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14-084.08 Sunshine Recyclers: Solid Waste Disposal IK-o81.0g CITY MANAGER CITY(Wu/N., Mark Calhoun,City Manager y® 10210 E. Sprague Avenue • Spokane Valley WA 99206 (509)720-5000 • Fax: (509)720-5075 •cityhall@spokanevalley.org August 31, 2021 Marc B. Torre President Sunshine Disposal&Recycling 2405 North University Road Spokane Valley,WA 99206 Re: 2021/2022 Solid Waste Transfer, Transport, and Disposal Rates, Contract 14.084.08 effective December 1,2021 Dear Marc, We would like to thank Sunshine Disposal & Recycling, Inc. ("Sunshine") for its solid waste transfer,transport,and disposal services this past year. We very much appreciate your hard work and customer service and we look forward to our ongoing partnership. 2021/2022 Rate Based on CPI This letter is in regard to the rates for 2021/2022 effective December 1,2021. 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 was originally effective December 1, 2015, and has and will occur each December 1 thereafter. Pursuant to our discussions, we understand that this automatic increase will result in an increase of 2.127%to the Service and Organics Fees, which would result in increased rates as follows (rates do not include additional administrative fee amount): • Service Fee: o Prior to adding 3.6% refuse tax: $106.60 per ton (from $104.38 per ton last year) o After adding 3.6%refuse tax: $110.44 per ton • Service Fee minimum: o Prior to adding 3.6%refuse tax: $17.61 per ton (from $17.24 last year) o After adding 3.6%refuse tax: $18.24 • Organics Fee: $57.92 per ton (from $56.71 per ton last year) • Organic Fee minimum: $11.57 (from$11.33 last year) Administrative Fee 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." For the 2021/2022 year, the projected tonnage is estimated to be 93,000 tons of waste. Based on this tonnage, the City fee would be $1.34 per ton to collect the full $125,000 administrative fee. The City has utilized the administrative fee in past years to buy down the total tipping fee (composed of the Service Fee plus Administrative Fee) and Service Fee minimum rates. This year the City desires to utilize the administrative fee to buy down the Service Fee minimum rate. 2021/2022 Rates We request that the total tipping fee be assessed at its full amount. We also request that the before-tax Service Fee minimum charged for trips with an amount of waste up to and including 320 pounds be reduced from $17.61 to $16.84. The City shall provide for the reduction by compensating Sunshine$0.77 per trip.To reduce coin-handling at the scale house, Sunshine may impose a fee less than this amount pursuant to contract section 5.2(A)(1). If this option is exercised we request that Sunshine notify the City of the amount to be charged before it is imposed. The City shall pay for the reduction in the Service Fee minimum from the $125,000 administrative fee revenue as part of its ongoing management of its solid waste system. With such reduction,the rates for 2021/2022 will be as follows. • Total Tipping fee: $106.60 per ton (Service Fee) + $1.34 per ton (administrative fee) = $107.94 per ton ($111.83 per ton including the 3.6%refuse tax) • Service Fee minimum=$16.84($17.45 including the 3.6%refuse tax) (up to 320 pounds per trip) We request that the Organics Fee be assessed at its full amount as follows. • Organics Fee: $ 57.92 per ton. • Organic Fee minimum: $11.57.To reduce coin-handling at the scale house,Sunshine may impose a fee less than this amount pursuant to contract section 5.2(B). If this option is exercised we request that Sunshine notify us of the amount to be charged before it is imposed. Note-Refuse tax of 3.6% does not apply to yard waste. At this time, we understand that you have estimated 93,000 tons of solid waste for 2021/2022. Further, we understand you have estimated there will be 24,000 trips at the Service Fee minimum rate. We request that for 2021/2022 you collect and remit to the City the resulting total administrative fee amount based on the $1.34 per ton administrative fee and necessary $0.77 per trip reduction to the Service Fee minimum cost based upon the actual tonnage collected and actual number of trips at the Service Fee minimum,rather than on estimated amounts. We request that you provide calculations of these amounts (fees, tonnage,trips, etc.)with each quarterly remittance of the administrative fee. This will allow the City to provide the appropriate amount from the administrative fee to reduce the Service Fee minimum in the specified amounts without resulting in varying balances due to differences in the actual versus estimated trips. These adjustments will go into effect in accordance with the Agreement as of December 1, 2021. If you agree with the above fees 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 -Cetith&" Mark Calhoun, City Manager 9 do - �/ ATTEST. vJ APPROVED AS TO FORM: • 040L-v- ristine Bainbridge, City Cler Office o f e City Att r-ney ACCEPTED AND AGREED: CONTRACTOR SUNSHINE RECYCLERS, INC. By: Name: M �4- T 'e Its: fi-cs i cee 7' �..41 SUNSDIS-01 LPARISOT ,d►�oRL CERTIFICATE OF LIABILITY INSURANCE DA8/31/20221 TE ) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES ' BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Alliant Insurance Services,Inc. PHONE FAX 818 W Riverside Ave Ste 800 (A/c,No,Ert):(509)325-3024I(A/C,No):(509)325-1803 Spokane,WA 99201 - ADDRESS: INSURER(S)AFFORDING COVERAGE NAIC# INSURER A:Pioneer Specialty Insurance Company 40312 INSURED INSURER B:Tokio Marine Specialty Insurance Company 23850 Sunshine Disposal,Inc;Sunshine Recyclers Inc. INSURER C: PO Box 13369 INSURER D: Spokane Valley,WA 99213-3369 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP 1TR_ TYPE OF INSURANCE INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR CPP1245956 9/1/2021 9/1/2022 DAMAGE TO RENTED 1,000,000 X PREMISES(Ea occurrence) $ MED EXP(Any one person) $ 10,000 PERSONAL&ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 POLICY X JE X LOC PRODUCTS-COMP/OP AGG $ 2,000,000 OTHER: $ A AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT 1,000,000 (Ea accident) $ X ANY AUTO CPP1241445 9/1/2021 9/1/2022 BODILY INJURY(Per person) $ OWNED r— SCHEDULED AUTEO�S ONLY AUTOS BODILY INJURYp (Per accident) $ AUTOS ONLY _ AUUTOS ONLY D (Per acEcident)AMAGE $ $ A X UMBRELLA LIAB X OCCUR EACH OCCURRENCE $ 3,000,000 EXCESS LIAB CLAIMS-MADE UMB1041609 9/1/2021 9/1/2022 AGGREGATE $ 3,000,000 DED X RETENTION$ 10,000 A WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY STATUTE ER ANY PROPRIETOR/PARTNER/EXECUTIVE Y/N CPP1245956 9/1/2021 9/1/2022 E.L.EACH ACCIDENT $ 1,000,000 OFFICER/MEMBER EXCLUDED? N/A (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 1,000,000 It yes,describe under 1,000,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ B Pollution Liability PPK2250420 3/15/2021 3/15/2022 Occurrence 5,000,000 B Pollution Liability PPK2250420 3/15/2021 3/15/2022 Aggregate 5,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached If more space is required) Excess Policy#: 4389470,Term:9/1/2021 to 9/1/2022,Carrier:GuideOne National Insurance Co,Limits:$4,000,000 XS$3,000,000 City of Spokane Valley is additional insured(primary and non-contributory)under General Liability with respect for ongoing operations performed for the City per form attached. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Cityof Spokane ValleyTHE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN p ACCORDANCE WITH THE POLICY PROVISIONS. 11707 E Sprague Ave,Suite 103 Spokane Valley,WA 99206 AUTHORIZED REPRESENTATIVE ��- m00% ACORD 25(2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD COMMERCIAL GENERAL LIABILITY WN GL 139 06 18 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - CONTRACTORS - OPERATIONS AND COMPLETED OPERATIONS - WITH ADDITIONAL INSURED REQUIREMENT IN CONSTRUCTION CONTRACT This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART 1. Additional Insured—Operations (2) That portion of "your work" out of which A. Section II—Who Is An Insured is amended the injury or damage arises has been put to include as an additional insured: to its intended use by any person or or- ganization other than another contractor (1) Any person or organization for whom you or subcontractor engaged in performing are performing operations when you and operations for a principal as a part of the such person or organization have agreed same project. in writing in a contract or agreement that such person or organization be added as 2. Additional Insured—Completed Operations an additional insured on your policy; and A. Section II—Who Is An Insured is amended (2) Any other person or organization you are to include as an additional insured: required to add as an additional insured (1) Any person or organization for whom you under the contract or agreement de- are performing operations when you and scribed in Paragraph 1. above. such person or organization have agreed Such person(s) or organization(s) is an add- in writing in a contract or agreement that tional insured only with respect to liability for such person or organization be added as "bodily injury", "property damage" or "per- an additional insured on your policy; and sonal and advertising injury"caused, in (2) Any other person or organization you are whole or in part, by: required to add as an additional insured a. Your acts or omissions; or under the contract or agreement de- b. The acts or omissions of those acting on scribed in Paragraph 1. above. your behalf; Such person(s) or organization(s) is an addi- tional insured only with respect to liability for in the performance of your ongoing opera "bodily injury", "property damage" or "per- tions for the additional insured. sonal and advertising injury"caused, in whole B. With respect to Additional Insured - Opera- or in part, by: tions, coverage is limited as follows: a. Your acts or omissions; or This insurance does not apply to "bodily in- b. The acts or omissions of those acting on jury" or"property damage"occurring after: your behalf; (1) All work, including materials, parts or and included in the "products-completed op- equipment furnished in connection with erations hazard". such work, on the project(other than ser- vice, maintenance or repairs) to be per- formed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or WN GL 139 06 18 Page 1 of 2 Includes copyrighted material of Insurance Services Office, Inc.,with its permission. B. With respect to Additional Insured — Corn- D. With respect to the insurance afforded to pleted Operations, coverage is limited as fol- these additional insureds, the following is lows: added to Section III—Limits Of Insurance: (1) A person or organization's status as an in- If coverage provided to the additional insured sured under Additional Insured — Corn- is required by a contract or agreement, the pleted Operations continues only for the most we will pay on behalf of the additional period of time required by any written con- insured is: tract or agreement. (1) The minimum amount required by the (2) The insurance provided to the additional contract or agreement; or insured does not apply to "bodily injury", (2) The Limits of Insurance shown in the Dec- "property damage" or "personal and ad- larations; vertising injury" arising out of"your work" for which a consolidated (wrap-up) insu- whichever is less. ance program has been provided by the This endorsement shall not increase the ap- prime contractor-project manager or plicable Limits of Insurance shown in the Dec- owner of the construction project in which larations. you are involved. E. With respect to the insurance afforded to 3. Primary and Noncontributory these additional insureds, the following addi- The following is added to the Other Insurance tonal exclusion applies: Condition and supersedes any provision to the This insurance does not apply to: contrary: "Bodily injury", "property damage" or "per- Primary And Noncontributory Insurance sonal and advertising injury"arising out of the This insurance is primary to and will not seek con- rendering of, or the failure to render, any pro tribution from any other insurance available to an fessional architectural, engineering or survey- additional insured under your policy provided that: ing services, including: (1) The additional insured is a Named Insured un- (1) The preparing, approving, or failing to der such other insurance; and prepare or approve, maps, shop draw- ings, opinions, reports, surveys, field or- (2) You have agreed in writing in a contract or ders, change orders or drawings and agreement that this insurance would be pri- specifications; or mary and would not seek contribution from (2) Supervisory, inspection, architectural or any other insurance available to the additional engineering activities. insured. 4. Other Provisions Applicable to Additional In- This exclusion applies even if the claims sured — Operations and Additional Insured — against an additional insured allege negli Completed Operations gence or other wrongdoing in the supervision, hiring, employment, training or monitoring of A. The Amendment of Insured Contract Defini- others by that insured, if the "occurrence" tion (Endorsement CG 24 26) does not apply which caused the "bodily injury" or "property to an additional insured. damage", or the offense which caused the B. The coverage provided under Paragraph f. of "personal and advertising injury", involved the the definition of"insured contract" under Sec- rendering of or failure to render any profes- tion V—Definitions does not apply to an ad- sional services by you with respect to your ditional insured under this endorsement un- providing engineering,architectural or survey- less required by a written contract or ing services in your capacity as an engineer, agreement. architect or surveyor. C. The insurance afforded to such additional in- sured only applies to the extent permitted by law; and If coverage provided to the additional insured is required by a contract or agreement, the in- surance afforded to such additional insured will not be broader than that which you are re- quired by the contract or agreement to provide for such additional insured. WN GL 139 06 18 Page 2 of 2 Includes copyrighted material of Insurance Services Office, Inc.,with its permission.