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<br />6A <br />Page 13 <br /> <br />The Adjustment Factor for labor will be determined separately for the Transfer Station, for the <br />MRF and for Transportation. In each case, the 2008 wages for represented employees ("direct" <br />labor) will be based on the amounts shown in Contractor's Proposal (Form 3-G). Updated <br />wageswill be prepared by revising Form 3-G to input 2011 wage rates payable under the <br />collective bargaining agreements then in effect. There will be no increase in the number of <br />standard or overtime hours used in the calculation. The 2008 benefits will be based on the <br />pension, health and welfare, and vacation/sick leave and holiday costs in Form 3-G monetized <br />to an hourly dollar amount. The 2011 benefits, similarly expressed, will be based on the <br />collective bargaining agreem ents then in place. <br /> <br />Workers' compensation insurance adjustment factor will be based on changes in the Consumer <br />Price Index (CPI-W). The Percentage Change in the Consumer Price Index shall be calculated <br />using the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index - Urban <br />Wage Earners and Clerical Workers, San Francisco-Oakland-San Jose, CA (not seasonally <br />adjusted, all items, base period: 1982-84=100, Series No. CWURA422SAO). <br />The payroll taxes Adjustment Factor will be equal to the adjustm ent factor for wages. <br />The Adjustment Factor for fuel will be based on changes in the Producer Price Index #2 Diesel <br />Fuel (PPI). The Percentage Change for the Producer Price Index #2 Diesel Fuel shall be <br />calculated using the U.S. Department of labor, Bureau of labor Statistics, Producer Price Index <br />- Commodity Index for #2 diesel fuel (not seasonally adjusted, fuels and related products and <br />power, base date = 8200, Series No. WPU057303). The Adjustment Factor for power will be <br />based on changes in PG&E rates for electricity (cents per kwhr). <br /> <br />The Adjustment Factor for Other Operating and Maintenance Costs will be based on changes in <br />the Consumer Price Index (CPI-U). The Percentage Change in the Consumer Price Index shall <br />be calculated using 75% of the U.S. Department of Labor, Bureau of labor Statistics, Consumer <br />Price Index - All Urban Consumers, San Francisco-Oakland-San Jose, CA (not seasonally <br />adjusted, all items, base period: 1982-84=100, Series No. CUURA422SAO). <br /> <br />Adjust MRF Processing Fee <br /> <br />The Labor component will be calculated by applying the sam e factors used to adjust wages. <br />benefits, workers' compensation insurance, and payroll taxes for the Transfer Station Fee to the <br />corresponding costs for Form 3-G for 2008 wages for the MRF and converting that total 2011 <br />labor cost to a per Ton cost based on 85,581 Tons per year delivered to the MRF. The Fuel and <br />Power component will be calculated by applying the same Adjustment Factor as that used in the <br />Transfer Station Fee Fuel adjustment. <br /> <br />The Other Operating and Maintenance component will be calculated by applying the sam e <br />factor used in the Transfer Station Fee O&M adjustment. <br /> <br />The followina is from Attachment 13A - Rate Adiustment for Year Two and followina <br /> <br />The three elements of compensation described in Section 7.03 (the Transfer Station Receipt <br />and Handling Fee, the MR F Recyclables Processing Fee, and the Transportation Fee) each <br />comprise three distinct cost components (and associated profit): <br />· Labor costs <br />· Fuel and power costs <br />· Other operating and maintenance costs. <br />