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<br />The City of San Marcos Facilities Service Contract <br /> <br />The Guaranteed Maximum <br />Electricity Utilization (excluding the <br />conve ance of Re-Use Effiuent <br />The Guaranteed Maximum <br />Electricity Utilization (including the <br />conve ance of Re-Use Effiuent <br /> <br /> <br />2182 kwh/mgd <br /> <br />2161 kwh/mgd <br /> <br />2620 kwh/mgd <br /> <br />2599 kwh/mgd <br /> <br />(B) Chemicals. The Company shall pay all chemical bills incurred in the <br />operation of the Facilities. The City shall reimburse the Company for all such costs, subject to <br />the "Guaranteed Maximum Chemical Utilization" through the Pass-through Component of the <br />Service Fee. The Guaranteed Maximum Chemical Utilization shall be as follows: <br /> <br />Chemical Pre-Completion of Post-Completion of <br /> Citv Capital Project City Capital Project <br />Ferric Chloride $23.52/ MG $3.00/mg <br />Polymer (thickening) $23.48/MG $10.14/mg <br />Polymer (dewatering) $0 $13.98/mg <br />Total Annual Guaranteed Maximum $47.00/MG $27.12/mg <br />Chemical Utilization <br /> <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 chemical costs associated with the operation of the Facilities above the <br />Guaranteed Maximum Chemical Utilization. <br />(C) Insurance. The Company shall pay all premiums for the Required <br />Insurance. The City shall reimburse the Company for the Required Insurance premiums, <br />except for any increases of such premiums due to Company Fault or negligence. <br />(D) Operations Performance Bond. The Company shall pay all premiums for <br />the Operations Performance Bond. The City shall reimburse the Company for the Operations <br />Performance Bond premiums. <br />(E) Corrective Maintenance. The City shall reimburse the Company for the <br />cost of certain Corrective Maintenance in accordance with Section 9.1(E). <br />SECTION 11.6. ADJUSTMENT FACTORS. <br /> <br />(A) Service Fee Adiustment Factor. The Service Fee Adjustment Factor (AFn) <br />for each Contract Year shall be determined as set forth below. A sample calculation using the <br />Service Fee Adjustment Factor is included in Appendix 10. <br /> <br />78 <br />