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<br />1 method is used, GBRA shall submit detailed work sheets in a form acceptable to the <br />2 City, showing an itemized cost breakdown together with supporting data. No <br />3 payment shall be made for costs not verified by the City. <br />4 <br />5 <br />6 <br />7 Section 6.08 - Non-recurring First Year Costs. The City shall pay GBRA the sum of <br />8 $228,639.60 for all materials, services, and duties incurred at the Plant in the initial phases <br />9 of construction, start-up and performance testing. This payment will be made within 20 days <br />10 after the successful completion of the Performance Test as described in Article 12 below. <br />11 <br />12 Section 6.09 - Exit Test. 90 days prior to the expiration of the current contract term, GBRA <br />13 shall be required to meet an exit test to demonstrate that all necessary maintenance, repairs <br />14 and replacements have been undertaken, and that the Project is operating in compliance with <br />15 Applicable Law and the Contract Standards. Such test shall include a walk-through ofthe <br />16 machinery, equipment, systems and structures of the Project, as well as actual performance <br />17 tests. If the exit test is not successfully passed, in the City's sole opinion, GBRA shall make <br />18 all necessary repairs and replacements, and the exit test shall be re-performed at GBRA's <br />19 sole cost. <br />20 <br />21 Section 6.10 - Inflationary Adjustments to Service Fee. A change in the Service Pee for <br />22 each contract year subsequent to the first contract year will be made based on the change in <br />23 the Consumer Price Index for Urban Wage Earners and Clerical Workers, South Urban <br />24 Region during the previous twelve month period. GBRA will calculate this change and <br />25 submit it in writing to the City for confirmation at least 120 days prior to the start of the <br />26 respective new contract year. The amount of this change will not exceed five percent per <br />27 year. <br />28 <br />29 ARTICLE 7 - PROJECT MODIFICATIONS <br />30 <br />31 Prom time to time during the term of this Contract, it may become necessary or desirable to <br />32 modify, alter, or improve the Project from its then current condition, either at the request of <br />33 GBRA or the City or as a result of a change in the Applicable Law. These modifications may <br />34 be appropriate, by way of example, in order to increase the efficiency or improve <br />35 performance ofthe Project, to anticipate or to respond to a change in Applicable Law, or to <br />36 address the obsolescence of any portion of the Project. Project Modifications shall be the <br />37 general responsibility of the City, and maintenance, repairs and or replacements of the <br />38 Project shall be the general responsibility ofGBRA, to be performed as described in Article <br />39 10 of the Contract. All Project Modifications shall be designed, built, procured and <br />40 implemented in accordance with Applicable Law. Project Medifications shall be approved <br />41 and financed by the City. <br />42 <br /> <br />SAN MARCOS REGIONAL <br />SURFACE WATER TREATMENT PLANT <br /> <br />OPERATION CONTRACT <br /> <br />5-6-99 <br />PAGE 13 <br />