04-23-18 Regular Meeting of the La Porte City Council

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ARTICLE V OWNERSHIP, OPERATION, AND MAINTENANCE OF FACILITIES Section 5.01 Conveyance of Facilities. As the City Facilities are constructed and accepted in accordance with Article II and the City Facilities are conveyed to the City under this Article V, the construction contractor's one (1) year warranty of its work shall be assigned to the City, as required under Section 3.02 above. Section 5.02 City Acceptance. As the Facilities are constructed and completed, representatives of the City shall inspect the same and, if the City finds that the City Facilities have been completed in substantial compliance with the approved plans and specifications, the City will accept the conveyance of the City Facilities, and the City Facilities so conveyed shall be operated, maintained, and repaired by the City at its sole expense as provided in this Agreement. The City shall accept ownership of the City Facilities under this Section 5.02 in accordance with the City's procedure for acceptance of such facilities in areas outside the District and within the City. If the City Facilities have not been completed in substantial compliance with the approved plans and specifications, the City will immediately advise in what manner the City Facilities do not comply so that the problems may immediately be corrected; whereupon the City shall again inspect the City Facilities and accept the same if the non-complying items have been corrected. In conjunction with the City's acceptance of the City Facilities, the City shall be provided with one (1) set of the construction drawings for such City Facilities. Section 5.03 Operation of the Facilities by the City. Upon the acceptance of the City Facilities by the City, the City will operate the City Facilities and provide services from the City Facilities to users within the District without discrimination. The City shall at all times maintain the City Facilities, or cause the same to be maintained, in good condition and working order and will operate the same, or cause the same to be operated, in an efficient and economical manner at a reasonable cost and in accordance with sound business principles, and the City will comply with all the terms and conditions of this Agreement and with all applicable federal, state, and local laws and regulations. (a) The City shall provide competent, trained personnel, licensed or certified as necessary by the appropriate regulatory authority, to operate, inspect, maintain, and repair the City Facilities. The City shall implement a scheduled maintenance program for the City Facilities and shall ensure that the City Facilities are maintained in the same fashion and with the same frequency as similar facilities owned and operated by the City to serve areas outside the District. (b) The City shall maintain all customer information and records necessary to provide monthly billings to customers served by the City Facilities. The City shall respond to inquiries or correspondence from governmental or regulatory authorities and the District's directors, customers, or consultants. 7