Agmt05 BFI Waste Systems - Laserfiche WebLink

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1 A. If Contractor diverts from 90% -100% of the annual Commercial Program 2 Guarantees shown in Section 4.05, Contractor shall receive $2,000 for each 1,000 tons 3 diverted above 90% up to 100%. (No credit shall be given for fractions of this 1,000 ton 4 unit.) 5 6 B. If Contractor diverts from 101 % - 200% of the Commercial I'rogram 7 Guarantee shown in Section 4.05, Contractor shall receive $4,000 for each 1,000 tons 8 diverted above 100%. (No credit shall be given for fractions of this 1,000 ton unit and no 9 payment shall be made for tons diverted above 200% of the Commercial Program 10 Guarantee.) 11 12 C. Each year of the Agreement, the amount shown in the Commercial 13 Program Guarantee shall be increased (for purposes of this Section 6.07 only), if the 14 actual amount of diversion is greater than shown in 4.05, to the actual amount of 15 diversion and the diversion tonnage shown in 6.07 A and B above shall be increased as 16 indicated (i.e., 90% to 100% and 101 % to 200% of the actual tonnage diverted). 17 18 6.08 Cost Savings Incentives. Pursuant to the procedure herein described, 19 Contractor is encouraged to achieve cost savings in its operations which will provide 20 extraordinary rate reductions to Agency's rate payers. Contractor may, concurrently 21 with its submittal of reports for the Contractor Compensation modification process 22 submit, in writing, a proposal for any extraordinary Operating Cost savings (a "Cost 23 Savings Program" or "Program"). Agency shall either approve or disapprove the 24 proposed I'rogram. Contractor shall, in cooperation with Agency and SBWMA, 25 establish procedures for the proper accounting of any such Program; provided that if 26 such procedures are not agreed upon, a Program shall not be recommended for 27 approval by Agency. It shall be the function of the accounting procedures to determine 28 actual Operating Cost Savings resulting from implementation of any such Program. 29 In the event actual cost savings in a Rate Year resulting from 30 implementation of a Cost Savings Program equals or exceeds 5/10ths of one percent 31 (0.5%) of the Billings to the Agency's rate payers for such year, Contractor shall be 32 entitled to receive a share of the actual ()perating Cost Savings over the first five years 33 of the Program in addition to Contractor's profits based upon the operating ratio of 91 % 34 described above. In the fifth year (if applicable) and thereafter, rate payers shall receive 35 100% of the benefit of such savings. The distribution of benefits between Contractor 36 and rate payers from any such Program shall be as follows: 37 38 Years 39 Party Benefited 1 2 3 4 5 and above 40 41 % to Contractor 80% 60% 40% 20% 0 42 43 % to Rate I'ayer 20% 40% 60% 80% 100% Atty j Agrj2005.022 060205 -36-