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5. Outside contracted workers from third party sources: the adjustment factor for non- CBA direct contract labor will be based on the average index change* in the U.S. Department of Labor, Bureau of Labor Statistics, Private Industry Employment Cost Index for Total All workers (not seasonally adjusted, total benefits, series no. CI U2030000000000A). Base costs in categories described in paragraphs 3 and 5 above will be adjusted as follows: (1) For Rate Year Two, the base costs will be multiplied by the average index change between May 2010 and April 2011; (2) For all subsequent years, the current costs will be multiplied by the average index change between May of the prior year and April of the current year. The appropriate index for each cost component is described in paragraphs 3 and 5. Once the collective bargaining agreements in place in 2010 have expired, the wage and benefit costs will also be adjusted by the average index change between May of the prior year and April of the current year. The index to be used for both adjustments is described in paragraph 2(b) on the prior page under "Adjustment to Costs." B. Fuel and Power 1. The adjustment factor for power will be based on the average change in PG&E rates for electricity (cents per kwhr). 2. The Adjustment Factor for fuel will be based on the average per cent change in the Producer Price Index #2 Diesel Fuel (PPI) using the U.S. Department of Labor, Bureau of Labor Statistics, Producer Price Index - Commodity Index for #2 diesel fuel (not seasonally adjusted, fuels and related products and power, base date = 8200, Series No. WPU057303). Base cost per Ton or Ton/mile in categories described in paragraphs 1 and 2 above will be adjusted as follows: (1) For Rate Year Two, the base cost per Ton or Ton/mile will be multiplied by the average change in unit prices of electricity or the average index change for fuel between May 2010 and April 2011; (2) For all subsequent Years, the current cost per Ton or Ton/mile will be multiplied by the average change in unit price of electricity or the average index change between May of the prior year and April of the current year. The appropriate index is described in paragraph 2. C. Depreciation There is no price adjustment for depreciation after Rate Year One. D. Other Operatino and Maintenance Costs The Adjustment Factor for Other Operating and Maintenance Costs, including all sub- components, will be based on eighty percent (800/0) of the average index change in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index - All Urban Consumers, U.S. city average (not seasonally adjusted, all items, base period: 1982- 84=100, series no. cuurOOOOsa). The costs per Ton or Ton/mile in this category will be adjusted in the same manner as those in other categories that employ an index-based adjustment. Section 2. Adiust Transfer Station Fee * The term "average index change" in this Attachment 13-A means the percentage change between the simple average of all twelve (or fewer) monthly index levels for one year and the same average for a following year. Facility Agreement, Attachment 13A Compensation Adjustment Subsequent Years Page 3 of 6