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 8 of 24 Agency’s share of Contractor’s Compensation for a given Rate Year (expressed in dollars), adjusted as necessary to comply with the foregoing requirements, shall be referred to herein as “Adjusted Contractor’s Compensation.” Adjusted Contractor’s Compensation for a given Rate Year includes any Cap Carry Forward from the previous Rate Year. In each of its Applications to establish Rates for Rate Years Twelve (2022) onward, Contractor shall include its calculation of: (A) Adjusted Contractor’s Compensation for the coming Rate Year, (B) Adjusted Contractor’s Compensation for the current Rate Year, (C) the difference between the two (calculation: C = A - B), and (D) the amount, if any, by which such difference exceeds five percent (5%) of Adjusted Contractor’s Compensation for the current Rate Year (calculation: D = C - (B x 0.05)) (the “Potential Cap Carry Forward”). If the calculation of the Potential Cap Carry Forward results in a negative value, the Potential Cap Carry Forward shall equal zero. SBWMA shall confirm or correct Contractor’s calculations and include such amounts, for each Member Agency, in its reports on Contractor’s Application. Agency may elect to carry forward any amount provided that the amount is less than or equal to the Potential Cap Carry Forward. If Agency elects to defer some or all of the Potential Cap Carry Forward, then: 1. Contractor’s Compensation for the coming Rate Year shall be deemed reduced by such amount, for purposes of Agency’s obligation to adjust Rates under Section 13 below; and, 2. Contractor’s Compensation for the subsequent Rate Year shall be increased by such amount (which shall be the “Cap Carry Forward”) in the Contractor’s Compensation and Rate setting process for such subsequent Rate Year). Agency may not defer any amounts in the final Rate Year of the Term. All Contractor’s Compensation due to Contractor that was carried forward and not previously compensated to Contractor shall be reflected in the Contractor’s Compensation for the final Rate Year of the Term, so that no Cap Carry Forward is calculated or applied for recovery beyond the final Rate Year of the Term. For purposes of this Attachment K, the final Rate Year of the Term means Rate Year Twenty-Five (2035), or, if the Term is extended under Section 3.03.A of the Agreement, the last Rate Year of the mutually agreed Term. If the Term is extended for up to twelve (12) months under Section 3.03.B of the Agreement, no amounts may be deferred from or to that extension period. If the amount of the Potential Cap Carry Forward is greater than ten percent (10%) of Adjusted Contractor’s Compensation for the current Rate Year, the Parties shall meet and confer to discuss the Agency’s plan to reduce the amount of the Cap Carry Forward with the goal of eliminating the Cap Carry Forward in the coming Rate Years. 6.2.B. - Page 212