Calculation of Escalation. For purposes of Section 4.2(A)(ii), the Contract Rate shall be adjusted in accordance with the formula described in this Section each July 1 during the term hereof, commencing July 1, 2022. The adjustment shall be calculated in accordance with the following formula: Contract Rate = Fixed Portion + [Escalating Portion x Index] Where, Fixed Portion = $10.87 Escalating Portion = $17.63 Index = Price Index, which shall be determined in accordance with the following formula: I = .7[PPI1/PPI2] +.3[EI1/EI2] PPI1 = The Producer Price Index, Industrial Commodities Commodity Data, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Series ID WPU03 thru 15 for the month of September in the year prior to the year for which the adjustment is being made (e.g., the adjustment effective July 1, 2011 will use the September 2010 value) PPI2 = Producer Price Index, Industrial Commodities Commodity Data for the month of September, 1997 EI1 = Employment Cost Index, Total Compensation, Private Industry All Workers, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Series ID: CIU2010000000000I for the last quarter of the year preceding the year for which the adjustment is being made (e.g., the adjustment effective July 1, 2011 will use the third quarter, 2010 value) EI2 = Employment Cost Index, Compensation, Private Industry All Workers, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Table 3, established for the third quarter of 1997. Effective July 1, 2022, and each July 1 thereafter during the term of the Agreement, the Contract Rate adjustment will be calculated as provided above, except that an annual fixed WDA renewal discount adjustment of $0.82 per ton will be applied after the annual Cost of Living Adjustment (COLA) adjustment. In no case will the adjustment to the Contract Rate exceed 85% of the County’s approved general public gate rate (without the current CDSDP recycling fee of $12.00), as such fees may be amended. For example, the current County’s posted gate rate is $47.94 ($59.94 minus the $12 CDSDP fee). Therefore, the WDA Contract Rate cannot be more than 85% of that rate, which is $40.75. However, if the County adjusts its posted gate rate in any future year of the term of the WDA, the WDA Contract Rate will be adjusted according to the above calculation formula, including the renewal discount adjustment of $0.82 per ton, up to the maxi...
