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CITY OF ARDEN HILLS, MN <br />CONTRACT FOR THE COLLECTION OF RESIDENTIAL RECYCLABLE MATERIALS Page 20 <br />14.9. Annual Contract Price Increase <br /> <br />The City agrees that the price per residential dwelling unit will increase each year by <br />the Consumer Price Index for the Upper Midwest as determined by the Federal <br />Reserve Bank of Minneapolis or by three (3) percent, whichever is less. The price <br />change shall go into effect on May 4 of each year. The City will notify the Contractor <br />by the last week of January of the compensation rate for the subsequent contact year. <br /> <br />14.10. Processing Fees and Revenue Share <br />14.10.1. The processing fee for all recyclable material commodities shall be <br />$66.00 per ton. The city agrees that the processing rate will increase each <br />year by the Consumer Price Index for the Upper Midwest as determined <br />by the Federal Reserve Bank of Minneapolis or by three (3) percent, <br />whichever is less. The price change shall go into effect May 4 of each <br />year. The City will notify the Contractor by the last week of January of <br />the compensation rate for the subsequent contact year. <br />14.10.2. The Revenue Share on all commodities shall be split between the City <br />and the Contractor at a rate of 80% (City) and 20% (Contractor). <br />14.10.3. The revenue will be calculated by multiplying the tons of individual <br />materials collected, times the agreed upon material price. Total revenue <br />shall be calculated by adding all of the revenue generated for each of the <br />materials collected and processed. Contractor shall guarantee a minimum <br />price on all materials of $0.00 per ton. If a particular material price is <br />negative, a price of $0.00 per ton shall be used. <br />14.10.4. Processing fee will be calculated by multiplying the tons of individual <br />materials collected by the agreed upon processing fee as described in <br />Section 14.10.1. Total Processing Fees will be calculated by adding all of <br />the processing fees generated for each of the materials collected and <br />processed. <br />14.10.5. Revenue share received by the City will be calculated by subtracting the <br />Total Processing Fee from the Total Revenues. If the remainder is <br />positive, that number represents the revenue that shall be split between <br />the City and the Contractor 80% (City) and 20% (Contractor). <br /> <br />14.11. Annual Residual Waste Evaluations. <br /> <br />A load evaluation shall be made in the presence of both parties on a date mutually <br />agreed upon to validate or re-establish the residual percentages used in the payback <br />matrix. The annually validated and agreed upon percentage will be used until the next <br />annual review. The City of Arden Hills and Republic Services agree that the <br />commodity percentages listed on the Revenue Share Matrix are a reasonably accurate <br />approximation of the percentages of each commodity of Recyclable Materials. The <br />Revenue Share Matrix will be updated monthly by the actual percentages of residential <br />single stream material shipped by Republic that month and the agreed upon residual <br />percentages.