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<br />the same or equivalent months in the preceding three (3) years, or if available and in lieu of said three (3) <br /> <br />year average, based on such other method which would more accurately reflect the actual consumption for <br /> <br />the period in which the meter failure occurred as mutually agreed upon by the City Manager and Plant <br /> <br />Manager of the respective parties. <br /> <br />6.5 For the meter(s) to be determined as "registering incorrectly," the meter(s) must be found to be <br /> <br />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 <br /> <br />estimated amount of water furnished to CAMPBELL will be calculated as, stated in the immediately <br /> <br />preceding paragraph. <br /> <br />VII. Rates <br /> <br />7.1 For purposes of billing under this Agreement, a day shall be that period of time beginning at <br /> <br />12:00 midnight and continuing through II :59 p.m. <br /> <br />7.2 CAMPBELL will be charged a two-part rate based on CAMPBELL's¡treated water consumption <br /> <br />and Maximum Day Demand. <br /> <br />7.3 Charges for treated water furnished to CAMPBELL during the Initial Period of this Agreement <br /> <br />shall be ftom the date of execution through May 31, 2004 and have been computed as follows: <br /> <br />7.3. I An annual demand charge per million gallons per day (MGD) of Maximum Day Demand of <br /> <br />water delivered to CAMPBELL shall be $72,000 per MGD. <br /> <br />7.3.2 <br /> <br />The volumetric charge shall be $0.45 per 100 cubic foot of trfated water withdrawn by <br /> <br />CAMPBELL ftom the CITY's water utility system. <br /> <br />7.4 For the Initial Period, CAMBELL's Maximum Day Demand shall b~ established at 6.0 MGD. <br /> <br />7.5 Each twelve (12) month period following the Initial Period, beginning June I and ending May <br /> <br />31 of the following year, shall be defined as a "Rate Year." <br /> <br />7.6 For cost of service studies following the Initial Period, and except for data associated with the <br /> <br />Water Purchase Contract - Page 5 <br />