CITY OF BOISE. Republic Services of Boise Franchise Agreement and Reimbursement Rates
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1 CITY OF BOISE To: FROM: Mayor and Council Members Catherine Chertudi Public Works Jon Williams - Public Works ORDINANCE NUMBER: O-4-12A DATE: January 24, 2012 SUBJECT: Republic Services of Boise Franchise Agreement and Reimbursement Rates ACTION REQUIRED: Adopt an ordinance amending the franchise agreement with Republic Services of Boise to include a reduction in the reimbursement for the subscription glass collection program, a reduction in the reimbursement rates for commercial recycling collection services, and a provision that revenues from residential recycling commodities be remitted to the City. RECOMMENDATION: adoption of the ordinance. The Public Works Commission and Public Works staff recommend FISCAL IMPACT/BUDGET IMPLICATIONS: By reducing the rate for Subscription Glass Collection, we anticipate participation in the program will increase to about 1,500 customers. The net effect of the reduced rates and increased participation will increase Republic s expenses which will be at least partially offset by increased efficiency in the glass collection routes. By reducing the reimbursement rates for commercial recycling, the city will be able to reduce customer rates and increase recycling participation. The fiscal impact will increase costs to Republic Services bringing the gross profit margin in alignment with the annual target. There will be no cost to customers. Amending the provision for recycling revenues to be remitted to the City on a monthly basis is consistent with current practices and streamlines the past practice of accounting for this in the gross margin provision of the franchise agreement. There is no fiscal impact or budget implication from this change. BACKGROUND: In order to implement the subscription glass collection program, the franchise agreement with Republic Services must be modified to include the separate collection of glass from residences and businesses. Also, as part of the annual rate negotiations with Republic Services, new reimbursement rates were negotiated for glass and commercial recycling collection services. Reimbursement rates for glass collection will be reduced to $5.00, which allows the customer rate to be reduced to $5.50 per month. Commercial dumpster rates will be reduced by $5.00 and commercial cart recycling service will be free for one cart collected weekly (cart rental and sales tax will be charged).
2 Since August of 2011, Republic Services has remitted residential recycling commodity revenues to the City on a voluntary basis. The current agreement treats these revenues as income which is then incorporated into the calculation of gross margin which the franchise agreement uses as a target to set reimbursement rates. Having these payments go directly to the City on a monthly basis makes for a much easier and clearer accounting of the program costs. ATTACHMENTS: Proposed ordinance and franchise agreement addendum.
3 ORDINANCE NO. BY THE COUNCIL: CLEGG, EBERLE, JORDAN, MCLEAN, QUINTANA, AND THOMSON AN ORDINANCE AMENDING THE SOLID WASTE FRANCHISE AGREEMENT BY AND BETWEEN THE CITY OF BOISE AND REPUBLIC SERVICES OF BOISE (REPUBLIC, FORMERLY ALLIED WASTE SERVICES, INC.) TO INCLUDE AN UPDATED RATE SCHEDULE FOR REIMBURSEMENT TO REPUBLIC FOR SOLID WASTE COLLECTION AND DISPOSAL SERVICES; REPEALING THE PRIOR REPUBLIC REIMBURSEMENT RATE SCHEDULE ESTABLISHED BY ORDINANCE 6825; APPROVING AN ADDENDUM TO THE SOLID WASTE FRANCHISE AGREEMENT PROVIDING FOR COLLECTION OF ADDITIONAL RECYCLABLE MATERIALS (GLASS) AND PROVIDING FOR RESIDENTIAL RECYLABLE MATERIAL REVENUE TO BE PAID TO THE CITY; AUTHORIZING THE MAYOR TO SIGN THE ADDENDUM ON BEHALF OF BOISE CITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on December 2, 2008, pursuant to Ordinance No. 6695, Boise City Council approved a solid waste franchise agreement extension with Allied Waste Services (Allied), now known as Republic Services of Boise (Republic), for the collection of solid waste for a period of ten years effective January 1, 2009; and WHEREAS, on September 27, 2011, pursuant to Ordinance 6825, the Council approved an updated rate schedule for reimbursing Republic for its services; and WHEREAS, new rates need to be established to improve the glass and commercial recycling programs; and WHEREAS, the Public Works Commission and Public Works staff members have recommended the franchise agreement be amended and reimbursement rates adjusted; and WHEREAS, the City and Republic wish to amend the franchise agreement to provide for additional collection services using Republic provided containers for glass recycling for residential and commercial premises; to provide for the payment of revenues from residential recyclable materials to the City; and to adjust the Republic reimbursement rates for glass collection and commercial recycling services. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE O-4-12A
4 CITY OF BOISE CITY, IDAHO: Section 1. That the Solid Waste Franchise Agreement is hereby amended to include the updated rate schedule for reimbursement to Republic Services of Boise for solid waste collection services, a copy of said rate schedule is attached hereto and incorporated herein by reference as Exhibit A. The effective date for all rates shall be March 1, 2012 except commercial recycling services which shall have a June 1, 2012 effective date Section 2. That the rate schedule approved by Ordinance No is hereby repealed effective March 1, 2012 except for commercial recycling services which shall be repealed effective June 1, Section 3. That the Addendum to the Solid Waste Franchise Agreement by and between the City of Boise City and Republic, a copy of said Addendum marked Exhibit B attached hereto and incorporated herein by reference, be and the same is hereby, approved as to both form and content. Section 4. That the Mayor and City Clerk be, and they hereby are, authorized to respectively execute and attest said Addendum for and on behalf of the City of Boise City. Section 5. That this Ordinance shall be in full force and effect after its passage, approval and publication. PASSED by the Council of the City of Boise, Idaho this day of, APPROVED by the Mayor of the City of Boise, Idaho this day of, APPROVED: ATTEST: David H. Bieter MAYOR Debbie Broughton EX-OFFICIO CITY CLERK O-4-12A
5 Exhibit B ADDENDUM TO THE SOLID WASTE FRANCHISE AGREEMENT BETWEEN BOISE CITY AND REPUBLIC SERVICES OF BOISE WHEREAS, on December 2, 2008, pursuant to Ordinance No. 6695, Boise City Council approved a solid waste franchise agreement extension with Allied Waste Services (Allied), now known as Republic Services of Boise (Republic), for the collection of solid waste for a period of ten years effective January 1, 2009; and WHEREAS, the City and Republic wish to amend the franchise agreement to provide for additional collection services using Republic provided containers for glass recycling for residential and commercial premises; and to adjust the Republic reimbursement rates for glass collection and commercial recycling services. NOW THEREFORE, Boise City and Republic do hereby agree to amend that certain SOLID WASTE FRANCHISE AGREEMENT entered into by the parties on December 2, 2008 in the following manner: 1. That Section 6.B.8 be added to read as follows: 8. Republic shall provide wheeled carts and service for curbside collection of glass bottles and jars at least one time every four weeks. Curbside glass collection shall be provided to customers upon subscription to the curbside glass collection program. 2. That Section 6.C.be added to read as follows: 7. Glass empty glass bottles and jars without caps, corks or lids. 3. That Section 21.A shall be amended to read as follows: A. Separation and Delivery. Republic shall be responsible for collection and delivery of recyclable materials set out by customers in containers in accordance with the terms and conditions of the Contract SWMP. In accordance with Section 46 herein, all recyclable materials shall become the sole property of Republic upon collection. Republic shall make payment of the revenues from residential recyclable materials to the City and Republic may retain any revenue derived from commercial recyclable materials and shall pay any costs or charges which may be incurred during the collection and delivery process.
6 4. That the balance of the terms and conditions of the Solid Waste Franchise Agreement shall remain in full force and effect. 5. This addendum shall become effective upon signature of the parties and upon approval by the City Council of Boise City pursuant to and incompliance with the provisions of Idaho Code including all notice and publication provisions thereof but in no event prior to 30 days from the date of its introduction before the Council. Dated this day of, CITY OF BOISE CITY ATTEST: By David H. Bieter, Mayor City Clerk REPUBLIC SERVICES OF BOISE By
7 EXHIBIT A Page 1 of 4 Republic Services of Boise PRICE TARGET AND RECYCLE MATERIAL SALES Diesel Fuel $ 3.00 per Gallon Residential Recycle Material Sale Revenue All Revenue Received by Republic Services Passed on to City of Boise SERVICE DAILY RENTAL MONTHLY RENTAL CHANGE Effective Current Proposed Current Proposed Current Proposed Service Rental Date HOUSEHOLD Residential Trash $ 7.25 $ 7.25 Residential Recycling $ 2.58 $ 2.58 Residential Premium Carry-out Service $ $ Residential Curbside Carry-out Service $ $ Residential Glass Collection $ 9.50 $ % 3/1/2012 Additional Collection $ 7.41 $ 7.41 Additional Trash Cart after first 5,400 per Month $ 1.08 $ 1.08 Second Additional Trash Cart per month $ 1.73 $ 1.73 Additional Trash Carts with Waiver per Month $ 1.73 $ 1.73 Additional Recycle Cart $ 1.08 $ 1.08 Cart Pickup $ $ Sticker for Additional Pickup (per Sticker) $ 0.86 $ 0.86 Appliance Collection With Freon $ $ Appliance Collection Without Freon $ $ Leaf Collection per day $ 2, $ 2, Christmas tree collection per day $ 2, $ 2, BUSINESS TRASH (Regular Commercial) 3-8 yd Dumpster Delivery $ $ Lid Lock $ $ x yd Dumpster 1x / mth $ $ $ $ x yd Dumpster every other week $ $ $ $ x yd Dumpster 1x / week $ $ $ $ x yd Dumpster 2x / week $ $ $ $ x yd Dumpster 3x / week $ $ $ $ x yd Dumpster 4x / week $ $ $ $ x yd Dumpster 5x / week $ $ $ $ x yd Dumpster 6x / week $ $ $ $ x yd Dumpster 1x / week $ $ $ $ x yd Dumpster 2x / week $ $ $ $ x yd Dumpster 3x / week $ $ $ $ x yd Dumpster 4x / week $ $ $ $ x yd Dumpster 5x / week $ $ $ $ x yd Dumpster 6x / week $ $ $ $ x yd Dumpster 1x / mth $ $ $ $ x yd Dumpster every other week $ $ $ $ x yd Dumpster 1x / week $ $ $ $ x yd Dumpster 2x / week $ $ $ $ x yd Dumpster 3x / week $ $ $ $ x yd Dumpster 4x / week $ $ $ $ x yd Dumpster 5x / week $ $ $ $ x yd Dumpster 6x / week $ $ $ $ yd Dumpster 1x / mth $ $ $ $ yd Dumpster every other week $ $ $ $ yd Dumpster 1x / week $ $ $ $ yd Dumpster 2x / week $ $ $ $ yd Dumpster 3x / week $ $ $ $ yd Dumpster 4x / week $ $ $ $ yd Dumpster 5x / week $ $ $ $ yd Dumpster 6x / week $ $ $ $ (per dump charges) 3x yd Additional Dump $ $ x yd Additional Dump $ $ x yd Additional Dump $ $ yd Additional Dump $ $ Additional Collections per Hour $ $ Each 5x Minute Increment $ $ COMMERCIAL TRASH CAN SERVICE (monthly charges) 1-6 carts 1x /week - Regular $ $ 21.75
8 EXHIBIT A Page 2 of 4 SERVICE DAILY RENTAL MONTHLY RENTAL CHANGE Effective Current Proposed Current Proposed Current Proposed Service Rental Date 1-6 carts 2x /week - Regular $ $ carts 3x /week - Regular $ $ carts 4x /week - Regular $ $ carts 5x /week - Regular $ $ carts 6x /week - Regular $ $ carts 1x /week - Carry-out $ $ carts 2x /week - Carry-out $ $ Wheeled Cart 95 gallon $ 3.08 $ % 6/1/2012 Cart Pickup $ $ CUSTOMER-OWNED COMPACTORS TRASH SERVICE (monthly charges) 3 Yd Compactor 1/week $ $ Yd Compactor 2/week $ $ Yd Compactor 3/week $ $ Yd Compactor 4/week $ $ Yd Compactor 5/week $ $ Yd Compactor 6/week $ $ Yd Compactor 1/week $ $ Yd Compactor 2/week $ $ Yd Compactor 3/week $ $ Yd Compactor 4/week $ $ Yd Compactor 5/week $ $ Yd Compactor 6/week $ $ Yd Compactor 1/week $ $ Yd Compactor 2/week $ $ Yd Compactor 3/week $ $ Yd Compactor 4/week $ $ Yd Compactor 5/week $ $ Yd Compactor 6/week $ $ Yd Compactor 1x/week $ $ Yd Compactor 2x/week $ $ Yd Compactor 3x/week $ $ Yd Compactor 4xx/week $ $ Yd Compactor 5x/week $ $ Yd Compactor 6x/week $ $ (per haul charges) 3 Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Yd Compactor $ $ Turn Around Fee - Non-Breakoff Compactor $ $ ROLL-OFFS/ON CALL TRASH SERVICE 3-8 yd Dumpster Delivery $ $ yd Container Delivery $ $ Relocations / Returns $ $ yd Dumpster - Temporary $ $ $ 0.38 $ yd Dumpster - Temporary $ $ $ 0.60 $ yd Dumpster - Temporary $ $ $ 0.73 $ yd Dumpster - Temporary $ $ $ 0.95 $ yd Box - Regular $ $ $ 3.46 $ yd Box - Regular $ $ $ 4.08 $ yd Box - Regular $ $ $ 4.60 $ yd Box - Wood Waste $ $ $ 3.46 $ yd Box - Wood Waste $ $ $ 4.08 $ 4.08
9 EXHIBIT A Page 3 of 4 SERVICE DAILY RENTAL MONTHLY RENTAL CHANGE Effective Current Proposed Current Proposed Current Proposed Service Rental Date 40 yd Box - Wood Waste $ $ $ 4.60 $ yd Construction and Demolition per Haul $ $ yd Construction and Demolition per haul $ $ yd Construction and Demolition per Haul $ $ yd Box - Construction / Demolition $ $ $ 3.46 $ yd Box - Construction / Demolition $ $ $ 4.08 $ yd Box - Construction / Demolition $ $ $ 4.60 $ yd Box - Asbestos $ $ $ 3.46 $ yd Box - Asbestos $ $ $ 4.08 $ yd Box - Asbestos $ $ $ 4.60 $ 4.60 COMMERCIAL RECYCLING SERVICE Appliance With Freon $ $ Appliance Without Freon $ $ gal Blue Bin, 1x week $ 9.96 * Cart Pickup $ $ gal Cart, 1x month $ 7.62 * * * 1-95 gal Cart, 2x month $ * * * 1-95 gal Cart, 1x week $ $ - $ 3.08 $ % 6/1/ gal Cart, 2x week $ * * * 1-95 gal Cart, 3x week $ * * * 1-95 gal Cart, 4x week $ * * * 1-95 gal Cart, 5x week $ * * * 2-95 gal Cart, 1x month $ * * * 2-95 gal Cart, 2x month $ * * * 2-95 gal Cart, 1x week $ $ 2.50 $ 6.16 $ % -83.8% 6/1/ gal Cart, 2x week $ * * * 2-95 gal Cart, 3x week $ * * * 2-95 gal Cart, 4x week $ * * * 2-95 gal Cart, 5x week $ * * * 3-95 gal Cart, 1x month $ * * * 3-95 gal Cart, 2x month $ * * * 3-95 gal Cart, 1x week $ $ 5.00 $ 9.24 $ % -83.8% 6/1/ gal Cart, 2x week $ * * * 3-95 gal Cart, 3x week $ * * * 3-95 gal Cart, 4x week $ * * * 3-95 gal Cart, 5x week $ * * * 4-95 gal Cart, 1x month $ * * * 4-95 gal Cart, 2x month $ * * * 4-95 gal Cart, 1x week $ $ 7.50 $ $ % -83.8% 6/1/ gal Cart, 2x week $ * * * 4-95 gal Cart, 3x week $ * * * 4-95 gal Cart, 4x week $ * * * 4-95 gal Cart, 5x week $ * * * 5-95 gal Cart, 1x month $ * * * 5-95 gal Cart, 2x month $ * * * 5-95 gal Cart, 1x week $ $ $ $ % -83.7% 6/1/ gal Cart, 2x week $ * * * 5-95 gal Cart, 3x week $ * * * 5-95 gal Cart, 4x week $ * * * 5-95 gal Cart, 5x week $ * * * 95 gal Cart Extra Collection $ 6.88 $ yd Green Container, 1x month $ * $ * 3 yd Green Container, every other week $ * $ * 3 yd Green Container, 1x week $ $ $ $ % 6/1/ yd Green Container, 2x week $ $ $ $ /1/ yd Green Container, 3x week $ $ $ $ % 6/1/ yd Green Container, 4x week $ $ $ $ % 6/1/ yd Green Container, 5x week $ $ $ $ % 6/1/ yd Green Container Delivery Fee $ $ yd Green Container Extra Collection $ $ yd Green Container, 1x month $ * $ * 6 yd Green Container, every other week $ * $ * 6 yd Green Container, 1x week $ $ $ $ % 6/1/ yd Green Container, 2x week $ $ $ $ % 6/1/2012
10 EXHIBIT A Page 4 of 4 SERVICE DAILY RENTAL MONTHLY RENTAL CHANGE Effective Current Proposed Current Proposed Current Proposed Service Rental Date 6 yd Green Container, 3x week $ $ $ $ % 6/1/ yd Green Container, 4x week $ $ $ $ % 6/1/ yd Green Container, 5x week $ $ $ $ % 6/1/ yd Green Container Delivery Fee $ $ yd Green Container Extra Collection $ $ yd Green Container, 1x month $ * $ * 8 yd Green Container, every other week $ * $ * 8 yd Green Container, 1x week $ $ $ $ % 6/1/ yd Green Container, 2x week $ $ $ $ % 6/1/ yd Green Container, 3x week $ $ $ $ % 6/1/ yd Green Container, 4x week $ $ $ $ % 6/1/ yd Green Container, 5x week $ $ $ $ % 6/1/ yd Green Container Delivery Fee $ $ yd Green Container Extra Collection $ $ Yd Green Compactor - 1x week $ $ Yd Green Compactor - 2x week $ $ Yd Green Compactor Extra Collection $ $ yd Green Compactor, 1x week $ $ yd Green Compactor, 2x week $ $ yd Green Compactor, Extra Collection $ $ Yd Green Compactor - 1x week $ $ Yd Green Compactor - 2x week $ $ Yd Green Compactor Extra Collection $ $ Yd Green Compactor - 1x week $ $ Yd Green Compactor - 2x week $ $ Yd Green Compactor Extra Collection $ $ gal Glass Collection 1 x month $ 9.50 $ % 3/1/ Yd Glass Recycle Container 1 x month $ $ $ $ Yd Glass Recycle Container 2 x month $ $ $ $ Yd Glass Recycle Container 1 x week $ $ $ $ Yd Glass Recycle Container 2 x week $ $ $ $ Yd Glass Recycle Container 3 x week $ $ $ $ Extra 2 or 3 yd Glass Pick Up $ $ yd Box - Recycle $ $ $ 3.46 $ yd Box - Recycle $ $ $ 4.08 $ yd Box - Recycle $ $ $ 4.60 $ 4.60 * These services no longer being provided by Republic Services
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