17-187.04 Waste Management: Drop Box CollectionSpokane
.0.0Valley
October 2020
Community & Public Works Department
10210 E Sprague Avenue • Spokane Valley WA 99206
Phone: (509) 720-5000 • Fax: (509) 720-5075 • www.spokanevalley.org
RE: Contract no. 17.187.04 - 2020/2021 Rates for Comprehensive Drop -box Container
Collection Contract with Waste Management of Washington, Inc.
Pursuant to Section 4.3.1 of the Agreement, rates are automatically adjusted annually as follows:
90% of the annual 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 12- month period and multiplying the result by the then
applicable service charges and miscellaneous fees. Such increases or decreases are
considered part of this Contract that occur automatically on an annual basis. Rates shall be
adjusted annually, beginning December 1, 2018.
The 2020/2021 rates effective December 1, 2020 through November 30, 2021 were automatically
adjusted as follows:
Attachment B - Initial Contract Rates
Spokane Valley
B&O Adj 0.25%
CPI%
1.96%
4/1/2020
12/1/2020
Service Level (based on pick ups)
Daily
Rent
Monthly
Rent
Delivery
Charge
Haul
Charge*
Daily
Rent
Monthly
Rent
Delivery
Charge
Haul
Charge*
All Sector
Drop -box
Collection
Non -compacted 10 cubic yard Drop -box
$ 2.81
$ 41.56
$ 54.20
$ 85.85
$ 2.86
$ 42.37
$ 55.26
$ 87.53
Non -compacted 15 cubic yard Drop -box
$ 3.85
$ 54.50
$ 54.20
$ 85.85
$ 3.92
$ 55.57
$ 55.26
$ 87.53
Non -compacted 20 cubic yard Drop -box
$ 4.89
$ 67.45
$ 54.20
$ 85.85
$ 4.98
$ 68.77
$ 55.26
$ 87.53
Non -compacted 25 cubic yard Drop -box
$ 5.20
$ 71.01
$ 54.20
$ 85.85
$ 5.30
$ 72.40
$ 55.26
$ 87.53
Non -compacted 30 cubic yard Drop -box
$ 5.50
$ 74.56
$ 54.20
$ 85.85
$ 5.60
$ 76.02
$ 55.26
$ 87.53
Non -compacted 40 cubic yard Drop -box
$ 6.12
$ 90.74
$ 54.20
$ 85.85
$ 6.24
$ 92.52
$ 55.26
$ 87.53
Compacted 10 cubic yard Drop -box
outside contract
$ 54.20
$ 138.66
outside contract
$ 55.26
$ 141.38
Compacted 20 cubic yard Drop -box
outside contract
$ 54.20
$ 138.66
outside contract
$ 55.26
$ 141.38
Compacted 25 cubic yard Drop -box
outside contract
$ 54.20
$ 138.66
outside contract
$ 55.26
$ 141.38
Compacted 30 cubic yard Drop -box
outside contract
$ 54.20
$ 138.66
outside contract
$ 55.26
$ 141.38
Compacted 40 cubic yard Drop -box
outside contract
$ 54.20
$ 138.66
outside contract
$ 55.26
$ 141.38
Drop -box Ancillary Fees
Per Unit
Per Unit
Multifamily Recycling Fee (per cubic yard of DB size 3
$ 5.88
$ 5.99
Return Trip (per event)
$ 26.28
$ 26.79
Stand-by Time (per minute)
$ 1.67
$ 1.70
Container cleaning (per yard of container size)
$ 10.50
$ 10.70
Drop -box excess mileage (over 5 mi), per one-way mile
$ 3.14
$ 3.20
Temporary
Containers
Service Level
Delivery
Fee
Daily
Rental
Monthly
Rental
Haul
Charge
Delivery
Fee
Daily
Rental
Monthly
Rental
Haul
Charge
Non -compacted 10 cubic yard Drop -box
$ 54.20
$ 2.81
$ 41.56
$ 110.43
$ 55.26
$ 2.86
$ 42.37
$ 112.59
Non -compacted 20 cubic yard Drop -box
$ 54.20
$ 4.89
$ 67.45
$ 110.43
$ 55.26
$ 4.98
$ 68.77
$ 112.59
Non -compacted 30 cubic yard Drop -box
$ 54.20
$ 5.50
$ 74.56
$ 110.43
$ 55.26
$ 5.60
$ 76.02
$ 112.59
Non -compacted 40 cubic yard Drop -box
$ 54.20
$ 6.12
$ 90.74
$ 110.43
$ 55.26
$ 6.24
$ 92.52
$ 112.59
Hourly Rate
Drop -box Truck + driver
$ 78.91
$ 80.45
Additional Labor (per person)
$ 31.49
$ 32.10
Extra
Contaminated recycling material pick-up (per loose cubic yard of material collected)3
$ 10.50
$ 10.70
* The City's disposal fee as it exists on the date of
execution or as thereafter modified shall be itemized
Charged only upon first delivery. Any empty and returns are charged Haul Charge.
2Per haul.
3 Flat Rate. No disposal fee added to charge.
Waste Management, Inc.
Consumer Price Ind*x or CPI: The words " Con -3E11 r Price Index' or "CPI" means the Consumer r Price
Index :or Al! 1',ems, December 1996=100 for All Urban CCi :JE]]CrS (CPI-UJ), West Size Class RC, as
published by thu United Sates Department of Labor, l3urcau of Labor Statistics. The Parties may refer to
the Bureau of Labor St aLi icti wdisite or other official scarce to determine the applicable CPI Index.
4.3 Compensation Adjustments
4.3,1 Annual CPS Modification
The Cuntractor'., service charges and 'miscellaneous lees and Contract options contained in
Attadluner]_ B, excluding waste disposal fees, for each level of seruice shah increase or decrease each year
by 90% of the annual percentage change in the average CP1 for the 12 month period July l through June
10 of the calendar year the adjustment bccrrrnex effective as compared to the CPI average fur the preceding
12-month period and multiplying the resu:t 1 y the then applicable service charges and miscellaneous
fees. Such increases or decreases are considered part of this Contract that occur autsrrri-Beatty on an annual
01131s. atoll shall not require entinlcanaI l,Ery t:cr.]nc]t r.nprovau; provrraeC1 5AAC_t] uJCreeases or etzeases are
subject tea City review and veriticatLon as set forth bee ,w far the amount of such increase or decrease.
. djustm11ts to the Cr3ntrJct0r's collection service charge shall be rnade in unite of One eent ($O.01).
Fractions less than one cent ($O.01) shall not be considered when making adjustments.
Rates shall be adjusted annually, beginning December 1, 20l8_ The Contractor sh 1i submit in writing and
electronic town to the City for review and verification a Rate Adjustment Statement, calculating the new
rates for the next year, on or by September 1" of each year, starting September 1, 2018. The ctiy shall
review and provide comment as Lr] any error 4 with the Ca1CuLaiiDLLs, by September 1.5'" of each year_ In the
event that the Contractor does not submit 3 Rite Adjustment Statement by September 1=`, the City shall
calculate and unilaterally itrpleir_cnt a rate adjustment based on the best available information as of
September 1" of that your for the applicable- period., and the Contractor shall lose the right to appeal this
fiction_
Absent City notification and subsequent remedy of errors,. the new rates shall take effect on December
of that year. Contractor shall notify Customers of the impendi.n.g rate adjustment by October L5'1, at least
45 days prior to the new 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 opportunity for recovery of ]o$t revenue. An example ofTrite adjustments due to Consumer Price
Index changes is provided its Attachment D.
4.3.2 Changes In disposal Processing Sites
If the Contractor ism:lo ed by the City or railer governmental authority to use t, Ciarbage disposal site 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 sLLCh a cane shall be
adjusted so as to pass through any resulting additional costs incurred by or suvingr ii the Contractor_ The
City arid Contractor agree to negotiate in good faith and to maize any changes to the rates to accomplish a
pass -through of any such costs or savings_
41.3 Other Modifications
Except as otherwise expressly provided for by this Contract, Contractor shall not adjust or Truod:Cyr the rates
charged to Customers above the rates get forth in Attaehinent 13 due to employee wage increases, changes
in commodity price for Recyclablcs,c¢ other changes affecting the collevtion 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 3.1.141. The City may request any and all documentation and data reasonably
necessary t4 evaluate such request by the Contractor, and tnay retain, at its owrl 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 ste-pca, consistent with State law, to protect the confidential or proprietary nature
of any data or information supplied by the Contractor_
If ao LU'LfOreseco market failure persists more than nine mor.1l,s, the Parties agree to engage in good faith
negotiations to determine a mutually acceptable course 4€ actinn, including but not limited in eliminating
the materials from the list of Recyclables, chariging C.ustomer preparation requirerrtents, or any Other
min LLa1ly-arereeable MI] ution.
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 dlis tiO i,
Bureau of Labor Statistics
CPI -All Urban Consumers (Current Series)
Original Data Value
Series Id: CUURN400SAO,CUUSN400SA0
Not Seasonally Adjusted
Series Title: All items in West - Size Class B/C, all urban
Area: West - Size Class B/C
Item: All items
Base Period: DECEMBER 1996=100
Years: 2008 to 2019
Year
90% of
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual HALF1 HALF2 CPI% CPI
2008 131.328 131.538 132.896 133.694 134.023 135.283 136.021 135.207 134.834 133.795 131.440 129.725 133.315 133.127 133.504
2009 130.682 131.636 131.775 131.912 131.990 132.952 132.774 132.756 133.128 133.618 133.335 133.132 132.474 131.825 133.124
2010 133.366 133.513 133.863 134.133 133.889 133.635 133.685 133.704 133.544 133.745 133.930 134.328 133.778 133.733 133.823
2011 134.917 135.826 137.200 138.174 138.598 138.269 138.128 138.171 138.564 138.696 138.411 138.017 137.748 137.164 138.331
2012 138.465 138.997 140.235 140.619 140.834 140.375 139.645 139.971 140.600 140.847 140.287 139.768 140.054 139.921 140.186
2013 139.865 141.072 141.573 141.788 141.838 141.805 141.940 142.228 142.277 141.954 141.736 141.751 141.652 141.324 141.981
2014 141.998 142.120 142.813 143.077 144.253 144.522 144.435 144.317 144.506 144.214 143.398 142.669 143.527 143.130 143.923
2015 142.022 143.005 143.887 144.426 145.346 145.198 144.917 144.752 144.507 144.379 143.595 143.398 144.119 143.981 144.258
2016 143.932 144.128 144.264 145.128 145.942 145.866 145.850 145.829 146.130 146.328 146.004 145.918 145.443 144.877 146.010
2017 146.469 147.451 147.880 148.496 148.789 148.792 148.691 149.255 149.954 150.336 150.003 149.920 148.836 147.980 149.693
2018 150.564 151.200 151.702 152.350 153.201 153.546 153.464 153.797 154.158 154.729 154.625 154.228 153.130 152.094 154.167 2.652% 2.387%
2019 154.328 154.671 155.178 156.523 157.488 157.564 157.465 157.654 157.738 158.635 158.482 158.496 157.019 155.959 158.078 2.763% 2.487%
2020 158.599 159.183 159.129 158.824 158.301 158.857 158.816 2.183% 1.964%
4.2 Compensation to the City
At the option of the City and upon 90 days written notice, the Contractor shall pay to the Ci'-v 3u
Administrative Fee on or before the last working day of each month during the remaining term of this
Contract. The Administrative Fee shall be based on the gross receipts received by the Contractor lix,rn
Customers under this Contract for the prior month's receipts, excluding Drop -box disposal fees, Calculation
of gross receipts shall not include an Administrative Fee collected from Customers. When providing notice
to begin the Administrative Fee, the City shall set Ilse initial Administrative Fee rate. The Administrative
Fee shalt be assessed as a percentage of gross receipts received by the Contractor from those Customers
since the last Administrative Fee payment period., consistent with the administrative fcc calculat ions shown
En Attachment D. The Contractor's obligations to pay the Administrative Fee ~hall externd past the
termination date of this Contact until the Contractor is no longer receiving payments from Customers for
services provided under this Contract,
The rates included in Attachment B. as modified during the term of this Contract_ include the Administrative
Fee, and Customers Shull not he seFatr+telp charged an itemized Administrative Fee. AEIaclunertt D contains
a#S exaisiple of how the Arlrninisirirtive Fee. is included in. rates, and lists 1hr. Contractor's ::c`rvicc rate, the
City's share of the rt:tail rate, the State excise tax associated wilt the Administrative FCC', and the Combined
retail rate. Any ad'ustmcnts to the Administrative Fee rate slat] be calculated in a r.]am:ner LXIctisistent with
t:fr ex,rm]ale shown in .Altarehment D.
The Contractor shall fully participate with any City billing audit, to confirm. the Contractor's Customer
receipts durFii :_ny 0.,x:ounling period during the term of the Contract. 'Thee audit shall be confined to
ccmfirrnin4 Cuatciiii r billing rates, Contractor receipts for services provided under this Contract and bad
deist recovery.
The Administrative Fee may be changed by the City in any year, provided that the chingc is cyrrchronicd
with the annual Contractor rate modification cicsc:ihed in. t:tiom 3_3. The City shall nor_i.fy the ContrrLtrrr
of the new Admirri'trative Fee for the fe.11owirijj year by August 1'i, and the Contractor shall itemize and
inc] ode the appropriate adjustment in its Rate Adjursre_st Statement provided Sep=ember !' of each year.
In the even: that the Administrative Foe is adjusted, either up or down, the Contractor shall add or subs act
an amount cquivr ant to the state excise tax, as may he ad;=u:tited from time to time by the State of
Washington_
In addition, the Contractor shall be responsible for payment ;; all ; pp.icable perm; Ls, licenses, fees and
taxes as described in Section 7_ l0, Permits and Licenses_