07-24-14 Regular Meeting of the La Porte Area Water Authority

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5. Collect, on a monthly basis, all necessary water samples as required by local, state, and federal regulations. 6. Run complete chemical analysis of water supply. 7. Prepare, submit, and furnish copy to OWNER all required reports to local, state, and federal agencies having regulatory powers over OWNER'S transmission system. 8. Furnish monthly operational, fiscal, and budgetary reports to OWNER. 9. Prepare operation line -item budget estimate for OWNER'S approval prior to the termination of this Agreement. 10. Perform preventive maintenance as required by equipment manufacturers' operating manuals, provided by OWNER. 11. Maintain required records of water system operations. 12. Report to OWNER system improvements and/or major repairs needed. 13. Prepare, mail, and collect monthly bills for water consumed by all customers, in accordance with the Accounting Policy Statement attached hereto as Exhibit "A". 14. Process invoices for materials, supplies, and services necessary to operate the water supply system. 15. Provide necessary office space in its facilities for a master control center needed for the control, historical recording, and reporting of the water transmission system. OPERATOR shall receive compensation for services (Annual Fee) enumerated in Section II above in the amount of $67,007, payable monthly, in a sum equal to 1/12 of the Annual Fee, on or before the 15 h day of each month that this Agreement remains in effect. The Annual Fee shall be binding on the Operator and the Owner for the first year of the Agreement, that is from October 1, 2014 through September 31, 2015. Beginning October 1, 2015, and in subsequent years thereafter, there shall be an annual cost of living adjustment of the Annual Fee. The annual cost of living adjustment shall be calculated by multiplying the Annual Fee by a fraction, the denominator of which shall be the April 2014 Consumer Price Index for All Urban Consumers (CPI-U), all items, U.S. City Average, and the numerator shall be the CPI-U for all items, U.S. City Average for April 2015, and subsequent dates of adjustment. The Base Month/Year for the Annual CPI calculation is April 2001 (CPI-U = 176.90) with the Operator's Fee beginning October 1, 2001 equal to $50,000.