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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 />manufacturer's written warranties on new equipment purchased and installed in the Facilities <br />by the City or by the Authority, and shall be the agent of the City in enforcing any written <br />equipment warranties and guarantees. The Authority shall not be required to commence or <br />maintain any litigation with respect to such warranties or guarantees, but may do so in its <br />discretion. The Authority shall cooperate with and provide staff assistance to the City if the <br />City seeks to enforce warranties and guarantees through litigation. <br />SECTION 8.8. LOSS. DAMAGE OR DESTRUCTION TO THE FACILITIES. <br />(A) Prevention and Repair. The Authority shall use care and diligence, and shall take <br />appropriate precautions, to protect the Facilities from loss, damage or destruction. The <br />Authority shall report to the City promptly upon obtaining knowledge thereof, any loss, damage <br />or destruction to the Facilities and as soon as practicable thereafter shall submit a report to <br />the City. The Authority shall also submit to the City within 24 hours of receipt copies of all <br />accident and other reports filed with, or given to the Authority by, any person, insurance <br />entity, adjuster or Govemmental Body. The parties shall cooperate so as to promptly <br />commence and proceed with due diligence to complete the repair, replacement and restoration <br />of the Facilities to at least the character and condition thereof existing immediately prior to the <br />loss, damage or destruction, in accordance with and subject to the procedures set forth in <br />Article IX and Article XII, as applicable. The City shall have the right to monitor, review and <br />inspect the performance of any repair, replacement and restoration work implemented by the <br />Authority . <br /> <br />(B) Insurance and Other Third Party Payments. To the extent that any <br />repair, replacement or restoration costs incurred pursuant to this Section can be recovered <br />from any insurer or from another third party, each party shall use due diligence in attempting <br />to recover such costs from the insurer or third party, and each party shall assist the other in <br />exercising such rights as it may have to effect such recovery. Each party shall provide the <br />other with copies of all relevant documentation at no cost to the other party, and shall <br />cooperate with and assist the other party upon request by participating in conferences, <br />negotiations and litigation hearings regarding insurance claims. <br />(C) Uninsured Costs. The City shall provide all funds (except as provided by <br />subsection 12.2(E) with respect to the Authority's obligation to cost-share in the event of <br />Uncontrollable Circumstances) necessary to pay the costs of repairing, replacing and restoring <br />the Facilities in accordance with this Section and all insurance proceeds and recoveries from <br />third parties resulting from damage to or the loss or destruction of the Facilities shall be for the <br />account of the City, provided, however, that such costs not covered by insurance proceeds or <br />third party payments shall be bome by the Authority to the extent the loss, damage or <br />destruction was not caused by Uncontrollable Circumstances or City Breach. <br /> <br />60 <br />