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<br />1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br /> <br />the owner of the Plant notwithstanding the services provided by GBRA under the Contract. <br /> <br />Section 5.02 - Potable Water Treatment Guarantee. GBRA guarantees that all potable <br />water produced by the Plant will meet the Performance Standards for the Project. <br /> <br />Section 5.03 - Compliance and Remedies. Except to the extent excused by Uncontrollable <br />Circumstances, GBRA shall comply with all Contract Standards continuously. If GBRA <br />fails to comply with any ofthe Contract Standards, it shall at its own cost and expense: <br />1. promptly notify the City of such non-compliance within eight hours of the <br />occurrence; <br />2. promptly provide the City with any notice received from any government <br />regulatory body within 12 hours of its receipt of the notice; <br />3. pay any related damages or fines and hold harmless, indemnify and defend <br />the City and its officers, agents and employees from all related liabilities and <br />damages in accordance with Section 4.15 of this Contract; <br />4. pay any costs related to public notification required by the non-compliance; <br />and <br />5. take all action necessary to restore compliance with the Contract Standards <br />and prevent a reoccurrence of non-compliance. <br /> <br />Section 5.04 - Additional Remedies for Breach of Potable Water Treatment Guarantee. <br />In addition to the remedies specified in Sections 2.01, 4.21 and 5.03 of this Contract, if <br />GBRA fails to comply with the Contract Standards for the Project, GBRA shall be liable to <br />the City for all incidental and consequential damages resulting from the noncompliance. <br /> <br />Section 5.05 - Indemnity for Loss and Expense from Breach of Potable Water <br />Treatment Guarantee. In the event that any potable water produced by the Project fails to <br />meet the Performance Standards, thereby breaching the guarantee in Section 5.02 of this <br />Contract, GBRA shall hold harmless, inderimify and defend the City in accordance with <br />Section 4.15 of this Contract from any claims or liability related to the supply of such potable <br />water. <br /> <br />ARTICLE 6 - SERVICE FEE; NON-RECURRING COSTS <br /> <br />Section 6.01- Amount of Service Fee. The City shall pay to GBRA an annual Service Fee <br />of $655,537.12, in twelve equal monthly installments of $54,628.09, for operation of the <br />Project for treatment of all quantities of water up to and including the Base Flow. All duties, <br />responsibilities and obligations assigned to or undertaken by GBRA for treatment of these <br />quantities of water shall be at its expense and without change to the Service Fee, except for <br />the monthly pass-through of electricity cost, and except where des-cribed in Section 6.07. <br />The cost for treatment of quantities of water in excess ofthe base flow will be addressed by <br />the parties under Section 6.07. <br /> <br />SAN MARCOS REGIONAL <br />SURFACE WATER TREATMENT PLANT <br /> <br />OPERATION CONTRACT <br /> <br />5-6-99 <br />PAGE ]1 <br />