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ATTACHMENT 3 City of Pleasanton Article 7.City Fees Franchise Agreement with Pleasanton Garbage Service 3069 ARTICLE 7. CITY FEES 3070 7.1 Franchise Fee 3071 In consideration of the exclusive rights provided Contractor herein,Contractor shall pay to City a Franchise 3072 Fee equaling four percent (4%) of its Gross Rate Revenues and Transfer Station Revenues, calculated as 3073 follows. An amount expected by the Parties to approximate one-half of one percent(0.5%)of Gross Rate 3074 Revenues and Transfer Station Revenues during the Term of this Agreement shall be prepaid by 3075 Contractor in accordance with the Rate Reserve Agreement between the Contractor and the City dated 3076 March 20, 2018 and attached hereto. On a monthly basis, the Franchise Fee amount shall equal three 3077 and one-half percent (3.5%) of the Gross Rate Revenues and Transfer Station Revenues collected by 3078 Contractor during the previous month for services provided under this Agreement. Contractor will bill 3079 Collection Customers and Persons delivering Solid Waste, Recyclable Materials and/or Organic Materials 3080 to the Transfer Station a Franchise Fee equal to such three and one-half percent (3.5%) amount, and 3081 Contractor will not be obligated to pay Franchise Fees beyond the amounts Contractor is required to pay 3082 by the second and third sentences in this Section 7.1, unless City adopts additional Franchise Fees. The 3083 Franchise Fee shall be paid to the City in accordance with procedures and terms and conditions described 3084 in Section 7.6. The Franchise Fee may be adjusted by City Council beyond what is described above by 3085 resolution. Franchise Fees, as described herein, and as they may be adjusted over time, shall be a pass- 3086 through cost. 3087 7.2 Vehicle Impact Mitigation Fee 3088 Contractor shall pay a Vehicle Impact Mitigation Fee to City each month.The amount of the Vehicle Impact "189 Mitigation Fee shall be zero dollars ($0) per month in Rate Period One and may be increased at the 90 discretion of the City. This fee, if applied, shall be paid in equal monthly installments. This fee is to 3091 reimburse the City for street maintenance costs incurred from Collection vehicles traveling on City streets. 3092 The Vehicle Impact Mitigation Fee shall be a pass-through cost. 3093 7.3 Rate Review Fee 3094 The City considers the Rate review process to be a complex process,requiring a contract with a consultant 3095 in order to provide the best review possible of the Contractor Rate adjustment application resulting in 3096 adjustment of Rates consistent with the terms of this Agreement. Two types of Rate reviews may be 3097 conducted (an indexed-based adjustment and a cost-based adjustment as described in Article 8), 3098 depending on the Rate Period. Contractor shall pay a Rate Review Fee to City each month. The amount 3099 of the Rate Review Fee shall be zero dollars ($0) per month in Rate Period One and may be increased at 3100 the discretion of the City. This fee, if applied, shall be paid in equal monthly installments. This fee shall 3101 be a pass-through cost. 3102 7.4 Procurement Reimbursement 3103 Contractor shall reimburse the City for its costs related to the procurement and negotiation of this 3104 Agreement in the amount of eighty thousand dollars ($80,000), due immediately upon execution of this 3105 Agreement.This amount shall be paid by Contractor and may not be recovered through Rates charged to 3106 Customers. City of Pleasanton Page 89 March 8, 2018