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ARTICLE 14 NOTICES 14.1 Notices required under this Agreement will be provided by the parties to one another by certified mail, return receipt requested, or by confirmed facsimile transmission, to the following addresses: To the City: To the En ig neer: City Manager Susan Kelly, P.E. City of San Marcos LNV Engineering 630 E. Hopkins 1101 Capital of Texas Hwy. South San Marcos, Texas 78666 Bldg. C, Ste. 220 Austin, Texas 78746 Fax: 512-396-4656 Fax: 512-381-8334 ARTICLE 15 BASIS OF COMPENSATION 15.1 The City will compensate the Engineer, in accordance with Article 5, Payments to the Engineer, and the other terms and conditions of this Agreement, as follows: 15.2 The total of all fees and expenses to be paid to the Engineer for Basic Services as described in Sections 1.1 through 1.4 for the term of this Agreement as approved by the City on individual Work Authorization forms will not exceed $200,000.00. This compensation will be divided among the Basic Services in accordance with Sections 1.1 through 1.4 and Reimburseable Expenses all as incorporated into the individual Work Authorizations (see Attachment A) as Projects are assigned to the Engineer by the City. 15.3 Compensation for Basic Services and for Additional Services of the Engineer will be computed based on the Engineer's standard hourly rates included below. These hourly rates will remain in effect until January 1, 2010. Thereafter hourly rates may be adjusted each January 151 for the term of the Agreement based on negotiations between the Engineer and the City, and no such adjustment will exceed an annual increase of 4%. Hourly rates for the Engineer's subconsultants will be included at the time the City engages the Engineer under a specific Work Authorization. Enizineerine. Planning: Principal $184.00/hr. Project Manager $181.00/hr. Senior Engineer $156.00/hr. Project Engineer $139.00/hr. Project Architect $139.00/hr. Senior Designer $128.00/hr. Engineer IV $113.00/hr. 17