Agmt05 BFI Waste Systems - Laserfiche WebLink

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1 SBWMA and Agency believe that phasing-in the transition from the current loss to the 2 new profit level is desirable. Therefore, when calculating Contractor's Compensation 3 for 2000, the calculations have been made using the methodology described in -Exhibit 4 D, except that $1,218,000 has been subtracted from the calculated Revenue Requirement. 5 Similarly In 2001, $609,000 shall be subtracted from the calculated Revenue 6 Requirement. In 2002 and beyond no amount shall be subtracted from the Revenue 7 Requirement for these purposes. 8 9 6.05 Contractor's Compensation for Each Subsequent Rate Year. 10 11 A. Contractor's Application. By August 1 of each Rate Year, the 12 Contractor shall submit a Request for Adjustment to Compensation. This request shall 13 be prepared in accordance with the procedures and submitted in a form as described in 14 Exhibit D. The Contractor will provide all information requested by the Agency and 15 the SBWMA as part of their review of the Contractor's application, including, but not 16 limited to, all information from related parties requested by the Agency and the 17 SBWMA regarding any transactions between the Contractor and any Related Party 18 Entity. 19 20 B. Determination of Contractor's Compensation. The Agency and 21 the SBWMA, or their representative, will review the Contractor's application for 22 compliance with this Agreement, accuracy, and reasonableness. 23 24 c. Review Methodology. The methodology for reviewing the 25 Contractor's Application is described in Exhibit D. The Agency shall use its best efforts 26 to make the adjustment effective by January 1, of the following year. However, the 27 Agency shall not make any retroactive adjustments to compensate for any delay in 28 calculating the Contractor's Compensation which results from the failure of the 29 Contractor to submit its request by August 1, and/ or respond promptly and completely 30 to requests of the Agency and SBWMA for information related to any of the 31 calculations required by this Section or from appeals of the determination to the Agency 32 and SBWMA which extends the process of determination. 33 34 6.06 Lease or Purchase of Equipment and Facilities and Hiring of Additional 35 Employees. In order to protect against unforeseen rate increases related to 36 unanticipated increases in Contractor expenses, Contractor agrees not to enter into 37 leases, purchase significant quantities or change the types of new vehicles, equipment 38 or facilities or hire additional employees that materially affect the Contractor's profit 39 without the advance, written approval of Agency. 40 41 6.07 Performance Incentives. In addition to the operating ratio allowed the 42 Contractor, the Contractor shall be entitled to the following performance incentives 43 which are also described in Exhibit D-l of this Agreement: 44 Attyj Agrj2005.022 060205 -35-