1998-141-RES WHEREAS, CITY COUNCIL DID HERETOFORE ONTHE 8TH DAY OF JUNE eretofore, on the 8th day of June,

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Schedule 5 Base Delivery Amount and Operations Fee; 1997 - 1998 Hypothetical Amount; Miscellaneous BASE DELIVERY AMOUNT (BDA) - Expenses incurred by the City in regard to any fiscal year of the City. The Initial Numbers (herein so called) derived from the Items below will then be adjusted (in order to determine the applicable Base Delivery Amount owed by Panda regarding such fiscal year) as set forth in the "Calculations" section below. 1. Administration Expense: reasonable expenses of City administrative personnel incurred in administering Raw Water services to all of its Raw Water customers (including Raw Water used to create treated water for any such customers) (other than expenses described in Item 4 below). 2. Reserve Requirements - (shortfall): the shortfall, if any, in the pro rata amount (based on the percentage of the applicable debt used to service the Water Supply Facilities) required (by the financial covenants in any existing debt instruments of the City used to directly finance the Water Supply Facilities of the City) to be maintained by the City at the end of each fiscal year of the City. 3. Warehouse: reasonable expenses incurred in the maintenance of the pro rata portion of the warehouse (based on the percentage amount of the warehouse dedicated to spare parts for the Water Supply Facilities) which is used by the City to store spare parts for its Water Supply Facilities. 4. Billing & Collecting (net of transfers): reasonable expenses of administrative personnel directly related to billing and collections for the City's Raw Water service to all of its Raw Water customers (including Raw Water used to create treated water for any such customers). 5. Electricity: reasonable expenses for electricity directly related to the City's delivery of Raw Water to all of its Raw Water customers (including Raw Water used to create treated water for any such customers). 6. 0 & M - Pat Mavse Lake: reasonable operations and maintenance expenses directly incurred by the City in operating its Pat Mayse Lake Raw Water facilities. 7. Water Distribution Capacity 0 & M: reasonable expenses incurred by the City in operating and maintaining water pipelines (other than the Pipeline, which is discussed in Item 12 hereinbelow) used by the Plant and by all of the City's Raw Water customers (including customers who use Raw Water to create treated water). 8. Other 0 & M: other reasonable operations and maintenance expenses, if any, directly related to the City's delivery of Raw Water to all of its Raw Water customers (including Raw Water used to create treated water for any such customers). This includes spare parts used to repair those parts of the Water Supply Facilities of the City not addressed in Item 11 hereinbelow. 9. Corps of Engineers Water Reservation Fee: the expense incurred each fiscal year by the City to reserve water at Pat Mayse Lake with the U. S. Army Corps of Engineers, or to reserve or obtain additional Raw Water as may be applicable to this Agreement pursuant to Section 8.03. 10. Debt Coverage: amortized actual scheduled payments on the pro rata portion of debt (based on the percentage of the applicable debt used to service the Water Supply Facilities) of the City directly related to the Water Supply Facilities. The Parties recognize that this Item covers significant capital expenditures related to the City's Water Supply Facilities used by Panda and other Raw Water customers (including Raw Water used to create treated water for customers) of the City. The Parties also recognize that in the event any debt were to be incurred by the City solely in regard to the Pipeline, the amortized actual scheduled