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AF'F(i;'�rL� EKY <br />C1llz `� C;," i l�� CIL I <br />Date � � .,�.�'��� � <br />Item <br />FIRST AMENDMENT TO WATER SOLUTIONS AGREEMENT <br />BETWEEN THE CITY OF COLTON <br />AND GE IONICS INC. <br />ARTICLE 1. PARTIES AND DATE <br />This First Amendment to the Water Solutions Agreement ("First Amendment") dated as of the <br />1 day of October, 2007 is entered into by and between the City of Colton ("City") and GE <br />Ionics, Inc. (Contractor") <br />ARTICLE 2. RECITALS <br />2.1 City and GE Ionics, Inc. entered into that certain Water Solutions Agreement dated <br />December 28, 2006 ("Agreement"), whereby GE Ionics agreed to provide the recommended water <br />treatment equipment, operation and maintenance services specified in Exhibit A, now desire to <br />amend the Agreement relating to price Escalation. <br />ARTICLE 3. TERMS <br />3.1 Exhibit C, Section 3 of the Agreement is hereby deleted in its entirety and replaced <br />with a new Section 3 to read as follows: <br />3. Escalation <br />All prices stated herein are in 2006 dollars and shall be adjusted upward by 3.5% <br />on January 1, 2007. Subsequent annual adjustments shall be exactly 3.0% per <br />year, beginning on the first day of January, each calendar year. <br />3.2 Continuing Effect of Agreement. Except as amended by this First Amendment, all <br />provisions of the Agreement shall remain unchanged and in full force and effect. From and after the <br />date of this First Amendment, whenever the term "Agreement" appears in the Agreement, it shall <br />mean the Agreement as amended by this First Amendment. <br />3.3 Affirmation of Agreement; Warranty Re Absence of Defaults. City and GE <br />Ionics Inc. each ratify and reaffirm each and every one of their respective rights and obligations <br />arising under the Agreement. Each party represents and warrants to the other that there have been no <br />RVPUB\NGS\635122 _ 1 _ <br />