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<br />REV: 03-16-18 MI <br />ATTY/AGR/2018.054/RECOLOGY OF SAN MATEO <br />Page 94 of 119 <br />requested up to a maximum of sixty thousand dollars ($60,000). Costs of a review 3867 <br />requested by Contractor may not be included in Contractor’s Compensation, charged 3868 <br />to Agency or Customers, nor included in the calculation used as rationale to initiate a 3869 <br />special compensation review. 3870 <br />11.06 COMPENSATION ADJUSTMENTS FOR CHANGES IN SCOPE OF SERVICES OR 3871 <br />SERVICE LEVELS 3872 <br />In the event the Agency directs a change in accordance with Section 15.12, an equitable 3873 <br />adjustment in Contractor’s Compensation will be made, effective with the commencement 3874 <br />of the change, to reflect increases or decreases, if any, in Contractor’s Compensation. 3875 <br />The adjustment in compensation will also reflect the corresponding change in profit. The 3876 <br />change in Contractor’s Compensation will therefore consist of the sum of (i) the 3877 <br />incremental change to costs, and (ii) profit adjustment at the allowed operating ratio of 3878 <br />ninety and one-half percent (90.5%). 3879 <br />Within forty-five (45) Days of a request by Agency to initiate a change in service, 3880 <br />Contractor shall present a proposal to Agency containing a complete description of the 3881 <br />following, if and to the extent applicable: 3882 <br />1. Collection methodology to be employed. 3883 <br />2. Equipment to be utilized (number of vehicles, types, capacity, age, etc.). 3884 <br />3. Labor requirements (number of employees by classification). 3885 <br />4. Type of Containers to be used. 3886 <br />5. Description of program publicity/education/marketing materials to be developed. 3887 <br />6. Estimated Tonnage to be diverted and the methodology for determining that diverted 3888 <br />Tonnage. 3889 <br />7. Anticipated impacts of the change, if any, on performance incentive and disincentive 3890 <br />measures included in Attachment I. 3891 <br />8. Description of end uses of Collected material. 3892 <br />9. Three (3) year projection of the financial impact of the program's operations in a 3893 <br />balance sheet and operating statement format including documentation of the key 3894 <br />assumptions underlying the projections and the support for those assumptions, giving 3895 <br />full effect to the savings or costs to existing services and the Rate impact to affected 3896 <br />Customers. 3897 <br />10. Monitoring tools and quantitative measures including: cost per Ton; annual diversion; 3898 <br />and pre-implementation as well as expected post-implementation route information 3899 <br />including cost per route and accounts or lifts per route per Day. 3900 <br />11.07 RATE-SETTING PROCESS 3901 <br />A. General. The Agency shall be solely responsible for establishing and adjusting Rates 3902 <br />as described in this Article. 3903 <br />B. Annual Review Process. The Rates shall be reviewed annually by Agency, 3904 <br />commencing with Rate Year Eleven (2021) and continuing through the remaining 3905 <br />Term including any extension periods. The Agency shall adjust Rates as necessary 3906 <br />6.2.B. - Page 107