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ATTY/AGR.2018.054/Recology of San Mateo <br />ATTACHMENT K <br />CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS <br />-01.l. <br />Liu, I or Aare <br />Cost Eleven 1 -13111F,121 ­8r <br />35) <br />B. Interest Expense for • The annual interest expense shall be equal to the projected • For Rate Years Twelve (2022) through Sixteen (2026), the <br />Containers and All interest expense for 2021 specified in Attachment N, which annual Interest Expense for Rate Years Twelve (2022) <br />Contractor Vehicles is $1,145,186. This interest expense for the Contractor through Twenty -Five (2035) shall be fixed and shall equal <br />including Collection vehicles is $982,006 and for Containers is $163,180. the Rate Year Eleven (2021) amount of $1,145,186, which <br />Vehicles, Support Vehicles, includes interest expense for the Contractor vehicles of <br />and Supervisor's Vehicles $982,006 and for Containers of $163,180. <br />(which are separately <br />identified on the Equipment <br />Replacement Schedule in <br />Attachment N) <br />C. Contract Changes to Specific None. <br />Agencies <br />D. Cap CarryForward The Cap Carry Forward shall not be applicable in Rate Year <br />Eleven (2021) <br />The Cap Carry Forward <br />methodology is described in <br />Section 5 above. A <br />hypothetical example of the <br />Cap Carry Forward is <br />provided in Table 3. <br />After completion of the new vehicle acquisitions in <br />accordance with the equipment replacement schedule in <br />Attachment N, the interest amount shall be adjusted to <br />reflect interest expense related to actual vehicle <br />acquisition costs. The recalculation of the annual vehicle <br />interest expense to be effective for Rate Years Seventeen <br />(2027) through Twenty -Five (2035) shall be included in the <br />Application submitted in 2026 for Rate Year Seventeen <br />(2027) Contractor's Compensation. <br />• None, <br />• For Rate Year Twelve (2022), the Cap Carry Forward shall <br />equal zero because Adjusted Contractor's Compensation <br />shall not be capped in Rate Year Eleven (2021), and <br />therefore no amount may be carried forward. <br />• For Rate Year Thirteen (2023) onward, the Cap Carry <br />Forward shall equal the amount, if any, calculated forthe <br />preceding (i.e. then -current) Rate Year and elected by <br />Agency to be carried forward, as provided in Section 5 <br />above. <br />Total Contractor Pass -Through . Calculated as the sum of the Contractor Pass -Through • Same method as shown for Rate Year Eleven (2021). <br />Costs Costs. <br />CONTRACTOR'S • Calculated as the sum of Total Annual Cost of Operations, • Same method as shown for Rate Year Eleven (2021). <br />COMPENSATION Profit, and Contractor's Pass -Through Costs. <br />Collection Services Franchise Agreementwith Recology San Mateo County <br />Model Agreement for Adaptation by Member Agencies <br />REV: 03-16-18 MI <br />Attachment K <br />Contractor's Compensation and Rate Setting Process <br />Page 14 of 24 <br />