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EAST BAY REGIONAL COMMUNICATIONS SYSTEM AUTHORITY <br />PROJECT OPERATING AGREEMENT <br />This PROJECT OPERATING AGREEMENT (the "Operating Agreement "), made and <br />entered into as of , 2010, (the "Effective Date "), by and between the East <br />Bay Regional Communications System Authority, a joint exercise of powers authority organized <br />and existing under and by virtue of the laws of the State of California (the "Authority"), and the <br />public agency set forth on the signature page hereof ( "User "). <br />WITNESSETH: <br />WHEREAS, the Authority is a joint exercise of powers authority duly organized and <br />existing under the provisions of Articles 1 through 4 (commencing with Section 6500) of <br />Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act "), <br />formed by the Members pursuant to a Joint Exercise of Powers Agreement dated as of <br />September 11, 2007 (the "JPA Agreement "), and is authorized pursuant to Article 4 of the Act <br />(the "Bond Law ") to borrow money for the purpose of paying the cost of public capital <br />improvements within the State of California, including a P25 compliant or equivalent <br />communications system serving Alameda and Contra Costa Counties and individual political <br />jurisdictions therein (the "Project "); and <br />WHEREAS, User and the Authority propose to enter into this Operating Agreement, <br />whereby the Authority will own and operate the Project for the benefit of the User, and the User <br />will pay, pursuant to user fees, the cost of the Project, consisting of a buy -in cost based on the <br />number of radios in use in the Project ( "Initial Payments "), the cost of the Project (the "Service <br />Payments ") and the cost of its annual operation (the "Operating Payments "), (Service Payments <br />and Operating Payments referred to herein collectively as the "User Payments "); and <br />WHEREAS, the Authority will issue its Revenue Bonds (the "Bonds "), pursuant to its <br />duly adopted resolution ( "Resolution "), for the purpose of providing money to acquire the <br />Project; and <br />WHEREAS, the Bonds are to be secured by a pledge of and first lien on the User <br />Payments to the extent received by the Authority from the Users pursuant to Operating <br />Agreements executed by each of them (the "Revenues "), which Revenues are anticipated to be <br />sufficient in time and amount to pay the principal of and interest on the Bonds; and <br />WHEREAS, this Operating Agreement is intended to establish a means of providing the <br />Revenues and ensuring the sound operation of the Project, and is not in itself an approval of the <br />Project. <br />NOW, THEREFORE, for and in consideration of the premises and the material covenants <br />hereinafter contained, the undersigned User and the Authority agree as follows: <br />Project Operating Agreement 090910 <br />- 1 - <br />ATTACHMENT A <br />