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be performed manually. For any machinery or equipment excavation and grading over and/or <br />within twenty feet (20') of each side of the centerline of the pipeline (measured on the surface), <br />Licensee will submit a written proposal together with all supporting calculations and data to the <br />SFPUC for review and approval. In any case, the two feet (2') of soil around the pipeline must be <br />removed manually or by other methods approved by the SFPUC with due care as provided in <br />Section 5(e) [Exercise of Due Care] above. <br />(j) Cathodic and Other Protection. City may adopt from time -to -time rules and <br />regulations with regard to the Facilities, Licensee's prior improvements or alterations, and <br />Licensee's operations under this License as City may determine are necessary or appropriate, at <br />City's sole discretion, to safeguard against corrosion of, or other damage to, City's pipelines and <br />other facilities. Licensee will immediately comply with all rules and regulations upon receipt of a <br />copy of any rules and regulations. <br />License Fee(s). <br />(a) Processing Fee. Licensee will pay to City a one-time non-refundable license fee <br />in the amount of Seven Hundred Fifty Dollars ($750) to cover City's processing, inspection, and <br />other administrative costs. Such fee is payable at such time as Licensee signs and delivers this <br />License to City. Payment will be made by good check payable to the City and County of <br />San Francisco and delivered to City in care of the SFPUC Real Estate Director at the address for <br />notices to City specified in Section 31(a) [Notices] below, or such other place as City may <br />designate in writing. <br />(b) Recurring Use Fee. In addition, throughout the Term of this License beginning <br />on the Commencement Date, Licensee will pay to City a use fee in consideration of Licensee's <br />use of the License Area. Starting on the Commencement Date and until any adjustments permitted <br />by this License, the use fee payable will be in the amount of Seven Hundred Dollars ($700) per <br />month, paid monthly ("Recurring Use Fee"). The Recurring Use Fee will be paid to City in <br />advance, without prior demand and without any deduction, setoff, or counterclaim whatsoever, <br />before the Commencement Date and on or before the first day of each calendar month thereafter. <br />The Recurring Use Fee for the first month or any partial month will be prorated on the basis of a <br />30 -day month. All sums payable by Licensee to City pursuant to this License will be paid in cash <br />or by certified check to the City and County of San Francisco and delivered to City in care of the <br />Customer Service Bureau, Attn: Real Estate Billing, 525 Golden Gate Avenue, 3rd Floor, San <br />Francisco, California, 94102, or such other place as City may designate in writing. The Recurring <br />Use Fee will be prorated for any fractional month. City's acceptance of a third -party check or <br />other payment will not be deemed as City's acceptance or acknowledgement of any <br />assignment of this License and will not be deemed to establish a relationship between City <br />and that third party. Any sum tendered by a third party will be deemed a use fee tendered <br />on behalf of Licensee and not on behalf of the third party regardless of whether it contains a <br />restrictive endorsement. <br />(c) Recurring Use Fee Adjustment. If the Term is extended by written agreement of <br />the City, (the "Adjustment Date"), the Recurring Use Fee will be adjusted to increase the then - <br />current fee by four percent (41/6). <br />(d) Late Fees. Licensee acknowledges that late payment by Licensee to City of the <br />Recurring Use Fee or other sums due under this License will cause City to incur costs not <br />10 Rev. March 2025 <br />ATIY/AGR.2025.182/San Francisco Public Utilities Commission (Revocable License) (REV: 07-22-25 VR) (Page 10 of 34) <br />