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<br />-4- <br />15966623.1 <br />Facilities <br />The term "Facilities" or "Authority Facilities" means those facilities owned and operated <br />by the Authority, as more specifically identified in Schedule A, attached hereto and incorporated <br />by this reference. <br />Failure <br />The term "Failure" means a state in which the Transport System is no longer able to <br />convey flows reliably without spilling. <br />Fiscal Year <br />The term "Fiscal Year" means the period commencing on July 1 to and including the <br />following June 30. <br />General Manager <br />The term "General Manager" means the person designated by the Commission to <br />administer the construction and operation of the Authority or his or her duly authorized <br />representative. <br />Income from Operations <br />The term "Income from Operations" means all income from Authority operations, <br />including, without limitation, income from the sale of recycled water or other substances arising <br />out of the operation of the Facilities, interest income, income from lease of capacity rights, <br />income from connection fees, income from sale of services and income from sale of assets. <br />Maximum Flow Rate Capacity <br />The term "Maximum Flow Rate Capacity" means each Agency's capacity and right to <br />discharge to the Authority Facilities based on a 3-hour average, as set forth in Schedule F. <br />Operation and Maintenance Costs <br />The term "Operation and Maintenance Costs" means all costs directly associated with the <br />operation, maintenance and routine repair of the Facilities, including labor, materials, supplies, <br />power, chemicals, utilities, professional or contractual services, research and monitoring, tools <br />and equipment, other necessary expenses to keep the Facilities in proper operating condition and <br />maintain their useful life, and general administrative expenses attributable to such activities.