Common use of Operations Fee Clause in Contracts

Operations Fee. Beginning on the date that is the first day of a calendar month after the Operational Date and every first day of the month thereafter during the Term, Motivate shall invoice the City monthly for its Operations Fee which shall consist of the following (a) $184.00 per Bicycle per month in connection with its performance of the Work for the previous month of operation (such Operations Fee to be calculated by multiplying $184.00 by the number of Bicycles in operation during such month as well as a pro rata portion of any incomplete month for the first month of operation of the System) and (b) $350.00 for each Bicycle wrap completed by Motivate during the previous month of operation as requested. Payment for the Operations Fee is solely derived from System Revenues and will be paid by the City in accordance with the Payment Priority Schedule. Motivate acknowledges and accepts the risk of a Cumulative Operations Loss. Under no circumstances will the City compensate Motivate for any such loss(es) except as follows: during the Term, any Cumulative Net Profit will go first toward rectifying any Cumulative Operations Loss. In such case, Motivate will invoice the City for that month’s Operations Fee plus any Cumulative Operations Loss up to the amount of the Cumulative Net Profit. For any month in which an Operations Fee is due and payable to Motivate in accordance with the Payment Priority Schedule, payment of such Operations Fee shall be made within thirty (30) days of receipt by the City of an invoice therefor from Motivate. If the Operations Fee due hereunder is not remitted within 45 days of receipt of the invoice therefor, the City shall pay interest to Motivate at a rate of 1.5% per month (18% per annum) on such past due amounts from such due date until the date such Operations Fee is remitted. Beginning with the date that is one (1) year after the Operational Date, the Operations Fee will be increased each calendar year by any cumulative increase over the previous calendar year in the National Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI- U) for the greater Portland area. In the event of a decrease of the CPI-U for the greater Portland area, the Operations Fee will remain the same as the previous year.

Operations Fee. Beginning on the date that is the first day of a calendar month after the Operational Date and every first day of the month thereafter during the Term, Motivate shall invoice the City monthly for its Operations Fee which shall consist of the following (a) $184.00 per Bicycle per month in connection with its performance of the Work for the previous month of operation (such Operations Fee to be calculated by multiplying $184.00 by a pro rata amount based on the number of Bicycles in operation during such month as a percentage of 600 Bicycles as well as a pro rata portion of any incomplete month for the first month of operation of the System) and (b) $350.00 for each Bicycle wrap completed by Motivate during the previous month of operation as requested). Payment for the Operations Fee is solely derived from System Revenues and will be paid by the City in accordance with the Payment Priority Schedule. Motivate acknowledges and accepts the risk of a Cumulative Operations Loss. Under no circumstances will the City compensate Motivate for any such loss(es) except as follows: during the Term, any Cumulative Net Profit will go first toward rectifying any Cumulative Operations Loss. In such case, Motivate will invoice the City for that month’s Operations Fee plus any Cumulative Operations Loss up to the amount of the Cumulative Net Profit. For any month in which an Operations Fee is due and payable to Motivate in accordance with the Payment Priority Schedule, payment of such Operations Fee shall be made within thirty (30) days of receipt by the City of an invoice therefor from Motivate. If the Operations Fee due hereunder is not remitted within 45 days of receipt of the invoice therefor, the City shall pay interest to Motivate at a rate of 1.5% per month (18% per annum) on such past due amounts from such due date until the date such Operations Fee is remitted. Beginning with the date that is one (1one(1) year after the Operational Date, the Operations Fee will be increased each calendar year by any cumulative increase over the previous calendar year in the National Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI- CPI-U) for the greater Portland area. In the event of a decrease of the CPI-CPI- U for the greater Portland area, the Operations Fee will remain the same as the previous year.