Common use of System Capacity Clause in Contracts

System Capacity. The Concessionaire, and any Operator on behalf of the Concessionaire, shall operate, maintain and improve the System in order to provide Utility Services to the City and the users of the System located in the City. In particular, the capacity of the System, the water treatment plant, the water distribution facilities and the sewerage treatment plant and the sewerage collection facilities shall at all times be sufficient to meet the needs of the City, the residents of the City and the commercial and industrial users of the System that are located in the City. The City and the Concessionaire agree to cooperate in the submission by the City of sewage services plans required under the Pennsylvania Sewage Facilities Act. Each such plan shall include a projection with respect to the expected annual utilization of the treatment facilities of the Sewer Utility System for the next 20 years. Whenever such projection shows that the expected utilization of the Sewer Utility System in any future year within the 20 year projection period is expected to exceed the then current sewerage treatment capacity of the Sewer Utility System, the City and the Concessionaire, acting jointly, shall prepare a capital improvement expansion plan and shall seek permit approvals for the expansion of the treatment capacity of the Sewer Utility System. Subject to the Approval of the City, the Concessionaire shall proceed to design and construct, or cause to be designed and constructed, the capital improvements to the System that are needed to increase the treatment capacity of the Sewer Utility System to meet the expected utilization of the Sewer Utility System all in accordance with the sewage services plan required under the Pennsylvania Sewerage Facilities Act. If the capital improvements are designed and constructed to meet an increased utilization for an initial year commencing during or prior to 2043, then the cost and expense of the design and construction of such capital improvements shall be at the sole cost and expense of the Concessionaire. If the capital improvements are designed and constructed to meet an increased utilization for any initial year commencing after 2043, then the cost and expense shall be allocated between the City and the Concessionaire so that the share of such costs allocated to the Concessionaire shall be the total of such costs multiplied by a fraction, the numerator of which is the number of months from the month the capital improvement is expected to be placed in service to the month of the End Date, minus one and the denominator of which is 240.

System Capacity. The Concessionaire, and any Operator on behalf of the Concessionaire, shall operate, maintain and improve the System in order to provide Utility Services to the City Borough and the users of the System located in the CityBorough and subject to the Borough’s obligations under Section 20.4. In particular, the capacity of the System, the water treatment plant, the water distribution facilities and the sewerage treatment plant and the sewerage collection facilities shall at all times be sufficient to meet the needs of the CityBorough, the residents of the City Borough and the commercial and industrial users of the System that are located in the CityBorough, together with the service obligations to Municipal Customers under the Municipal Service Agreements, subject to the provision of reasonable notice of expansion needs. The City Borough and the Concessionaire agree to cooperate in the submission by the City Borough of sewage services plans required under the Pennsylvania Sewage Facilities Act. Each such plan shall include a projection with respect to the expected annual utilization of the treatment facilities of the Sewer Wastewater Utility System for the next 20 years. Whenever such projection shows that the expected utilization of the Sewer Wastewater Utility System in any future year within the 20 year projection period is expected to exceed the then current sewerage treatment capacity of the Sewer Wastewater Utility System, the City Borough and the Concessionaire, acting jointly, shall prepare a capital improvement expansion plan and shall seek permit approvals for the expansion of the treatment capacity of the Sewer Wastewater Utility System. Subject to the Approval of the CityBorough, the Concessionaire shall proceed to design and construct, or cause to be designed and constructed, the capital improvements to the System that are needed to increase the treatment capacity of the Sewer Wastewater Utility System to meet the expected utilization of the Sewer Wastewater Utility System all in accordance with the sewage services plan required under the Pennsylvania Sewerage Facilities Act. If the capital improvements are designed and constructed to meet an increased utilization for an initial year commencing during or prior to 20432044, then the cost and expense of the design and construction of such capital improvements shall be at the sole cost and expense of the Concessionaire. If the capital improvements are designed and constructed to meet an increased utilization for any initial year commencing after 20432044, then the cost and expense shall be allocated between the City Borough and the Concessionaire so that the share of such costs allocated to the Concessionaire shall be the total of such costs multiplied by a fraction, the numerator of which is the number of months from the month the capital improvement is expected to be placed in service to the month of the End Date, minus one and the denominator of which is 240. The Borough and the Concessionaire shall cooperate in imposing on Developers, to the extent reasonably practical, the construction of new or expanded water or waste water systems serving new development, so that the costs of such construction is borne only by those persons benefited and not by the System as a whole.