Agmt10 Recology San Mateo County

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• 3509 11.02 DETERMINATION OF CONTRACTOR'S COMPENSATION 3510 A. Contractor's Compensation for Rate Year One (2011). Contractor's 3511 Compensation for 2011 shall be determined in 2010. Costs shown on Attachment N 3512 will be adjusted to reflect changes from 2008 when Contractor submitted its 3513 Proposal, for the following factors: 3514 • Inflation; 3515 • Wage rates and benefits for employees covered by collective bargaining 3516 agreements; 3517 • Capital equipment costs; and 3518 • Customer account and service levels. 3519 All as provided in Attachment K, Section 3. 3520 If Contractor enters into a franchise agreement with any other Member Agency which 3521 uses a substantially different methodology for calculating Contractor's Compensation 3522 than that set forth in Article 11 and Attachments K and N of this Agreement, then (i) for 3523 purposes of calculating Contractor's Compensation under this Agreement, Contractor's 3524 costs of providing service to such other Member Agency shall continue to be calculated 3525 and allocated using the methodology set forth in Attachments K and N and (ii) 3526 Contractor's Compensation for providing service to such other Member Agency shall be 3527 as set forth in the franchise agreement between it and Contractor. Any such franchise 3528 agreement shall (i) implement the performance incentives and disincentives provided for 3529 in this Agreement and (ii) require Contractor to pay sums due to SBWMA for delivery of 3530 materials from such Member Agency to the SRDC. 3531 B. Contractor's Compensation for Rate Year Two (2012). Contractor's 3532 Compensation for 2012 shall be based on Contractor's Compensation for 2011 3533 adjusted to reflect inflation, changes in wage rates and benefits for employees 3534 covered by collective bargaining agreements. 3535 C. Contractor's Compensation for Rate Year Three (2013). Contractor's 3536 Compensation for 2013 shall be based on Contractor's Compensation for 2012 3537 adjusted to reflect inflation, changes in wage rates and benefits for employees 3538 covered by collective bargaining agreements, 2013 Customer account and service 3539 levels, and the difference between Contractor's Compensation approved for 2011 3540 and Net Revenues Billed for 2011. The adjustment for Customer account and 3541 service levels shall be the final adjustment made during the Term for those 3542 variables. 3543 D. Contractor's Compensation for Rate Year Four (2014) and Subsequent Years. 3544 Contractor's Compensation shall be adjusted annually, commencing with the 3545 determination of Contractor's Compensation for Rate Year Four (2014) and 3546 continuing through the remaining Term including any extension periods to reflect 3547 inflation, changes in wages and benefits for employees covered by collective 3548 bargaining agreements in effect as of the Commencement Date of this Agreement, 3549 and the difference between Contractor's Compensation approved for the prior year 3550 (e.g., 2012) and Net Revenues Billed for 2012 and similarly for subsequent years. Franchise Agreement for Collection Services with Recology San Mateo County City of Redwood City ATTY /AGR/2010.014 040510 Page 88 of 115