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e e The annual cost of contract adjustment shall be calculated by multiplying the previous annual rate by a factor of the larger of 2.5 percent .(2.5%) or the Consumer Price Index - Urban (CPI-U) us'ing September 2001 as' the base. However, the annual rate increase' shall not exceed five percent (5%). III. LA PORTE agrees to provide emergency medical services at PORT's Barbour's Cut Terminal. LA PORTE shall transport patients to one of the nearest hospitals providing emergency services that is defined by the transport policy of the City of La Porte Emergency Medical Services. LA PORTE shall be permitted to charge, to each patient, its most current and customary Emergency Medical Service charges as adopted by City Council. IV. Sole discretion will rest with the LA PORTE Director of Emergency Medical Services, or his duly authorized assistants, as to the personnel and equipment that will answer each emergency medical services request, provided, emergency medical services protection will be adequate (meaning reasonable protection, considering available personnel and equipment of LA PORTE's Emergency Medical ServicE;!s).and dispatch of personnel and equipment to provide emergency medical services within the corporate limits of the City of La Porte. V. COMPLIANCE WITH LAW AND ORDINANCES LA PORTE agrees to operate the ambulances in accordance with the, requirements of the State and Federal law, and applicable municipal or county ordinances, as the same now exists, ~nd as may be amended from time to time hereafter. VI. LIABILITY INSURANCE During the term of this Contract and any extension thereof, LA PORTE shall purchase and keep in full force and effect, public liability insurance on each of its ambulance units, and professional liability insurance (malpractice insurance) on each of its employees administering patient care, with minimum limits of ($100,000.00) for each single occurrence for injury to or destruction of property; ($100,OOO.00) for each person;