Res 2005-127 - Laserfiche WebLink

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City of San Marcos/Guadalupe-Blanco River Authority Water Treatment Facilities Service Contract Article IX - Capital Modifications SECTION 9.7. FINANCING CAPITAL MODIFICATIONS. (A) City Financing. The City shall provide fmancing for any Capital Modification for which it is fmancially responsible under this Article, and, in the event the Authority is selected to implement the Capital Modification, shall make the proceeds of the financing available to the Authority to pay the negotiated price, as well as the price of any agreed change orders, on the milestone schedule and subject to any retainage or other conditions negotiated by the parties pursuant to this Section. (B) Authority Financing. The City may elect, notwithstanding the provisions of subsection (A) of this Section, to request that the Authority fmance all or any portion of the cost of any Capital Modification which the Authority is implementing pursuant to this Article. The terms and conditions of any such fmancing and its impact on the Service Contract and Service Fee shall be negotiated by the parties. The terms and conditions of any such financing shall include, but are not limited to, any City right to refinance any such Authority financing and any reimbursement due the Authority with respect to the unpaid principal amount of such fmancing if this Service Contract is terminated prior to the end of its scheduled Term. If the parties are unable to negotiate the terms and conditions and the impact on the Service Contract and Service Fee, then the City shall implement the Capital Modification pursuant to other Sections of this Article. SECTION 9.8. AUTHORITY NON-IMPAIRMENT RIGHTS. (A) Authority Non- Impairment. No Capital Modification, other than a Authority-requested Capital Modification, shall be made that impairs any right, impairs the ability to perform, imposes any additional obligation or liability, or increases the costs of the Authority hereunder, including operating, maintenance, repair and replacement costs related to such Capital Modification. The Authority shall have no right to object to any such Capital Modification, however, and such Capital Modification shall become part of the Facilities upon passing the tests for Acceptance, so long as the City affords the Authority appropriate price, schedule, performance and other relief necessary to avoid any such effect. (B) City Operating Rights. While it is the intention of the City to have the Authority operate, maintain, repair, replace and manage Capital Modifications on an integrated basis with the Facilities, the City shall have the right, notwithstanding any other provision hereof, at its own cost and expense to operate, maintain, repair, replace and manage any Capital Modification made to the Facilities at the direction of the City. Any such operation, maintenance, repair, replacement and management work performed by the City shalI not impair any right, impair the ability to perform, impose any additional obligation or liability, or increase the costs of the Authority hereunder. The City's rights hereunder do not apply to Capital Modifications made to the Facilities at the direction of the Authority. 66