Common use of Reserve Percentage Clause in Contracts

Reserve Percentage. The Parties, in consultation with the Advisory Committee, shall establish annually in connection with the updating of the Replacement Budget and every five years in connection with the urban water management plan process described in Section 8.2(d), a percentage amount that will be used to fund the Reserve Fund Payments Account for the purpose of paying for such Replacements as may be necessary to assure the continuing and long-term viability and utility of the Project Facilities in accordance with Best Industry Practices (the “Reserve Percentage”). Initially, the Reserve Percentage shall be three percent (3%). The Parties, in consultation with the Advisory Committee, shall determine whether the Reserve Percentage should be increased or decreased to best manage the Reserve Fund Payments Account balance so that the same is appropriate, without being excessive, to fund future Replacements as may be necessary to assure the continuing and long- term viability and utility of the Project Facilities in accordance with Best Industry Practices. Notwithstanding the foregoing, at no time shall the Reserve Percentage exceed five percent (5%).

Reserve Percentage. The Parties, in consultation with the Advisory Committee, shall establish annually in connection with the updating of the Replacement Budget and every five years in connection with the urban water management plan process described in Section 8.2(d), a percentage amount that will be used to fund the Reserve Fund Payments Account for the purpose of paying for such Replacements as may be necessary to assure the continuing and long-term viability and utility of the Project Facilities in accordance with Best Industry Practices (the “Reserve Percentage”). Initially, the Reserve Percentage shall be three percent (3%). The Parties, in consultation with the Advisory Committee, shall determine whether the Reserve Percentage should be increased or decreased to best manage the Reserve Fund Payments Account balance so that the same is appropriate, without being excessive, to fund future Replacements as may be necessary to assure the continuing and long- long-term viability and utility of the Project Facilities in accordance with Best Industry Practices. Notwithstanding the foregoing, at no time shall the Reserve Percentage exceed five percent (5%).