Agmt 2006 American Golf Corp - Laserfiche WebLink

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water quality for the Golf Course, or periodically use higher quality water to flush accumulated salts from the areas where recycled water has been used for irrigation. 2. AUTHORITY. Provider warrants and affirms that it has the lawful authority to deliver recycled water to the Golf Course. Provider currently holds, and will maintain in good standing during the term of this Agreement, any and all permits, authorizations, and licenses needed to sell recycled water to the Golf Course. 3. TERM AND TERMINATION. a. The term of this Agreement shall be identical to the term of the Lease, including the term(s) of any option to extend the Lease, as provided in section 4 of the Lease.. b. The Agreement may be terminated under the following circumstances: (1) by mutual agreement of both the User and Provider, to be provided in writing with a specified termination date; or (2) by User, in the event that the quality of recycled water delivered is not suitable for irrigation of the Golf Course. For the purpose of this Agreement, "not suitable for irrigation" means that: (i) continued use of the recycled water will cause material damage to some or all portions of the Golf Course irrigated areas because of the quality of the recycled water, or (ii) the water quality of the recycled water has deteriorated materially from the water quality report "WR352" dated December 14, 2005, attached hereto and incorporated herein as Exhibit D. Prior to exercising this right of termination, the Parties must make a good faith effort to engage in the meet and confer process set forth in Section 19( c). Any termination resulting from provisions of this subsection shall be effective 90 days beyond the date in which the process in Section 19( c) has concluded; or (3) Beginning five years from the Effective Date, Provider may terminate this Agreement for any reason by giving one year written notice of its intent to terminate. 4. COST OF RECYCLED WATER. a. User agrees to pay for recycled water received at the rate of $200.00 per acre foot ("Rate"). This Rate will be adjusted annually based on the San Francisco Bay Area cpr, up to a maximum of 2 percent per year. The cpr adjustment shall be effective annually on the anniversary of the Effective Date. The cpr adjustment shall be calculated using the immediately preceding July through June 12 month period. The User will be billed monthly beginning with the first billing period following initial delivery of recycled water. Payment shall be due within 30 days of the date of each invoice. b. User shall be responsible for the power costs associated with operating all Facilities located on the Golf Course. 2 Recycled Water Service Agreement SB 404097 v20] 09600008 817/06