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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 level for Single Family Targeted Recyclable Materials in eight (8) consecutive quarterly sampling events conducted in accordance with the methodology described in Attachment 2-H. B. A change in the scope of services directed by the Authority pursuant to Section 12.13 will be considered a basis for an adjustment in compensation whether or not it will increase or decrease Contractor's component costs by two percent (2%) or more. C. If the Contractor requests, or the Authority initiates, a special review of the Contractor's compensation, the Authority shall have the right to review the financial and operation records of the Contractor and Affiliated Entities that it determines are reasonably necessary to conduct such special review. D. Contractor shall bear the burden of justifying to the Authority by substantial evidence its entitlement to continuation of current, as well as any increases in, Contractor's compensation for special circumstances. If the Authority determines that the Contractor has not met its burden, it shall notify Contractor that it is prepared to deny Contractor's request for an increase in compensation, or to proceed with a reduction in compensation. The Contractor may request a hearing to produce additional evidence. Upon such request, the Authority shall provide a hearing before the Authority's Board of Directors. In the event the Authority's Board of Director's denies Contractor's request, Contractor shall have the right to present its claim in a court of competent jurisdiction. 22 7.12 APPLICATION FOR ANNUAL ADJUSTMENT IN BASIC COMPENSATION 23 A. Application Date and Content. Contractor shall prepare and submit to the Authority 24 by July 1 of each year, an application for adjustment of the elements of Basic 25 Compensation for the next Rate Year. The first application will be due on July 1, 26 2010 for Rate Year One (2011). The application will adjust the Transfer Station Fee, 27 the MRF Fee and the Transportation Fees following the methodology prescribed in 28 Attachment 12-A (for Rate Year One) and Attachment 13-A (for subsequent Rate 29 Years). It will substantially follow the format of Attachment 12-B (for Rate Year One) 30 and Attachment 13-B (for subsequent Rate Years) with such modifications as the 31 Authority may approve in advance, in writing. 32 B. Review of Application. The Authority staff will review the application for 33 completeness, accuracy and consistency with the procedures described in 34 Attachments 12-A and 13-A and the format illustrated in Attachments 12-B and 13-B. 35 The Authority staff will bring to the Contractor's attention any factual or calculation 36 errors, omissions or other discrepancies in the application which come to their 37 attention. Contractor shall provide any additional information requested by Authority 38 staff during the review of the application, shall meet with Authority staff, at the 39 Shoreway Center, to discuss the application, and shall make revisions to the 40 application necessary for it to be complete, accurate and consistent. 41 C. Report to Authority Board of Directors. On or before September 1 of each year, 42 Authority staff shall submit a report to the Authority Board of Directors recommending 43 the adjustments, if any, to the elements of Contractor's Basic Compensation for the 44 next Rate Year. The Authority Board of Directors will take action on the 45 recommendation at a public meeting held on or before October 31. All changes to 46 the elements of Contractor's Basic Compensation must be approved by the Board of 47 Directors. Operating Agreement for Shoreway Center Page - 29 - 7/30/09