Agmt 2000 Alameda County Industries Inc ACI

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performed. The auditor shall be approved by the City Representative. Contractor shall bear the cost of such audit. The auditor shall also verify that all sums collected and remitted to the City during the original term hereof as compensation are accurate and correct and that all financial records are in full accordance with Article 8 hereof. 2. The City Representative or authorized agent of the City shall complete and submit a performance review of Contractor's compliance with the terms of this Agreement within twelve (12) months of the expiration of the original term hereof and based upon the standards set forth in Article 9.8. Such review shall certify that the Contractor has complied in all material respects with all the provisions of the Agreement and has met in all material respects the performance standards set forth herein. To the extent that the City incurs any costs for this performance review, Contractor shall reimburse the City. 3. The City Representative shall analyze the rates for similar Franchise Services in Hayward, Castro Valley, Alameda City, Oakland and the Oro Loma Sanitary District to determine the comparability of such rates by Customer Class and type of service provided, with the Contractor rates in effect twelve (12) months prior to the expiration of the original term hereof as provided in Exhibit A - "Rate Com orison Process." 4. Contractor shall adjust its rates effective with beginning of the ten-year renewal as in accordance with the results of the comparability analysis performed pursuant to Exhibit A -Rate Comparison Process" and Article 6 hereof. Upon satisfactory certification of the results of the financial audit, performance review and rate adjustment, and based upon Substantial Evidence regarding those matters the Council shall within six (6) months of the expiration of the original term extend the term hereof by ten years. 3.4 FRANCHISE FEE A. Amount. In consideration of the Franchise provided in this Agreement, the Contractor shall pay to the City a Franchise fee of ten percent (10°~) of all the gross revenues derived from services rendered by the Contractor for providing Franchise Services. Gross revenues shall mean all revenues, less Customer bad debts, derived by the Contractor for all services provided in the City to Customers including but not limited to Rates, Special Charges for Carts, Bins, Debris Boxes and compactors and other Special Charges. B. Payment. Franchise fees shall be computed and paid on the basis of gross revenues each calendar quarter of the fiscal year. The Contractor shall remit the Franchise Fee in accordance with Article 7.3. If the Contractor fails to pay the entire amount of compensation due the City through error or otherwise, the difference due the City shall be paid by the Contractor within thirty (30) days from discovery of the error or determination of the correct amount In addition, the Contractor shall pay interest on any underpayment atthe highest rate allowed bylaw. Any overpaymentto the City through error or otherwise shall be offset againstthe next payment due from the Contractor. Acceptance by the City of any payment due under this section shall not be deemed to be a waiver by the City of any breach of this Agreement, nor shall the acceptance by the City ~:~~~~~t~~~z.~a ovoiioo Page 12 of 59