Laserfiche WebLink
City of Pleasanton Exhibit H: Index-Based Rate Adjustment Mechanism <br /> Franchise Agreement with Pleasanton Garbage Service <br /> <br />City of Pleasanton Page H-4 June 7, 2022 <br />W. Labor-Related Costs includes all wage and benefit costs for all employees, including union <br />employees, administrative employees, officers and stockholders of Contractor. <br />For example, in Rate Period Two when calculating the Labor-Related Costs for Rate Period <br />Three, the Labor-Related Costs of Rate Period Two will be multiplied by one plus the Annual <br />Percentage change in the CPI-W. <br />2. Fuel Costs. The Fuel Cost component of Total Calculated Costs for the then-current Rate <br />Period is multiplied by one plus the Annual Percentage Change in the Fuel Index. <br />3. Other Costs. The Other Costs component of the Total Calculated Costs for the then-current <br />Rate Period is multiplied by one plus the Annual Percentage Change in the CPI-U. <br />4. Direct Depreciation. Direct Depreciation is $1,165,971 per year for Rate Periods One through <br />Ten is not annually adjusted, and shall be zero in any subsequent Rate Periods unless Parties <br />mutually agree to a different amount. <br />5. Total Annual Cost of Operations. The Total Annual Cost of Operations for the coming Rate <br />Period equals the sum of the costs calculated in subsections A.1 through A.4 above. <br />B. Profit. Profit for the coming Rate Period will be calculated by dividing the Total Annual Cost of <br />Operations for the coming Rate Period (the value calculated in Section 3.A of this Exhibit) by an <br />operating ratio (.90) and subtracting from the result the Total Annual Cost of Operations for the <br />coming year. The Total Annual Cost of Operations shall not include any costs for the following (1) <br />Any mark-up or profit related to Transfer Station Labor Costs paid to M&M Land Company, LLC, (2) <br />truck repair costs paid to Pleasanton Truck & Equipment Repairs, (3) hauling, grinding, material sales <br />marketing costs paid to Recycling and Resource Recovery Systems, LLC; (4) Recyclable Material <br />Processing cost paid to City Automatic Recycling, Inc.; (5) CNG Fuel costs paid to Amador Valley <br />Industries, LLC ; (6) land lease costs paid to M&M Land Company, LLC; (7) land lease costs paid to <br />Southfront LLC; (8) Disposal costs paid to Waste Management; (9) Organic Materials Processing <br />costs paid to Waste Management; and, (10) hauling costs paid to Tiger Lines. <br /> <br />Profit = <br />Total Annual Cost of Operations for <br />Coming Rate Period <br />Operating Ratio <br />− Total Annual Cost of Operations for <br />Coming Rate Period <br />C. Pass-Through Costs <br />1. Vehicle Maintenance and Repair. The Vehicle Maintenance and Repair Cost per vehicle for <br />the then-current Rate Period is multiplied by one plus the Annual Percentage Change in the <br />Motor Vehicle Maintenance and Repair Index then multiplied by the total number of <br />Collection vehicles in use (including all route vehicles and spares) for services provided under <br />this Agreement. <br />2. Transfer and Transport Costs. The Transfer and Transport Cost per Ton for the then-current <br />Rate Period is multiplied by one plus the Annual Percentage Change in the CPI-U then