Reso25 16369 - Laserfiche WebLink

Browse Search

ATTY/RESO.0108/CC RESO APPROVING AMENDMENT NO. 2 TO RECOLOGY SAN MATEO FRANCHISE AGREEMENT – EXHIBIT B REV: 11-04-25 MI Page 6 of 11 “Agency may from time to time adjust the amount of the fees described in this Article and may establish other fees. Changes in the total amount of fees to be collected by Contractor and remitted to Agency shall not become effective until they are reflected in an adjustment to Contractor’s Compensation and Maximum Rates in accordance with the methodology specified in Article 11 and Attachment K.” 3. ARTICLE 11 – CONTRACTOR’S COMPENSATION AND RATES 3.1 Rate-Setting Process. Section 11.07 shall be amended to read as follows: A. “General. Contractor shall be solely responsible for establishing and adjusting Rates and Charges, subject to Agency’s approval of the Maximum Rates and Maximum Charges pursuant to this Agreement. B. Annual Review Process. The Maximum Rates shall be reviewed annually by Agency, commencing with Rate Year Eleven (2021) and continuing through the remaining Term including any extension periods. Agency shall approve Maximum Rates as necessary to generate annual Gross Revenues Billed equal to Contractor’s Compensation approved for the Rate Year and other approved Pass- Through Costs (such as Disposal and processing costs and Agency fees). If Agency elects to approve Maximum Rates that are below those recommended in the SBWMA report, (or delays acting to revise Maximum Rates such that the recommended Maximum Rates do not go into effect until after January 1), and the Revenue Reconciliation process conducted by SBWMA for that Rate Year demonstrates that Net Revenues Billed were less than the approved Contractor’s Compensation contained in the SBWMA report, interest shall accrue on the difference. Interest shall apply (i) to fifty percent (50%) of the difference during the Rate Year in which the shortfall in revenue occurred, and (ii) one-hundred percent (100%) of the difference during the immediately following Rate Year. The interest rate applied to both years shall be the prime rate in effect when SBWMA issued the report for that Rate Year plus one percent (1%). Interest payment arrangements shall be governed by the July 8, 2015 Memorandum of Understanding between Contractor and SBWMA, which is provided in Attachment S. C. Rate Structure. The Contractor shall have the sole and exclusive right to change the relationship of individual Rates in comparison with other Rates and to allocate total Contractor’s Compensation among Service Sectors and Lines of Business, subject to the Agency’s approval of Maximum Rates for each Service Sector and Line of Business. If a change in the relationship between the Charges or Maximum Charges for Backyard Collection service, on the one hand, and the Rates or Maximum Rates for Curbside Collection service, on the other hand, causes a Customer migration from one to the other which in turn increases or decreases Contractor’s annual cost of operation, either Party may initiate a special compensation review subject to conditions specified in Section 11.05. If at any time Contractor believes that a Maximum Rate not included in the Agency-approved Maximum Rate schedule would be necessary or useful, Contractor shall notify the Agency and recommend establishment of such Maximum Rate. For example, if a Customer requests Collection of a fifteen (15) cubic yard Compactor five (5) times per week and the Agency-