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impact of the fee change on the Contractor's rate under this Contract. The City may request additional information from the Contractor. The calculation methodology will be subject to approval by the City Manager. The rate increase or decrease will be implemented by an amendment to this Contract, approved by the City Council. 3.3.5 In addition to the above, the Contractor may petition the City for additional rate adjustments at reasonable times based on increases in cost of operations, caused by factors such as revised laws, ordinances, regulations, changes in disposal sites, disposal costs, and for other similar reasons. The Contractor's petition will specifically identify the reasons for the requested adjustment, and its impact upon the Contractor's cost of operations, in unit terms, with an explanation of the methodology used to calculate such impact. The City may request additional information it considers necessary to evaluate the requested adjustment. The City may grant such adjustments through amendments to the contract. If the Contractor and the City do not agree on any rate increase requested by the Contractor, the Contractor may elect to continue the contract at the current rate, or may terminate the contract effective upon 365 calendar days written notice. No such failure to approve will relieve the City from any obligation under the Contract to pay increased rates approved by the City Council under subsection 3.3.1. ARTICLE 4 REVENUE SHARING Section 4.1 The contractor will share revenue from San Marcos recycling commodities based on the following criteria: 4.1.1 The City will receive from the contractor revenue of 10% of commodity market prices for commodities over $80 /ton and volumes exceeding 100 tons per month. February 1, 2012 the parties will renegotiate the revenue share amount which may be increased but not reduced from the 10% level. Such revenue share adjustment shall be based on the first full year operational experience of Contractor's recycling materials facility. 4.1.2 The rebate market value will be capped at $120.00 /ton. 4.1.3 Commodity prices will be based on average prices from the Official Board Market (Yellow Sheet). 4.1.4. The percentage of commodity volumes will be based on an audit of recycling materials received only from the City of San Marcos. The audit will be conducted with a City representative present. The first audit will be conducted in April. In subsequent years the audit will be conducted in October. ARTICLE 5 RECORDS AND REPORTS Section 5.1 The Contractor will file the following records and reports with the City monthly: 5.1.1 Reports of all actions taken by the Contractor to resolve complaints. 5.1.2 Changes in the number of residential units served by the Contractor. 5.1.3 Report of recycling information which includes estimated amount by weight of recyclable 16