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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 /> F. • Step One: • Adjust to reflect 80% of the one <br /> Initially adjust Attachment N 2008 (1) year average index change in <br /> Other costs, direct costs using 80% of the change in the U.S. Department of Labor, <br /> and indirect, the U.S. Department of Labor, Bureau of Labor Statistics, <br /> excluding Bureau of Labor Statistics, Consumer Price Index — All Urban <br /> depreciation and Consumer Price Index — All Urban Consumers, U.S. city average (not <br /> wages and benefits Consumers, U.S. city average (not seasonally adjusted, all items, <br /> seasonally adjusted, all items, base period: 1982 -84 =100, series <br /> base period: 1982 -84 =100, series no. cuur0000sa0). Average index <br /> no. cuur0000sa0). Average index change between index for May of <br /> change between index for May prior year and April of current year <br /> 2008 and April 2010 (i.e., twenty (i.e., twelve (12) months). <br /> four (24) months). <br /> • For Rate Year Three (2013) only, <br /> • Step Two: service level change adjustment <br /> In order to reflect 2011 base costs, for direct other costs based on <br /> adjust the costs resulting from the one - hundred percent (100 %) of <br /> adjustment in Step One using 80% the service level changes and for <br /> of the change in the U.S. indirect other costs based on <br /> Department of Labor, Bureau of sixty -five percent (65 %) of service <br /> Labor Statistics, Consumer Price level changes as described in <br /> Index — All Urban Consumers, U.S. Table 2. <br /> city average (not seasonally <br /> adjusted, all items, base period: <br /> 1982 -84 =100, series no. <br /> cuur0000sa0). Average index <br /> change between index for May <br /> 2009 and April 2010 (i.e., twelve <br /> (12) months). <br /> • Service level change adjustment <br /> will be made for direct other costs <br /> based on one - hundred percent <br /> (100 %) of the service level <br /> changes and for indirect other <br /> costs based on sixty -five percent <br /> (65 %) of service level changes as <br /> described in Table 2. <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 12 of 26 <br />