R2021-105 Resolution Authorizing a Water Tank Maintenance Contract with Utility Service Co., Inc. for the Franklin Street Water Tank Maintenance

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2. Contract Price/Annual Fees. The tank shall receive a mixing system installation and repairs prior to the end of Contract Year 1. The tank shall receive an exterior renovation and interior renovation prior to the end of Contract Year 4. The first three (3) annual fees shall be $13,000.00 per Contract Year. The annual fees for Contract Years 4, 5, and 6 shall be $185,515.00 per Contract Year. The annual fee for Contract Year 7 shall be $45,103.00. Each anniversary thereafter, the annual fee shall be adjusted to reflect the current cost of service. The adjustment of the annual fee shall be limited to a maximum of 5% annually. All applicable taxes are the responsibility of the Owner and are in addition to the stated costs and fees in this Contract. A"Contract Year" shall be defined as each consecutive 12-month period following the first day of the month in which the Contract is executed by the Owner and each subsequent 12-month period thereafter during the time the Contract is in effect. For example, if a contract was signed by an Owner on April 17, 2019, Contract Year 1 for that contract would be April 1, 2019 to March 31, 2020, and Contract Year 2 for that contract would be April 1, 2020 to March 31, 2021 and so on. 3. Payment Terms. The annual fee for Contract Year 1, plus all applicable taxes, shall be due and payable upon completion of the initial mixing system installation and repairs. Each subsequent annual fee, plus all applicable taxes, shall be due and payable on the first day of each Contract Year, thereafter. (Note: Due to the length of time that it takes to perform the initial renovation project, it is possible that two (2) annual fees could fall within one budget year for the Owner). Furthermore, if the Owner elects to terminate this Contract prior to remitting the first six (6) annual fees, then unpaid balance of the first six (6) annual fees shall be due and payable within thirty (30)days of the Company's receipt of the Owner's Notice to Terminate. 4. Structure of Tank. The Company is accepting this tank under program based upon its existing structure and components. Any modifications to the tank, including antenna installations, shall be approved by Utility Service Co., Inc.,prior to installation and may warrant an increase in the annual fee. 6. Environmental, Health, Safety, or Labor Requirements. The Owner hereby agrees that future mandated environmental, health, safety, or labor requirements as well as changes in site conditions at the tank site which cause an increase in the cost of tank maintenance will be just cause for modification of this Contract. Said modification of this Contract will reasonably reflect the increased cost of the service with a newly negotiated annual fee. The work performed under this Contract is subject to prevailing wages, and the workers who are performing work under this Contract are to be paid no less than the prevailing hourly rate of wages as set by the appropriate authority. Any future work performed by workers under this Contract will be subject to the wage determination of the appropriate authority which is in effect when the work is performed. However, the Owner and the Company hereby agree that if the prevailing wage rates for any job or trade classification increases by more than 5% per annum from the effective date of this Contract to the date in which any future work is to be performed under this Contract, then the Company reserves the right to re-negotiate the annual fee(s) with the Owner. If the Company and the Owner cannot agree on re-negotiated annual fee(s), then: (1) the Company will not be obligated to perform the work and (2) the Company will not be obligated to return past annual fee(s) received by the Company. Page 3 of 7 ©2020 Utility Service Co., Inc. Rev.09/20