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July 15, 2024 Page 45 City of San Leandro/ACI Franchise Agreement Program” pursuant to Section 14581(a)(5)(A) or the “Curbside Supplemental Payments Program” 1779 pursuant to Section 14549.6 of the California Public Resources Code (the California Beverage Container 1780 Recycling and Litter Reduction Act). All such funds, whether received by the Contractor, the Designated 1781 Recyclable Materials Processing Facility operator, the City, or the County have been considered in the 1782 establishment of Rates for services provided under this Agreement and shall be recognized as revenue to 1783 be reflected accordingly in setting of Rates, except to the extent already included in calculating Recyclable 1784 Materials Processing fees, and except for the calculation of reimbursement fees in Article 7. 1785 8.2 RATES AND ANNUAL ADJUSTMENTS 1786 A. General. The City Manager or the City Manager’s designee shall be responsible for approving Rates 1787 as described in this Article. If at any time during the Term of the Agreement, the Contractor 1788 determines the need for a Rate that does not appear on the City-approved Rate schedule in Exhibit 1789 G2, Contractor shall immediately notify the City and request establishment of such Rate. For 1790 example, if a Customer requires Collection of Organic Materials in a fifteen (15) cubic yard 1791 Compactor five (5) times per week and the City-approved Rate schedule does not include this level 1792 of service, the Contractor must request that the City approve a Rate for this level of service. 1793 Approval of Rates may be made by the City Manager or the City Manager’s designee. 1794 B. Rates for Rate Period One. The Parties agree that the rate adjustment mechanism described in 1795 Exhibit E1 shall be applied to Contractor’s proposed Rates for Rate Period One, which are presented 1796 in Exhibit G2, in order to escalate Contractor’s proposed pricing for Rate Period One to Contractor’s 1797 compensation. Each Index used to perform such adjustment for Rate Period One shall assume 1798 seventeen twelfths (17/12) of the percentage change in that Index from October 2023 through 1799 September 2024; provided, however, that wages and benefits for workers subject to collective 1800 bargaining agreements shall be adjusted to the current amounts in effect immediately prior to 1801 submission of the application. Contractor shall submit its application for the adjustment of Rates 1802 for Rate Period One in accordance with Exhibit E1, no later than November 1, 2024. The Rates for 1803 Rate Period One shall be effective from February 1, 2025 through June 30, 2026. 1804 C. Rates for Subsequent Rate Periods. Rates for subsequent Rate Periods shall be adjusted annually 1805 in accordance with this Section 8.2 and Exhibit E. Rates for Rate Periods Two, Three, Five, Six, Seven, 1806 Nine, and Ten shall be adjusted in accordance with Exhibit E1, Multi-Index Rate Adjustment 1807 Methodology. Rates for Rate Periods Four and Eight shall be adjusted in accordance with Exhibit E2, 1808 Cost-Based Rate Adjustment Methodology. Subsequent Rate Periods shall be adjusted annually in 1809 a method mutually agreed upon by the Parties. 1810 The index-based adjustment, which is described in Exhibit E1, involves use of various cost 1811 adjustment factors (such as the percentage change in the consumer price index and changes in 1812 Tonnage and tipping fees) to calculate adjusted Rates. Such Rate adjustment calculations shall be 1813 performed in strict conformance to the procedures described in Exhibit E1 and shall be subject to 1814 the rate adjustment factor provisions of E1. 1815 The cost-based methodology, which is described in Exhibit E2, involves a review of Contractor’s 1816 actual costs and revenues and projection of costs and revenues for the coming Rate Period. This 1817 cost-based Rate adjustment shall be performed instead of the index-based Rate adjustment for Rate 1818 Periods Four and Eight. Such Rate adjustment calculations shall be performed in strict conformance 1819 Docusign Envelope ID: 908A450D-1F36-4C09-B8A4-C1D639B5A05A