Loading...
14-224.01 Waste Management: Solid Waste Collection Svcs 2— .o EM WASTE MANAGEMENT November 3, 2016 11321 E Indiana Rd Spokane Valley,WA 99206 City of Spokane Valley Attn: City Clerk, Christine Bainbridge cbainbridge@spokanevalley.org 11707 East Sprague Avenue, Suite 106 Spokane Valley, Wa 99206 Re: 2016 Disposal Adjustment Please find the enclosed 2016 rate schedule for Solid Waste collection services provided by Waste Management to the residents and businesses of the City of Spokane Valley. The disposal component of the rates is based upon the new Sunshine disposal rate of$96.27 per ton. Please review this schedule and let me know of any discrepancies. Also,please note that customers will be notified of this increase through a notice on their invoice that contains the rate increase. Waste Management looks forward to providing quality Solid Waste collection services to the City of Spokane Valley in the years ahead. Sincerely, nwmcildj4.4.".-40 Jesse Granado III District Manager, Spokane Hauling Waste Management of Washington, Inc. • • • Se\altib odei� % ll . 11707 E Sprague Ave Suite 106•Spokane Valley WA 99206 509.921.1000•Fax: 509.921.1008 1 cityhall@spokanevalley.org October 12,2016 Marc B.Torre President Sunshine Recyclers,Inc.dba Sunshine Disposal&Recycling 2405 North University Road Spokane Valley,WA 99206 Re: 2017 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 two years 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. 2017 Rate Based on CPI This letter is in regard to the rates for 2017. 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 1,2016,and each December 1 thereafter. Pursuant to our discussions,we understand that this automatic increase will result in an increase of 1.433%to the Service and Organics Fees,which would result in increased rates as follows prior to the inclusion of the 3.6%refuse tax: Service Fee: $94.54 per ton (from $93.20 per ton) + additional administrative fee amount Service Fee minimum:$15.62 (from$15.40) Organics Fee:$51.38 per ton(from$50.65 per ton) Organic Fee minimum: $10.28(from$10.13) • • • • • 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 During 2015 Sunshine collected 63,411 tons instead of collecting the estimated 45,500 tons. Based upon that amount,Sunshine collected approximately $49,380 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 requested that Sunshine incorporate the$49,380 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 then collected$1.55 per ton in order to provide the full$125,000 administrative fee. Sunshine is now projecting that it will collect 67,000 tons in 2016 as compared to the 60,000 tons that was previously estimated,which will leave the remaining administrative fee overage collected in 2015 at$16,767. The remaining overage of$16,767 is equal to the original administrative fee overage collected in 2015 ($49,380) less the amount applied to rate adjustments in 2016 ($21,150) less the amount applied to maintain the minimum service charge in 2015 and 2016 at$15.20 (total of$4,363 for 2015 and$7,100 for 2016). The City hereby requests that Sunshine incorporate $11,200 to maintain the minimum service fees as set forth below and the remaining$5,567 overage into the rate to be applied towards the administrative fee due to the City in 2017. By applying the overage towards the administrative fee owed in 2017, and using a projected tonnage for 2017 of 69,000 tons,Sunshine would then be required to collect$1.73 per ton in order to provide the full $125,000 administrative fee. 2017 Rates By our calculations,this will result in customers seeing a net increase in the Service Fees of 1.60%and will reduce the minimum Service Fee by 1.30%. The 2017 rates would then be as follows: ` I i • • Service Fee: $94.54 per ton + $1.73 (administrative fee) = $96.27 per ton ($99.74 per ton including the 3.6%refuse tax) Service Fee minimum:$14.48($15.00 including the 3.6%refuse tax) Organics Fee:$51.38 per ton(from$50.65 per ton) Organics Fee minimum: $10.28(from$10.13) Refuse tax of 3.6%does not apply to yard waste. These adjustments will go into effect in accordance with the Agreement as of December 1, 2016. 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, CITY OF SPOKANE VALLEY 11 Ir, ... eglithi ----' /o 4/i/f0 Mark Calhoun,Acting City Manager ATTES APPROVED AS TO FORM: pristine Bainbridge,City de' Office tthe City Attorney ACCEPTED AND AGREED: CONTRACTOR SUNSHINE RECYCLERS,INC. B17-7 Name: /11.1/ y!3 /0/y.e.... Its: !d c%idaii t- • ;e= ; ® asa;=:emus;„g /'-''ii,: wt,7�� ® »w&■e&@§a §@#&!& ,,,,,,,,,,,,, , ,, ,,, ,,,,,,, =�a7-3“,s @g; ; »4�a� ;r, g.54”HG«22tt2 ] T. 77§: / \\ \\\\\ \\ \ \\ \\ \\\\\\\\ To A; § §§\(\ §)§§ ® )\§} k ; ® \ \) ) EA; E°aE 2 - - m � 2 ; \ {k � ; U \ ° ; 2222; Va§§§§§§ a»1 3n»»YMt,1 4"" ;!§;;;;;:|;;; 02!0!§2§!§@!,K# - ..uuouu 1,.1.1\\}\\\�)), )g,,;4!\g Eag\kk ]\\)§2§§!ik§k\ / �(§k!/§§/\\ §!§§) =,Gms; ,;'gram g ge,4gz�.gL4T7...T�w, §e®,� #■nwa, _ §;----m § §§k§()§ ,,,,,,,,,,_„ , @@!m!@am§¥@ $ =;e4�2: e®;;m¥; m ; ,e /] �;r5u #..�� w § -®� li . ,88,.,,T,A =:::§ # \\\\\\\\\\\\\ \ \\\\\\\\\\\\\\ \ m # � ;1@=„222;; ]§]]] ,n,2� E . „ ,. ,------._ ] ) §@&■ ■m\\\,; \ 2 . w \ ]k # ;; # f- %%%%% |§;!!!!!!|;;- :l-. mm.. , | !Ofcur 2!§§§§§` §\§ ,§t§![ lmmE »!g!! C66 ° ! #_:= ll,0000 0 Caa,&„$6&! M \ ,,ei;;§§§§!!!e§;� a ! 03: \ §, -� g � .t,. ''g§] | )\) \-\- \\ \ \ ]§|§[/2 1111\\\ \ \ \r ' |22 ©° gEI, T, ..\ - ] )\ J . S - E�g � �, @g7; I ,„ ,,,,,,,,,,,, , ------- ! \\\\\\\\ \\ \\\\\\\\\\\\\\\\\\\\\\\ \ \\ \\\ # a m > ; . E © - ■ ■ 11112 I /k | Z.o IN'Asg ---------. \ 2 2 31 . \ 7,13 I - |w|||||||| 2.222|| || -- §� ! �!-!)§G§!|l����� ' - i;;;;!§:== EEE 0;i—i-fEEEEE ! _ E1-2 +!\§))§((§§)k\§ !((k(§((§))kkk\k * ` // EMR ,/nag.,----- E [ ; i,—.. ! ! 2 2 |||||!! £ ! §;;; '48,'” ""El r """4"P"1"" m ;w,;,=; 2MPA4A,r; 'I 12\\\\\\\\/\\\\\ \\,\\\\\\\\\ \\\ \ \\1111\ )\ Tig=a r“., \ j \\\\ E'l," ]\]]]]§[[§ ! !]§[§]]2§§|]22 ]El \§[§]|2| 2- „„„,,,,,,,, „„„,,,,,_„ ,,„„„,,,,,„„ _ ,,,,,„ e ) ; E 2 ; n m2 $ : � \k A - k !| »K!!33 ! !|3»,!!�!�!! - -- liggga }-|||�k//\((2§2 }-|||�}/ ((222!! - � %f>g _ - ��EEm = - „EEEmE ! _ ! ®{7§}§¥ lkkk\\§§§|§§EE§ ! k\185[2|§§!!§!! ! 1/ k § § § § § 1E r \)§§e§\§fk§k§§( \\§§)((§f([§§§\\o k 12:.,,o§ .1 ! | ! !!!!8g! / k\2[; a�� .� ��� t: � mw*¥!!@wmm |§7 j\\\\ illi\\\ \\\\\—--- -..--, ,\, \\\\\ \ m ) . � - r . ! ■ - mj § 2 I �« | - w % a � al; " - ! -117 F i}�61 \! /2 \ )\#)) 7,g _-- | ; | = i} /- / I\k \\ {o --_ ; - \! ) !k)\ { ._ i !i \ ¥�3: "\ \+: \ kk§) � (ait, r : f ¥ -- ;;l � !1. xE, ! '- i_$ ! = k\ ( j\ \_ iil / \\ep)k\\ li \\ \\\ l \ \\h,W / / � ; 7�� gomo. ,„ , q@@f¥!5§;m@!@§r;|!| illi \\\\,,, \\\\\\\\ ,,,\ \ , \, , \\\\ \ m4 ; TN E@ ! ; - m = , "' 83 X met - w o w' 07, .._ Z. �I , . /\ _-«\\� \e \- . , �, . --_ - - 1 ` _ it;ai 155 IO # --} - - ;/; [� � �)k ! \|! ){/) ' )) ƒ)}t\k)\{${\ E- ) [2;-: f \)!I) \\ ! | /$1WJV �1f!!i2-n:;,Eg ! --- \=! l-,—.8.,{!{;m1 !lat-„s | | i - ` ` . �. .E!,,,°!l,, ( . 1.! : ,?,( , !))\k\\ }\(}\/(kku\\k){\!223![!2\§2;§! !)\§\\§\ 8. Adjustments to Rates,Taxes,Fees,and Other Charges.. The Rates,taxes,fees, and other charges'ttiaft be adjusted as follows: 8.1_Annual Rate Adjustment, The service component of the Rates and the total Rates for Yard Debris and Recycling provided in.Exhibit B and any applicable non- disposal rates set firth in l iilbit D shall be adjusted December 1,2015 and annually thereafter,by a percentage equal to the annual percent(+singe in the Ca nsmner Price Index run,August.to August,All Items,December 1996=100 for All Urban Consumers(CPI-U),West Size Class BIC,as published by the Bureau of Labor Statistics (http_/h ww.bls_gos'cpiehome.htm). 8.2.Adjustment to Recycling Commodity Credit. The Rates shall include a Recycling Commodity Credit that is the same as the recycling commodity credit under RCW 81.77.185(1)included in WMW's WUTC tariff applicable to Spot~ane County The Recycling Commodity Credit applicable to the Collection Services shall be adjusted at the same time and in the same amount that WMW adjusts the recycling commodity credit in its WUTC tariff applicable to Spokane County. 8.3_Adjustment for Changes to Taxes.Fees.and Other Charges. If any of these taxes,fees,or charges under Section 7 above are increased or decreased,WMW ct,att adjust the amounts charged to its residential and business customers consistent witth the increases or decreases. If the City increases or decreases any taxes,fees,or charges on. WMW's Collection Services within the Incorporated Territory,the City shall notify WMW of such taxes,fees,or other charges_ 8.4_Periodic Adjustments Due.to Extraordinary Circumstances. WMW's Rates set by this Agreement are calculated to pay certain expenses and costs that are of a contingent and uncertain nature. Therefore,in addition to the annual CPI adjustment provided by Section 8.1 above,WIM's Rate shall,upon written request of WMW,be further adjusted due to any one or more of the following causes.. (a)material changes in WMW's costs resulting from a Force Majeure event;provided that pursuant to Section 15, is excused from performance during the period of a Force Majeure and so shall notify the City prior to continuing to provide services during the occurrence of a Force Majeure if it believes or has reason to believe the provision of services may result in material changes in WMW's costs. The Parties shall jointly determine whether WMW cf.afi provide the same services or alternative services to limit the impact to WM.W's costs; (b)material changes in VJMW's costs resulting from a change in law, statute,rule,regulation,ordinance,order or requirement of any federal,state, regional or local government that is effective after the Effective.Date of this Agreement;provided 1 isilW shall notify the City of such change and the Parties shall jointly determine,to the extent possible under the changes,whether WMW may provide alternative services to limit the impact to WMW's.costs;or (c) any increase or decrease in the disposal fees(excluding disposal fees for Yard Debris)applicable to the Collection Services under this Agreement, based on the disposal component shown in Exhibit B. If WMW requests an adjustment due to the circumstances set forth above,WMW shall prepare.a rate adjustment request setting forth its calculation of the increased or decreased costs and accompanying adjustment to the Rates necessary to offset such changes. The City may request any and all documentation and data reasonably necessary to evaluate such request by WMW. The City shall act within 45 days of receipt of the request from WMW,and shall either approve or disapprove the request,provided that approval shall not be unreasonably withheld_ 8.5.Notice of Rate Increases_ WMW shall implement all adjustments to rates authorized under Sections 8.1,8.3,and 8.4 above by providing notice on the customers' invoices for the month of the adjustment. NotwithstandingW14' obligation to provide notice of rate increases hereunder,the City shall remain responsible for the 45- day notices of rate increases required under RCW 35.21.157;provided,upon written notification by the City,WMW shall include such notice on behalf of the City on the customers'invoices for the next billing cycle. 8.6.notice of Disposal Fee Increases. In order to allow WMW sufficient time to adjust its rates and provide notice to its customers under Section 8.5 above,the City shall provide WMW with at.least TEN(10)days advance written notice of any increase in the disposalfees charged by the City's designated disposal system identified pursuant to Section 11 below. If the City fails to provide such notice,and WMW is not able to adjust its rates prior to the effective date of the disposal fee increase,WMW shall prorate future customer invoices accordingly. 8.7.Non-Applicability of Revisions to WUTC Tariffs. Notwithstanding any other provision in this Agreement,the Parties agree that the Rates have been established based on the WIJTC tariff rates for Certificate No.G-237 applicable to the Incorporated Territory as of August 1,2014 and such establ+ahrd Rates are shown in Exhibit B and Exhibit D,but that any future rate adjustments shall be based upon Sections 8.1,8.3,and 8.4 above and not on any revisions to the WUTC tariff rates for Certificate No.G-237, with the exception of the recycling commodity credit,which during the term of this Agreement shall track the amounts set forth in Certificate No.G-237,Tariff 17,Item 100. Furthermore,nothing in this Agreement is intended to restrict or prohibit WMW from seeking approval from the WUTC for new and/or revised WU-TC tariff rates applicable to solid waste collection within its Certificate No.G-237 territory located outside of the Incorporated Territory 9. Additional Services. lithe City elects to offer additional solid waste collection services to residential and/or commercial customers within the Incorporated Territory,the City shall notify WMW in uniting of the additional services requested,and W1 IW shall have the right to provide such additional services during the Extended Period. If WMW elects to provide such additional services,A chap notify the City in writing within THIRTY(30)days of receipt of the City's notice and shall offer such services either: 9.1.consistent with the then-current rates for the same or similar services under its WUTC tariff applicable to Spokane County,subject to any differences in the disposal rate component as shown in Exhibit B;or 9.2.if WMW does not offer the same or similar services under its WUTC tariff, pursuant to written agreement between the Parties_ If WMW either(a)notifies the City in writing of its decision not to provide such additional services,or(b)fails to notify the City in writing within THIRTY(30)days of receipt of the City's notice,the City may contract for those services or provide those services itself within the Incorporated Territory. 10. Incorporation ofCertain G 237Tariff Service Conditions.-'Except as expressly provided herein,:the Parties agree that the'service requirements imposed puusuant to Tariff—No,:17(including re4rssons up to ai d rncTuesng tlxe third revision dated hive 11,2414) applicable to Certificate No_G-237 as provided'in Exhibit D and the current prrov-isaons of.WAC 480-70-J through 480-70-421,excluding WAC 480-70 386 2}and t]ie annual program information requirement in WAC 480-70-361(7)i criati be applicable to the CollectionServices hereunder. A copy of Tariff No_.17 is'attached hereto as Exhibit Et and is inco porated herein by this reference. All references to, TariffNo 1r shall be'deemed to be the copy of TaiffNo_ 17 attached as Exhibit I) Nottuithstanding the foregoing the following shall applyin the event of any differences or ambiguities between the terms and:conditions of this Agreement.and Tariff No. 17 and the referencedWAC provisions: 10.1.Unless'a termor condition ofTariffNo.17 or WAC section is inapplicable to the City,any reference to the WUTC in Tariff Na.-17 or WAC section shall be deemed to be a reference to the City, 10.2For any Collection Sen ice for which there is a Rate established in Exhibit B,the Rate in Exhibit B shall apply and not the rate in Tariff No:1T; 103_For any Collection Service;for which there is no Rate establi hid in Exhibit B but for ivhielitheie is a'rate iii Tariff No.17.the rate in TariffNo.17 shallapply;and 10.4 If there rs a requirement or obligation set forth in tliis Agreement that conflicts with a reiluireinent or obligation in TariffNa_17 or any;refereneed WAC section,the requirement:or obligation Set*Anita this Agreement h=s11 apply, r . • oC\C eO V M N r1 0 0 • u 0000 .1- VM .- 0 ,- M00 N O O O CO O N N M CO W N O LL N .V0 f0 O W M C) Ol N CO N O 0) M M M CO O r• n) V 4 N N N m C) M C'9 V V V V _ '-IN O O O N I� O M V V 0 .-1 N .,,C 0 0 0 N N N C') CO N N C CO N LL O O O O CO N .- 6) M 01 OO J a- N N N M M CM') M CO+) V Nr a a I .-1 N • 0 0 0 V O V CO CO V N N O1 0 0 0 V I- h V O O N r1 CO O CO C') v. N N O CO O N 1 O ,- N N N CM') M M M ,T V .0 .0 'i .-1 Q • 0 0 0 r• O N CO N- W ,- C) C O O O CO N M N r• CO O CO 01 0 CO 0 V N ,- C`7 O N- N CO M d M r• O O O M V W 0) r• N M O r• N N M N CM cM M CM V V V r-1 .-I 0 0 0 0 V M M CO CO 0C1 00) M CO A- O V CM C V N I- M O O O N O O M M C O M M Z N N M M m m M V V V V O O O CO O CO O CO N V V 0) O O O CO O V m V O N N N CO O W N CO N CO CO C) N M u Cp M O Q) M M M CO O r• V V (0 r N N N M C) CM M V V V V H.-4 0 0 0 V V W V V O r CO N 000M .7001,- 00 O— 601 O CO I- CVO CCO CO N M CO y O M O M V C`) CM C') O N V V VI N N N M M M M V V V V r1 O O 0 0) I,- 0 V .- '- CO N N CO 0 0 0 M O 0 0 N N N CO N tl0 0 N CO N I` I` r 0 N CO N CO CO N CO CO O N M CO 0) N V V O Q (NI N N CO CO CO CO CO V V V V r1 -I N r• V O CO O O O N O, 0 0 0 O 0 O CO N N N N V V CM rC O CA M CO O O r CO CO CA 0) 00 N r• Cn CA CO N M a0 O r• V V O N N N M M M M M V V V V c-1 c-1 0 0 0 N M N O 6) O O N 00 CO O 0 0 CO CO O M CO N O N O1 CO C O r• CO N N M CO N M CO O r1 W g N- N N N M M O CA O N M CO O V O O M M V V V V V c I c-I OCDOMMOMMVWMLON• 0 0 0 N N O) CO CA M M C V V > N M I� O 0) CO O CO N N M Ol Cl CO r• O O) V C) CO O V O O E r• N N N M M C) CM V V V V V ‘-is-( rN . O O O M V NCO V Cr) CO I,- CO CO dl 0 0 0 V M _ CO N- 00 n N N E CO V to W CO 6) CO O V r1 3 Q ,- N N N M M M M V V V V V In r1 .--1 C 0 V o 0 o CO CD N- coco co N ,- 00 to O O V N W W N- CO N N CO a0 W N C Q _ A ,- O N N N M m m- N m V 6- O N N N M M M M V V V V V V O s.-1 ,-1 X O O O O CO CO M CO N- N O O oo Q 7 V O O O O O CM M N 6) I` N O N 7 M II 0 CO N CO O CO O W O) O O r1 0 N CO d h 0) M a) M Cn O N M V X co 0) Cy N N CO CO CO CO CO V V d Q '0 CCI CA 'V-I eV-I TICII CO w0 Ct CO O 7 N W O 0 0 0 ,7CO N CO N O LOCO N N N m N 0 0 0 V N CO CO CO CO 6) N co W , X y = O O m N M CO M CA CO 6) O 01 id Q' Q C �)J -d. CO CA N CO O ci V CO O N M fi r ) �, y co .-- 7 VO N N M M M M CM M V .0 .0 16 7 >N d 0 U m5..< 0 N O O• 10 9 CO C L • y es 0G d y • i‘; d O.y ;.4'•d V y 0 N y 0 O . N rM T O CO o _ .d 0 d CO d d O 0 0 0 0 0 0 0 0 0 0 0 0 U0 VI Z Q = CD O. } NNNNNNNNNNNNN