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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