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<br />1 The City may issue Change Orders for addition or deletion of services or equipment, or other <br />2 modifications to the Contract. The City may direct an adjustment to the services or <br />3 equipment provided by GBRA under the Contract through the issuance of change orders on <br />4 the form attached as Attachment 1 to this Contract. GBRA shall promptly carry out all <br />5 change orders. Any changes to the Service Fee resulting from a change order shall be <br />6 determined under Section 6.07. <br />7 <br />8 ARTICLE 4 - PROJECT OPERATIONS <br />9 <br />10 Section 4.01 - Operations Responsibility. <br />11 A. Beginning on the Commencement Date as established by the Notice to Proceed, <br />12 GBRA, at its sole cost and expense, shall operate, maintain and manage the Project in <br />13 accordance with the Contract Documents, Applicable Law, prudent industry practice, and the <br />14 operations and maintenance manual (as initially approved by the City and updated annually <br />15 by GBRA), and shall be responsible for receiving and treating raw water, producing potable <br />16 water, and disposing of solids residue in accordance with the requirements of the Contract. <br />17 At no time shall GBRA use or permit the use of the Project for any purposes other than those <br />18 contemplated by the Contract. <br />19 B. The City will be responsible for: <br />20 1. oversight of Water Utility operations; <br />21 2. capital planning and construction; <br />22 3. policy development; <br />23 4. setting rates and charges for services to retail and wholesale customers; <br />24 5. billing and collection; <br />25 6. distribution system, including storage, but not including the Plant's clearwell; <br />26 7. groundwater production; <br />27 8. oversight and monitoring ofGBRA's performance; <br />28 9. plant upgrades and expansions; <br />29 10. maintaining insurance coverage (including self insurance) of the plant and <br />30 city employees; and <br />31 11. providing retail customer contact and relations. <br />32 C. The City shall have the right to conduct inspections of the Project at any <br />33 reasonable time in order to assure that the Project is being properly operated and maintained <br />34 in accordance with the Contract. <br />35 <br />36 Section 4.02 - Construction Phase Services. During construction ofthe Project, beginning <br />37 with the Notice of Award and continuing up to the Commencement Date, GBRA shall <br />38 review requests and proposals for changes in the construction of the Project and provide <br />39 comments to the City and its Engineer concerning the effects of proposed changes on the <br />40 operations of the Project, including opportunities for reducing costs of operations arid <br />41 maintenance. <br />42 <br /> <br />SAN MARCOS REGIONAL <br />SURFACE WATER TREATMENT PLANT <br /> <br />OPERATION CONTRACT <br /> <br />5-6-99 <br />PAGE 5 <br />