PLEASANTON GARBAGE FRANCHISE AGREEMENT 2018

City of Pleasanton Article 3.Term of Agreement Franchise Agreement with Pleasanton Garbage Service 621 13 Term 622 The Term of this Agreement shall be Eleven (11)years from 12:01 a.m. on July 1, 2018 (Commencement 623 Date) to midnight June 30, 2029, unless extended by City pursuant to Section 3.4 or terminated in 624 accordance with Section 11.3. 625 14 Option to extend Term 626 At the City's sole discretion, the City shall have the option to extend this Agreement, up to sixty (60) 627 months beyond the Term identified in Section 3.3, in one or more periods of at least twelve (12) months 628 each pursuant to the terms and conditions of this Agreement. If the City elects to exercise the option, it 629 shall give written notice of its election, specifying the number of months by which it elects to extend the 630 Term, to the Contractor, one hundred eighty (180) calendar days prior to the initial expiration date or 631 extended termination date of this Agreement. At the end of the Term(including any extensions),the City 632 may extend the Agreement on the same terms contained herein without renegotiation (subject to the 633 next paragraph), renegotiate the terms and conditions of the Agreement with the Contractor(subject to 634 agreement by the Parties),or select another means to procure or provide Collection services. 635 If the City chooses to extend the Agreement,the Parties shall meet and confer to discuss Collection vehicle 636 needs and related costs,if any. The equipment replacement plans presented on Contractor's depreciation 637 schedule(Exhibit F)in Contractor's proposed costs shall serve as the basis for negotiations. The extension 638 to the Agreement may be approved if the Parties agree on how the incremental increase in depreciation 639 and interest expenses above those existing prior to the extension of the Agreement, shall be treated 640 during the extension period. Should the Parties fail to reach agreement,the matter shall be submitted to 641 binding arbitration. 642 The City has no obligation to renegotiate, renew, or extend the rights granted to Contractor beyond the 643 initial Term of the Agreement identified in Section 3.3. City of Pleasanton Page 22 March 8, 2018