1990-005-RES WHEREAS, the City Council of the City of desirous of maintaining adequate wastewater its citizens; and,

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:,.3.2. In the event of termination by OWNER under paragraph 7.1. upon the completion of any phase of the Basic Services, progress payments due ENGINEER for services rendered through such phase shall constitute total payment for such services. In the event of such termination by OWNER during any phase of the Basic Services, ENGINEER shall be paid for services rendered during that phase on the basis of the attached per diem rates for services rendered during that phase to date of termination by ENGINEER'S principals and employees engaged directly on the Project. In the 'event of any such termination, ENGINEER also will be reimbursed for the charges of independent professional associates and consultants employed by ENGINEER to render Basic Services, and paid for all unpaid Addi tional Services and unpaid Reimbursable Expenses, plus all termination expenses. Termination expenses mean Reimbursable Expenses directly attributable to termination. SECTION 6 - OPINIONS OF COST 6.1. Opinions of Cost Since ENGINEER has no control over the cost of labor, materials, equipment or services furnished by others, or over the CONTRACTOR ( S) methods of determining prices, or over competi ti ve bidding or market conditions, his opinions or probable Project Cost and Construction Cost provided for herein are to be made on the basis of his experience and qualifications and represent his best judgement as an experienced and qualified professional engineer, familiar with the construction industry; but ENGINEER cannot and does not guarantee that proposals, bids or actual Project or Construction Cost will not vary from opinions or probable cost prepared by ENGINEER. If prior to the Bidding or Negotiating Phase, OWNER wishes greater assurance as to Project or Construction Cost, he shall employ an independent cost estimator as provided in Section 3. SECTION 7 - GENERAL CONSIDERATIONS 7.1. Termination - The obligation to provide further services under this Agreement may be terminated by either party upon thirty days written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party. 7.2. Insurance 7.2.1. ENGINEER shall procure and maintain insurance for protection from claims under workers' compensation acts, claims for damages because of bodily injury including personal injury, sickness or disease or death of any and all employees or of any person other than such employees, and from claims or damages because of injury to or destruction of property including loss of use resulting therefrom. 7.2.2 OWNER shall procure and maintain similar coverage for any of its employees engaged on the Project, and shall require all construction contractors associated with the Project to procure and maintain at least statutory workmen's compensation and contractor's liability coverage. Page 12 of 17 Pages