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relating to the essential terms and conditions of employment of the ACO, <br />including, but not limited to, hiring, firing, supervision and direction of the <br />employee(s). The Parties acknowledge and agree that Exhibit A may be <br />revised by the Parties upon mutual agreement from time to time without the <br />requirement of a formal amendment to this Agreement. <br />III. COMPENSATION. <br />a. Payment of Direct Costs. North Olmsted shall pay Bay Village for all <br />expenses incurred by Bay Village on North Olmsted's behalf. Such <br />expenses shall include, but are not limited to, salaries, health insurance <br />and fringe benefits of Employees who perform services for or otherwise <br />assist North Olmsted in carrying out its purpose, the costs of travel <br />conducted by the ACO, postage, mileage, and other actual expenses. <br />b. Calculation of Payment for Salaries and Fringe Benefits. Parties <br />agree to pay Employee(s) the salary set forth in the Bay Village AFSCME <br />Union contract for the ACO. North Olmsted's payment for services of the <br />ACO shall be based on the proportion of the salaries and fringe benefits of <br />the ACO expended on North Olmsted's functions, as determined in <br />accordance with time -sheets or other reasonable documentation prepared <br />by the ACO pursuant to instructions of Bay Village management <br />personnel and agreed to by North Olmsted and Bay Village. Expenses to <br />be reimbursed by North Olmsted to Bay Village will include all expenses <br />to maintain the ACO on the Bay Village's payroll including but not limited <br />to wages, employer pension, workers' compensation and medical costs. <br />The ACO shall remain an employee of Bay Village at all times for <br />employment-related purposes. <br />c. Additional Expenses. Any additional expenses incurred by Bay Village <br />to enable the ACO to complete his or her job duties and assignments will <br />be billed based on same pro rata share as computed above. The additional <br />expenses to be reimbursed shall include, but are not limited to: <br />a. Storage; <br />b. Equipment and/or car rental and maintenance; <br />c. Fuel; <br />d. Premiums for liability insurance directly attributable to the ACO <br />position;; <br />e. Legal expenses directly attributable to the ACO position; and <br />f. Other miscellaneous expenses to be itemized on the semi-annual <br />statement. <br />d. Time of Payment. Bay Village Finance Director shall compute semi- <br />annually the pro -rata share to invoice North Olmsted and submit for <br />2 <br />