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) A. • Interest rate on loans used to • No interest rate adjustment. acquire capital equipment will be Interest expense (on 5.5% as specified in Contractor's • Compensation for interest expense capital and Proposal. will be based on the revised and implementation SBWMA approved Debt Service costs) • Compensation for interest expense Schedule in Attachment N for Rate will be specified on the Debt Year One (2011). Service Schedule in Attachment N Cost Form 11. • The Debt Service Schedule may be revised again for any given • Interest expense in Attachment N Rate Year for allowed and will be revised for any approved approved changes to the capital changes in the amount of capital equipment schedule. equipment purchased. • Interest expense will be based on ten (10) year financing terms on any approved additional capital. B. • Any non - operating fees (but not • Actual amount paid in prior year fines) paid by Contractor (e.g., to for Regulatory Agency Fees will be Regulatory Agency U.S. Department of Transportation, adjusted by one hundred percent Fees Bay Area Air Quality Management (100 %) of CPI Index used to adjust District, Local Enforcement Cost F - "Other costs." Agency, Bay Area Water Quality Control Board, California Highway Patrol). Total Contractor • Calculated as the sum of the • Same method as prior year. Pass - Through Contractor Pass - Through Costs. Costs Collection Services Franchise Agreement with Recology San Mateo County Attachment K City of Redwood City Contractor's Compensation and Rate Setting Process Page 17 of 26