Definition of Operation and Maintenance Erpenres

Operation and Maintenance Erpenres means all reasonable and necessary current expenses of the City, paid or accrued, for operating, maintaining and repairing the System, including without limitation legal and overhead expenses of the City directly related to the administration of the System, insurance premiums, audits, charges of depository banks and paying agents, professional services, salaries and administrative expenses, labor and the cost of materials and supplies for current operation; provided however, that there shall be excluded from Operation and Maintenance Expenses any allowance for depreciation, payments in lieu of taxes or franchise fees, legal liabilities not based on contract, expenses incurred in connection with Capital Improvements, payments due in connection with any bonds or other obligations issued to provide Capital Improvements, and charges for the accumulation of reserves.