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s <br />2. The operation and maintenance charge will be <br />the actual cost of water production multiplied by the <br />percentage that water delivered to LCWSD's system is of <br />the total water treated at the Water Treatment Plant <br />exclusive of such water used in the production process. <br />Pumping and maintenance costs beyond the point of <br />connection to LCWSD's facilities are not to be <br />included. The City's debt service and cost for Pat <br />Mayse storage are to be considered a part of the cost <br />where applicable. The City will continue to segregate <br />and identify water production costs in substantially <br />the same manner as currently followed. Billing costs <br />i <br />will not be included. The City agrees that with regard ! <br />to cost items over which it has control, i.e., labor <br />costs, except those labor costs caused by statutory or <br />court required changes, if any, will not increase in <br />excess of the cumulative increase in the Consumer Price <br />Index for All Urban Consumers (CPI -U) U. S. City <br />Average (1967 =140) published by the United States <br />government during the term of this contract. It is <br />agreed that the base month for this contract is October <br />1954 which has an index value of 315.3. <br />3. An administrative fee equal to 6.5% of <br />the sum of 1 and 2 above. <br />i <br />13 <br />