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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% ~ ~ ~~_ 3 ;a ... A A ~ O ~ y W y fE b d ~ ~ ~~ ... A p v ~~ ~; r G '~~ r~ ~~ ~ d A~. 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O ~ N ~ ~ v W ~ 00 ~ 'C 0o ~ -+ O ~ O S O O S O O ? A ~p ~ Z z ~ ~ o p o a O o ~ O o c~ v~ ~ ~ a s + + ~ n ~~ ~ ~ ~ ~ ~ ~ ~ s~ ~ ° v ~ ° ~ •~ ,~ °O "~ w ~ En ~o 0o ~ a~ d o •o ~ o , so ~ ~ o o ,~ n ~, 0 N ~. ~ ~ W ~ z z ° , o o 0 0 a s ~ ~ C z z z z z z ~ z z ~ „ a a a a a a o a s ~ bA O~ N ~ 00 0o --• O v ~l 00 00 C~ W W 00 00 W v O A V v A N O~ a ~ O O O O O O C O O O O O O O O O O O O O O O O O C O ;S A O a n 0 a ro ~' O D n 0 n ~~y W y bd 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 l10~2