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False Alarm Management-Outsource Services <br />Contract Agreement Page 16 of 18 <br /> <br />B.3 Revenue Share Payment Process <br />CITY and CONTRACTOR agree as follows: <br />A. All false alarm related fee collections from any payment method, including but not limited <br />to bank lockbox and online credit card, shall be deposited, as soon as practical, in a False <br />Alarm Bank Account (“False Alarm Account”) to be established at a commercial bank. <br />B. CITY and CONTRACTOR agree to maintain a positive balance of available funds (“Minimum <br />Balance”) at all times in the False Alarm Account. <br />C. At the beginning of each month, CONTRACTOR will reconcile the alarm related deposits <br />for the most recent completed month and report the same to CITY. Upon CITY’s approval, <br />CITY and CONTRACTOR shall authorize and cause the issuance of electronic (ACH) <br />transfers to CITY and to CONTRACTOR as follows: <br />i. With regard to the transfer to CONTRACTOR, the amount will be calculated for <br />CONTRACTOR based on the Revenue Share described above. That amount, not to <br />exceed 12% of the revenue collected during the preceding month, shall be transferred <br />to a bank account authorized by CONTRACTOR; and, <br />ii. The remaining balance of the revenue collected during the preceding month of <br />no less than CITY 88%, shall be transferred to a bank account specified by CITY. <br /> <br />D. A remittance advice will be provided to the CITY when the ACH transfer is initiated with the <br />bank.At the termination of this Contract, any remaining balance shall be transferred to <br />CONTRACTOR and CITY on the same pro-rata basis, e.g. 12% and 88%respectively. In <br />addition, Contractor will continue to collect payments from the lockbox and record such <br />payments for the CITY on an Excel spreadsheet which will be provided to the CITY on a <br />weekly basis for 90 days. At the end of each month, for the 90-days period, Contractor will <br />reconcile the bank statement and spreadsheet of payments after termination date and <br />Contractor shall share those payments collected in the lockbox with the CITY and be <br />compensated at 12% for those 90-days days of payments collected after termination date. <br />B.3.1 Delinquent Account Terms <br />The Parties shall define a mutually agreeable process and methods for collecting amounts due <br />from delinquent accounts. If organizations other than the CITY and CONTRACTOR are retained <br />to collect overdue amounts, the Parties agree that the collection costs shall to the extent permitted <br />by State of Washington law be added to the delinquent amounts owed by alarm system users or <br />be borne by the Parties on a pro-rata basis by deducting the third-party collection fees from the <br />gross third-party collections before the revenue shares are calculated. <br />B.3.2 The CITY Payment Upon Early Termination (Per Section 17C) <br />If, within the initial two (2) years of the E ffective D ate, this Contract is terminated by the CITY for <br />convenience under Section 17A, or is terminated by CONTRACTOR for cause as defined in <br />Section 17B, CONTRACTOR shall be due a one-time Program Termination fee, not to exceed <br />$24,000, to reimburse CONTRACTOR for startup costs. This fee shall be in addition to any other <br />amounts due CONTRACTOR under the Contract. The $24,000 shall be amortized (reduced) on a <br />straight-line basis ($1,000 per month) over the initial twenty-four (24) month period.