost savings shall be shared with the City, and the Service Fee shall be reduced accordingly. (E) Capital Modifications Financing. Capital Modifications may be financed by the City through the issuance of bonds or such other method as may be determined by the City. SECTION 10.2. CAPITAL MODIFICATIONS AT COMPANY REQUEST. The Company may request that a Capital Modification be undertaken either at its cost or the City's cost by giving the City written notice of, and reasonable opportunity to review and comment upon, any such Capital Modification proposed to be made at the Company's request. The notice shall contain sufficient information for the City to determine that the Capital 70