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<br />City of San Marcos/Guadalupe-Blanco River Authority <br />Water Treatment Facilities <br /> <br />Service Contract <br />Article VI - Management and Operation <br /> <br />knowledge of any such event or circumstance, and of any Legal Proceeding alleging such <br />non-compliance. <br />(D) Fines. Penalties and Remediation. Except to the extent excused by <br />Uncontrollable Circumstances, City Breach or the exceptions to the Authority's assumption of <br />the "as-is" risk set forth in subsection 6.4(C), in the event that the Authority or any <br />Subcontractor fails at any time to comply with Applicable Law with respect to the Facilities, <br />Finished Water, or this Service Contract, the Authority shall, without limiting any other remedy <br />available to the City upon such an occurrence and notwithstanding any other provision of this <br />Service Contract: (1) promptly correct such failure and resume compliance with Applicable <br />Law; (2) bear all Loss-and-Expense of the Authority and the City resulting therefrom; (3) payor <br />reimburse the City for any resulting actual damages, fInes, assessments, levies, impositions, <br />penalties or other charges; (4) make any Capital Modifications and changes in operating and <br />management practices that the City may request which are necessary to assure that the failure <br />of compliance with Applicable Law will not recur; and (5) comply with any corrective action <br />plan filed with or mandated by any Govemmental Body in order to remedy a failure of the <br />Authority to comply with Applicable Law. <br />(E) No Nuisance Covenant. The Authority shall keep the Facilities neat, <br />clean and litter-free at all times, and ensure that the operation of the Facilities does not create <br />any odor, litter, noise, fugitive dust, vector or other adverse environmental effects constituting, <br />with respect to each of the foregoing, a nuisance condition under Applicable Law. Should any <br />such nuisance condition occur which is not caused by Uncontrollable Circumstances, City <br />Breach or other City activity, the Authority shall promptly remedy the condition, pay any <br />regulatory filles or penalties relating thereto, make any Capital Modifications and changes in <br />operating and management practices that the City may request which are necessary to prevent <br />a recurrence of the nuisance condition, and, to the full extent of its liability under applicable <br />law, pay costs related to the nuisance condition in accordance with Section 12.3. <br />SECTION 6.12. GOVERNMENTAL APPROVALS. (A) Applications and <br />Submittals. Except with respect to the City's Edwards Aquifer Authority Permit, the Authority, <br />in a timely manner, shall make all applications necessary to obtain and maintain the Permits <br />and all other Govemmental Approvals required to be made, obtained or maintained under <br />Applicable Law in order to operate the Facilities, including those set forth in Appendix 2. With <br />respect to Govemmental Approvals, the Authority, in a timely manner, shall: (1) develop and <br />fumish all necessary supporting material; (2) supply all data and information which may be <br />required; (3) familiarize itself with the terms and conditions of such Governmental Approvals; <br />(4) attend required meetings and hearings; and (5) take other action necessary in obtaining, <br />maintaining, renewing, extending and complying with the terms of such Governmental <br />Approvals. All permit and filing fees required in order to obtain and maintain Govemmental <br /> <br />42 <br />