07-I Tenaska III Water Service Contract

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meter shall be repaired by a service representative qualified to work on the meter being repaired. In the event the meter must be replaced, CITY will determine a replacement meter and the method of replacement. The cost of maintenance or repair will be distributed in accordance with Paragraph 4.1. 6.3 The CITY'S representative assisted by a service representative qualified to work on the meter being repaired, will annually during each calendar year, test the accuracy and performance of the meter and will calibrate the meter measuring PARTNERSHIP'S consumption, to verify its accuracy. The CITY may, at its discretion, choose to calibrate the meter more frequently, if conditions so warrant. The cost of the calibration will be distributed in accordance with paragraph 4.1. A representative ofP AR TNERSHIP will be notified in advance of any testing and! or calibration and shall have the right to witness any such testing. All testing will be performed by a qualified representative or mutually agreed upon testing service. 6.4 When it is determined that the water meter has registered incorrectly, an estimate of the amount of water furnished through the faulty meter shall be prepared by CITY'S Director of Finance for the purpose of billing PARTNERSHIP. The estimate shall be based upon such method (such as a water usage measurement correlated to actual electrical generation) which would most accurately reflect the actual consumption for the period in which the meter failure occurred as mutually agreed upon by the City Manager and Plant Manager of the respective parties. 6.5 For the meter to be determined as "registering incorrectly," the meter must be found to be in error by plus or minus 2.5%, or greater. If the degree of error is plus or minus 2.5%, or greater, then the estimated amount of water furnished to PARTNERSHIP will be calculated as stated in the immediately preceding paragraph. VII. Rates 7.1 For purposes of billing under this Agreement, a day shall be that period of time beginning at 12:00 midnight and continuing through 11 :59 p.m. 7.2 PARTNERSHIP will be charged a two-part rate based on PARTNERSHIP'S treated water consumption and Maximum Day Demand. 7.3 Charges for treated water furnished to PARTNERSHIP during the Initial Period of this Agreement shall be from the date of execution through May 31, 2006 and have been computed as follows: 7.3.1 An annual demand charge per million gallons per day (MGD) of Maximum Day Demand of water delivered to PARTNERSHIP shall be $95,228 per MGD. 7.3.2. The volumetric charge shall be $0.60 per 100 cubic feet of treated water withdrawn by PARTNERSHIP from the CITY'S water utility system. Tenaska III Water Service Contract - Page 4 . T-'