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04/21/2015 (3)
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04/21/2015 (3)
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Last modified
3/16/2018 4:21:36 PM
Creation date
7/31/2015 10:12:07 AM
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Meetings
Meeting Type
Regular Meeting
Document Type
Agenda Packet
Meeting Date
04/21/2015
Meeting Body
Board of County Commissioners
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EXHIBIT 4 — CALCULATION OF RATE ADJUSTMENT <br />Ninety percent (90%) of the rate adjustment shall be based on seventy five percent (75%) of the change in the <br />Consumer Price Index (CPI) between the month of April in the prior year (CPI1) and the month of April in the current <br />year (CPI2). The CPI shall be the South Urban Region, All Items - All Urban Wage Earners and Clerical Workers, <br />published by the United States Department of Labor, Department of Labor Statistics (Series ID = CWUR0300SA0). <br />Ten percent (10%) of the rate adjustment shall be based on the percentage change in the average monthly fuel price <br />from May through April in the prior year (FI1) and the average monthly fuel price from May through April of the <br />most recent year (FI2). If Franchisee utilizes primarily CNG vehicles, fuel prices shall be based on the Henry Hub Gulf <br />Coast Natural Gas Spot Price (dollars/million BTUs) published by the United States Energy Information <br />Administration. If Franchisee utilizes primarily diesel vehicles, fuel prices shall be based on the Lower Atlantic <br />(PADD1C) No. 2 Diesel Ultra Low Sulfur Diesel (0-15 ppm) Retail Prices (dollars per gallon) published by the United <br />States Energy Information Administration. <br />If any of the designated indices are discontinued or substantially altered, SWDD may select another relevant price <br />index published by the United States Government or by a reputable publisher of financial and economic indices. <br />The total rate adjustment is rounded to the nearest hundredth of a percent and in any given year shall not exceed <br />three and a half percent (3.5%) of the previous rate. <br />EXCEL FORMULA FOR CALCULATING RATE ADJUSTMENT <br />Rate Adjustment (%) = ROUND (((((CPI2 - CPI1) / CPI1) * 0.75 * 0.90) + (((FI2 - FI1) / FI1) * 0.10) * 100), 2) <br />Where: <br />"CPI1" = published CPI average for the month of April of the prior year <br />"CPI2" = published CPI average for the month of April of the current year <br />"FI1" = average published monthly fuel price from May through April of the year prior to FI2 <br />"F12" = average published monthly fuel price from May through April of the most recent year <br />SAMPLE CALCULATION OF RATE ADJUSTMENT <br />Assumptions: Current Rate = $8.00 <br />CP11= 225.838 <br />CPI2 = 230.195 <br />FI1 = 3.9185 <br />FI2 = 3.8747 <br />Rate Adjustment: <br />=ROUND (((((230.195-225.838)/225.838) * 0.75 * 0.90) + (((3.8747-3.9185/3.9185 * 0.10)) * 100), 2) = 1.19% <br />Rate Adjustment of 1.19% is less than 3.5%, the maximum allowed. <br />New Rate = ROUND ($8.00 * (1 + 0.0119), 2) = $8.10 <br />Page 38 <br />224 <br />
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