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<br />The City of San Marcos Facilities Service Contract <br /> <br />"Major Repairs and Replacements" means those repairs and replacements to the <br />Facilities that significantly extend the equipment useful life or the service life of the Facilities <br />and which exceed $5,000 per repair or replacement needed. <br />"Odor Guarantee" has the meaning set forth in Section 8.3. <br />"Off-Site" means elsewhere than on or at the Facilities Site. <br />"Off-Site Residuals Disposal Obligations" means the obligations of the Company <br />hereunder with respect to Residuals the performance of which takes place Off-Site, including <br />the obligations of the Company to transport and dispose of Residuals and all related Off-Site <br />handling, processing, marketing, storage and stockpiling rights, obligations and activities. <br />"On-Site" means on, at or within the Facilities Site. <br />"On-Site Residuals Handling Obligations" means the obligations of the Company <br />hereunder with respect to the Residuals the performance of which takes place On-Site, <br />including the obligations of the Company to remove Residuals from Influent and to handle, <br />load and transfer for shipment all Residuals. <br />"Operation and Maintenance Manual" means the manual and related computer <br />programs prepared by the Company containing detailed standard operating and maintenance <br />procedures and other specific instructions, policies, directives, routines, schedules and other <br />matters relating to the Contract Services, maintained and updated as required by Article V. <br />"Operation Period" means the period from and including the Commencement <br />Date to and including the last day of this Service Contract. <br />"Operations Performance Bond" has the meaning set forth in Section 14.1. <br />"Overdue Rate" means the maximum rate of interest permitted by the laws of the <br />State, if applicable, or the Prime Rate, whichever is lower. <br />"Pass-through Cost Component" has the meaning set forth in Section 11.5. <br />"Performance Guarantees" means the guarantees of performance made by the <br />Company set forth in Article VII, including the Effluent Guarantee, the Odor Guarantee, the <br />Residuals Guarantee, the Environmental Guarantee, the Trucked-in-Material Guarantee and <br />the Effluent Re-Use Guarantee. <br />"PPI" means the Producer Price Index-Commodities, Not Seasonally Adjusted, <br />Finished Goods, Series I.D. WPUSOP3000, published by the Bureau of Labor Statistics, or <br />similar data if the BLS ceases publishing this index. <br />"Pre-Existing Environmental Condition" means, and is limited to, (1) the <br />presence anywhere in, on or under the Facilities on the Contract Date of undisclosed <br />underground storage tanks (for the storage of chemicals or petroleum products) that are not <br />then in use; and (2) the presence of Hazardous Materials or Regulated Substances in <br /> <br />11 <br />