Common use of Effect of Funding Shortfalls Clause in Contracts

Effect of Funding Shortfalls. ‌ If overall HCP/NCCP fee revenues fall short of expectations, such as if fewer Covered Activities are implemented than projected by the Plan and less HCP/NCCP fees are collected, the resulting shortfall in Plan funding could prevent or constrain the Permittees’ ability to fully implement the Yolo HCP/NCCP. As set forth in Chapter 8 (Section 8.4.4.3) of the Plan, if fee revenues do not keep pace with reserve system operation and management needs, the Permittees will consider various options in consultation with the Wildlife Agencies. Any shortfall in non-fee revenues, such as local, state or federal agency contributions, will be treated similarly, with the Conservancy first making reasonable adjustments to expenditures to reduce costs while continuing to meet Plan obligations. If such adjustments are inadequate, the Conservancy will consult with the Wildlife Agencies to determine the best course of action. In any circumstance where consultation occurs, the ultimate course of action will vary depending upon a full consideration of relevant factors. Such factors may include, but are not limited to, the rate of acquisition of reserve system lands or whether the amount and rate of Take is less than anticipated in the Plan. If it appears that the level of Authorized Take by the Permits will not be used during their term, substantially reducing HCP/NCCP fee revenues, the Parties anticipate that the Permittees will apply for an amendment to extend the Permits in accordance with Section 17.3, below, to allow the full use of Authorized Take and full implementation of the Yolo HCP/NCCP. Alternatively, the Permittees may apply for a Permit modification or amendment in accordance with Section 15 of this Agreement to reduce the amount of Authorized Take and related obligations in the Permits. Any such application will be treated as a request for a major amendment and processed in accordance with Chapter 7 of the Plan.

Effect of Funding Shortfalls. ‌ The following section is corrected as follows: If overall HCP/NCCP fee revenues fall short of expectations, such as if fewer Covered Activities are implemented than projected by the Plan and less HCP/NCCP fees are collected, the resulting shortfall in Plan funding could prevent or constrain the Permittees’ ability to fully implement the Yolo HCP/NCCP. As set forth in Chapter 8 (Section 8.4.4.3) (Section 8.4.5.3) of the Plan, if fee revenues do not keep pace with reserve system operation and management needs, the Permittees will consider various options in consultation with the Wildlife Agencies. Any shortfall in non-fee revenues, such as local, state or federal agency contributions, will be treated similarly, with the Conservancy first making reasonable adjustments to expenditures to reduce costs while continuing to meet Plan obligations. If such adjustments are inadequate, the Conservancy will consult with the Wildlife Agencies to determine the best course of action. In any circumstance where consultation occurs, the ultimate course of action will vary depending upon a full consideration of relevant factors. Such factors may include, but are not limited to, the rate of acquisition of reserve system lands or whether the amount and rate of Take is less than anticipated in the Plan. If it appears that the level of Authorized Take by the Permits will not be used during their term, substantially reducing HCP/NCCP fee revenues, the Parties anticipate that the Permittees will apply for an amendment to extend the Permits in accordance with Section 17.3, below, to allow the full use of Authorized Take and full implementation of the Yolo HCP/NCCP. Alternatively, the Permittees may apply for a Permit modification or amendment in accordance with Section 15 of this Agreement to reduce the amount of Authorized Take and related obligations in the Permits. Any such application will be treated as a request for a major amendment and processed in accordance with Chapter 7 of the Plan.

Effect of Funding Shortfalls. ‌ If overall HCP/NCCP fee revenues fall short of expectations, such as if fewer Covered Activities are implemented than projected by the Plan and less HCP/NCCP fees are collected, the resulting shortfall in Plan funding could prevent or constrain the Permittees’ ability to fully implement the Yolo HCP/NCCP. As set forth in Chapter 8 (Section 8.4.4.3) of the Plan, if fee revenues do not keep pace with reserve system operation and management needs, the Permittees will consider various options in consultation with the Wildlife Agencies. Any shortfall in non-fee revenues, such as local, state or federal agency contributions, will be treated similarly, with the Conservancy first making reasonable adjustments to expenditures to reduce costs while continuing to meet Plan obligations. If such adjustments are inadequate, the Conservancy will consult with the Wildlife Agencies to determine the best course of action. In any circumstance where consultation occurs, the ultimate course of action will vary depending upon a full consideration of relevant factors. Such factors may include, but are not limited to, the rate of acquisition of reserve system lands or whether the amount and rate of Take is less than anticipated in the Plan. If it appears that the level of Authorized Take by the Permits will not be used during their term, substantially reducing HCP/NCCP fee revenues, the Parties anticipate that the Permittees will apply for an amendment to extend the Permits in accordance with Section 17.3, below, to allow the full use of Authorized Take and full implementation of the Yolo HCP/NCCP. Alternatively, the Permittees may apply for a Permit modification or amendment in accordance with Section 15 of this Agreement to reduce the amount of Authorized Take and related obligations in the Permits. Any such application will be treated as a request for a major amendment and processed in accordance with Chapter 7 of the Plan.

Effect of Funding Shortfalls. ‌ In the event there is a funding shortfall to implement the BRCP, the Wildlife Agencies will assess the impact of the funding deficiency on the scope and validity of the Permits. Unless the Permittees exercise the authority to withdraw, as provided in Agreement Section 7, or the Wildlife Agencies revoke the Permits, in whole or in part, as provided in Agreement Section 7, the Parties agree that they will meet and confer to develop a strategy to address the funding shortfall and to undertake all practicable efforts to maintain both the level of conservation provided under the BRCP and the level of Authorized Take coverage afforded by the Permits until the funding deficiency can be remedied. The strategy to address a funding shortfall may include, but is not necessarily limited to, the actions described in BRCP Chapter 9, Section 9.3. 1. If overall HCP/NCCP BRCP fee revenues for the term of the Permits fall short of expectations, such as if BRCP projections because fewer Covered Activities are implemented than projected by the Plan and less HCP/NCCP fees are collectedproposed or implemented, the resulting shortfall in Plan BRCP funding could prevent or constrain the Permittees’ ability to fully implement the Yolo HCP/NCCPBRCP fully. As set forth in Chapter 8 (Section 8.4.4.3) of the Plan, if If fee revenues do not keep pace with reserve system operation operations and management needs, the Permittees will consider various options Permittees, in consultation conjunction with the Wildlife Agencies. Any shortfall in non-fee revenues, such as local, state or federal agency contributions, will be treated similarly, with consider options to remedy the Conservancy first making reasonable adjustments to expenditures to reduce costs while continuing to meet Plan obligationsshortfall. If such adjustments are inadequate, the Conservancy Permittees will consult with the Wildlife Agencies to determine the best course of action. In any circumstance where consultation occurs, the ultimate course of action will vary depending upon a full consideration of relevant factors. Such factors may include, but are not limited to, the rate of acquisition of reserve system lands or whether the amount and rate of Take is less than anticipated in the Plan. If it appears that the level of allowed Authorized Take by the Permits will not be used during their termthe term of the Permits, substantially reducing HCP/NCCP BRCP fee revenues, the Parties anticipate that the Permittees will apply for an amendment to extend extension of the Permits in accordance with Agreement Section 17.3, below, 7.5 to allow the full use of Authorized Take and full implementation of the Yolo HCP/NCCP. AlternativelyBRCP, the Permittees may or will apply for a Permit modification or amendment in accordance with Agreement Section 15 of this Agreement to reduce the amount of Authorized Take and related obligations in the Permits. Any such application will be treated as a request for a major amendment and processed in accordance with Chapter 7 of the Plan13.0.