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14.8 The Contract price will be multiplied by the total number of RDUs and MDUs as <br />determined by the City to result in the monthly payment amount to Contractor. <br />14.9 Annual Contract Price Increase <br />The City agrees that the price per residential dwelling unit will increase each year by the <br />Consumer Price Index for the Upper Midwest as determined by the Federal Reserve <br />Bank of Minneapolis or by three (3) percent, whichever is less. The price change shall <br />go into effect on May 5 of each year. The City will notify the Contractor by the last <br />week of January of the compensation rate for the subsequent contact year. <br />14.10 Processing Fees and Revenue Share [IF REVENUE SHARE IS INCLUDED] <br />14.10.1 The processing fee for all recyclable material commodities shall be <br />$ per ton. The city agrees that the processing rate will increase each year <br />by 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 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 />14.10.2 The Revenue Share on all commodities shall be split between the City and <br />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 shall <br />be calculated by adding all of the revenue generated for each of the materials <br />collected and processed. Contractor shall guarantee a minimum price on all <br />materials of $0.00 per ton. If a particular material price is negative, a price of <br />$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 Section <br />14.10.1. Total Processing Fees will be calculated by adding all of the <br />processing fees generated for each of the materials collected and processed. <br />14.10.5 Revenue share received by the City will be calculated bysubtracting the <br />Total Processing Fee from the Total Revenues. If the remainder is positive, <br />that number represents the revenue that shall be split between the City and <br />the Contractor 80% (City) and 20% (Contractor). <br />14.11 Annual Residual Waste Evaluations. <br />A load evaluation shall be made in the presence of both parties on a date mutually agreed <br />upon to validate or re-establish the residual percentages used in the payback matrix. The <br />annually validated and agreed upon percentage will be used until the next annual review. <br />The City of Arden Hills and Republic Services agree that the commodity percentages <br />listed on the Revenue Share Matrix are a reasonably accurate approximation of the <br />percentages of each commodity of Recyclable Materials. The Revenue Share Matrix will <br />be updated monthly by the actual percentages of residential single stream material <br />shipped by Republic that month and the agreed upon residual percentages. <br />CITY OF ARDEN HILLS, MN <br />CONTRACT FOR THE COLLECTION OF RESIDENTIAL RECYCLABLE MATERIALS Page 22 <br />