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• i <br />1.15 "Authority Director" means the City Manager of the City <br />of La Porte, or any other person designated by the Authority. Any <br />notice by the Authority of an alternate designation or revocation of <br />designation shall be in writing and delivered to Houston pursuant to <br />the notice provisions herein. <br />1.16 "Point of Delivery" shall mean the point at which <br />treated surface water produced by the Project is supplied to the <br />Authority as shown in the attached Exhibit "A". The Point of Delivery <br />shall include primary measuring equipment, valves, backflow prevention <br />devices, devices to physically constrict the rate of flow of water to <br />the Authority to an amount equal to the product of the Pumping <br />Allocation Factor for the Authority times the Pumping Capacity for the <br />Project, piping, a proper vault and such other items as are necessary <br />in the judgment of the Houston and the Authority Director. The Point <br />of Delivery shall also include a bypass and a bypass meter unless the <br />Authority specifically requests in writing that these items be omitted. <br />1.17 "Production Capacity" means the maximum rate of <br />production of water from the Project. The initial production capaei~ty <br />of the Project equals 80 MGD. <br />1.18"Production 0 & M Expense" for a Billing Period means a•sum of <br />. .. money computed according to the following formula: <br />Production 0 & M Expense (A x C) + (A x D) <br />B E <br />Zn the foregoing formula: <br />"A" is the number of gallons of treated potable water produced by <br />the Project and delivered to the Authority at its Point of <br />Delivery during the given Billing Period. <br />_ - - "B." is the total number of gallons of treated potable watet'..'~' - :- <br />,.. praduced by the Project during the given Billing i'eriod-. <br />"C" is the total Houston expenditure during the given billing <br />period far the operation and maintenance of the Project; <br />(including reasonable imputed costs for services of Houston <br />employees as well as costs of fire insurance), and excluding >yhose <br />operations and maintenance costs used to compute the Pumping 0 & M <br />Expense and also excluding expenditures for the sale of bonds, <br />notes, .and other evidence of indebtedness issued for capital <br />purposes. <br />"D" is the total Houston expenditures for the operation, <br />maintenance and debt service for the raw water storage and <br />transmission facilities during the Billing Period.' <br />4 <br />