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City of Pleasanton Article 8. Contractor's Compensation Franchise Agreement with Pleasanton Garbage Service City of Pleasanton Page 108 June 7, 2022March 8, 2018 e. Growth or decline in the number of Customers or their subscription levels; however, the 3800 Contractor shall be entitled to bill all Customers at the City-approved Rates and retain all 3801 Gross Rate Revenues (net fees due to City) collected from its Customers for Collection 3802 services provided under this Agreement. 3803 f. Changes in the number of accounts related to Container sizes or frequency of Collection; 3804 however, the Contractor shall be entitled to bill all Customers at the City-approved Rates 3805 and retain all Gross Rate Revenues (net fees due to City) collected from Contractor’s 3806 Customers for Collection services provided under this Agreement. 3807 g. Changes in the Tonnage or composition of Discarded Materials ; however, changes in 3808 Tonnage shall be reflected in calculated Disposal and Processing Costs in accordance with 3809 procedures in Exhibits H and I. 3810 3. Review of Costs. If the Contractor or the City requests a special Rate review, the City shall 3811 have the right to review any or all financial and operating records of Contractor, and of 3812 Related Party Entities that are involved in financial transactions with Contractor. 3813 4. Submittal of Request. If the Contractor is requesting a special Rate review, the Contractor 3814 must submit its request for a special review of Rates, and cost and operational data, in a 3815 form and manner specified by the City, at least six (6) months before the proposed effective 3816 date of any Rate adjustment. The City may waive the six-month submittal requirement if the 3817 reason for the special Rate review is a Change in Law that will become effective in less than 3818 a six (6) month period. 3819 If City is requesting a special Rate review, the City shall notify the Contractor at least seven 3820 (7) months before the proposed effective date of any Rate adjustment. Upon such 3821 notification, Contractor shall, within thirty (30) calendar days, submit reasonable cost and 3822 operational data as requested by the City, in a form and manner specified by the City. 3823 A request for special Rate review shall include a proposal on whether the Rate adjustment 3824 resulting from the special Rate review shall be an adjustment in addition to or in lieu of the 3825 annual Rate adjustment to be performed in accordance with Section 8.2.C above. 3826 5. Burden of Justification. Contractor shall bear the burden of justifying to the City by 3827 substantial evidence any entitlement to current, as well as increased, Rates under this 3828 Section 8.4. If the City determines that the Contractor has not met its burden, the Contractor 3829 may request a meeting with the City Manager or their designee to produce additional 3830 evidence. Upon such request, the City shall permit said additional hearing. In the event the 3831 City denies Contractor’s request, Contractor shall have the right to present its claim in a court 3832 of competent jurisdiction, except for a claim under Section 8.4.B.1.e for which the City’s 3833 decision shall be binding and shall not be subject to such right. 3834 6. Grant of Request. Based on evidence the Contractor submits, the City Council may grant 3835 some, all, or none of the requested increase and approve adjusted Rates. 3836 7. Compensation. The Party requesting the special Rate review shall bear all reasonable costs 3837 of both Parties for participating in such review up to a maximum of forty thousand dollars 3838 ($40,000) per Party and such costs shall not be reimbursed through Rates charged 3839 Customers. If a special Rate review occurs in response to a City-directed change in scope 3840