Adjustment of commercial and residential solid waste disposal rates

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(4) Sixteen cents per mile -Ton, round trip, for transfers to the Disposal Facility. c. Illegally Dumped MSW. Excess Direct Costs incurred by Contractor for the Collection and delivery to the Disposal Facility of illegally dumped MSW Collected in accordance with Section 4.04(b). 9.03 Adjustments. The City shall adjust Contractor's Service Fee for changes in the scope of Services agreed to pursuant to the terms of this Agreement and for taxes or fees paid by Contractor to City in accordance with Section 8.02 or Section 8.03. The City may adjust Contractor's Service Fee upon the written request of Contractor for Uncontrollable Circumstances provided that Contractor shall first apply the proceeds of any insurance available to mitigate or eliminate the need for any such adjustment. 9.04 Offsets. The City may, in its sole discretion, offset against Contractor's Service Fee any amounts due and owing by Contractor to City including, but not limited to, damages, reimbursements for Services performed by the City, any taxes and permit fees and any compensatory and impact fees provided, that City has first given Contractor notice and an opportunity to present to the City Manager the reason(s) why said damages, reimbursements, taxes or fees are not lawfully owed to City. 9.05 Escalation. There shall be no escalation of rates for Commercial or Residential Services provided pursuant to the terms of this Agreement until July 1, 2001, whereupon the escalation shall be as follows: The rates shall be adjusted based upon two components: (1) The Tipping Fee Component and the (2) Service Fee Component. The Tipping Fee Component shall be the average of all tipping fees that Contractor pays for all Refuse it disposes of at a permitted Disposal Facility or a Composting Facility or other site permitted (or exempt from permitting) by the California Integrated Waste Management Board, as appropriate. The Service Fee Component shall include Contractor's operating costs, including, but not limited to labor, equipment and insurance costs. The rate in existence at the time a rate adjustment is requested shall be increased by (the same percentage that the Tipping Fees, as described above, have increased during the twelve months preceding the date that the adjustment is requested) plus (increase the service fee in the same percentage change in the Consumer Price Index for all Urban Consumers for the Los Angeles - Anaheim -Riverside Standard Metropolitan Statistical Area ("Index") for the April preceding the adjustment). Requests for rate escalations hereunder shall be made in writing to the City Manager on or before May 1 st of each applicable year. Rate increases shall not become effective until the first day of July following the date of the written request. All such requests shall contain documentation justifying the basis for the rate increase in accordance with the prescribed formula set forth in this Agreement. RVPU&JLR'.513828 -22- ('111 22- b1I1 qct