Common use of Extraordinary Adjustments Clause in Contracts

Extraordinary Adjustments. Contractor may request an adjustment to maximum rates in the event of extraordinary changes in the cost of providing service under this Agreement. Extraordinary rate adjustments may be requested no more than once per year. Reasons for such extraordinary rate adjustment requests shall not include changes in Recyclable Material or Green Waste tipping fees or processing costs, changes in the market value of Recyclables from the values assumed in Contractor’s Proposal, discontinuance of Diversion credit for any form of Transformation or closure of any such facility (see Section 4.2.5), changes to costs or programs related to Organics Recycling programs as described in Section 4.1.15, inaccurate estimates by Contractor of its proposed cost of operations, unionization of Contractor’s work force, or change in wage rates or employee benefits. Contractor may request an extraordinary adjustment based upon changes after, and unanticipated as of, the Effective Date in a direct per ton fee assessed by federal, state or local regulatory agencies at the landfill(s) approved and used for waste disposal under this Agreement. Extraordinary rate adjustments shall only be effective after approval by the City Council and may not be applied retroactively. For each request for an adjustment to the maximum rates that Contractor may charge Customers brought pursuant to this Section, Contractor shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor in preparing the estimate. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three (3) years for the services provided under this Agreement. City may request a copy of Contractor’s annual financial statements, both covering the services provided in City and the company as a whole, in connection with City’s review of Contractor’s rate adjustment request. City shall review Contractor’s request and, in City’s sole judgment and absolute, unfettered discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. City may consider increases or decreases in Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. City may require Contractor to fund a review of any extraordinary rate adjustment, by a third party of the City’s choosing, up to $35,000 per request.

Extraordinary Adjustments. Contractor Company may request an adjustment to maximum rates at reasonable times other than that allowed under Section 5.3 and 5.4 of this Agreement in the event of extraordinary changes in the cost of providing service under this Agreement. Extraordinary rate adjustments may be requested no more than once per year. Reasons for such extraordinary , and if approved, will be implemented at the same time as the next regularly scheduled rate adjustment requests shall not include changes in Recyclable Material or Green Waste tipping fees or processing costs, changes in the market value of Recyclables from the values assumed in Contractor’s Proposal, discontinuance of Diversion credit under Section 5.4 effective July 1. No adjustments may be made for any form of Transformation or closure of any such facility (see Section 4.2.5), changes to costs or programs related to Organics Recycling programs as described in Section 4.1.15, inaccurate estimates by Contractor Company of its proposed cost of operations, unionization of ContractorCompany’s work forceworkforce, or change in wage rates or employee benefits. Contractor may request City will permit an extraordinary adjustment to the rate based upon changes after, and unanticipated as of, the Effective Date on an increase or decrease in a direct per ton fee surcharge assessed at the Disposal site or transfer station by federal, state State or local regulatory agencies at after the landfill(s) approved and used for waste disposal under Effective Date of this Agreement. Extraordinary , to the extent the percentage change in these adjustments exceed the cumulative percentage change in the total rate adjustments shall only be effective after approval by granted under Section 5.4 since the City Council and may not be applied retroactivelyEffective Date. For each request for an adjustment to the maximum rates that Contractor Company may charge Customers brought pursuant to this Sectionsection, Contractor Company shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor Company in preparing the estimate. Contractor Company shall also submit a schedule showing how its total costs and total revenues have changed over the past three (3) years for the services provided under this Agreement. City may Upon a request by City, Company shall provide a copy of ContractorCompany’s annual financial statements, both covering the services provided in City and the company as a whole, statements in connection with City’s review of ContractorCompany’s rate adjustment request. City may review tonnage reports and all other applicable documentation to determine the accuracy of the rate adjustment request, including the tonnage to which it applies, the impact on Customer rates, and any other issues City determines to be relevant to this review. City shall review ContractorCompany’s request and, in City’s sole judgment and absolute, unfettered absolute discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment, subject to the provisions of Section 2.8. City may consider increases or decreases in ContractorCompany’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. In the event the City may require Contractor requires changed or additional services, additional reporting, use of a particular Disposal Site or processing Facility, or change to fund the City’s Municipal Code affecting Company’s operations, the Company shall be entitled to request a review of any extraordinary rate adjustment, by a third party adjustment for increased costs arising out of the City’s choosing, up to $35,000 per requestactions.

Extraordinary Adjustments. Contractor may request an adjustment to maximum rates at reasonable times other than for those adjusted automatically on an annual basis, in the event of extraordinary changes in the cost of providing service under this Agreement. Extraordinary rate adjustments may be requested no more than once per year, and if approved, will be implemented at the same time as the next regularly scheduled rate adjustment. Reasons No adjustments may be made for such extraordinary rate adjustment requests shall not include changes in Recyclable Material or Green Waste tipping fees or processing costs, changes in the market value of Recyclables from the values assumed in Contractor’s Proposal, discontinuance of Diversion credit for any form of Transformation or closure of any such facility (see Section 4.2.5), changes to costs or programs related to Organics Recycling programs as described in Section 4.1.15, inaccurate estimates by Contractor of its proposed cost of operations, unionization of Contractor’s work forceworkforce, or change in wage rates or employee benefits. Contractor may request an extraordinary adjustment based upon changes after, and unanticipated as of, the Effective Date in a direct per ton fee assessed by federal, state or local regulatory agencies at the landfill(s) approved and used for waste disposal under this Agreement. Extraordinary rate adjustments shall only be effective after approval by the City Council and may not be applied retroactively. benefits For each request for an adjustment to the maximum rates that Contractor may charge Customers brought pursuant to this SectionArticle 5, Contractor shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to City with support for assumptions made by Contractor in preparing the estimate. Contractor shall also submit a schedule showing how its total costs and total revenues have changed over the past three (3) years for the services provided under this Agreement. City may request a copy of Contractor’s annual financial statements, both covering the services provided in City and the company as a whole, statements in connection with City’s review of Contractor’s rate adjustment request. City may review tonnage reports and all other applicable documentation to determine the accuracy of the rate adjustment request, including the impact on Customer rates, and any other issues the City determines to be relevant to this review. City shall review Contractor’s request and, in City’s sole judgment and absolute, unfettered absolute discretion, make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. City may consider increases or decreases in Contractor’s total revenues and total cost of services when reviewing an extraordinary rate adjustment request. In the event the City may require requires changed or additional services, additional reporting, use of a particular Disposal Site or processing Facility, or change to the City’s Municipal Code affecting Contractor’s operations, Contractor shall be entitled to fund request a review of any extraordinary rate adjustment, by a third party adjustment for increased costs arising out of the City’s choosing, up to $35,000 per requestactions.