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HomeMy WebLinkAboutHoneywell Agreement Augusta Richmond GA DOCUMENT NAME: ).\ON ~I We: L.L A~ ,.e.~CP?e:-NT' DOCUMENT TYPE: A ~ (Z.E:: Ern E.oV'- YEAR: ?DD ~ BOX NUMBER: \ <is Iloio~Lf FILE NUMBER: NUMBER OF PAGES: 30 AUGUSTA-RICHMOND COUNTY COMMISSION BOB YOUNG Mayor STAFF ATTORNEYS VANESSA FLOURNOY SPARTICUS HEYWARD LEE BEARD TOMMY BOYLES ULMER BRIDGES ANDY CIIEEK BOBBY G. HANKERSON WILLIAM 8, KUHLKE, JR, WM, "WILLIE" H, MAYS, III STEPHEN E. SIIEPARD MARION WILLIAMS JAMES B. WALL CITY ATTORNEY AUGUSTA LA W DEPARTMENT RICHARD L. COLCLOUGH Mayor Pro Tern GEORGE R. KOLB Administrator Please Reply to: Hatcher 500 Bldg. 501 Greene St., Suite 302 Augusta, GA 30901 (706) 842-5550 Fax (706) 842-5556 S Heyward@co.richmond.ga.us MEMORANDUM TO: FROM: Bob Young, Mayor ffl Sparticus Heyward, Staff Attorne~ SUBJECT: Honeywell Agreement DATE: March 3, 2003 Please sign the partially executed water meter contracts and return one copy to: Steven J. Little, CPA Assistant Director of Finance and Administration Augusta Utilities Department 360 Bay Street, Suite 180 Augusta, Georgia 30901 If you have any questions or concerns, you may contact me at (706) 842-5550. Enclosures CC: Steven J. Little Office of The Clerk of Commission Lena J. Bonner, CMC Clerk of Commission Nancy Morawski Deputy Clerk Room 806 - Municipal Building 530 Greene Street - AUGUSTA, GA. 30911 (706) 821-1820 - FAX (706) 821-1838 MEMORANDUM TO: Mr. Steve J. Little, CPA, Asst. Director Augusta Utilities FROM: Lena J. Bonner, Clerk of Commission DATE: March 4, 2003 SUBJECT: Honeywell Agreement As requested by Staff Attorney Sparticus Heyward, enclosed is a copy of the above reference document. Enclosures: Cc: Mr. Sparticus Heyward, Staff Attorney wlo enclosure HONEYWELL AGREEMENT CUSTOMER NAME: Augusta, Georgia V ALIDITY PERIOD: Rev. 04/02 TABLE OF CONTENTS ARTICLE PAGE 1. GENERAL PRO "VISION S ................... ................ ... ........... ............ .... ..... ..... ..... ...... .... ..... ..... ..... ..... ......1 2. HONE YWELL 's RESPONSIBILITIES.... .......... ....... ..................... ....... ..... ......... ...... ............ ........ ....1 3 . CUSTOMER'8 RESPO NSIB ILITIES.... ..... .... ... ............ .... ... ......... ....... ..... ..... .... ..... .......... ..... ...... ... ... 3 4. S VB CONTRA C1~S ..................... ..... ........... ......... ................. .......... ........... ..... ..... ...... ......... ..... ..... ... .......3 5 . INSTALLATION.. ............... ........ ..... .... ....... .... ...... ........... ........ ........ ........ ....... ............. .................... ....3 6. PRICE AND PAYMENT .......................................................................................................................3 7. CHANGES IN THE PROJECT ...........................................................................................................4 8. INSURANCE, INDEMNITY, AND LIMITATION OF LIABILITY..............................................4 9. TERMINATION OF THE AGREEMENT .........................................................................................5 10. ASSIGNMENT AND GOVERNING LA W .........................................................................................5 11. MIS CELLANEO US PROVISIONS.. ......... ....... ..... ..... ..... .......... ........... ................ ............................ ...5 12. ATTACHMENT A ATTACHMENT B ATTACHMENT C ATTACHMENT D THE WORK (SCOPE-OF-WORK) THE INSTALLATION SCHEDULE PA YMENT SCHEDULE WATER GUARANTEE Note Regarding Modifications Made to this Agreement: Provisions in the printed document that are not to be included in the agreement may be deleted by striking through the word, sentence or paragraph to be omitted. It is recommended that unwanted provisions not be made illegible, The parties should be clearly aware of the material deleted from the standard form. Do not make any modifications to this Agreement unless approval to do so has been granted. Changes may be made only by deletion as explained above. or. by addendum. Rev. 04/02 ARTICLE 1 GENERAL PROVISIONS 1.1 This Agreement, including all Attachments, Exhibits, and Schedules referenced herein (hereinafter the "Agreement") is made this day of , 200_ (the "Effective Date") by and between Honeywell DMC Services, L.L.C, ("HONEYWELL"), a Massachusetts Corporation, with a principal place of business at Stonehill Corporate Center, 999 Broadway, Saugus, MA 01906, and AUGUSTA, GEORGIA, a political subdivision of the State of Georgia ("CUSTOMER") with a principal place of business at 530 Greene Street, Augusta, Georgia 30911 (collectively the "Parties"). 1.2 EXTENT OF AGREEMENT: This Agreement, including all attachments and exhibits hereto, represents the entire agreement between CUSTOMER and HONEYWELL and supersedes all prior negotiations, representations or agreements. This Agreement shall not be superseded by any provisions of the documents for construction and may be amended only by written instrument signed by both CUSTOMER and HONEYWELL. None of the provisions of this Agreement shall be modified, altered, changed or voided by any subsequent Purchase Order issued by CUSTOMER, which relates to the subject matter of this Agreement. 1.3 As used in this Agreement, the term "Work" means the construction ancl services requirecl by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment and services provided or to be provided by HONEYWELL to fulfill HONEYWELL's obligations, as described in Attachment A and otherwise set forth in the Contract Documents. The Work may constitute the whole or a part of the Project. The Work specifically excludes certain design and construction, which are the subject of separate agreements between CUSTOMER and parties other than HONEYWELL. 1.4 The Project is the total construction of which the Work performed by HONEYWELL under this Agreement may be the whole or a part. 1.5 The Contract Documents consist of this Agreement, its attachments, exhibits, schedules, and addenda, 1.6 Installation Schedule means that schedule set out in Attachment B describing the Parties' intentions respecting the times by which the components or aspects of the Work therein set forth shall be installed and/or ready for acceptance or beneficial use by CUSTOMER. ARTICLE 2 HONEYWELL'S RESPONSIBILITIES 2.1 HONEYWELL Services 2.1.1 HONEYWELL shall be responsible for construction of the Project. Equipment shall be provided by Badger Meter, Inc, and Itron, Inc, pursuant to the contract between HONEYWELL and said providers, this equipment shall be rendered for the interest of, ancl paid by, HONEYWELL. 2.2 Responsibilities with Respect to the Work 2.2.1 HONEYWELL will provide construction supervision, inspection, labor, materials, tools, construction equipment and subcontracted items necessary for the execution and completion of the Work. 2.2.2 HONEYWELL shall keep the premises in an orderly fashion and free from unnecessary accumulation of waste materials or rubbish caused by its operations, If HONEYWELL damages property not needed for the Work, HONEYWELL shall repair the property to its pre- existing condition unless CUSTOMER directs otherwise. At the completion of the Work, HONEYWELL shall remove waste material supplied by HONEYWELL under this Agreement as well as all its tools, construction equipment, machinery and surplus material. HONEYWELL shall dispose of all waste materials or rubbish caused by its operations; provided, that unless otherwise specifically agreed to in this Agreement, HONEYWELL shall not be responsible for disposal of toxic or hazardous materials that may reside at the facilities 2.2.3 HONEYWELL shall give all notices and comply with all laws ancl ordinances legally enacted as of the date of execution of the Agreement governing the execution of the Work, Provided, however, that HONEYWELL shall not be responsible nor liable for the violation of any code, law or ordinance caused by CUSTOMER or CUSTOMER's rate-payers or existing in CUSTOMER's rate-payer's property prior to the commencement of the Work. 2.2.4 HONEYWELL shall comply with all applicable federal, state and municipal laws and regulations that regulate the health and safety of its workers while providing the Work, and shall take such measures as required by those laws ancl regulations to prevent injury and accidents to other persons on, about or adjacent to the City of Augusta, GA 2002 site of the Work, It is understood and agreed, however, that HONEYWELL shail have no responsibility for elimination or abatement of health or safety hazards created or otherwise resulting from activities at the site of the Work carried on by persons not in a contractual relationship with HONEYWELL, including CUSTOMER, CUSTOMER's rate-payers, contractors or subcontractors, CUSTOMER's tenants or CUSTOMER's visitors, CUSTOMER agrees to cause its contractors, subcontractors and tenants to comply fully with all applicable federal, state and municipal laws and regulations governing health and safety and to comply with all reasonable requests and directions of HONEYWELL for the elimination or abatement of any such health or safety hazards at the site of the work. 2.3 Patent Indemnitv 2.3.1 HONEYWELL shall, at its expense, defend or, at its option, settle any suit that may be instituted against CUSTOMER for alleged infringement of any United States patents related to the hardware manufactured and provided by HONEYWELL, provided that: 1. Such alleged infringement consists only in the use of such hardware by itself and not as part of, or in combination with, any other devices, parts or software not provided by HONEYWELL hereunder; 2. CUSTOMER gives HONEYWELL immediate notice in writing of any such suit and permits HONEYWELL, through counsel of its choice, to answer the charge of infringement and defend such suit; and 3. CUSTOMER gives HONEYWELL all needed information, assistance and authority, at HONEYWELL's expense, to enable HONEYWELL to defend such suit. 2.3.2 If such a suit has occurred, or in HONEYWELL's opInIOn is like]y to occur, HONEYWELL may, at its election and expense: obtain for CUSTOMER the right to continue using such equipment; or replace, correct or modify it so that it is not infringing; or remove such equipment and grant CUSTOMER a credit therefore, as depreciated, 2.3.3 In the case of a final award of damages in any such suit, HONEYWELL will pay such award. HONEYWELL shall not, however, be responsible for any settlement made without its written consent. 2.3.4 THIS ARTICLE STATES HONEYWELL'S TOTAL LIABILITY AND CUSTOMER'S SOLE REMEDY FOR ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY PATENT BY THE HARDWARE MANUFACTURED AND PROVIDED BY HONEYWELL HEREUNDER. IN NO EVENT SHALL HONEYWELL BE LIABLE FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM ANY SUCH ACTUAL OR ALLEGED INFRINGEMENT, EXCEPT AS SET FORTH IN THIS SECTION 2.3. 2.4 Warranties and Completion 2.4.1 HONEYWELL warrants CUSTOMER good and clear title to all equipment and materials furnished to CUSTOMER pursuant to this Agreement (except any licensed software, which shall be governed exclusively by the party holding such rights), free and clear of liens and encumbrances, HONEYWELL hereby warrants that all such equipment and materials shall be of good quality and shall be free from defects in materials and workmanship, including installation and setup, for a period of one (I) year from the date of beneficial use or substantial completion of the equipment or portion of the Work in question, provided that no repairs, substitutions, modifications, or additions have been made, except by HONEYWELL or with HONEYWELL's written permission, and provided that after delivery such equipment or materials have not been subjected by non- HONEYWELL personnel to accident, neglect, misuse, or use in violation of any instructions supplied by HONEYWELL. HONEYWELL's sole liability hereunder shall be to repair promptly or replace defective equipment or materials, at HONEYWELL's option and at HONEYWELL's expense. The limited warranty contained in this Section 2.4.1 shall constitute the exclusive remedy of CUSTOMER and the exclusive liability of HONEYWELL for any breach of any warranty related to the equipment and materials furnished by HONEYWELL pursuant to this Agreement. 2.4.2 In addition to the warranty set forth in Section 2.4.1 above, HONEYWELL shall, at CUSTOMER's request, assign to CUSTOMER any and all manufacturer's or installer's warranties for equipment or materials not manufactured by HONEYWELL and provided as part of the Work, to the extent that such third-party warranties are assignable and extend beyond the one (1) year limited warranty set forth in Section 2.4.1, 2.4.3 THE WARRANTIES SET FORTH HEREIN ARE EXCLUSIVE, AND HONEYWELL EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE EQUIPMENT AND MA TERIALS PROVIDED HEREUNDER. HONEYWELL SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING FROM, OR RELA TING TO, THIS LIMITED WARRANTY OR ITS BREACH. City of Augusta, GA 2002 2 ARTICLE 3 CUSTOMER'S RESPONSIBILITIES 3.1 CUSTOMER shall provide HONEYWELL full information regarding the requirements for the Work, 3.2 CUSTOMER shall designate a representative who shall be fully acquainted with the Work, and who has authority to approve changes in the scope of the Work and render decisions promptly, 3.3 CUSTOMER shall furnish to HONEYWELL all information regarding legal limitations, utility locations and other information reasonably pertinent to this Agreement, the Work and the Project. 3.4 If CUSTOMER becomes aware of any fault or defect in the Work, it shall gIve prompt written notice thereof to HONEYWELL. 3.5 The services and information required by the above paragraphs shall be furnished with reasonable promptness at CUSTOMER's expense and HONEYWELL shall be entitled to rely upon the accuracy and the completeness thereof, 3.6 Prior to the commencement of the Work and at such future times as HONEYWELL shall reasonably deem appropriate, CUSTOMER shall furnish evidence in a form satisfactory to HONEY\VELL that sufficient funds are available and committed to pay for the Work, Unless such evidence is furnished, HONEYWELL is not required to commence or continue any Work. Further, if CUSTOMER does not provide such evidence, HONEYWELL may stop work upon fifteen (15) days notice to CUSTOMER. The failure of HONEYWELL to insist upon the providing of this evidence at anyone time shall not be a waiver of CUSTOMER's obligation to make payments pursuant to this Agreement, nor shall it be a waiver of HONEYWELL's right to request or insist that such evidence be provided at a later date, 3.7 As a government entity CUSTOMER shall provide HONEYWELL with tax exempt certification upon request. ARTICLE 4 SUBCONTRACTS 4.1 At its exclusive option, HONEYWELL may subcontract some or all of the Work, 4.2 A Subcontractor is a person or entity who has a direct contract with HONEYWELL to perform any effort in connection with the Work, The term Subcontractor does NOT include any separate contractors employed by CUSTOMER or such separate contractors' subcontractors. 4.3 For the purposes of this Agreement, no contractual relationship shall exist between CUSTOMER and any Subcontractor. HONEYWELL shall be responsible for the management of its Subcontractors in their performance of their Work, ARTICLE 5 INST ALLA TION 5.1 The Work to be performed under this Agreement shall be commenced and substantially completed as set forth in the Installation Schedule attached hereto as Attachment C. 5.2 If HONEYWELL is delayed at any time in the progress of performing its obligations under this Agreement by any act of CUSTOMER or any contractor employed by CUSTOMER; or by changes ordered or requested by CUSTOMER in the Work performed pursuant to this Agreement; or by labor disputes, fire, unusual delay in transportation, adverse weather conditions or other events or occurrences which could not be reasonably anticipated; or unavoidable casualties; or any other problem beyond HONEYWELL's reasonable control (an "Excusable Delay"), then the time for performance of the obligations affected by such Excusable Delay shall be extended by the period of any delay actually incurred as a result thereof. If any delay, or cumulative delays, within CUSTOMER's control, extends beyond ten (10) days, CUSTOMER shall reimburse HONEYWELL for all additional costs resulting therefrom. ARTICLE 6 PRICE AND PAYMENT 6.1 Price 6.1.1 The price for the Work is six million, seventy three thousand, seven hundred and eighty four Dollars ($6,073,784), subject to the adjustments set forth in Article 7, 6.1.2 The price is based upon laws, codes and regulations in existence as of the date this Agreement is executed. Any changes in or to applicable laws, codes and regulations affecting the cost of the Work shall be the responsibility of CUSTOMER and shall entitle HONEYWELL to an equitable adjustment in the price and schedule, City of Augusta, GA 2002 3 6.1.3 The price will be modified for delays caused by CUSTOMER and for Changes in the Work, all pursuant to Article 7. 6.2 Payment 6.2.1 Upon execution of this Agreement, CUSTOMER shall payor cause to be paid to HONEYWELL the full price for the Work, in accordance with the Payment Schedule, Attachment C. Payment shall be made net ten (10) days of invoice date, ARTICLE 7 CHANGES IN THE PROJECT 7.1 A Change Order is a written order signed by CUSTOMER and HONEYWELL authorizing a change in the Work or adjustment in the price, or a change to the Installation Schedule described in Attachment B. 7.2 Claims for Concealed or Unknown Conditions If conditions are encountered at the site that are (1) subsurface or otherwise concealed physical conditions which differ materially from those indicated in the Contract Documents, or (2) unknown physical conditions of an unusual nature, which differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents, then notice by the observing party shall be given to the other party promptly before conditions are disturbed and in no event later than twenty-one (21) days after first observance of the conditions, and, if appropriate, an equitable adjustment to the Contract Price and Installation Schedule shall be made by a Change Order. If agreement cannot be reached by the Parties, the party seeking an adjustment in the Price or Installation Schedule may assert a claim in accordance with Paragraph 7 A. 7.3 If HONEYWELL wishes to make a claim for an increase in the Price or an extension in the Installation Schedule it shall give CUSTOMER written notice thereof within (30) days after the occurrence of the event giving rise to such claim. This notice shall be given by HONEYWELL before proceeding to execute the Work, except in an emergency endangering life or property, in which case HONEYWELL shall have the authority to act, in its discretion, to prevent threatened damage, injury or loss, Claims arising from delay shall be made within (30) days after the delay. Increases based upon design and estimating costs with respect to possible changes requested by CUSTOMER shall be made within thirty (30) days after the decision is made not to proceed with the change. No such claim shall be valid unless so made. Any change in the Price or the Installation Schedule resulting from such claim shall be authorized by Change Order, 7.4 Emerl!encies In any emergency affecting the safety of persons or property, HONEYWELL shall act, at its discretion, to prevent threatened damage, injury or loss. Any increase in the Price or extension of time claimed by HONEYWELL on account of emergency work shall be determined as provided in Section 7.3, ARTICLE 8 INSURANCE, INDEMNITY, AND LIMITATION OF LIABILITY 8.1 Indemnitv 8.1.1 HONEYWELL agrees to indemnify and hold CUSTOMER, and CUSTOMER's consultants, agents and employees harmless from all claims for bodily injury and property damages [other than the Work itself and other property insured under Paragraph 804] to the extent such claims result from or arise under HONEYWELL's negligent actions/inactions or willful misconduct in its performance of the Work. PROVIDED THAT, NOTHING IN THIS ARTICLE SHALL BE CONSTRUED OR UNDERSTOOD TO ALTER THE LIMITATIONS OF LIABILITY CONTAINED IN THIS ARTICLE AND ARTICLE 2. 8.1.2 CUSTOMER shall indemnify and hold harmless HONEYWELL and HONEYWELL's consultants, agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorneys' fees, arising out of, or resulting from, any act or omission of CUSTOMER or CUSTOMER's contractors, consultants, agents or employees. 8.2 Contractor's Liabilitv Insurance 8.2.1 HONEYWELL shall purchase and maintain such. insurance as will protect it from claims that may arise out of or result from HONEYWELL's operations under this Agreement. 8.2.2 The Commercial General Liability Insurance.shall include independent contractors, completed operations, and blanket contractual liabi]ity on all written contracts, all including broad form property damage coverage. 8.2.3 HONEYWELL's Automobile Liability Commercial Insurance, as General required and by City of Augusta, GA 2002 4 Subparagraphs 8.2.1 and 8,2.2, shall be written for not less than limits of liability as follows: (a) Commercial General Liability Combined Single Limit $ 2,000,000 Each Occurrence (b) Commercial Automobile Combined Single Limit $ 2,000,000 Each Occurrence Liability 8.2.4 HONEYWELL shall maintain at all times during the performance of the Work and Services hereunder, Workman's Compensation Insurance in accordance with the laws of the State in which the Work is performed, 8.3 Limitation of Liability 8.3.1 IN NO EVENT SHALL HONEYWELL BE LIABLE TO CUSTOMER FOR ANY SPECIAL, INCIDENTAL, INDIRECT, SPECULATIVE, REMOTE, OR CONSEQUENTIAL DAMAGES ARISING FROM, RELATING TO, OR CONNECTED WITH THE WORK, EQUIPMENT, MATERIALS, OR ANY GOODS OR SERVICES PROVIDED HEREUNDER. 8.3.2 AS A SEPARATE AND INDEPENDENT LIMITATION ON HONEYWELL'S LIABILITY, HONEYWELL'S TOTAL LIABILITY TO CUSTOMER ARISING OUT OF OR IN RELATION TO THIS AGREEMENT SHALL NOT EXCEED THE TOTAL PAYMENTS STATED IN ATTACHMENT C, PA YMENT SCHEDULE. ARTICLE 9 TERMINA nON OF THE AGREEMENT 9.1 If HONEYWELL defaults in, or fails or neglects to carry forward the Work in accordance with this Agreement, CUSTOMER may provide notice in writing of its intention to temlinate this Agreement to HONEYWELL. If HONEYWELL, following receipt of such written notice, neglects to cure or correct the identified deficiencies within fifteen (15) business days, CUSTOMER may provide a second written notice. If HONEYWELL has not, within fifteen (15) business days after receipt of such notice, acted to remedy and make good such deficiencies, CUSTOMER may terminate this Agreement and take possession of the site together with all materials thereon, and move to complete the Work itself expediently, If the unpaid balance of the contract sum exceeds the expense of finishing the Work, the excess shall be paid to HONEYWELL, but if the expense exceeds the unpaid balance, HONEYWELL shaIl pay the difference to CUSTOMER. 9.2 If CUSTOMER fails to make payments as they become due, or otherwise defaults or breaches its obligations under this Agreement, HONEYWELL may give written notice to CUSTOMER of HONEYWELL's intention to terminate this Agreement. If, within fifteen (15) days foIlowing receipt of such notice, CUSTOMER fails to make the payments then due, or otherwise fails to cure or perform its obligations, HONEYWELL may, by written notice to CUSTOMER, terminate this Agreement and recover from CUSTOMER payment for Work executed and for losses sustailled for materials, tools, construction equipment and machinery, including but not limited to, reasonable profit. ARTICLE 10 ASSIGNMENT AND GOVERNING LAW 10.1 All claims, disputes and other matters in question between CUSTOMER and HONEYWELL arising out of or relating to this agreement, or the breach thereof, shall be decided in the Superior Court of Richmond County, Georgia, The parties, through the execution of this agreement, specifically consent to the jurisdiction and venue of Richmond County Georgia, and waives any right to contest the jurisdiction and venue in the Superior Court of Richmond County, Georgia. 10.2 Neither party to the Agreement shaIl assign this Agreement or sublet it as a whole without the written consent of the other party. Such consent shall not be reasonably withheld, except that HONEYWELL may assign to another party the right to receive payments due under this Agreement. HONEYWELL may enter into subcontracts for the Work without obtaining CUSTOMER's consent. ARTICLE 11 MISCELLANEOUS PROVISIONS 11.1 The Table of Contents and headings in this Agreement are for information and convenience only and do not modify the obligations of this Agreement. 11.2 Confidentiality. As used herein, the term "CONFrDENTIAL INFORMATION" shaIl mean any information in readable form or in machine-readable form, including software supplied to CUSTOMER by HONEYWELL, that has been identified or labeled as "Confidential" and/or "Proprietary" or with words of similar import. CONFIDENTIAL INFORMATION shall also mean any information that is disclosed orally and is designated as "Confidential" and/or "Proprietary" or with words of similar import at the time of disclosure and is reduced to writing, marked as "Confidential" and/or City of Augusta, GA 2002 5 "Proprietary" or with words of similar import, and supplied to the receiving party within ten (10) days of disclosure. All rights in and to CONFIDENTIAL INFORMATION and to any proprietary and/or novel features contained in CONFIDENTIAL INFORMATION disclosed are reserved by the disclosing party; and the party receiving such disclosure will not use the CONFIDENTIAL INFORMATION for any purpose except in the performance of this Agreement and will not disclose any of the CONFIDENTIAL INFORMATION to benefit itself or to damage the disclosing party. This prohibition includes any business information (strategic plans, etc,) that may become known to either party, Each party shall, upon request of the other party or upon completion or earlier termination of this Agreement, return the other party's CONFIDENTIAL INFORMATION and all copies thereof, Notwithstanding the foregoing provIsIOns, neither party shall be liable for any disclosure or use of information disclosed or communicated by the other party if the information: (a) is publicly available at the time of disclosure or later becomes publicly available other than through breach of this Agreement; or (b) is known to the receiving party at the time of disclosure; or (c) is subsequently rightfully obtained from a third party on an unrestricted basis; or (d) is approved for release in writing by an authorized representative of the disclosing party. HONEYWELL acknowledges that all records relating to this agreement and the services under the contract may be a public record subject to Georgia's Open Record Act (O.c. G.A. ~ 50-I8-70m et seq,), HONEYWELL shall cooperate fully in responding to such request and making all records, not exempt, available for inspection and copying as provided by law, Should HONEYWELL contend that any record requested constitute a trade secret exempt from public disclosure, it shall designate such records as trade secrets or "CONFIDENTIAL INFORMATION". This shall include all attorneys' fees and expenses of litigation in defense of any attempt or litigation to compel disclosure of such records, The obligation of this Article shall survive any expiration, cancellation or termination of this Agreement. 11.3 If any provision is held illegal, invalid or unenforceable, the remaining provisions of this Agreement shall be construed and interpreted to achieve the purposes of the Parties. 11.4 Risk of loss for all equipment and materials provided by HONEYWELL hereunder shall transfer to CUSTOMER upon successful installation of such equipment by HONEYWELL or its Subcontractor and title shall pass upon payment by CUSTOMER to HONEYWELL, whichever occurs later. 11.5 Final notice or other communications required or permitted hereunder shall be sufficiently given if personally delivered to the person specified below, or if sent by registered or certified mail, return receipt requested, postage prepaid, or by a recognized national carrier, addressed as follows: To HONEYWELL: HONEYWELL DMC Services, L.L.c. Stonehill Corporate Center. 999 Broadway Saugus. MA 01906 Attention: Contracts Department To CUSTOMER: Augusta. Georgia, 530 Greene Street. Suite 80 I Augusta. GA 30911 Attention: George Kolb (Administrator) 11.6 Waiver. HONEYWELL's failure to insist upon the performance or fulfillment of any of CUSTOMER's obligations under this Agreement shall not be deemed or construed as a waiver or relinquishment of the future performance of any such right or obligation hereunder. 11.7 If any prOVISIon of this Agreement or the application thereof to any circumstances shall be held to be invalid or unenforceable, then the remaining provisions of this Agreement or the application thereof to other circumstances shall not be affected hereby and shall be valid and enforceable to the fullest extent permitted by law. City of Augusta, GA 2002 6 APPROVALS: The parties hereby execute this Agreement as of the date first set forth herein by the signatures of their duly authorized representatives: HONEYWELL DMC Services, L.L.C. Augusta, Georgia By /0;::4- 1:~~~~ Title: M.~rl Date ~tfi ~ JiJzt;4~, ~ ~~ Name: Kent F. Anson Title: President Date: ~("J-II 03 Rev. 04/02 Honeywell nil" UIIIU METEI. . ". :.ervlces Attachment A - The Work Augusta, Georgia Commercial Meter Scope Of Services February 11, 2003 Rev. 2.0 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. Table Of Content PROGRAM OVERVIEW 4 1.0 PROFESSIONAL PUBLIC RELATIONS CAMPAIGN -~ 1.1 ADVERTISEMENTS IN LOCAL PAPER 4 1.2 Direct Mail Campaign 4 1.3 Color Brochure 4 2.0 CUSTOMER CARE CENTER 4 2.1.1 ATTEMPTS AT CONTACT 4 2.1.2 PHONE LINES 24 2.1.3 CUSTOMER CONVENIENCE 5 2.1.4 INSTALLATION HOURS 5 3.0 UPDA TED DATABASE 5 3.1 Meter! AMR Technology Records 5 3.2 GPS Coordinates 5 3.3 Documented Site Conditions 5 4.0 PROJECT DETAILED OUTLINE 6$ 4.1 Program Manager 5 4.2 Office and Warehouse 6 4.3 Employee Screenings 6 4.4 Employee Identification 6 4.5 Vehicle Identification 7 4.6 Appointment Setting 7 4.7 Surveying of Three-Inch and Larger Meters 7 4.8 CFR 1910 OSHA Regulations 7 4.8.1 VEIDCLE CONFINED SPACE EQUIPMENT 8 4.9 Removal of the Existing (old) Meter 8 4.9.1 EXAMINA TION OF THE EXISTING PIPING 8 4.9.2 ISOLA TION 8 4.9.3 INLET ISOLATION VALVE FAILURE 9 4.9.4 OUTLET ISOLATION VALVE FAILURE 9 2 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. 4.9.5 RELEASE OF PRESSURE 4.9.6 BOLT REMOVAL 4.9.7 OLD METER REMOVAL AND STORAGE 9 9 L09 4.10 Installation of the New Meter 4.10.1 CLEANING OF FLANGES 4.10.2 SPOOL PIECES 4.10.3 EXTIRA SPACE 4.10.4 ELBOWS REDUCERS ETC. 4.10.5 PIPE AND OR VAULT RECONFIGURATION 4.10.6 NUTS, BOLTS, AND WASHERS 4.10.7 GASKETS 4.10.8 METER DIRECTION 4.10.9 RE-OPENING ISOLATION VALVES 4.10.10 INSPECTION FOR LEAKS 4.10.11 PuRGING OF AIR 4.10.12 SYSTEM FLUSIDNG 4.10.13 PROPERTY CHECK 10 10 10 10 10 11+0 11+0 11 11 11 11 12-1+ 1~-1+ 12-1+ 4.11 Damage to Property 12 4.12 Data Collection 12 4.13 Reporting 4.13.1 DAILY TRACKING AND MONITORING 4.13.2 MEETINGS 12 .u~ 13 5.0 NON-STANDARD SERVICES 13 5.1 Auguslta Approval 5.2 Examples of Non-Standard Services 13 13 6.0 TRAINING FOR AUGUSTA PERSONNEL 14lJ 6.1 Training Requirements 13 7.0 EXECUTION AND COMPLETION 14lJ . 8.0 AUGUSTA RESPONSIBILITIES 14lJ 8.1 Accounts Not Conforming to Contractual Standards 14 3 Augusta, Georgia Scope Of Services Honeywell DMC Seivices, L.L.c. Program Overview It is the intention for Honeywell to perform the installation of the commercial potable water meters ranging in size from 5/8 inch to 10 inch and also the installation of 1000 residential potable water meters within Augusta, Georgia's distribution system. Inclusive of this installation work will be the incorporation of an AMR radio frequency drive by system. Honeywell will provide all necessary program management, labor, and materials to complete the program within the contractual time frame and as specified by Augusta. 1.0 Professional Public Relations Campaign 1.1 Advertisements in local paper Honeywell will advertise in the local papers to inform Augusta's customers of the up coming program, the benefits, and technology. 1.2 Direct mail campaign Honeywell will perform one direct mailing to Augusta's effected customers to once again inform them of the nature of the program, its benefits, and the time frame for installations in their area. 1.3 Color brochure Honeywell will produce a color brochure with information pertaining to the program and pertinent phone numbers for information and customer service. 2.0 Custolner Care Center 2.1 Honeywell DMC Services, L.L.C will be responsible for appointment setting. 2.1.1 Attempts at contact Honeywell will make a minimum of five attempts (3 phone calls which may include off hours and a minimum of two letters) to try and schedule the customer. 4 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. 2.1.2 Phone lines Honeywell will have adequate phone lines to accommodate the influx of customer's calls. A toll free number will be established for customer calls and concerns. 2.1.3 Customer convennence Appointments will be set at the customer/property owner's convenience. 2.1.4 InstaUation hours Honeywell must allow for flexible installation hours to accommodate the customer/property owner in accordance with their operational hours. In example: Honeywell may have to work split shifts such as 05:00 am to 12:00 pm and then again between 10:00 pm to 06:00 am. Also Honeywell will be available to work Monday through Sunday the hours again will be determined by the customer's ability to schedule. 3.0 Updated Database 3.1 Meter/AMR technology records All records such as meter numbers, technical drawings etc. will revert to the property of Augusta. 3.2 GPS coordinates All meters will have their latitude and longitude records recorded by Honeywell and will revert to the property of Augusta. Honeywell shall supply four (4) GEO XT 128mb stand-alone Global Positioning Devices CGPS) data collecting systems catalog No. 47200-00. Price for the above item is $3,146.00 per unit, plus an additional $446.00 per unit for the associated software. These handheld units will be purchased by Augusta from their low bid supplier. Honeywell shall be responsible for the cost of these four (4) units and associated software. Augusta shall incur no tax on the purchase of these items. 3.3 Documented site conditions All three inch and larger meters will have detailed data collected, which will include but not limited to: ~ Vault condition and size ~ Piping size, type, and condition ~ Valve size, type, and condition ~ By-pass (if any) size and valve type 5 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. 4.0 Project Detailed Outline 4.1 Program Manager Honeywell shall incorporate a Program Manager dedicated solely and exclusively to the Augusta Program and whose responsibilities will include but not limited to: );> Overall Field Installation Services requirements, deliverables and Field Installation Services activities. );> Primary communication interface to Augusta. Operations Management. );> Adherence to the Field Installation Schedule and Route Installation Plan. );> Coordination of all Field Installation Services related activities. );> Responsible for Inventory Control Management. );> Administration of action items. );> Creation and distribution of reports as mutually agreed. );> Participation in Project review and status meetings as called by Augusta. );> Monthly invoice and reconciliation for Field Installation Services with documentation detail for all charges as mutually agreed. );> Additional scope work order management. );> Pro-active communications with Augusta operations management of any issues that may affect Honeywell ability to perform the Field Installation Services. );> Responsible for resolving customer related issues. 4.2 Office and warehousing );> A local office and warehouse will be established. It will be of adequate size to incorporate office staff and warehouse the new meter inventory and additional installation materials. );> The office will have adequate phone lines to accommodate the influx of customer's calls. 4.3 Employee screenings Honeywell and associated subcontractors shall conduct a background check on each of its employees prior to the employee performing any function or activity under this agreement involving any direct customer contact. As used in this agreement "direct customer contact" shall include but not limited to, any activity by Honeywell employee at or near a customer's premises. The background check conducted by Honeywell shall consist of a check of at least the following: drug testing, driving record, criminal history (state and federal), and credit history. Each of Honeywell employees shall be a citizen of the United States or an alien who has been lawfully admitted 6 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. for permanent residence as evidence by Alien Registration Receipt Card Form 1-51. Honeywell employees will have. a valid identification card and Social Security Card or acceptable identification confirming legal status to work in the U.S., e.g., naturalization papers or resident alien card. 4.4 .Employee identification Field installation personnel assigned under the contract shall have uniforms and identification badges. Uniforms must have the company's logo. Identification badges shall have company name, employee's full name, employee identification number and a picture of the employee. All personnel must wear uniforms and identification badges in plain sight at all times during working hours. 4.5 Vehicle identification All vehicles will be clearly marked by either a magnetic or permanent sign displaying the company logo 4.6 Appointment setting ~ Honeywell will make a minimum of five attempts (3 phone calls which may including off hours as needed and a minimum of two letters) to try and schedule the customer. ~ Appointments will be set at the customer/property owner's convenience. ~ Honeywell must allow for flexible installation hours to accommodate the customer/property Honeywell in accordance with their operational hours. In example: Honeywell may have to work split shifts such as 05:00 am to 12:00 pm and then again between 10:00 pm to 06:00 am. Also Honey\vell must be available to work Monday through Sunday the hours again will be determined by the customer's ability to schedule. ~ Any customers/property Honeywell that refuses or cannot have their water service interrupted will immediately be listed and given to Augusta for discussion. 4.7 Surveying of three-inch and larger meters The survey will contain but not be limited to the following: ~ Customer contact in which information of the future installation work will be conveyed and recorded. ~ Scheduling information. In example: The best time for the installation, day of the week, amount of time for the installation, etc. ~ Recording all pertinent setting information including valve condition and type, vault dimensions, accessibility, all necessary setting measurements 7 Augusta, Georgia Scope Of Services Honeywell DMC Services, LL.C. to insure Honeywell has all necessary installation materials available Ft the time of the installation. 4.8 CFR 1910 OSHA regulations Honeywell shall be responsible for conforming to CFR 1910 of the aSh;.'" confined space permit required entry procedure. This is inclusive of the utilization of all necessary equipment and or permits required as well as proof of certification for employees performing such acts. 4.8.1 Vehicle Confined space equipment All vehicles performing commercial meter work that will be inclusive of confined space work will have at a minimum but not limited to the following: I,) First aid kit 2,) Fire extinguisher (size based on DOT standard to vehicle GVWR) 3.) Reflective triangles or flares 4,) Traffic cones (number depending on state and local DOT codes) 5.) Warning signs: i.e, Road Work Ahead 6,) Hard hats 7.) Safety glasses 8.) Gloves 9.) Lockoutffagout Kit 10.) Retrieval harness 11.) Lifeline and retrieval winch 12.) Tripod ] 3.) Gas detection device 14,) Ventilation equipment IS,) Warning signs , " ]6.) Confined space and hot work permit 17.) Proof of company certification 4.9 Removal of the existing (old) meter 4.9.1 Examination of the existing piping Honeywell shall examine the existing piping structure to verify its condition. Should the service line be in a condition that the existing piping will be damaged or the existing piping has a pre-existing leak the installation shall not take place and Augusta will be notified by the next business day for consultation. 4.9.2 Isolation The meter will be isolated from the up-stream and down-stream line pressure by use of the inlet and outlet isolation valves. These valves shall 8 :. ., '. Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. ., ,.J( '. be closed using the manufacturer's specifications for rate of clmure in order to eliminate water hammer. If manufacturer's specifications are not available then the following equation shall be utilized: ,027 x L x V Time (in seconds) = P-p '. :~{.:\. L - Is the length of pipe before the valve, in feet V - is the velocity of flow, in feet per second P - is the pressure in the pipe, in pounds per square inch, when there i:, no flow p - is the pressure in the pipe at full flow .,f. 4.9.3 Inlet isolation valve failure Should the inlet isolation valve fail to operate and the installation cannot be performed, Augusta shall be notified by the next business day for consultation. Augusta will work with Honeywell to arrive at a mutually agreeable solution. 4.9.4 Outlet isolation valve failure Should the outlet isolation valve fail to operate and or is missing then Honeywell shall check the premise for equipment that may be damaged or destroyed (in example: electric hot water tanks etc.) by the lack of pressure in the facility. If not then the building is to be safely drained to the outside by breaking the meter outlet flange or by an existing port on the outlet piping. Should equipment exist that would be damaged to a loss of pressure the installation will not be performed and Augusta will be notified by the next business day to consult. Augusta will work with Honeywell to arrive at a mutually agreeable solution. ':;.1': 4.9.5 Release of pressure Once the meter has been isolated the pressure will be relieved on the meter by loosening a t1arige, meter top, or use of an existing port on the existing pIpmg. 4.9.6 !Bolt removal The existing bolts will be removed by use of wrenches, torches, and or combinations there of. 9 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. ',0\:: 4.9.7 Old meter removal and storage The old meter will be completely removed from the setting, vault and or inside facility. The old meter will not remain on site. The old meter is the property of the utility and Honeywell will store the old meter for a period of up to 15 days. Transportation of the old meters to Augusta or a recycling center will be the responsibility of Augusta. 4.10 Installation of the new meter . " , I 4.10.1 Cleaning of flanges All old flanges and piping will be cleaned and old gasket material and debris will be removed. 4.10.2 Spool pieces The new meter setting will incorporate a spool piece (manufacturer preferred) of ductile iron inserted between the meter and the strainer, the length of the spool will be five times the diameter of the new meter to be installed. In example if the new meter size is to be a four-inch meter then a ductile iron spool is to be inserted between the meter and strainer four inches in diameter and twenty inches long. 4.10.3 Extra space In the event the old meter is removed and more space exist than the new meter span will cover there shall be no individual charge for filler flanges, spool pieces etc. 4.10.4 Elbows reducers etc. In the event, during the installation of the new meter, that a pipe fitting such as a 90 degree elbow, 45 degree elbow, pipe reducer, reducing tee etc. would be bolted directly to the strainer of the new meter, then a spool piece of ductile iron shall be placed in front of the strainer with the same 10 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. diameter as the new meter and not less than five times in length of new meter pipe diameter. 4.10.5 Pipe and or vault reconfiguration Should major pipe reconfiguration and or vault reconstruction be required to incorporate the new meter and strainer then no installation shall be performed and Honeywell shall submit in writing with detailed drawings and materials list as well as anticipated pricing to Augusta for further reVIew. 4.10.6 Nuts, bolts, and washers The new meter will be installed using no less than grade 3 zinc plated bolts, nuts and washers. Bolts nuts and washers will be of a size specified by the meter manufacturer in example three inch and four inch flanges will require no less than a grade three 5/8 inch bolt, zinc plated heavy duty washer, and heavy duty 1 1/16 inch zinc plated nut. 4.10.7 Gaskets Gaskets will be of various thicknesses to help ease the installation and will be of neoprene type or equivalent. Asbestos gaskets will not be permitted. Gaskets may also be of the ring or full-face type. 4.10.8 Meter direction Honeywell shall make certain that the new meter and strainer has been installed in the proper direction to minimize inconvenience to the customer by having to remove and turn the meter around. 4.10.9 Re-opening isolation valves After all flanges have been securely tightened the inlet isolation valve will be opened. 4.10.10 Inspection for leaks The setting shall be wiped down and inspected for leaks. 11 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. 4.10.11 Purging of air The setting will be purged of all air by use of a bleeder screw on the new meter or an existing flange or port on the setting. 4.10.12 System flushing A fIxture such as a slop sink etc. shall be opened to allow line flushing and the purging of remaining air in the system before the outlet isolation valve is opened. The outlet isolation vale will be opened. The meter operation should be checked at this time to see if all elements of the new meter are operating. 4.10.13 Property check Honeywell shall inspect the property for adequate pressure and flow and that there are no related problems such as flush valves, reduced pressure zone devices leaking. 4.11 Damage to property . Honeywell shall be responsible for the cost of repair to property, waterlines and other items damaged due to workmanship. Honeywell shall preserve and protect existing trees, plants, branches and foliage from damage that could result from installation operations. All surfaces shall be restored to its original condition. 4.12 Data collection Honeywell will collect at a minimum the following information either by work order or electronic means. The Honeywell will detennine the means by which data will be transferred. I.) Account number 2,) Address 3,) Customer name and phone number 4,) Old meter size and type 5,) Old meter serial number 6.) Old meter reading 7.) Materials used during the installation 8,) New meter size and type 9,) New meter reading Digital photo of the completed setting 4.13 Reporting 12 Augusta, Georgia Scope Of Services Honeywell DMC Services, L.L.c. Honeywell will be responsible for reporting to Augusta. 4.13.1 Daily tracking and monitoring Honeywell will monitor and track the daily progress of the program. Honeywell will be responsible for tracking, out not limited to, the following: )> Daily total scheduled for installation. )> Daily installation totals including time and material. )> Daily incomplete installations and reason why they were not completed. )> Daily total of surveyed meters that will be scheduled. )> Daily total of surveyed meters that cannot be scheduled. )> Daily total of meters found to need fire service meters and currently are not equipped as such. )> Customer interactions primarily complaints and or damages and the progress or state of each. )> Warehouse/material inventory. 4.13.2 Meetings Honeywell will conduct bi-montWy (twice a month) meetings to report in detail the progress of the program and provide written reports to Augusta in regards to said progress. 5.0 Non-Standard Services 5.1 Augusta approval All non-standard requests will be pending Augusta's approval prior to work commencing. Augusta will have 30 days to review and approve non-standard work orders. 5.2 Examples of non-standard services )> Meter vault reconstruction )> Extensive new piping requirements )> Concrete and asphalt work >- Special police traffic details )> Pit box replacement 13 Augusta, Georgia Scope Of Ser-vices HoneywelJ DMC Services, L.L.C. ~ Additional piping to convert a turbine meter to a compound meter 6.0 Training For Augusta Personnel 6.1 Training requirements Honeywell shall provide training to Augusta personnel on the meter and reading system to be installed as required. ,. 7.0 Execution ~nd Completion Execution of the contract shall begin no later than 45 days after the award of said contract. Honeywell shall have 14 months to complete said contract from the time said contract is awarded. 8.0 Augusta Responsibilities 8.1 Accounts not conforming to contractual standards Honeywell will to the best of its ability make forth every effort to complete all existing accounts as specified. Augusta will assume responsibilities for any and all accounts that do not fall within the original scope of the contract. Some examples will be as follows: ~ Customers refusing to have the installation work performed. ~ Customers who refuse to respond to the program. ~ Customers who refuse to have service interrupted. ~ Installations that require modifications/repair that are beyond the base scope of this contract and are not covered by the nonstandard services fund will be tumed back to Augusta. 14 ATTACHMENT B INST ALLA nON SCHEDU~.:(<; Honeywell will submit its installation procedures and installation schedule no later than 30 days after contract signing. Augusta perscnnel and Honeywell wilJ review and approve the implementation plan and after such approval, Augusta shall issue a notice to proceed. Honeywell shall comm~nce installation no later than 30 days from the notice to proceed. Honeywell shall complete the Work in accordance with this Agreement, thirteen (13) months from date of the notice to proceed. Attachment C (Rev, 04/02) Page 1 of 1 A TT ACHMENT C PA YMENT SCHEDULE 1.0 Payment Terms 1. 1 The payment schedule herein has been established for the 14 month term of this Work, Payment shall be made within thirty (30) days of invoice date. Total Payments are: $ 6,073,784 1.2 A mobilization fee of 20% of the Total Payments shall be paid within 30 days of contract signing, 1.3 Progress payments shall be invoiced monthly and will be based on the actual percentage of successful installations performed. 2.0 Quantity of Work 2.1 The project consists of the delivery / installation of the following: Small Meter Otv C&I (PO) Oty 5/8" 4,134 (includes 1,000 residential) 1-1/2" 761 3/4" 0 2" 450 I" 1,057 C&I (Turbo) Oty C&I (Compound) Oty 2" 5 2" 107 3" 82 3" 121 4" 62 4" 93 6" 60 6" 40 8" 18 10" 6 12" 4 Additional EQuipment / Services 18, G5R Handheld Units t, DCU4 Data Collection Unit Required Software Billing Interface Integration Training for Augusta personnel 2,2 The above meter inventory is based on the best estimates of Augusta and Honeywell. Changes in this scope will be adjusted by mutual agreement between Honeywell and Augusta before any changes are implemented. Attachment E (Rev, 04/02) Page 1 of I ATTACHMENT D WATER METER ACCURACY GUARANTEE AND SYSTEM WARRANTY 1.0 TERM AND TERMINATION 1.1 Guarantee Term. The Meter Accuracy Guarantee shall commence on the day after each successful installation pursuant to this Agreement and shall terminate at the end of the Quarantee Period unless terminated earlier as provided for in Section 1.2 below. The Term of this Guarantee Period is defined in Section 3,0 of Attachment D. 1.2 Guarantee Termination. AIl accuracy guarantees are contingent upon the implementation of a HoneyweIl DMC approved maintenance agreement (not to exceed $500,000 per year, escalated at 3% per year) after completed installation. Should Augusta choose to forego a maintenance agreement, or terminate an existing maintenance agreement in future years, the Guaranteed Accuracy for that year and any years remaining in the Guaranteed Period shaIl be nuIl and void, 2.0 NEW METER ACCURACY GUARANTEE 2.1 New Meter Accuracy Guarantee. HONEYWELL guarantees to CUSTOMER that the identified new water meters wiIl meet guaranteed accuracy requirements over the Term of the contract as defined in herein, In no event shaIl the penalties provided herein exceed the total instaIlation for the Work under this Agreement. 2.2 New Meter Accuracy Overdrive. Additional meter accuracy above contract commitment as measured by Honeywell's Measurement and Verification efforts wiII be included in the water meter accuracy guarantee reconciliation report for the applicable Guarantee Year(s) and shall be applied, when needed, to cover any short fall in accuracy guarantee in future years, 2.3 New Meter Acclllracy Shortfalls. In the event that the total accuracy in any Guarantee Year is less than the Guaranteed Accuracy required for that Guarantee Year, after giving credit for any Accuracy Overdrive carried forward from previous Guarantee Years, HONEYWELL shall, upon receipt of written demand from CUSTOMER, compensate CUSTOMER the amount of any such shortfall, limited by the value of the guarantee, within sixty (60) days. Resulting compensation shall be HONEYWELL's sole liability for any shortfall in the Guaranteed Accuracy. 2.4 Savine:s Reconciliation Documentation. HONEYWELL will provide CUSTOMER with a guarantee accuracy reconciliation report after each Guarantee Year. Data and calculations utilized by HONEYWELL in the preparation of its guarantee accuracy reconciliation report will be made available to CUSTOMER, along with such explanations and clarifications as CUSTOMER may reasonably request. 2.5 Acceptance of Guarantee Reconciliation. At the end of each Guarantee Year CUSTOMER wiIl have forty-five (45) days to review the guarantee accuracy reconciliation report and provide written notice to HONEYWELL of non-acceptance of the Guarantee Accuracy for that Guarantee Year. Failure to provide written notice within forty-five (45) days of the receipt of the guarantee savings reconciliation report wiIJ deem it accepted by CUSTOMER. 2.6 Guarantee Savine:s Reconciliation. Guarantee Savings wiIl be determined in accordance with the methodology(s), utilized to establish the baseline system accuracy. Sampling size for future measurements wiIl be equivalent to the sampling size utilized on the baseline measurement. Honeywell DMC reserves the right to expand the sampling size at HoneyweIl DMC's discretion and expense, ase me ample Size / Type 5/8" I" 1,5" 2" 3" 4" 6" 8" 10" Disc Meter 39 ]0 22 Turbo Meter 1 7 8 7 I 1 Compound 3 3 9 4 B r S (] 15 total meters) Page 1 of3 2.7 Activities and Events Adverselv Impacting Meter Accuracv. CUSTOMER shall promptly notify HONEYWELL of any activities known to CUSTOMER which adversely impact HONEYWELL's ability to realize the Guaranteed Accuracy and HONEYWELL shall be entitled to reduce its Guaranteed Accuracy by the amount of any such adverse impact to the extent that such adverse impact is beyond HONEYWELL's reasonable control. This guarantee does not include any performance degradation that arises as a result of improper infrastructure maintenance, degradation from current water quality, typical force majeure events or other factors outside of Honeywell's reasonable control. 2.8 Guarantee Adjustment. HONEYWELL's Guaranteed Accuracy obligations under this Agreement are contingent upon: (1) no alterations or additions being made by CUSTOMER to any Work performed in this Agreement without prior notice to and agreement by HONEYWELL; (2) Honeywell's ability to render services not being impaired by circumstances beyond its control. To the extent CUSTOMER defaults in or fails to perform fully any of its obligations under this Agreement, HONEYWELL may, in its sole discretion, adjust its Guaranteed Accuracy obligation; provided, however, that no adjustment hereunder shall be effective unless HONEYWELL has first provided CUSTOMER with written notice of CUSTOMER's default(s) or failure(s) to perform and CUSTOMER has failed to cure its default(s) or failure(s) to perform within thirty (30) days after the date of such notice. 3.0 GUARANTEED ACCURACY / GUARANTEE PERIOD Honeywell DMC guarantees the average accuracy of the new water meters installed on this project will meet the following minimum accuracy thresholds: Guarantee 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Guaranteed 97% 97% 97% 96% 96% 96% 96% 96% 96% 96% Accuracy Failure to meet the accuracy threshold in any given year, after all remedies allowed in this contract have been exhausted, will result in a payment to Augusta for missed revenues that are associated with the installed scope of work, The payment will be equal to: (Guaranteed Accuracy - Measured Accuracy) * (Annual Variable Water & Sewer Revenuefor the Missed Year) 4.0 SYSTEM WARRANTY 4.1 Product Warranty Itron ...', -. 'T ~ ~ II" ::-..,.,...., .~. ., ~,. ..~.. - -. - ., - ~ _ _ ~ , f~Jifit...l.t' (e{' I " I' \'i~t~tWfii11'1'lf-{-J.ri:~X2Fk.o)i", : .' J..... , I ,.._ ~ ,,_. ,_ _ _ \ _ ~' ~;l'.-L '_ _ _ ".' ,. '..__ .... ~_~ ~;...;._ .... "-'. I~..., ~nIW.MJ:;ht, ~~.{.ID;;. .. . . .. All Equipment and Licensed Software (excluding ERT Module & ERT Batte ERT Module ERT Module Batte 1 Year (on going warranty to be included in annual maintenance contract) 10 Years 10 Years Badger Meter 30 ears 15 ears Page 2 of3 4.1.2 Transfer of Product Warranties: Product warranties transfer to Augusta after implementation is complete 4.2 Labor Warranty 4.2.1 Installation Labor: All installation labor will be covered under warranty against defect for 1 year from date of installation 4.2.2 Labor Warranty: The labor to replace defective product beyond the 1 year term stated in Section 4.2.1 above shall be the sole responsibility of Augusta unless otherwise stated in the terms of the annual maintenance agreement between Hcmeywell and Augusta, Page 3 of 3