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6. PAYMENT AND DAMAGES 6.01. Term of Contract Term means March 1, 2024 through December 31, 2026. The Clean Up Day will be held the fourth Saturday in April each year of the contract (April 27, 2024, April 26, 2025 and April 25, 2026). 6.02. Compensation for Services The City agrees to pay the Contractor for operating a Clean Up Day provided to the City as described in this proposal, and made part of an executed contract. 6.03 Resident Payment The City will subsidize one-third of the disposal costs for items listed in 3.05 and on Attachment A. Residents that utilize the Clean Up Day shall be responsible for payment of the remaining two-thirds of the disposal cost. The Contractor will include in its response to this quote a description of how it will collect information from residents, charge them and submit documentation for reimbursement. Contractor will include a copy of sample forms with its response. 6.04. Method of Payment The Contractor shall submit itemized bills for material collected and services provided. Bills submitted shall be paid in the same manner as other claims made to the City. Payment to the Contractor will not be released unless the required annual report has been filed with the City and approved by City staff. 6.05 Liquidated Damages The Contractor shall agree, in addition to any other remedies available to the City, that the City may withhold payment from the Contractor in the amounts specified below as liquidated damages for failure of the Contractor to fulfill its obligations. The following acts or omissions shall be considered a breach of the Agreement: a) Failure to clean up before the end of the Clean Up Day material spilled by Contractor as determined by City staff. $500 each incident b) Failure to segregate from other materials, store and deliver to an appropriate disposal facility material dropped off at the Clean Up Day. $500 each incident 10 of 15 CUD 2024-26 Specs.docx Qbhf!274!pg!335