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to work a set number of hours, the parties agree to meet in good faith to negotiate the number <br />of hours the Building Official shall work at each respective City. <br />e. Building Official Not Available Due to Illness/Vacation. St. Francis agrees to provide <br />Ramsey with a replacement Building Official to provide services under this agreement if the <br />regular Building Official is not available due to illness or vacation. <br />3. TERM. The term of this Agreement will continue until terminated pursuant to paragraph 10. <br />4. COMPENSATION. <br />a. Hourly Rate. The compensation to be paid by Ramsey to St. Francis for the Building <br />Official's services as defined herein shall be on an hourly basis equivalent to the hourly rate <br />paid to Building Official by St. Francis plus one dollar ($1) per hour to cover St. Francis <br />administrative costs. <br />b. Health Insurance. Ramsey agrees to pay a flat cent per hour equivalent to the contribution <br />and increase in the health insurance and disability/life insurance payments that St. Francis <br />provides to the Building Official divided by 174. <br />By way of illustration only, if the City of St. Francis increase its contribution toward the <br />Building Official's health insurance on January 1, 2013 from $650/month to $675 per month, <br />that will increase the hourly rate charged to Ramsey by ($25 divided by 174) fourteen cents <br />($.14) per hour. <br />c. Mileage. Ramsey agrees to reimburse the City of St. Francis for mileage incurred by the <br />Building Official in performing the duties noted in this Agreement for Ramsey, including <br />mileage from the City of St. Francis City Hall to any inspection or meeting point. This <br />amount will be established at the maximum rate permitted as a nontaxable expense by the <br />IRS. <br />d. Unemployment. <br />i. In the event that the Building Official becomes eligible for unemployment benefits as a <br />result of Ramsey's termination of services pursuant to paragraph 10 of this Agreement, <br />Ramsey will pay an amount to St. Francis equal to the St. Francis unemployment <br />obligation divided by that percent of the Building Official's hours spent performing <br />services for Ramsey in the prior full calendar quarter. <br />By way of illustration only, in the event that the Building Official had performed an <br />average of ten (10) hours per week for Ramsey and thirty (30) hours per week for St. <br />Francis in the prior calendar quarter, Ramsey would be required to pay St. Francis for <br />25% of the amount that St. Francis is required to pay the department of economic security <br />for the Building Official's unemployment compensation. <br />2 <br />