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3, COMPENSATION TO CITY <br />Vendor agrees to pay, and City agrees to accept as payment for its granting the Light to <br />install and maintain vending operations on City -owned property, Six Hundred Dollars <br />($600.00) per month payable to the City on the 5"' day of each month. <br />4. RESPONSIBILITY FOR VENDING MACHINES <br />Vendor will provide vending machines on the Premises as mutually agreed upon between <br />Vendor and the Executive 'Director throughout the tenn of this Agreement. All vending <br />machines shall at all times remain the property of Vendor. Vendor will repair and <br />maintain the vending machines and agrees to keep them in good working order and <br />condition at all times. Vendor shall have the exclusive right and obligation to repair, <br />replace, or remove any and all vending machines. City shall not replace, relocate, move <br />or remove any vending machines. Notwithstanding the foregoing, City agrees to use <br />reasonable efforts to keep the vending machines in clean and sanitary condition, wholly <br />free of all advertising at all times. In addition, City agrees to promptly notify Vendor of <br />any need for repair or service, and to fully cooperate with Vendor in effecting such <br />necessary repairs or service. City shall bear no responsibility whatsoever for any <br />vandalism or theft occurring with regard to Vendor's equipment and vending machines. <br />Further, Vendor shall be responsible for the costs of repair or replacement necessitated by <br />vandalism, graffiti or theft. Should vandalism occur to the same vending machine for a <br />second time, City may elect one to either relocate or remove said vending machine. <br />Vendor and the Executive Director shall mutually agree on all locations to relocate <br />vending machines if needed. <br />5. VEND RATES AND COMMISSION <br />Current vending rates and commission rates shall be as approved in writing from time to <br />time by the Executive Director. The current pricing is attached hereto as Exhibit A <br />"Pricing". Vendor shall maintain all vending machines stocked with at least 50% healthy <br />foods, such as such as baked chips, fruit, pretzels, granola, nuts, bottled water, tow fat <br />milk products, sports drinks and natural fruit juice drinks in compliance with the City's <br />policy regarding healthy snacks, healthy eating and active living (City of Santa Ana <br />Resolution No. 2006-053 and Resolution No. 2011-003). <br />6. VENDING MACHINE PLACEMENT <br />A detailed list reflecting the proposed placement of all vending machines and equipment <br />is set forth in the "Existing Sites" list, (attached hereto as Exhibit A —Page 2.). Vendor <br />shall provide vending machines at all listed locations. Additional vending machines may <br />periodically be added to the list subject to prior written approval of the Executive <br />Director. Should the proposed locations of the vending machines be found not to be in <br />the best interest of Vendor or the City, both parties must mutually agree as to whether or <br />not to relocate the vending machines. If the Executive Director agrees that relocation is <br />necessary, he/she has the authority to exercise discretion as to the most appropriate new <br />