Page 192 - Sustainable Cities and Communities Design Handbook

166 Sustainable Cities and Communities Design Handbook

Before taking action to impose or increase a user fee, the govern-
mental agency must conduct at least one public hearing on the proposed
fee. Notice of the public hearing(s) must be given (1) by mail not less than
14 days before the meeting to any interested party who has requested
notice of the meeting, and (2) by publication not less than 10 days before
the meeting in a newspaper of general circulation in the jurisdiction of the
governmental agency. All data in support of the proposed user fee must
also be available for public inspection at least 10 days preceding the
meeting. All costs incurred by the governmental agency in providing the
required notice and holding the public hearing(s) may be recovered from
the fees to be charged.
Action to impose or increase a user fee must be taken by ordinance or
resolution by the governing board of the governmental agency. The
established fee may not exceed the estimated amount required to provide
the service for which the fee is charged and a reasonable rate of return on
investment.
6. Require that any revenues in excess of the actual cost and a reasonable
rate of return on investment, be applied by the governmental agency to
either reduce any indebtedness incurred by the private entity with respect
to the project, be paid into a reserve account to offset future operation
costs, be paid into the appropriate government account, be used to reduce
the user fee or service charge creating the excess, or a combination of
these sources.
7. Require the private entity to maintain the facility in good operating
condition at all times, including the time the facility reverts to the
governmental agency.
8. Preparation by the private entity of an annual audited report accounting
for the income received and expenses to operate the facility.
9. Provision for a buyout of the private entity by the governmental agency in
the event of termination or default before the expiration of the term of the
Power Purchase Agreement.
10. Provision for appropriate indemnity promises between the governmental
agency and private entity.
11. Provision requiring the private entity to maintain insurance with those
coverages and in those amounts that the governmental agency deems
appropriate. A sample insurance provision is as follows:
A. Contractor’s Insurance. The Contractor shall provide and maintain
insurance, at the Contractor’s own cost and expense, against all claims
or losses that may arise from or in connection with the performance of
services by the Contractor. The obligation to maintain insurance shall
not in any way affect the indemnity provided in or by Section __.
District’s acceptance of Contractor’s insurance hereunder shall not in
any way act as a limitation on the extent of Contractor’s liability.