Res 2009-038 - Laserfiche WebLink

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City of San Marcos/Guadalupe-Blanco River Authority Service Contract Water Treatment Facilities Article XII - Insurance, Uncontrollable Circumstances and Indemnification believes it is entitled to any performance, price or schedule relief on account of any Uncontrollable Circumstance, it shall furnish the City written notice of the specific relief requested and detailing the event giving rise to the claim within 30 days after the giving of notice delivered pursuant to subsection (B) of this Section, or if the specific relief cannot reasonably be ascertained and such event detailed within such 30-day period, then within such longer period within which it is reasonably possible to detail the event and ascertain such relief. Within 30 days after receipt of such a timely submission from the Authority the City shall issue a written determination as to the extent, if any, it concurs with the Authority claim for performance, price or schedule relief, and the reasons for the determination. The Authority acknowledges that its failure to give timely notice pertaining to an Uncontrollable Circumstance as required under this Section may adversely affect the City. To the extent the City asserts that any such adverse effect has occurred and that the relief to the Authority or the additional cost to be borne by the City under this subsection should be reduced to account for such adverse effect, the Authority, after reasonable notice by the City, shall have the affirmative burden of refuting the City's assertion. Absent such refutation, the reduction in relief to the Authority and the reduction in additional cost to the City asserted by the City in its notice shall be effective. (D) Capital Modifications. Before proposing any adjustment to the Service Fee in its notice of requested relief under this Section, the Authority shall determine whether any increased costs of operation and maintenance of the Facilities resulting from an Uncontrollable Circumstance can reasonably and prudently be reduced by the undertaking of a Capital Modification. In the event that the Authority makes such a determination, the Authority shall so advise the City in accordance with Article IX. The City shall thereupon determine, in its sole discretion, whether such a Capital Modification shall be undertaken and shall so advise the Authority within 60 days of receipt of such notice by the Authority. In no event shall the Authority undertake such a Capital Modification except at the express written direction of the City. (E) Share of Costs of Uncontrollable Circumstances. Except with respect to the parties' respective 'payment obligations, neither the City nor the Authority shall be liable to the other for any failure or delay in performance of any obligation under the Service Contract due to the occurrence of an Uncontrollable Circumstance. The costs related to the occurrence of an Uncontrollable Circumstance shall be borne first by any available insurance to cover the Uncontrollable Circumstance and secondly by the City except that the Authority shall pay the first $25,000 each Contract Year (such amount to escalate each Contract Year by the Service Fee Adjustment Factor) of the costs necessitated by each Uncontrollable Circumstance. The Authority shall use its best efforts to mitigate the effect of any Uncontrollable Circumstance. Any costs occurring over future Contract Years as the result of an Uncontrollable 83