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Join'l Powers Agreement — City of Fremont and City of San Leandro <br />Animal Shelter Services <br />PCj. 4. of 6 <br />2.1. Payments shall be made in equal monthly installments due and payable monthly within <br />thirty (30) days after receipt of billing from Fremont, less credits for revenue from fees <br />as provided in section 2. <br />2.2. Monthly billing will be computed as 1/12 of the annual Shelter budget, less credits <br />generated in the immediate prior.monthThe Fremont Animal Services Manager being <br />responsible for the accuracy of the charges. All billings are to be verified and approved <br />by the Fremont Police Department Business Manager. <br />2.3. The Shelter budget will be developed by computing all anticipated costs of operating the: <br />Shelter, including insurance costs referenced in section 7 of this Agreement, plus <br />directly related salaries and overhead plus indirect salaries and overhead. <br />2.3.1. Designated representatives of the parties shall meet and confer in good faith with <br />regard to the proposed annual operating budget: <br />.2.3.2. Fremont shall make an effort to accommodate the fiscal.concerns of San Leandro <br />for differential levels of service where such accommodation is practical without <br />additional burden to Fremont. If there is a dispute over the proposed annual. <br />operating budget, it shall be`resolved by binding arbitration under the American <br />ArbitrationAssociation Rules. -The parties of interest shall share the cost of the <br />arbitration. <br />2.4. The provisions for payment for service under this section provided shall be subject to <br />renegotiation after the completion of one full year of operation and thereafter subject to <br />renegotiation every two years. <br />3. Pro Rata Share of Land Utilization and Facility Construction Cost <br />3.1. San Leandro agrees to pay and Fremont agrees to accept an annual payment computed <br />on the pro rata basis of the return on the land utilized for shelter operations, computed in <br />Exhibit A to -be $5,499.00, based on the San Leandro human population to the <br />Participating City Population. <br />(San Leandro Population -Participating City Population) x $.5,499.00 Annual San <br />Leandro Land. Utilization Payment. <br />3.1. In addition, San Leandro agrees to pay and Fremont agrees to accept an annual facilities <br />rent rendered is the amount established on a pro rata basis of Fremont's cost of <br />construction amortized over a thirty (30) year peri odcomputed as $159,152.00, based on <br />the San Leandro human population to the Participating City Population. <br />(Sari. Leandro Population- Participating City Population) x $159,152.00 Annual San <br />Leadro Facility Construction Payment <br />3.';. The Annual San Leandro Land Utilization Payment and Annual San Leandro Facility <br />Construction Payment shall be recomputed annually to reflect the fluctuations in the <br />