Agmt10 Recology San Mateo County

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• • ATTACHMENT K CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS c. Statement of Revenues Billed attributable to unscheduled /intermittent service, by Agency. Subtracting the sum of items b and c from a, yields Net Revenue Billed. [The calculation is: a - (b + c) = Net Revenue Billed.] Net Revenue Billed is compared to the approved Contractor's Compensation and the surplus, or shortfall, is determined. The amounts described in items a, b and c for the prior Rate Year must be included in the audited financial statement due by August 1. Any variance between the March 31 data and the final audited data must be explained and the Revenue Reconciliation report revised accordingly. The audited data will be considered in calculating the adjustment to Contractor's Compensation for the following Rate Year. Payment(s) made by Contractor to SBWMA under section 6.02 for transportation and Disposal and supplemental processing fees shall not be subtracted from Gross Revenue Billed. The revenue reconciliation process will not be carried out during the last year of the Term. 9. Preparation and Review of Reports SBWMA staff will prepare a report on its review of the Application. The report will contain SBWMA staff findings on each of the following components of the Application. • Contractor's Annual Costs of Operation (Changes in service levels for Rate Years One and Three only) • Contractor's Pass - Through Costs • Calculated Profit • Revenue surplus or shortfall for the prior Rate Year, based on Revenue Reconciliation • Pass - Through Costs, including Contractor payments to SBWMA for Processing and Disposal and to Agency for Franchise Fees • Total Revenue Requirement for Contractor for the Rate Year • Allocation of Revenue Requirement (and components) to each Member Agency • Recommended overall percentage change in each Agency's rates • Discussion of issues for consideration by Member Agencies, including unresolved disagreements, if any, that Contractor has with the report's findings and recommendations. On or before September 1 of each year, SBWMA staff will provide a draft of its report to Contractor and to each Member Agency for review and shall consider all comments received within ten (10) days after the draft report is released. Agency will be responsible to include in its comments any special or intermittent Agency specific costs that should be included in Contractor's Revenue Requirement for the next year. SBWMA staff will submit the final report to the SBWMA Board of Directors for consideration at a regular or special meeting held before September 30. Upon approval by the SBWMA Board, the report will be distributed to each Member Agency, on or before October 1. Collection Services Franchise Agreement with Recology San Mateo County Attachment K City of Redwood City Contractor's Compensation and Rate Setting Process Page 25 of 26