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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 /> • <br /> H. • Step One: • No additional adjustments. <br /> Initially adjust 2008 costs in <br /> Allocated Indirect Attachment N using one - hundred • If purchase of additional <br /> Depreciation Costs percent (100 ( Y0) of the change in equipment is authorized by <br /> (related to vehicle the U.S. Department of Labor, SBWMA, depreciation expense will <br /> and container Bureau of Labor Statistics, be revised to reflect the actual cost <br /> maintenance Producer Price Index Industry Data of the additional equipment. <br /> equipment, shop for motor vehicle body <br /> equipment, office manufacturing, truck, bus, car, and • If purchase of used equipment <br /> equipment, etc.) other vehicle bodies, for sale is authorized by Agency and <br /> separately (not seasonally SBWMA, depreciation <br /> adjusted, base date: 8212, series expense in the following year <br /> no. pcu336211336211). Average will be revised to reflect the <br /> index change between Index for actual cost of the used <br /> March 2008 and April 2010 (i.e., equipment. <br /> twenty six (26) months). <br /> • Step Two: <br /> In order to reflect 2011 base costs, <br /> adjust the costs resulting from the <br /> adjustment in Step One using the <br /> U.S. Department of Labor, Bureau <br /> of Labor Statistics, Producer Price <br /> Index Industry Data for motor <br /> vehicle body manufacturing, truck, <br /> bus, car, and other vehicle bodies, <br /> for sale separately (not seasonally <br /> adjusted, base date: 8212, series <br /> no. pcu336211336211. Average <br /> index change between for May <br /> 2009 to April 2010 (i.e., twelve (12) <br /> months). <br /> • If purchase of used equipment is <br /> authorized by Agency and <br /> SBWMA, depreciation expense in <br /> the following year will be revised to <br /> reflect the actual cost of the used <br /> equipment. <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 15 of 26 <br />