RES 98021 - Laserfiche WebLink

I EXHIBIT "B" 2 1. Interest shall begin to accrue on all i items described in Sections 4 and 5, 3 beginning October 1, 1997. Except as specified in Paragraph 18 of the 4 Agreement, the first payment of $3,000,000 shall be exempt from interest accrual. 5 2. Interest shall be defined as the percent change-in the Bureau of Labor,Statistics 6 'Consumer Price Index-All Urban Consumers (CPI-U) for All Items for San 7 Francisco-Oakland-San Jose, C~lifomia. For the Base Period 1982-84,:the CPI- 8 U=100. Interest shall be rounded to the nearest 0.01%. 9 3. The applied interest shall be the percent change in the CPI-U between two periods ~0 of time, such as the following example for the period from July 1996 to June 1997: [1 July 1996, CPI-U = 155.9 :2 June 1997, CPI-U -- 160.6 3 Percent Increase = 160.6 - 155.9 x 100 = 3.01% 4 155.9 5 4. LAVWMA shall pay interest on the sum of $3,000,000 as defined by Paragraph 18 6 of the Agreement. Interest shall accrue on the remaining $7,000,000 capital buy-in 7 fee and capital costs (see Paragraph 5.1). Interest on both sums shall begin 8 effective retroactively to October 1, 1997. 9 5. Once the initial $3,000,000 fee and capital costs are paid, interest shall accrue only ~0 on the remaining principal of the $10,000,000 capital buy-in fee. '.1. 6. An example Payment Schedule for the buy-in fee and capital costs are shown in 2 Table 1, which assumes the initial $3,000,000 and capital cost payment is received '.3 December 31, !999, the change in CPI-U ranges from 3.00 to 4.00%, :4 LAVWMA's share of capital costs is $75,000, and the Local Agency Investment :5 Fund Interest rate is 5.5%. The annual payment is calculated by using the 6 mortgage payment method, using an adjustable interest rate. The following 7 formula is used to determine the annual payment: 8 Payment = Principal X Interest Rate 9 1 - 1/(1 + Interest Rate)n · 0 where n = term in years. 1 C:\WPDOCS\LAVWMA~AGMTDFT8.FNL FI~DA/LAVWMA 199~7-Agreement, 20 ~ebruary 18. 1998