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to the City the following sums noted herein as liquidated damages for each failure or delay in the performance of the services required hereunder. Contractor agrees to pay said liquidated damages as herein provided, and in case the same are not paid, agrees that City may deduct the amount thereof from any monies due or that may become due under this Agreement. The parties agree that the liquidated damage amounts shown below are reasonable and appropriate. Liquidated Damaee Amounts Failure to provide preventive maintenance at any given location at least once yearly as scheduled': $500 per instance; If the Contractor fails on three or more occasions within a given year to provide preventative maintenance by failing to appear for scheduled maintenance without advance notice to the City, it will be considered a material breach of the Agreement. The City may immediately seek a replacement vendor, and Contractor will pay $2,000 per each remaining un -serviced pump that year. Notwithstanding the separate liquidated damages clause, if Contractor fails to perform the work required by the terms of this Agreement in a diligent and satisfactory manner, the City may, after 30 days' written notice to Contractor, perform or cause to be performed, all or any part of the work required hereunder. Contractor agrees that it will reimburse the City for the work performed or caused to be performed, and the City may deduct the amount from any monies due or that may become due under this Agreement. The waiver by the City of a breach of any provision of this Agreement by Contractor shall not operate or be construed as a waiver of any subsequent breach by Contractor. Training Opportunities: The City may at times offer a mechanic to assist in the inspections and to learn proper repair techniques. Contractor agrees to work alongside and offer any side by side training the City requests. In the event that a pump must be sent for repairs offsite, Contractor will encourage City personnel to participate in the repair at its Stockton facility and will host City personnel for training. Deliverables: Contractor will: • Conduct annual inspections of the Flygt pumps, including the 21 -Point Checklist. • Complete a written report of all findings, results and work performed on each pump upon completion of each annual inspection. The report will also include any recommendations for further repair/replacement, any safety hazards encountered, and any other issue that arises during the inspections. The written report should be sent to the City's Wastewater and Storm Utilities Field Supervisor. • Provide a written cost estimate for any unanticipated repairs, or replacements. 'Contractor's failure to provide such preventative maintenance without rescheduling in advance of the maintenance and/or providing notice in advance to the City shall trigger the liquidated damages provision. REV: 04-05-18 MI ATTY/AGR/2018.058/SHAPE, INC. Page 12 of 14