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<br />City of San Marcos/Guadalupe-Blanco River Authority Service Contract <br />Water Treatment Facilities Operations Article VIII - Maintenance, Repair and Replacement <br /> <br />required under the Contract Standards, including all maintenance, repair and replacement <br />which may be characterized as "capital" in nature. The Operation and Maintenance Manual, or <br />a similar document, shall contain the Authority's plan for the maintenance, repair and <br />replacement of the Facilities as set forth in Section 8.5 and will include the Authority's <br />schedule of major maintenance, repair and replacement set forth in Appendix 3 (the "Major <br />Maintenance, Repair and Replacement Schedule"). With respect to the specific items included <br />in the Major Maintenance, Repair and Replacement Schedule, the Authority shall be obligated <br />to perform such work unless substitute work of equal value is approved in writing by the City. <br />Notwithstanding the itemized Major Maintenance, Repair and Replacement ScheduIe, the <br />Authority is responsible for performing all major maintenance, repair and replacement and will <br />not be entitled to any additional compensation. However, costs for maintenance, repairs or <br />replacements that result from an Uncontrollable Circumstance or are insured by the City's <br />property insurance (other than those resulting from the negligent or intentional acts or <br />omissions of the Authority or its officers, agents, employees or Subcontractors) shall be <br />reimbursed by the City to the Authority, subject to the provisions of Section 12.2(E). <br />(D) Spare Parts. The Authority shall maintain a spare parts inventory in <br />accordance with Good Industry Practice. <br />SECTION 8.2. PROCEDURES TO ASSURE SUFFICIENCY OF AUTHORITY <br />MAINTENANCE. REPAIR AND REPLACEMENT WORK. The parties shall work together to <br />ensure that an initial evaluation of the Facilities, equipment, assets, expendable supplies and <br />spare parts shall be performed within 60 days of the Contract Date for the purpose of <br />establishing the baseline condition of the structures and the quantity and condition (including <br />functionality) of equipment, supplies, chemicals and spare parts. The parties shall also work <br />together to ensure that a similar evaluation of the condition and functionality of the Facilities <br />will be performed in the [mal Contract Year. The purpose of the initial evaluations shall be to <br />establish an information baseline for determining compliance by the Authority with its <br />maintenance, repair and replacement obligations under this Article. The evaluation of the <br />Facilities shall determine and establish the state of repair of the Facilities as of the <br />Commencement Date. As part of the evaluation, the Authority shall digitally photograph and <br />prepare an itemized inventory of all property constituting the Facilities and shall review all <br />relevant information provided by the City. In the event that the parties cannot agree on the <br />results of the initial or [mal evaluations, an Independent Evaluator shall be selected by the <br />parties. The Authority shall ensure that the Facilities are in at least as good a condition as <br />when tumed over to the Authority, reasonable wear and tear excepted. The Facilities will be <br />maintained, repaired and replaced in a manner which will result in the Facilities being tumed <br />over to the City in good working order and which avoids the necessity for the City to undertake <br />an overhaul of the Facilities when assuming management responsibilities at the end of the <br /> <br />57 <br />