Common use of Compensation Formula Clause in Contracts

Compensation Formula. The District’s rates in this Agreement are based on the rate study conducted by the City in February, 2009. Since the District has its own collection system, performs its own maintenance and only utilizes a small portion of the City’s collection system, the rate study assessed the District 100% of the treatment costs, 10% of the collection operation and maintenance costs and 10% of the collection capital replacement costs. The 2010 through 2013 sewer unit, sewer meter, BOD, TSS, Minor industrial user and significant industrial user rates are listed below. Rapid City Council will set subsequent rates based on operation, maintenance and improvement costs. Sewer Rates Per Unit: 2011 $2.09 $0.35 $2.44 2012 $2.19 $0.35 $2.54 2013 $2.29 $0.35 $2.64 BOD and TSS Sewer Rates: 2011 2012 2013 BOD/lb $0.19 $0.23 $0.27 TSS/lb $0.14 $0.17 $0.21 Industrial Pretreatment Program Annual Fees: 2011 2012 2013 Minor IU Fees $ 200.00 $ 225.00 $ 250.00 Significant IU Fees $ 2,000.00 $ 2,500.00 $ 3,000.00

Appears in 2 contracts

Sources: Sewer Service Agreement, Sewer Service Agreement