Common use of Major Capital Improvements Clause in Contracts

Major Capital Improvements. In addition to the Service Charges otherwise imposed under this Section 7.1, but subject to Section 7.1(c) and Section 7.2, the Concessionaire may also impose a Capital Cost Recovery Charge to recover the capital costs of Major Capital Improvements. If the Concessionaire seeks to impose a Capital Cost Recovery Charge it shall submit to the City a written report detailing the capital cost of the Major Capital Improvement, the sources for funding such capital cost, the expected placed in service date of the Major Capital Improvement, the expected average useful life of the Major Capital Improvement and the proposed Capital Cost Recovery Charge which the Concessionaire proposed to impose over the term of the Cost Recovery Period. The report shall be considered by the City within 30 days of its submission and shall be subject to the Approval of the City, which Approval shall not be unreasonably conditioned, delayed or withheld. Any Approved Capital Cost Recovery Charge may be imposed during the Cost Recovery Period.