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ARTICLE fi. COMPENSATION AND RATES <br />6.1 RATES <br />The Rates contained in Exhibit F ("Schedule of Rates") are the rates set for the Franchise Services. The <br />Contractor shall bill Customers and collect payment in accordance with the Rates set forth in Exhibit F and <br />pursuant to Article 7. The Rates are set in such a manner as to ensure that the Contractor receives a fair <br />and reasonable rate of return on all services for which the Contractor collects payment . <br />6.2 ADJUSTMENT OF RATES <br />A. Rate Adjustments. Subject to the terms herein, the Contractor shall be entitled to the Rate <br />adjustments specified in Exhibit F. Contractor shall for each Rate adjustment provide the City <br />Representative with a draft adjusted Rate schedule and with all materials and computation reasonably <br />necessary for the City Representative to verify the computation of the new Rates. City Representative <br />shall inform the Contractor within thirty days of receipt, whether the City concurs in the computation of the <br />draft adjusted Rates. Contractor shall inform all customers no less than one month in advance of mailing <br />the first Customer billing based on adjusted Rates. <br />B. Consumer Price Index. Except as otherwise expressly permitted herein, and as otherwise <br />specified in Exhibit F, the Rates may be adjusted by the Contractor as provided herein solely on the basis <br />of the change in Consumer Price Index. Provided, however, that those adjustments in Rates based solely <br />on the change in CPI shall not exceed five (5) percent per annum. The Contractor assumes all risks <br />associated with increased costs of service not reflected in the Rate adjustments made pursuant to Exhibit F <br />and except as provided in Article 6.4. <br />C. Annual Rate Adjustment Beginning with the March 1 prior to the first July 1 for which any Rate <br />adjustment specified in Exhibit F is to be based solely on the change in CPI, and on each subsequent <br />March 1, the Contractor shall use the CPI for the most recent twelve month period of February-January to <br />determine the percentage change in the Rate to take effect on the subsequent July 1. <br />D. Ch n e in he CPI Index. <br />If the CPI is revised during the Term by the United States Department of Labor, such that the index <br />is computed for different months, or with a different frequency, the twelve month period for which the Rate <br />adjustment shall apply shall shift back as few months as are necessary to match the revised dates of <br />publication. For instance, should publication shift to odd numbered months, the twelve month period used <br />for rate adjustment shall shift to January-December. <br />If the CPI is discontinued during the Term by the United States Department of Labor, such other <br />government index or computation with which it is replaced shall be used in order to obtain substantially the <br />same result as would be obtained if the CPI had not been discontinued. <br />fi.3 COMPARISON AND ADJUSTMENT OF RATES AT FIVE, TEN AND FIFTEEN YEARS <br />r:~wpa~scaeWan~tranchiaenewz.wPa ovavoo Page 30 of 59 <br />