17-187.08WasteManagementDropBoxContainerCollection Spokane
Valle 10210 E Sprague Avenue • Spokane Valley WA 99206
Phone: (509)720-5000 •Fax: (509)720-5075 •www.spokanevalleywa.gov
40
a Email: cityhall@spokanevalleywa.gov
November 13, 2024
Contract No. 17-187.08
Mary Evans Area Director, Public Sector Solutions
Waste Management of Washington, Inc.
720 4th Ave., Suite 400
Kirkland, WA 98033
Re: Second Amendment to Contract no. 17.187-Extension of Rates for Comprehensive
Drop-box Container Collection Contract with Waste Management(this
"Amendment"); reference 17-187
Dear Mary:
As you are aware, pursuant to Section 4.3.1 of the Comprehensive Drop-box Container
Collection Contract by and between the City and Contractor made and entered into on
January 4, 2018, as amended ("Agreement"), rates are automatically adjusted annually on
December 1. As the City and Sunshine Disposal & Recycling ("Sunshine") work
towards a new agreement for Solid Waste Transfer, Transport, and Disposal Services, the
City has notified its solid waste system contractors of its desire to move annual rate
adjustments from December 1 to January 1 to align all adjustments across contracts in the
City's comprehensive solid waste system. The rates per the current Agreement are set to
be adjusted for CPI on 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 disposal rates
effective on January 1 of each year beginning on January 1, 2025:
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 preeeding-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.
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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. The Contractor
shall deliver 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 October 15th-1-st of each year, starting September 1, 2018.
The City shall review and provide comment as to any errors with the calculations,
by September-October 24-5th of each year. In the event that the Contractor does not
submit a Rate Adjustment Statement by fiber October 15th4-st, the City shall
calculate and unilaterally implement a rate adjustment based on the best available
information as of September October 15th4st 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, the new rates shall take
effect on December January Pt 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.
As the City and the Contractor transition to Annual CPI Modifications to take effect on
January 1st of each year, by signing below, the City and the Contractor mutually agree
that the Contractor shall forego its automatic increase in CPI for the period of December
1 — 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.
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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 Jason S. Rose, President
City Manager Its: Authorized Representative
Date: Date:
APPROVED AS TO FORM:
ice of the ity Attorney
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