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City of San Marcos/Guadalupe-Blanco River Authority Water Treatment Facilities Service Contract Article I - Definitions and Interpretation Fees and Costs, except as explicitly excluded or limited under any provision of this Service Contract. "Major Maintenance Repair and Replacement Schedule" has the meaning specified in subsection 8.1(C). "Materially" III the context of Changes in Law and Uncontrollable Circumstances, means having a cost consequence to a party during a Contract Year of $1,500 or more. Such costs will be subject to Cost Substantiation as described in Section 14.7. "Operation and Maintenance Manual" means the manual and related computer programs prepared by the Authority in accordance with Good Industry Practice, and generally containing operating and maintenance procedures and other instructions, policies, directives, routines, schedules and other matters relating to the Contract Services, maintained and updated as required by Article VI and Appendix 3. "Overdue Rate" means the maximum rate of interest permitted by the laws of the State, if applicable, or the Prime Rate, whichever is lower. "Pass-through Cost Component" has the meaning set forth in Section 10.4. "Performance Guarantees" means the guarantees of performance made by the Authority set forth in Article VII. "Permits" means [1] the TCEQ authorization to operate the Plant and [2] the Edwards Aquifer Authority permits for withdrawal of Edwards Aquifer water through the City's wells. "Plant" means the San Marcos Surface Water Treatment Plant and the real property on which it is located described in Appendix 1, consisting generally of that separate and contiguous part of the Water Treatment System comprising buildings, structures and equipment, and the roads, grounds, fences and landscaping appurtenant thereto, utilized for treatment of Raw Water, laboratory functions and administration and management of the Facilities, including any Capital Modifications made thereto from time to time. The Plant is located at 91 Old Bastrop Highway, San Marcos, Texas. "Plant Site" means the parcel of real property described or referred to in Appendix 1 on which the improvements constituting the Plant are located. "PPI" means the Producer Price Index-Commodities published by the BLS, Not Seasonally Adjusted, Finished Goods, Series I.D. WPUSOP3000, or similar data if the BLS ceases to publish this index. "Pre-Existing Environmental Condition" means, and is limited to, (1) the presence anywhere in, on or under the Facilities on the Contract Date of undisclosed underground storage tanks (for the storage of chemicals or petroleum products) that are not then in use; and (2) the presence of Hazardous Materials or Regulated Substances in 11