Consumer price index adjustment

Fees shall be adjusted every 12 months beginning March 1, 2018 based upon the change in the Consumer Price Index ("CPI") - All Urban Consumers Not Seasonally Adjusted, U.S. city average for all items (1982-84=100) which for purposes of the formula below shall be referred to as "Annual CPI".

The change shall be calculated as follows:

(Annual CPI for Prior Calendar Year minus Annual CPI for Calendar Year Two Years Prior)/(Annual CPI for the Calendar Year Two Years Prior) = Change in CPI

then

(Change in CPI + 1) * (Fee Currently in Force) = (New Fee for Next 12 months).

Notwithstanding the calculation above, if the "Change of CPI" for any 12-month period is greater than 0.10, then 0.10 shall replace the actual "Change in CPI" in the calculation for that 12-month period. Additionally, if the "Change in CPI" is less than 0.0, then 0.0 shall replace the actual "Change in CPI" in the calculation for that 12-month period.

As an example, and for illustrative purposes only, to calculate the change on March 1, 2019 where the fee currently in force was $1.64 per square foot, 2018 Annual CPI was 251 and 2017 Annual CPI was 245; the calculation would be as follows:

251-245= 6/245 = 0.0245

then

0.0245 + 1 = 1.245 * $1.64 = $2.04 per square foot fee between March 1, 2019 and February 29, 2020.

(Ord. No. 12678, § 2, 4-28-05; Ord. No. 13703, § 2, 10-26-17)