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<br />The City of San Marcos Facilities Service Contract <br /> <br />ARTICLE VIII <br />PERFORMANCE <br /> <br />SECTION 8.1. FACILITIES PERFORMANCE GENERALLY. (A) Reliance. The <br />Company acknowledges that the City, in serving the wastewater treatment needs of its <br />customers, is providing an essential public service, and in complying with its obligations under <br />Applicable Law is relying on the performance by the Company of its obligations hereunder. <br />Except to the extent relieved by Uncontrollable Circumstances or other for scheduled <br />maintenance activities, the Company shall operate the Facilities on a continuous, <br />uninterrupted 24-hour per day, 7-day per week basis. The Company shall not intentionally <br />reduce the level of wastewater treatment capable of being achieved by the Facilities in an effort <br />to reduce its operating and maintenance expenses unless agreed to in writing by the parties. <br />(B) Curtailments and Shutdowns. If the operation of the Facilities is <br />temporarily reduced, curtailed or shut down so that the Company is unable to collect, receive, <br />or treat Influent or Residuals or to discharge Effluent, in accordance herewith, the Company <br />shall immediately advise the City as to the nature and probable duration of such reduction, <br />curtailment or shutdown and the expected effect on the operation of the Facilities, and take all <br />steps necessary to remedy the reduction, curtailment or shutdown and to resume full <br />performance hereunder as soon as possible. <br />(C) Limitations on Company Rights. The Company shall not use the <br />Facilities for any purpose other than the purposes contemplated hereby unless otherwise <br />agreed to in writing by the parties. The only compensation payable by the City to the Company <br />for providing the Contract Services shall be the Service Fee payable by the City hereunder. <br />SECTION 8.2. EFFLUENT GUARANTEE. (A) Applicable Law Limits. The <br />Company shall operate the Facilities so as to receive and treat all Influent flowing to the <br />Facilities and discharge Effluent from the Facilities in accordance with Applicable Law, <br />including the conditions of all Governmental Approvals. <br />(B) Enhanced Standards. In addition to its obligation to comply with <br />Applicable Law (including Governmental Approvals) as provided in subsection (A) of this <br />Section and except to the extent relieved by Uncontrollable Circumstances, the Company shall <br />operate the Facilities so as to maintain removal efficiencies of a minimum of 90% calculated as <br />a quarterly average for TSS and BODs; a minimum of 90% for NH3; and a minimum of 80% for <br />TP calculated as a monthly average (the "Enhanced Effluent Standards"), but only to the extent <br />that such Enhanced Effluent Standards exceed any requirement of Applicable Law. The <br />obligation of the Company to produce Effluent in compliance with the requirements of <br /> <br />57 <br />