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City of Pleasanton Exhibit H: Index-Based Rate Adjustment Mechanism <br /> Franchise Agreement with Pleasanton Garbage Service <br /> <br />City of Pleasanton Page H-5 June 7, 2022 <br />multiplied by the total Tons of Discarded Materials Collected for the most-recently completed <br />12-month period. When calculating adjustment in Rate Period One to determine Rates for <br />Rate Period Two, the total Tons of Discarded Materials shall be calculated as the average of <br />the Tonnage Collected in July, August, September, and October 2018 multiplied by 12. <br />3. Disposal Costs. The average of the Disposal Cost per Ton (which includes per-Ton Disposal <br />fees, per-Ton environmental fees, and per-Ton government fees) for the then-current Rate <br />Period, and the Disposal Cost per-Ton for the coming Rate Period is multiplied by the total <br />Tons of Solid Waste Disposed in the most-recently completed 12-month period. When <br />calculating adjustment in Rate Period One to determine Rates for Rate Period Two, the <br />average total Tons of Solid Waste Disposed shall be calculated as the average of the Tonnage <br />Disposed in July, August, September, and October 2018 multiplied by 12. <br />4. Net Recyclables Processing Costs. The Net Recyclables Processing Cost per Ton is multiplied <br />by one plus the Annual Percentage Change in the CPI-U and then multiplied by the total Tons <br />of Recyclable Materials Collected for the most-recently completed 12-month period. When <br />calculating adjustment in Rate Period One to determine Rates for Rate Period Two, the total <br />Tons of Recyclable Materials shall be calculated as the average of the Tonnage Collected in <br />July, August, September, and October 2018 multiplied by 12. <br />5. Net Construction and Demolition Debris Processing Costs. The Net Construction and <br />Demolition Debris Processing Cost per Ton for the then-current Rate Period is multiplied by <br />one plus the Annual Percentage Change in the CPI-U and then multiplied by the total Tons of <br />Construction and Demolition Debris Collected for the most-recently completed twelve- <br />month period. When calculating adjustment in Rate Period One to determine Rates for Rate <br />Period Two, the total Tons of Construction and Demolition Debris shall be calculated as the <br />average of the Tonnage Collected in July, August, September, and October 2018 multiplied <br />by 12. <br />6. Net Organic Materials Processing Costs. The Net Organic Materials Processing Cost per Ton <br />for the then-current Rate Period is multiplied by one plus the Annual Percentage Change in <br />the CPI-U then multiplied by the total Tons of Organic Materials Collected for the most- <br />recently completed 12-month period. When calculating adjustment in Rate Period One to <br />determine Rates for Rate Period Two, the total Tons of Organic Materials shall be calculated <br />as the average of the Tonnage Collected in July, August, September, and October 2018 <br />multiplied by 12. <br />7. Interest Expense. Interest Expense is $593,723 in Rate Period One through Eleven, is not <br />annually adjusted, and shall be zero in any subsequent Rate Period unless Parties mutually <br />agree to a different amount. <br />8. Lease Costs. Lease Costs are $365,740 in Rate Period One, annually adjusted by multiplying <br />the Lease Costs for the then-current Rate Period by one plus the Annual Percentage Change <br />in the CPI-U. <br />9. Landfill Maintenance and Closure Costs. Landfill Maintenance and Closure Costs for each <br />Rate Period shall mean the amount to which Contractor is entitled for the prior Rate Period <br />pursuant to the terms of that certain “Agreement Approving an Expenditure of Funds to Close <br />Former Landfill between the City and the Contractor” dated October 7, 1986 and attached as