POTENTIAL RATE CONSTRAINTS Clause Samples
The Potential Rate Constraints clause sets limits on the rates that can be charged or applied under an agreement. In practice, this clause may specify maximum or minimum rates for services, interest, or fees, and can outline conditions under which these rates may be adjusted or reviewed. Its core function is to provide predictability and protect parties from unexpected or excessive rate changes, thereby managing financial risk and ensuring fairness in the contractual relationship.
POTENTIAL RATE CONSTRAINTS. The Parties recognize that, as of the date this Agreement is entered into, there is no authoritative judicial determination of whether Articles 13.C and D of the California Constitution apply to charges imposed by private enterprises for Solid Waste handling and Recycling services when those charges are regulated by a local government. Until such authoritative judicial guidance is available, County intends to provide notice of proposed rate increases, and an opportunity for public hearing and protest as required by Article 13.D. County will not be in default of this Agreement if:
A. A majority protest prevents a proposed rate increase from being adopted,
B. A court rules that Rates adopted by County are not consistent with Article 13.D, or
C. An initiative reduces Rates from those in effect. After any such event, the Parties shall promptly meet and confer in good faith to consider modifications to service levels commensurate with the Rates that Contractor may legally charge.
POTENTIAL RATE CONSTRAINTS. The Parties recognize that, as of the date this agreement is entered into, there is no authoritative judicial determination of whether Articles 13.C and D (Proposition 218) of the California Constitution apply to charges imposed by private enterprises for solid waste handling and recycling services when those charges are regulated by a local government. Until such authoritative judicial guidance is available, County intends to provide notice of proposed rate increases, and an opportunity for public hearing and protest as required by Article 13.D, except as specifically exempted under Article 13.D. County will not be in default of this agreement if:
A. A majority protest prevents a proposed rate increase from being adopted,
B. A court rules that rates adopted by County are not consistent with Article 13.D, or
C. An initiative reduces rates from those in effect. After any such event, the Parties shall promptly meet and confer in good faith to consider modifications to service levels and/or reductions in the franchise fee and other governmental fees and charges, commensurate with the rates that Contractor may legally charge. If County and Contractor are unable to reach agreement about such a modification or reduction, then Contractor may terminate this agreement upon two hundred and seventy (270) calendar days prior written notice to County, in which case Contractor and County shall each be entitled to payment of amounts due for contract performance through the date of termination but otherwise will have no further obligation to one another pursuant to this agreement after the date of such termination.
POTENTIAL RATE CONSTRAINTS. The Parties recognize that, as of the date this agreement is entered into, there is no authoritative judicial determination of whether Articles 13C and D (Proposition 218) of the California Constitution apply to charges imposed by private enterprises for solid waste handling and recycling services when those charges are regulated by a local government. Until such authoritative judicial guidance is available, County intends to provide notice of proposed rate increases, and an opportunity for public hearing and protest as required by Article 13D, except as specifically exempted under Article 13D. County will not be in default of this agreement if:
A. A majority protest prevents a proposed rate increase from being adopted, or
B. A court rules that rates adopted by County are not consistent with Article 13D.
POTENTIAL RATE CONSTRAINTS. A. The Parties recognize that, as of the date this agreement is entered into, there is no authoritative judicial determination of whether Articles 13C and D (Proposition 218) of the California Constitution apply to charges imposed by private enterprises for solid waste handling and recycling services when those charges are regulated by a local government. Until such authoritative judicial guidance is available, County intends to provide notice of proposed rate increases, and an opportunity for public hearing and protest as required by Article 13D, except as specifically exempted under Article 13D. County will not be in default of this agreement if:
1. A successful majority protest under the provisions of Article 13D prevents a proposed rate increase from being adopted, or
2. A court of competent jurisdiction or other regulatory agency rules that rates adopted by County are not consistent with Article 13D.
B. The Parties further recognize that various rates and fees may be subject to the provisions of Article 13A of the California Constitution (Proposition 13) and its implementing legislature. The timeframe for any action concerning the adjustment of the rates by either Party shall be adjusted as necessary to comply with such requirements.
C. In the event of a lawsuit or other proceeding challenging rates, County will have no obligation to defend such lawsuit or other proceeding based on the rates or that otherwise addresses any portion of the rates. Contractor may, at Contractor’s sole cost and expense, elect to defend any such lawsuit or other proceeding and, if so, shall indemnify and hold County harmless as provided in Section 14.01.
POTENTIAL RATE CONSTRAINTS. A. The Parties recognize that, as of the date this Agreement is entered into, there is no authoritative judicial determination of whether Articles XIIIC and D (Proposition
1. A successful majority protest under the provisions of Proposition 218 process prevents a proposed rate increase from being adopted, or
2. A court of competent jurisdiction rules that rates adopted by County are not consistent with Article 13D.
B. The Parties further recognize that various rates and fees may be subject to the provisions of Article 13A of the California Constitution (Proposition 13) and its implementing legislature. The timeframe for any action concerning the adjustment of the rates by either Party shall be adjusted as necessary to comply with such requirements.
POTENTIAL RATE CONSTRAINTS. A. The Parties recognize that, as of the date this agreement is entered into, there is no authoritative judicial determination of whether Articles 13C and D (Proposition 218) of the California Constitution apply to charges imposed by private enterprises for solid waste handling and recycling services when those charges are regulated by a local government. Until such authoritative judicial guidance is available, County intends to provide notice of proposed rate increases, and an opportunity for public hearing and protest as required by Article 13D, except as specifically exempted under Article 13D. County will not be in default of this agreement if:
1. A successful majority protest under the provisions of Proposition 218 process prevents a proposed rate increase from being adopted, or
2. A court of competent jurisdiction rules that rates adopted by County are not consistent with Article 13D.
B. The Parties further recognize that various rates and fees may be subject to the provisions of Article 13A of the California Constitution (Proposition 13) and its implementing legislature. The timeframe for any action concerning the adjustment of the rates by either Party shall be adjusted as necessary to comply with such requirements.
POTENTIAL RATE CONSTRAINTS. The parties recognize that, as of the date this Agreement is entered into, there is no authoritative judicial determination of whether Articles 13.C and D of the California Constitution apply to charges imposed by private enterprises for solid waste handling and recycling services when those charges are regulated by a local government. Until such authoritative judicial guidance is available, the Agency intends to provide notice of proposed rate increases, and an opportunity for public hearing and protest as required by Article 13.D. The Agency will not be in default of this Agreement if (i) a majority protest prevents a proposed rate increase from being adopted, (ii) a court rules that rates adopted by the Agency are not consistent with Article 13.D, or (iii) an initiative reduces rates from those in effect. After any 2909 such event, the parties shall promptly meet and confer in good faith to consider modifications to 2910 service levels commensurate with the rates that Contractor may legally charge.