Orange County NC Website
e) Expansion or Reduction in Number of Residences Serviced <br />The Contract maybe expanded or reduced at the option of County to include additional or fewer <br />residential Residences and adjacent small businesses, schools, institutions, churches, and <br />pedestrian recycling stations. If legislation or ordinances are passed which significantly impact <br />.the program participation, the cost of service may be renegotiated between the Contractor and <br />County. <br />f) Fuel Cost Adjustment <br />County encourages Contractor to utilize a renewable clean burning alternative fuel such as <br />biodiesel or a biodiesel blend such as B-20 while providing service to County under this <br />Contract. <br />The Fuel Cost Adjustment will become effective on April 1, 2006. No Fuel Cost Adjustment <br />will be made prior to this time. <br />County and Contractor agree that fuel cost represents a significant portion of the costs to <br />Contractor in providing the services outlined in this Contract. In order to help adjust for the <br />- ~~nanr~ial-~rnpaot-af~he--eha~ges-in-the-cosLa~€u~l; ~Fu~l-Gust Adj-nstrnent-shafl-be-in-~rlaeP <br />as follows: <br />Base Line Fuel Usage shall be measured and determined annually, and shall be defined as the <br />number of gallons consumed each month by the Urban Curbside Recycling Collection <br />Vehicle Fleet as operated by Contractor in providing services to County under this Contract. <br />Base Line Fuel usage for Year 1 is 1,800 gallons of diesel fuel per month. Base Line Fuel <br />Usage shall be reset annually on July 1, and shall be determined by a verifiable audit of the <br />actual usage of fuel by the fleet of trucks dedicated to servicing the work under this Contract. <br />Contractor shall produce Fuel Usage Documentation of the actual fuel usage for the months <br />of April, May, and June, and the Average Monthly Fuel Usage of the fleet shall be calculated <br />from this information. Fuel Usage Documentation shall be provided for each vehicle, and <br />shall include for each vehicle the type of vehicle (including year, make/model, and engine <br />type), the typical function of that vehicle, the number of miles driven, the number of hours <br />operated, and the amount of fuel consumed during -the time in question. If the fuel usage of <br />any vehicle as determined from the above information (typically miles per gallon) exceeds <br />commonly accepted industry standard for that vehicle type, then County and Contractor will <br />negotiate a fuel usage value to be substituted for the exceptional value when calculating the <br />Base Line Fuel Usage, and this substituted fuel usage value will be set to industry standard <br />unless otherwise agreed to by both County and Contractor. The Average Monthly Fuel <br />Usage, determined as stipulated above, shall become the Base Line Fuel Usage used to <br />determine the Fuel Cost Adjustment for the next four quarters ending September 30, <br />December 31, March 31, and June 30. <br />Base Line Fuel Cost shall be determined annually. Base Line Fuel Cost for Year 1 is $2.30 <br />per gallon of diesel fuel. Base Line Fuel Cost for future years shall be reset annually on July <br />1, and will be based on the average per-gallon cost of diesel fuel as paid by Contractor during <br />the months of .April, May and June, and verified by submittal of copies of actual fuel <br />invoices. <br />5 <br />