AgdaPkt 2017-05-22 Joint SA PFA - Laserfiche WebLink

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Page | 18 SBWMA Recology Negotiations FAX Report 4/20/17  It continues to use published indices to adjust Base Contractor’s Compensation, rather than Recology’s actual costs. New indices have been selected to more appropriately reflect changes to the Bay Area’s costs.  An annual adjustment to Base Contractor’s Co mpensation for changes to customer subscription levels has been provided. This adjustment uses a 3 -year rolling average of customer subscription to moderate fluctuations.  Only 50% of the increase in depreciation up to $700,000 resulting from the increase in cost of the replacement collection vehicle fleet is compensated to Recology.  A new 5% cap on the annual increase to Base Contractor’s Compensation has been agreed to by Recology. Any excess amount will roll-forward to the following year to be compensated but such roll-forward amount will still be subject to the 5% cap in the following year. Should the roll -forward amount equal more than 10% of Base Contractor’s Compens ation, the Agency and Recology shall meet and confer to discuss the Agency’s plan to compensate Recology for the roll forward amount during the remaining term of the current Agreement. The Amended and Restated Agreement modifies the current method of calculating each Member Agency’s Base Contractor’s Compensation. Currently, total Base Contractor’s Compensation is determined and then it is allocated among the Member Agencies. The new method starts with the agreed upon 2021 Total Base Contractor’s Compensa tion and allocates these costs among the Member Agencies. Thereafter, each Member Agency’s Base Contractor’s Compensation will be adjusted in accordance with the change in the indices and for its own change to customer subscriptions, without regard to any other Member Agency’s change to customer subscriptions. Other Key Terms and Conditions Other non-financial changes that were made include the discussion of a Public Education and Technical Assistance Plan, and the type of vehicles that may be selected c ome the new term. Both are outlined below. Prior to 2021, and every three years thereafter, Member Agencies, the SBWMA and Recology will jointly develop a Public Education & Technical Assistance Plan. The plan will include specific objectives, tasks, performance standards, reporting requirements and costs. This will allow the Plan to be responsive to the then current conditions, local policies and State requirements. Should the Plan require costs beyond those included in the Base Contractor’s Compensation, the parties shall meet and confer to agree upon an appropriate compensation amount and the allocation of that amount among the Member Agencies. Prior to the replacement of the existing fleet of collection vehicles (estimated in year 2023), the Member Agencies, SBWMA and Recology shall agree on the type of replacement vehicles. This will allow the parties to consider current conditions, the then available technologies and their costs, local policies and State requirements. Should the Plan require costs beyond those included in the Base Contractor’s Compensation, the parties shall meet and confer to agree upon an appropriate compensation amount and the allocation of that amount among the Member Agencies. 7.A - Page 28