Common use of Rate Review Clause in Contracts

Rate Review. 8.3.1 Franchisee shall submit to County an application for rate analysis and adjustment every three (3) years unless otherwise agreed between Franchisee and County or as otherwise provided in this Agreement, except as that may be modified by County from time to time. In addition, Franchisee shall submit any and all data requested by and in the format prescribed by County. In the event Franchisee shall fail to meet the schedule, a revision of rates for the following year shall not be authorized until the first day of the first calendar month following a one hundred twenty (120) day period from the date that the complete application is submitted and such revision shall contain no consideration for Franchisee's failure to submit the application in accordance with the schedule. 8.3.2 If at any time during the term of this Agreement, Franchisee requests and is granted a rate increase by County that when the new rate is compared to the rate at the effective date of this Agreement exceeds the cumulative cost of living increases from the effective date of the Agreement, County shall have the option of terminating the Agreement. The cumulative cost of living is based on the Consumer Price Index. By example, if a rate increase results in an overall cumulative six percent (6%) increase in rates since the effective date of this Agreement, and the Consumer Price Index for that same period would indicate a cumulative increase of five point eight percent (5.8%), then County shall have the option of terminating the Agreement, without further process and procedures as would be required by a default or breach circumstance. Such option to terminate shall be available for a period of nine (9) months following the effective date of the rate increase by the Board of Supervisors. Rate increases that result from County’s designation of a disposal site area not included in the computation of the cumulative rate increases granted to Franchisee. 8.3.3 When calculating the change in the rate, costs resulting from Article 7, Payments to County, Section

Rate Review. 8.3.1 Franchisee shall submit to County an application for rate analysis and adjustment every three (3) years unless otherwise agreed between Franchisee and County or as otherwise provided in this Agreement, except as that may be modified by County from time to time. In addition, Franchisee shall submit any and all data requested by and in the format prescribed by County. In the event Franchisee shall fail to meet the schedule, a revision of rates for the following year shall not be authorized until the first day of the first calendar month following a one hundred twenty (120) day period from the date that the complete application is submitted and such revision shall contain no consideration for Franchisee's failure to submit the application in accordance with the schedule. 8.3.2 If at any time during the term of this Agreement, Franchisee requests and is granted a rate increase by County that when the new rate is compared to the rate at the effective date of this Agreement exceeds the cumulative cost of living increases from the effective date of the Agreement, County shall have the option of terminating the Agreement. The cumulative cost of living is based on the Consumer Price Index. By example, if a rate increase results in an overall cumulative six percent (6%) increase in rates since the effective date of this Agreement, and the Consumer Price Index for that same period would indicate a cumulative increase of five point eight percent (5.8%), then County shall have the option of terminating the Agreement, without further process and procedures as would be required by a default or breach circumstance. Such option to terminate shall be available for a period of nine (9) months following the effective date of the rate increase by the Board of Supervisors. Rate increases that result from County’s designation of a disposal site area not included in the computation of the cumulative rate increases granted to Franchisee. 8.3.3 When calculating the change in the raterate for the purpose of comparison with the cumulative Consumer Price Index, costs resulting from Article 7, Payments to County, SectionSection 4.5 County Request to Direct Changes and new, mandated regulatory costs will not be included. However, a) any increase resulting from an increase in the pass-through costs associated with the processing and/or disposal of Solid Waste shall not be included in the rate change calculation, and b) any increase resulting from an increase in the pass-through costs associated with the processing and/or disposal of Recyclable Material including greenwaste shall be included in the rate change calculation, unless a recycling, disposal or processing facility has been designated by County. 8.3.4 If Franchisee chooses to operate in any manner or use facilities that cause increased costs, County is not obligated to include those costs in setting a reasonable rate of return. 8.3.5 In the event Franchisee intends to request inclusion of the expenses of recycling and waste reduction information and public education activities through the rate review process, Franchisee shall be required to obtain the prior review and approval of the Director in advance of publication and education. The public education and waste reduction costs shall be stated as a separate line item within all rate review requests.