APPENDIX B
COMPENSATION AND REIMBURSABLE COSTS
A. Compensation. The compensation will be as follow:
Administrative fee: The administrative fee will be 10% of Gross revenue for the Project
for generation up to 20,000,000kWhs and 20% of gross revenues for project generation
for generation over 20,000,000 kWhs. The administrative fee payment shall be a
minimum of $90,000 for both Projects. The full minimum administrative fee only
applies for full year ownership of both Jackson Mills and Mine Falls. Partial year
ownership of Mine Falls is anticipated in the first year of this contract therefore fifty
percent of the minimum administrative fee, $45,000, would be adjusted on a pro-rated
basis for the number of days the City owns the project.
Third party expenses will be billed at cost.
Labor costs will be paid according to the following hourly rates:
Assistant Operator: $30/hr
Operator: $50/hr
Supervisor $60/hr
Manager: $100/hr
President, VP or Treasurer: $150/hr
President, VP/treasurer labor would only be charged for services beyond the scope of this
agreement with authorization from Owner. No other labor costs such as taxes, bonuses,
benefits, or travel reimbursement will be charged to owner.
All labor costs shall be adjusted annually by any increase or decrease in the change in the
12 month Northeast CPI from the prior year, starting on January 1, 2018.
B. Reimbursable Cost items shall be paid to Operator in accordance with the
requirements of Articles 5 and 7. Reimbursable Costs include:
1. Spare and replacement parts
2. All material, tools and equipment necessary to operate and maintain the Project
3. Chemicals
4. Lubricants (including proper disposal costs)
5. Specialized instrumentation and calibration equipment
6. Rigging and handling equipment
7. Consumables and general supplies
8. Cleaning Supplies
9. Shop equipment installed in Project
10. Authorized leased equipment
11. Major equipment overhauls
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