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<br />July 15, 2024 Page 33 City of San Leandro Post Collection <br />4. “CPI-U” means the Consumer Price Index, All Urban Consumers, all items, not seasonally 1264 <br />adjusted San Francisco-Oakland-San Jose Metropolitan Area compiled and published by the 1265 <br />U.S. Department of Labor, Bureau of Labor Statistics. 1266 <br />5. “Fuel Index” means the per-therm price for Core Natural Gas Service for Compression on 1267 <br />customer’s Premises, Schedule G-NGV1, compiled and published by the Pacific Gas and 1268 <br />Electric Company Analysis and Rate Department and reported monthly in its “Gas RateFinder” 1269 <br />publication (http://www.pge.com/tariffs/GRF.SHTML). The February 2024 Fuel Index is 1270 <br />$.1.47892 per therm, which reflects the sum of the customer charge, procurement charge, 1271 <br />transportation charge, and public purpose program (PPP) charge for natural gas service for 1272 <br />compression on customer’s Premises as reported by Pacific Gas and Electric Company. 1273 <br />D. Per-Ton Rate Application. On February 1, prior to the commencement of the Rate Period for which 1274 <br />Per-Ton Rates are to be determined (coming Rate Period), Contractor shall submit to the City 1275 <br />Contract Manager an application requesting the adjustment of Per-Ton Rates for the coming Rate 1276 <br />Period via mail and an electronic copy in Microsoft Excel format with all supporting schedules, 1277 <br />formulas, and calculations via email. For example, on February 1, 2026, the Contractor shall submit 1278 <br />its application for the adjustment of Per-Ton Rates to be effective July 1, 2026, (i.e., Rate Period 1279 <br />Two). 1280 <br />Such Application shall include the Rate adjustment calculation in accordance with this Section and 1281 <br />a copy of the Per-Ton Rate schedule currently in effect. 1282 <br />The City shall evaluate Contractor’s application for mathematical accuracy and consistency with 1283 <br />the requirements of the Agreement and shall have the ability to require changes to the application 1284 <br />prior to approval on the basis of the application’s mathematical inaccuracy or failure to comply 1285 <br />with the procedures defined in the Agreement. Upon City’s agreement that the calculations are 1286 <br />consistent with the requirements of this Agreement and are mathematically accurate, the Per -1287 <br />Ton Rate adjustment (if any) shall be presented to the City Contract Manager and subject to the 1288 <br />City Contract Manager’s final approval, which shall not be unreasonably withheld or delayed. 1289 <br />E. Changes to Government Fees. In the event of changes to or new government fees that are effective 1290 <br />at a time that does not coincide with the annual Rate adjustment, Contractor may notify the City of 1291 <br />the expected increase to any of the Government Fees relating to the Approved Facilities. Contractor 1292 <br />may request such an adjustment if such Government Fees were not in effect on the Effective Date, 1293 <br />or, if in effect on the Effective Date, are increased. Contractor shall notify the City in writing thirty 1294 <br />(30) calendar days after receiving notice of any increase in the Governmental Component to any 1295 <br />such changes in, or imposition of Government Fees. The City may review the Contractor’s 1296 <br />calculation of the adjusted Governmental Component and resulting adjustment of the Per-Ton Rate 1297 <br />for a period of up to thirty (30) calendar days. During this period, the City may request, and the 1298 <br />Contractor shall provide, supporting documentation which justifies the increase. Should the Parties 1299 <br />be in dispute over the adjusted fees at the end of the thirty- (30-) calendar day period, no 1300 <br />adjustment shall be made and the dispute shall be subject to Section 10.9 of this Agreement. Upon 1301 <br />resolution of the dispute, and assuming both Parties agree on the adjustment of the Government 1302 <br />Fee and the resulting adjustment of the Per-Ton Rate, the Contractor shall be entitled to the 1303 <br />adjusted Per-Ton Rate payments retroactively to the effective date of the imposed Government 1304 <br />Fee. 1305 <br />Docusign Envelope ID: C78C62DE-8589-496F-8F5A-DEC38EE5853C