Replacement and Renewal Costs Associated with New Source Water Facilities Sample Clauses

Replacement and Renewal Costs Associated with New Source Water Facilities. WRA shall pay PCA the proportional share of amortized capital renewal costs associated with the New Source Water Facilities. WRA’s annual contribution is provided in Exhibit J. All funds received from WRA will be placed in the Pure Water Monterey Fund’s Renewal and Replacement Reserve in accordance with Section VI. All funds will be held in the Reserve for the purpose of funding capital outlay projects for the New Source Water Facilities; assist in meeting any fiscal sustainability plan requirements for the Clean Water State Revolving Loans; and maintaining a proportional share of the Loan’s debt covenant ratio. At the completion of the thirty-year loan cycle, WRA and PCA will develop a long-term Capital Improvement Plan, which includes establishing an appropriate level of Renewal and Replacement reserves. Any WRA funds that are held in Reserves in excess of the Capital Improvement Plan will be refunded within ninety (60) days of the Plan’s establishment.
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