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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 7.07 B. Materials Delivered to the Transfer Station. If Contractor elects, or if the Authority directs Contractor, to process loads of Plant Materials and Organics delivered to the Transfer Station by the Collection Contractor which contain more than the applicabfe maximum contamination level, but do not exceed that level by more than five percent (50/0), Authority will pay Contractor a supplemental fee to cover the additional cost of processing this material. The amount of this supplemental fee will be $7 per Ton (applied to all Tons over the maximum contamination level) in Rate Year One. It will be adjusted in subsequent years by the same percentage as that used to adjust the Transfer Station Fee described in Section 7.03.A. RECYCLING REVENUES; GUARANTEE AND SHARING OF REVENUES A. Revenue Guarantee - General. Contractor will pay Authority one hundred percent (1000/0) of Revenue earned from the sale of Recyclable Materials monthly until it has paid Revenue equal to the Revenue Guarantee then in effect. If Revenue earned from the sale of Recyclable Materials is less than the Revenue Guarantee in any year, Contractor will pay Authority, within 60 days after the end of that Rate Year, the difference between the Revenue Guarantee and the Revenue actually earned and paid by Contractor to Authority. r "Revenue" for the purposes of this Section 7.07 means the amounts due Contractor from the sale of Recyclable Materials (prices based on terms being FOB Shoreway Center except for glass, in which case sales revenue will be based on the delivered price less cost of transport). B. Revenue Guarantee in Rate Year One. 1. General. Subject to the adjustment described in subsection B.2 and the proration described in subsection B.3, the Revenue Guarantee for Rate Year One is Six Million Five Hundred Thousand Dollars ($6,500,000). 2. Adiustment of 2011 Revenue Guarantee. The Revenue Guarantee is based on tonnage projected by the SBWMA for calendar year 2011 (74,022 Tons). The Revenue Guarantee will be adjusted (up or down) proportional to the actual tonnage of Recyclable Materials delivered to the MRF and Buy Back Center in 2011. For example, if the actual tons delivered in 2011 are 77,723, the Revenue Guarantee for 2011 will be increased by 5.00/0 to Six Million Eight Hundred Twenty Five Thousand Dollars ($6,825,000). No subsequent adjustments to the Revenue Guarantee will be made. 3. Temporary Proration of Revenue Guarantee. The MRF is not expected to be operational until the Spring of Rate Year One. The Revenue Guarantee will be prorated one time, during Rate Year One (2011). The proration will not reduce the expected baseline tonnage for Rate Year One (74,022 Tons) but will be applied to the Revenue Guarantee. Once the MRF equipment has been tested by Contractor and accepted by Authority, the Authority will calculate the number of days that the MRF is capable of full operation for the balance of Rate Year One (2011). As an example: Revenue Guarantee - First day MRF is fully operational - Number of days operational - Proportion of year operational - $6,500,000 April 1 275 (April 1 - December 31 ) 750/0 (275 days/365 days) Operating Agreement for Shoreway Center Page - 25 - 7/30/09