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Deborah A. Perez <br />Government Affairs Manager <br />WASTE MANAGEMENT INC. OF FLORIDA <br />4310 771" St. <br />Vero Beach, FL 32960 <br />772-413-9997 <br />dperez@wm.com <br />June 02, 2022 <br />Mr. Jason Brown <br />County Administrator <br />Indian River County <br />1801271h St. <br />Vero Beach, FL 32960 Via Email <br />Re: 2022 Annual CPI Notice & Extraordinary Inflationary Cost Recovery Request <br />Dear Mr. Brown: <br />Waste Management appreciates the opportunity to provide solid waste collection services to the <br />residents of Indian River County. <br />In accordance with article 16.1.2.2 Amended; Waste Management Inc. of Florida, is submitting this <br />notice for the annual rate adjustment to reflect changes in the cost of doing business. <br />Throughout 2021, the U.S. economy has been experiencing the unexpected adverse impacts of <br />inflation caused in large part by an economy re-emerging from COVID-19 but hampered by labor <br />and supply chain constraints. Not since the years immediately following WWII or the late -1970s has <br />the U.S. experienced inflationary price increases at these levels. For WM, disruptions in the supply <br />chain for critical materials and equipment, labor shortages, and significant increases in fuel costs <br />have substantially increased WM's cost to provide services to your community. As just one <br />example, the price of the steel WM needs for solid waste and recycling vehicles and containers has <br />increased more than 150% over the past 12 months. Many economists are projecting continued <br />labor shortages and upward pressure on labor and critical material costs. <br />Utilizing the common industry Price Increase Index of CPI -U, 75% of the full adjustment amount of <br />9.40%, would make it 7.05%, but due to the NTE clause of 3.00%, our CPI request is for the 3.00% <br />effective October 01, 2022. Back up information is included for your review. <br />Due to the unforeseen and extraordinary market conditions mentioned above, which the parties <br />could not anticipate at the time the contract was executed, WM respectfully requests an additional <br />17.43% adjustment to the residential rates only, to allow WM's compensation to better keep pace <br />with WM's operating costs to provide critical services in your community. If approved, both <br />adjustments would be applied bringing the total price per home to $12.57 per home, effective <br />128 <br />