CS269001_Exhibit_B.pdf

CS269001

EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS

1. Payment Provisions

a. Upon submission of an invoice, stating the services provided, the time period covered, and the Agreement number, Contractor shall be paid in arrears monthly at the rates specified herein or attached hereto, for services performed in a manner acceptable to the State.

Payments shall be made after receipt of notification from the Project Representative that acceptable work has been performed by Contractor for a given month. Invoices shall be sent to the Project Representative. Send invoices to:

Canyon Springs Attn: Procurement & Services Officer 69696 Ramon Road Cathedral City CA 92234

a. Payments to Contractor, as specified herein, shall include all taxes, federal, state, and local, payable by Contractor by reason of this Agreement.

2. Budget Contingency Clause

a. It is mutually agreed that if the Budget Act of the current fiscal year and/or any subsequent fiscal years covered under this Agreement does not appropriate sufficient funds for this program, this Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement.

b. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State or offer an amendment to Contractor to reflect the reduced amount.

3. Agreement Budget Changes

If this Agreement contains a budget, all proposed transfers between individual line items and additions or deletions of line items shall be requested in writing to the appropriate Project representative. A budget line-item changes greater than 10% or $10,000, whichever is less, shall require an amendment to be effective. Such requests shall contain an explanation of the need for the change, identification of the line items to be changed, and a revised budget. The State reserves the right to deny any request for line-item transfers, additions, or deletions.

4. Accounting Procedures

Contractor shall establish and maintain fiscal control and accounting procedures as may be necessary to assure proper accounting for all funds under this Agreement.

5. Prompt Payment Act

All payments shall be made in accordance with the California Prompt Payment Act.

(Government Code Section 927 et seq.)

6. Payment Rates

Contractor shall be paid at the following rates per item specified:

Laundry Service Type

Per Pound Flat Rate

Standard Laundry

(Pound Rate)

Healthcare Laundry

Delivery Charge

(Rate Per Trip)

Bundling

Counting

Sorting

Plastic Wrapping

7. Fuel Surcharge Rate

Contractor shall be allowed a fuel surcharge monthly adjustment based on a rounded average of the national U.S. on-highway average price for a gallon of diesel fuel in California, as identified by the U.S. Energy Information Administration (EIA) at:

http://www.eia.gov/oog/info/wohdp/diesel_detail_report_combined.asp.

A fuel surcharge is designed to reimburse the Contractor for increased fuel costs in excess of the Contractor’s identified “fuel surcharge benchmark price” experienced in the process of transporting items to/from Canyon Springs and is not designed to be a profit center. The fuel surcharge calculation to be used is:

The average cost for fuel for the prior month (4-5 weeks) as determined by the EIA minus (-) Contractor’s identified “Fuel Surcharge Benchmark Price, divided (/) by the average miles per gallon equals the fuel surcharge rate, multiplied by (x) the Miles Driven Round Trip, multiplied by (x) the number of trips made in the prior month to/from Canyon Springs provides the fuel surcharge amount the Contractor may charge/invoice for the prior month.

Fuel Surcharge Benchmark Price Per gallon of fuel (See Exhibit D for explanation of Surcharge allowance)

Miles Driven Per Round Trip Origination/Canyon Springs

Average Miles Per Gallon (MPG)

$ gallon

Miles

MPG

If the highway average price for the prior month is less than the benchmark price identified by the Contractor, Canyon Springs will not authorize payment of a fuel surcharge adjustment for the month.

Contractor’s monthly invoice shall specify any fuel surcharges for the prior month, using the fuel surcharge benchmark price and miles driven originally identified by the Contractor in his bid for this contract specified in this paragraph.

8. HEALTH, DENTAL AND VISION BENEFITS

a. Contractor agrees to provide health (as defined in Title 10 California Code of Regulations Section 1300.67), dental and vision benefits as provided by a health care service plan as that term is used in Section 56.05 of the Civil Code or Section 1304 et seq. of the Health and Safety Code. In the alternative, Contractor may pay to each employee a cash payment in the amount specified below or any combination of the two (benefit plan and cash) which shall equal the per hour amount below.

b. Contractor agrees to and does certify that prior to receiving any payments hereunder; it has or will comply with all of the requirements as set forth in Government Code, Section 19134 or any amendments thereof.

http://www.eia.gov/oog/info/wohdp/diesel_detail_report_combined.asp

c. To provide for these benefits, the State agrees to pay Contractor the blended rate set by the California Department of Human Resources (CalHR) per hour for each employee who provided service at the site as called for in the contract, to the maximum average set by CALHR per employee per month per 12-month period. From time to time, the State reserves the right to change the hourly rate based on the annual calculations of CALHR.

The State will alter the amount to be reimbursed to Contractor as required by the new calculations.

d. The method of payment shall be monthly in arrears based upon the actual number of hours worked per employee each month. Contractor shall submit a monthly billing to the State showing the name of each employee who worked during the month and the hours worked by each one (use form DS 1166 Contracts Benefits Summary – Exhibit B Attachment 1).

e. Notwithstanding any other provision to the contrary, the agreement in this section shall not operate to create an employer-employee relationship between the State and any persons who are employed by Contractor to carry out the terms and conditions of this contract.

None of the terms of this agreement shall be construed to limit any agreement between Contractor and its employees which may call for payments or benefit in excess of the above stated amounts.