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integrity of MJC's system is violated. MJC's valve may also be used by CITY to protect <br />MJC's water system or to facilitate repair of CITY's water system. <br />7.2 The CITY's representative will regularly inspect the meter measuring the supply of <br />water furnished and will report when the same is known or suspected to be registering <br />incorrectly. In the event the meter is not functioning properly, the CITY may repair or <br />replace the meter at the CITY's discretion. In the event the meter must be replaced, CITY <br />and MJC will agree upon a replacement meter and the method of replacement. The cost <br />of maintenance or repair of the meter shall be shared equally by MJC and the CITY in <br />accordance with Paragraph 5.1. <br />7.3 When it has been determined that the water meter has registered incorrectly, an <br />estimate of the amount of water furnished through the faulty meters shall be prepared by <br />CITY's Director of Finance for the purpose of billing MJC. The estimate shall be based <br />upon the average of correct readings for the same or equivalent months in the preceding <br />year or such other method which would most accurately reflect the actual consumption for <br />the period in which the meter failure occurred as can be mutually agreed upon by the City <br />Manager and MJC's President or designated representative of the respective parties. <br />VIII. <br />Rates <br />8.1 For the water received under this contract, MJC agrees to pay CITY the <br />Commercial/Industrial Class rate, as provided in Section 34-22 of Chapter 34 of the City of <br />Paris Code of Ordinances, as amended. The parties further agree that this rate may be <br />amended annually by the Paris City Council based upon the results of the Water and Sewer <br />Cost of Service Study. This rate includes a base charge for the first 100,000 cubic feet of <br />water supplied and a service charge for each additiona1100 cubic foot of water supplied. <br />IX. <br />Payment of Charges <br />9.1 User Charges under Article VIII of this Agreement shall be billed by the CITY on a <br />monthly basis with such billing being rendered on or about the same day each month. All <br />such charges shall be due and payable on the tenth day following the billing date and shall <br />Water Service Contract - Page 4 of 8 <br />