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Page 3 of 5 listing of households with multiple carts for annual assessment purposes. If a resident requests an additional cart after the County assessment amounts have been submitted, Walters will collect recycling from all carts at that household for the remainder of that calendar year, at no additional cost. Residents with additional carts will receive a letter informing them that the amount assessed to their property may be higher than the base fee, based on them having the additional cart(s). • The base Contract prices set for recyclable collection services for MDUs: Commencing May 5, 2025, the base Contract prices shall be $85.00 per eligible MDU per month for each four-yard container serviced once per week or $10.20 per eligible MDU per month for each 65-gallon cart serviced once per week. While all MDUs can opt into the City’s recycling program, there are currently no MDUs opting in. Annual Contract Price Increase The draft contract language shared as part of the RFP process included carry over language from the current recycling contract which sets annual increases by Consumer Price Index (CPI) or by three (3) percent, whichever is less. Walters as part of the contract negotiations asked for this percentage to be raised based on historical CPI rates. City staff as part of the contract negotiations worked with our recycling consultant from Foth Infrastructure and Environment, LLC on recommended language and reviewed several other City recycling contracts. There was no consistency amongst other contracts reviewed for this language, but staff found contracts with caps ranging from 4.5% to 7% and even those with no cap and the rate fluctuates based on CPI annually. As presented, annual price increases will be based on the Consumer Price Index for All Urban Consumers (CPI-U) or by five (5) percent, whichever is less. Staff asked Walters to provide a 10-year lookback to determine a fair increase for the hauler while still including a cap to protect the City. Walters’ lookback data is provided as Attachment B. The contract also states that the City may reopen negotiations if the Contractor incurs market increases, above the capped amount. The language agreed upon is as follows: The City agrees that the price per RDU and MDU will increase each year by the twelve-month average percentage of change in Consumer Price Index for All Urban Consumers: Water and Sewer and Trash Collection Service in the U.S. City Average as reported by the U.S. Bureau of Labor Statistics for the preceding calendar year or by five (5) percent, whichever is less. A zero percent or negative change in CPI will result in no change in the compensation rate for the respective contract year. The price change shall go into effect on May 5th of each year. The Contractor will notify the City by the last week of January the compensation rates for the subsequent contract year. In the event of substantial market change in any of the Recyclable Material Commodity prices or sustained inflation at any time during the Term of this agreement, the City or Contractor may, at eithers option and upon written notice of the other, request to reopen negotiations for the amount per month charged for Recycling Collection services.