AgdaPkt 2018-03-26 Joint SA PFA - Laserfiche WebLink

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ATT ACHMENT K CONTRACTOR’S COMPENSATION AND RATE SETTING PROCESS REV: 03-16-18 MI ATTY/AGR/2018.054/RECOLOGY OF SAN MATEO ATTACHMENT K Page 7 of 24 • Agency Facilities Cart and Bin Solid Waste • Agency Facilities Cart and Bin Targeted Recyclable Materials • Agency Facilities Cart and Bin Organic Materials • Agency Facilities Drop Box • Agency Facilities Venues and Events The total Contractor’s Compensation shall equal the sum of Contractor’s Compensation for each of the above Lines of Business. For purposes of Attachment K, “Multi-Family and Commercial” shall be considered one Service Sector. Table 1 describes the process for adjusting costs for service level changes (in addition to other adjustments to costs). The Parties agree that service level changes shall not be made for Contractor’s Compensation for Single-family and Multi-Family Bulky Item Materials (two On-Call Bulky Collection events) as long as Contractor is subject to the average daily limit of one hundred fifty (150) Bulky Item Collection service events, as set forth in Section 5.05.H of the Agreement. All other adjustments described in Table 1 shall be applicable to the above Service Sectors and Lines of Business. Adjustments for changes in service levels for the above Service Sectors and Lines of Business may also occur in accordance with Section 15.12 of the Agreement. If Contractor’s Compensation is adjusted under the 2009 Franchise Agreement after Rate Year Six (2016) but before Rate Year Eleven (2021) due to a Change in Law or Customer migration under Sections 11.05.A.3 or 11.05.A.4 of the 2009 Franchise Agreement, or an Agency-directed change under Section 15.12 of the 2009 Franchise Agreement, then Contractor’s Compensation for Rate Year Eleven (2021) shall be equitably adjusted to give effect to the change. 5. POSSIBLE CARRY FORWARD OF ANNUAL COMPENSATION ADJUSTMENTS ABOVE 5% If Agency’s share of Contractor’s Compensation for the coming Rate Year (expressed in dollars) exceeds Agency’s share of Contractor’s Compensation for the current Rate Year (expressed in dollars) by more than five percent (5%), calculated as provided below, then Agency may elect to defer (carry forward) the excess to the subsequent Rate Year in accordance with this Section. The purpose of the carry forward mechanism is to smooth Rate adjustments, not to reduce the amount of compensation to which Contractor is entitled. Agency’s deferral right shall apply only to increases in Contractor’s Compensation resulting from application of the methodology set forth in this Attachment K, excluding any Agency-specific costs. The following cost items shall not be subject to deferral or included in deferral calculations: • Any costs listed in Table 1 under the line items “Contract Changes to Specific Agencies” or “Incentives/Disincentives Payments”; • Cost increases under other Sections of the Agreement including, but not limited to, those resulting from Agency-directed changes (Section 15.12) or Changes in Law (Section 11.05); and, • Increases in costs that are not part of Contractor’s Compensation including, but not limited to, Franchise Fees or other Agency fees, or processing and Disposal fees paid by Contractor to SBWMA. 6.2.B. - Page 211