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<br />The City of San Marcos Facilities Service Contract <br /> <br />non-compliance with Applicable Law, issued or given by any Governmental Body. The <br />Company shall furnish the City with an immediate written notice describing the occurrence of <br />any event or the existence of any circumstance which does or may result in any such notice of <br />violation or non-compliance to the extent the Company has knowledge of any such event or <br />circumstance, and of any Legal Proceeding alleging such non-compliance. <br />(D) Fines. Penalties and Remediation. Except to the extent excused by <br />Uncontrollable Circumstances, City Breach or except as set forth in subsections 7.7(C) and <br />7.7(D), in the event that the Company or any Subcontractor fails at any time to comply with <br />Applicable Law with respect to the Facilities, Effluent Requirements, Effluent Re-Use, Sludge <br />disposal, or other environmental or operating condition, the Company shall, without limiting <br />any other remedy available to the City upon such an occurrence and notwithstanding any <br />other provision of this Service Contract: (1) immediately correct such failure and resume <br />compliance with Applicable Law; (2) payor reimburse the City for any resulting froes, <br />assessments, levies, impositions, penalties or other charges; (3) indemnify, defend and hold <br />harmless the City in accordance with Section 13.3 from any Loss and Expense resulting <br />therefrom; (4) make changes in operating and management practices to the extent practicable <br />which are necessary to assure that the failure of compliance with Applicable Law will not recur; <br />and (5) comply with any corrective action plan filed with or mandated by any Governmental <br />Body (except as to any Capital Modifications required by the plan) in order to remedy a failure <br />of the Company to comply with Applicable Law. <br />(E) No Nuisance Covenant. The Company shall keep the Facilities neat, <br />clean and substantially litter-free at all times, and to the extent within the control of the <br />Company, shall ensure that the operation of the Facilities does not create any odor, substantial <br />litter, noise, fugitive dust, vector or other adverse environmental effects constituting, with <br />respect to each of the foregoing, a nuisance condition under Applicable Law. Should any such <br />nuisance condition occur which is the result of a Willful or Negligent Act, Error or Omission of <br />the Company in the operation of the Facilities, the Company shall promptly and diligently <br />remedy the condition, pay any regulatory fmes or penalties relating thereto, make changes in <br />operating and management practices, to the extent practicable, necessary to prevent a <br />recurrence of the nuisance condition and indemnify the City from any third party nuisance <br />claims. <br /> <br />(F) Reports to Governmental Bodies. The Company shall prepare all periodic <br />and annual reports, make all information submittals and provide all notices to all <br />Governmental Bodies required by all Governmental Approvals and under Applicable Law with <br />respect to the Facilities, including sampling and testing results and monthly discharge <br />monitoring or operating reports. Such reports shall contain all information required by the <br />Governmental Body, and may be identical to comparable reports prepared for the City, if such <br /> <br />45 <br />