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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 /> reflected market rates for authorized by Agency and <br /> equipment. SBWMA, depreciation expense <br /> will be revised to reflect actual <br /> • Quantity Adjustment: Revise costs of used equipment. <br /> number of pieces of equipment <br /> specified in Attachment N Cost <br /> Form 4 to reflect Agency changes • Depreciation on used capital <br /> in accounts, lifts, and pulls (see equipment will be calculated on a <br /> Table 2). Any purchase of straight line method, using a ten <br /> additional equipment must be (10) year service life. If used <br /> authorized by SBWMA. capital equipment is taken out of <br /> Depreciation on such additional service before the expiration of <br /> capital equipment will be added to the Term, the remaining <br /> the adjusted base depreciation. undepreciated net book value less <br /> Depreciation of new equipment market value shall be treated as <br /> will be based on a ten (10) year an expense in the following year <br /> life from date placed in service. in which the equipment is <br /> removed from service. <br /> • If purchase of used equipment is <br /> authorized by Agency and <br /> SBWMA, depreciation expense <br /> will be revised to reflect actual <br /> costs of used equipment. <br /> • Depreciation expense shall be <br /> based on Contractor's <br /> depreciation schedule in <br /> Attachment N Cost Form 11 for <br /> the appropriate year, as adjusted <br /> for any authorized change to <br /> capital equipment urchases. <br /> p p <br /> • Depreciation on used capital <br /> equipment will be calculated on a <br /> straight line method, using a ten <br /> (10) year service life. If used <br /> capital equipment is taken out of <br /> service before the expiration of <br /> the Term, the remaining <br /> undepreciated net book value less <br /> market value shall be treated as <br /> an expense in the following year <br /> in which the equipment is <br /> removed from service. <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 14 of 26 <br />