Sanitary ServicesMERIDIAN CITY COUNCIL MEETING: APRIL 2.1996
APPLICANT: ITEM NUMBER; 15
REQUEST; SANITARY SERVICES. MOE ALIDJANI• DISCUSSION OF PRESENT CONTRACT
AG NCY
CITY CLERK:
CITY ENGINEER:
CITY PLANNING DIRECTOR:
CITY ATTORNEY:
CITY POLICE DEPT:
CITY FIRE DEPT:
CITY BUILDING DEPT:
MERIDIAN SCHOOL DISTRICT:
MERIDIAN POST OFFICE:
ADA COUNTY HIGHWAY DISTRICT:
ADA COUNTY STREET NAME COMMITTEE:
CENTRAL DISTRICT HEALTH:
NAMPA MERIDIAN IRRIGATION;
SETTLERS IRRIGATION:
IDAHO POWER:
US WEST:
INTERMOUNTAIN GAS:
BUREAU OF RECLAMATION:
COMMENTS
OTHER:
All Materials presented at public meetings shall become property of the City of Meridian.
MERIDIAN
Phone (208)888-3999
Sanitary
Service
P.O. Box 626
Meridian, Idaho 83642
The Honorable
Robert D. Corrie, Mayor
and Gentlemen Council
City of Meridian
33 E. Idaho
Meridian Idaho 83642
March 29, 1996
~~~E~vED
MAR 2 8 199
CITY OF MERIDIAN
Re: Request for Rate Increase and Contract Extension
Dear Mayor Corrie and Councilmen:
My purpose in writing is to request the City of Meridian
("City") to review and increase the rates payable to Sanitary
Service, Inc. ("SSI") for the removal of garbage and refuse for
residential and commercial accounts. In addition, SSI requests
City to extend the term of its current Agreement with City.
I. Recruest for Rate Increase.
Pursuant to section 7 of the Agreement between City and SSI
dated March 16, 1984, current economic conditions justify a twenty
(20$) percent increase in all residential and commercial rates
payable to SSI (excluding any increase in the daily or monthly
dumpster rental fees). In the alternative, SSI requests the
amounts paid to SSI for residential and commercial accounts be
increased by ten (10$) percent, and the City assume responsibility
for the direct payment of all landfill fees to the Ada County Solid
Waste Management Department. It is SSTs belief that current
economic conditions justify an increase in the amounts payable to
SSI for the following reasons:
A. Although the parties' Agreement allows for rates to be
reviewed and adjusted every two years, the current rates
have been effective since May 15, 1992.
The Honorable
Robert D. Corrie, Mayor
March 29, 1996
Page 2
B. The landfill rates that SSI is required to pay to the Ada
County Solid Waste Management Department for the vast
majority of the refuse collected (non-compacted waste)
increased by one hundred (100$) percent effective
February 1, 1996. Attached for your review as Exhibit
"A" are copies of a letter from the Ada County Solid
Waste Management Department and a landfill Rate
Comparison, which identify this increased cost. Since
the landfill rates payable by SSI to Ada County
constitute a significant portion of SST s operating
costs, SSI is unable to absorb this rate increase without
severe economic hardship.
C. As set forth in the comparison tables attached as Exhibit
"B", the residential and commercial refuse collection
rates paid by the neighboring municipalities of Boise
City, Ada County, Kuna, Nampa, and Caldwell are
significantly higher then the collection rate in the city
of Meridian. Although an increase by twenty (20g)
percent in City's collection rates would not exceed the
amounts charged by neighboring municipalities in most
circumstances, it would bring City's rates more in line
with neighboring communities.
D. As a result of the wages paid in the neighboring
communities, it is becoming increasingly difficult for
SSI to attract and retain qualified and dedicated
employees that have the desire and capability to continue
to provide professional refuse collection services to the
residents and businesses located in the City of Meridian.
As a result of increased costs to SSI and other current
economic conditions, SSI believes the requested twenty (20~)
percent rate increase is justified. If approved, the new increases
are as set forth on the Proposed Trash Haul Regulations, attached
as Exhibit "C".
If City, like the municipalities of Boise City and Ada County,
is willing to assume responsibility for the direct payment of all
landfill fees for refuse generated within the City limits to Ada
County, SSI believes a ten (10~) percent rate increase for all
commercial and residential accounts is justified.
The Honorable
Robert D. Corrie, Mayor
March 29, 1996
Page 3
II. Request for Contract Extension.
In addition to the rate increase, SSI hereby requests City to
consider extending the term of SST s existing Agreement from
September 9, 1999 for a period of five (5) years, to September 9,
2004, together with a two (2) year option thereafter. It is SST s
position that an extension of the existing Agreement would be
beneficial to both SSI and City for the following reasons:
A. As a result of City's rapid growth in population and
commercial development, SSI has been, and willing
continue to be, required to continually expand its
services at considerable cost and expense. As a result
of this growth, SSI has an immediate need to purchase two
(2) trucks, one to haul roll-off containers and one for
commercial/residential routes. However, it is difficult
for SSI to obtain financing for major purchases since the
remaining term of its contract is only approximately
three and one-half (3 1/2) years. Without an extension
of its contract, SSI will be unable to continue to
purchase new vehicles as it has in the past. With an
extension of the term of the present Agreement to the
year 2004, SSI will be in a position to make the
necessary capital expenditures to keep up with .the growth
in commercial and residential accounts.
B. As a result of the tremendous capital expenditures
required to continue to purchase new equipment, upgrade
services, and maintain current service quality levels,
the vast majority of the refuse collection and disposal
contracts in neighboring municipalities have been set for
significant terms as follows:
Boise - five (5) year, with five (5) year option;
Ada County - seven (7) year, with seven (7) year
option;
Nampa - five (5), with (5) year option; and
Caldwell - five (5) year, with five (5) year option.
C. An extension of the term of SSTs Agreement would also
benefit City. With the extension, SSI will be in a
position to not only maintain but upgrade its services to
City's residents and businesses.
The Honorable
Robert D. Corrie, Mayor
March 29, 1996
Page 4
It is my understanding that SSTs request for a rate increase
and Agreement extension have been placed on the agenda for the
City Counsel meeting scheduled for Tuesday, April 2, 1996, and I
look forward to discussing this matter further with you and the
council members at that time.
If you have any questions prior to the April 2, 1996 council
meeting, please do not hesitate to contact me.
Sincerely,
SANITARY SERVICES, INC.
w
Mohammad Alidj ani
President
MA/kli
attachments
cc: City Clerk
City Attorney
EXHIBIT "A"
Dear Customer:
ADS CO~T~
Solid Ws~ste Management
X~epartment
b50 Main Sued
Boise, Ydaho 83702
853-1.297
Regulatory chaoges have taken pleas over the past few years that bave increased Ada County's anticipated
landfill closure costs by over $10,000,000. )n order to fund this expense, Ada County finds it necessary
to increase it's landfill rafts. The following landfill rates will be effective February 1, 1996.
1. lviinimum fee
'2. Recyclable Wood
3. Non-Compacted waste
4. Compacted wASte
5. Urban rubbldappliances
°6. Asbestos (minimum)
7. Asbestos
`8. Whole Tires
°9. Refrigeration Units
`10. Liquid Waste
fl 1. Disposal Certification
'12. Fee Reducdon/VNaivcr
55.00
1.00 per cubic yard
2,00 per cubic yard
3.00 per cubic yard
4.00 per cubic yard
50.00
25.00 per cubic yard
1.50 each
10.00 each
.35 gallon
15.00
' Recyclable wood loads roust contain only wood waste. Individuals depositing loads containing other
waste materials (mixed waste) will not receive the recyclable wood raft. Wood waste will include
structural lumber, plywood, siding„ pallets, utility spools, brush and limbs. Maximum lcngtb - 8'.
Ma~aimum Diameter - 20".
"Includes Disposal Certification
° Limit - 4 tires per vehicle per visit, cannot arceed 16" rim diameter.
° Refrigeration Units -All units with refrigerant and compressors {i.e. refrigerators, freezers, air
conditioners). Limit - 2 per household per year. No commercial loads accepted.
`]Food grease trap wastes only. Certification by generator and hauler requved.
r When either the waste hauler desires, or in certain instances the law requires, that particularly sensitive
wastes (drugs, alcohol, tobacco, legal or medical records, etc.) require that an authorized Ada County
employee be present to view disposal, this fee will be charged. The 515.00 fee will cover the first 15
minutes of the County employee time. Each additional l 5 minutes or fraction thereof will be charged at
$10.00.
~ The Board of County Commissioners may, from time to time, under circumstances deemed
annrnnriAtl! f1»thnrisP A fPR rgriiu:tinn nr fir. waiver
EXHIBIT "A-1"
Ada County Landfill Rate Increase Comparison
Before 2/1/96 After 2/1/96 Percentage
Increase
Minimum Fee $4.00 $5.00 25%
Recyclable Wood $1.00 per cubic yd. $1.00 per cubic yd. 0%
Non-Compacted Waste $1.00 per cubic yd. $2.00 per cubic yd. 100%
Compacted Waste $1.50 per cubic yd. $3.00 per cubic yd. 100%
Urban rubble/appliances $2.00 per cubic yd. $4.00 per cubic yd. 100%
Asbestos (minimum) $50.00 $50.00 0%
Asbestos $20.00 $25.00 25%
Whole Tires $1.50 each $1.50 each 0%
Refrigeration Units $5.00 each $10.00 each 100%
Liquid Waste $0.35 gallon $0.35 gallon 0%
Disposal Certification $10.00 $15.00 50%
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EXHIBIT "C"
Proposed
TRASH HAUL REGULATIONS
City of Meridian
(Effective April 15, 1996)
All trash must be in approved cans or heavy duty plastic bags.
Cans must beleak-proof and have lids. Cans must be between 20 and 32 gallons, not over 80
lbs. per can. Bags must be tied shut.
There is no extra charge for more than one can or bag.
All empty boxes and tree trimmings must bebundled -maximum length four feet.
All trash that does not comply with the City Ordinance will not be picked up -including
grocery bags and boxes full of trash.
The only variations from this schedule must be approved by the City's Board of Equalization
of Trash.
Sanitary Service, lnc. Will be closed all legal holidays when City Hall is closed. Your pick-up
day would be one day later that week
RESIDENTIAL:
$7.20 a month unlimited cans, 1 pick-up per week
$6.00 a month senior citizens - 65 years
COMMERCIAL & BUSINESS:
$7.20 a month, l can limit
$7.20 a month, each additional can
$7.20 a month, each additional pick-up per week
Compacted roll-off boxes $7.02 per yard (customer's box)
MONTHLY RATE FOR COMMERCIAL ACCOUNT
DMPST 1 pick-up 2 pick-ups 3 pick-ups 4 pick-ups 5 pick-ups 6 pick-ups
Size per week per week per week per week per week per week
* 1 yd, $31.00 $47.00 $60.00 $74.00 $89.00 $103.00
1 1/2 $40.00
yd. $61.00 $84.00 $104.00 $127.00 $150.00
* 2 yd. $46.00 $67.00 $82.00 $119.00 $144.00 $168.00
3 yd. $56.00 $92.00 $130.00 $167.00 $204.00 $240.00
4 yd. $88.00 $154.00 $221.00 $287.00 $353.00 $420.00
6 yd. $100.00 $179.00 $254.00 $329.00 $406.00 $480.00
* Dempster in Limited Supply
DUMPSTERS NOT ON REGULAR ROUTES
Dump Fee D/Const. Daily Monthly
20 yd. $106.00 $120.00 $2.20 $63.00
30 yd. $132.00 $162.00 $2.75 $77.00
40 yd. $144.00 $186.00 $3.00 $88.00
* 3 yd. $10.00 N/A $0.60 $16.00
* 15.6 Delivery Charge
CITY HALL - 888-4433
SA1vITARY SERVICE - 888-3999
A G R E E M E N T
THIS AGREEMENT, made and entered into this~6~~ day of
f~q,rC ~ , 198x, by and between the CITY OF N~RIDIAN, a
municipal corporation of the State of Idaho, party of the first
part, an SANITARY SERVICE, INC. , an Idaho corporation, having
its principal place of business at Meridian, Idaho, party of the
second part,
W I T rI E S S E T H:
WHEREAS, the City of Meridian has heretofore under authority'
of Title 7, Chapter 3 of the Ordinances of the City of Meridian
had a contract with second party for the hauling of garbage, refuse
and trash within the corporate limits of the City of Meridian, and
WHEF.EAS, the parties hereto have renegotiated said contract
under authority of said Ordinance as hereinafter contained.
NOW, THEREFORE, in consideration of the covenants herein
contained, it is hereby agreed as follows:
1. That the City of Meridian does hereby contract with
second party for the removal of garbage, refuse and trash from the
City of Meridian and within the corporate limits thereof for a
period from the date of this contract until September 9, 1999, and
it is specifically agreed that the rates and charges for this
service shall be set by the City Council of the Ci ~Y of N,eridian
AMBROSE.
FITZGERALD
SCROOKSTON
Agp,n~y~ Alfld
CounNlors
P,O.Boa AZ7
AKltllan, Ida110
l36A4
~ONOn~ rs88.14
fih~~k -~-h~s
was r~'~Se~ -~~
~ ~ ~a
j by Ordinance or rule or regulation, pursuant to Section 7-311,
Compiled Ordinances of the City of Meridian, State of Idaho.
2. It is agreed that for all pickups and service within
the City of Meridian, the billings therefor shall be handled
by said City and the City shall receive and account for all monies
both billed for and collected.
3. It is agreed that the City shall receive for this service
the sum of five percent (5~) of the gross income collected by the
City.
4. It is further agreed that said City will balance and
AMBROSE.
FITZGERALD
iCROOKSTON
AMormy~ ana
CounNlws
p.0.8ox 147
M~rlOfan, IdNo
l36d2
ND~a» 8lB~E1
settle the accounts connected with this contract twice monthly '
such that second party will receive a check for payment of services'
i
on the 15th day of each month and another check on the last day of
each month. It is further understood and agreed that all '~illings
and collections shall be done by the City. The City agrees to use a11'
i
reasonable means of collection and the twice monthly payment to
I
second party shall be based on all accounts actually collected
I
for the preceding portion of the month. City agrees to notifl~
i
second party of all delinquent accounts within 60 days, and all
delinquent accounts collected shall be accounted for and distri-
buted to the parties hereto every three months . Second party
shall have the right to inspect City's books at all reasonable
times to check the accuracy of the account under this contract.
5. It is further agreed t'~at this contract shall be subject
to and include by reference all of the terms of Title 7, Chap ter 3,
of the Ordinances of the City of Meridian under authority of which
this said contract is executed.
6. It is further agreed.-that in the event second party shall
fail to perform the services required under this con tract or
default in the performance thereof, said City shall have t'~e right
to cancel the same upon first giving second party thirty (30) days
written notice of the nature and manner in which it is in default
and upon failure of second party to correct or remove said default
within said period of thirty (30) days, the City shall have the
right to declare this contract forfeited, shall retain all monies
heretofore paid to the City as its percentage under this contract,
and shall upon declaration of forfeiture, account to second party
for all monies due on the date of forfeiture, and in such event,
second party specifically agrees to cease and desist from the per-
formance of any services called for by this contract within the
City of *4eridian, and the City shall be immediately released
therefrom and shall have the right to enter into such other and
different contract as it may deem necessary for the performance of
the services by the City required.
7. It is agreed that the rates and charges as allowed to be
I AMBROSE.
FlTZGERALD
i CROOKSTON
Attomapa and
Obinlaa101i
P,O. Box 4Z7
Nandlan,ldata
!1642
»O~a bbb•446t
set forth shall be reviewed by the parties every two years and
adjusted up or down, or left the same, as the existing economic
conditions justify.
i
8. It is agreed that all apartments or other units on one
I. water meter shall be charged to the registered owner of said meter
as shown on the records of the City.
9. It is agreed that all residential units are allowed
IiJ WITNESS WHEREOF, the parties hereto have hereunto set
CITY OF MERIDIAN
unlimited service under the basic charge so long as the proper
trash receptacles are used as allowed under Title 7, Chapter 3,
of the Compiled Ordinances of the City of Meridian, State of
Idaho.
10. It is further agreed that second party has the right to
terminate this contract after first giving first party six (6 )
months notice in writing. This agreement supersedes any and alI
prior agreements entered into between the parties hereto.
their hands and seals, the day and year in this agreement first
above written.
TTEST:
By
Gran Kingsfor N! y
ty
SANITARY SERVICE, INC.
I AMBROSE,
FrRGERALD
1CROOKSTON
ATTEST:
BY
. esident
tart'
Attpmhq ~p
Cou~f~lon
P.O. Boa X27
NtldUn. Idalq
l3Q42
~Nl~E8~44e1
STATE OF IDAHO, )
ss.
County of Ada, )
On this ~ ~ day of ?~',~~,~,_,t;,`' 1984, before me, the under-
signed a Notary Public in and for said State, personally appeared
GRANT KINGSFORD and JACK NIEMANN, Mayor and City Clerk, respectively
of the City of Meridian, and MOHAMMED ALIDJANI and HELEN ALIDJANI , r
President and Secretary, respectively, of Sanitary Service, Inc.,
and acknowledged to me that they executed the ~~ithin and foregoing
instrument in the name of and on behalf of said City and corpora-
ti on .
IN ~7ITNESS WHEREOF, I have hereunto set my hand and affixed
my official seal the day and year in this certificate first above
written.
1 ,
Notary Public
(SEAL) Residing at M
AMBROSE,
FITZGERALD
SCROOKSTON
I AftonNy~ ~q
Couns~lon
P.O. Bou ~7
'~KlAlan, Idalq
l76t2
'+DhoM EabIJ61
.`
~~ .~~~~
for Idaho
eri dian , Idaho
ADDENDUM AGREEMENT
hls
THIS ADDENDUM AGREEMENT, made this )~,~ day of Jae,
1986, by and between the CITY OF MERIDIAN, a municipal corpora-
tion of the State of Idaho, party of the first part and hereafter
referred to as "CITY", and .SANITARY SERVICE, INC., an Idaho
corporation, party of the second part and hereafter referred to
as "SERVICE", W I T N E S SET H:-
WHEREAS, CITY and SERVICE entered into an Agreement dated
March 16, 1984 which is hereby incorporated herein as if set fort::
in full hereat; and
WHEREAS, CITY and SERVICE desire to amend their Agreement.
NOW, THEREFORE, in consideration of the covenants herein
contained, and those in theariginal agreement, IT IS HEREBY
AGREED AS FOLLOWS:
1. The original Agreement, a copy of which is attached
hereto marked Exhibit "A", is, by this reference, incorporated
herein as if set forth in full hereat.
2. That in addition to the provisions contained in the
original Agreement, it is specifically agreed as follows:
a. That SERVICE is an independent contractor and
tY~.e relationship between the CITY and SERVICE is
not that of principal and agent, employer and employee,
parer, or joint venturors, nor any other relation-
ship other than independent contracting parties.
AIABROBE
PrTZGERALO
iCROOKBTON
Aflom~ and
CounNlon
P.O. Box 127
1A~rldl~n, Itlano
t761Z
b. That SERVICE shall save and hold CITY harmless
from any and all liabilities of whatsoever nature.
arising out of any and all actions of SERVICE arising
either in the performance of its contract with the
CITY or otherwise, and SERVICE shall additionally
indemnify CITY for any and all damages which the CITY
may be assessed or may incur arising either in the
performance of this agreement or arising out of the
relationship between CITY and SERVICE.
c. That beginning the date of this agreement SERVICE
shall maintain liability insurance in the sum of
$350,000.00 until October 1, 1986, at which time
SERVICE shall maintain liability insurance in the sum
of $500,000.00 or such sum as required by Section
6-924., Idaho Code, as amended, and shall have the CITY
named as an additional insured party on said liability
insurance policy and shall provide proof of insurance
to CITY annually. It is agreed that if said policy of
liability insurance shall not be maintained or kept in
full force and.eff ect such failure shall be grounds for
the CITY to terminate this contract with SERVICE.
3. .That in all other respects the original Agreement
between the parties shall remain in full force and effect.
4
IN WITNESS WHEREOF, the parties have hereunto set their
hands and seals, the day and year in this Addendum AGreement
first above written.
T:
ATTEST:
CITY OF MERIDIAN,
a municipal corporation
B
0
"CITY"
SANITARY SERVICE, INC.
an Idaho corporation
By ~.
~~
President
AMBROSE, ~" '/
FiTZGEAALD ecretary "SERVICE"
i CROOKSTON
Atlomhr~ an0
Couns~la~s
P.O. Box 4?T
AA~eldlan, Idaho
03642
TN~pfoon~ 886x46/
~ManoaE,
FITZOERALO
iCROOKBTON
Atlonuy~~n0
CO~mNlors
STATE OF IDAHO )
• ss.
County of Ada )
On this ~Jc~ F da of 3~#Se,
y 1986, before me, the under-
signed, a Notary Public in and for said State, personally
appeared GRANT P. KINGSFORD and JACK NIEMANN, Mayor and City
Clerk, respectively, of the City of Meridian, the municipal
corporation that executed this instrument and the persons who
executed the instrument on behalf of said corporation, and
acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my official seal, the day and year in this certificate first
above written.
(SEAL )
STATE OF IDAHO )
ss.
County of Ada )
Notary Public. for daho
Residence: Meridian, Idaho.
~~9us t
On this )a day of 3siae, 1986, before me, the under-
signed, a Notary Public in and for said State, personally
appeared MOHAMMED ALIDJANI and HELEN ALIDJANI, known to me to
be the President and Secretary of the ca~poration that executed
this instrument and the persons who executed the instrument on
behalf of said corporation, and acknowledged to me that such
corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my official seal, the day and year in this certificate first
above written.
(SEAL) Notary Public for I aho
Residence: Meridian, Idaho.
P.O. SOft 117
MNldl~n. Idaho
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