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than the price currently being paid per ton. Currently the cost is $86.27 per ton and the estimated cost at a new Processing Facility is $171.62. Based on the highest year of commercial tonnage processed the anticipated annual increase in cost is $266,335. PGS has expressed that they would not be able to pay for these additional costs for two years until the Rate Period 7 where they will have a Cost-based Rate Adjustment. City Staff are in agreement and provided the Amendment below to ensure that if PGS is notified that some or all of the City's Organic Materials cannot be accepted at the Approved Processing Facility, the City in good faith will direct the necessary change to ensure that PGS remains financially solvent and is able to continue to provide the required services to the City as provided in the Agreement. Under the Agreement, by the City directing a change or addition of an Approved Processing Facility, a Special Rate Review may be conducted to recoup additional costs and new rates may be set. The amendment is as follows: -The City shall direct a change to a new Approved Organic Materials Processing Site in the event that the Approved Organic Materials Processing Site is no longer able to Process some or all of the City's Organic Materials due to State or local permit requirements that change the acceptability of Organic Material type(s). The Contractor shall notify the City in writing immediately and provide documentation identifying concerns (e.g., letter from Approved Processing Site, Permit citing the noted restrictions). The City shall review the materials submitted and work responsively with Contractor to understand the scope of the concerns identified. Upon verification of the information provided by the Contractor, the City shall direct a change to the Contractor to deliver Organic Materials to a new Approved Organic Materials Processing Site and/or may add an additional Approved Organic Materials Processing Site. As outlined in Section 8.4.A of the Agreement, as the result of a City-directed change in the Approved Organic Materials Processing Site, a Special Rate Review will be conducted. The Special Rate Review will be conducted expeditiously as outlined below. 1. The City will notify the Contractor within five (5) days of written notification by Contractor, directing the change and/or addition of an Approved Organic Materials Processing Site. 2. The Contractor will provide to the City within fourteen (14) days of City notice directing a change to (or addition of) the Approved Organic Materials Processing Site the following information: a. Draft agreement with Organic Material Processing Site that outlines the term of the agreement and cost of the service. b. Facility name, Owner, operator, address, contact person and telephone number. Page 9 of 22