HomeMy WebLinkAboutResolution No. 2026-62 | Reimbursement Agreement with AWS | Adopted 08/17/2026
RESOLUTION NO. 2026-62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GILROY TO ENTER INTO A REIMBURSEMENT
AGREEMENT WITH AMAZON DATA SERVICES FOR
RECYCLED WATER IMPROVEMENTS
WHEREAS, In 2020, Amazon Data Services, Inc. (“Amazon”) filed an application with
the City of Gilroy (City) for the construction of a data center project (“Project”); and,
WHEREAS, the Project underwent review under the California Environmental Quality
Act (CEQA), including preparation of an Environmental Impact Report; and,
WHEREAS, one of the conditions of approval by the City for the Project is that Amazon
construct, or pay for the construction of, certain recycled water facilities and improvements
necessary for the use of recycled water by the Project, which is to be fully funded and paid for by
Amazon; and,
WHEREAS, Amazon is required to have all necessary recycled water infrastructure
improvements built no later than two years from the issuance of the last Certificate of Occupancy
of Phase 1 of the Project or the first Certificate of Occupancy of Phase 2 of the Project, whichever
comes first; and,
WHEREAS, part of the recycled water infrastructure improvements are to be built and
installed at the South County Regional Wastewater Authority (“SCRWA”) facility, including
construction of a new three-million-gallon storage reservoir, recycled water pump station, piping
and appurtenances necessary to support the use of recycled water for the Project (the
“Improvements”); and,
WHEREAS, the SCRWA facility is a critical wastewater facility requiring twenty-four-
hour operations with limited interruptions; and,
WHEREAS, any and all construction activities at the SCRWA plant must be overseen
and managed by SCRWA Reimbursement due to the critical nature of the facility; and,
WHEREAS, SCRWA shall cause to be designed and constructed the necessary
Improvements at the SCRWA facility, and Amazon shall fully fund all soft and hard costs
associated with the project; and,
WHEREAS, the City and Amazon desire to enter into a reimbursement agreement for
the funding of the design and construction of the Improvements at the SCRWA facility.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby:
1. Adopt Resolution No. 2026-62 to approve the Reimbursement Agreement between the
City and Amazon in the general form attached hereto as Exhibit A; and,
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Resolution No. 2026-62
Reimbursement Agreement with AWS Resolution
City Council Regular Meeting | August 17, 2026
Page 2 of 3
2. Authorize the City Administrator to take all actions to execute the agreement as necessary
or appropriate to give effect to this resolution.
PASSED AND ADOPTED this 17 day of August 2026 by the following roll call vote:
AYES: COUNCIL MEMBERS: BRACCO, CLINE, FUGAZZI, HILTON,
MARQUES, RAMIREZ, BOZZO
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
APPROVED:
______________________________
Greg Bozzo, Mayor
ATTEST:
Kim Mancera, City Clerk
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Resolution No. 2026-62
Reimbursement Agreement with AWS Resolution
City Council Regular Meeting | August 17, 2026
Page 3 of 3
CERTIFICATE OF THE CLERK
I, KIM MANCERA, Interim City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2026-62 is an original resolution, or true and correct copy of a City
Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said held
on Council held Monday, August 17, 2026, with a quorum present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this Tuesday, August 18, 2026.
____________________________________
Kim Mancera
City Clerk of the City of Gilroy
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REIMBURSEMENT AGREEMENT FOR CONSTRUCTION OF A RECYCLED WATER RESERVOIR
This REIMBURSEMENT AGREEMENT FOR CONSTRUCTION OF A RECYCLED WATER RESERVOIR
(“Agreement”) is made and entered into effective this _______day of _____________, 2026 (“Effective
Date”) by and between Amazon Data Services, Inc., a Delaware corporation (along with any related
Amazon entities, “Amazon”) and the City of Gilroy, a California municipal corporation (“City” or “Gilroy”)
as follows:
WHEREAS, Amazon currently has a project underway to construct a data center (the
“Data Center”) in the City of Gilroy, located on a 56-acre undeveloped parcel (the “Amazon Site”) located
at the southeast end of Arroyo Circle, identified as Assessor’s Parcel Number 841-69-044. As approved,
the Data Center was conditioned by City to use recycled water. The recycled water that will be used at the
Data Center is produced at the wastewater treatment plant owned and operated by the South County
Regional Wastewater Authority, a Joint Exercise of Powers Authority (“SCRWA”), which produces recycled
water from the wastewater treated at the SCRWA Wastewater Treatment Plant (the “SCRWA Facility”)
for distribution by the Santa Clara Valley Water District to end-users; and
WHEREAS, Amazon filed an application in 2020 for an Architectural and Site Permit to allow
construction of the Data Center. City prepared a full Environmental Impact Report (“EIR”) pursuant to the
California Environmental Quality Act (“CEQA”). On August 12, 2024, the draft EIR was released for public
comment and was circulated for a 45-day public review period. On July 3, 2025, the City adopted CEQA
Findings with a Statement of Overriding Consideration certifying the EIR and approved the Architectural
and Site Review Permit for the project; and
WHEREAS, Once completely built out, the Data Center facility will require City potable water and
recycled water. Water requirements and availability were extensively analyzed in the EIR. The bulk of the
Data Center’s water use (e.g., industrial and process water use, landscaping and other allowed uses) will
be provided by recycled water. As a condition of approval of its Data Center project, Amazon is obligated
to either construct, or pay for the construction of, certain improvements to facilitate the production of
recycled water at the SCRWA Facility and the delivery of recycled water to users thereof, including the
Amazon Site. This will require certain improvements (the “Recycled Water Improvements”) to be built at
the SCRWA Facility and at the Amazon Site, as well as distribution pipelines between the two sites, all hard
and soft costs related thereto are to be paid for by Amazon; and
WHEREAS, One of the Recycled Water Improvements is required in the Santa Clara Valley Water
District’s South County Recycled Water Master Plan (the “Master Plan”), adopted in 2024, was the
installation of a reservoir and associated facilities at the SCRWA Facility for recycled water. That particular
Recycled Water Improvement, which is the subject of this Agreement and the MOU (as defined below), is
a new Three Million Gallon reservoir and associated improvements to the existing pump station and
related ancillary improvements, including, but not limited to, new piping, valving, inlet/outlet structures,
ventilation systems, SCADA, electrical systems, motors, pumps, and other supporting structures and
features (collectively, the “Reservoir”) to be built, installed, and operated at the SCRWA Facility.
Construction and operation of the Reservoir is for the benefit of SCRWA to increase reliability of recycled
water availability to recycled water users consistent with the Master Plan; and
WHEREAS, As approved by City, the Data Center project will be constructed in two phases and will
use both domestic and recycled water, as specified in the conditions of approval (“Conditions of
Approval”) for the approved Architectural and Site Permit. As specified in the Conditions of Approval,
Phase 1 will initially be allowed to use City water for domestic and industrial uses on a temporary basis.
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Amazon must complete the Recycled Water Improvements no later than two years from the issuance of
the last Certificate of Occupancy for Phase 1 or the first Certificate of Occupancy for Phase 2, whichever
occurs first. Once the Recycled Water Improvements are in place and operational, the Data Center must
then convert to recycled water for all of its industrial water needs for both phases; and
WHEREAS, Because the SCRWA Facility processes wastewater for the Cities of Morgan Hill and
Gilroy, it is deemed critical infrastructure, whose on-going operations should not be disrupted or
otherwise taken offline for any significant period of time. Due to the risk of disrupting treatment plant
operations, SCRWA has historically managed the construction of all improvements within the SCRWA
Facility, including the existing recycled water storage and distribution facilities, instrumentation, piping
and pumps on the SCRWA Facility; and
WHEREAS, The designing, permitting, approval, bidding and construction process for the
construction, installation and implementation of the Reservoir will require a coordinated effort among
SCRWA, the City, and Amazon. SCRWA has the particular technical expertise and experience to design
and construct the Reservoir on the SCRWA Facility. This specialized knowledge of the SCRWA Facility
makes the SCRWA uniquely qualified to design and construct improvements on the SCRWA Facility. Since
the Reservoir will be constructed on the SCRWA Facility, and SCRWA oversees all construction at the
SCRWA Facility, it has been determined that SCRWA will be in charge of designing and constructing the
Reservoir, with all hard and soft costs incurred by SCRWA and City in connection therewith to be paid for
by Amazon pursuant to this Agreement, as administered by City as the Data Center permitting authority;
and
WHEREAS, City and SCRWA will enter into a memorandum of understanding (“MOU”)
concurrently herewith to address the design and construction process and the reimbursement of all hard
and soft costs incurred by City and SCRWA in connection with designing and constructing the Reservoir.
NOW THEREFORE, in consideration of the foregoing recitals and the mutual conditions and
covenants contained herein, the parties hereto agree as follows:
1. Purpose; Term of Agreement; Scope of Costs Eligible for Payment or Reimbursement.
(a) Purpose. City and Amazon hereby agree and acknowledge that the purpose of this
Agreement is to memorialize the parties’ rights and obligations with respect to the design,
permitting and approval processes for the design, construction, installation and
implementation of the Reservoir.
(b) Term of Agreement. The term of this Agreement shall commence on the Effective Date
and remain in effect until the earliest of the following (the "Term"): (i) the date that is six
(6) months following the date that City notifies Amazon that final acceptance of the
construction of the Reservoir has occurred, as determined by SCRWA pursuant to the
MOU; or (ii) the Negotiation Termination Date (as defined in Section 1(d)).
(c) Scope of Costs Eligible for Payment or Reimbursement. “Reservoir Costs” means any and
all hard and soft costs incurred by SCRWA and City in connection with the Reservoir,
including: (i) contractor, subcontractor, and supplier costs; (ii) costs incurred by staff for
SCRWA and City, including the City Attorney for Gilroy and the Legal Counsel for SCRWA,
and including all staff time to review plans and documents and manage the process; (iii)
labor, materials, Equipment, and rental costs; (iv) mobilization, site preparation,
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excavation and grading costs; (v) concrete, structural, mechanical, electrical and plumbing
costs; (vi) testing, inspection, and commissioning; (vii) permits, fees, and governmental
charges; (viii) surveying, geotechnical, environmental, engineering, permitting, bidding
and design costs; (ix) construction management and project management costs; (x) legal,
accounting, and insurance costs allocable to the Reservoir; (xi) bonds and bond
premiums; (xii) consultant costs; (xiii) change orders, unforeseen conditions, scope gaps,
escalation, and other costs necessary to complete the construction and installation of the
Reservoir; (xiv) supervisory fees; and (xv) any other costs reasonably necessary to
complete the Reservoir in accordance with the approved plans and specifications and bid.
Notwithstanding the foregoing, Amazon's aggregate reimbursement obligation for all
Reservoir Costs shall not exceed the sum of the Design Budget and the Construction
Budget (each as finally determined pursuant to Sections 3(a) and 5(a), respectively,
including the thirty percent (30%) contingency) (the "Reservoir Cost Cap"). Any increase
to the Reservoir Cost Cap shall require Amazon's prior written consent.
(d) Termination. In the event Amazon does not proceed with the data center, Amazon may
terminate this Agreement at any time by providing at least ninety (90) days prior written
notice to City (the "Termination Notice"). Such termination shall become effective as of
the date specified in the Termination Notice (the "Negotiation Termination Date"), which
shall be at least ninety (90) days following the date of such Termination Notice. If Amazon
terminates this Agreement pursuant to this Section 1(d), then Amazon's sole liability and
City's exclusive remedy shall be payment from the Reservoir Fund in the amount of (i) any
outstanding amounts invoiced by City pursuant to Section 6(a) as of the Negotiation
Termination Date; plus (ii) any further Reservoir Costs under this Agreement that City or
SCRWA actually incurred prior to the Negotiation Termination Date, or which City or
SCRWA could not have avoided after receiving the Termination Notice, in each case
evidenced by reasonable documentation; plus (iii) any further Reservoir Costs under this
Agreement that City or SCRWA reasonably anticipates will be incurred to place the
Reservoir into (A) a state of “safe and stable” condition or (B) the condition existing prior
to date of any construction under this Agreement, in either case in City’s sole and absolute
discretion. Immediately following the Negotiation Termination Date, City will use
commercially reasonable efforts (and shall instruct SCRWA to use commercially
reasonable efforts) to minimize the amount of any Reservoir Costs it incurs, cease all
Services and procurement of Equipment, and determine the amount of all Reservoir Costs
due to be reimbursed by Amazon, if any. In the event Amazon has received the first
Certificate of Occupancy for the Data Center, this Section 1(d) shall be null and void and
have no further force or effect. Amazon’s reimbursement and payment obligations under
this Section 1(d) shall survive the expiration or sooner termination of this Agreement.
2. Establishment of the Fund; Fund Administration. City shall establish a dedicated, interest-bearing
fund (the “Reservoir Fund”), which shall be used solely for payment or reimbursement of
Reservoir Costs to City and SCRWA and for no other purpose. Funds in the Reservoir Fund shall
be maintained separately and shall not be commingled with any other funds, and any interest
accrued on such funds shall be for the benefit of Amazon. City shall administer the Reservoir Fund
and disburse funds for Reservoir Costs incurred by City and SCRWA. Any amounts that remain in
the Reservoir Fund following the expiration or sooner termination of the term of this Agreement,
shall be refunded to Amazon within fifteen (15) business days thereafter.
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3. Design Budget Funding.
(a) Design Budget. Pursuant to the MOU, following the Effective Date, SCRWA will prepare
(or caused the preparation of) an estimated budget for the estimated Reservoir Costs
expected to be incurred in connection with the design phase of the Reservoir, including
the preparation of any plans and specifications, up to the point where bids have been
received and SCRWA is ready to award a construction contract, plus an additional
contingency equal to thirty percent (30%) of such estimated Reservoir Costs
(“Design Budget”).
(b) Design Budget Deposit. Within ten (10) days after Amazon receives notice from City that
the Design Budget has been determined, Amazon shall remit payment to City in the
amount of the total Design Budget (the “Design Deposit”), and City shall deposit such
Design Deposit into the Reservoir Fund.
4. Bidding Process; Construction of Reservoir. Pursuant to the MOU, SCRWA will (i) solicit, receive,
evaluate and negotiate bids for the permitting and approval processes and the construction,
installation and implementation of the Reservoir, and (ii) supervise the public bidding process,
resulting in the selection of the contractor which will receive the award of the contract to
construct the Reservoir. Thereafter, pursuant to the MOU, SCRWA will oversee and manage the
construction of the Reservoir.
5. Construction Budget Funding.
(a) Construction Budget. Pursuant to the MOU, based on the chosen bid, SCRWA will prepare
or cause to be prepared an estimated budget of all Reservoir Costs expected be incurred
in connection with the construction phase of the Reservoir, including permitting and
approval processes and the construction, installation and implementation of the
Reservoir, plus an additional contingency equal to thirty percent (30%) of such estimated
Reservoir Costs (“Construction Budget”). The thirty percent (30%) contingency may be
used for Reservoir Costs, including change orders, unforeseen conditions, scope gaps,
escalation, and other Reservoir Costs necessary to complete the construction and
installation of the Reservoir.
(b) Construction Budget Amount. Within ten (10) days after Amazon receives notice from City
that the Construction Budget has been determined, Amazon shall remit payment to City
in an amount sufficient to fund the Construction Budget (the “Construction Deposit”)
such that City shall deposit such Construction Deposit into the Reservoir Fund.
6. Disbursement of Funds; Additional Payments.
(a) Disbursement of Funds. Pursuant to the MOU, SCRWA and City will submit requests to
City for Reservoir Costs incurred by SCRWA and City, respectively, and City shall disburse
funds to (i) SCRWA for such Reservoir Costs and (ii) City for such Reservoir Costs. In no
event shall funds in the Reservoir Fund be used for any purpose other than the payment
or reimbursement of Reservoir Costs as expressly provided in this Agreement. Amazon
shall have the right, upon reasonable prior written notice to City, to audit or inspect the
books, records, and accounts of City relating to Reservoir Costs and disbursements from
the Reservoir Fund.
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(b) Additional Payments for Reservoir Costs. Upon written notice from City, Amazon shall
remit payment to City for deposit into the Reservoir Fund within ten (10) days after
Amazon’s receipt of such request to bring the balance in the Reservoir Fund to an amount
City reasonably anticipates will be necessary and sufficient to allow the parties to
complete the portions of the work covered by the Design Budget or the Construction
Budget, as the case may be, which shall also include the contingency equal to thirty
percent (30%) of such Design Budget or Construction Budget; provided, however, that in
no event shall the aggregate of all amounts deposited into the Reservoir Fund (including
the Design Deposit, the Construction Deposit, and any additional payments under this
Section 6(b)) exceed the Reservoir Cost Cap without Amazon's prior written consent.
7. Supply Chain Standards. City shall, and shall cause SCRWA and their respective contractors and
subcontractors to, comply with the Supply Chain Standards to the extent applicable to their
activities in connection with the Reservoir. If any updates made to the Supply Chain Standards
after the Effective Date are unacceptable to City, City may provide notice to Amazon of the same,
including a full explanation. Following Amazon's receipt of such notice, the Parties will work
together in good faith for a reasonable period to agree to any exceptions from the updates to the
Supply Chain Standards.
8. Insurance. During the Term, pursuant to the MOU, SCRWA will cause its professional service
provider(s) and contractor(s) to maintain insurance coverage as needed to secure its obligations
and potential liabilities under the MOU. Such insurance shall include at least the coverages set
forth in Exhibit C to this Agreement, the limits of which may be satisfied by combining primary
liability and umbrella excess liability coverage. The insurance policies required under this
Agreement must: (a) be issued by companies with a rating of A-/VII or better in the current Best's
Insurance Reports published by A.M. Best Company, Inc.; (b) not be cancelled or have coverage
reduced without at least thirty (30) days' prior written notice to Amazon; (c) for Commercial
General Liability only, name Amazon, and its Affiliates to which this Agreement is assigned in
accordance with Section 12 below, as additional insureds; (d) provide coverage on an occurrence
basis; (e) waive any insurer right of subrogation against Amazon and its Affiliates and their
respective officers, directors, employees, agents, and contractors; and (f) provide primary
coverage, without any right of contribution from any other insurance that Amazon may have. City
shall deliver to Amazon certificates of insurance for the required insurance coverages within
fifteen (15) business days following the effective date of the applicable contract with the
professional service provider or contractor, and at each subsequent policy renewal upon
Amazon's request.
9. Indemnification by City. City shall indemnify, defend, and hold harmless Amazon and its Affiliates
and their respective officers, directors, employees, agents, successors, and assigns (collectively,
the "Amazon Indemnified Parties") from and against all third party claims, third party demands,
injuries to third parties (including personal injury, death, and property damage) and legal
proceedings brought by third parties and all damages, losses, costs, and expenses (including
reasonable attorneys' fees) in connection with such claims, demand, injuries and legal
proceedings to the extent arising out of or resulting from: (a) the fraud, negligence or willful
conduct of City, SCRWA, or any of their respective officers, directors, Affiliates, employees, agents,
representatives, or contractors in connection with performance of their obligations under this
Agreement or the MOU; (b) any violation of applicable law arising from the activities of City or
any of their respective officers, directors, Affiliates, employees, agents, representatives, or
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contractors in connection with the performance of their obligations under this Agreement or the
MOU; (c) the failure by City to perform any of their respective obligations under this Agreement
or the MOU; or (d) City's or SCRWA's infringement, misappropriation, or other violation of any
third party's intellectual property rights.
10. Limitation of Liability. NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY INDIRECT,
INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS,
LOST REVENUE, LOST PRODUCTION, LOST BUSINESS, LOST GOODWILL, OR LOST OPPORTUNITY)
ARISING OUT OF OR RELATING TO THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING, THIS
PROVISION SHALL NOT APPLY TO LIABILITY ARISING FROM CITY'S INDEMNITY OBLIGATIONS
UNDER SECTION 9 OF THIS AGREEMENT TO THE EXTENT SUCH LIABILITY ARISES FROM DAMAGE
TO THIRD PARTIES.
11. Events of Default/Remedies. A Party’s failure to perform any material obligation or covenant
under this Agreement, which failure continues for 30 days after written notice from the other
Party (“Non-Defaulting Party”), will constitute an “Event of Default” of such Party (the
“Defaulting Party”). Upon the occurrence of an Event of Default and notice to the Defaulting
Party, the Non-Defaulting Party may suspend performance of its obligations under this
Agreement, including for Amazon, any obligation to pay Reservoir Costs; assert against the
Defaulting Party a claim of direct Damages incurred by the Non-Defaulting Party in connection
with such Event of Default; and/or terminate this Agreement.
12. Assignment. No party may assign this Agreement without the other party’s prior written consent,
which will not be unreasonably withheld. Amazon may assign this Agreement to an Affiliate
without City’s consent.
13. Governing Law and Venue. This Agreement shall be governed by and construed in accordance
with the laws of the State of California without regard to the conflict of laws provisions of any
jurisdiction. The exclusive jurisdiction and venue with respect to any and all disputes arising
hereunder shall be in State and Federal courts located in California in accordance with applicable
Law.
14. Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable Law, any
right it may have to a trial by jury in respect of any dispute arising out of or relating to this
Agreement.
15. Entire Agreement. This Agreement supersedes any and all prior agreements, whether oral or
written, between the parties hereto with respect to the subject matter of this Agreement and
contains all the covenants and agreements between the parties with respect to such topics. Each
party to this Agreement acknowledges that no representations, inducements, promises or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, which are not embodied herein. No other agreements or conversation with any officer,
agent or employee of City prior to execution of this Agreement shall affect or modify any of the
terms or obligations contained in any documents comprising this Agreement.
16. Exhibits. The following Exhibits are attached hereto and incorporated by reference: Exhibit A
(Services), Exhibit B (Equipment), Exhibit C (Insurance Coverages).
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17. Amendment & Modification. No amendment, modification, alteration or change to the terms of
this Agreement will be effective unless and until made in a writing signed by both parties hereto.
Oral modifications to this Agreement shall be void and of no force or effect, including any oral
modifications to the Design Budget and Construction Budget.
18. Binding on Successors and Assigns. Subject to Section 12 above, the covenants, terms, conditions
and provisions of this Agreement shall apply to, and shall bind, the heirs, successors, executors,
administrators, and assigns of both parties hereto.
19. Interpretation. The captions and headings of the various articles, sections, paragraphs and
subparagraphs of this Agreement are for convenience only and shall not be considered nor
referred to for resolving questions of interpretation. This Agreement contains the contributions
of both parties, each of which has had the opportunity to consult competent counsel, and it is
expressly agreed and understood that the rule stated in Civil Code Section 1654, that ambiguities
in a contract should be construed against the drafter, shall have no application to the construction
of this Agreement.
20. Attorneys’ Fees. If any action at law or in equity, including an action for declaratory relief, is
brought to enforce or interpret any provision of this Agreement, the prevailing party shall be
entitled to reasonable attorneys’ fees and costs, which may be set by the court in the same action
or in a separate action brought for that purpose, in addition to any other relief to which that party
may be entitled.
21. No Third-Party Beneficiaries. Except for SCRWA, which is an intended third-party beneficiary of
this Agreement, this Agreement shall not be construed or deemed to be an agreement for the
benefit of any third party or parties, and no third party or parties will have any claim or right of
action hereunder for any cause whatsoever.
22. Relationship of Parties. The parties are independent contractors, and nothing in this Agreement
creates an employer-employee relationship, a partnership, joint venture, or other relationship
between the parties. Neither party has authority to assume or create obligations of any kind on
the other party's behalf.
23. Severability. If any provision of this Agreement, including any exhibit hereto, is held by a court of
competent jurisdiction to be invalid, void, or unenforceable, the court is authorized and instructed
to modify this Agreement so that the transactions and agreements contemplated herein are
consummated as originally intended to the fullest extent possible.
24. Waiver. Waiver by either Party of any breach, violation of, or failure to perform any covenant,
term, condition or provision of this Agreement, or of the provisions of any ordinance or law, or
any delay in enforcement of the same, will not be deemed to be a waiver of any other term,
covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the
same or of any other term, covenant, condition, provision, ordinance or law.
25. Time of the Essence. All dates and times referred to in this Agreement are of the essence.
26. Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of
which shall be deemed an original. This Agreement and any other documents to be delivered in
connection herewith may be electronically signed. Any digital or electronic signatures (including
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pdf, facsimile or electronically imaged signatures provided by DocuSign or any other digital
signature provider) appearing on this Agreement or such other documents shall have the same
force and effect as handwritten signatures for the purposes of validity, enforceability and
admissibility.
27. Notices. Any notices required or permitted to be given hereunder shall be given in writing and
shall be delivered by U.S. Mail, registered or certified, return receipt requested, postage prepaid,
or by overnight delivery service showing receipt of delivery, or by personal delivery, or by facsimile
(fax) or email. Notices or demands shall be addressed as follows:
City: City of Gilroy
Attn: City Administrator
7351 Rosanna Street
Gilroy, CA 95020
Fax: 408-846-0500
Email: Matt.Morley@cityofgilroy.org,
Harjot.Sangha@cityofgilroy.org
With a copy to: City of Gilroy
Attn: Director, Utilities Department
7351 Rosanna Street
Gilroy, CA 95020
Fax: 408-846-0500
Email: Derek.Cray@cityofgilroy.org,
Bret.Swain@cityofgilroy.org
Amazon: Amazon Data Services, Inc.
410 Terry Avenue North Seattle, WA 98109
Attn: General Counsel (AWS)
Email: contracts-legal@amazon.com,
infraenergy@amazon.com
or to such other address as either party may from time to time specify in writing to the other party in
accordance with this Section 27.
Notices shall be deemed to have been given upon the earlier of actual receipt; or the next business
day after delivery to an overnight delivery service; or three (3) days after the deposit in the U.S. mail; or
the same day notice is faxed or emailed (if faxed or emailed before 5:00 p.m. PST), and on the next
business day (if faxed or emailed after 5:00 p.m. PST).
28. Definitions. As used in this Agreement, the following terms shall have the meanings set
forth below:
(a) "Affiliate" means, with respect to any person, each person that directly or indirectly controls,
is controlled by, or is under common control with such designated person. For purposes of this definition,
"control" (including, with correlative meanings, the terms "controlled by" and "under common control
with"), as used with respect to any person, means (i) the direct or indirect right to cast at least 50% of the
votes exercisable at an annual general meeting (or its equivalent) of such person or, if there are no such
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rights, ownership of at least 50% of the equity or other ownership interest in such person, or (ii) the right
to direct the policies or operations of such person. For purposes of this Agreement, the term "person"
means an individual, corporation, partnership, limited liability company, association, trust or other entity
or organization, including a Governmental Authority.
(b) "Amazon Indemnified Parties" means Amazon and its Affiliates and their respective directors,
employees, agents, representatives, successors, and assigns.
(c) "Damages" means any liability, damage, judgment, fine, penalty, settlement, expense, and
cost.
(d) "Equipment" means all supplies, goods, materials, components, parts, structures, assemblies,
and distribution equipment including any of the foregoing set forth in Exhibit B.
(e) "Governmental Authority" means any national, state, provincial, local, tribal or municipal
government, any political subdivision thereof or any other governmental, regulatory, quasi-governmental,
judicial, public or statutory instrumentality, authority, body, agency, department, bureau, or entity with
authority to bind a party at law.
(f) "Law" means all laws, statutes, rules, regulations, ordinances, codes, judgments, orders,
approvals, tariffs, decrees, and other pronouncements having the effect of law of any Governmental
Authority.
(g) "Services" means the services set forth in Exhibit A.
(h) "Supply Chain Standards" means the supply chain standards available at:
https://sustainability.aboutAmazon.com/people/supply-chain, as amended or superseded from time to
time.
[Signatures Appear on Following Page]
Docusign Envelope ID: A1610F65-2351-8AC2-8261-F818C74407A3
-10- 4925-1933-7403v12 ALF\04706240
IN WITNESS WHEREOF, the parties hereto have set their signatures below as of the date below
each party’s respective signatures.
Executed at Gilroy, California, on the date and year written below.
AMAZON: CITY or GILROY:
AMAZON DATA SERVICES, INC.,
a Delaware corporation
CITY OF GILROY,
a California municipal corporation
By: By:
Name: Name:
Title: Title:
Date: Date:
Social Security or Taxpayer
Identification Number
Approved as to Form ATTEST:
City Attorney City Clerk
Docusign Envelope ID: A1610F65-2351-8AC2-8261-F818C74407A3
-11- 4925-1933-7403v12 ALF\04706240
EXHIBIT A
SERVICES
Service Completion Date Price
3 MG Reservoir Design
12 months from the effective date
of the SCRWA contract with the
applicable design consultant not
including the public bidding
process.
$900,000
Total: $900,000
Amazon Reimbursement Cap: $900,000
Docusign Envelope ID: A1610F65-2351-8AC2-8261-F818C74407A3
-12- 4925-1933-7403v12 ALF\04706240
EXHIBIT B
EQUIPMENT
Equipment
Item Delivery Date Price
Total: $[_]
Docusign Envelope ID: A1610F65-2351-8AC2-8261-F818C74407A3
-13- 4925-1933-7403v12 ALF\04706240
EXHIBIT C
INSURANCE COVERAGES
Professional Services Provider Coverage and Limits
Coverage Type Minimum Coverage Limits.
Commercial General Liability (including
products/completed operations, advertising, and
personal injury liability)
$2,000,000 per occurrence
$4,000,000 general aggregate
Business Automobile Liability (including coverage for
all owned, non-owned and hired autos, and no fault
coverage where applicable)
$1,000,000 per occurrence (injury and
property damage combined)
Workers’ Compensation (including coverage for all
employer liabilities under workers’ compensation and
similar Laws that may accrue for any Vendor
employee, in all jurisdictions where Vendor has
employees)
Statutory Requirements in all jurisdictions
where Vendor has employees
Employer’s Liability $1,000,000
Professional Liability or Errors and Omissions (required
if Vendor is providing design or other professional
services)
$1,000,000 per claim
Docusign Envelope ID: A1610F65-2351-8AC2-8261-F818C74407A3
-14- 4925-1933-7403v12 ALF\04706240
EXHIBIT C
INSURANCE COVERAGES (Continued)
Contractor Coverage and Limits
Coverage Type Minimum Coverage Limits.
Commercial General Liability (including
products/completed operations, advertising, and
personal injury liability)
$5,000,000 per occurrence
$5,000,000 general aggregate
Business Automobile Liability (including coverage for
all owned, non-owned and hired autos, and no fault
coverage where applicable)
$1,000,000 per occurrence (injury and
property damage combined)
Workers’ Compensation (including coverage for all
employer liabilities under workers’ compensation and
similar Laws that may accrue for any Vendor
employee, in all jurisdictions where Vendor has
employees)
Statutory Requirements in all jurisdictions
where Vendor has employees
Employer’s Liability $1,000,000
Professional Liability or Errors and Omissions (required
if Vendor is providing design or other professional
services)
$1,000,000 per claim
Docusign Envelope ID: A1610F65-2351-8AC2-8261-F818C74407A3