AgdaPkt 2018-03-26 Joint SA PFA - Laserfiche WebLink

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ATTACHMENT K CONTRACTOR’S COMPENSATION AND RATE SETTING PROCESS REV: 03-16-18 MI ATTY/AGR/2018.054/RECOLOGY OF SAN MATEO ATTACHMENT K Page 21 of 24 8. ALLOCATION OF CONTRACTOR’S COMPENSATION AMONG MEMBER AGENCIES Contractor allocated projected 2021 Contractor’s Compensation among the Member Agencies using the methodology described in the 2009 Franchise Agreement (Attachment K, subsection 6.B) and as illustrated in Attachment N. The Contractor’s allocation of projected 2021 Contractor’s Compensation was based on April-May 2016 operating statistics compiled by Contractor including those from the annual route audit described in Section 7.12, including route labor hours per year, route hours per year, number of accounts, service stops, Bin and Cart lifts, Drop Box pulls, Tonnage, and number of Containers, reported separately for each Member Agency. Route labor hours and route hours included hours related to on and off route time, collection time, and hauling time to deliver materials to the Designated Transfer and Processing Facility. Contractor compiled the operating statistics based on the 2016 annual route audit or best available information. The Parties agree that the projected 2021 Contractor’s Compensation for each Member Agency (which is presented in Attachment N by Service Sector and Lines of Business specified in Section 4) shall be used as the basis for determining each Member Agency’s share of adjusted 2021 Contractor’s Compensation for Rate Year Eleven (2021), and each Member Agency’s share of Contractor’s Compensation for all subsequent Rate Years. Cost allocations shall not be adjusted during the Term of the Agreement, with the exception of allocation of adjusted vehicle depreciation and interest costs for Rate Year Seventeen (2027) as described further in Section 4 of this Attachment. Agency’s share of Contractor’s Compensation shall be adjusted independently from others using the methodology in this Attachment K, adjusting for changes in cost indices and Agency service levels. 99. PASS-THROUGH COSTS Pass-Through Costs are costs which are included in the Revenue Requirement and Gross Revenue Billed on which no profit is paid to Contractor. Pass-Through Costs are divided into two groups: 1) Contractor Pass-Through Costs, which consist of regulatory agency fees, interest expense, Member Agency-specific changes to the Agreement, and Cap Carry Forward amounts, as described under the heading “Contractor Pass-Through Costs” in Table 1 above. 2) Other Pass-Through Costs, which consist of Member Agency Franchise Fees and other fees which are paid to each Member Agency, and fees paid by Contractor to SBWMA for processing and Disposal (including transfer) of materials delivered by Contractor to the Designated Transfer and Processing Facility. Other Pass-Through Costs are not part of Contractor’s Compensation, but are included in the Revenue Requirement (see Section 13 below). As part of SBWMA’s report on Contractor’s Application (see Section 11 below), SBWMA shall estimate the total amount of Other Pass- Through Costs and the portion thereof attributable to each Member Agency. Estimated 6.2.B. - Page 225