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City shall make no payment for any extra, further or additional service pursuant to this <br />Agreement unless such extra service and the price therefore is agreed to in writing executed by <br />the City Manager or other designated official of City authorized to obligate City thereto prior to <br />the time such extra service is rendered and in no event shall such change order exceed twenty- <br />five (25%) of the initial contract price. <br />Fees for work performed by Contractor on an hourly basis shall not exceed the amounts <br />shown on the fee schedule of hourly billing included as Attachment B-1. <br />The services to be provided under this Agreement maybe terminated without cause at any <br />point in time in the sole and exclusive discretion of City. In this event, City shall compensate the <br />Contractor for all outstanding costs incurred for work satisfactorily completed as of the date of <br />written notice thereof Contractor shall maintain adequate logs and timesheets in order to verify <br />costs incurred to date. <br />The Contractor is not authorized to perform any services or incur any costs whatsoever <br />under the terms of this Agreement until receipt of a fully executed Purchase Order from the <br />Finance Department of the City of San Leandro. <br />A. Rate Adjustments <br />The CITY or CONTRACTOR may request immediate re-negotiation of rates contained <br />in Exhibit B and B-1 of this Agreement in the event of the following occurrences during <br />the term of this Agreement or any extensions thereof: <br />1. In the event the revenue hours increase by more than 20%, CONTRACTOR may <br />renegotiate with the CITY for a new hourly rate. In the event the revenue hours <br />decrease by more than 2%, CONTRACTOR may renegotiate the hourly rate. <br />2. An increase in federal, state or local mandated minimum wages, payroll taxes or <br />fringe benefits that is applicable to employees on the CONTRACTOR and that <br />was unknown to the CONTRACTOR at the time it submitted the Proposal. <br />Exhibit B Page 2 of 3 <br />G:\Oliver\Paratransit\MV Contract Aug 03 -Feb 04 <br />