RES 97131 - Laserfiche WebLink

1 EXHIBIT "B" ..-- 2 1. Interest shall begin to accrue on all items described in Sections 4 and 5, 3 beginning October 1, 1997. Except as specified in Paragraph 18 of 4 the Agreement, the first payment of $3,000,000 shall be exempt from interest 5 accrual. 6 2. Interest shall be defined as the percent change in the Bureau of Labor Statistics 7 Consumer Price Index-All Urban Consumers (CPI-U) for All Items for San 8 Francisco-Oakland-San Jose, California. For the Base Period 1982-84, the CPI- 9 U=100. Interest shall be rounded to the nearest 0.01%. 10 3. The applied interest shall be the percent change in the CPI-U between twc~ hPriods 11 of time, such as the following example for the period from July 1996 to June 1997: 12 July 1996, CPI-U = 155.9 13 June 1997, CPI-U = 160.6 14 Percent Increase = 160.6 - 155.9 x 100 = 3.01% 15 155.9 16 4. LAVWMA shall pay interest on the sum of $3,000,000 as defined by Paragraph 18 17 of the Agreement. Interest shall accrue on the remaining $7,000,000 capital buy-in "^ 18 fee and capital costs (see Paragraph 5.1). Interest on both sums shall begin 19 effective retroactively to October 1, 1997. . 20 5. Once the initial $3,000,000 fee and capital costs are paid, interest shall accrue only 21 on the remaining principal of the $10,000,000 capital buy-in fee. 22 6. An example Payment Schedule for the buy-in fee and capital costs are shown in 23 Table 1, which assumes the initial $3,000,000 and capital cost payment is received 24 December 31, 1999, the change in CPI-U ranges from 3.00 to 4.00%, aad 25 LAVWMA's share of capital costs is $75,000, and the Local Agency Investment 26 Fund Interest rate is 5.5%. The annual payment is calculated by using the 27 mortgage payment method, using an adjustable interest rate. The following 28 formula is used to determine the annual payment: 29 Payment =Principal X Interest Rate 30 1 - 1/(1 + Interest Rate)" 31 where n =term in years. 32 C:IWPDOCSILAVWMAWGMTDFr4.DOC ra rev. o per point mtng o 1 cto er ,