HomeMy WebLinkAboutRepublic Services - Recycling Processing Fee Contract AmendmentRECYCLING PROCESSING FEE CONTRACT AMENDMENT
THIS Amendment to Paragraph 21 of the Franchise Agreement to Perforin Solid Waste
Collection and Disposal Services ("AMENDMENT"), is made and entered into thisZftay of
Is �, 2019, by and between CITY OF MERIDIAN, a municipal corporation of the State
of Idaho, called "CITY", and ALLIED WASTE SERVICES OF NORTH AMERICA,
LLC dba REPUBLIC SERVICES of IDAHO, a Delaware Limited Liability Company,
hereinafter called "REPUBLIC SERVICES", whose current address is: 11101 W. Executive Dr.
Boise, ID 83713.
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 July 24, 2019, REPUBLIC
SERVICES has sustained the net recycling processing cost of $547,131.53for the
period of July 2018 through June 2019 for Meridian's recycling program; and
1.5 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
1.6 WHEREAS, REPUBLIC SERVICES has advised the CITY that effective
September 30, 2019 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
1.7 WHEREAS, the CITY desires to continue the Meridian Recycling Program
because of its beneficial diversion of materials from the landfill; and
1.8 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:
2. INCORPORATION OF RECITALS: That the above recitals are contractual
and binding and are incorporated herein as if set forth in full.
Recycling Processing Fee Contract Amendment 1
Meridian City Council Meeting Agenda September 24, 2019 – Page 190 of 257
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, 2020,
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.
5. 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.
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,
2019 or as soon thereafter as practicable.
IN WITNESS WHEREOF, the parties have herein executed this agreement and made it
effective as herein above provided.
MERIDIAN
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IDAHO
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Mark Masterson
ALLIED WASTE TRANSPORTATION, LLC
Dba REPUBLIC SERVICES of IDAHO, GENERAL MANAGER
Recycling Processing Fee Contract Amendment