Common use of Fixed Management Fee Clause in Contracts

Fixed Management Fee. The Fixed Management Fee for the Contract Year beginning February 1, 2023 shall be $8,843,318.00. This Fixed Management Fee represents a significant increase of scope over the Fixed Management Fee for the Contract Year ending January 31, 2023. Attached hereto as Table 5-1, is a chart that reflects the basis for said increases. The Fixed Management Fee shall be increased by the Index Factor as set forth in this Schedule 5 for the year beginning February 1, 2023 and each year thereafter. The adjustment to the Fixed Management Fee noted above includes the sum of items A, B, C, D and E below (see Table 5-1 for details): A. Seven (7) additional full-time staffing positions added in response to address new regulatory requirements and enhance performance for maintenance activities as a result of experience gained during the contract term to date. Fee established based on total average salaries multiplied by 1.4 for payroll overheads and taxes, then add 15% of total for overhead and profit. B. Increased water treatment plant operations and maintenance expenses (projected annual costs plus 8% for overhead and profit), including: a. granular activated carbon changeouts at the Parkside water treatment plant, which assumes 3 (three) changeouts per Contract Year b. zinc orthophosphate corrosion control inhibitor at both the Parkside and ▇▇▇▇▇▇-▇▇▇▇▇▇ treatment plants. c. Should operational conditions result in additional costs for either granular activated carbon or zinc orthophosphate then any additional costs will be covered by the MR&R Allocation. C. Additional scope items (projected annual costs plus 8% for overhead and profit), including: a. updating the water system hydraulic model; b. adhoc engineering support for the water and wastewater systems; c. additional support for the myriad of OPRA requests; and d. support needed in response to changes in the New Jersey Water Quality Accountability Act. D. Additional water quality monitoring samples (projected first year costs plus 8% for overhead and profit), including: a. Six (6) additional PFAS samples for process control at the Parkside water treatment plant. E. Adjustment to the Fixed Management Fee related to the 8% administrative fee for the Maintenance, Repair and Replacement (“MR&R”) Allocation and to the Annual Utilities (“Utilities”) Allocation as follows: a. $53,746.00 related to the adjustment to the MR&R Allocation in Amendment 1 of the Agreement from $3,825,628.00 to $4,497,449.00 that was inadvertently not added to the Fixed Management Fee in Amendment 1 to the Agreement. This adjustment will take effect, beginning with Contract Year ending January 31, 2023, and will continue through the remainder of the Term of the Agreement. b. $120,404.00 related to the adjustment to the MR&R Allocation at the beginning of Contract Year 7 from $4,497,449.00 to $6,000,000.00 and will be effective for the Contract Year ending January 31, 2023, and will continue through the remainder of the Term of the Agreement. c. $11,966 related to the adjustment to the Utilities Allocation at the beginning of Contract Year 7 from $ 930,421.00 to $1,080,000.00 and will be effective for the Contract Year ending January 31, 2023, and will continue through the remainder of the Term of the Agreement.