Common use of Rate Modification Clause in Contracts

Rate Modification. Service Provider may apply to the City in writing for consideration of a special rate review should an unforeseen event or circumstance arise which jeopardizes the economic operations of the Service Provider. A special rate review application shall be considered at the request of the Service Provider if one or more of the following occurs: a. Landfill tip fees change by more than five (5) percent; or b. Accumulative operating costs over which Service Provider has no control change by more than ten (10) percent. Any change in rates shall be at the discretion of the City Council. At least fifteen (15) days prior to any decision by the City Council, the Service Provider shall submit to City staff complete and accurate financial data showing its operating costs, revenues, and rate of-return for operations under this Agreement. City staff may request, and Service Provider agrees to provide, other or additional records as may be necessary to fully review Service Provider’s operations and rate requests. All such financial information submitted to the City shall be kept confidential. The City Council may grant a special rate request, or grant the request in part. The Council shall not unreasonably withhold granting the request in part or in full. Any change in customer rates shall be confirmed in a written amendment to this Agreement, which shall take effect no sooner than thirty (30) days from the date of the Council decision. Special rate review requests notwithstanding, the City Council shall review trash and recycling service rates annually as part of its regular budgeting process.

Rate Modification. Service Provider may apply to the City in writing for consideration of a special rate review should an unforeseen event or circumstance arise which jeopardizes the economic operations of the Service Provider. A special rate review application shall be considered at the request of the Service Provider if one or more of the following occurs: a. Landfill tip fees change by more than five (5) percent; or b. Accumulative operating costs over which Service Provider has no control change by more than ten (10) percent. Any change in rates shall be at the discretion of the City Council. At least fifteen (15) days prior to any decision by the City Council, the Service Provider shall submit to City staff complete and accurate financial data showing its operating costs, revenues, and rate of-return for operations under this Agreement. City staff may request, and Service Provider agrees to provide, other or additional records as may be necessary to fully review Service Provider’s operations and rate requests. All such financial information submitted to the City shall be kept confidential. The City Council may grant a special rate request, or grant the request in part. The Council shall not unreasonably withhold granting the request in part or in full. Any change in customer rates shall be confirmed in a written amendment to this Agreement, which shall take effect no sooner than thirty (30) days from the date of the Council decision. Special rate review requests notwithstanding, the City Council shall review trash and recycling service rates annually as part of its regular budgeting process.