Res 2009-038 - Laserfiche WebLink

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ARTICLE X SERVICE FEE AND OTHER PAYMENTS SECTION 10.1. SERVICE FEE GENERALLY. From and after the Commencement Date, the City shall pay the Service Fee to the Authority as compensation for the Authority's performing the Contract Services under this Service Contract. At such time or times during the Contract Term that the production of Finished Water on a peak day basis exceeds the then-rated capacity of the Plant for three consecutive days, the parties will determine appropriate changes to the Service Fee in accordance with other provisions of this Service Contract. SECTION 10.2. SERVICE FEE FORMULA. The annual Service Fee shall be calculated in accordance with the following formula: ti ASF = BF + PC + EIC where, ASF = Annual Service Fee BF = Base Fee PC = Pass-through Cost Component EIC = Extraordinary Items Component Each component of the Service Fee shall be determined in accordance with this Article. In the event that the City determines to discontinue use of the Oakridge filtration equipment during the Term, the annual Service Fee shall be reduced by $67,500 (as escalated by the Service Fee Adjustment Factor). SECTION 10.3. BASE FEE. (A) Base Fee. The Base Fee in the first Contract Year shall be $795,607 and shall be adjusted pursuant to the Service Fee Adjustment Factor for each subsequent Contract Year. The Base Fee shall be compensation for all Contract Services to be provided by the Authority under the Service Contract except where otherwise noted herein. Except as provided in Section 10.1 above, or further agreement among the Parties, such compensation shall not be adjusted to account for increases or decreases in instantaneous flow, or loadings of raw water treated by the Facilities or by variations in the amount of Raw Water treated from each Raw Water source. The Base Fee includes compensation for, but is not limited to, labor, repairs, replacements, maintenance, tools, materials, equipment, laboratory services, and spare parts relating to the operation and maintenance and repair and replacement of the Facilities (but not including electricity, chemicals, insurance, letter of credit fee or maintenance of the Well Supply Equipment, the Well Supply SCADA, or the SCADA system the City uses to monitor and control the System) and costs related to the imposition of any sales tax or business tax levied against the Authority in connection with the Authority's performance of the Contract Services. The Base Fee shall also include any increase or decrease in net cost resulting from operation, 67