HomeMy WebLinkAbout7/1/2009 - STAFF REPORTS - 2.D. �oF ,ALMSpy
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City Council Staff Repo
Date: JULY 1, 2009 CONSENT CALENDAR
Subject: APPROVAL OF AMENDMENT N0, 9 TO THE AMENDED AND
RESTATED WASTEWATER SERVICES AGREEMENT (AGREEMENT
N0. 4123) WITH VEOLIA WEST OPERATING SERVICES, INC.
(FORMERLY VEOLIA WATER NORTH AMERICA-WEST, LLC)
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
Agreement No. 4123 with Veolia West Operating Services, Inc., provides the City with
turn-key operation and maintenance of the City's sanitary sewer system. An
amendment to the current agreement is recommended to include wastewater auditing,
billing, customer support and associated services not currently included in the City's
agreement.
RECOMMENDATION:
1) Approve Amendment No. 9 to the Amended and Restated Wastewater Services
Agreement (Agreement No. 4123) with Veolia West Operating Services, Inc.
(formerly Veolia Water North America-West, LLC); and
2) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On June 21, 2006, City Council approved the Amended and Restated Wastewater
Services Agreement (Agreement No. 4123) with Veolia West Operating Services, Inc.
(formerly Veolia Water North America-West, LLC) ("Veolia"). The Agreement provides
the City with operation and maintenance of the City's sanitary sewer collection system
and its wastewater treatment plant, as well as to provide the City with a variety of
associated programs (such as the Fats, Oils and Grease [FOG] pollution control
program, stormwater quality program, and sewer system management plan). The
Agreement was a restatement of an original agreement with Veolia (at that time known
as U.S. Filter) approved July 28, 1999.
ITEM NO. ��' `
City Council Staff Report
July 1, 2009 - Page 2
Amendment of Wastewater Services Agreement No. 4123
The original agreement with U.S. Filter had an initial 5 year term, extended to June 30,
2006, by amendment. At the time, the City and Desert Water Agency ("DWA") were
contemplating the sale of the wastewater treatment plant to DWA, however, that sale
did not occur. As a result, the City negotiated a longer term agreement with Veolia, to
ensure the City was provided with appropriate operation and maintenance of its sewer
system. The current term of the Agreement extends until June 30, 2013, subject to a
performance review by December 31, 2012, and a subsequent 5 year extension until
June 30, 2018 (pending a satisfactory performance review finding by the City in
accordance with the terms of the Agreement).
The original agreement was amended six times, with Amendment No. 7 being the
complete revision of terms and extension of time stipulated in the Amended and
Restated Wastewater Services Agreement. A minor amendment (Amendment No. 8) to
the agreement was approved by the City Manager in 2008 to add street sweeping
services of City owned parking lots to the agreement. The proposed amendment is
therefore considered Amendment No, 9 to the agreement.
The City has approximately 27,000 sewer customers throughout the City. These
customers consist of a variety of properties, such as single family homes,
condominiums, duplexes and apartments, commercial properties, restaurants, and
hotels. The sewer service charges established in the current Comprehensive Fee
Schedule are a variety of rates which depend upon the type of'use for the property
connected to the City's sewer. For example, residential uses have a flat monthly rate of
$10.36 per unit; however, commercial uses have monthly rates that vary depending
upon the number of fixture units (bath tubs, sinks, toilets, etc.) in the building, and hotels
have monthly rates that vary depending upon whether or not the hotel rooms have
kitchens.
Annually, these fees generate approximately $5 Million which are utilized to maintain
the City's sanitary sewer collection system and wastewater treatment plant. An effort
was recently initiated by the Finance Department in the previous fiscal year, using
temporary staff, to commence an audit of the City's wastewater fund customer billing
database. Although the effort was limited to approximately one year (and ended due to
cancellation of temporary employee work assignments as a part of the budget deficit
reduction program), the initial auditing effort identified changes to the customer billing
database that recovered approximately $200,000 (or 4%) of the City's total sewer
charges. A continuation of the audit to its completion is expected to identify more
changes to the customer billing database resulting in additional sewer charges, to as
much as 10% of the City's total sewer charges.
The City's sewer service charges have been collected on the Riverside County tax roll
since the 1980/1981 fiscal year. This was done to eliminate the administrative burden
of coordinating individual monthly billings for all of the City's sewer customers.
However, despite having a vast majority of the City's sewer service charges collected
on the County's tax roll, there remain several hundred individual billings that must still
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City Council Staff Report
July 1, 2009 - Page 3
Amendment of Wastewater Services Agreement No. 4123
be coordinated annually by the Finance Department. These individual billings are
related to non-taxed parcels (properties owned by tax exempt or governmental
agencies), and therefore, must be separately billed.
The sewer service charge billing and management has been implemented by the City
using a very old computer software system known as "COBOL", initially developed in
1959. COBOL is one of the oldest programming languages, and it is used primarily in
business, finance, and administrative systems for companies and governments. This
system has not been updated, is not "Windows friendly", and is very difficult to use if
attempting to manipulate the data fields, produce billing reports, or other administrative
functions. Converting the City's sewer service charge billing system to a current
software program has been one important task that has not yet been accomplished, but
is a priority for the wastewater fund.
Over the years, the City has expanded its sewer system to provide service to most of
the properties throughout the City. As properties develop and connect to the City's
sewer system, there is a need to capture that property and ensure it is added into the
City's sewer service charge billing database. Over time, there are also changes made
to existing properties where buildings are demolished and new buildings constructed, or
tenant improvements are made (thereby adding or deleting "fixture units") to existing
buildings, hotel rooms are added or deleted (with or without kitchens added), and so
forth. These changes to the sewer service charge billing database are equally
important to capture. The process to ensure these changes to the City's billing
database occur primarily involve the Building and Finance Department, and require
preparation of reports identifying changes in connections to the sewer system and data
input of those changes into the COBOL system.
Over time, through loss of employees through attrition, or more recently, through
reduction in staffing levels, there became a need to out-source the sewer service
charge billing function. It is staffs recommendation that the sewer service charge billing
function and all associated services be added to the Veolia agreement, as Veolia is the
most appropriate vendor to coordinate the billing function for the City's sewer system
given the operation and maintenance functions they currently perform. It should be
known that Veolia currently provides billing management services to over 40 municipal
clients, from the City of Seymour CT (10,000 residents) to Indianapolis IN (2,000,000
residents).
Based on Veolia's current status as the City's wastewater operator, and given Veolia's
experience providing customer billing services and support to other municipal clients,
staff solicited a proposal from Veolia to provide Palm Springs with similar customer
billing services and support. In accordance with Chapter 7.04.030 "Special Expertise
Procurement," of the Palm Springs Municipal Code, the City Council has the authority to
consider awarding a sole source agreement without competition when it is determined
that an unusual or unique situation exists, in that due to experience and expertise
demonstrated in prior contracts with the City a particular contractor is uniquely qualified
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City Council Staff Report
July 1, 2009 - Page 4
Amendment of Wastewater Services Agreement No. 4123
for a particular task, that makes the application of all requirements of competitive sealed
bidding or competitive sealed proposals contrary to the public interest. Staff would
recommend that the Council consider Veolia uniquely qualified in this case.
The goals to accomplish related to billing services and support relates to the following 5
primary goals:
1. Provide improved sewer customer billing data collection and management;
2. Provide monthly billing preparation and mailing;
3. Coordinate annual billing data transmission for the Riverside County Tax Assessor;
4. Complete an audit of the City's existing sewer service charge billing database with
all available Building Department records to ensure the database is current with all
new properties connected to the sewer system, and is current with all prior changes
to buildings affecting the total number of fixture units;
5. Provide on-going auditing services of the City's existing sewer service charge billing
database to ensure all changes to sewer connections are captured and identified.
Veolia has submitted a proposal that matches the City's goals, and is outlined in the
following scope of services:
Billing Database Auditing — Review existing City records to identify all potential
customers who are discharging to the sewer system and not currently paying for sewer
services. Review existing City records to identify all existing customers who previously
made modifications to their plumbing systems (affecting the number of fixture units) and
require a modification of the existing sewer service charge fee. Update the sewer
service charge billing database as appropriate.
Payment Delinquency Program — Evaluate payment delinquency programs from other
municipalities; evaluate current state and/or federal law applicable to sanitary sewer
services and payment delinquency programs; identify and prepare an appropriate
payment delinquency program for the City of Palm Springs.
Data Management — Provide daily customer billing data management off-site by
Veolia's customer care and information technology teams. Data management services
to include recording on-going changes in customer billing data, additions and deletions
of customers to the billing database, and preparation of electronic billing database
reports required by the City. Coordinate preparation of annual customer electronic
billing database for submittal by the City to the Riverside County Tax Assessor; confirm
consistency between the Riverside County Tax Roll and the City's billing database, and
make any required changes to the billing database. Provide final annual billing
database indicating Riverside County Tax Assessor's Parcel Number and
corresponding sewer service charge to City by July 1, for City's transmittal to Riverside
County.
City Council Staff Report
July 1, 2009 - Page 5
Amendment of Wastewater Services Agreement No. 4123
Monthly Billinq — Coordinate all individual monthly billings for those customers not billed
through the annual Riverside County tax roll. Prepare, print and mail monthly sewer
bills. Coordinate delinquent accounts pursuant to an established payment delinquency
program approved by the City. Provide customer service for the City, respond to
questions from customers related to their sewer service Charge, and coordinate with
Veolia's operation and maintenance staff at the City of Palm Springs wastewater
treatment plant for customer service related issues. Coordinate sewer service charge
funds collection through direct mail by customers to a lock-box address listed on the
customer bill, or via on-line payment made available by Veolia's on-line web-based
payment service vendor. Facilitate monthly sewer service charge funds transfer to the
City pursuant to the City's Finance Department requirements.
Billing Database Conversion — Transfer all existing data from the City's current billing
database contained on its COBOL system to Veolia's billing database system
(approximately 27,000 customers). Coordinate all data entry, system testing, and
verification of billing database conversion from City's COBOL system to Veolia's billing
database system. Veolia's billing database to be made available to City staff for viewing
by remote connection (via on-line web-based servers) mutually agreeable to City and
Veolia.
The recommended fees for the billing services and support outlined above are as
follows:
Billing Database Auditing — $40.80 per hour; hourly rate represents an all inclusive rate
(all expenses and benefits) for providing support personnel necessary to perform on-site
and off-site auditing of City records. Compensation not to exceed $84,864 annually
(equivalent to 2,080 hours).
Payment Delinquency Program — included in the Billing Database Auditing
compensation rate.
Data Management— $10,000 flat rate, annually
Monthly Billing -- $3.50 per month; on-line payment will require an additional $1.95 on-
line payment processing fee payable by customer with on-line payment.
Billing Database Conversion — $160 per hour, not to exceed $20,000
SUMMARY:
Out sourcing the sewer service charge billing, customer service and support, billing
database management, and other associated services to Veolia will provide final
consolidation of the operation, maintenance and administration of the City's wastewater
system by Veolia. Staff recommends approval of the contract amendment to ensure
that the City's billing database is made current with all customers, and that sewer
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City Council Staff Report
July 1, 2009 - Page 6
Amendment of Wastewater Services Agreement No. 4123
service charges to all applicable customers are assessed in accordance with the City's
established billing policies and procedures.
FISCAL IMPACT:
The first year fee will be established at a maximum, not to exceed amount of $120,158
in accordance with the recommended fees outlined above. The first year's fee includes
the one-time not to exceed cost of $20,000 to convert the City's COBOL billing
database to Veolia's billing database.
The annual fee will be subject to an annual Consumer Price Index (CPI) increase in
accordance with the current agreement.
The second and subsequent year fee will be established at a maximum, not to exceed
amount of$100,158 (unadjusted for CPI increase). The actual total annual fee incurred
should decrease in relation to the initial full-time effort required with billing database
auditing, as the database is updated and made current.
The initial customer billing database auditing, previously performed by the Finance
Department through a temporary employee work assignment last fiscal year, identified
changes to the database that recovered approximately $200,000 in sewer fund charges.
These recovered funds nearly offset the City's costs for Veolia's services in the first two
years. It is expected that a continuation of the auditing effort will continue to recover
additional sewer fund charges, and will offset future costs related to the customer billing
services.
Ultimately, the auditing effort will reduce to a point where no further auditing of the
database is required. At that point in time, perhaps within 5 years, on-going updating of
the customer database will ensure the database is kept current, which is included in the
"Data Management" service identified at a flat rate fee of $10,000 annually. Therefore,
the cost for customer billing services provided by Veolia at that time will be limited to the
data management fee of $10,000 and the fee for individual billings (assuming 150
individual billings) of$6,300 for a total fee of$16,300,
Sufficient funds are available in the Wastewater Fund, account 420-6800-43200
(contractual services). All services associated with the contract amendment are related
to the sanitary sewer system, and therefore, no local General Funds will be used.
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City Council Staff Report
July 1, 2009- Page 7
Amendment of Wastewater Services Agreement No. 4123
Submitted:
David J. Barakian Oeoffrdy Kiehl
Director of Public Works/City Engineer Director of Finance & Treasury
David H. Ready
ATTACHMENTS:
1. Contract Amendment
AMENDMENT NO. 9 TO THE AMENDED AND RESTATED AGREEMENT NO. 4123
WITH VEOLIA WEST OPERATING SERVICES, INC.
(FORMERLY VEOLIA WATER NORTH AMERICA-WEST, LLC)
WASTEWATER SERVICES (OPERATIONS AND MAINTENANCE)
The following articles of Agreement No. 4123 are hereby amended as follows:
1. Section 5.2 Veolia Scope of Services. — The following sub-section (bb) shall be added, as
follows:
(bb) Sewer Service Charge Customer Billing Services. Veolia shall provide sewer
service charge customer billing services as set forth on Schedule FF. City shall pay Veolia
for the cost of such services pursuant to the schedule of compensation identified on
Schedule FF.
2, Section 7.1 Fees. —The following sub-section (h) shall be added, as follows-
(h) Sewer Service Charge Customer Billing Services, The City shall pay Veolia for the cost
of Veolia providing sewer service charge customer billing services, as identified on Schedule
FF, pursuant to the schedule of compensation identified on Schedule FF.
3. List of Schedules —The following shall be identified on the list of Schedules-
FF Sewer Service Charge Customer Billing Services
4. Schedule FF, attached to and made a part of this Amendment No. 9, shall be added.
Purchase Order Number(s). 816110
Agreement Number: 4123
Original City Council Approval. June 21, 2006
Original M.O. Number: 7883
Original Contract Amount: $ 3,099,930.00
Amount of Previous Increase(s) $ 9,070.00
Amount of This Increase $ 120,158.00
Amended Total: $ 3,229,208.00
Account Number: 420-6800-43200
SIGNATURES ON LAST PAGE
Except as specifically amended by this Amendment No. 9, all terms and provisions of
Agreement No. 4123 shall remain in full force and effect.
ATTEST: CITY OF PALM SPRINGS,
a California charter city
By: By:
City Clerk City Manager
APPROVED AS TO FORM:
By:
City Attorney
VEOLIA WEST OPERATING SERVICES, INC.
CONTRACTOR: Check one:_Individual_Partnership X Corporation
Corporations require two notarized signatures: One signature must be from the Chairman of Board. President, or any Vice
President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief
Financial Officer).
By: By:
Notarized Signature of Chairman of Board, Notarized Signature Secretary,Asst Secretary,
President or any Vice President Treasurer, Asst treasurer or Chief Financial Officer
Name: Name.
Title: Title.
State of � State of
ll
County of Jss County of Iss
On before me, On before me, ,
personally appeared personally appeared
who proved to me on the basis of satisfactory evidence)to be who proved to me on the basis of satisfactory evidence)to be
the person(s) whose name(s) istare subscribed to the within the person(s) whose name(&) islare subscribed to the within
Instrument and acknowledged to me that he/she/they instrument and acknowledged to me that helshe/they
executed the same in hislher/their authorized capecity(ies), executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) person(s), or the entity upon behalf of which the person(s)
acted,executed the instrument acted,executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the I certify under PENALTY OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and State of California that the foregoing paragraph is true and
correct. correct.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal:
09
SCHEDULE FF
SEWER SERVICE CHARGE CUSTOMER BILLING SERVICES
Background
The City currently provides and coordinates all customer billing services for its approximately
27,000 sewer customers in-house with City employees. The City desires to out-source this
function to Veolia, whereby Veolia shall provide all services associated with sewer service
charge customer billing, as outlined herein this Schedule FF.
The goals to accomplish related to billing services and support relates to the following 5 primary
goals:
1. Provide improved sewer customer billing data collection and management;
2. Provide monthly billing preparation and mailing;
3. Coordinate annual billing data transmission for the Riverside County Tax Assessor;
A. Complete an audit of the City's existing sewer service charge billing database with all
available Building Department records to ensure the database is current with all new
properties connected to the sewer system, and is current with all prior changes to buildings
affecting the total number of fixture units;
5. Provide on-going auditing services of the City's existing sewer service charge billing
database to ensure all changes to sewer connections are captured and identified.
Services
Veolia shall provide the following services, effective July 1, 2009, and extending coincident with
the term, and any extended term, pursuant to all other applicable provisions of the Agreement
Billing Database Auditing — Review existing City records to identify all potential customers who
are discharging to the sewer system and not currently paying for sewer services. Review
existing City records to identify all existing customers who previously made modifications to their
plumbing systems (affecting the number of fixture units) and require a modification of the
existing sewer service charge fee. Update the sewer service charge billing database as
appropriate. For purposes of clarifying the difference between billing database auditing (as
identified here), and recording on-going changes in customer billing data (as identified in "Data
Management"), billing database auditing is defined as the identification of all new customers not
currently paying a sewer service charge fee, or all existing customers who have modified their
plumbing systems requiring a change to their current sewer service charge fee, pursuant to City
of Palm Springs Building Department permits issued prior to July 1, 2009.
City and Veolia shall determine a mutually agreeable method to monitor the efficiency of the
billing database auditing services provided by Veolia pursuant to this Schedule FF, using the
total number of new customers and/or new sewer service charges identified and added to the
City's billing database by the City's prior temporary staff person assigned this task during the
2008/2009 fiscal year. The mutually agreed method shall be used to adequately assess the
performance of this task, and to identify on-going billing database auditing needs beyond the
second year of services, commencing July 1, 2011. On or before June 30, 2010, Veolia shall
provide a schedule identifying an approximate time frame in which an audit of all the City's
records which affect sewer service charges for new or existing customers, pursuant to City of
Palm Springs Building Department permits issued prior to July 1, 2009, shall be completed.
FF- 1
j'p°
PaVment Delinquency Program -- Evaluate payment delinquency programs from other
municipalities; evaluate current state and/or federal law applicable to sanitary sewer services
and payment delinquency programs, identify and prepare an appropriate payment delinquency
program for the City of Palm Springs. These services shall be completed prior to June 30,
2010.
Data Management Provide daily customer billing data management off-site by Veolia's
customer care and information technology teams. Data management services to include
recording on-going changes in customer billing data, additions and deletions of customers to the
billing database, and preparation of electronic billing database reports required by the City. For
purposes of clarifying the difference between recording on-going changes in customer billing
data (as identified here), and billing database auditing (above), recording on-going changes in
customer billing data is defined as the identification of all new customers not currently paying a
sewer service charge fee, or all existing customers who have modified their plumbing systems
requiring a change to their current sewer service charge fee, pursuant to City of Palm Springs
Building Department permits issued after July 1, 2009.
Coordinate preparation of annual customer electronic billing database for submittal by the City
to the Riverside County Tax Assessor; confirm consistency between the Riverside County Tax
Roll and the City's billing database, and make any required changes to the billing database.
Provide final annual billing database indicating Riverside County Tax Assessor's Parcel Number
and corresponding sewer service charge to City by July 1, for City's transmittal to Riverside
County.
Monthly Billing — Coordinate all individual monthly billings for those customers not billed through
the annual Riverside County tax roll. Prepare, print and mail monthly sewer bills. Coordinate
delinquent accounts pursuant to an established payment delinquency program approved by the
City. Provide customer service for the City, respond to questions from customers related to
their sewer service charge, and coordinate with Veolia's operation and maintenance staff at the
City of Palm Springs wastewater treatment plant for customer service related issues.
Coordinate sewer service charge funds collection through direct mail by customers to a lock-box
address listed on the customer bill, or via on-line payment made available by Veolia's on-line
web-based payment service vendor. Facilitate monthly sewer service charge funds transfer to
the City pursuant to the City's Finance Department requirements.
Billing Database Conversion — Transfer all existing data from the City's current billing database
contained on its COBOL system to Veolia's billing database system (approximately 27,000
customers). Coordinate all data entry, system testing, and verification of billing database
conversion from City's COBOL system to Veolia's billing database system. Veolia's billing
database to be made available to City staff for viewing by remote connection (via on-line web-
based servers) mutually agreeable to City and Veolia.
Reporting and Data Transfer — Ve011a shall program and produce up to 10 routine billing
database reports as required by the City. The routine billing database reports shall be
transmitted electronically on a frequency required by the City, which shall be considered
included in the scope of work "Data Management" (above).
FF -2
Schedule of Compensation
Billinq Database Auditing — Compensation shall be established at $40.80 per hour, representing
an all inclusive rate (all expenses and benefits) for providing support personnel necessary to
perform all on-site and off-site billing database auditing. Compensation shall be at a fixed lump
sum fee of $84,864 (equivalent to 2,080 hours) applicable to the first and second year of
services, fiscal years 200912010 and 2010/2011 only.
During fiscal years 2010/2011 and 2011/2012, on or before September 1 of each year, Veolia
shall provide an accounting of actual hours worked for the period of July 1 to June 30 of the first
and second years of services, respectively. On or before September 1, 2011, the City shall
calculate the total number of actual hours worked for the period of July 1, 2009, through June
30, 2011. If the total number of actual hours worked is less than 4,160 the City shall be credited
the difference between 4,160 and the actual hours worked, with the difference being credited to
actual hours worked and invoiced to the City for the period commencing July 1, 2011. The City
shall not be liable for additional costs if the total number of actual hours worked for the period of
July 1, 2009, through June 30, 2011, is more than 4,160.
Commencing with the third year of service, July 1, 2011, billing database auditing shall be
provided on an as needed basis, at the all inclusive rate of $40.80 per hour, not to exceed
$84,864 annually (equivalent to 2,080 hours).
Payment Delinquency Program — Compensation shall be considered as included in the fixed
lump sum fee of$84,864 effective the first year of services (fiscal year 200912010).
Data Management—Compensation shall be at a fixed lump sum fee of$10,000.
Monthly Billing -- Compensation shall be at a fixed lump sum fee of $3.50 per month per
customer account. Customers choosing on-line payment will incur an additional $1.95 on-line
payment processing fee (or other fee in force and effect pursuant to Veolia's on-line payment
processing vendor). The on-line payment processing fee shall be payable by the customer at
the time the on-line payment is made.
Billing Database Conversion — Compensation shall be established at $160.00 per hour,
representing an all inclusive rate (all expenses and benefits) for providing Veolia information
technology and/or other personnel necessary to perform the billing database conversion.
Compensation shall not exceed $20,000 and is applicable to the first year of services, fiscal
year 2009/2010 only.
Reporting and Data Transfer — Compensation for preparation of up to 10 routine billing
database reports shall be considered as included in the Billing Database Conversion fees
payable the first year of services (fiscal year 2009/2010). Preparation of additional billing
database reports, or preparation of special reports required by the City, shall be established at
$150.00 per hour, representing an all inclusive rate (all expenses and benefits) for providing
Veolia programming and/or other personnel necessary to prepare additional or special billing
database reports as required by the City.
Annual Fee Adjustments — The hourly and/or fixed lump sum fees identified herein above shall
be subject to an annual adjustment in the same manner and subject to the same limitations for
Veolja's "O&M Fixed Component" pursuant to Section 7.2 of the Agreement.
FF-3
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First Year, Fiscal Year 2009/2010 — The maximum compensation payable to Veolia shall be
established at a maximum, not to exceed amount of $120,158.
Second Year, Fiscal Year 2010/2011 —The maximum compensation payable to Veolia shall be
established at a maximum, not to exceed amount of $100,158 (as may be adjusted by an
annual adjustment, if any, pursuant to Section 7.2 of the Agreement, effective July 1, 2010).
The maximum compensation for the Third Year, Fiscal Year 2011/2012, and beyond, payable to
Veolia, shall be established in the same manner as the Second Year, Fiscal Year 2010/2011,
FF -4
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