MCWD Owned Facilities. If the MCWD Owned Facilities, or any part thereof, shall be damaged or destroyed by fire, earthquake or other casualty, MCWD shall proceed with diligence and promptness to carry out any necessary demolition and to restore, repair, replace, and/or rebuild the MCWD Owned Facilities in order to restore them to a condition and fair market value, utility and remaining useful life not less than the condition and fair market value, utility and remaining useful life thereof immediately prior to such casualty. MCWD, MCWRA and CAW shall meet and confer regarding casualty repairs, including but not limited to, the nature of the repairs, replacement equipment, contractor qualifications, potential disruptions to operations, and scheduling. The repair and restoration work done by MCWD pursuant to this Section shall comply with the terms of the MCWD Indebtedness and with any restriction, easement, condition or covenant or other matter affecting title to the MCWD Owned Facilities, and all repair and restoration work done by MCWD pursuant to this Article shall be undertaken with promptness and completed in a good and workmanlike manner and in compliance in all material respects with all Legal Requirements then in effect with respect to the MCWD Owned Facilities. If the proceeds of the casualty insurance policy required to be maintained by MCWD by the terms of this Agreement or the MCWD Indebtedness are less than the estimated cost of restoring, replacing or rebuilding the MCWD Owned Facilities to the condition and fair market value required above in this Section, then CAW and MCWD shall share and pay any such deficiency in the same proportion as each of the CAW Debt Service Allocation and the MCWD Proportional Share of Debt Service.
Appears in 4 contracts
Samples: Water Purchase Agreement, Water Purchase Agreement, Water Purchase Agreement
