Agmt10 Recology San Mateo County

Browse Search

• • ATTACHMENT K CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS 2. Contractor Accountability for Proposal Assumptions The method of adjusting Contractor's Compensation holds Contractor accountable for several projections and assumptions on which its Proposal was based, and which are incorporated into the baseline costs shown on Attachment N, including: proposed technology, route productivity, Single- Family Container placement assumptions; and recycling /organics participation rates, as follows: • Proposed Technology — No additional adjustments shall be made to Contractor's Compensation if the technology proposed by Contractor does not achieve the intended results or productivity. (If a change in law or regulations requires consideration of new or alternative technology or if the parties mutually agree to consider a change in technology, cost impacts related to the change in technology will be reviewed.) • Route Productivity — The assumptions regarding route productivity directly impact costs related to labor, route hours, vehicles, fuel use, and vehicle maintenance. No adjustments to Contractor's Compensation will be made for differences between route productivity levels assumed in Contractor's Proposal and actual route productivity. • Container Placement (Curbside or Backyard) Rates — Contractor's Proposal was based on its best estimate of the number of Single- Family Dwelling Customers who will place their Containers Curbside for Collection or choose to pay additional fees for backyard Collection. No adjustments to Contractor's Compensation will be made for differences between estimated and actual levels, unless the Agency's adjustment of rates results in a migration between Curbside and Backyard Service resulting in a change of two percent (2 %) in Contractor costs per Section 11.07.C. • Weekly Recycling Participation Levels — Contractor's estimate of the number of Single - Family Dwelling Customers that will be provided weekly Targeted Recyclable Materials and Organic Materials Collection Service is incorporated into the baseline costs shown on Attachment N. No adjustments to Contractor's Compensation will be made for differences between estimated and actual participation levels. 3. Adjustments to Contractor's Compensation The annual process for adjusting Contractor's Compensation is summarized in Table 1. Column One of the table illustrates the adjustment of 2008 costs shown on Attachment N in 2010 to establish Rate Year One (2011) Contractor's Compensation; Column Two describes annual adjustments to determine Contractor's Compensation for Rate Year Two (2012) and each year thereafter. With regard to changes in service levels (i.e., accounts, lifts, and pulls), adjustments to Contractor's costs in 2010 to establish Contractor's Compensation for Rate Year One (2011) and in 2012 to establish Contractor's Compensation for Rate Year Three (2013) will be made as described in Table 1 and 2. Contractor's Compensation will be adjusted by the change in service levels for Rate Year One and Rate Year Three only. No adjustments to reflect changes in service levels shall be made after the adjustments made in 2012, when calculating Contractor's Compensation for Rate Year Three (2013). Collection Services Franchise Agreement with Recology San Mateo County Attachment K City of Redwood City Contractor's Compensation and Rate Setting Process Page 5 of 26