14-084.03 Sunshine Disposal: Disposal Rates 2017/2018 H "OSC
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11707 E Sprague Ave Suite 106♦ Spokane Valley WA 99206
509.921.1000 4 Fax: 509.921.1008 ♦ cityhall®spokanevalley.org
October 18, 2017
Marc B.Torre
President
Sunshine Recyclers,Inc.dba Sunshine Disposal&Recycling
2405 North University Road
Spokane Valley,WA 99206
Re: 2017/18 Solid Waste Transfer, Transport, and Disposal Rates, Contract 14.084.01
effective December 1,2017
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 three 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.
2017/18 Rate Based on CPI
This letter is in regard to the rates for 2017/18 effective December 1, 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
2.16% 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: $96.57 per ton (from $94.54 per ton) + additional administrative fee
amount
Service Fee minimum: $15.96 (from$15.62)
Organics Fee: $52.48 per ton (from$51.38 per ton)
Organic Fee minimum: $10.49 (from$10.28)
Administrative Fee
Further, pursuant to Section 5.4, Sunshine is required to pay the City an annual
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. The City has utilized this overage in
2015 and subsequent years to buy down the Service Fee and Service Fee Minimum Rates
and the remaining balance after the year ending November 30, 2017 is complete is
projected to be $2,766. For the 2017/18 year we request that Sunshine collect an
administrative fee rate of$1.67 per ton. The projected tonnage for the year is estimated to
be 73,500. This would provide $122,745 in administrative fee revenue. We then request
that $2,255 of the remaining administrative fee balance be used to bring the total to
$125,000.
2017/18 Rates
We request that the Service Fee and Organics Fee be assessed at their full amounts. We
request that the Service Fee Minimum charged for trips with an amount of waste up to and
including 300 pounds be reduced from $15.96 to $14.96. The City shall provide for the
reduction by compensating Sunshine $1.00 per trip. Currently, we understand that you
estimate 11,800 trips at the Service Fee Minimum cost level, which would result in an
estimated total of $11,800. The City shall pay for the reduction from the $125,000
administrative fee revenue as part of its ongoing management of its solid waste system.
With such reduction,the rates for 2017/18 will be as follows.
Service Fee: $96.57 per ton + $1.67 (administrative fee) = $98.24 per ton ($101.78
per ton including the 3.6% refuse tax)
Service Fee minimum: $14.96 ($15.50 including the 3.6% refuse tax) (up to 300
pounds per trip)
Organics Fee: $52.48 per ton
Organics Fee minimum: $10.49
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,
2017.
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,
CIT/Y OF SPOKANE VALLEY
Mark Calhoun, City Manager
ATTEST: APPROVE' S TO FORM:
Christine Bainbridge, City Clerk Office o he City Attorney
ACCEPTED AND AGREED:
CONTRACTOR
SUNSHINE RECYCLERS,INC.
By:
Name: M 3 Tor r
Its: Pe-ts.oe✓\ .—