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J <br /> If County and Contractor mutually agree to extend this contract beyond initial term, actual costs <br /> for future years are to be negotiated annually. The formula for negotiating future costs is to be <br /> as follows: <br /> The cost per household for any year shall not exceed the cost per household for the previous <br /> year multiplied by a factor equal to the Bureau of Labor Statistics Consumer Price Index for <br /> Transportation for the South Urban region as measured in January of the current year and <br /> compared to January of the previous year. The cost for In-Town Curbside may be reduced <br /> $0.06 per home per month for each increment of 5 homes per hour collection efficiency over 50 <br /> stops per hour. <br /> For example: the cost per household for 2003-2004 shall be allowed to increase above the 2002- <br /> 2003 price by an amount equal to the Bureau of Labor Statistics Consumer Price Index for <br /> Transportation for the South Urban region as measured in January 2003 and compared to <br /> January 2002. The cost for In-Town Curbside shall be reduced$0.06 per home for each <br /> increment of 5 homes per hour collection efficiency over 50 stops per hour. <br /> e) Expansion or Reduction in Number of Units Serviced <br /> The contract may be expanded or reduced at the option of County to include additional or fewer <br /> residential homes and adjacent small businesses, schools,institutions,churches, and pedestrian <br /> recycling stations. If legislation or ordinances are passed which significantly impact the <br /> participation in either program(Rural or In-Town),the cost of service for that program may be <br /> renegotiated between the Contractor and County. <br /> SECTION 4 <br /> Performance Sharing <br /> Performance Sharing shall apply to In-Town Curbside collection only,and will be based on <br /> measured improvements in operational productivity. Any increase in productivity will be measured <br /> against a base of 50 homes per hour collected. This measurement shall be based on the actual bin <br /> set out rate. If an increase in productivity is measured, for each five homes per hour improvement <br /> above the base of 50,Contractor will reduce the cost of the monthly invoice by$0.06 per resident. <br /> The homes per hour calculation will be based on the total Set Outs per month divided by the total <br /> truck hours required to for the curbside collection vehicles to collect,transport,and unload the <br /> recyclable materials. This calculation will be made on a monthly basis from daily reports of total <br /> set outs and truck hours. This data will originate from Contractor's daily truck information <br /> accumulated each month. Contractor shall furnish the information needed to make such a <br /> calculation,and Contractor will make this calculation. Contractor will include both the data used to <br /> make said calculation and the result of said calculation with the required monthly report. In the <br /> event that an improvement in productivity is determined to have taken place during any month,the <br /> cost of collection shall be reduced by$0.06 per household billed.. This reduction in collection cost <br /> per household shall be in effect for the month in which the increase in productivity was measured <br /> and for all months that follow throughout the remainder pf the contract. <br /> 4 <br />