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.~ - CGM:yc: 8/21/80 <br /> ORIGINAL <br /> <br /> AMENDMENT TO AGREEMENT <br /> <br /> THIS ~ENDME~T TO AGREEMENT, made and entered into this ~ day of <br /> i~ , 1980, by and between the CITY OF REDWOOD CITY', <br /> <br /> a municipal corporation of the State of California, hereinafter <br /> referred to as "City," and BROWNING-FERRIS INDUSTRIES OF SAN MATEO <br /> COUNTY, INC., a wholly owned subsidiary of Browning-Ferris Industries, <br /> Inc., hereinafter referred to as "Company"; <br /> <br /> W I TN E S S E T H : <br /> <br /> WHEREAS, City and Company desire to amend an agreement dated <br /> July 30, 1979, to provide for procedures to determine garbage and <br /> refuse collection rate modification and adjustment; <br /> <br /> NOW, THEREFORE, it is hereby agreed as follows: <br /> <br /> 1. Paragraph 18 of that certain agreement by and between City <br /> and Company, dated July 30, 1979, is hereby amended to read as follows: <br /> <br /> "18. Rate Modification and Adjustment. The rates estab- <br /> lished pursuant to this agreement between the City and Company <br /> have been established after consideration of Company's rate of <br /> return on investment and of all operating costs, interest <br /> payments, corporate taxes and a reasonable return as to profits <br /> for Company commensurate with the Operating Ratio Method. Said <br /> operating ratio shall be arrived at by dividing net consolidated <br /> operating expenses of Company (exclusive of intercompany profits) <br /> required for furnishing refuse collection and disposal service <br /> to City divided by revenues produced within City. Said <br /> operating ratio shall allow a maximum of 87.5 percent and a <br /> minimum of 85 percent of service revenues to cover operating <br /> expense with the difference between 100 percent being allowed <br /> <br /> <br />