Section 63: Term of contract awarded under Sec. 62 and option for renewal or extension; contents of contract and obligations thereunder; requirements relating to capital modifications, capital repairs, installation of equipment and systems or second interior or exterior coating
Section 63. (a) A contract awarded under section 62 may provide for a term, not exceeding 15 years, and an option for renewal or extension of inspection, maintenance, repair or modification services for 1 additional term not exceeding 5 years. When a contract is to contain an option for renewal or extension, the solicitation shall include notice of that provision. A renewal or extension shall be at the sole discretion of the governmental unit under the terms and conditions of the original contract. Subject to subsection (b), a contract awarded under said section 62 shall contain a provision stating that the governmental unit may terminate the contract upon 90 days written notice.
(b) A contract entered into under section 62 may provide that the governmental unit's obligation under the contract for payment of the annual costs to inspect, maintain, repair or modify a water storage facility shall be subject to appropriation; provided, however, that a governmental unit shall not be exempt from liability for the payment of the amounts amortized for completed capital modifications, repairs or installation of equipment and systems at a water storage facility. Costs shall be amortized over a period that shall not be longer than the useful life of the modifications or repairs or the equipment and systems installed. A governmental unit's payment obligation for any inspection, maintenance, repair or modification services shall be contingent upon the contractor's performance of the services under the terms of the contract. A contract entered into pursuant to this section shall include the independent professional engineer's report that was used as the basis of the solicitation and shall include a breakdown of the portion of the annual fee that is: (i) allocated to inspection, maintenance, operation, testing and ordinary repair which shall be subject to the provisions concerning annual appropriation in this section; and (ii) attributable to capital modification, capital repairs or installation of equipment and systems at a water storage facility for which the amount of the lump sum cost of such capital modification, capital repairs or installation of equipment and systems at a water storage facility has been amortized over the life of the contract. In addition, if the local legislative body votes to make payments for future capital modifications, capital repairs, installation of equipment and systems or a second interior or exterior coating, a contract entered into pursuant to this section shall include a schedule of the payments to be made based on the estimated costs of such future capital modifications, capital repairs, installation of equipment and systems or a second interior or exterior coating as submitted by the selected offeror in response to the request for proposals, which shall be used to determine the full accumulated amount to be guaranteed. In the event of a termination, the amounts held for future capital modifications, capital repairs or installation of equipment and systems or a second interior or exterior coating shall be refunded to the governmental unit in accordance with the terms and conditions of the request for proposals.
(c) A contract entered into under section 62 may provide for any activities deemed necessary to carry out sections 61 to 69, inclusive, which may include, but shall not be limited to, equipment installation and replacement, studies, permitting, design and engineering, capital modification, capital repairs, painting, ordinary repairs and maintenance and the furnishing of all related material, supplies and services required for a water storage facility and the management, maintenance and repair of and improvements to the facility. In the event that the contract and any lawfully executed extension of the initial term includes payments for future capital modifications, capital repairs, installation of equipment and systems or a second interior or exterior coating, prior to proceeding the governmental unit shall seek the consultation of a professional engineer or independent certified tank consultant to complete an independent review of the proposed scope in relation to the condition of the water storage facility. The engineer or tank consultant shall prepare a written report to advise the governmental unit on proceeding with the contractor's proposal.