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0 <br />(8) Special Charges. Notwithstanding Section 4.2(A), the County shall have the right to <br />impose special charges for the receipt of hard to handle materials, such as bulky materials, construction and <br />demolition debris, tires and sludge. Such special charges shall be calculated to reflect the reasonable incremental <br />costs to the County of accepting such hard to handle materials. <br />(F) Calculation of Average Annual Inflation. For purposes of Section 4.2(A)(ii), the <br />inflation shall be calculated as the change in the Producer Price Index, Finished Goods ("PPP'), reported by the <br />Bureau of Labor Statistics of the United States Department of Labor between July of the year of calculation and <br />July 1, 1997. Average annual inflation shall be deemed to exceed 4% if the ratio between the PPI Index for July <br />for the year of calculation (calculated in accordance with the formula below) and July 1997 exceeds the ratio <br />corresponding to such year of calculation on the table below. The ratio shall be calculated in accordance with the <br />following formula: <br />(July PPI Index of calculation year / PPI Index for July 1997) <br />Year of Calculation <br />Ratio <br />July 1, 1997 <br />1.0000 <br />July 1, 1998 <br />1.0400 <br />July 1,.1999 <br />1.0816 <br />July 1, 2000 <br />1.1248 <br />July 1, 2001 <br />L 1698 <br />July 1, 2002 <br />1.2166 <br />July 1, 2003 <br />1.2653 <br />July 1, 2004 <br />1.3159 <br />July 1, 2005 <br />1.3685 <br />July 1, 2006 <br />1.4233 <br />July 1, 2007 <br />1.4802 <br />In the event the PPI is no longer published during the term of this Agreement, such other index identified by the <br />Bureau of Labor Statistics or otherwise generally accepted as a replacement for PPI shall be used for purposes <br />of this Service Agreement. <br />(G) Procedure for Rate Adjustments. In the event the County determines that it is entitled <br />to an adjustment of the Contract Rate pursuant to Section 4.2, it shall utilize the procedures described in this <br />Section 4.2(G). The County shall be required to provide the City with at least 60 days prior written notice of the <br />adjustment, which notice shall identify the specific event(s) or circumstances which require the adjustment. The <br />notice shall also specify the earliest date on which the County Board of Supervisors shall consider the proposed <br />adjustment At least 45 days prior to such meeting of the Board of Supervisors, the County shall provide the City <br />with a report which shall contain the following information: a description of the specific event(s) or circumstances <br />which require the adjustment, a description (including cost estimates) of any activities (which may include, but <br />not be limited to capital improvements to the Disposal System) required in order to remedy such event or <br />circumstance; certification by the County that it has implemented the remedies described in Section 4.2 prior to <br />requiring the rate adjustment; and a description of the methodology used by the County to calculate the <br />adjustment to the Contract Rate (hereinafter the "County Report"). In the event the City disputes the adjustment, <br />it shall provide the County with a written description of the reason for the dispute at least 10 days prior to the <br />meeting of the Board of Supervisors identified in the initial notice of the County (hereinafter the "City Report"). <br />The City Report shall be provided to the Board of Supervisors for consideration at such meeting in connection <br />with the proposed rate adjustment. At any time from and after the date that the County provides the City with <br />Execution Copy 21 <br />