|
<br />required to be deposited by City into the escrow account, covering the
<br />immediately preceding three-month period. City shall accompany each payment
<br />with a sworn statement, certifying as true and correct, the amount of gross receipts
<br />collected pursuant to this Agreement for the immediately preceding three-month
<br />period.
<br />
<br />(a) (3) For the period commencing January 1, 2008 and ending
<br />March 31, 2026, City will establish an escrow account, into which City shall
<br />deposit two thirds (2/3) of all gross receipts from patrons using the pier. The
<br />purposes of this escrow account is to establish a self-insured fund for the future
<br />repairs to or restoration of the pier in event of damage or destruction to the pier,
<br />either from natural or other causes, which repairs and restoration the City shall
<br />perform. City will continue to deposit, into the escrow account, two thirds (2/3)
<br />of all gross receipts from patrons using the pier, until the escrow account reaches a
<br />balance in an amount that produces buying power equivalent to $450,000.00 in
<br />the year 2007, said balance being hereinafter called 'the $450,000.00 equivalent'.
<br />During the term of this agreement, the $450,000,00 equivalent, as used herein,
<br />means an amount that produces buying power equivalent to $450,000.00 based on
<br />the change, if any, in the Houston, Texas, Average Consumer Price Index - All
<br />Urban Customers ("CPI-U"). The calculation of the increase, if any, is set forth in
<br />subparagraph (f) below. In the event the balance in the escrow account falls
<br />below the $450,000.00 equivalent, the City shall promptly commence depositing
<br />two thirds (2/3) of all gross receipts into said escrow account so as to increase the
<br />balance to the $450,000.00 equivalent. After the escrow account reaches a
<br />balance of the $450,000.00 equivalent, the City shall pay to County one third (1/3)
<br />of the gross receipts, as hereinafter defined. On or before the tenth (10th) day of
<br />January, April, July, and October during the term of this Agreement, the City shall
<br />compute and pay to the County, without demand, at the Office of the County
<br />Treasurer, the County's one-third (1/3) portion of the gross receipts that is not
<br />required to be deposited by City into the escrow account, covering the
<br />immediately preceding three-month period. City shall accompany each payment
<br />with a sworn statement, certifying as true and correct, the amount of gross receipts
<br />collected pursuant to this Agreement for the immediately preceding three-month
<br />period."
<br />
<br />II
<br />
<br />The portion of Subparagraph (f) of Paragraph IV of the Lease Agreement, as amended,
<br />which provides as follows:
<br />
<br />"(f) (1) On each of the first four anniversary dates of this
<br />agreement, the $60,000.00 equivalent will be adjusted by multiplying $60,000.00
<br />by a fraction, the numerator of which is the CPI-U for the immediately preceding
<br />calendar year, and the denominator of which is the CPI-U for the year 1993. The
<br />resulting number shall be the $60,000.00 equivalent for the year commencing on
<br />said anniversary dates. In the event the Consumer Price Index is discontinued, the
<br />Consumer Price Index shall thereafter mean such index of prices published by the
<br />U.S. Government as most nearly approximates the Consumer Price Index now
<br />published.
<br />
<br />(f) (2) On the 5th through and including the 31 st anniversary dates
<br />of this agreement, the $150,000.00 equivalent will be adjusted by multiplying
<br />$150,000.00 by a fraction, the numerator of which is the CPI-U for the
<br />immediately preceding calendar year, and the denominator of which is the CPI-U
<br />
<br />,1
<br />-t
<br />
|