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CITY OF ARDEN HILLS, MN CONTRACT FOR THE COLLECTION OF RESIDENTIAL RECYCLABLE MATERIALS Page 18 14.10.1 The processing fee for all recyclable material commodities shall be $66.00 per ton. The city agrees that the processing rate will increase each year by the Consumer Price Index for the Upper Midwest as determined by the Federal Reserve Bank of Minneapolis or by three (3) percent, whichever is less. The price change shall go into effect May 4 of each year. The City will notify the Contractor by the last week of January what the compensation rate will be for the subsequent contact year. 14.10.2 The Revenue Share on all commodities shall be split between the City and the Contractor at a rate of 80% (City)/ 20% (Contractor). 14.10.3 The revenue will be calculated by multiplying the tons of individual material collected by the agreed upon material price. Total revenue shall be calculated by adding all of the revenue generated for each of the materials collected and processed. Contractor shall guarantee a minimum price on all materials of $0.00 per ton. If a particular material price is negative, a price of $0.00 per ton shall be used. 14.10.4 Processing fee will be calculated by multiplying the tons of individual materials collected by the agreed upon processing fee as described in Section 14.10.1. Total Processing Fees will be calculated by adding all of the processing fees generated for each of the materials collected and processed. 14.10.5 Revenue share received by the City will be calculated by subtracting the Total Processing Fee from the Total Revenues. If the remainder is positive, that number represents the revenue that shall be split between the City and the Contractor 80% (City)/20% (Contractor). 14.10.6 Annual Residual Waste Evaluations. A load evaluation shall be made in the presence of both parties on a date agreed upon to validate or re-establish the residual percentages used in the payback matrix. The annually validated and agreed upon percentage will be used until the next annual review. The City of Arden Hills and Republic Services agree that the commodity percentages listed on the Revenue Share Matrix are a reasonably accurate approximation of the percentages of each commodity of Recyclable Materials. The Revenue Share Matrix will be updated monthly by the actual percentages of residential single stream material shipped by Republic that month and the agreed upon residual percentages. 14.10.7 Change in Law Provision. The City and Republic Services agree that any change in law that materially affect the performance or pricing of the agreement will be reviewed within 30 days of such law taking affect. Both the City and Republic Services agree that following the review the parties will negotiate in good faith to return this agreement to substantially similar terms, conditions, or pricing that were present prior to change in law.