E.CS 080508 AGRMT Telco Foods - Laserfiche WebLink

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sentence, if Telco fails to perform its obligations under this Agreement the City, after written notice to Telco and Telco's failure to cure within fifteen (15) days thereafter, may then assert the City Claims referred to in Recital E. 3. 2008 Electric Rate Applicable to Telco. (a) The Parties agree that the electric rate to be charged by City to Telco for all of Telco's facilities in the City (as of the Effective Date, two facilities which are located at 223 West B Street and 2111 West Valley Boulevard) for calendar year 2008 shall consist of (1) the rate charged by City pursuant to the City's adopted rate structure in effect during calendar year 2008 ("Facilities Consumption Portion"), plus (2) a fixed amount of Three Hundred Ten Thousand Nine Hundred Thirty -Nine Dollars And Fifty -Three Cents ($310,939.53) ("Facilities Fixed Amount Portion"). The Facilities Fixed Amount Portion shall be payable in five (5) equal installments of Sixty -Two Thousand One Hundred Eighty -Seven Dollars And Ninety -One Cents ($62,187.91). The first installment of the Facilities Fixed Amount Portion will be due within five (5) business days after the delivery by City to Telco of a fully executed copy of this Agreement. The subsequent four (4) monthly installments of the Facilities Fixed Amount Portion will be due on the fifteenth (15th) of each month, commencing on September 15, 2008, and continuing through the last installment due on December 15, 2008. Telco acknowledges that the Facilities Fixed Amount Portion does not constitute a surcharge or rate increase for purposes of any requirement that City provide notice, conduct hearings, or follow any other procedural requirements related to the imposition of surcharges or rate increases in connection with the collection of the Facilities Fixed Amount Portion. (b) In the event Telco has not made an installment payment of the Facilities Fixed Amount Portion within ten (10) days after the due date of such payment, interest shall accrue on the outstanding amount due at the lesser of (i) ten percent (10%) or (ii) the maximum legal rate under California law, per annum, dating from the date the installment payment was due until the date such installment payment and all accrued interest has been paid. City's right to receive interest on late payments shall not constitute City's sole remedy for late payment or nonpayment, and City shall have such rights as may be available under applicable law. Payment of each installment payment of the Facilities Fixed Amount Portion shall be made payable to City of Colton and delivered to City Manager, City of Colton, 650 North La Cadena Drive, Colton, CA 92324, by personal delivery by Telco or by a reputable same-day or overnight delivery service that provides a receipt showing date and time of delivery, with such delivery prepaid, or by United States first class mail, certified, prepaid. Payment of each installment of the Facilities Fixed Amount Portion shall be deemed made as of the date such payment is received by City. If the date an installment payment of the Facilities Fixed Amount Portion is due falls on a date that Colton City Hail is not open for regular business to the general public, the payment shall be due on the next business day. Nothing herein shall prevent or preclude Telco from making advance installment payments or making a payment in frill of the then -outstanding balance of the Facilities Fixed Amount Portion. If Telco dissolves and this Agreement is not assigned to and assumed by a successor, or if Telco ceases to operate in the City, the then - outstanding balance of the Facilities Fixed Amount Portion due to City by Telco under this Agreement shall be immediately due in fall. 4. Mutual Releases. Except as otherwise expressly provided in this Agreement, City and Telco, for themselves, and for each and all of their respective successors in interest, assigns, 394!018745-0001 862068.07 a07/31/08 -2-