The following annual and special rate adjustments shall be made to the total rate provided for in a franchise agreement. However, no rate adjustment shall be implemented for or during any period of time when the affected grantee is not in substantial compliance with all material provisions of the County Code or the franchise agreement.
(a) Cost of Living Adjustment. A cost of living adjustment set forth in a franchise agreement should be based on appropriate consumer or product price indices and the adjustment shall be a pass through of 100 percent of any increase or decrease as a part of the total rate.
(b) Landfill Disposal Facility Fee. The landfill disposal facility fee adjustment shall be the pass through of 100 percent of any increase or decrease in the fee charged to the grantee for use of a landfill disposal facility approved for use by the Division, calculated on a per subscriber basis, and shall be effective as of the date of the change to such fee.
(c) Franchise Fee Adjustment. The franchise fee adjustment shall be the pass through of 100 percent of any increase or decrease in the franchise fee and shall be effective as of the date the franchise fee increase or decrease is payable by the grantee.
(d) Extraordinary Adjustment. The franchise agreement may allow for adjustments to the total rate to account for infrequent extraordinary events which, although they do not prevent either party from performing and do not implicate force majeure provisions, they nevertheless increase the cost of providing service such that grantee's compensation and the rate adjustment mechanism provided in the franchise agreement result in grantee's suffering losses which are substantially outside the commercially reasonable expectations of the parties. In no event shall any extraordinary adjustment be effective prior to the Board's approval of an amendment to the applicable franchise agreement.
(e) Change in Service Level Adjustments.
(1) The total rate shall be increased (or decreased) by 100 percent of the increase (or decrease) or incremental increase (or incremental decrease), as the case may be, in the demonstrable costs (i.e., on any direct or indirect cost, whether fixed or variable) associated with the change in the level of the solid waste handling services which may be required of, or agreed to by, a grantee. A change in service level adjustment shall be effective on and after the actual date of the requirement to or agreement to change operations which results from the change in service, but, absent the consent of the division, not sooner than the effective date of the change in service. In no event shall any change in service level adjustment be effective prior to the Board's approval of an amendment to the applicable franchise agreement.
(2) In the event that the Division and the grantee claiming to be affected by the change in service level cannot agree on either the existence, or the effect on demonstrable costs, of a change in service level, the dispute resolution provisions of the franchise agreement shall apply.
(f) Change in Law Adjustments.
(1) The total rate shall be increased (or decreased) by 100 percent of the increase (or decrease) or incremental increase (or incremental decrease), as the case may be, in the demonstrable costs (i.e., on any direct or indirect cost, whether fixed or variable) associated with the change in the manner or nature of conducting solid waste handling services necessitated by a change in law. A change in law adjustment shall be effective on and after the actual date of the change in operations which resulted from the change in law, but, absent the consent of the Division, not sooner than the effective date of the change in law. In no event shall any change in law adjustment be effective prior to the Board's approval of an amendment to the applicable franchise agreement.
(2) In the event that the Division and the grantee claiming to be affected by the change in law cannot agree on either the existence, or the effect on demonstrable costs, of a change in law, the dispute resolution provisions of the franchise agreement shall apply.
(Ord. 4385, passed - -2020; Am. Ord. 4434, passed - -2022; Am. Ord. 4460, passed - -2023)