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Houston-Moore Group (HMG) <br />January 10, 2019 <br />Hourly Rate <br />Schedule Year Effective Date <br />Labor <br />Hourly Rate <br />Increase <br />Insurance <br />Hourly Rate <br />Increase <br />Total <br />Hourly Rate <br />Increase <br />2012 March 8, 2012 0.0%0.0%0.0% <br />2013 Continued 2012 Rates 0.0%0.0%0.0% <br />2014 January 1, 2014 6.0%0.0%6.0% <br />2015 May 1, 2015 4.0%0.0%4.0% <br />2016 Continued 2015 Rates 0.0%0.0%0.0% <br />2017 May 1, 2017 13.0%8.0%21.0% <br />2018 May 1, 2018 3.5%0.0%3.5% <br />2019 TBD 3.5%0.0%3.5% <br />Notes: <br />The current HMG MSA allows for a 2019 maximum hourly rate increase of 3.5% beginning <br />January 1, 2019. HMG is proposing this contractually allowable increase of 3.5%, effective <br />February 1, 2019. <br />History of Diversion Authority and HMG Contracting <br />HMG contract became effective March 8, 2012. <br />Total labor hourly rate schedule increase from 2012 to 2018 was 26.5%. <br />2017 rate schedule was negotiated with the Diversion Authority with the new HMG MSA, <br />effective May 1, 2017. This required HMG provide additional Professional Liability <br />Insurance that would not be reimbursable to the Diversion Authority.