17-089.02 Waste Management: 2018 Rate Schedule VIM
WASTE MANAGEMENT
WASTE MANAGEMENT
November 06,2018 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: 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,
JAAA,Guifidel
•
Jesse Granado III •
District Manager, Spokane Valley Hauling
Waste Management of Washington, Inc.
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4.2 Compensation to the City
4.2.1 City Fees
The Contractor shall pay to the City a one-time fee of$47,500 upon Contract execution to cover City costs
for procuring this Contract.
The Contractor shall also pay to the City a City Fee on or before the last working day of each month during
the term of this Contract,starting on May 31, 2018. The City Fee shall be based on the grass receipts
received by the Contractor from Customers under this Contract Calculation of gross receipts shall not
include the City Fee collected from Customers. The initial City Fee shall be assessed at 12.5%((gross
receipts received by the Contractor from those Custamers since the last City Fee payment period,consistent
with the administrative fee Satdulatioft shown in Attachment D. The City Fee shall be used by the City for
costs the City has identified from solid waste services, including costs for contract administration,solid
waste planning and management,and for a portion of its street preservation and maintenance programs.
Within the total City Fee collected, no more than 1.0% assessed on the gross receipts received by the
Contractor from Customers may be used for Contract administratiout purposes. The Contractor's
obligations to pay the City Fee shall extend past the tenni/tation date of this Contract until the Contractor
is no longer receiving payments from Customers for services provided under this Contract.
The rates included in Attactuttent B,as modified during the term of this Cataract,incklde the City Fee,and
Customers shall not be separately charged an itetttized City Fee. Attachment 1)Contacts an example of
how the City Fee is included in rates,and lists the Contractor's service rate,the City's share of the retail
rate,the State excise tax associated with the Cky Fee,,and the combined retail rate. Any adjustments to the
City Fee rate shall be calculated in a manner conliStent With the example shown in Attachment D.
The Contractor shall fully participate with any City billing audit to confirm the Contractor's Customer
receipts during any accounting period during the term of the Contract. The audit shall be confined to
confirming Customer billing rates, Contractor receipts for services provided under this Contract and bad
debt recovery.
The City 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 notify the Contactor of the
new City Fee for the following year by August l", and the Contractor shall itemize and include the
appropriate adjustment in its Rate Adjustment Statement provided September l"of each year. In the event
that the City 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, Icenses, fees and
taxes as described in Section 6+13,Permits t<nd Licenses.
4.3.2 Periodic Adjustments
Periodic adjustments shall be made to Contractor collection rates to reflect increases or decreases in City
disposal fees for Garbage,beginning with adjustment(s)for increases or decreases in the disposal fees that
may occur after the Execution Date. In the event of a change in disposal fees,the disposal fee component
of rates charged to Customers shall be adjusted, baled on Container conteht weights specified by the
Contractor in its proposal and included in Attachment B of this Contract.
An example of rate modifications due to disposal fee changes is provided in Attachment D.
4.3.3 Changes in Disposal or Compostables Processing Sites
If the Contractor is required by the City or other governmental authority to use Garbage disposal or
Compostables processing sites other than those being used at the initiation of this Contract,the Contractor
shall submit a detailed.proposal,including full disclosure of relevant cost impacts,for the adjustment of the.
rates to reflect any additional Cost or savings,to the Contractor.The Contractor's rates pursuant to this
Contract in such a case shall be adjusted so as to pass through any resulting additional costs incurred by or
savings to the Contractor. TheCity 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.
if the Contractor is no longer be able to find a processing site for all.collected Compostables,after a good
faith effort to locate a processing fatality acceptable to the City,the City reserves the right,to drop the
collection of affected Compostables,such as'Food Scraps,from the Contwt and the City and Contractor
shaft negotiate rate reduction of Confpostable end reduction or increase.of Garbage rates in good faith to
reflect the reduction in service for Compostables and increase in Garbage collections.If the Contractor is
subsequently able to find a processing site for Compostables or the site that was originally used for
processing Compostables 3s able to resume taking the dropped materials, the City reserves the right to
reinstate the collection of those materials and to reverse the previously agreedrate reduction for the
reduction in service.
4.3A Other Modifications
Except as otherwise expressly provided for by this Contract,Contractor shall not adjustor modify rates due
to employee wage increases, changes in commodity prides for Recyclables, changes in Compostables
processing fees other than directed by the City sutj.ectto 4.3.3,Garbage collection service level shifts,or
other changes affecting the collection system.
In the event that unforeseen temporary market failure prevents or precludes compliance with the
requirements of Section 3.1.12,the Contractor may request a temporary adjustment or other relief from the
requirements of that Section 3.1.12. 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 dectmtentation 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 Recyclabtes, changing Customer preparation requirements, or any other
mutually-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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