(Operations & Maintenance)

Operations & Maintenance (O&M means the functions, duties and labour associated with the daily operations and normal repairs, replacement of parts and structural components, and other activities needed to preserve an asset so that it continues to provide acceptable services and achieves its expected life

Operation and Maintenance or “O&M” shall mean all activities required to operate, maintain, and monitor the effectiveness of the RA as specified in the SOW or any EPA-approved O&M Plan. Routine maintenance means activities to keep an impervious surface as near as possible to its constructed condition.
This includes ordinary maintenance activities, resurfacing paved areas, and exterior building changes or improvements which do not materially increase or concentrate stormwater runoff, or cause additional nonpoint source pollution.
Planned Maintenance means any preventative, routine or scheduled maintenance which is performed with regards to the Service, the Network, the Partner’s network or any component thereof, reasonably believed to be necessary in order to increase capacity or to prevent or remedy a defect which may affect the Customer’s use of or access to the Services; Operation and Maintenance Expenses or ‘O&M expenses’ means the expenditure incurred on operation and maintenance of the project, or part thereof, and includes the expenditure on manpower, repairs, spares, consumables, insurance and overheads; Operation and Maintenance Costs means, for any fiscal year or other period, the reasonable and necessary costs and expenses of operating the common areas of the Project and of managing and repairing and other expenses necessary to maintain and preserve the common areas of the Project in good repair and working order, calculated in accordance with Generally Accepted Accounting Principles, including but not limited to

(a) utility services supplied to the common areas of the Project, which may include, without limitation, janitor service, security, power, gas, telephone, light, heating, water and all other utility services,

(b) compensation to the management agent, salaries and wages of employees, payments to employee retirement systems, fees of auditors, accountants, attorneys or engineers,

(c) monthly deposits to the Repair and Replacement Fund pursuant to Section 5.7(g) of the Indenture, and

(d) all other reasonable and necessary costs of the Borrower or charges required to be paid by it related to the operation and maintenance of the common areas of the Project, including, but not limited to, costs of insurance and property taxes, if any, but excluding in all cases

(i) depreciation, replacement and obsolescence charges or reserves therefor,

(ii) amortization of intangibles or other bookkeeping entries of a similar nature,

(iii) costs of capital additions, replacements, betterments, extensions or improvements to the common areas of the Project, which under Generally Accepted Accounting Principles are chargeable to a capital account or to a reserve for depreciation,

(iv) debt service on the Loan,

(v) the amount deposited in the Administration Fund, and

(vi) expenses paid from the Repair and Replacement Fund, Surplus Fund or other Project reserves.