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City of San Marcos/Guadalupe-Blanco River Authority Water Treatment Facilities Service Contract Article I - Definitions and Interpretation "Staffmg Plan" has the meaning specified in Appendix 4. "State" means the State of Texas. "Subcontract" means an agreement or purchase order by the Authority or a Subcontractor to the Authority, as applicable. "Subcontractor" means a person (other than employees of the Authority) employed or engaged by the Authority or any person directly or indirectly in privity with the Authority (including all subcontractors and every sub-subcontractor of whatever tier) for any portion of the Contract Services, whether for the fumishing of labor, materials, equipment, supplies, services, or otherwise. "System" means the Water Treatment System. "Tax" means any tax, fee, levy, duty, impost, charge, surcharge assessment or withholding, or any payment-in-lieu thereof, and any related interest, penalty or addition to tax. "TCEQ" means the Texas Commission on Environmental Quality or its successor agency as to regulation and/or permitting of the Water Treatment System by the State of Texas. "Term" has the meaning set forth in Article III. "Termination Date" means the last day of the Term of this Service Contract. "Transaction Form" means any of the Transaction Forms appended to this Service Contract. "Transferred Property" means all vehicles, rolling stock, spare parts, hand tools, fumiture and fIxtures, computers and communications equipment and Consumables in stock at the Facilities and having operational utility which are to be transferred to the Authority on the Commencement Date for its use, as described in Appendix 1. "Transition Period" means the period from the Contract Date to, and including, the day preceding the Commencement Date, during which the parties will carry out their transition obligations under Article IV. "Unaccounted-For Water" means that portion of the Raw Water entering the Plant that is not delivered to water customers as Finished Water. "Uncontrollable Circumstance" means any act, event or condition that is beyond the reasonable control of the party relying thereon as justification for not performing an obligation or complying with any condition required of such party under the Service Contract, and that materially interferes with or materially increases the cost of performing its obligations hereunder, to the extent that such act, event or condition is not the result of the willful or negligent act, error or omission, failure to exercise reasonable diligence, or breach of the Service Contract on the part of such party. 14