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<br />3. The specified apparatus shall be incorporated into the OCFA's established vehicle rotation <br />and replacement programs (excluding the Mass Decon Unit), preventive maintenance programs, and will <br />be enrolled in OCFA's vehicle insurance program. <br /> <br />4. Each fiscal year, commencing with fiscal year 2011/12, CITY shall pay to OCFA the CITY's <br />share of the OCFA's vehicle replacement program. For fiscal year 2011/12, the annualized amount is <br />$475,056. The prorated monthly amount of $39,588 is included in the costs of service set out in section <br />VII below and is subject to annual increases. <br /> <br />5. For purposes of the vehicle replacement program, the following useful life assumptions apply: <br /> <br />Useful Life: <br />Suburban - 5 years or 120,000 miles <br />Engine - 15 years or 120,000 miles <br />Truck -17 years or 120,000 miles <br />Paramedic Van - 4 years or 120,000 miles <br /> <br />6. Upon the effective date of any termination, the value of the funds paid by the CITY as its share <br />of the vehicle replacement program shall be returned to the CITY in an amount no greater than the funds <br />paid by the CITY, less actual costs incurred by the OCFA for the repair, maintenance, or replacement of <br />the specified apparatus. The value, if positive, will be returned to the City in the form of returned <br />apparatus, a refund of payments, or a combination of both. <br /> <br />VI. LEASE OF FIRE STATIONS: <br /> <br />1. CITY shall lease to OCFA and OCFA shall lease from CITY the fire stations listed in Section III <br />pursuant to the leases set out on Attachment C. This lease will have the same term as this Agreement <br />and the rent will be one dollar ($1) per year per station. Upon the effective date of any termination, <br />OCFA's lease-interest in the CITY's fire stations will terminate and the fire station facilities will be returned <br />to CITY. <br /> <br />2. CITY will also provide OCFA with a $15,000 revolving maintenance expense account per fire <br />station for appliance repair/replacement and other minor station repairs and improvements pursuant to <br />the JPA Agreement. This amount is included in the costs of service set out in section VII below. <br /> <br />VII. COST FOR SERVICE: Except as otherwise provided in this Agreement, all provisions in the JPA <br />Agreement regarding the calculation and payment of Service Charges shall apply. To the extent of any <br />conflict between the JPA Agreement and this Agreement, the terms set forth in this Agreement shall <br />control with regard to the CITY. <br /> <br />1. CITY shall pay to OCFA the sum of $6,693,634 for Fire and Emergency Medical Services <br />under this Agreement from April 20, 2012 until June 30, 2012. Payment shall be made as follows: <br /> <br />a. <br />b. <br />c. <br /> <br />by April 20, 2012- <br />by May 1, 2012 - <br />by June 1,2012- <br /> <br />$1,100,422 <br />$2,796,606 <br />$2,796,606 <br /> <br />2. In a letter dated November 7, 2011 from the CITY Manager to the OCFA Fire Chief, the CITY <br />requested a proposal from OCFA for the possible provision of Fire Protection and Emergency Medical <br />Services. The amount paid by the CITY for the proposal ($75,000) has been applied to reduce the April <br />20,2012 payment above from $1,175,422 to $1,100,422. <br /> <br />3. Except as otherwise expressly provided in this Agreement, all sums due to AUTHORITY from <br />CITY shall be paid at the beginning of each calendar month, in advance. <br /> <br />4. On or before September 30, 2012, CITY shall either (a) obtain a bond, in form and substance <br />acceptable to OCF A in its sole and absolute discretion, from a bonding company or insurer acceptable to <br />OCFA in its sole and absolute discretion, in the amount of one full monthly payment for services rendered <br /> <br />Page 4 <br /> <br />828042.3 <br />