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ARTICLE XI <br />SERVICE FEE AND OTHER PAYMENTS <br />SECTION 11.5. PASS - THROUGH COST COMPONENT <br />(B) Chemicals. The Company shall pay all chemical bills incurred in the operation <br />of the Facilities. The City shall reimburse the Company for all such costs, subject to the <br />"Guaranteed Maximum Chemical Utilization" through the Pass - through Component of the <br />Service Fee. The Guaranteed Maximum Chemical Utilization shall be as follows: <br />Chemical <br />Pre - Completion Of <br />Post - Completion <br />Adjusted Cost <br />City Capital <br />Of City Capital <br />(based on 2014 <br />Project <br />Project <br />pricing) <br />Polymer <br />$23.48 /MG <br />$27.12 /MG <br />$54.09 /MG <br />Ferric Chloride <br />$23.52 /MG <br />$3.00 /MG <br />$54.49 /MG <br />Total Annual Guaranteed Maximum <br />$47.00 /MG <br />$27.12 /MG <br />$108.58 /MG <br />Chemical Utilization <br />In addition to the above chemicals for the wastewater treatment process, the City shall reimburse <br />CH2M HILL for the actual pass through cost of bleach that is used for disinfection for the reuse <br />water. The 2014 cost is $99.76/ MG of the reuse water. The cost of bleach is not included in the <br />Total Annual Guaranteed Maximum Chemical Utilization. <br />The Guaranteed Maximum Chemical Utilization shall escalate each Contract Year. Such <br />escalation will be determined by the prior years' actual Chemicals Utilization multiplied by the <br />Chemical Cost Adjustment Factor described in Section 11.6. The Company will not receive <br />reimbursement for its chemicals associated with the operation of the Facilities above the <br />Guaranteed Maximum Chemical Utilization. <br />