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3. Fees and Charges. City agrees to compensate Authority <br />for the furnishing of said fire protection services at the rate of <br />the annualized cost of fire department services in South County Fire <br />divided by the number of alarms from the preceding year. The <br />annualized cost of the South County Fire Authority shall be <br />determined by adding the cost of personnel, maintenance, other <br />supplies and services, and capital outlay, and subtracting the <br />current budget for fire prevention operations. Costs for <br />construction of new fire stations or major remodels of existing fire <br />stations shall also be excluded from the total. For 1989/90 that <br />cost shall be One Thousand Four Hundred and 00/100 Dollars <br />($1,400.00) per first alarm response. This was obtained by dividing <br />the cost for personnel services, materials and supplies, other <br />services and charges, capital outlay, operating transfers out (lease <br />payment on vehicles and liability insurance), and subtracting the <br />current budget for fire prevention operations by 2955 (number of <br />alarms in 88/89 fiscal year), and rounding to the nearest ten <br />dollars. Each party to this agreement shall bear all other costs of <br />operation and insurance on its personnel and equipment. City shall <br />reimburse Authority in semi-annual payments after receipt of written <br />request for payment submitted by Authority. Redwood City agrees to <br />pay South County Fire interest on any amount that is not paid within <br />30 days of the invoice at the rate of nine percent (9%) per year. <br /> <br /> 3 <br /> <br /> <br />