Agmt05 BFI Waste Systems - Laserfiche WebLink

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1 2 The foregoing distribution of benefits shall be applicable for the 3 corresponding year in which a Program is in effect, notwithstanding that the number of 4 Rate Years remaining following the institution of such I'rogram may be less than the 5 full amount specified above. 6 7 Following the implementation of an approved Cost Savings Program, 8 Agency or SBWMA on behalf of Agency, shall determine the actual operating cost 9 savings which occurred during each Rate Year as a result of the Program. If the actual 10 savings equal or exceed 5/10th of one percent (0.5%) of the Billings to the Agency's rate 11 payers for each such Rate Year, the savings shall be allocated in accordance with the 12 above table in pursuance of the rate modification process described hereinabove. The 13 allocations shall be made in each succeeding year by identifying the difference between 14 Contractor's actual Operating Cost and the Operating Costs which would have resulted 15 without the Program. 16 17 It is understood that some proposals made by Contractor may require 18 significant capital investments by Contractor, and that the allocation of the Operating 19 Cost savings therefrom to Contractor in accordance with the above table may be 20 insufficient to justify the investment. In such instances, Contractor and Agency, upon 21 the recommendation of the SBWMA, may agree upon a reasonable return to Contractor 22 for its investment in lieu of distributing the benefits in accordance with the above table. 23 Should Contractor and Agency fail to agree on such Program, Contractor shall not be 24 required to initiate the Program, nor incur further significant additional capital 25 investment beyond that required for normal operations. 26 27 6.09 Interim Compensation Adjustment. In the event the Agency directs the 28 Contractor to change its operations in accordance with Section 2.09 of this Agreement 29 or in the event of an extraordinary or unanticipated event including a change in law, or 30 an adjustment to the Disposal or Transfer Rate, and such adjustment materially affects 31 the Contractor's cost of operations, then the Contractor or the Agency may submit a 32 request for an interim compensation adjustment. In such case, the Contractor shall 33 prepare a complete application in accordance with Exhibit D, unless otherwise agreed 34 to by the Agency. 35 36 6.10 Initial Rates. The rates for the Rate Year ending 1999, were those 37 established by Agency Resolution No. 13564. The current rates were established by 38 Agency Resolution No. 13844 (copies of both are attached as Exhibit E), unless amended 39 in accordance with this Agreement. Unless and until the rates set forth on Exhibit E are 40 adjusted by the Agency, the Contractor will provide the service required by this 41 Agreement, charging no more and no less than the rates authorized by Exhibit E unless 42 authorized to do so by the Agency. 43 Atty / Agrj2005.022 060205 -37-