TIS 2021-07-12 Item 2D - Letter of Understanding - Renewal of Recyclable Market Surcharge

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June 11,2021 Mr. Hari Ponnekanti Public Works Director City of Tukwila 6300 Southcenter Blvd Tukwila, WA 98188 Sent via email only to: Hari.Ponnekanti@tukwilawa.gov RE: Recyclable Market Surcharge expiring October 31, 2021 Dear Mr. Ponnekanti, WASTE MANAGEMENT 720 4th Ave, Suite 400 Kirkland, WA 98033 The purpose of this letter is to request another 2 -year term for the Recyclable Market Surcharge set to expire 10/31/21. We understand the request must be made no later than 90 days prior to the expiration date and be accompanied by documentation justifying the request. Since November 1, 2019 when the increase became effective, we have continued to see fluctuating commodity markets and increased processing costs. Over the past 18 months (October 2019 through April 2021) our processing costs have increased to $136.46 per ton and commodity values have gone up and down with an average $26.60 per ton. Based on the commercial and multifamily tons WM collects, processes, markets for City of Tukwila customers our costs have increased 6.9% over this time frame. Attached is documentation showing the data for the basis of our request and justification. Therefore, we are asking that the current 5% recycle surcharge remain in place for another two-year period (11/1/2021 through 10/31/2023). Even though realistically, this does not cover our costs and is applied to the collection portion only and not the total rate for commercial and multifamily. WM appreciates your consideration of our request and looks forward to your response. As always, I am available to answer any questions you may have. Sincerely, Laura Moser Public Sector Manager (206) 391-9112 Lmoser@wm.com Attachments: 1). Financial Analysis for extension of 5 percent surcharge_061121_City Copy 2). Current Municipal Contract Rates_City Copy 16