Agmt10 Recology San Mateo County

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• • 3716 assumptions underlying the projections and the support for those assumptions, 3717 giving full effect to the savings or costs to existing services and the rate impact to 3718 affected Customers. 3719 10. Monitoring tools and quantitative measures including: cost per Ton; annual 3720 diversion; and pre - implementation as well as expected post - implementation route 3721 information including cost per route and accounts or lifts per route per Day. 3722 11.07 RATE- SETTING PROCESS 3723 A. General. The Agency shall be solely responsible for establishing and adjusting 3724 Rates as described in this Article. 3725 B. Annual Review Process. The Rates shall be reviewed annually by Agency, 3726 commencing with Rate Year One (2011) and continuing through the remaining 3727 Term including any extension periods. The Agency shall adjust Rates as necessary 3728 to generate annual Gross Revenues Billed equal to Contractor's Compensation 3729 approved for the Rate Year and approved Pass - Through Costs. 3730 If Agency elects to set rates that are below those recommended in the SBWMA 3731 report, (or delays acting to revise rates such that the recommended rates do not go 3732 into effect until after January 1), and the Revenue Reconciliation process conducted 3733 by SBWMA for that Rate Year demonstrates that Net Revenues Billed were less 3734 than the approved Contractor's Compensation contained in the SBWMA report, 3735 interest shall accrue on the difference. Interest shall apply (i) to fifty percent (50 %) 3736 of the difference during the Rate Year in which the shortfall in revenue occurred, 3737 and (ii) one - hundred percent (100 %) of the difference during the immediately 3738 following Rate Year. The interest rate applied to both years shall be the prime rate 3739 in effect when SBWMA issued the report for that Rate Year plus one percent (1 %). 3740 C. Rate Structure. The Agency shall have the sole and exclusive right to change the 3741 relationship of individual Rates in comparison with other Rates and to allocate total 3742 costs among Service Sectors and Lines of Business. However, Agency will not 3743 establish rates for Backyard Collection service less than the cost for Contractor to 3744 provide Backyard Collection Service specified in Attachment Q without considering 3745 Contractor's written comments regarding the proposed change. If a change in the 3746 Rates charged for Backyard Collection service or Curbside Collection service 3747 causes a Customer migration from one to the other which in turn increases or 3748 decreases Contractor's annual cost of operation by two percent (2 %), or more, 3749 either party may initiate a special compensation review as specified in Section 3750 11.05. 3751 If at any time Contractor believes that a Rate not included in the Agency approved 3752 Rate schedule would be necessary or useful, Contractor shall notify the Agency and 3753 recommend establishment of such Rate. For example, if a Customer requests 3754 Collection of a fifteen (15) cubic yard Compactor five (5) times per week and the 3755 Agency- approved Rate schedule does not include this level of service, the 3756 Contractor shall recommend that the Agency establish a Rate for this level of 3757 service. Franchise Agreement for Collection Services with Recology San Mateo County City of Redwood City ATTY /AGR/2010.014 040510 Page 93 of 115 •