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and continuing through the last year of the third Renewal Term (if such Renewal Terms are <br />exercised), annually on or before September 1 the County shall deposit into the Capital Reserve <br />Account a total annual contribution of Four Hundred Thousand and No/100 Dollars <br />($400,000.00), as adjusted pursuant to paragraph (b) below. For the avoidance of doubt, there <br />shall be a total of eleven (11) annual contributions to the Capital Reserve Account made by the <br />County during the Initial Term. <br />(a) County Funds in the Capital Reserve Account will be available to fund Capital <br />Improvements, Repairs or Replacements and Verotown Improvements to the extent <br />reimbursement is authorized pursuant to Section 8.05 hereof, and up to Two Hundred <br />Thousand and No/100 Dollars ($200,000.00) in any Lease Year (subject to increase or <br />adjustment in Lease Year seven and beyond as set forth in subsection (b)) may be used to <br />fund Facility maintenance (the "Maintenance Allocation"). County Funds in the Capital <br />Reserve Account may also be used to reimburse Verotown for capital or maintenance <br />expenses (subject to the annual Maintenance Allocation limitation above) incurred by <br />Verotown in excess of the County contributions in any prior year (e.g., expenses incurred <br />by Verotown above Eight Hundred Thousand and No/100 Dollars ($800,000.00) in Lease <br />Year one may be applied to the Lease Year two contribution and beyond). Unused funds <br />from one Lease Year shall carry over to successive Lease Years (e.g., if Verotown incurs <br />expenses below Eight Hundred Thousand and No/100 Dollars ($800,000.00) in Lease <br />Year one, the remaining amount, and any portion thereof attributable to the Maintenance <br />Allocation, shall be applied to any capital or maintenance expenses incurred in Lease <br />Year two and beyond). <br />(b) Beginning in Lease Year seven and continuing through the last year of the <br />Third Renewal Term, the County's annual contribution to the Capital Reserve Fund shall <br />be annually adjusted by the Price Index Change, and fifty percent (50%) of such adjusted <br />portion shall be allocated towards maintenance expenses. In the event the Price Index <br />Change would cause a reduction in the County's annual contribution from the amount <br />required in the prior Lease Year, the amount of the annual contribution made by the <br />County will remain the same as the amount required in the prior Lease Year, but the <br />monetary amount by which the annual contribution should have been reduced will, until <br />eliminated, be credited against future increases in the County's annual contribution to the <br />Capital Reserve Account required by the Price Index Change. For example, if in Lease <br />Year seven the Price Index Change would result in a $20,000 reduction to the County's <br />annual contribution, the County will make the same $400,000 contribution to the Capital <br />Reserve Account as it made in Lease Year six; however, if in Lease Year eight, or any <br />subsequent Lease Year, the Price Index Change would result in a $40,000 increase, then <br />the County will first apply the $20,000 credit, resulting in a net increase of only $20,000 <br />in Lease Year eight. <br />Section 8.03. Disbursement of Capital Reserve Account Funds. County Funds on <br />deposit in the Capital Reserve Account will be disbursed by the Capital Reserve Account Agent <br />solely upon fulfillment of the following conditions: <br />18 <br />