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City of Pleasanton Article 8. Contractor's Compensation Franchise Agreement with Pleasanton Garbage Service City of Pleasanton Page 105 June 7, 2022March 8, 2018 Rate Period. The actual costs shall be based on the financial statements for the most -3678 recently-completed Rate Period, which shall be submitted in accordance with requirements 3679 of Section 6.3.4. In addition, the application shall present the Contractor’s calculation of the 3680 Rate Adjustment factor, present each Rate for the then-current Rate Period, and each 3681 proposed Rate for the coming Rate Period. Lastly, the application shall include operational 3682 data listed in Section 6.3.4.C. 3683 If the City requests additional information beyond that provided by the Contractor in its 3684 application, the Contractor shall provide all information requested by the City during its 3685 review of the application, including, but not limited to, all information from Related-Party 3686 Entities requested by the City regarding any transactions between Contractor and any 3687 Related-Party Entity pertaining to Contractor's performance under this Agreement. 3688 B. City Review of Application. The Contractor’s Rate application shall be reviewed by the City. The 3689 City Council shall adjust Rates to reflect the adjustments made in accordance with Exhibit H or I 3690 depending on the method used to adjust the Rates that are being approved. The City Council shall 3691 act in good faith to approve such Rate adjustments by July 1 of the Rate Period. The adjusted Rates 3692 shall not take effect until the City Council has approved such Rates. 3693 C. Failure to Adjust Rates by July 1. If the Contractor submits its Rate application on or before the 3694 Rate application date identified in Section 8.3.A, and the City does not approve adjusted Rates to 3695 be effective on or before July 1 of a Rate Period, the City shall include a surcharge on the Rates that 3696 shall be effective for the remainder of the Rate Period to recover Gross Rate Revenues lost by the 3697 Contractor, if any. To determine the amount of lost revenues, if any, the City and Contractor shall 3698 meet and confer to determine the effect the delay in adopting Rates has on the Contractor’s Gross 3699 Rate Revenue. The assessment of the revenue impact shall consider the Contractor’s billing cycle 3700 (e.g., impact to Customers billed in advance and to Customers billed in arrears), the ability of 3701 Contractor to delay issuance of bills, the payment cycle of Customers, and other variables. 3702 If the Contractor does not submit the application on or before the Rate application date identified 3703 in Section 8.3.A, adjusted Rates may not be approved by July 1. In such case, all Rates shall be 3704 adjusted as soon as practical following approval by the City Council. If the Contractor does not 3705 submit the application by the Rate application date identified in Section 8.3.A, no retroactive 3706 adjustment will be made to allow the Contractor to recover Gross Rate Revenues that it would have 3707 collected, had the Rate adjustment been implemented in accordance with the prescribed schedule. 3708 8.4 Special Rate Reviews 3709 A. Change in Approved Organic Materials or Approved Recyclable Materials Processing Site 3710 1. Eligible Items. The Contractor is entitled to apply to the City for consideration of a special 3711 Rate review, or the City may initiate such a review, to reflect actual, necessary, and 3712 reasonable changes in revenues and the cost to provide services as a result of a City-directed 3713 change in the Approved Organic Materials Processing Site and/or Approved Recyclable 3714 Materials Processing Site. 3715 2. Review of Revenues and Costs. If the Contractor submits an application the City shall have 3716 the right to review any or all financial and operating records of Contractor, and of Related 3717