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5.2 Compensation Payment Schedule <br />The contractor shall bill the City monthly on a per account basis for services provided. <br />Within 60 days of the start of the Contract, the contractor shall coordinate with the City's <br />Finance Department to establish mutually acceptable balling forms. The City will retain <br />full auditing rights of contractor's accounting records as they pertain to the City's <br />contract. <br />The City recognizes that one of the primary costs of thc; contractor to fulfill this contract <br />is the price of vehicle fuel which is outside the control of the contractor. Proposal should <br />specify any provision for fuel adjustment the Contractar has based the proposal on. The <br />City is willing to negotiate an "energy shock" clause based upon'`using the following US <br />Energy Information Administration (USEIA) Index: <br />http://tonto.eia.doe.g_ov/oog/info/wohdp/diesel.asp <br />5.3 Failure to Perform, Remedies, Termination <br />The City expects high levels of customer service and collection service provisions. <br />Performance failures will be discouraged, to the extent possible, through penalties for <br />certain infractions and through contract default for more serious lapses in service <br />provisions. Section 5.4 details default provisions and procedures. <br />5.4 Penalties <br />Penalties may be levied if documented in an incident report presented by the City to the <br />contractor. Penalties will be deducted from the monthly payment made by the City o the <br />contractor. Disagreements will be subject to the review and resolution procedures <br />provided in the contract. <br />Action or Omission <br />Commencement of residental°collection <br />prior to 7:00 a.m. or continuance after 7:00 <br />p.m. except as expressly permitted. <br />Penalties <br />$100.00 :per incident (each truck on each <br />route is a separate incident). <br />Failure to collect spilled materials. <br />Leakage from contractor vehicles or <br />vehicle contents. <br />Twice the cost of cleanup to the City plus <br />$1,000 each incident <br />$500 each vehicle, each inspection. <br />Failure to collect any and all garbage, $250.00 each incident. <br />recyclable materials, and yard debris within <br />one business day after notification. <br />Collection from residential premises on $50.00 per structure. <br />other than the day specified excluding <br />inclement weather or holiday schedule. <br />Collection as garbage of source-separated $1,000.00 per incident. <br />6 <br />