CC Resolution No. 9462 (10-02-95)RESOLUTION NO. 9462
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CUPERTINO AMENDING RESOLUTION NO. 8497, SOLID
WASTE FRANCHISE AGREEMENT BETWEEN THE CITY OF
CUPERTINO AND LOS ALTOS GARBAGE COMPANY TO
CORRECT THE RATE ADJUSTMENT FORMULA
BE IT RESOLVED that Article IV, Section 4.5, Future Rate Adjustments, of the
Franchise Agreement between the City of Cupertino and Los Altos Garbage Company be
amended to read as follows:
4.5. Future Rate Adjustments
Company and City agree that each of the rates shown on the Schedule of
Approved Rate in effect as of June 30 of each year (the "Base Year ") shall, commencing
in 1990, be adjusted (either increased or decreased) effective as of September 1 (The
"Rate Adjustment Date'), by the percentage increase or decrease (the "Rate Adjustment')
that is calculated pursuant to the following formula, which the parties understand and
agree appropriately considers both growth and cost of living factors:
Rate Adjustment = CPI R(.25 . +.25 . +.50 PI)- (6R +.7C +.
C B R(.25L +.25E +.50CPI) I
where the terms of the formula shall have the following meaning:
BR = Base Revenue, or revenue anticipated for the Base Year ending on June 30
excluding adjustments granted for cost of living increase or non - scheduled
adjustments granted in the previous twelve months.
L = The net percentage change during the May to May Year in the
Employment Cost Index (compensation), as published by the U. S.
Department of Labor, Bureau of Labor Statistics. (May statistics)
E = The net percentage change during the May to May Year in the Gross
National Product Implicit Price Deflator for Producer's Durable
Equipment (non - residential), as published by the U. S. Department of
Labor, Bureau of Labor Statistics. (May statistics)
RESOLUTION NO. 9462 Page 2
R = The net increase in revenue for residential customers above base revenue
(can service).
C = The net increase in revenue for commercial accounts above base revenue
(container type).
D = The net increase in revenue for roll -off debris box service above base
revenue.
Should any of the aforementioned index values not be published for the month of May
during the Base Year, the rate adjustment calculations shall be performed using the index
values as published for the last month immediately preceding the May in question (or, in
the case of a quarterly- published index, the index value for the quarter including the May
in question). Should any of the indices names in this section be discontinued, a successor
index shall replace the same, provided that any successor index shall be that index which
is most closely equivalent to the discontinued index as recommended by the publishing
agency.
PASSED AND ADOPTED at a regular meeting of the city Council of the City of
Cupertino this 2nd day of October, 1995, by the following vote:
yok Members of the City Council
AYES: Bautista, Burnett, Koppel, Sorensen, Dean
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk
msoluti/res9462.dox
APPROVED:
Mayor, City o pertino