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waived decrease or the City may choose to notify the Contractor that it will implement <br />the decrease. <br />6.4 Method of Adjustments <br />6.4.1 General <br />Pursuant to Section 6.3, Contractor may request an annual adjustment to the Total Rate <br />according to the formula shown in Exhibit 3, subject to review and approval of the City, <br />in compliance with California Constitution Article XIIIIID (Proposition 218) and the <br />Proposition 218 Omnibus Implementation Act (Govt. Code Sections 53750 et. seq.). All <br />future adjustments to be effective July 1 shall be based on the rates described in the <br />Contractor's Proposal. <br />6.4.2 Cost Component and Rate Adjustment Indexes <br />The approved rates consist of the following cost components, followed by the initial <br />weightings of each component. Each cost component may be adjusted by the change in <br />the corresponding index as provided below. See Sections 6.4.3 through 6.4.6 for detailed <br />rate adjustment procedures and Exhibit 3 for examples of rate adjustment procedures. <br />RESIDENTIAL CURBSIDE, MULTI -FAMILY AND COMMERCIAL SERVICES COST COMPONENTS <br />%of Costs <br />(1) <br />a, <br />U <br />N <br />� <br />� <br />U <br />a <br />s <br />� <br />Cost Component <br />U <br />c <br />m <br />Rate Adjustment Index <br />A. <br />Service <br />72% <br />78% <br />Consumer Price Index for All Urban Consumers <br />(CUUR0000AOLIE), all items less food and energy <br />—U.S. City Average (2) <br />B. <br />Fuel <br />5% <br />5% <br />Producer Price Index WPU05522101, Fuels and <br />related products and power - Commercial <br />natural gas (2) <br />C. <br />Disposal <br />23% <br />17% <br />Waste Disposal Agreement per ton gate rate at <br />Orange County Landfill System <br />Total <br />1009/0 <br />1009/0 <br />(1) Weightings may be adjusted annually based on the adjustment process discribed in this Article <br />6. <br />(2) Average annual change for the 12 months ending December of the previous Calendar Year <br />compared to the 12 months ending in December of year prior. <br />March 9, 2020 91 City of Santa Ana - DRAFT <br />60A-180 <br />