Agenda - Council - 06/22/2010 - Laserfiche WebLink

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7.04 Reconciliation After Audit. All invoices and related records are subject to audit by the City of Ramsey. If, as a result of further reviews, corrections or audits, it is determined that the City has overpaid the Contractor, the Contractor shall, within thirty (30) calendar days of demand, refund to the City the amount of the overpayment. The City may retain the amount of any overpayment arising out of a previous funding agreement with the Contractor from funds otherwise payable under the agreement. Within thirty (30) calendar days of completion of an audit, the City shall make a final payment to the Contractor of the amount of any unpaid balance in accordance with the provisions of the agreement. 7.05 Prompt Payment of Subcontractors. Consistent with Minnesota Statutes, section 473 .142( t), if any of the services under the agreement are subcontracted, the Contractor shall pay any such subcontractor within ten days of the Contractor's receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor shall not, by reason of said payments, be relieved from responsibility for that portion of the services provided by the subcontractor. The Contractor shall pay interest at the rate of 1'l2 percent per month or part thereof to a subcontractor on any undisputed amount not paid in accordance with the preceding paragraph. The minimum monthly interest payment for an unpaid balance of$100 or more is $10. For an unpaid balance of less than $100, the Contractor shall pay the actual interest due to the subcontractor. In accordance with Minnesota Statutes, section 473.142(t), a subcontractor who prevails in a civil action to collect interest penalties from the Contractor must be awarded its costs and disbursements, including attorney fees, incurred in bringing the action. Execution of the agreement constitutes the Contractor 's consent to such award in the event a subcontractor prevails in such an action. 7.06 Fuel Cost Surcharge or Credit - As described in this section, a fuel cost surcharge or fuel cost credit shall be applied to the amounts owed the Contractor under this agreement for the transit service to be provided under this agreement which will utilize Commuter Coach buses. For the purposes of this section, the term "Average Fuel Cost" means the monthly average price (in cents per gallon) for diesel fuel (all types) for the Midwest Area (P ADD 2) for the applicable calendar month, as reported by the federal Energy Information Administration. 1 If the referenced data ceases to be published, the contracting parties shall agree upon a reasonably comparable substitute measure of "Average Fuel Cost." The parties agree that the fuel cost surcharge or credit is based on a presumed six miles per gallon fuel consumption for the MCI Coach buses used in providing service under this agreement. This presumption is not subject to adjustment, notwithstanding actual experience during the term of this agreement. a. Eligible Service Miles. The fuel cost surcharge or fuel cost credit provided for in this section is designed to partially mitigate the risk to the Contractor of changing fuel prices during the term of this contract. The fuel cost surcharge or fuel cost credit shall be applied to the 1 (Note: this data is currently reported at the following website: http;//tonto.eia.doe.gov/dnav/pet/pet-pri_gnd_a_epd2d-pte _ cpgal_ m.htm) 20