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RWC CITY CLERK PAGE ' - 08/22/2004 21:59 5502519102 3. Contractor shall report Commercial Organics Collection Program tonnagE information and other such other operational jnformation (e,g., changes in participants' solid waste service level$), in a content and format satisfactory to the Authority and Agency, as pMt of the existing qu,arterly Management Information System (MIS) report provided by Contractor to Authority and Agency, In addition, Contractor shall submit Commercial Organics Collection Program financial information as a part of Contractor's annual rate application consistent with the provisions of Article 6 of the Agreement. 4. The Contractor shall be compe:nsated for services rendered hereUl1der in accordance with Article 6 of the Agreement, except as provided below for processing expenses. 5, Accounting for processing expenses irlcurrcd hereunder shall be the product of multiplying the number of commercial organic tons processed by Contractor by the applicable Processi11g Fee (per ton) specified below (hereinafter referred to as the "Processing Fee"). Contamination Leve} Processing Pee (per ton) Tier 1 Less than 5 % $ 30.00 Tier 2 5% to less than 10% $ 32.00 Tier 3 10% to less than 15% $ 36.00 Tier 4 15% to less than 20% $ 38.00 Tier 5 Greater than 20 % $ 40.00 6. The applicable Processing Fee will be based on the quarterly assessment process as described in the Contractor's proposal letter dated March 14, 2003, referred to in paragraph 1 above, 'IÞe Authority and/ or Agency may monitor the Contractor's quarterly assessment process to ensure that it reflects an accurate accounting of the contamination level for purposes of establishing the applicable Processing Fee. The Tier 2 Processing Pee of $32.00 per ton wil1 be applicable for the first quarter of the Commercial Organics Collection Program. 7. The Tiered Processing Fee schedule, as described in paragraph 5 above, wm remain in effect without adjustment until December 31, 2006, the end of the current term of the Agreement. Any new governmental or regulatory agency fees that become effective during the current term of the Agreement will be added to the Tiered Processing Fee schedule. 8. Commencing January 1, 2007, and on every twelve month anniversary thereof (" Adjustment Date") the Tiered Processing Fee schedule shall be adjusted to reflect the change in the Consume.r Price Index, AU Urbé\l1 Consumers, AU Items TndE:xes, for the San Francisco- Oakland-San Jose Metropolitan Area, (SE:ries JD: CUURA422SAO) published by the Urúted States Deparhnent of Labor, Bureau of Labor Statistics ("Index"). The Index for the month of April pxeced:ing the Adjustment Date shall be the Comparison Index; the Index for the month of April twelve months prior thereto shall be the Base Index. On each Adjustment Date, each Tiered Processing Fee shall be adjusted to an amount equal to the product obtained by Atly/ Agr/ Amendmen~ 2 - BFI 040104 2