HomeMy WebLinkAboutPW16-030 - Amendment - #2 - Republic Services - Garbage, Recycling, Yard & Food Waste Collection & Disposal/Marketing - 01/16/2024 FOR CITY OF KENT OFFICIAL USE ONLY
Sup/Mgr:
Agreement Routing Form DirAsst:
• For Approvals,Signatures and Records Management Dir/Dep:
KE N T This form combines&replaces the Request for Mayor's Signature and Contract Cover (optional)
W A 5 H 1 N G T O N Sheet forms. (Print on pink or cherry colored paper)
Originator: Department:
Karin Bayes for Tony Donati Public Works
Date Sent: Date Required:
0 11/13/2023 11/20/2023
fl. Mayor or Designee to Sign. Date of Council Approval:
a
Q Interlocal Agreement Uploaded to Website 11/7/2023
Budclet Account Number: Grant? Yes❑ No❑
Budget?❑Yes❑No Type: N/A
Vendor Name: Category:
Republic Services of Kent Contract
Vendor Number: Sub-Category:
= Amendment
0
W Project Name: Contract Amendment with Republic Services of Kent
oProject Details: Amendment #2 - update the contract to reflect new rate
= structure
Basis for Selection of Contractor
E :
Agreement Direct Negotiation
� *Memo to Mayor must be attached
i Start Date: 1/1/2024 Termination Date: 12/31/2024
Q Local Business?❑Yes❑No*If meets requirements per KCC3.70.100,please complete'Vendor Purchase-Local Exceptions"form on Cityspace.
Business License Verification: ❑Yes El In-Process❑Exempt(KCC 5.01.045) ❑Authorized Signer Verified
Notice required prior to disclosure? Contract Number:
❑Yes❑No PW 16-030
Comments:
Please return signed amendment to Karin Bayes to forward to Vendor for
3 execution. Thanks.
�a a�
0
4) 1/19/24- iZ,,,4a u,,."
cc
Date Received:City Attorney: 11/14/23 Date Routed:Mayor's Office 11/17/23 City Clerk's Office 11/20/23
adccW22373_1_20 Visit Documents.KentWA.gov to obtain copies of all agreements
rev.20221201
AMENDMENT #2
TO GARBAGE, RECYCLING, YARD & FOOD WASTE
COLLECTION AND DISPOSAL/MARKETING CONTRACT
This Amendment #2 is between Rabanco, Ltd., dba Kent Meridian Disposal dba
Republic Services of Kent ("Contractor"), and the City of Kent, Washington ("City").
RECITALS
A. Contractor and City entered into a Garbage, Recycling, Yard & Food Waste
Collection and Disposal/Marketing Contract dated April 1, 2016 ("Agreement"). The
parties entered into Amendment #1 to the Agreement on September 1, 2019.
B. Pursuant to the Agreement all Garbage and residues from Recyclables and
Organics must be delivered to the King County Disposal System.
C. King County has made changes to their billing systems that impacts
disposal with the King County Disposal System.
D. City and Contractor now desire to make certain changes to the Agreement
to accommodate such changes, as more fully set forth below.
E. City and Contractor also desire to make other certain changes to the
Agreement to improve service to city customers and efficiencies to the Contractor.
AGREEMENT
Now therefore, for good and valuable consideration the receipt and sufficiency of
which the parties acknowledge, including but not limited to the mutual and dependent
promises contained herein, the parties agree as follows:
Section 1. Inclement Weather and Other Service Disruptions. Section 2.1.7 of the
Agreement, entitled "Inclement Weather and Other Service Disruptions" shall be
amended to add the following paragraph:
The Contractor may implement early collection starting no earlier than 6:00 a.m. for
any day when Accuweather forecasts temperatures to reach ninety degrees
Fahrenheit (901 F) or higher in the Kent downtown area. The Contractor must notify
the City and Customers at least one day in advance of its early collection plans.
Notification is required for each day early collection is implemented and shall include
automated Customer all-calls and website messaging. The Contractor shall provide a
no-cost return trip to any Customer who may be missed due to the early collection.
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Section 2. Equipment Age/Condition. Section 2.1.13 of the Agreement, entitled
"Equipment Age/Condition" shall be amended as follows:
All collection vehicles regularly used by the Contractor during the term of this Contract
shall have chassis that meet model year 2010 or newer emissions standards. Back-up
vehicles used fewer than thirty (30) days per year shall not be subject to the age and
mileage limits that apply to regularly-used vehicles, but shall be presentable, in safe
working order, and subject to all other conditions of this Section.
Collection vehicles shall meet the specifications as submitted in the Contractor' s 2009
RFP response, Exhibit C2 (Attachment H). The Contractor may request permission to use
alternative vehicles if the Contractor has continued unresolvable operating problems with
the use of the vehicles. The City shall consider the request, provide its own investigations,
and provide a response to the Contractor within thirty (30) days of receiving the
Contractor's request.
Contractor will maintain collection equipment with the ability to service limited access
areas. This is to ensure that all Customers receive equal service.
Vehicles used in the performance of this Contract shall be maintained in a clean and
sanitary manner, and shall be thoroughly washed as needed to maintain a clean and
presentable appearance, but in any event not less than once each week. Vehicles shall
be repainted as needed and/ or at the request of the City.
All collection equipment shall have appropriate safety markings, including all highway
lighting, flashing and warning lights, clearance lights, warning flags, and sound warning
signalization systems, all in accordance with current statutes, rules, and regulations.
Equipment shall be maintained in good working condition at all times. All parts and
systems of the collection vehicles shall operate properly and be maintained in a condition
satisfactory to the City. The Contractor shall maintain collection vehicles to ensure that
no discharges, i. e., no liquid wastes ( such as Garbage or Yard & Food Waste leachate)
or oils ( lubricating, hydraulic, or fuel) are discharged to Customer premises or City
streets. The Contractor shall immediately take off- line any Contractor vehicles with leaks
and repair them. Contractor shall report any hazardous waste or leachate spills within the
City of Kent from Contractor vehicles or collection operations immediately to the City of
Kent Spill Hotline, 253- 856- 5600.
Unremediated spills and failure to repair vehicle leaks shall be subject to liquidated
damages. Any equipment not meeting these standards shall not be operated on City
roads until repairs are made.
All collection vehicles shall be labeled with signs on both the front, rear, and driver' s side
door which clearly indicate the vehicle inventory number. A Customer complaint
telephone number shall be labeled on the side of the vehicle. Signs shall use lettering not
less than four (4) inches high and shall be clearly visible from a minimum distance of
twenty (20) feet. Signs, sign locations, and the complaint telephone number shall be
subject to approval by the City. No advertising shall be allowed on Contractor vehicles
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other than the Contractor's name, logo, and Customer service telephone number and
website address. Special promotional messages may be permitted, upon the City' s prior
written approval.
All collection vehicles used on this Contract shall meet existing street weight limits in the
City. The Contractor shall not exceed any collection vehicle weight limit at any time. The
Contractor's monthly report, Section 2.3.4.1, shall include the date, time, vehicle number,
total weight, and weight exceeding weight limits for any overweight vehicle. If any
collection vehicle is found to exceed the weight limit, the Contractor shall provide the City
a written plan for addressing the overweight vehicles within fourteen (14) calendar days
of the date of the monthly report identifying the overweight vehicle(s). Vehicles exceeding
the weight limit by one thousand (1,000) pounds or more may be subject to liquidated
damages as set forth in Section 4.1.
All Contractor route, service, and supervisory vehicles shall be equipped with properly
licensed two-way communication equipment. The Contractor shall maintain a base station
or have equipment capable of reaching all collection areas.
Section 3. Promotion and Education. Section 2.3.5 of the Agreement, entitled
"Promotion and Education" shall be amended as follows:
The Contractor shall have primary responsibility for developing, designing, disseminating,
and executing general waste reduction/recycling public education and outreach
programs. Any and all materials distributed shall be reviewed and approved by the City
prior to distribution. The Contractor shall have primary responsibility for providing service-
oriented information and outreach to Customers and implementing on-going recycling
promotion, at the direction of the City.
Working collaboratively with the City, the Contractor will develop and implement a public
education plan to include the strategy and development of materials to support the roll-
out of the new collection and recycling services program, with a special emphasis on new
recycling programs and sustainability initiatives. Over the course of the Contract on at
least a quarterly basis, the Contractor shall meet regularly with City staff to review and
discuss progress on the plan to determine effectiveness of the outreach strategy and
educational materials.
The Contractor shall maintain a complete list of all Multifamily Complex and Commercial
Customer sites within the City Service Area, and the status of each site' s participation in
Contractor- provided services. The Contractor shall annually contact, by telephone or site
visit, the manager or owner of each site to encourage participation and to inform the
manager or owner of all available services and ways to decrease Garbage generation.
Printed informational materials discussing waste prevention and recycling service options
shall be prepared and distributed to support contact with Multifamily Complex and
Commercial Customer sites. This contact shall be coordinated with City and King County
promotional efforts. The Contractor shall include with its annual report the list of
Multifamily Complex and Commercial Customer sites, recycling status, container sizes
3
and types, contact dates, outcome, and suggestions for increasing participation or other
program improvements.
The Contractor shall keep the public informed of programs and encourage participation
through an annual service update mailer. Each fall, the Contractor shall provide an annual
service update for each service sector, the format, content and timeframe of which shall
be subject to prior review and approval by the City. The annual service update shall be
mailed to all Customers and the City by November 10tn each year as a self-mailer,
independent of regular billing notices. The annual service update mailer and, at a
minimum, shall include an informational brochure indicating rates the collection calendar,
all services available, materials preparation and other service requirements, contact
information, inclement weather, and other policies and ether useful Customer information.
Additional messaging about rates shall be posted twice in the local newspaper
referencing new rates located on the RepublicServicesKent.com website by November
10tn
The Contractor shall develop, print, periodically update, and maintain sufficient quantities
of new Customer information materials, the format and content of which shall be subject
to prior review and written approval by the City, prior to distribution. Upon approval,
materials shall be mailed to every new Customer prior to the Customer' s first billing and
shall, at a minimum, include a statement of applicable rules and service policies, rates,
services, and preparation requirements, collection days, Contractor customer service
information, and City contact information. Materials shall be available in accessible and
alternative language formats upon request.
The Contractor shall permit the City to insert, at no charge, single- sheet information
bulletins into Customer bills. When the insert is beyond one (1) page and increases
Contractor cost, the City shall pay the incremental difference. The City shall work
cooperatively with the Contractor for timely inclusion of such materials.
Section 4. Compensation to the City. Section 3.2 of the Agreement, entitled
"Compensation to the City" shall be amended to add the following paragraph:
The City may adjust the administrative fee in any year beyond the adjustment listed in
Section 3.3, provided that the adjustment is synchronized with the annual rate
adjustment in Section 3.3.1. The City shall notify the Contractor of the new
administrative fee for the following year by September 1st, and the Contractor shall
itemize and include this adjustment in its Rate Adjustment Statement provided
October 1 st of each year. If the administrative fee is adjusted, the Contractor shall add
an amount equivalent to the State excise tax on the increase to the Administrative Fee
(1.75% in 2023), as ma,, b�justed from time to time by the State.
4
Section 5. Annual Rate Adjustment. Section 3.3.1 of the Agreement, entitled
"Annual Rate Adjustment" shall be amended as follows:
The Contractor's collection service charges, excluding waste disposal fees, for each
level of service shall increase or decrease every year by an inflation adjustment factor
based on three (3) indices, or successor indices (if approved by City), computed by
the United States Department of Labor, Bureau of Labor Statistics and the United
State Energy Information Administration (EIA). The three (3) indices and their weights
are:
1. The annual consumer price index for Urban Wage Earners and Clerical Workers,
(CPI-W) Seattle-Tacoma-Bremerton Statistical Area, Series ID No.
CWURA423SAO which will have a weight of forty-two (42) percent.
2. The Energy Information Agency (EIA) annual average Natural Gas Transportation
Sector Vehicle Fuel Price (NGVFP), not adjusted for inflation, which will have a
weight of eight (8) percent.
3. The Employment Compensation Cost Index for Private Industry (ECCI), in current
dollars, not seasonally adjusted, December 2005=100, for unionized service
providing industries, CIU201S0000005101 (B,H), which will have a weight of fifty
(50) percent.
The base reference values for these three (3) indices will be: the published value for
December 2013 for the ECCI, and the 2013 12-month averages for the CPI-W and
NGVFP. All annual rate adjustments during the Contract period will be calculated
based on the weighted average change of the three index values for the most recent
year's December/Annual Average relative to the corresponding base reference
values.
All subsequent years' adjustments will be GaIGUIated relative to the index base
reference values#arDecember/Anniial Average 20I,
Effective January 2024, the collection service charges shall be adjusted annually on
January 1. For rates starting January 2024, the adjustment to the collection service
charges shall be based upon a twelve (12) month period ending June 30th of the
previous year. All subsequent years' adjustments shall be calculated based upon a
twelve (12) month reference period ending June 30th of the previous year that the
request for increase is made.
The non-disposal component of all rates in Attachment B shall be multiplied by this
calculated adjustment factor. Specific examples of annual rate adjustments are
provided in Attachment C.
Adjustments to the Contractor's collection service charge shall be made in units of
one cent ($0.01), with all adjusted rates rounded to the nearest cent. Fractions less
than one cent ($0.01) shall not be considered when making adjustments.
Rates shall be adjusted ted annu ia11., beginning p� 2046—The Contractor shall submit
to the City for review and approval a Rate Adjustment Statement by February 1 n+h
October 1st of each year, calculating the new rates for the next Contract year. Unless
the City disapproves of the rate adjustment within fourteen ( 14) days eff the Gi4y-�&
5
T -[t f �r��.^+�, to adMonday adjustment by October 15th, or the next
October-15t" falls on a Saturday or Sunday, the new rates shall take effect on Apf 4
January 1 of the following eat year.
Customers shall be notified by mail of the annual rate adjustment effective Apf#
January 1, by MaFGh 1, thirty (30) a minimum of forty-five (45) calendar days prior to
the new rate, as specified in Section 2.3.5. If the Contractor fails to mail notification to
ratepayers Ret PeGeive „et;fiGat;^„ by MaFG#1 November 10, due to missed deadlines
or; rate calculation errors by the Contractor,�e—d+sappreval by the City,
implementation of the new rates may be delayed by one (1) month intervals until
resolved without opportunity for recovery of lost revenue. Contractor will post details
of the new rate on its web site no later than ApM January 1 of each year.
Section 6. Periodic Adjustments. Section 3.3.2 of the Agreement, entitled "Periodic
Adjustments" is deleted and replaced in its entirety with the following:
Periodic adjustments shall be made to Contractor collection rates to reflect increases or
decreases in King County disposal fees for Garbage with the intent to maintain the
disposal component as a pass through.
Specific examples of periodic adjustments due to Consumer Price Index and disposal
composite rate changes are provided in Attachment C.
Section 7. Changes in Disposal or Yard & Food Waste Processing Sites. Section
3.3.3 of the Agreement, entitled "Changes in Disposal or Yard & Food Waste
Processing Sites" shall be amended as follows:
The Contractor assumes all risk for the processing and marketing of Recyclables and
Yard & Food Waste. However, if the Contractor is required by the City to use
processing sites or markets other than those being used at the initiation of this
Contract, the Contractor may submit a detailed proposal for a rate adjustment to reflect
any additional costs or savings to the Contractor. The City and Contractor agree to
negotiate in good faith any rate changes to offset these costs or savings. The
Contractor may seek rate increases to offset Yard & Food Waste tipping fees that
exceed the Contractor's disposal costs at the implementation of the Contract or as
adjusted by the escalation in Section 3.3. Such request must be received and
approved by the City ninety(90) days prior to potential increases in rates. Any increase
will only occur coincident with other rate adjustments on January 1. The City will not
unreasonably withhold the escalation of rates to cover the increase costs in Yard &
Food Waste tipping fees.
Section 8. Sustainability Adjustment. Section 3.3.4 of the Agreement, entitled
"Sustainability Adjustment" shall be amended as follows:
6
To fund the increased costs of the recycling program due to changes in markets for
recyclable commodities, including increased costs associated with the processing and
marketing of Recyclables RdGGFnpestable ma+ori-,', as well as additional education
and contamination enforcement costs, a sustainability adjustment ("Adjustment") shall
be added to each Customer with regular recurring
reGurriRg (i.e. FFIenthly or weekly) Garbage service and Recyclables service. The
Adjustment for Single-family Residential Customers shall be a flat-rate per month,
regardless of the number of additional cans/carts or extra units. The Adjustment for
Multifamily Complex Customers and cart-based Commercial Customers shall be
based upon the monthly cubic yards of regular, recurring Garbage service and shall
not apply to extra units or Temporary Services. The Adjustment shall take effect on
September 1, 2019, and terminate on March 31, 2029. The Adjustment shall initially
be $0.96 per month for single-family residential customers and $2.98 per cubic yard
of monthly garbage service for Multifamily Complex Customers and cart-based
Commercial Customers. The Adjustment shall be subject to the senior low-income
and disabled resident discount for qualifying single-family residential customers.
The Adjustment shall be re-evaluated, and potentially modified, on an annual basis.
By October 1, 2023FebFuaFy 14, 2020, and every year thereafter until the Contract
expires or is terminated, the Contractor shall submit an Annual Sustainability
Adjustment Report ("Rre porQ with the following information from the previous twelve
(12) month period ending June 30th:
1. number of current Single-family residential, multifamily, and cart-based
Commercial Customers;
2. tonnage of recycling produced by Single-family residential, aPA—multifamily and
cart-based Commercial Customers;
3. monthly garbage service levels for multifamily and cart-based Commercial
Customers (expressed in cubic yards);
4. Commodity Revenue (expressed in dollars per ton);
5. Commodity Sampling for Single-family residential and multifamily recycling
(expressed as a percentage of all commodities collected);
6. comparison of Commodity Revenue and Commodity Sampling to those of the
basepfevious. period; and
7. recalculation of the Total Adjustment-.Land
8. A summary of the monthly contamination monitoring reports for the previous year
as required in the approved contamination reduction plan.
The Total Adjustments shall be based on changes in commodity value and
processing costs. Changes in DrOGeSSinn Costs may be nnnciidere d wheR
reeyali atinn the / dj stmeRt
The change in commodity value shall be calculated as follows:
1. Multiply the base Commodity Revenue (June, 2017, applied for the 2019 base) by
the Single-family residential, Multifamily Complex and Commercial Customer
7
sampling rates from 2017 (applied for the 2019 base) for each commodity and by
the tonnages of recycling from City customers in the adjustment evaluation period.
2. Add the revenue of the separate commodities together. This is the "Base
Commodity Value."
3. Multiply the commodity rates for the current evaluation period by the sampling
rates for the current evaluation period and by the tonnages of recycling from City
customers in the adjustment evaluation period. This is the "Adjustment Commodity
Value."
4. Find the difference between the Base Commodity Value and the Adjustment
Commodity Value. This is the "Total Commodity Adjustment Value."
The change in processing costs shall be calculated as follows:
1. Calculate the "Total Base Processing Cost" by multiplying $70.62 (the 2017
Processing Costs per ton as applied for the 2019 base) by the tonnage of recycling
for the Adjustment evaluation period.
2. For the January 1, 2024 adjustment, calculate the Processing Cost per ton for
Single-family Residential recycling by multiplying $114.46 (the Processing Cost
per ton for Single-family Residential recycling in 2023) by the inflation adjustment
factor as calculated in Section 3.3.1 for the Adjustment evaluation period. To
calculate the Processing Cost per ton for each subsequent January 1 adjustment,
the prior year's calculated Processing Cost per ton shall be multiplied by the
inflation adjustment factor as calculated in Section 3.3.1 for the Adjustment
evaluation period.
3. For the January 1, 2024 adjustment, calculate the Processing Cost per ton for
Multifamily Complex and cart-based Commercial Customer recycling by
multiplying $116.77 (the Processing Cost per ton for Multifamily Complex and Cart-
based Commercial Customer recycling in 2023) by the inflation adjustment factor
as calculated in Section 3.3.1 for the Adjustment evaluation period. To calculate
the Processing Cost per ton for each subsequent January 1 adjustment, the prior
_year's calculated processing cost per ton shall be multiplied by the inflation
adjustment factor as calculated in Section 3.3.1 for the Adjustment evaluation
period.
4. For the Adjustment evaluation period, multiply the Processing Cost per ton for
Single-family Residential recycling by the Single-family Residential recycling
tonnage and the Processing Cost per ton for Multifamily and Cart-based
Commercial recycling by the Multifamily Residential and Cart-based Commercial
Customer recycle tonnage and add them together for the "Total Adjustment
Evaluation Period Processing Cost."
5. Find the difference between the Total Base Processing Cost and the Total
Adjustment Evaluation Period Processing Cost. This is the "Total Processing Cost
Adjustment."
The Total Commodity Adjustment Value and the Total Processing Cost Adjustment
shall be shown separately and then added together to determine the "Total
Adjustment."
8
The City shall either approve the recalculated Total Adjustment or modify it if the City
reasonably believes that the proposed Total Adjustment exceeds the amount
necessary to cover losses from Commodity Revenue. The City will base the final
approved Adjustment on the approved Total Adjustment with the goal of providing
additional revenue to match the Total Adjustment on a monthly basis and provide it to
the Contractor with its decision by October 15.
Implementing the recalculatedm,,, �'�a Adjustment will require City Council approval
if the annual change in the recalculated Adjustment is an increase greater than or
equal to 5% of the original Adjustment taking effect on September 1, 2019. The City
shall not be required to increase the Adjustment if it exceeds the amount in effect on
September 1, 2019. If the approved Total Adjustment shows an increase in
revenue
Customers subject to the Adjustment will receive a rebate instead of paying the
Adjustment.
The following table outlines the evaluation periods and deadlines applying to any
modifications to the Adjustment.
Report City Notify Modified
Adjustment Adjustment
to City Decision Customers
Evaluation Period By By By Effective
Date
July 1, 2022 — June 30, 2023
juiv 1 2019 Ion,i�ry z1
2420
July 1, 2023�— June 3,.0, 2024
Februaryn�A r—G� y
31, 202 F
July 1, 2024��— June 30, 2025
February , 2021 january
31,`0` 2- October October
November
July 1, 2025 — June 30, 2026 1 15* January
Febri�,aFy 1 2n�� ry .C�o r 10 1 jf4*
2
July 1, 2026� June 3,,..0, 2027
Fehr,�ar�i 1 3 jaHwaFy
1, 2-024
January 1, 2028 — March 31,
2028Februar��224
February 1, 205 janw r
31, 2 26
9
0
1, 2027-
T hruary 10 211'17 jaRwaFy
31, 2029
February 1, 2028 jani�y
31 ' 029
* If the annual change in the recalculated Adjustment is an increase greater than or
equal to 5% of the original Adjustment, the City may take longer to decide on, notify
Customers about, and implement the Adjustment, as approving it will require City
Council approval.
If the Contractor fails to mail notification to ratepayers by November 10, due to missed
deadlines for implementation of the contamination reduction program or for the
Adjustment evaluation, or due to rate calculation errors by the Contractor,
implementation of the new rates may be delayed by one (1) month intervals without
opportunity for recovery of lost revenue, until all provisions of the contract have been
met.
The following definitions shall apply to this subsection 3.3.4:
• "Commodity Revenue" means the average revenue, per ton of inbound material,
from the sale of commodities produced at the materials recovery facility ("MRF").
• "Commodity Sampling" means a proportionate breakdown of each marketed
commodity per ton of processed Recyclables.
• "Processing Costs" means the average cost, per ton of inbound material, of
operating the MRF that receives the City's Recyclables, including but not limited
to the cost of residue disposal.
• "Residue" means the material separated during the processing of Recyclables that
has no market value.
10
Section 9. Liquidated Damages. The table within Section 4.1 of the Agreement,
entitled "Liquidated Damages" shall be amended as follows:
Action or Omission Amount
Collection before or after the hours/days Three hundred dollars ($300) per
as specified in Section 2.1.3, or truck route (each truck on each
collection other than regular scheduled route is a separate incident).
collection day, except as expressly
permitted.
Action or Omission Amount
Repetition of complaints on a route after One Hundred dollars ($100) per
notification, including, but not limited to, incident, not to exceed thirty (30)
failure to replace containers in complaints per truck per day.
designated locations, spilling, not closing
gates, replacing lids, crossing planted
areas, or similar violations.
Failure to collect spilled materials. Twice the cost of cleanup to the
City or King County, plus Five
Hundred dollars ($500) per
incident.
Leakage from Contractor vehicles or Five Hundred dollars ($500) per
vehicle contents. vehicle, per inspection, plus clean-
up costs.
Collection vehicle exceeding existing One thousand dollars ($1,000) per
street weight limits by one thousand incident.
(1,000) pounds or more.
Failure to collect missed materials within Two hundred and fifty dollars ($
one (1) business day after notification. $250) per incident to a maximum
of five hundred dollars ($500) per
truck per day on Single-family
Residence routes and no maximum
for Multifamily Complex and
Commercial Customer routes.
Three (3) missed collections of the same Two hundred and fifty dollars
service address within a six (6) month ($250) each occurrence. The
period. Customer shall be credited for
each missed collection during the
six (6) month period.
11
Collection as Garbage of Source- Two hundred dollars ($250) per
separated Recyclables or Yard & Food incident, up to a maximum of one
Waste in clearly identified containers, thousand and five hundred dollars
bags or boxes. ($1,500) per truck, per day.
Collection of Garbage containing visible Fifty dollars ($50) per incident.
quantities of Yard & Food Waste.
Action or Omission Amount
Rejection of Garbage, Recyclables, or Fifty dollars ($50) per incident.
Yard & Food Waste without providing
documentation to the Customer of the
reason for rejection.
Failure to deliver Detachable Containers One Hundred dollars ($100) per
to new Commercial Garbage Customers container per day.
within three (3) days.
Failure to deliver, pick up, or replace One Hundred dollars ($100) per
carts, Detachable Containers, or Drop- container per day.
box Containers within three (3) days of
request to Multifamily Complex or
Commercial Customers requesting
service.
Failure to deliver, pick up, or replace One Hundred dollars ($100) per
Garbage, Recycling or Yard & Food container per day.
Waste Carts within seven (7) days of
request to Single-family Residence
Customers requesting service.
Failure to collect, increase, or decrease One hundred dollars ($100) per
the regular collection frequency of container per day.
designated City street cans, and City
facilities cans, carts, containers, drop
boxes within (1) one business day after
notification.
Material misrepresentation by Five thousand dollars ($5,000)
Contractors in records or reporting. per incident.
Failure to make required reports on Two hundred and fifty dollars
time. ($250) per incident.
Failure to comply with reporting Two hundred and fifty dollars
requirements in Section 2.3.4 ($250) per incident.
12
Failure to replace reported leaking Five hundred dollars ($500) per
containers within 24 hours of notice. container/incident, up to maximum
of two thousand dollars ($2,000)
per inspection.
Landfilling or incineration of One thousand dollars ($1,000) per
uncontaminated loads of Recyclables or vehicle, per incident.
Yard & Food Waste without the express
written permission of the City.
Action or Omission Amount
Disposal of Recyclables or Yard & Food One thousand dollars ($1,000) per
Waste residuals in an amount greater month.
than five (5) percent.
Failure to meet customer service ring, Two hundred fifty dollars ($250)
on-hold time performance requirements. per incident.
Garbage, Recycling, or Yard & Food Two hundred dollars ($250) per
Waste complaints made to the City that unresolved complaint.
were unresolved by Contractor within
one (1) business day after notification.
Failure to include instructional and One Hundred dollars ($100) per
promotional materials when Garbage, incident.
Recycling, and/or Yard & Food Waste
Carts are delivered.
Section 10. Attachment B. Attachment B of the Agreement, entitled "Contractor
Rates" shall be updated on an annual basis in accordance with Section 3.3.
Section 11. Attachment C. Attachment C of the Agreement, entitled "Rate Modification
Examples" shall be deleted and replaced in its entirety with the attached Attachment C.
Section 12. Capitalized Terms. The parties agree that capitalized terms not otherwise
defined in this Amendment shall have the meaning set forth in the Agreement.
Section 13. Ratification. All acts consistent with the authority of this Amendment #2
and prior to its full execution by the parties are ratified and affirmed, and the terms of
the Agreement and this Amendment #2 will be deemed to have been applied as of the
effective date of this Amendment.
Section 14. Effective Date. This Amendment #2 is effective as of the last date signed
below.
13
Section 15. Continuing Effect. Except as specifically amended by this Amendment,
all other terms and conditions of the Agreement shall remain in full force and effect. In
the event of a conflict in meaning between the Agreement and this Amendment, this
Amendment shall prevail.
Section 16. Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original and all of which combined shall
constitute one and the same instrument. Facsimile and/or electronic copies of the parties'
signatures shall be valid and treated the same as original signatures.
IN WITNESS WHEREOF, the parties have entered into this Amendment to be effective
as of the Amendment Effective Date.
Rabanco, Ltd. dba
Kent Meridian Disposal dba
Republic Services of Kent City of Kent, Washington
By: �� By _
Name: Ryan Lawler Name: Dana Ral ti
Title: Vice President Title: Mayor
Date: 01/16/2024 Date: 1 1/17 m?..3
14
City of Kent Collections Contract
Attachment C
(Amended 2023 for King County Disposal Rate Restructure)
Annual Rate Adjustment Examples
The collection and disposal components of the Customer charges listed in Attachment B shall
be adjusted separately, as appropriate. The collection component of Customer charges shall be
adjusted annually, pursuant to this Section and as described below. The disposal component of
the Customer charges listed in Attachment B shall be adjusted only if the City receives
notification from the County of a pending disposal fee adjustment and shall not become effective
until the new disposal charges become effective and are actually charged to the Contractor.
Formulas for both collection and disposal rate adjustments are provided as follows:
Collection Component Adjustment
This adjustment will be used for all non-disposal rates, charges, and payments.
Example: Adjustment Factor for January 2025 — December 2025 (2025) Rates
Inflation July 2023 June 2024 % Weighted
Adjustment Index Index Difference Weight Average
Component Value Value From Base Change
CPI-W 205.0 217.0 .0585 42% .02457
Fuel [2] 225.0 270.0 .2000 8% .01600
Labor [3] 110.0 120.0 .0909 50% .04545
Weighted Index (total of weighted average of three components + 1.0) [41 1.0860
Example:
2024 32-Gallon Cart Collection (collection component) Fee: $17.09
2025 Adjustment Weighted Index (calculated as above): 1 .0860
= 2025 32-Gallon Cart Collection (collection component) Fee: $18.56
Notes
[1] Annual consumer price index for Urban Wage Earners and Clerical Workers,
Seattle-Tacoma-Bremerton Statistical Area, Series ID No. CWURA423SAO, (weight of
42%)
[2] US Energy Information Agency Natural Gas Prices, Transportation Sector, Vehicle Fuel
Price (annual nominal), (weight of 8%)
[3] June Employment Total Compensation Cost Index for Private Industry, Unionized
Service-Providing Industries, Series ID No. CIU201S0000005101 (B, H), (weight of 50%)
[4] In this example, there is no adjustment for correction to the estimated 2010 index, as
described in Section 3.3.1. If there were, it would be added to/subtracted from 1.0860.
Rate Modification Examples Page 1 of 4
Disposal Component Adjustment
In the case of a disposal fee and/or Fixed Annual Charge (FAC) modification at County disposal
facilities, the disposal component of each service level listed in Attachment B shall be adjusted
as follows:
The disposal composite rate per ton shall be derived annually by adding the King County
tipping fee rate per ton plus the FAC increment per ton.
The City's Base FAC increment per ton shall be derived by dividing the City's total FAC for the
year by the City's Garbage tonnage from the previous full calendar year as listed in the King
County FAC Allocation Table.
After the initial year, the Base FAC increment per ton shall be adjusted each year based on the
rate of change of FAC per ton tonnage over two previous twelve month periods, and the
adjustment up or down shall be multiplied by 1 .5 and added to the Base FAC increment per
ton for the next year's Adjusted FAC increment per ton calculations. This Adjusted FAC
Increment per ton shall be based on the difference between the FAC increment per ton for the
current year's FAC/tonnage from the prior twelve month period ending June 30t" and the prior
year's Base FAC increment per ton.
Upon mutual agreement in September, 2025, the City and Contractor shall review and revise
the method for calculating the Adjusted FAC Rate per Ton to ensure all FAC and disposal
revenues have been collected to pay the FAC charged by the County. If the adjustment
method is revised and agreed to by both the City and Contractor, the revised method shall
apply to adjustments applied for rates in 2026 and future years.
For an example, assume tonnages of 82,000 tons in 2022, 80,000 tons in 2023 and 81,000
tons in 2024, equally distributed each month.
If the City's 2024 FAC was $2,700,000 and the 2022 calendar year tonnage was 82,000 tons,
the initial FAC increment per ton for rates effective January 1, 2025 would be $32.93
($2,700,000 / 82,000).
If the City's 2025 FAC was $2,800,000 and the 2023 calendar year tonnage was 80,000 tons
the initial FAC increment per ton for 2025 would be $35.00 ($2,800,000 / 80,000) and would
then be adjusted.
The adjustment would be calculated based on the FAC of $2,700,000/80,500 tons (tonnage
from July 1, 2023 — June 30, 2024), or $33.54, minus $32.93 (Base FAC increment per ton
from 2024) with the result multiplied by 1.5. The adjustment of $0.92 would be added to the
calculations for January 1, 2025 rates for a FAC increment per ton of $35.92.
If the tipping fee for 2024 was $170.00 per ton, then the disposal composite rate in 2024 shall
be $202.93.
($2,700,000 / 82,000) + $170.00 = $202.93 per ton
If the tipping fee for 2025 was $175.00 per ton, then the disposal composite rate in 2025 shall
be $210.92.
Rate Modification Examples Page 2 of 4
($2,800,000/80,000) + 1 .5*(($2,700,000/80,500) — ($2,700,000/82,000)) + $175.00 = $210.92
per ton
If the old disposal collection component of a 32-gallon Cart is $10.00, the old disposal
composite rate is $202.93 per ton, the new disposal composite rate is $210.92, and the current
excise tax rate is 1.75%, then the new disposal component of the rate shall increase to $10.40
on January 1.
Step 1: BFACR = NFAC/CT
Step 2: AFACR = BFACR + 1.5 x (CFAC/NT— PBFACR)
Step 3: ADCT = AFACR + NTR
Step 4: NDC = ADCT/ODCT x ODC
Step 5: FNDC=NDC+[(ADCT-ODCT)x CETR]
Where:
NT = New Tonnages from most recent 12 month period ending June 30t"
CT = Current Tonnages from the most recent available calendar year
OT = Old tonnages from prior 12 month period ending June 30t"
CFAC = Current Year Total Fixed Annual Charge
NFAC= Next Year Fixed Annual Charge
BFACR = Base Fixed Annual Charge Rate Per Ton
PBFACR= Previous Base Fixed Annual Charge Rate Per Ton
AFACR = Adjusted Fixed Annual Charge Rate per Ton
ADCT = Adjusted Disposal Component per Ton
NTR = New Tipping Rate
NDC = New Disposal Charge, pre adjusted excise tax
ODCT = Old Disposal Charge per Ton
ODC = Old Disposal Charge
FNDC = Final New Disposal Charge
CETR = Current excise tax rate (the current State excise tax rate of 1 .75%
used for this example'
Example for 2025
Step 1: $2,800,000/80,000 = $35.00/Ton
Step 2: $35.00 + 1.5 x [($2,700,000/80,500) — (2,700,000/82,000)] _ $35.92/Ton
Step 3: $35.92 + $175.00 = $210.92/Ton
Rate Modification Examples Page 3 of 4
Step 4: ($210.92/$202.93) x $10.00 = $10.39
Step 5: $10.39 + [($10.39 - $10.00) x .0175] = $10.40
So, the new customer rate for a 32-gallon Cart is $28.95 where the new collection component
is $18.56 and the new disposal component is $10.40.
Rate Modification Examples Page 4 of 4