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price stability, adjustments each year will be limited to a maximum of 5.0% and a minimum of 1.0% <br />increase. <br />3.3.4 The rate charged by the Contractor will be adjusted upward or downward to reflect increases or <br />decreases in governmental fees charged to the Contractor that are directly related to the Contractor's <br />operations under this Contract. The Contractor will provide written notice to the City of the fee increase <br />or decrease, with supporting information and an explanation of the methodology for determining the <br />impact of the fee change on the Contractor's rate under this Contract. The City may request additional <br />information from the Contractor. The calculation methodology will be subject to approval by the City <br />Manager. The rate increase or decrease will be implemented by an amendment to this Contract, approved <br />by the City Council. <br />3.3.5 In addition to the above, the Contractor may petition the City for additional rate adjustments at <br />reasonable times based on increases in cost of operations, caused by factors such as revised laws, <br />ordinances, regulations, changes in disposal sites, disposal costs, and for other similar reasons. The <br />Contractor's petition will specifically identify the reasons for the requested adjustment, and its impact <br />upon the Contractor's cost of operations, in unit terms, with an explanation of the methodology used to <br />calculate such impact. The City may request additional information it considers necessary to evaluate the <br />requested adjustment. The City may grant such adjustments through amendments to the contract. If the <br />Contractor and the City do not agree on any rate increase requested by the Contractor, the Contractor may <br />elect to continue the contract at the current rate, or may terminate the contract effective upon 365 calendar <br />days written notice. No such failure to approve will relieve the City from any obligation under the <br />Contract to pay increased rates approved by the City Council under subsection 3.3.1. <br />ARTICLE 4 <br />REVENUE SHARING <br />Section 4.1 The contractor will share revenue from San Marcos recycling commodities based on the <br />following criteria: <br />4. 1.1 The City will receive from the contractor revenue of 10% of commodity market prices for <br />commodities over $80 /ton and volumes exceeding 100 tons per month. February 1, 2012 the parties will <br />renegotiate the revenue share amount which may be increased but not reduced from the 10% level. Such <br />revenue share adjustment shall be based on the first full year operational experience of Contractor's <br />recycling materials facility. <br />4.1.2 The rebate market value will be capped at $120.00 /ton. <br />4.1.3 Commodity prices will be based on average prices from the Official Board Market (Yellow Sheet). <br />4.1.4. The percentage of commodity volumes will be based on an audit of recycling materials received <br />only from the City of San Marcos. The audit will be conducted with a City representative present. The <br />first audit will be conducted in April. In subsequent years the audit will be conducted in October. <br />ARTICLE 5 <br />