C153701 Contract - Laserfiche WebLink

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, "I to account for differences between the estimated and actual costs for the prior year and anticipated differences in the current year. The SWSP Enterprise will reconcile the Allottee's payment with the actual costs incurred for each Fiscal Year and shall either apply a credit or impose an additional charge on the following year's billing statement. Allottee shall pay the charges shown on the first year's billing statement within sixty (60) days after receipt. Allottee shall pay the net charges shown on billing statements for subsequent years by March 15. Any interest earned by the SWSP Enterprise on funds paid by the Allottee before being expended by the SWSP Enterprise shall be credited against the succeeding year's Non-Segment Specific Costs. Allottee shall have the right to annually audit, at its expense, the books and records of the SWSP Enterprise relating to the Pipeline. b. 1. The requirement to pay administration, operation, maintenance, repair and replacement charges and costs of the Pipeline shall be subject to annual appropriation or budgeting of such charges and costs by the Allottee and shall not be a multiple fiscal year obligation of the Allottee. If those charges and costs are not paid in accordance with this contract, the SWSP Enterprise shall give the Allottee written notice of default hereunder and Allottee shall have ninety (90) days after receipt of the notice to cure the default. In the event that the Allottee does not fully cure the default within said ninety (90) day period, the Allottee shall automatically lose a portion of its allotted capacity ('Lost Capacity') determined by the SWSP Enterprise to be equal in value to the amount of charges and costs not paid and the Allottee shall have no further obligation to pay administration, operation, maintenance, repair and replacement charges and costs of the Pipeline related to the Lost capacity. The SWSP Enterprise's determination of value of the Lost Capacity shall be based upon the price of at least three recent sales of capacity in the Pipeline, suitably adjusted for inflation and other relevant factors. If three recent sales have not occurred, the SWSP Enterprise'S determination of value of the Lost capacity shall be based upon the original cost of the Pipeline [including all planning, design, permitting, land acquisition, construction and other costs) suitably adjusted based upon depreciation, inflation, interest rates and other relevant factors. Other Participants shall have the right to purchase such Lost Capacity wi thin ninety (90) days after the S.SP Enterprise gives notice that it is available for purchase at the value determined by the SWSP Enterprise, plus any costs that the SWSP Enterprise incurs in performing its duties under this paragraph. If there are more Participant purchasers than Lost Capacity available for sale, it shall be allocated based upon eacb Participant's previously allotted capacity in the Pipeline as set forth on Schedule B. If not all of the Lost Capacity is purchased by the other Participants ,ithin the ninety (90) day period, the SWSP Enterprise may sell the Lost Capacity to any Entity eligible to use Pipeline capacity hereunder at the price at which it was offered to tbe Participants. After any such sale, any amount in excess of the unpaid charges and costs plus interest and any costs that the SWSP Enterprise incurs in performing its duties under this paragraph shall be refunded to the Allottee. ii. If the SWSP Enterprise is unable to sell the Lost Capacity ,ithin ninety (90) days after it is offered for sale to any Entity eligible to use Pipeline capacity hereunder, the SWSP Enterprise shall have the right to te~inate deliveries to the Allottee, After such ternination of delivery, the SWSP Enterprise shall continue to offer the Lost Capacity for sale at the price at which it was offered to the Participants and water deliveries to Allottee shall be resumed (for capacity for which payments are current and which has not been sold) upon sale of the Lost Capacity to Allottee or any other eligible Entity. Unpaid operating and maintenance expenses shall be drawn from the reserve fund. The reserve fund shall be replenished by the 10