Approved Costs Relating to Staffing. Operator shall submit to City actual staff hours worked and shall be paid according to the rate structure set forth in Section 1.1.3 of the Scope of Services. The Approved Costs related to compensation for hourly staffs shall be calculated by the actual number of staff hours worked multiplied by the hourly billing rates set forth in Section 1.1.3 of the Scope of Services. For salaried employees, the Approved Costs shall be the pro rata share of the annual salary amount attributable to the days the employees were actually in employment and working at the Parking Facilities. Staff working hours shall not exceed the approved number of hours set forth in the Business and Operations Plan. Any staff hours worked that exceed the approved hours shall not be payable by City. From time to time, City may require Operator to submit payroll records that can substantiate the number of hours worked by staff. The parties acknowledge and agree that the hourly billing rates and annual salaries set forth in section 1.1.3 of the Scope of Services constitute the maximum compensation that Operator is entitled to receive under this Agreement in connection with such staffing and personnel, and are inclusive of (without limitation) wages, employee benefits, health insurance, worker’s compensation insurance, payroll taxes, payroll processing fees, uniforms, employee parking costs, and any other expenses related to the provision of such staffing and personnel, regardless of the actual expenses incurred by Operator in connection therewith. There will be no changes to such maximum hourly billing rates and annual salaries, unless otherwise agreed in writing by the Chief Executive Officer on behalf of City. Operator acknowledges and agrees that Approved Costs relating to the cost of staffing (i.e., Operator’s or Operator’s subcontractors’ personnel performing work at the Parking Facilities (such as parking field, cleaning, security, operations, valet and administration staff)) shall only be payable for services actually performed. City shall have the right to reduce the Approved Costs relating to staffing in instances where such staff was absent or did not actually perform his or her duties.
