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Contamination Level Processing Fee (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 1 e. The applicable Processing Fee will be based on the quarterly 2 assessment process as described in the Contractor's proposal letter dated March 14, 3 2003, The Authority and/or Agency may monitor the Contractor's quarterly assessment 4 process to ensure that it reflects an accurate accounting of the contamination level for 5 purposes of establishing the applicable Processing Fee. The Tier 2 Processing Fee of 6 $32.00 per ton will be applicable for the first quarter of the Commercial ()rganics 7 Collection Program. 8 f. The Tiered Processing Fee schedule, as described in paragraph d above, 9 will remain in effect without adjustment until December 31, 2006, Any new 10 governmental or regulatory agency fees that become effective during the current term 11 of the Agreement will be added to the Tiered Processing Fee schedule. 12 g. Commencing January 1,2007, and on every twelve month anniversary 13 thereof (" Adjustment Date") the Tiered Processing Fee schedule shall be adjusted to 14 reflect the change in the Consumer Price Index, All Urban Consumers, All Items 15 Indexes, for the San Francisco-Oakland-San Jose Metropolitan Area, (Series ID: 16 CUURA422SA()) published by the United States Department of Labor, Bureau of Labor 17 Statistics ("Index"). The Index for the month of April preceding the Adjustment Date 18 shall be the Comparison Index; the Index for the month of April twelve months prior 19 thereto shall be the Base Index. ()n each Adjustment Date, each Tiered Processing Fee 20 shall be adjusted to an amount equal to the product obtained by multiplying each TPF 21 for the prior year by a factor equal to one (1) plus the percentage change in the Index 22 between the Base Index and the Comparison Index. Any new governmental or 23 regulatory agency fees that become effective after January 1, 2007, will be added to the 24 Tiered Processing Fee schedule. 25 h. As an additional part of the Commercial ()rganics Collection Program, 26 Contractor shall provide Agency with finished compost measured by the inbound 27 tonnage of organic material delivered to the Newby Compost Facility from Agency's 28 Service Area. Agency may elect to receive finished compost in accordance with the 29 following exchange factors: (a) one cubic yard of bulk compost in exchange for each 30 incoming ton of material delivered; (b) one, one cubic foot ~ compost in exchange 31 for each two tons of material delivered; or (c) any combination of the foregoing. 32 Contractor will provide additional bagged compost at $1.00 per bag, subject to a cpr 33 adjustment after December 31, 2004 as described in paragraph 8 above. Compost 34 requested by Agency within a calendar year shall be charged against inbound tonnage 35 only in the same calendar year. Atty j Agrj2005.022 060205 -19-