Common use of Reliability of Service Clause in Contracts

Reliability of Service. Congress, the Pueblos, the County, and potential customers of the RWS have a common interest in reliable service. The draft JPA and other agreements attempt to achieve this common interest in the following, among other, ways: a. Easements and rights of way for the RWS – whether acquired from the United States, a Pueblo, the County, or private landowners – are required to last “for so long as required for construction, use, operation, maintenance, repair and replacement of the [RWS].” (Cost-Sharing Agreement, Section 2.3.) b. The United States, Pueblos, and County are required to grant easements and rights of way for the RWS at no cost. (Cost-Sharing Agreement, Section 2.3.) c. County and Pueblo de San ▇▇▇▇▇▇▇▇▇ director approval is necessary to convey any of the Authority’s assets. (JPA, Article 6.G.) d. Ownership of any portion of the RWS can only be transferred pursuant to a subsequent act of Congress. (Cost-Sharing Agreement, Section 2.4.) Among other things, this means that the parties could not convey the RWS (or their individual systems) to a private utility company, for instance. e. The JPA does not allow one party to unilaterally withdraw. Instead, agreement by all parties and an act of Congress is required for the JPA to terminate. (JPA, Article 24.)

Appears in 2 contracts

Sources: Joint Powers Agreement, Joint Powers Agreement