Forecasted annual cost of operations for 2013. The forecasted annual cost of operations shall consist of the sum of: Forecasted labor-related costs Forecasted vehicle-related costs Forecasted other costs Forecasted depreciation expense Each of these sums shall be reviewed based on the following:
6.3.1.1 Determination of actual costs. Company's financial statement will be reviewed to determine Company's costs for each of the foregoing categories during the fiscal year involved. District will determine that costs have actually been incurred and have been assigned to the appropriate category.
6.3.1.2 Adjustment of actual costs. District may adjust the actual costs in two ways: (1) to exclude any non-allowable costs, set out below, and (2) to exclude and/or reduce any costs that were not reasonably and necessarily incurred in the performance of the services provided in accordance with this Agreement. Costs that may be deemed non-allowable include, but are not limited to, the following:
6.3.1.2.1 The forecasted costs of operations for
6.3.1.2.2 The forecasted costs of Operations for MFD Recycling Service.
6.3.1.2.3 The following costs associated with the SFD Organic Waste Collection Service:
6.3.1.2.3.1 Ten percent (10%) of the forecasted SFD Organic Waste Collection Service tonnage times the tipping fee at the Organic Waste Processing Facility; and
6.3.1.2.3.2 Ninety percent (90%) of the forecasted SFD Organic Waste Collection Service tonnage times the difference between the Organic Waste tipping fee at the Organic Waste Processing Facility minus the tipping fee for Green Waste at the Organic Waste Processing Facility.
6.3.1.2.4 The forecasted cost of operations associated with the MFD Organic Waste Collection Service.
6.3.1.2.5 Payments to directors and/or owners of Company unless paid to reasonably compensate for services actually rendered.
6.3.1.2.6 Promotional, entertainment, and travel expenses, unless authorized in advance by District.
6.3.1.2.7 Payments to repair damage to property of District or other parties, including the City or County for which Company is legally liable.
6.3.1.2.8 Fines or penalties of any nature.
6.3.1.2.9 Liquidated damages assessed under Section 10.3 of this Agreement.
6.3.1.2.10 Federal or state income taxes.
6.3.1.2.11 Charitable or political donations.
6.3.1.2.12 Attorney's fees and other expenses incurred by Company in any court proceeding in which District and Company are adverse parties, unless Company is the prevailing party in said proceedings.
6.3.1.2.13 Attorney's ...
