HomeMy WebLinkAbout2020-04-24
April 24, 2020
Melinda Monroe
Contracts Administrator
City of Bremerton
100 Oyster Bay Ave.
Bremerton, WA 9831 2
Dear Melinda:
Re: 2020 B&O Rate Adjustment
Please find the enclosed 2020 rate schedule for solid waste and recycling services provided by
Waste Management to the residents and businesses of the City of Bremerton.
Effective April 1st, 2020, Washington State Legislature passed SB 6492 - 2019-20, increasing the
Business and Occupation (B&O) tax rate from 1.5% to 1.75% assessed on businesses operating in the
State of Washington. This results in an increased tax of 0.25%.
Section 9.6 Rate Adjustments for Extraordinary Issues, of Waste Management’s contract with the
City states:
Contractor's Rates set by this Agreement are calculated to pay certain expenses and costs that are of a contingent and
uncertain nature. Therefore, in addition to the CPI Adjustment, Contractor's Rates shall, upon written request of
Contractor and approval by the City, be further adjusted on an interim basis for increased expenses or reduced revenue
associated with performance of the services hereunder due to any one or more of the following causes:
( e) any increase in surcharges, fees, assessments or taxes levied by federal, state or local regulatory authorities or other
governmental entities in relation to the Services;
If Contractor requests an adjustment due to the extraordinary circumstances set forth above, Contractor shall prepare a
rate adjustment request setting forth its calculation of the increased costs or reduced revenue and accompanying rate
adjustment necessary to offset such increased costs or reduced revenue. The City may request any a nd all documentation
and data reasonably necessary to evaluate such request by Contractor, and 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 sha ll take
reasonable steps, consistent with state law, to protect the confidential or proprietary nature of any data or information
supplied by WM. The City shall act within thirty (30) days of receipt of the request from WM, but shall approve the request
if reasonably sufficient supporting information is provided. Notwithstanding the foregoing, if the request is based upon any
new or increased third party fees, taxes, assessments or charges, the City shall approve the interim rate adjustment within
such time period as necessary to ensure that such fees, taxes, assessments or charges are passed on to customers by the
date the same are effective.
In response to this provision, Waste Management is proposing to the City of Bremerton to
implement the recent B&O tax increase, effective June 1, 2020.
Waste Management looks forward to providing quality waste and recycling services to the City of
Bremerton in the year ahead.
Sincerely,
CORY CALDWELL
Contract Compliance Administrator
Public Sector, Pacific Northwest
corycaldwell@wm.com
720 4th Ave, Suite 400
Kirkland WA 98033
WASTE MANAGEMENT