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(a) Operation and Maintenance Expenses of the Plant more <br />specifically includes: <br />(i) the Base Fee, as defined under Section 10.3 of the <br />Service Contract for Water Treatment Facilities Operations <br />and Asset Management (the "Plant Operating Agreement") <br />as adjusted in accordance with the terms of the Plant <br />Operating Agreement, as amended from time to time, paid <br />to the operator of the Plant under said agreement for so long <br />as such Plant Operating Agreement is in.effect. The version <br />of Section 10.3 of the Plant Operating Agreement in effect <br />as of the date of this First Amended and Restated Agreement <br />is attached hereto as Attachment `B" for reference, but any <br />amendments to Section 10.3 of the Plant Operating <br />Agreement shall apply to this First Amended and Restated <br />Agreement unless otherwise agreed by the parties; <br />(ii) the. Pass Through Cost Component as defined in <br />Section 10.4 of the Plant Operating Agreement, as amended <br />from time to time. The version of Section 10.4 of the Plant <br />Operating Agreement in effect as of the date of this First <br />Amended and Restated Agreement is attached hereto as <br />Attachment "C" for reference, but any amendments to <br />Section 10.4 of the Plant Operating Agreement shall apply <br />to this First Amended and Restated Agreement unless <br />otherwise agreed by the parties; <br />(iii) an administrative fee of ten percent (10%) of the Net <br />Plant Operating and Maintenance Costs as defined below; <br />and <br />(iv) a franchise fee of nine seven percent (}7%) of the Net <br />Plant Operating and Maintenance Costs as defined below. <br />(b) Operation and Maintenance Expenses of the Plant excludes <br />the following expenses (the "Exclusions"): <br />(i) any costs included as part of the Base Fee or Pass <br />Through Cost Component incurred to own, operate or <br />maintain the City's ground water system, which City <br />groundwater system shall not include the Carrizo Ground <br />Water Project Facilities; <br />(ii) electrical costs to operate the City's high service <br />pumps statien for delivering treated water to the City's <br />