HomeMy WebLinkAboutRepublic Services Recycling Processing Fee FY25 FY25 RECYCLING PROCESSING FEE CONTRACT AMENDMENT
This FY25 Recycling Processing Fee Contract Amendment("AMENDMENT"), is made
and entered into this_24_day of September, 2024, by and between CITY OF MERIDIAN, a
municipal corporation of the State of Idaho ("CITY"), and REPUBLIC SERVICES of Idaho, an
Idaho Corporation,hereinafter called ("REPUBLIC SERVICES"), whose current address is: l 1101
W. Executive Dr. Boise, Idaho,(together, "Parties").
1. RECITALS:
l.l WHEREAS, REPUBLIC SERVICES perform all services pertaining to solid waste
collection and disposal of the CITY'S solid waste pursuant to the Solid Waste
Franchise Agreement originally executed on January 18, 2000, and assigned to
Republic Services pursuant to Meridian City Council Resolution no. 12-844(the
"Franchise Agreement"); and
1 .2 WHEREAS,REPUBLIC SERVICES is also additionally contracted to collect and
dispose of recyclable materials as an addendum to the original franchise Agreement;
and
1 .3 WHEREAS, REPUBLIC SERVICES has added the additional cost for the monthly
net cost of recycling processing charges related to Meridian's recycling program; and
1.4 WHEREAS,the CITY has been advised that REPUBLIC SERVICES has sustained
additional costs for disposal for Meridian's recycling program; and
1.5 WHEREAS, due to the volatilely of the secondary recycling market, commodity
prices are not predicted to offset rising recycling processing costs for the foreseeable
future; and
1.6 WHEREAS, the CITY desires to continue the Meridian Recycling Program because
of its beneficial diversion of materials from the landfill; and
1.7 WHEREAS, it is the intent of the CITY and REPUBLIC SERVICES to amend the
existing MOU between the parties to include the disposal of recycling materials for
the future; 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.
3. DEFINITIONS:
a. Fiscal Year("FY")—This term is defined for purposes of this AMENDMENT as the
period beginning October 1, 2024 through September 30, 2025 and continuing for each
successive fiscal year until amended or terminated.
RECYCLING PROCESSING FEE CONrRACr AMENDMEN"r-FY25 I
b. Commingled Recyclable Material—This term is defined for purposes of this
AMENDMENT to include: metals, plastics, newspaper, cardboard, and mixed paper.
c. Net Cost of Recycling Processing Charges - This term is defined for purposes of this
AMENDMENT as the charge to process(sort, bale, ship, and sell at market) Meridian's
commingled recyclables minus the rebate provided by Republic Services' Material
Recovery Facility from material commodity sales.
4. AMENDMENT to PARAGRAPH 21 of the FRANCHISE AGREEMENT:
Section 21 of the of the Franchise Agreement shall be modified with the addition of
language to read as follows:
21.5 RECYCLING PROCESSING FEE: Subject to the provisions set forth in
Paragraph 6 of this AMENDMENT, for the period beginning October 1,
2024 and ending September 30, 2025 ("FY25") as determined by the rate
schedule adopted between the CITY and REPRUBLIC SERVCIES for
disposal of recyclables; and
The Recycling Processing Fee shall be incorporated into the rate schedule on
annual basis and be subject to the same provisions that govern all rates for
disposal contemplated within the underlying MOU; and
CPI-INDEX - The recycling processing fee is not subject to the annual CPI
rate calculation.
FRANCHISE FEE -The City will receive the 6% franchise fee on all
commercial and residential rate components, including the recycling
processing fee.
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.
REPUBLIC SERVICES agrees to provide the CITY a year end reconciliation
report of its recycling processing charges, including an audit of the estimated
increase for the period October 1, 2024 through September 30, 2025. This
reconciliation shall be provided to City Staff within 120 days of September
30, 2025.
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 63-131IA.
7. PREVIOUS AGREEMENTS SUPERSEDED: This Amendment shall supersede and
replace all previous Recycling Processing Fee Contract Amendments, which shall each and
RECYCLING PROCESSING FEE CONTRACT AMENDMENT-FY25 2
all be nullified and void as of the effective date of effective date of the recycling processing
fee as set forth herein.
8. 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, 2024
or as soon thereafter as practicable.
IN WITNESS WHEREOF, the parties have herein executed this agreement and made it
effective as herein above provided.
REPUBLIC SERVICES:
Cord Sta y, Gen al Manager
Republic Services of Idaho
CITY OF MERIDIAN:
Luke Cavener, Council President 9-24-2024 Chris Johnson, City Clerk 9-24-2024
RECYCLING PROCESSING FEE CONTRACT AMENDMENT—FY25 3