HomeMy WebLinkAbout17-187.12 WM Drop Box Contract - 2025 B&O Tax Surcharge RevisionFOURTH CONTRACT AMENDMENT TO THE COMPREHENSIVE DROP -BOX
CONTAINER COLLECTION CONTRACT BETWEEN THE CITY OF SPOKANE VALLEY
AND WASTE MANAGEMENT OF WASHINGTON INC. ("WM")
(the "Parties")
Spokane Valley Contract #17-187.12
RECITALS
WHEREAS, the Parties are parties to the Comprehensive Drop -box Container Collection
Contract for the collection of Drop -box Containers containing Garbage from Single family
Residences, Multifamily Complexes, and Commercial Customers and the additional collection of
Recyclables from subscribing Multifamily Complex Customers that utilize Drop -box Container
Garbage services, executed by the Parties on January 4, 2018, effective April 1, 2018, and which
terminates on March 31, 2030, as amended on July 23, 2020, November 13, 2024, and November
5, 2025 (the "Contract"); and
WHEREAS, the Washington State Legislature passed HB 2081, which amended RCW
82.04.290; and
WHEREAS, pursuant to HB 2081 Part II, Surcharges on High Grossing Businesses and
Financial Institutions, beginning January 1, 2026, an additional business and occupations tax
("B&O Tax") shall be imposed upon businesses in Washington with at least $250 million in
Washington taxable income per calendar year. The tax is 0.5 percent of the businesses' annual
Washington taxable income in excess of $250 million and is in addition to the standard B&O
taxes imposed on the income. This surcharge expires December 31, 2029; and
WHEREAS, pursuant to Section 4.3.3.1 of the Contract, Contractor may seek to adjust rates to
address material increases or decreases in annual Contractor costs that are due to changes in
City, County, State, or Federal taxes; and
WHEREAS, the Parties desire to amend the Contract to adjust rates to account for the additional
B&O Tax until the expiration, reduction, or termination of HB 2081 Part II; and
WHEREAS, the new rates will become effective as of January 1, 2026; and
AGREEMENT
NOW THEREFORE, for good and valuable consideration, the legal sufficiency of which is
hereby acknowledged, City and the Contractor mutually agree as follows:
1. Original Contract Provisions: The Parties agree to continue to abide by those terms and
conditions of the Contract and any amendments thereto which are not specifically modified
by this Amendment. All capitalized terms not defined herein shall have the meanings set
forth in the Contract.
Spokane Valley Contract #17-187.12 Page 1 of 3
2. Amendment Provisions: The Contract is subject to the following amended provisions. All
such amended provisions are hereby incorporated by reference herein and shall control over any
conflicting provisions of the Contract, including any previous amendments thereto.
(a) Attachment B — Contractor Rates. Attachment B — Contractor Rates is hereby
deleted in its entirety and replaced with the attached Exhibit A, which reflects the
B&O Tax surcharge increase pursuant to Section 4.3.3.1. Such rates shall be effective
as of January 1, 2026. The Parties agree to adjust the rates in accordance with the
provisions of Section 4.3.3.1 upon the reduction, expiration, or termination, if any, of
the B &O Tax surcharge.
(b) Counterparts; Signatures. This Amendment may be signed in counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same
agreement. Signatures transmitted electronically shall be deemed valid execution of
this Amendment and binding on the Parties.
IN WITNESS WHEREOF, the Parties have executed this Amendment to the Contract this 6th
Day of January 2026. Each person signing this Amendment represents and warrants that he or
she has been duly authorized to enter into this Amendment by the Party on whose behalf it is
indicated that the person is signing.
CITY OF SPOKANE VALLEY: CONTRACTOR:
By: �%/, By:
J Hohman Won S. Rose
City Manager Waste Management of Washington, Inc.
Its: President
ATTEST:
By:
Marci atterson, City Clerk
APPROVED AS TO FORM:
By:
O ;iceCity �Attomey
Spokane Valley Contract #17-187.12 Page 2 of 3
EXHIBIT A
Attachment B: Contractor Rates for WM with B&O Surcharge Tax
Effective as of January 1, 2026
(Does not include State Refuse Tax)
City of Spokane Valley
B&O Surcharge :. 0.32('.
L I �2026
Sen'iee L.eyel (based on pick ups)
Dail)
Rest
Montbl%
Rest
Deliver
CbarBet
Haul
Cbarge•
All Srctor
Drop -box
Non -compacted 10 cubic yard
S 3.46
S 51.64
S 67.35
S 106.71
Non -compacted 15 cubic _lard Drop -box
S 4.74
$ 67.74
S 67.35
S 106.71
Collection
Non-cornpactod 20 cubic and box
S 6.03
S 83.82
$ 67.35
S 106.71
Non -compacted 25 cubic yard x
S 6.43
1 S 8817
S 67.35
S 106.71
lion -coin act.-d 30 cubic and x
S 6.801
S 92.68
S 67.35
$ 106.71
Nuns otn acted 40 cubic eard Dr box
S 7.56
S I 1 _'.'9
$ 67.35
$ 106.71
Compacted 10 cubic yard DixS+-bux
outside contract
S 67.35
S 172.38
Cornpacted 20 cubic yard D box
outside contract
S 67.35
S 172.38
Compacted 25 cubic yard DmV-box
outside contract
C 67.35
S 172.38
Compacted 30 cubic yard box
outside contract
S 67.35
S 172.38
Compacted 40 cubic yard Drop -box
outside contract
S 67.35
S 172.38
Drop -box AnciWtn Fees
Per Unit
Multifamily Recycling Fee (per cubic yard of DB size)'
S 7.29
Return Trip ( perncnt)
S 32.63
Stand-by Time (pLr minute)
S 2.02
Container cleaning (per yard ofeoatainer size)
S 13.02
Drop -box excess mileaee (oyer 5 mi), per one-ua% mile
S 3.86
Temporary
Container
Scrsice Le%el
rhli%en
Fee
Daih
Rental
5lonthl%
Rental
llaul
Cbarge
Non -compacted lu;cke r.i Ur.ap i+.,�
S 67.35
S
S 51.64
S 137.27
Non -compacted 2tt;uhic yard Dru boa
S 67.35
S 6.03
S 83.82
S 137 27
Non -compacted 30 cubic yard Dr box
S 67.35
S 6.8o
S 92.68
S 137.27
Non-compactod 40 cubic yam! Drop -box,
S 67.35 1
S 7.56
S 112.79
S 137.27
tlourb_y Rate
Dr box Truck t deicer
S 98.08
Additional Labor ( per personI
S 39.11
Extra
Contaminated recycling material pick-up (pct loose cubic )yard of material collected)'
S 13.02
' Chm- ged only upon first deli%cry. Any emptyand
returns are charged Haul Charge.
Per haul.
Flat Rate. No disposal lie added to charge.
Spokane Valley Contract #17-187.12 Page 3 of 3
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