RES 221299 - Laserfiche WebLink

City of Pleasanton Exhibit H: Index-Based Rate Adjustment Mechanism Franchise Agreement with Pleasanton Garbage Service City of Pleasanton Page H-7 June 7, 2022 4. RATE ADJUSTMENT FACTOR The Rate Adjustment Factor shall equal the Total Calculated Costs for the coming Rate Period divided by the Total Calculated Costs for the then-current Rate Period, which shall be rounded to the nearest thousandth. 5. ADJUSTMENT OF RATES Each then-current Rate shall be multiplied by the Rate Adjustment Factor to calculate the effective Rate for the coming Rate Period. The adjustment to each Rate shall be rounded to the nearest cent. 6. POSSIBLE CARRY FORWARD OF RATE ADJUSTMENTS ABOVE SIX PERCENT (6%) If Rates for the coming Rate Period (expressed in dollars) exceed Rates for the current Rate Period by more than six percent (6%), calculated as provided below, then City may elect to defer (carry forward) the excess to the subsequent Rate Period in accordance with this Section. The City’s deferral right shall apply only to increases in Rates resulting from application of the methodology set forth in this Exhibit H. Total Calculated Costs for a given Rate Period, adjusted as necessary to comply with the foregoing requirements, shall be referred to herein as “Adjusted Total Calculated Costs.” Adjusted Total Calculated Costs for a given Rate Period includes any Cap Carry Forward from the previous Rate Period. In each of its applications to establish Rates, Contractor shall include its calculation of: (A) Adjusted Total Calculated Costs for the coming Rate Period , (B) Adjusted Total Calculated Costs for the current Rate Period, (C) the difference between the two (calculation: C = A - B), and (D) the amount, if any, by which such difference exceeds six percent (6%) of Adjusted Total Calculated Costs for the current Rate Period (calculation: D = C - (B x 0.06)) (the “Potential Cap Carry Forward”). If the calculation of the Potential Cap Carry Forward results in a negative value, the Potential Cap Carry Forward shall equal zero. The City may elect to carry forward any amount provided that the amount is less than or equal to the Potential Cap Carry Forward. If City elects to defer some or all of the Potential Cap Carry Forward, then: A. Adjusted Total Calculated Costs for the coming Rate Period shall be deemed reduced by such amount; and, B. Adjusted Total Calculated Costs for the subsequent Rate Period shall be increased by such amount (which shall be the “Cap Carry Forward” in the Rate adjustment process for such subsequent Rate Period). City shall not defer any amounts in the final Rate Period of the Term. All amounts that were carried forward shall be reflected in the Cost-Based Rate Adjustment for Rate Period Seven (subject to the provisions of Exhibit I), so that no Cap Carry Forward is calculated or applied for recovery beyond the final Rate Period of the Term. If the amount of the Potential Cap Carry Forward is greater than ten percent (10%) of Adjusted Total Calculated Costs for the current Rate Period, the Parties shall meet and confer to discuss the City’s plan