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for each applicable period, provided that the actual amount payable to the CITY under this <br />Agreement remains unchanged from the Fourth Amended Agreement. The parties agree that this <br />franchise fee is intended to compensate the CITY in the same amount and in the same manner as <br />in the Fourth Amended Agreement between the parties. This amount may be increased or <br />decreased by resolution of the City Council and, whenever said franchise fee is increased or <br />decreased by resolution of the City Council, CONTRACTOR shall be required to pass through to <br />all Customers one hundred (100%) percent of the amount of such increase or decrease, and CITY <br />shall pass through one hundred (100%) percent of the amount of such increase or decrease to its <br />Residential Curbside Service Units. Payments to the CITY of said franchise fee shall be made to <br />the CITY on a monthly basis and shall be due and payable on or before the last calendar day of <br />the following month. Accompanying each payment will be a listing of the Gross Receipts for that <br />corresponding month. CONTRACTOR shall, whenever requested to do so, make available such <br />records to the Executive Director at any reasonable time. Gross Receipts derived from charges <br />for residential extra cart service shall be exempt from franchise fee. <br />(b) Failure of CONTRACTOR to make any of the payments provided for in section <br />(a) above on or before the dates due will result in a penalty of ten (10%) percent per month to <br />CONTRACTOR. <br />(c) The parties agree that because of the unpredictability of costs required to develop <br />and implement an organic materials recycling program that meets the requirement of State law <br />under AB 1826, the City will institute an AB 1826 surcharge to create a fund from which to <br />compensate the CONTRACTOR for the actual services provided toward AB 1826 compliance. <br />This surcharge will be applied to gross receipts derived from all billed services, inclusive of <br />franchise fee, to commercial and roll -off customers, excluding recycling services. Beginning in <br />July 1, 2018, the AB 1826 surcharge will be 1.12%. The percentage amount will be adjusted to <br />2.64% effective July 1, 2019. After July 1, 2019, the organic material recycling program will be <br />evaluated to determine the most effective and efficient method to continue to fund and meet this <br />State mandate. CONTRACTOR agrees to collect and pay the City all revenues collected under <br />this provision on a monthly basis and shall be due and payable together with the franchise fee as <br />required under section 10(a). <br />11. AUTOMATED SYSTEM: <br />(a) -(f) Intentionally Omitted <br />(g) REPLACEMENT OF RESIDENTIAL AND COMMERCIAL COLLECTION <br />VEHICLES: When any collection vehicles used by CONTRACTOR to provide services <br />under this Agreement, have reached the end of their useful lives, the CONTRACTOR <br />will provide at its expense, new low -emission collection vehicle replacements which <br />meet or exceed the emission requirements of all Federal, State or Local air quality laws or <br />regulations. All residential collection vehicles will display the City's recycling logo. The <br />CONTRACTOR will also replace the Solid Waste collection and Recycling plastic carts <br />as described in Exhibit A with new carts as needed. All replacement vehicles and carts <br />provided shall be owned and operated by the CONTRACTOR. <br />25FL19 <br />