14-084.01 Sunshine Recyclers, Inc. ILI;rDLI .O I
Spokane
Valley®
11707 E Sprague Ave Suite 106 ♦ Spokane Valley WA 99206
509.921.1000 ♦ Fax: 509.921.1008 ♦ cityhall®spokanevalley.org
November 6, 2015
Marc B. Torre
President
Sunshine Recyclers, Inc. dba Sunshine Disposal&Recycling
2405 North University Road
Spokane Valley,WA 99206
Re: 2016 Solid Waste Transfer, Transport, and Disposal Rates, Contract 14.084.01
Dear Marc,
We would like to thank Sunshine Recyclers, Inc. ("Sunshine") for its solid waste transfer,
transport, and disposal services this past year. The first year of the City of Spokane Valley's
(the "City") agreement with Sunshine (the "Agreement") for such services has been
successful for the City and our citizens and we look forward to our ongoing partnership.
2016 Rate Based on CPI
This letter is in regard to the rates for 2016. All capitalized terms herein shall have the
same meaning as set forth in the Agreement unless otherwise defined. As you are aware,
pursuant to Section 5.3 of the Agreement, Sunshine is entitled to an automatic increase in
the Service Fee and Organics Fee equal to:
90% of the percentage change in the average CPI for the 12 month period July 1
through June 30 of the calendar year the adjustment becomes effective as compared
to the CPI average for the preceding twelve month period and multiplying the result
by the then applicable Service Fee and Organics Fee.
The rate increase is effective December 1, 2015, and each December 1 thereafter. Pursuant
to our discussions, we understand that this automatic increase will result in an increase of
1.31%to the Service and Organics Fees,which would result in increased rates as follows:
Service Fee: $93.20 per ton (from $92.00 per ton) + additional administrative fee
amount
Service Fee minimum: $15.40 (from $15.20)
Organics Fee: $50.65 per ton (from $50.00 per ton)
Organic Fee minimum: $10.13 (from$10.00)
Administrative Fee
Further, pursuant to Section 5.4, Sunshine is required to pay the City an administrative fee
of$125,000. This fee may be "added, as applicable, to the fees set forth in Section 5.2, as
adjusted, to make up the total tipping fees that [Sunshine] charges." The additional rate
shall be "based upon the annual projected tonnage of Acceptable Waste." The City and
Sunshine originally agreed upon an additional amount of$2.75 per ton to be added to the
rates to provide for the administrative fee, which was based upon an initial estimate of
45,500 tons.
Administrative Fee Overage
You have indicated that you currently estimate a substantial increase in the tonnage
received in 2015, and that instead of collecting 45,500 tons, you will collect approximately
63,000 tons. Based upon that amount, Sunshine will collect approximately $48,250 more
than the $125,000 administrative fee owed to the City pursuant to the Agreement. The
Agreement does not specify how overages shall be accounted for. However, since the
amount added to the Service and Organics fees shall be set "as applicable" and is based
upon the projected tonnage, the City hereby requests that Sunshine incorporate the
$48,250 overage into its rate to be applied towards the administrative fee due to the City in
2016. By applying the overage towards the administrative fee owed in 2016, and using a
projected tonnage of 60,000 tons, Sunshine would then be required to collect$1.55 per ton
in order to provide the full $125,000 administrative fee.
2016 Rates
By our calculations, this will result in customers seeing a net increase in the Service Fees of
0% and will require no increase to the minimum Service Fee. The 2016 rates would then
be as follows:
Service Fee: $93.20 per ton+ $1.55 (administrative fee) = $94.75 per ton
Service Fee minimum: $15.20
Organics Fee: $50.65 per ton (from$50.00 per ton)
Organics Fee minimum: $10.13 (from $10.00)
These adjustments will go into effect in accordance with the Agreement as of December 1,
2015.
If you are in agreement with administrative fee rate, Service Fee and Service Fee minimum
as set forth herein, please sign below to acknowledge the receipt and concurrence to set the
rates as provided herein. Please return two copies to the City for execution. A fully
executed original copy evidencing the agreement between the City and Sunshine for the
new rates will be mailed to you for your files. This letter shall supplement the Agreement
solely as provided herein, but shall not otherwise amend or modify the Agreement and all
terms of the Agreement shall remain in full force and effect.
Very truly yours,
CI Y F POKANE VALLEY
•
ike Jason, City Manager
ATT.T: APPROVED AS TO FORM:
Christine Bainbridge, City lerk Office f the City Attorney
ACCEPTED AND AGREED:
CONTRACTOR
SUNSHINE RECYCLERS,INC.
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