2020-192 - Laserfiche WebLink

Home Browse Search

EXHIBIT "D" CALCULATION OF RATE ADJUSTMENT One Hundred Percent (100%) of the rate adjustment shall be based on the change in the Consumer Price Index (CPI). Specifically, the Urban Consumers Index, published by the U.S. Department of Labor, Bureau of Labor Statistics, for the Southern States. The contract rates starting on October 1, 2020 shall remain through September 30, 2021. The first adjustment shall be effective October 1, 2021 and the adjustment shall be computed as follows: the net percentage change shall be 100 percent of the difference between the CPI as of the immediately preceding January and the second preceding January divided by the CPI as of the second preceding January. If the designated index is discounted or substantially altered, Owner may select another relevant price index published by the United States Government or by a reputable publisher of financial and economic indices. The total rate adjustment is rounded to the nearest hundredth of a percent and in any given year shall not exceed three percent (3.0%) of the previous rate. No adjustment for a negative CPI. FORMULA FOR CALCULATING ANNUAL RATE ADJUSTMENT Annual Adjustment (as a Percentage) AA = (((CP12 - CPI 1) / CPI 1) x 100)); New Rate = Round ((Current Rate + AA*Current Rate), 2) Where: "CPI 1" = published CPI average for the month of January of the prior year "CPI2" = published CPI average for the month of January of the current year SAMPLE CALCULATION OF ANNUAL RATE ADJUSTMENT INCREASE Assumptions: Current Rate = $90.00 CPI l = 242.547 CP12 = 248.005 Annual Rate Adjustment = (248.005-242.547)/ 242.547) x 100 = 2.25% Annual Rate Adjustment of 2.25% is less than 3.0%, the maximum allowed. New Rate = ROUND (($90.00 + 0.0225*$90), 2) = $92.03 Annual Rate Adjustment is subject to the approval of the County Administrator or his designee. Page 11 of I 1