17-089.10WasteManagementSolidWasteCollectionRateAdjustment sooka
ne
10210 E Sprague Avenue ♦ Spokane Valley WA 99206
Valley Phone: (509)720-5000 ♦Fax:(509)720-5075 ♦www.spokanevalleywa.gov
Email: cityhall@spokanevalleywa.gov
November 13, 2024
Contract No. 17-089.10
Mary EvansArea Director, Public Sector Solutions
Waste Management of Washington, Inc.
720 4th Ave., Suite 400
Kirkland, WA 98033
Re: Second Amendment to First Amended and Restated Comprehensive Garbage,
Recyclables, and Compostables Collection Contract(this "Amendment"); reference
17-089.01
Dear Mary:
As you are aware, the City is currently in the process of negotiating a new contract with
Sunshine Disposal & Recycling ("Sunshine") to take effect on January 1, 2025 for
Transfer, Transport, and Disposal Services. Pursuant to the current agreement between
Sunshine and the City, Sunshine would normally be entitled to an automatic increase in
its rate based upon CPI on December 1, 2024. Sunshine and the City are working
towards a new agreement with new rates to be effective on January 1, 2025 and each
subsequent January 1st thereafter. At the City's request, and in an effort to align all
services in the City's comprehensive solid waste system, Sunshine has agreed to forego
its automatic increase for the month of December 2024.
The City is grateful for the Contractor's flexibility in the same regard. Pursuant to
Section 4.3.1 of the First Amended and Restated Comprehensive Garbage, Recyclables,
and Compostables Collection Contract by and between the City and the Contractor made
and entered into on March 12, 2018, as amended ("Agreement"), the Contractor's rates
shall increase or decrease each year based on the following:
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.
The rates per the Agreement are set to be adjusted annually on December 1, with the next
rate adjustment set for December 1, 2024.
By signing below, the City and the Contractor agree to amend Section 4.3.1 of the
Agreement as follows to align CPI adjustments with the adjustments of the disposal rates
effective on January 1 of each year starting January 1, 2025:
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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 CPI for the 12 month period July 1 through June 30 of the
immediately preceding calendar year the adjustment becomes effective as
compared to the CPI average for the next preceding 12-month period July 1
through June 30 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 and shall not require
additional City Council approval; provided such increases or decreases are subject
to City review and verification as set forth below 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. In order to
account for the periodic adjustment of the disposal fees contemplated in Section
4.3.2 below, Oon or before October 1st of each year, the City shall deliver in
electronic form to the Contractor the per ton disposal rate that will be in effect at
the Spokane Valley University Transfer Station (excluding the Washington State
Solid Waste Tax) on January 1 of the following year. The Contractor shall deliver
submit in writing and electronic form to the City for review and verification a
Rate Adjustment Statement, calculating the new collection rates adjusted for CPI,
and disposal rates for the next year, on or by September October 4st-15th of each
year, starting September 1, 2018. As stated above, the disposal fees are excluded
from any CPI adjustment. The City shall review and provide comment as to any
errors with the calculations, by Sept October 24-5th of each year. In the event that
the Contractor does not submit a Rate Adjustment Statement by September
October 15th4-st, the City shall calculate and unilaterally implement a rate
adjustment based on the best available information as of September October
15th45t of that year for the applicable period, and the Contractor shall lose the right
to appeal this action.
Absent City's notification and subsequent remedy of errors, the new rates shall
take effect on December January 1st of that the following year. Contractor shall
notify Customers of the impending rate adjustment by October November 15th, at
least 45 days prior to the new rate going into effect. Should ratepayers not receive
notification by October November 15th, 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.
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As the City and the Contractor transition to Annual CPI Modifications to take effect on
January 1st of each year, the Contractor specifically agrees not to modify its rates for the
period of December 1, 2024 — December 31, 2024. As consideration for the Contractor
foregoing the automatic increase for CPI for the month of December 2024, the City
specifically agrees to pay the Contractor a one-time fee, which shall be calculated by
determining the amount that the Contractor is foregoing between December 1, 2024 and
December 31, 2024 due to the delayed implementation of the CPI. The Contractor shall
provide the City with an invoice and supporting documentation for the requested
payment. The City shall review the invoice and supporting documentation. Upon
approval by the City, which shall not be unreasonably denied, conditioned or delayed, the
City shall provide payment to the Contractor within 30 days. Any dispute shall be
governed by Section 7.19 of the Agreement.
Except as specifically amended herein, all other terms and conditions of the Agreement
shall remain in full force and effect. Capitalized terms used herein but not defined shall
have the meanings set forth in the Agreement.
By signing below, you certify that you have been duly authorized to enter into this
Amendment by the party on whose behalf you are signing.
CITY: CONTRACTOR:
CITY OF SPOKANE VALLEY WASTE MANAGEMENT OF
WASHINGTON, INC
John Hohman B Jason S. Rose
City Manager Its: Authorized Representative
Date: Date:
APPROVED AS TO FORM:
O of the i A orney
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