Common use of POTENTIAL RATE CONSTRAINTS Clause in Contracts

POTENTIAL RATE CONSTRAINTS. The Parties recognize that, as of the date this agreement is entered into, there is no authoritative judicial determination of whether Articles 13.C and D (Proposition 218) of the California Constitution apply to charges imposed by private enterprises for solid waste handling and recycling services when those charges are regulated by a local government. Until such authoritative judicial guidance is available, County intends to provide notice of proposed rate increases, and an opportunity for public hearing and protest as required by Article 13.D, except as specifically exempted under Article 13.D. County will not be in default of this agreement if: A. A majority protest prevents a proposed rate increase from being adopted, B. A court rules that rates adopted by County are not consistent with Article 13.D, or C. An initiative reduces rates from those in effect. After any such event, the Parties shall promptly meet and confer in good faith to consider modifications to service levels and/or reductions in the franchise fee and other governmental fees and charges, commensurate with the rates that Contractor may legally charge. If County and Contractor are unable to reach agreement about such a modification or reduction, then Contractor may terminate this agreement upon two hundred and seventy (270) calendar days prior written notice to County, in which case Contractor and County shall each be entitled to payment of amounts due for contract performance through the date of termination but otherwise will have no further obligation to one another pursuant to this agreement after the date of such termination.

POTENTIAL RATE CONSTRAINTS. The Parties recognize that, as of the date this agreement Agreement is entered into, there is no authoritative judicial determination of whether Articles 13.C and D (Proposition 218) of the California Constitution apply to charges imposed by private enterprises for solid waste Solid Waste handling and recycling Recycling services when those charges are regulated by a local government. Until such authoritative judicial guidance is available, County intends to provide notice of proposed rate increases, and an opportunity for public hearing and protest as required by Article 13.D, except as specifically exempted under Article 13.D. County will not be in default of this agreement Agreement if: A. A majority protest prevents a proposed rate increase from being adopted, B. A court rules that rates Rates adopted by County are not consistent with Article 13.D, or C. An initiative reduces rates Rates from those in effect. After any such event, the Parties shall promptly meet and confer in good faith to consider modifications to service levels and/or reductions in the franchise fee Franchise Fee and other governmental fees and charges, commensurate with the rates Rates that Contractor may legally charge. If County and Contractor are unable to reach agreement about such a modification or reduction, then Contractor may terminate this agreement Agreement upon two hundred and seventy (270) calendar days prior written notice to County, in which case Contractor and County shall each be entitled to payment of amounts due for contract performance through the date of termination but otherwise will have no further obligation to one another pursuant to this agreement Agreement after the date of such termination.