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July 15, 2024 Page 43 City of San Leandro/ACI Franchise Agreement 7.2 CONTRACT ADMINISTRATION REIMBURSEMENT 1702 The Contractor shall pay a Contract Administration Reimbursement to City each quarter. During the Term 1703 of this Agreement and any extension of it, Contractor shall remit to the City on a quarterly basis one-1704 fourth (1/4th) of the annual amount of the Contract Administration Reimbursement. City shall use the 1705 Contract Administration Reimbursement to offset expenses including staffing costs related to City 1706 programs, pilot studies, education and outreach campaigns, technical assistance to Customers, reporting, 1707 compliance, provision of special Containers, or other activities involved in compliance with regulations 1708 governing the treatment of Discarded Materials (including but not limited to AB 939 and SB 1383). The 1709 City shall retain the sole right to set priorities for the use of its Contract Administration Reimbursement. 1710 This reimbursement shall be considered an allowable cost of business not subject to profit mark-up and 1711 included in the adjustment of Rates as described in Exhibit E. 1712 7.3 VEHICLE IMPACT REIMBURSEMENT 1713 The Contractor shall pay a Vehicle Impact Reimbursement to City each quarter. Contractor shall remit to 1714 the City on a quarterly basis one-fourth (1/4th) of the annual amount of the Vehicle Impact 1715 Reimbursement. This reimbursement is to reimburse the City for street and sidewalk maintenance costs 1716 incurred from Collection vehicles operating on City streets. This fee shall be considered an allowable cost 1717 of business not subject to profit mark-up and included in the adjustment of Rates as described in Exhibit 1718 E. 1719 7.4 OTHER REIMBURSEMENTS 1720 The City shall reserve the right to set "other" reimbursements, as it deems necessary. The amount, time 1721 and method of payment, and adjustment process will be set in a manner similar to that for other 1722 reimbursements described in this Article. 1723 7.5 ADJUSTMENT TO REIMBURSEMENTS 1724 City may set other reimbursements or adjust the reimbursements established in this Article (other than 1725 the Franchise Fee) from time-to-time during the Term of this Agreement and such other reimbursements 1726 and adjustments shall be considered an allowable cost of business not subject to profit mark-up and 1727 included in the adjustment of Rates as described in Exhibit E. 1728 7.6 PAYMENT SCHEDULE AND LATE FEES 1729 Within twenty-five (25) calendar days of the end of each calendar quarter, during the Term of this 1730 Agreement, Contractor shall remit to City all reimbursements as described in this Article. Such 1731 reimbursements shall be remitted to City and sent or delivered to the City Contract Manager. If such 1732 remittance is not paid to City on or before the twenty-fifth (25th) calendar day following the end of a 1733 calendar quarter, all reimbursements due shall be subject to a delinquency penalty of two percent (2%), 1734 or maximum permitted by law, which attaches on the first (1st) day of delinquency. The delinquency 1735 penalty shall be increased an additional two percent (2%), or maximum permitted by law, for each 1736 additional month the payment remains delinquent. 1737 Each quarterly remittance to City shall be accompanied by a statement listing the amount of each 1738 reimbursement paid and the calculation of each reimbursement. City Contract Manager may, at any time 1739 during the Term, request a detailed calculation of Gross Receipts which may include, but is not necessarily 1740 Docusign Envelope ID: 908A450D-1F36-4C09-B8A4-C1D639B5A05A