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1 <br /> <br />EXHIBIT F <br />DETAILED RATE ADJUSTMENT METHODOLOGY <br />The Detailed Rate Adjustment Methodology shall consist of two types of annual adjustments: indexed-based or <br />cost-based, as set forth in the table below. <br /> Rate Period Adjustment Type <br />Rate Period Commencement Date Adjustment Method <br />One July 1, 2020 Baseline <br />Two July 1, 2021 Index-Based <br />Three July 1, 2022 Cost-Based <br />Four July 1, 2023 Index-Based <br />Five July 1, 2024 Index-Based <br />Six July 1, 2025 Index-Based <br /> <br />I. The index-based method involves application of indices to various costs that comprise the Total Annual <br />Costs for the current Rate Period (i.e., July 1 through June 30) to determine the Total Calculated Costs for the <br />coming Rate Period. In addition, disposal and processing costs will be adjusted to reflect actual tonnage collected <br />during the most-recently completed 12-month period. The Total Calculated Costs projected for the coming Rate <br />Period divided by the Total Calculated Costs for the current Rate Period is the Rate Adjustment Factor, which shall <br />be rounded to the nearest thousandth. The Rate Adjustment Factor is applied to each of the current Rates to <br />determine the Rates for the coming Rate Period. <br />The following indices published by the United States Department of Labor, Bureau of Labor Statistics (BLS), are <br />used to calculate the adjustment for each vehicle fuel, vehicle maintenance and all other costs, with the exception of <br />CNG Fuel which shall use Schedule G-NGV1, compiled and published by the Pacific Gas and Electric Company <br />Analysis and Rate Department and reported monthly in its “Gas RateFinder” publication <br />(http://www.pge.com/tariffs). Labor, Disposal and other tip fees shall be calculated using the actual change in <br />values from year to year. The change in each index is calculated on a twelve-month period using the average <br />change in the index from the previous calendar year. In the event any index is discontinued, a successor index shall <br />be selected by the City. Successor indices shall be those indices that are most closely equivalent to the discontinued <br />indices as recommended by BLS. <br /> <br />The Cost Categories for the indexed-based method are set forth below. <br />Cost Category Indexed-Based Method <br />Labor Costs <br />Prior Rate Period approved costs adjusted by Actual Values Teamster <br />Local 70 Union Agreement and Automotive Machinist Local 1546 <br />Union Agreement <br />Vehicle Maintenance Costs Prior Rate Period approved costs multiplied by Motor Vehicle <br />Maintenance and Repair Index (CUUR0000SETD) <br />Transportation Costs <br />Prior approved Rate Period approved costs multiplied by <br />Actual per ton transportation costs multiplied by most recent twelve- <br />month tonnage transported <br />Disposal and other Tip Fees <br />Disposal and other tip fees shall be calculated using the actual change <br />in values from year to year multiplied by total tonnage for the most <br />recently completed twelve-month period <br />Cost Category Indexed-Based Method <br />1106