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ATT ACHMENT K
<br />CONTRACTOR’S COMPENSATION AND RATE SETTING PROCESS
<br />REV: 03-16-18 MI
<br />ATTY/AGR/2018.054/RECOLOGY OF SAN MATEO ATTACHMENT K
<br />Page 17 of 24
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<br />Table 3: Example Compensation Cap Methodology
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<br /> Note: All amounts presented in $ per year with the exception of percentages as noted.
<br />CPI + Growth Percentage for Example 4.5%6.2%5.8%5.0%3.5%2.4%2.3%
<br />2023 2024 2025 2026 2027 2028 2029
<br />Annual Cost of Operations
<br />Wages for CBAs 1,731,660 1,839,023 1,945,687 2,042,971 2,114,475 2,165,222 2,215,023
<br />Benefits for CBAs 804,714 854,606 904,173 949,382 982,610 1,006,193 1,029,335
<br />Payroll Taxes 144,074 153,007 161,881 169,975 175,924 180,147 184,290
<br />Workers Compensation Insurance 123,375 131,024 138,624 145,555 150,649 154,265 157,813
<br />Total Direct Labor Related-Costs 2,803,823 2,977,660 3,150,365 3,307,883 3,423,659 3,505,826 3,586,460
<br />Direct Fuel Costs 187,237 198,846 210,379 220,898 228,630 234,117 239,501 0 0 0 0 0 0 0
<br />Other Direct Costs 244,805 259,983 275,062 288,815 298,924 306,098 313,138
<br />Depreciation
<br /> - Collection Vehicles 254,669 254,669 254,669 254,669 254,669 254,669 254,669
<br /> - Containers 98,179 98,179 98,179 98,179 98,179 98,179 98,179
<br />352,848 352,848 352,848 352,848 352,848 352,848 352,848
<br />Allocated Indirect Costs
<br />General and Administrative 997,138 1,058,960 1,120,380 1,176,399 1,217,573 1,246,795 1,275,471
<br />Operations 104,966 111,474 117,940 123,837 128,171 131,247 134,266
<br />Vehicle Maintenance 297,057 315,475 333,772 350,461 362,727 371,433 379,975
<br />Container Maintenance 175,509 186,390 197,201 207,061 214,308 219,451 224,499
<br />Total Allocated Indirect Costs 1,574,670 1,672,299 1,769,293 1,857,757 1,922,779 1,968,926 2,014,211
<br />Total Allocated Indirect Depreciation Costs 9,804 9,804 9,804 9,804 9,804 9,804 9,804
<br />Total Annual Cost of Operations 5,173,187 5,471,441 5,767,750 6,038,005 6,236,643 6,377,618 6,515,963
<br />Profit 543,042 574,350 605,454 633,824 654,675 669,474 683,996
<br />Operating Ratio 90.5%90.5%90.5%90.5%90.5%90.5%90.5%
<br />Total Operating Costs 5,716,229 6,045,791 6,373,205 6,671,829 6,891,318 7,047,092 7,199,959
<br />Contractor Pass-Through Costs
<br />Interest Expense 95,432 95,432 95,432 95,432 95,432 95,432 95,432
<br />ADD: Prior Year Compensation Cap Reductions - - 38,978 100,259 139,796 62,435 -
<br />Contract Changes to Specific Agencies - - - - - - -
<br />Total Contractor Pass-Through Costs 95,432 95,432 134,411 195,691 235,228 157,867 95,432
<br />BASE CONTRACTOR'S COMPENSATION 5,811,661 6,141,223 6,507,615 6,867,520 7,126,546 7,204,959 7,295,391
<br />CONTRACTOR'S COMPENSATION CAP (5%)5,861,902 6,102,244 6,407,357 6,727,724 7,064,111 7,417,316 7,565,207
<br />Adjustment for 5% Cap - (38,978) (100,259) (139,796) (62,435) - -
<br />ADJUSTED CONTRACTORS COMPENSATION 5,811,661 6,102,244 6,407,357 6,727,724 7,064,111 7,204,959 7,295,391
<br />% CHANGE IN CONTRACTOR COMPENSATION 4.10%5.00%5.00%5.00%5.00%1.99%1.26%
<br />Total Depreciation
<br />Lease (Yr 1 principal only) for Collection Equipment
<br />City of Example
<br />Direct Labor-Related Costs
<br />6.2.B. - Page 221
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