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<br />REV: 03-16-18 MI <br />ATTY/AGR/2018.054/RECOLOGY OF SAN MATEO <br />Page 93 of 119 <br />3. Change in Law occurring after January 1, 2011. 3825 <br />4. Changes in the Rates charged for Backyard Collection Service and/or Curbside 3826 <br />Collection Service that alter the price differential between the two, causing 3827 <br />Customers to migrate from one to the other, with the result of increasing or 3828 <br />decreasing Contractor’s annual cost of operation by two percent (2%) or more. 3829 <br />A special compensation review must be requested by Contractor, or initiated by 3830 <br />Agency, within twelve (12) months after one of the above-described events has 3831 <br />occurred unless otherwise agreed to by the Agency. 3832 <br />B. Ineligible Items. A special review of Contractor’s Compensation may not be initiated 3833 <br />for any of the following reasons: 3834 <br />1. Increases or decreases in Contractor’s cost of operations in excess of the 3835 <br />adjustments provided through the annual adjustment mechanism described in 3836 <br />Attachment K. 3837 <br />2. Growth or decline in the number of Customers or their service levels, with the 3838 <br />exception of adjustments described in Attachment K. 3839 <br />3. Changes in the mix of Container sizes or frequency of Collection, with the 3840 <br />exception of adjustments described in Attachment K. 3841 <br />C. Review of Costs. Agency shall have the right to review any and all financial and 3842 <br />operating records of Contractor. Agency will take into account the net overall impact 3843 <br />of the event on Contractor’s Compensation, including reductions in cost resulting from 3844 <br />curtailments in service levels or other factors. 3845 <br />D. Submittal of Request. Contractor must submit its request for a special review in a 3846 <br />form and manner specified by the Agency, together with required cost and operational 3847 <br />data. Agency will review the request and determine the amount owed, if any, to 3848 <br />Contractor and the time period to be covered by special compensation 3849 <br />circumstances. 3850 <br />E. Burden of Justification. In a special compensation review under this Section, 3851 <br />Contractor shall bear the burden of justifying to the Agency by substantial evidence 3852 <br />its entitlement to continuation of current, as well as any increases in, Contractor’s 3853 <br />Compensation. If the Agency determines that the Contractor has not met its burden, 3854 <br />it shall notify Contractor that it is prepared to deny Contractor’s request for an increase 3855 <br />in compensation, or to proceed with a reduction in compensation. Within ten (10) 3856 <br />Days after such notice, Contractor may request a hearing before the Agency’s 3857 <br />governing body to produce additional evidence. Upon such request, the Agency shall 3858 <br />provide a hearing before the Agency governing body. 3859 <br />F. Hearing. Based on evidence presented to it, including, that submitted by Contractor, 3860 <br />the Agency governing body may grant some, all, or none of the requested increase 3861 <br />in, or may reduce, Contractor’s Compensation. In the event Agency denies 3862 <br />Contractor’s requested increase in whole or in part, Contractor shall have the right to 3863 <br />present its claim to a court of competent jurisdiction. 3864 <br />G. Cost of Review. Contractor shall bear all reasonable costs incurred by Agency 3865 <br />(including assistance provided to it by SBWMA) of a special review which it has 3866 <br />6.2.B. - Page 106