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<br />The City of San Marcos Facilities Service Contract <br /> <br />ARTICLE VII <br />MANAGEMENT AND OPERATION <br /> <br />SECTION 7.1. OWNERSHIP AND USE OF THE FACILITIES. (A) City <br />Ownership. The Facilities, all Capital Modifications and all City Capital Projects are and shall <br />be owned by the City throughout and following the Term of this Service Contract, and the <br />Company shall have no ownership interest therein by virtue of this Service Contract. The <br />Company shall perform the Contract Services as an independent contractor and shall not have <br />any legal, equitable, tax beneficial or other ownership or leasehold interest in the, the Facilities, <br />the City Capital Projects or any Capital Modification by virtue of this Service Contract. <br />(B) Use. During the Term hereof, the Company may enter upon, occupy and <br />use the Facilities, the Facilities Equipment and the City Facilities Property to provide the <br />Contract Services in accordance herewith, and for no other purpose unless otherwise agreed to <br />in writing by both parties. The Company shall keep the Facilities, the Facilities Equipment and <br />the City Facilities Property in good working order and condition as set forth in this Service <br />Contract. <br /> <br />(C) Use of City Facilities Property. The Company shall have the right to use <br />and consume in the performance of the Contract Services at the Facilities the spare parts and <br />Consumables constituting part of the City Facilities Property. <br />(D) City Access to Facilities. The City shall have the right at any time, on a <br />24-hour per day, 365-day per year basis, to visit and inspect the Facilities and observe and <br />assess the Company's performance of the Contract Services. The Company shall permit and <br />facilitate access to the Facilities for such purposes by City personnel and by agents and <br />contractors designated by the City. Keys or passwords, as applicable, for the facilities or <br />structures constituting the Facilities shall be provided to the City's Contract Administrator by <br />the Company in accordance with the Company's physical security plan and key control <br />program. All visitors shall comply with the Company's reasonable operating and safety <br />procedures and rules, and shall not interfere with the Company's operations of the Facilities. <br />When visiting any portion of the Facilities that is staffed by the Company at the time of the <br />visit, all City employees, agents and contractors (except those identified on the pre-approved <br />list, as described in Appendix 8) shall announce themselves to the staff and Company <br />employees may elect to accompany any City employees, agents and contractors during the <br />visit. The Company also shall allow supervised access to the Facility to City-designated third <br />parties, including persons affiliated with U.S. Fish and Wildlife Service, U.S. Environmental <br />Protection Agency, Texas State University and the Texas Commission for Environmental <br />Quality. The parties agree that the City (but not its agents and contractors) shall have <br /> <br />34 <br />