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(6) Failures Arising from the Acts Authorit.Mployees or Third-PartX <br />Contractors. <br />The Authority may engage its own staff, or the staff of an Agency or a third -party <br />contractor, to perform construction and maintenance projects on the Transport System. If in the <br />implementation or performance of such project there is a Failure caused by the negligent, <br />reckless, or willfully wrongful acts of those Authority -engaged personnel, any costs to address <br />the Failure, including costs associated with environmental and third party claims, will be <br />reimbursed by such party's insurance or as agreed to in the required indemnification provisions <br />described in this subsection 10(c)(6). The Authority will maintain insurance to cover its <br />potential liabilities under this subsection as may be approved by the Commission and will require <br />any Agency or third -party contractor performing work on the Authority's behalf to indemnify the <br />Authority, in a form to be approved by the Commission, against all losses that may arise out of <br />the performance of the work. The Authority will require that any Agency or third -party <br />contractor performing such work on behalf of the Authority maintain insurance in such types and <br />amounts as the Authority may from time to time establish and naming the Authority and the <br />Agencies as additional insureds. The Authority will adopt Policies and Procedures to implement <br />these requirements. Any costs not covered by such insurance or indemnity provisions will be <br />borne by the Authority and will be allocated according to Schedule H. <br />Section 11. Capacity Rights <br />(a) Capacity Rights, Volume <br />Each Agency has acquired, subject to the terms and conditions of the Agreement, the <br />capacity and right to discharge to the Authority Facilities at that Agency's Maximum Flow Rate <br />Capacity. All effluent which is discharged to the Hayward Marsh by Union pursuant to the <br />Hayward Marsh MOU, will not be counted toward Union's Maximum Flow Rate Capacity. <br />With the exception of Union Effluent Pump Station, all pump stations will be designed <br />and maintained to manage the capacities set forth in Schedule F with any single pump out of <br />service. Per the Hayward Marsh MOU, the Union Effluent Pump Station may be designed and <br />maintained to manage Union's capacity set forth in Schedule F, plus the flow that Union is <br />approved to discharge to the Hayward Marsh, with any single pump out of service. <br />-16- <br />15966623.2 <br />