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• • <br /> ATTACHMENT K <br /> CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS <br /> Table 1 <br /> Adjustment to Proposed Costs for Annual Adjustment to Contractor's <br /> Cost Rate Year One (2011) Contractor's Compensation for Rate Years <br /> Compensation Two — Ten (2012 - 2020) <br /> A. Two adjustments will be made: • Annually adjust labor costs based <br /> on the collective bargaining <br /> Wages and benefits • Revise 2008 wage rates and agreements between the Previous <br /> for all employees benefits shown on Attachment N Contractor and unions in effect on <br /> represented through to reflect wage rates and benefit the Commencement Date, until <br /> collective bargaining levels to be in effect in 2011 they expire. <br /> agreements (CBA). based on the collective bargaining <br /> agreements between the Previous • After expiration of the above <br /> Contractor and unions in effect in collective bargaining agreements, <br /> 2010. The number of full -time annually adjust wage and benefit <br /> equivalent employees and hours costs for the one (1) year change <br /> in each labor category shown in in the U.S. Department of Labor, <br /> Attachment N Cost Form 2 will be Bureau of Labor Statistics, Private <br /> used in making the adjustment. Industry Employment Cost Index <br /> for Service- Producing Industries <br /> • Revise to reflect service level (seasonally adjusted, total <br /> changes in 2010 from the 2008 compensation, <br /> proposal assumptions by cis201 s000000000i successor to <br /> increasing or decreasing wage series no. ecs12102i). Average <br /> and benefits costs by the index change between index for <br /> percentage change in accounts, May of prior year to April of <br /> lifts, or pulls as described in Table current year (i.e., twelve (12) <br /> 2. months average change)'. <br /> • For Rate Year Three (2013) only, <br /> adjust wages and benefits to <br /> reflect service level changes by <br /> increasing or decreasing wage <br /> and benefit costs by the <br /> percentage change in accounts, <br /> lifts, and pulls as described in <br /> Table 2. No further adjustment for <br /> changes in service levels will be <br /> made after Rate Year Three <br /> (2013). <br /> The term "average index change" <br /> in this Attachment K means the <br /> percentage change between the <br /> simple average of all twelve (12) (or <br /> fewer) monthly index levels for one <br /> (1) year and the same average for a <br /> following year. <br /> Collection Services Franchise Agreement with Recology San Mateo County Attachment K <br /> City of Redwood City Contractor's Compensation and Rate Setting Process <br /> Page 7 of 26 <br />