09-23-1987 Meeting - Laserfiche WebLink

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~ ~ Provided, however, the Authority understands that the option rights specified in this Section shall be limited to an allocation of capacity in the expanded project equal to or less than its then-current Demand Allocation. (ii) If, in order to continue supply to the Authority of water at its Demand Allocation Factor, and directly related and necessary to the operation and maintenance of the Project, it becomes necessary to perform a Major Replacement to the Project, plans and specifications for .such repair shall be made and reviewed by both Directors. The Authority will pay its pro rata share of the cost of any such work. Upon inspection and review of the work, the Authority shall pay its pro rata share of any such repair or replacement within ninety (9pj days after acceptance of the completed repair or replacement by the Authority. The Authority shali,aever be required to pay for portions of replacements, '~~, additions or transmission facilities that solely relate to other participants or customers. . 3.04 Operation in the Event of a Loss in Project Production ....~ . ~ Capacity or in Pro_~ect PumDlna Canaeit.. In the event that the capacity of the Project is materially reduced by reason of equipment failure or force majeure, the Authority .~a~:.request the. liauston Director to pro~ride alterna~.ive water supply service. Houston sY~ali use its best efforts to provide such alternative water supply service. Reduction in the supply of water to the Authority will occur only in the case that other Project participants receive such alternative water at a rate reduced pro-rata based on their then-current Demand Allocation Factors and the Project"s then-current Production Capacity. The cost of such alternative water ~.=.:" service shall be the total usage by the Authority ( in thousands ~ofv= .~ galionsl times the average operation and maintenance expenses of t~+e Project (computed on the basis of thousand gallon units) for the previous Billing Period. Provided, however, in the event the Authority is required to take water from the alternate source-for a period of time longer than one hundred eighty (180) days, operation and maintenance expenses shall be based on the actual operation and maintenance expenses of the facility providing the treated water, in accordance with specific agreement between Houston and the Authority. i3