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4 <br /> <br />CNG Fuel <br />Actual Costs from the most recent audited financial statement <br />multiplied by Schedule G-NGV1, compiled and published by the <br />Pacific Gas and Electric Company <br />Other Operating Costs Actual costs from the most recent audited financial statement <br />multiplied by CPI - U (CUURS49BSA0) <br />General & Administrative <br />Costs <br />Actual Costs from the most recent audited financial statement <br />multiplied by CPI - U (CUURS49BSA0) <br />Profit Calculation <br />Profit for the coming Rate Period will be calculated by dividing the <br />Total Calculated Costs projected for the coming Rate Period by an <br />operating ratio of (.90) and subtracting the result from such Total <br />Calculated Costs <br />Interest Expense <br />Interest Expense is Fixed at $306,727.97 for Rate Period One <br />through Six unless additional financings of trucks and equipment are <br />approved by City <br />City Fees Adjust by actual change <br /> <br />An example of the cost-based method is set forth below. <br />Cost-Based Method Example A B C D <br />Costs Categories Rate Period Two <br />Audited Costs <br />Year Ending <br />June 30, 2021 Indices <br />Rate Period <br />Three <br /> <br />Labor Costs $4,931,215.30 $4,980,527.46 <br /> <br />$5,154,347.87 <br />Vehicle Maintenance Costs $416,386.80 <br /> <br />$420,550.67 103.24% <br /> <br />$434,176.51 <br />Transportation Costs $2,564,651.57 $2,590,298.09 103.49% $2,680,699.49 <br />Depreciation Expense $1,026,668.60 $1,057,468.66 $1,026,668.60 <br />Container Replenishment Fund $223,165.87 $225,397.53 $227,651.51 <br />Other Operating Costs: <br />Uniforms $25,380.88 $25,634.69 103.49% $26,529.34 <br />Insurance $283,897.84 $286,736.81 103.49% $296,743.93 <br />Yard Rent $311,977.33 $315,097.11 103.49% $326,093.99 <br />Battery Processing <br />Other Costs $26,988.62 $27,258.51 103.49% $28,209.83 <br />Other Tip Fees: <br />Net Composting Cost $897,941.01 $906,920.42 $925,058.83 <br />Misc. Materials C&D Wood Other $181,215.04 $183,027.19 $186,687.73 <br />Diesel Fuel $26,013.02 $26,273.15 101.00% $26,535.88 <br />CNG Fuel $349,756.64 $353,254.20 111.70% $394,584.95 <br />General & Administrative Costs: <br />General & Admin $1,564,978.25 $1,580,628.03 103.49% $1,619,595.99 <br />Total General & Administrative Costs $1,564,978.25 $1,580,628.03 3.49% $1,619,595.99 <br /> <br />Total Annual Costs of Operations $12,830,236.77 $12,979,072.51 $13,353,584.44 <br /> <br />Operating Ratio $1,425,581.86 $1,442,119.17 4.08% $1,483,731.60 <br /> <br />Disposal Fees: <br />Solid Waste Disposal Costs $1,892,622.41 $1,911,548.63 3.00% $1,949,401.08 <br />Net Recyclables Processing Costs $1,372,692.33 $1,402,876.20 2.20% $1,402,876.20 <br />Interest Expense $306,727.97 $336,159.36 $306,727.97 <br />Cost-Based Method Example A B C D <br />1109