Agmt10 Recology San Mateo County

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• • ATTACHMENT K CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS Table 1 Adjustment to Proposed Costs for Annual Adjustment to Contractor's Cost Rate Year One (2011) Contractor's Compensation for Rate Years Compensation Two — Ten (2012 - 2020) G. • The adjustment process outlined • The adjustment process outlined below for depreciation will be below for depreciation will be Depreciation for applied separately to each of the applied separately to each of the Collection vehicles four (4) categories of capital four (4) categories of capital and Containers equipment: Collection Vehicles, equipment: Collection Vehicles, Other Vehicles, Containers, and Other Vehicles, Containers, and Other Equipment. Other Equipment. • Price adjustment of 2008 • No indexed cost adjustments shall equipment costs shown in be made to depreciation over the Attachment N up to CPI remaining Term. In Rate Year adjustment to actual month Two (2012) when determining ordered. CPI Index: the U.S. Contractor's Compensation for Department of Labor, Bureau of Rate Year Three (2013), if Labor Statistics, Producer Price changes in service levels (see Index Industry Data for motor Table 2) warrant the purchase of vehicle body manufacturing, truck, additional capital equipment, bus, car, and other vehicle bodies, depreciation on additional capital for sale separately (not seasonally equipment whose purchase has adjusted, base date: 8212, series been authorized by SBWMA will no. pcu336211336211). Average be added to the adjusted index change between index for depreciation expense. March 2008 and that for actual month ordered. • Depreciation expense shall be based on Contractor's • Price Adjustment: Actual cost of depreciation schedule in purchase will be used if purchase Attachment N Cost Form 11 for price is less than CPI - adjusted the appropriate year, as adjusted price. for any allowed and approved change to capital purchases. • Change in sales or other tax will be separately adjusted to reflect • Added new capital equipment will the actual tax rate at time of be depreciated over ten (10) years purchase. from date placed in service. Agency has no responsibility to • Price Adjustment: If the total price pay Contractor for remaining net of a capital equipment category book value of any Containers not increases more than the inflation fully depreciated at end of Term, adjustment, then Contractor may unless Agency elects to purchase request additional adjustment to Containers pursuant to subsection depreciation in 2010; in such 8.05.F. case, Contractor must demonstrate that prices paid • If purchase of used equipment is Collection Services Franchise Agreement with Recology San Mateo County Attachment K City of Redwood City Contractor's Compensation and Rate Setting Process Page 13 of 26