17-187.01 Waste Management: 2018 Rate Schedule t'---\ -iTs-1 , a I
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YUMA
WA*Th MANAOMPAEMIT
WASTE MANAGEMENT
November 06,2018 11321 E Indiana Rd
Spokane Valley,WA 99206
City of Spokane Valley
Attn: City Clerk, Christine Bainbridge
cainbridge@spokanevalley.org
11707 East Sprague Avenue, Suite 106
Spokane Valley, Wa 99206
Re: 2018 Disposal Adjustment
Please find the,enclosed 2018 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$100.39
per ton.
Please review this revised 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,
j„IAA-%00...011
Jesse Granado III
District Manager, Spokane Valley Hauling
Waste Management of Washington, Inc.
b V '
Attachment B-Initial Contract Rates
Spokane Valley
CPI% 2.39%
4/1/2018 12/1/2018
Daily Monthly Delivery Haul Daily Monthly Delivery Haul
Service Level(based on pick ups) Rent Rent Charge' Charge* Rent Rent Charge' Charge*
All Sector Non-compacted 10 cubic yard Drop-box $ 2.69 $ 39.52 $ 51.53 $ 81.63 $ 2.75 $ 40.46 $ 52.76 $ 83.57
Drop-box Non-compacted 15 cubic yard Drop-box $ 3.68 $ 51.83 $ 51.53 $ 81.63 $ 3.76 $ 53.06 $ 52.76 $ 83.57
Collection Non-compacted 20 cubic yard Drop-box $ 4.66 $ 64.13 $ 51.53 $ 81.63 $ 4.77 $ 65.66 $ 52.76 $ 83.57
Non-compacted 25 cubic yard Drop-box $ 4.96 $ 67.52 $ 51.53 $ 81.63 $ 5.07 $ 69.13 $ 52.76 $ 83.57
Non-compacted 30 cubic yard Drop-box $ 5.24 $ 70.89 $ 51.53 $ 81.63 $ 5.36 $ 72.58 $ 52.76 $ 83.57
Non-compacted 40 cubic yard Drop-box $ 5.84 $ 86.28 $ 51.53 $ 81.63 $ 5.97 $ 88.33 $ 52.76 $ 83.57
Compacted 10 cubic yard Drop-box outside contract $ 51.53 $ 131.83 outside contract $ 52.76 $ 134.97
Compacted 20 cubic yard Drop-box outside contract ' $ 51.53 $ 131.83 outside contract $ 52.76 $ 134.97
Compacted 25 cubic yard Drop-box outside contract $ 51.53 $ 131.83 outside contract $ 52.76 $ 134.97
Compacted 30 cubic yard Drop-box outside contract $ 51.53 $ 131.83 outside contract $ 52.76 $ 134.97
Compacted 40 cubic yard Drop-box outside contract $ 51.53 $ 131.83 outside contract $ 52.76 $ 134.97
Drop-box Ancillary Fees Per Unit Per Unit
Multifamily Recycling Fee(per cubic yard of DB size)2 $ 5.60 $ 5.73
Return Trip(per event) $ 25.00 $ 25.59
Stand-by Time(per minute) $ 1.60 $ 1.63
Container cleaning(per yard of container size) $ 10.00 $ 10.23
Drop-box excess mileage(over 5 mi),per one-way mile $ 3.00 $ 3.07
Delivery Daily Monthly Haul Delivery Daily Monthly Haul
Service Level Fee Rental Rental Charge Fee Rental Rental Charge
Temporary Non-compacted 10 cubic yard Drop-box $ 51.53 $ 2.69 $ 39.52 $ 104.99 $ 52.76 $ 2.75 $ 40.46 $ 107.49
Containers Non-compacted 20 cubic yard Drop-box $ 51.53 $ 4.66 $ 64.13 $ 104.99 $ 52.76 $ 4.77 $ 65.66 $ 107.49
Non-compacted 30 cubic yard Drop-box $ 51.53 $ 5.24 $ 70.89 $ 104.99 $ 52.76 $ 5.36 $ 72.58 $ 107.49
Non-compacted 40 cubic yard Drop-box $ 51.53 $ 5.84 $ 86.28 $ 104.99 $ 52.76 $ 5.97 $ 88.33 $ 107.49
Hourly Rate Drop-box Truck+driver $ 75.02 $ 76.81
Additional Labor(per person) $ 29.95 $ 30.66
Extra Contaminated recycling material pick-up(per loose cubic yard of material collected)3 $ 10.00 $ 10.23
*The City's disposal fee as it exists on the date of execution or as thereafter modified shall be itemized
separately on Customer invoices. The Contractor shall charge Customers the actual disposal cost
without mark-up.
'Charged only upon first delivery. Any empty and returns are charged Haul Charge.
'Per haul.
3 Flat Rate. No disposal fee added to charge.
Waste Management,Inc.
ConsunterPrke Index or CPI: The words"Consumer Price Index"or"CPI"means the Consumer Price
Index for All Items, December 1996..100 for All Urban Consumers (CPI-U), West Size Class SIC,as
published by the United States Department of Labor,Bureau of Labor Statistics. The Parties may refer to
the Bureau of Labor Statistics website or other official source to determine the applicable CPI Index.
4.3 Compensation Adjustments
4.31 Annual CPI Modification
The Contractor's collection service charges and miscellaneous fees and Contract options contained in
Attachment B,excluding waste disposal fees,for each level of service shall increase or decrease each year
by 90%of the annual percentage,change in the average CPI for the 12•monih period July 1 through June
30 of the calendar year the as(j ustment becomes effective as compared to the CPI average for the preceding
12 month period and multiplying the result by the'then applicable service charges and miscellaneous
fees. Such,.jnc ceases or decreases arc,considcrcd,part of this,Contract that occur eannirne*cally on,anannuall.
'oasis and shall not require utditiohal' ty° ouzici *iproair province such Increases of decreases are
subject to City review and verification as set forth beisw for the amount of such increase.or decrease.
Adjustments to the Contractor's collection service charge shall be made in units of one cent ($0.01).
Fractions less than one cent($0.01)shall not be considered when making adjustments.
Rates shall be adjusted annually,beginning December 1,2018.The Contractor shall submit in Writing and
electronic form to the City far,review and verification a Rate Adjustment rautPment,calculating the.new
rates for the next year,on of b y,September 1"ef,each year,starting September 1, 2618.;Tbe,,City shall
review and provide comments to any errors With the calculations,by September 15m'of each year.In the
event that the Contraixor<ddes,nut submit a Rate Adjustment Statement by September l',the City shall
calculate and unilaterally implement a rate adjustment based on the best available information as of
September 1"of that year•for,the appliceble.period,and the Contractor shall lose the right to appeal this
action.
•
Absent City notification and subsequent remedy of errors,the new rates shall take effect on December I"
of that year.Contractor shall notify Custotners of the impending rate adjustment by October I5'e,at least
45 days prior to the pew rate going into effect.Should ratepayers not receive notification by October 15"',
due to missed deadlines by the Contractor,implementation of the new rates shall-be delayed by one month
without.oppottunity for recovery of lost revenue.An example of rate a4justsnents•dne.to Consumer Price
Index changes is provided in Attachment D.
4.3.2 Changes ha Disposal Processing Sites
If the Contractor is required by the City or other governmental authority to use a Garbage disposal site other
than those being used at the initiation of this Contract, the Contractor shall submit a detailed proposal,
including full disclosure ofrielevant Cost impacts,for the adjustment of the rates to reflect any additional
cost or savings to the Contrafetor.The Contractor's Cates pursuant to this Contract in such a case sliall,be
adjusted so as to pass through any resulting additional costs incurred by or savings to the Contractor. The
City and Contractor agree to negotiate in good faith and to make any changes to the rates to accomplish a
pass-through of any such costs or savings,
4.3.3 Other Modifications
Except as otherwise expressly provided for by this Contract,Contractor shall not adtjust or modify the rates
charged to Customers above the rates set forth in Attachment`B due to employee wage'increases,changes
in commodity prices for Recyclables,or other changes affecting the collection system.
In the event that unforeseen .temporary market failure prevents or precludes compliance with the
requirements of Section 3.1.10,the Contractor may request a temporary adjustment or other relief from the
requirements of that Section 3.1.10. The City may request any and all documentation and data reasonably
necessary to evaluate such request by the Contractor,and may retain,at its own expense,an independent
third party to audit and review such documentation and such request. If such third party is retained,the
City shall take reasonable steps,consistent with State law,to protect the confidential or proprietary nature
of any data or information supplied by the Contractor.
If an unforeseen market failure persists more than nine months,the Parties agree to engage in good faith
negotiations to determine a mutually acceptable course of action,including but not limited to eliminating
the materials from the list of Recyclables,changing Customer preparation requirements, or any other
t mu wally agreeable solution. . -
The City,shall review the Contractor's request within 120 days of receipt. Upon the City's review of the
Contractor's request,the City shall approve or deny the request,at its sole discretion.
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4.2 Compensdtion to the City
At the option of the City and upon 90 days written notice, the 'Contractor shall pay to the City an
Administrative Fee on or before the last wotting day of each month during the-remaining term of this
Contract. The Administrative Fee shall be based on Vie gross receipts received by the Contractor from
Customers under this Contract for the prior.month's receipts,excluding Drop box disposal fees.Calculation
of grass receipts shall not include an Adminittrative Fee collected froni Customers. Wtieri groi idiitg'notice
to begin the Administrative Fee,the City shall set the initial Administrative Fee rate. The Administrative
Fee shalt be assessed as a perCentagc!'of gross receipts ieceived by the Contractor from!those Customers
since the last Administrative Fee payment period,consistent with the administrative fee calculations shown
in Attachment D. The Contractor's obligations to pay the Administrative Fee shall extend past the
termination date of this Contract until the Contractor is no longer receiving payments from Customers for
services provided under this Comiact.
The rates included in Attachment B,as modified during the term of this Contract,include the Administrative
Fee,and Customers shall n5t be separately charged an itemized Administrative Fee. Attachment D contains
an example of how the AdrttiniMtrative Fee'isihelttded in rates,and lists the Contractor's herviee untie,the
City's share of the retail rate,the State excise tax associated with the Administrative Fee,.and the combined
retail rate. Any adjustments to the Administrative Fee rate shall be calculated in a manner consistent with
the example shown in Attachment D.
The Contractor shall fully partie:ipate with'any City billing audit to confirm the Contractor's Customer
receipts during any accounting period during the,terin of the Contract. The audit shall be confined to
confirming Customer billingr"ates,Contractor receipts.for services provided under this Contract and bad
debt recovery.
The Administrative Fee may be changed by the City in any year,provided that the change is synchronized
with the annual Contractor rate modification described In Section 3.3. The City shall notil9+the Contactor
of the new Administrative Fee for the following yeer.by August 1",and the Contractor shall itemize and
include the appropriate adjustment in its Bate Adjustment Statement provided September 1"of each year.
In the event that the Administrative Fee is adjusted,either up or down,the Contractor shall add or subtract
an amount equivalent to the state excise tax, as may be adjusted from time to time by the State of
Washington.
In addition,the Contractor shall be responsible for payment of all applicable permits; licenses,fees and
taxes as described in Section 7.10,Permits and Licenses.