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17-187.05 Waste Management: Drop Box Collection Rates ITY of Community&Public Works Department scpokane 10210 E Sprague Avenue♦ Spokane Valley WA 99206 Valley Phone: (509)720-5000•Fax:(509)720-5075 •www.spokanevalley.org October 2021 RE: Contract no. 17.187.05 -2021/2022 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 2021/2022 rates effective December 1, 2021 through November 30, 2022 were automatically adjusted as follows: Attachment Li-Initial Contract Rates City of Spokane Valley CPI% 1.96% CPI% 2.35% 12/1/2020 12/1/2021 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 $ 2.86 $ 42.37 $ 55.26 $ 87.53 $ 2.92 $ 43.36 $ 56.55 $ 89.58 Drop-box Non-compacted 15 cubic yard Drop-box $ 3.92 $ 55.57 $ 55.26 $ 87.53 $ 4.01 $ 56.87 $ 56.55 $ 89.58 Collection Non-compacted 20 cubic yardDrop-box $ 4.98 $ 68.77 $ 55.26 $ 87.53 $ 5.09 $ 70.38 $ 56.55 $ 89.58 Non-compacted 25 cubic yardDrop-box $ 5.30 $ 72.40_ $ 55.26 $ 87.53 $ 5.42 $ 74.10 $ 56.55 $ 89.58 Noncompacted 30 cubic yardDrop-box $ 5.60 $ 76.02 $ 55.26 $ 87.53 $ 5.73 $ 77.80 $ 56.55 $ 89.58 Non-compacted 40 cubic yardDrop-box $ 6.24 $ 92.52 $ 55.26 $ 87.53 $ 6.38 $ 94.69 $ 56.55 $ 89.58 Compacted 10 cubic yard Drop-box outside contract _ $ 55.26 $ 141.38 outside contract $ 56.55 $ 144.70 Compacted 20 cubic yard Drop-box outside contract $ 55.26 $ 141.38 outside contract $ 56.55 $ 144.70 Compacted 25 cubic yard Drop-box outside contract $ 55.26 $ 141.38 outside contract $ 56.55 $ 144.70 Compacted 30 cubic yard Drop-box outside contract $ 55.26 $ 141.38 outside contract $ 56.55 $ 144.70 Compacted 40 cubic yard Drop-box outside contract $ 55.26 $ 141.38 outside contract $ 56.55 $ 144.70 Drop-box Ancillary Fees Per Unit Per Unit Multifamily Recycling Fee(per cubic yard of DB size)' $ 5.99 $ 6.13 Return Trip(per event) $ 26.79 $ 27.41 Stand-by Time(per minute) $ 1.70 $ 1.73 Container cleaning(per yard of container size) $ 10.70 $ 10.95 Drop-box excess mileage(over 5 mi),per one-way mile $ 3.20 $ 3.27 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 $ 55.26_ $ 2.86_ $ 42.37 $ 112.59 $ 56.55 $ 2.92 $ 43.36 $ 115.23 Containers Non-compacted 20 cubic yard Drop-box $ 55.26_ $ 4.98_ $ 68.77 $ 112.59 $ 56.55 $ 5.09 $ 70.38 $ 115.23 Non-compacted 30 cubic yard Drop-box $ 55.26 $ 5.60 $ 76.02 $ 112.59 $ 56.55 $ 5.73 $ 77.80 $ 115.23 Non-compacted 40 cubic yard Drop-box $ 55.26 $ 6.24 $ 92.52 $ 112.59 $ 56.55 $ 6.38 $ 94.69 $ 115.23 Hourly Rate Drop-box Truck+driver _ $ 80.45 I $ 82.34 Additional Labor(per person) $ 32.10 $ 32.85 Extra Contaminated recycling material pick-up(per loose cubic yard of material collected)' $ 10.70 $ 10.95 *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. 'Per haul. 3 Flat Rate. No disposal fee added to charge. Waste Management,Inc. Consumer Price index or CPI: The words"Consumer Price index"or"CM"means the Consumer Price Index for All Items, December 1996=100 for All Urban Consumers (CPi-U),West Sire Class BIC,as published by the United States Department of Labor,Bureau of Labor Statistics. The Parties may refer to the Bureau of Labor Statistics wehsite or other official source to determine thc applicable CPI Index. 4.3 Compensation Adjustments 4.3.1 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 CM for the 12 month period July 1 through June 30 of the calendar year the adjustment becomes effective as compared to the CPI average fur the preceding I 2-month period and multiplying the result by the then applicable service charges and miscellaneous fees. Such increases or decreases arc considered part(srthis Contract that occur autom.aically on an annual nasis anti shall not require aaullinnal l.tiy I.mmcli r.'lproval; provided sucn occleases or decreases are subject to City review and verification as set forth bei:w for the amount of such increase or decrease. Adjustments to the Contractor's collection service charge shall he made in units of one cent (S0.O1). 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 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 City shall review and provide comment as to any errors with the calculations,by September 15th of each year.In the event that the Contractor does not submit a Rate Adjustment Statement by September 1st, the City shall calculate and unilaterally implement a rate adjustment based on the best available information as of September I"of that year for the applicable period,and the Contractor shall lose the right to appeal this action. Absent City notification and subsequent remedy of errors,thc new rates shall take effect on December t s' of that year.Contractor shall notify Customers of the impending rate adjustment by October 15'h,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 lost revenue.An example of rate adjustments due to Consumer Price index changes is provided in Attachment D. 4.3.2 Changes In 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 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. The City and Contractor agree to negotiate in good faith and to make any changes to the rates to accomplish a pass-through of arty such costs or savings. 4.3 i Other Modifications Except as otherwise expressly provided for by this Contract,Contractor shall not adjust or modify the rates charged to Customers above the rates set forth in Attachment 13 due to employee wage increases,changes in commodity prices for Recyclablcs,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,u:id 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 mor,ths,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 Recyclablcs, 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. • Bureau of Labor Statistics CPI-All Urban Consumers(Current Series) Original Data Value Series Id: CUURN400SAO,CUUSN400SA0 Not Seasonally Adjusted Sodas 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 vu%or Year 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 143.932 144.128 144.264 145.128 145.942 145.866 145.850 145.829 148.130 146.328 146.004 145.918 145.443 144.877 146.010 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 150.564 151.200 151.702 152.350 153.201 153.546 153.484 153.797 154.158 154.729 154.625 154.228 153.130 152.094 154.167 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 158.599 159.183 159.129 158.824 158.301 158.857 159.752 160.528 160.846 161.141 161.069 160.840 159.756 158.816 160.696 2.183% 1.964% 2021 161.199 162.042 163.257 165.088 166.813 168.425 164.471 2.611% 2.350% 4.2 Compensation 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 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 from Customers under this Contact 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 the initial Administrative Fee rate. The Administrative Fee shall 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 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 Contract. The rates included in Attachment B,as modified during the term of this Contract,include the Administrative Fee,and Customers shall not be separately charged an itemized Administrative Fee. Attaclunent D contains an example of how the Administrative 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 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 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 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 notify the Contactor of the new Administrative Fee for the following year by August 1",and the Contractor shall itemize and include the appropriate adjustment in its Rate Adjustment Statement provided September I"of each year. In the event that the Administrative Fcc 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.