AgdaPkt 2006-09-11 - Laserfiche WebLink

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6.1 C Page 9 which the aspha!#concrete materials are purchased . Ib=The Catifornia Statewide Paving Asphalt Prioe index#or the month in which the bid award for the agreemeni occurred. Q =G2uan#ity in tans of paving asphaft that was used in praducing the quantity of asphalt concrete purchased. 3. The adjustment in price fo�the Engiish Tans of asphalt concrete pu►�chased shalf be shown on the payment invoices. 4. The Cafifomia Statewide Paving Asphal#Price Index is determined each month on the first busir�ss day of fhe month by the Caiifomia Department of Transporta#ian(CaiTrans}using the median of posted prices in effect as posted by Chevrorr, Mabil, and Unocal for the Buena Vista, Huntington Beach, Kem River, �ong Seach, Midway Sunset, and WiEmington�'ields. 5. In #he event that the companies discon�nue posting the3r prices for a f+eld, CatTrans wii!determine an index from the remaining posted prices. CalTrans reserves the right to inGude in the index determinafian the posted prices of additional fields. D. ANNUAL ADJUSTMENT This «�nntract wili cover three(3)eonsecutive flscal years. The compensation for changes to the base bid items,separate from the asphalt prici�►g index,for each subsequent fiscal year shail be subject to annual adjustmeni as set forth below. 1. The San Franasca-Oakiand-San Jose Consumer Price �ndex. All ttems. 1982- 84=100 for Afl Urban Consumers {CPI-Ul published by the U.S. Department of �abor, Bureau of Labor Statistics {the °index") shail be used for the purpose af calcuiating annual compensation increases. The maximum percentage increase for any subsequent year shall be 3% increase ove�the individual bid item rate for the ini�al or preceding contract year. 2. The "Seginning Index"shall be the index published for the initiat year priar to the commencement af the subseque�t"Extension"year. The"Extensian Ir�ex"shall be the index for May published by June 30"' of the current year, prior to the commencement af each subsequent Extension Year. To calculate the annuaf compensation for each subsequent year, the Extension index shall be divided by the Beginning Index, and the resulting factar, not ta exceed 3%, shall be multiplled by the annual compensation of the expiring period. 3. City shatl notify Contradar of each CPI incxease by rnailing a written statement satting forth the ca�culation of the compensation. if the format or camponents af the I�dex change materiaUy, or if the Index is discontinued, then City shalt substitute an index pubtished by the U.S. Deparhnent of Labor, Bureau of Labor Statistics or similar agency which is most nearly equivalent to the Index in effect on the commencement date of the Second Extension. 4. City shall notify Contractor of the substituted index and shall use the substituted index in ihe calcufation of the Ciiy's compensation unless Contractor objects in writing within fifteen (15) days after its receipt of City's notice. If Contractor objects, then the substitute index shail be determined in accordance with the Asphalf Materials Agreement Page 3 nf 6