Res 2009-038 - Laserfiche WebLink

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City of San Marcos/Guadalupe-Blanco River Authority Service Contract Water Treatment Facilities Article X - Service Fee and Other Payments maintenance, repair and replacement costs related to a Capital Modification as more fully described in Article 1X. (B) Annual Adiustment of Base Fee. The Base Fee for the first Contract Year shall be $795,607. The Base Fee for each subsequent Contract Year shall be determined by multiplying (1) the Base Fee for the previous Contract Year, times (2) the Service Fee Adjustment Factor, as specified in Section 10.6 (A). SECTION 10.4. PASS-THROUGH COST COMPONENT. The Authority shall pay all electric bills incurred in the operation of the Facilities. The City shall reimburse the Authority each month for all such bills, subject to the "Guaranteed Maximum Electricity Utilization" through the Pass-through Component of the Service Fee. The Guaranteed Maximum Electricity Utilization will be 1625 kWh for each million gallons of Raw Water treated at the Plant and 2300 kWh for each million gallons of water supplied by the Wells. The Guaranteed Maximum Electricity Utilization shall not include electricity used at the Booster Stations. The Authority will not receive reimbursement for its electricity costs associated with the operation of the Facilities above the Guaranteed Maximum Electricity Utilization. The Authority shall pay all chemical bills incurred in the operation of the Facilities. The City shall reimburse the Authority each month for all such costs, subject to the "Guaranteed Maximum Chemical Utilization" through the Pass-through Component of the Service Fee. The Guaranteed Maximum Chemical Utilization will be $16,399/mgd for Raw Water treated at the Plant, and $8,415/mgd for water supplied by the Wells for the first Contract Year, and both of these amounts shall escalate in accordance with the Chemical Cost Adjustment Factor for each subsequent Contract Year. The Authority will not receive reimbursement for its chemical costs associated with the operation of the Facilities above the Guaranteed Maximum Chemical Utilization. The Authority shall initially pay all insurance premiums for the Required Insurance. The City shall reimburse the Authority for payment of all such Required Insurance premiums in the month following the payment of such premiums (subject in the first year to the maximum insurance cost of $94,500 for the Required Insurance set forth in Appendix 9. The Authority shall initially pay all annual fees associated with providing a Letter of Credit as described in Article XIII. The City shall reimburse the Authority for payment of all annual Letter of Credit fees in the month following the payment of such fees. SECTION 10.5. EXTRAORDINARY ITEMS CHARGE OR CREDIT. The Extraordinary Items component of the Service Fee, which may be a charge or a credit, shall be equal to the sum of (1) the amounts payable by the City for increased operation, maintenance or other costs incurred on account of the occurrence of an Uncontrollable Circumstance which is chargeable to the City hereunder, net of any operation and maintenance cost savings achieved by the Authority in mitigating the effects of the occurrence of such an Uncontrollable Circumstance, minus (2) any City credits due to Authority non-performance specifically 68