HomeMy WebLinkAboutRecycling Processing Fee Contract Amendment - Republic ServicesRECYCLING PROCESSING FEE CONTRACT AMENDMENT
THIS Amendment to Paragraph 21 of the Franchise Agreement to Perform Solid Waste
Co lection and Disposal Services ("AMENDMENT"), is made and entered into this 2_6"' day
of , 2018, by and between CITY OF MERIDIAN, a municipal corporation of the
State of Idaho, hereafter called "CITY", and REPUBLIC SERVICES of Idaho, an Idaho
Corporation, hereinafter called "REPUBLIC SERVICES", whose current address is: 11101 W.
Executive Dr. Boise, ID 83713.
1. RECITALS:
1.1 WHEREAS, REPUBLIC SERVICES performs all services pertaining to solid
waste collection and disposal of the CITY'S solid waste pursuant to the Franchise
Agreement; and
1.2 WHEREAS, REPUBLIC SERVICES is separately contracted to deliver the
CITY's collected curbside recyclables to a third -party vendor, Western Recycling;
and
1.3 WHEREAS, REPUBLIC SERVICES has heretofore paid for the monthly net
cost of recycling processing charges related to Meridian's recycling program
pursuant to contractual agreement with both the CITY and with Western
Recycling; and
1.4 WHEREAS, the CITY has been advised that as of August 22, 2018, REPUBLIC
SERVICES has sustained the net recycling processing cost of $324,249.69 for the
period of July 2017 through June 2018 for Meridian's recycling program; and
1.5 WHEREAS, REPUBLIC SERVICES has advised the CITY that on October 1,
2018 third party vendor recycling processing costs will increase by approximately
$73,300 for FY19; and
1.6 WHEREAS, the parties agree that due to sustained depressed market conditions
resulting from China's severe contamination restrictions on recyclables and
banned recyclable materials, commodity prices are not predicted to offset rising
recycling processing costs for the foreseeable future; and
1.7 WHEREAS, REPUBLIC SERVICES has advised the CITY that effective
September 30, 2018 it will no longer be economically viable to deliver the City's
recyclable materials to the third -party processor, Western Recycling, for purposes
of recycling due to the increased monthly net cost of recycling processing
charges, which result in a net loss to REPUBLIC SERVICES; and
1.8 WHEREAS, the CITY desires to continue the Meridian Recycling Program
because of its beneficial diversion of materials from the landfill; and
1.9 WHEREAS, the CITY does not believe the cost of recycling has reached a
prohibitive level where the costs outweigh the benefits, but that it is cognizant that
may not always be the case.
NOW THEREFORE, in consideration of the covenants and conditions set forth herein,
the parties agree as follows:
Recycling Processing Fee Contract Amendment 1
Recycling Processing Fee Contract Amendment 2
2. INCORPORATION OF RECITALS: That the above recitals are contractual
and binding and are incorporated herein as if set forth in full.
3. DEFINITIONS:
a. Fiscal Year (“FY”) – This term is defined for purposes of this AMENDMENT
as the period beginning October 1, 2018 and ending September 30, 2019.
b. Commingled Recyclable Material – This term is defined for purposes of this
AMENDMENT to include: tin, aluminum, plastics #1 and #2, newspaper,
cardboard, mixed paper, and Hefty Energy Bags recoverable materials.
c. Net Cost of Recycling Processing Charges - This term is defined for purposes
of this AMENDMENT as the third-party vendor charge to process (sort, bale, and
ship, sell at market) Meridian’s commingled recyclables minus the rebate
provided by Western Recycling from its materials commodity sales.
4. AMENDMENT to PARAGRAPH 21 of the FRANCHISE AGREEMENT:
21.5 RECYCLING PROCESSING FEE: Subject to the provisions set forth
in Paragraph 6 of this AMENDMENT, for the period beginning October
1, 2018 and ending September 30, 2019 (“FY19”):
21.5.1 REPUBLIC SERVICES will receive the following:
o Residential Accounts: $0.83 per residential household per month
o Commercial Accounts: $0.75 per yard
21.5.2 CPI-INDEX - The recycling processing fee is not subject to the
annual CPI rate calculation.
21.5.3 FRANCHISE FEE - The City will receive the 6% franchise fee on
all commercial and residential rate components, including the
recycling processing fee.
21.5.4 REPUBLIC SERVICES agrees to pay for the effective period of
this AMENDMENT the net cost of recycling processing charges in
excess of the amount received as set forth in 21.5.1 above.
21.5.5 REPUBLIC SERVICES agrees to provide the CITY a year end
reconciliation report of its third party vendor recycling processing
charges, including an audit of the estimated increase of $73,300 for
the period October 1, 2018 through September 30, 2019. This
reconciliation shall be provided to City Council within 120 days of
September 30, 2019.
Meridian City Council Meeting Agenda September 25, 2018 – Page 198 of 275
21.5.6 REPUBLIC SERVICES will reimburse the CITY of any over
charge by Western Recycling for the effective period of this
AMENDMENT within 120 days of September 30, 2019.
21.5.7 REPUBLIC SERVICES commits to deliver Meridian's residential
and commercial recycling materials to Western Recycling.
21.5.8 REPUBLIC SERVICES shall immediately notify City Council to
seek direction if REPUBLIC SERVICES becomes aware that the
third party vendor is not processing (sorting, baling, shipping,
selling at market) all of the individual materials which comprise
Meridian's commingled recyclable material.
Nothing contained in this AMENDMENT shall change the agreement between the parties
that when there exists recycling net profit that it be split 80/20 with 80% returned to the
CITY by REPUBLIC SERVICES for the benefit of the Meridian Community Recycling
Fund.
6. PUBLIC NOTICE AND HEARING PROVISIONS: The parties agree that the
recycling processing fee which is the subject of this AMENDMENT is subject to
compliance with the notice and hearing provisions of Idaho Code 63-1311A.
7. EFFECTIVE DATE: The effective date for the recycling processing fee is predicated
upon Council's approval of the fee following public hearing and execution by the parties
of this AMENDMENT with the effective date established by Council to begin October 1,
2018 or as soon thereafter as practicable.
IN WITNESS WHEREOF, the parties have herein executed this agreement and made it
effective as herein above provided.
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REPUBLIC SERVICES, GENERAL MANAGER
Recycling Processing Fee Contract Amendment
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