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<br />6A <br />Page 14 <br /> <br />1. Determine Percentage Change in Costs <br />The initial step in this process is to determine Adjustment Factors for labor costs, fuel <br />and power costs, and other operating and maintenance costs. Each of these <br />components, in turn, comprises sub-components as follows: <br /> <br />Labor <br />· Wages for represented employees; <br />· Benefits for represented employees; <br />· Workers' compensation insurance; <br />· Payroll taxes. <br /> <br />Fuel and Power <br />· PG&E charges for electricity; <br />· Diesel fuel. <br /> <br />Other Operating and Maintenance <br />· Wages and benefits for nonr epresented em ployees plus associ ated workers' <br />compensation insurance and payroll taxes; <br />· Repairs and maintenance to vehicles and stationary equipment; <br />· Lease/rental expenses for vehicles; <br />· Depreciation on vehicles and stationary equipment; <br />· Insurance. safety and claims; <br />· General and administrative. <br /> <br />The Adjustment Factor for labor will be determined separately for the Transfer Station, <br />for the MRF and for Transportation. In each case, the 2011 wages for represented <br />employees ("direcf' labor) will be updated by inputting 2012 wage rates payable under <br />the collective bargaining agreements that were in effect in 2009 and are still in effect. <br />The 2012 benefits [pension, health an d welfare, and vacation/sick leave benefits monetized to <br />an hourly dollar amount] will be based on the collective bargaining agreements that were in <br />effect in 2009 and are still in effect. Once the initial expiration date in the collective bargai ning <br />agreements that were in effect in 2009 has occurred, wages and benefits fo r represented <br />employees will subsequently be adjusted based on changes in the Consumer Price Index (CPI- <br />W). The Percentage Change in the Consumer Price Index shall be calculated using the U.S. <br />Department of Labor. Bureau of Labor Statistics, Consumer Price Index - Urban Wage Earners <br />and Clerical Workers, San Francisco-Oakland-San Jose, CA (not seasonally adjusted. all items. <br />base period: 1982-84= 1 DO, Series No. CWU RA422SAO). There will be no increase in the <br />number of standard or overtime hours. <br /> <br />The workers' compensation insurance adjustment factor will be based the same factor <br />used to adjust Other Operating and Maintenance Costs as described below. <br />The payroll taxes Adjustment Factor will be equal to the adjustment factor for wages. <br />The Adjustment Factor for fuel will be based on changes in the Producer Price Index #2 <br />Diesel Fuel (PPI). The Percentage Change for the Producer Price Index #2 Diesel Fuel <br />shall be calculated using the U.S. Department of Labor, Bureau of Labor Statistics. <br />Producer Price Index - Commodity Index for #2 diesel fuel (not seasonally adjusted, <br />fuels and related products and power, base date = 8200, Series No. WPU057303). The <br />Adjustment Factor for power will be based on changes in PG&E rates for electricity <br />(cents per kwhr) The Adjustment Factor for Other Operating and Maintenance Costs will be <br />based on changes in the Consumer Price Index (CPI-U). The Percentage Change in the <br />