§ 5.0. BASIS OF PRICES AND METHOD OF PAYMENT  


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  • 5.01 Waste Materials Collection and Disposal Rates. The prices to be paid by LCG for the Collection and Disposal of Waste Material from all Residential Units shall be as shown on Exhibit "B" as adjusted in accordance with Section 5.03 herein, and shall be computed based upon the actual number of Residential Units to which Contractor provided such services during each month of this Contract. LCG shall also pay Contractor the other costs and charges that are approved by LCG, whose approval shall not be unreasonably withheld, as specified in Section 5.02 herein.

    5.02 Tax/Cost Increases. Contractor may petition LCG for additional rate and price adjustments on the basis of increases in cost to Contractor due to the disposal facility being used, changes in local, state, or federal rules, ordinances or regulations, and changes in taxes, fees or other governmental charges (other than income or real property taxes). Except as provided expressly herein, the charges for Contractor's service with respect to this work shall include all taxes, transportation costs and Disposal fees.

    5.03 Modification to Rates

    5.03.1 The Base Residential Rate that may be charged by Contractor for the second and subsequent years of this Contract shall be adjusted to reflect changes in the cost of operations, as reflected by fluctuations in the Consumer Price Index for All Urban Consumers "Garbage and Trash Collection" (the "Garbage Index"), as published by the U.S. Department of Labor, Bureau of Labor Statistics (CPI Series Report ID: CUUR0000SEHG02) and the Average Price Data for Diesel (the "Diesel Index"), as published by the U.S. Department of Labor, Bureau of Labor Statistics (CPI Series Report ID: APU000074717). Beginning November 1, 2009, and every twelve months thereafter (the "Base Residential Rate Modification Date"), the Base Residential Rate shall be increased or decreased for the ensuing twelve-month period in an amount equal to ninety percent (90%) of the net change in the Garbage Index plus ten percent (10%) of the net change in the Diesel Index. All net changes are to be computed as the difference between the index value for the month of September of the preceding year and the index value for the month of September of the current year. The composite change shall be applied to the existing Base Residential Rate to derive the rate that will be applied during the following twelve-month period of the Contract.

    As soon as possible after a Base Residential Rate Modification Date, Contractor shall send to LCG a comparative statement setting out for both the Garbage and Diesel Indices, the following: (1) the index value for the month of September of the preceding year; (2) the index value for the month of September of the current year; (3) the net change; (4) the fractional net change equal to ninety percent (90%) of the net change in the Garbage Index and ten (10%) of the net change in the Diesel Index; (5) the composite change and (6) the modified base residential rate which may be charged by Contractor. On the next billing date after the receipt of the comparative statement, LCG shall pay Contractor or Contractor shall credit LCG, as the case may be, a lump sum equal to any increase or decrease applicable to that portion of the current period which has elapsed and, thereafter, the fees charged by Contractor shall be modified to reflect the modified base residential rate until a different comparative statement is received by LCG. (See Exhibit C for an example of how the Base Residential Rate Modification shall be calculated).

    5.03.2 The fees in Exhibit "B" shall also be increased or decreased, as the case may be, to reflect increases or decreases in Contractor's Disposal rate, including rate modifications at the LCG Compost Facility. However, prior to LCG increasing fees to reflect an increase in Contractor's Disposal rate charged by any facility, other than the LCG Compost Facility, Contractor shall provide justification to LCG of such rate increase in the form of audited accounting statements, which shall clearly show the reason for the increase. Fees shall not be increased without LCG approval, which approval shall not be unreasonably withheld.

    In the event that at any time during the initial 5-year term either the cumulative increases in the Disposal rate, exclusive of the modifications made pursuant to Section 5.03.1, exceeds 20-percent of the initial Disposal rate or LCG is otherwise able to achieve a 20-percent reduction in the Disposal rate, taking into account additional transportation costs if applicable, then LCG shall have the right but not the obligation, to redirect some or all of the Residential Solid Waste collected under this contract to another existing or new Disposal facility. If LCG redirects, Contractor shall obey LCG's order and its rate shall be adjusted accordingly to reflect the new Disposal rate and any changes in the transportation cost, or alternatively, Contractor, may continue to dispose of waste at the then utilized facility, but must adjust the rates to reflect what the rate would have been if the proposed facility would have been used.

    In the event that at any time during a successive 5-year term either the cumulative increases in the Disposal rate, exclusive of the modifications made pursuant to Section 5.03.1, exceeds 20-percent of the Disposal rate at the beginning of the term or LCG is otherwise able to achieve a 20-percent reduction in the Disposal rate, taking into account additional transportation costs if applicable, then LCG shall have the same right but not the obligation to redirect the waste stream as referenced above.

    The following shall apply for purposes of calculating any adjustment to Contractor's fees under this subparagraph: For Residential Units, any fee adjustment shall be based upon each single family residence generating one and one-fifth tons of Solid Waste per year. Where Contractor's Disposal rate is calculated on a truck yard basis, each Residential Unit shall be deemed to generate 4.8 truck yards of Solid Waste per year.

    5.03.3 Contractor shall be entitled to recover the increased labor cost, as defined below, resulting directly from any increase in the minimum wage imposed by law after the onset of this Contract. Such labor cost shall include direct wages paid to employees or contract workers, as well as the administrative surcharge imposed by any contract labor supplier less any discounts, and as to direct employees of Contractor, the cost of the employer portion of Social Security, Medicare, Workers Compensation, Unemployment Compensation (Federal and State), vacation, holiday and overtime pay.

    To calculate the increased labor cost on a per unit per month basis, the following method will be utilized:

    The number of labor hours utilized from the commencement of service under the contract to the end of the last full month prior to the effective date of the change in minimum wage, divided by the number of full months prior to the effective date of the change in minimum wage, times the total adjusted cost per hour, divided by the average number of units for the same period.

    Contractor shall provide LCG with documentation to validate the increase costs incurred within thirty (30) days after the effective date of the increase. The increase shall be retroactive to the effective date of the change in minimum wage.

    5.04 Delinquent and Closed Accounts. Contractor shall discontinue Waste Material Collection Service at any Residential Unit as set forth in a written notice sent to it by LCG. Upon further notification by LCG, Contractor shall resume Waste Material Collection on the next regularly scheduled Collection day. LCG shall indemnify and hold Contractor harmless from any claims, suits, damages, liabilities or expenses (including but not limited to expenses of investigation and attorney's fees) resulting from Contractor's discontinuing service at any location at the direction of LCG.

    5.05 Contractor Billings to City. Contractor shall bill LCG for Waste Material Collection and Disposal services rendered to Residential Units within the City of Lafayette within ten (10) days following the end of the month and LCG shall pay Contractor within fifteen (15) days from receipt of a bill. The number of Residential Units shall be based on a certified copy of the Lafayette Utilities System's current billing records. Such billing and payment shall be based on the price rates and schedules set forth in this Contract. Contractor shall be entitled to payment for service rendered to Residential Units irrespective of whether or not LCG collects from the customer for such service.

    For the Residential Units within the Rural Area of the Parish, Contractor shall provide the billing and collection of payment process for each rural Residential customer for whom Contractor is providing Collection and Disposal services individually, at Contractor's own expense. Such billing shall be based on the price rates and schedules set forth in this Contract. Contractor may bill the individual rural Residential customer in advance (either monthly, bimonthly, but not to exceed quarterly). Should the rural Residential customer not pay the invoice in a timely manner (more than fifteen (15) days delinquent, after the beginning of a new billing period), Contractor has the right to refuse to provide Collection Service, and the Contractor shall immediately inform LCG at which time the Environmental Service Fee will be deducted from the amount due LCG.

    Contractor's base price for the Collection and Disposal of each Residential Unit in the Rural Area shall include an LCG Environmental Services Fee of $2.64 per month per Rural Residential Customer. The Environmental Services Fee shall be adjusted in accordance with changes to this fee authorized by LCG. The Environmental Services Fee must be itemized on the rural Residential customer's bill. Contractor shall be required to remit to LCG, no more than fifteen (15) days after the end of the previous calendar month, the Environmental Services Fee per month per Rural Residential Customer for the higher of the actual number of Rural Residential Customers collected. The Contractor shall increase (or decrease) its monthly service fee by the exact corresponding dollar amount to the Rural Residential Customer.

    5.06 Audit. Contractor shall maintain all books, documents, papers, accounting records and other evidence pertaining to all operations relating to this Contract and shall make such materials available at its respective offices at all reasonable times during the Contract period and for three (3) years from the date of final payment under this Contract, for inspection by LCG or its duly authorized auditor and copies thereof shall be furnished if requested. All Audits will be conducted in a manner that minimizes interruption of Contractor's daily activities and shall be paid for by LCG.

    (Ord. No. O-216-2008, Exh., 11-4-08)

    The current Base Residential Rate is reflected in Exhibit B.