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<br />The City of San Marcos Facilities Service Contract <br /> <br />materials, equipment, laboratory services, and spare parts relating to the operation of the <br />Facilities (but not including electricity, chemicals, or insurance premium costs). The Base Fee <br />shall also include any costs related to the imposition of any sales tax or business tax levied <br />against the Company in connection with the Company's performance of the Contract Services, <br />as well as any compensation due the Company for the costs related to the management and <br />disposal of Residuals. <br />(C) Annual Adiustment of Fixed Fee. The Fixed Fee for each Contract Year <br />that commences after August 31, 2006 shall be determined by multiplying (1) the Base Fee for <br />the current Contract Year, times (2) the Service Fee Adjustment Factor. The Service Fee <br />Adjustment Factor will in no event be less than 3% or more than 5% in any Contract Year. <br />(D) Influent Parameter Group Election. The Influent Parameter applicable in <br />the fIrst Contract Year shall be Influent Parameter Group 1, and this Influent Parameter Group <br />shall be applicable in each succeeding Contract Year unless the City elects, in its sole <br />discretion, to change the Influent Parameter Group applicable in any such subsequent <br />Contract Year based on annual average daily flow for the preceding year excepting abnormal <br />conditions. <br /> <br />Influent Parameter Group 1 <br />BODs Load (lbsjday) <br />TSS Load (lbs j day) <br />Flow (mgd) <br />Influent Parameter Group 2 <br />BODs Load (lbsjday) <br />TSS Load (lbs j day) <br />Flow (mgd) <br /> <br />8,567 (214 mg/L avg. cone.) <br />9,648 (241 mgjL avg. conc.) <br />4.8 <br /> <br />10,709 (214 mgjL avg. conc.) <br />12,060 (241 mg/L avg. conc.) <br />6 <br /> <br />SECTION 11.4. VARIABLE COMPONENT <br />(A) Variable Component Generallv. The Variable Component of the Base Fee <br />has been established on a unit basis as set forth below, to compensate the Company for <br />variations in the influent flow and loadings in excess of the flow and loadings set forth in <br />Parameter Groups 1 and 2 above. The City shall pay the Company the Variable Component of <br />the Service Fee if the Facilities received variances in Influent flows and loadings above or below <br />the Parameter Group selected by the City for a particular Contract Year averaged over a full <br />Contract Year and provided that the net value of such variances is positive. In the event the <br />net value of such variance is less than zero, a credit shall be due to the City. The City, <br />however, shall not receive such credit except as against any charge which may be payable to <br />the Company (for increased inflows and loadings) in any future Contract Year. The amount of <br />the Base Fee payable to the Company for the performance of the Contract Services in any <br /> <br />76 <br />