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ADDENDUM AGREEMENT TO SOLID WASTE FRANCHISE AGREEMENT THIS AGREEMENT, made and entered into this /I day of December, 1989, by and between the City of Moscow, a Municipal Corporation of the State of Idaho, hereinafter referred to as the 'CITY' and Latah Sanitation, Inc., an Idaho Corporation, hereinafter referred to as the 'FRANCHISEE', is an addendum to the Solid Waste Franchise Agreement entered into by the parties on the 5th day of January, 1987 and as amended on March 7, 1988. WITNESSETH: WHEREAS, the parties hereby agree to amend the Solid Waste Franchise Agreement in the following regards: 1. AMENDMENT OF EXHIBIT II. That Exhibit II, attached and made a part of this addendum, is hereby adopted by the parties to replace Exhibit II as amended on March 7, 1988. That the rates contained in the attached Exhibit II shall be the base rates established for the year 1990, and the rates upon which any future rate increases are based. These rates represent a change from Exhibit II of the amended agreement and from the 1989 rate resolution. 2. AMENDMENT OF EXHIBIT III. That Subsection 12.02 of Exhibit III of the original agreement is hereby amended to read as follows: 12.02 Modification to Rates a. The rates which may be charged by the FRANCHISEE as approved by the CITY for the second and subsequent years of the term hereof shall be adjusted upward or downward to reflect changes in the cost of operations, as reflected by fluctuations in the Producer Price Index as published in the Survey of current Business, as published by the U.S. Department of Commerce, Bureau of Economic Analysis, and the current regional cost of No. 2 Diesel fuel as quoted in the Oil Price Information Service as published by United Communications Group. The statistics utilized shall be for a one year period and shall be the unadjusted figures for the month of August for the Producer Price Index and of September for the cost of diesel as published in September and October respectively of each year. The rate modification date shall be January l of each year. Every year the rates shall be increased or decreased for the coming year in a percentage amount equal to 85% of the net percent of change in the Producer Price Index plus 10% of the net percent of change of the cost of NO. 2 Diesel fuel for the prior one year period ending in-SepŊelllheŋ. ---PAGE BREAK--- The percent of change in the Producer Price Index shall be computed as follows: The Producer Price Index for all commodities for the month of August for both the current year and the prior year shall be determined from the September issues of Survey of Current Business The difference between the two Producer Price Index figures should be determined by subtracting the earlier month figure form the more recent month figure. The difference shall be divided by the earlier month figure to determine the percent of change. The percent of change in the rate for No. 2 diesel fuel should be computed as follows: The average price for No. 2 diesel fuel effective on September 30 (for both the current year and the prior year) shall be determined from the Spokane, Washington, entry in the PAD 4/5 section of the Oil Price Information Service. The difference between the two figures should be determined by subtracting the September figure for the prior year from the September figure for the current year. The difference should be divided by the earlier month figure to determine the percent of change. The percentage rate to adjust the existing rates shall be calculated as follows: (percent of change of the Producer Price Index) (0.85) = x {percent of change in price of No. 2 diesel fuel) (0.10) = y (current rate) (l.00 + x + y) = new rate Section 12.02b through Section 12.02e of Exhibit III are not modified by this .ZIDDENDUM AGREEMENT. 3. REMAINING PROVISION UNAFFECTED. That all remaining provisions of the Solid Waste Franchise Agreement entered into by the parties on the 5th day of January, 1987 and as modified by Addendum Agreement on March 7, 1988, shall remain in full force and effect. 4. EFFECTIVE DATE. This Addendum Agreement shall be effective as of January 1, 1990. ---PAGE BREAK--- ATTEST: Elaine Rus5el;Cit:Y-c-lerk By Latah Sanitation, Inc. e If, nrV Presi ent ; By Gary Scott, Mayor ---PAGE BREAK--- EXHIBIT II AS AMENDED DECEMBER 18, 1989 EFFECTIVE DATE - JANUARY 1, 1990 SERVICE AREA I & II RESIDENTIAL & COMMERCIAL COLLECTION All residential rates are based on once a week unlimited pickup at curb line or service alley unless stated otherwise. All services provided within the City, including special hauls and compactor charges shall be billed by the City. Sororities and Fraternities shall be charged commercial rates. Any building which contains mixed residential and business units shall be billed as follows unless other arrangements are made acceptable to the City and the Franchisee. A. Manual container service - billing and service shall be at the one business rate for each individual business unit or residential unit. B. Mechanical container or compactor - billed at business rate for such equipment. Businesses using manual containers shall identify their containers by name and address or by using the City account number. Carry-out service shall consist of : A. Not more than two non-returnable plastic bags or, B. Two manual containers. Manual containers shall be returned curb-side. Each carry-out service producer shall provide the Franchisee with reasonably safe access to their solid waste container. If an alley precludes safe passage of a collection vehicle due to accumulation of snow and ice then collection service shall be done from the curb line of the street until such time as service can be resumed from the alley. The Franchisee shall notify the Daily Idahonian, and radio stations in the Moscow-Pullman area, when such conditions exist. EXHIBIT II; Page 1 ---PAGE BREAK--- The Franchisee shall provide the City on a basis with a full and complete record of the previous month 's service which shall be used by the City for billing purposes. Holiday collection schedules shall be published in the local newspaper (Daily Idahonian) by the Franchisee with a copy being provided to the City, at least five working days prior to the holiday. Changes in landfill hours or off ice hours allowed by this Franchise Agreement shall be published in the Local newspaper (Daily Idahonian) by the Franchisee when hours change. RATES FOR RESIDENTIAL UNITS, PER MONTH! Individual residential units, including mobile homes, duplexes, and apartments ea. unit Residential units with a business in the home Carry-out service Outside of building two bags or manual containers Inside of building two bags or manual containers Spring & Fall special weekend rate for extra service ea. unit ea. unit ea. unit cubic yard CURB-SIDE $ 6.56 $ 7.79 $ 8.98 $ 10.20 $ 4.49 Residential units utilizing mechanical containers or compactors shall be billed at the business rate for such equipment. RATES FOR BUSINESS UNITS Manual containers - 0 to 2 Additional bags or containers Loose yardage on ground (not fault of Franchisee) Compacted yardage Extra service for mechanical containers with 24 hr. notice Compactors: Yardage picked up at the business Roll-off service Plus/cubic yard Plus mileage one way EXHIBIT II; Page 2 ea. unit per yd. per yd. $ 6.56 per/m .85 ea. 6.06 6.45 13.80 ea. 6.45 cy 111. 35 + 1.67 cy 3.03 ---PAGE BREAK--- RATES FOR MECHANICAL CONTAINERS PER MONTH Con. Size Per Month TIMES PER WEEK by Yard Serv. Rate Rental Tax 1 2 3 4 5 6 1 yd. 14.19 . 71 16. 88 3 3. 75 50. 57 67.44 84.21 101.14 2 yds. 14. 74 . 73 30. 11 60.22 90. 31 120. 42 150. 47 180. 58 3 yds. 16.59 . 84 43.56 87.17 130. 74 174. 30 217. 86 261. 42 4 yds. 18.95 . 95 56. 29 112.57 168. 86 225. 1 6 281. 44 337. 7 3 6 yds. 21. 36 1.07 81.29 162.52 243.76 325. 00 406. 24 487. 13 10 yds. 44.24 2. 22 125. 24 250. 43 375. 69 500. 87 626. 06 751. 31 Producers who request that their mechanical containers be temporarily removed shall be charged the following rate for removal and re-delivery of the container: SERVICE AREA III $18. 05 ea. move SCHOOLS, INSTITUTIONS AND PUBLIC AGENCIES A. The commercial rate shall apply for schools, institutions and public agencies. B. The service level shall be adjusted to fit actual needs reflecting prolonged closures and vacations. The institutions shall be billed on actual use. SERVICE AREA IV RECYCLING PROGRAM Narrative of Proposed Service. A. Scope: Franchisee's resource recovery program is designed to aid, support, foster and otherwise encourage recycling, by providing collection and redemption of recyclable materials, promotion of recycling, and expansion of recycling service. B. Service: At a minimum, the Franchisee shall furnish at least one conveniently accessible recycling deposit box or building, to be located within the city limits, for deposit of recyclable materials by residents. Franchisee shall collect the deposited materials at least and as volume warrants. EXHIBIT II; Page 3 ---PAGE BREAK--- In addition, there will be at least one point within Latah County where residents may deposit and/or redeem recyclable materials. Hours of operation, redemption prices, and a listing of materials accepted at the site shall be displayed. currently, Franchisee operates a redemption site at 245 No. Jackson, Moscow, Idaho, which is open Tuesday through Saturday, from 9:30 a.m. to 5:30 p.m. Any change in the location or hours of this facility must be agreed to by the parties at least thirty days in advance of such change, Maintenance of deposit boxes, collection and processing equipment, and site building and premises in a reasonably good condition and appearance is the responsibility of the Franchisee. The redemption site satisfies the requirement of a drop box within the City of Moscow. C. Materials and Volume: Materials to be recycled include aluminum, other metals, glass, newsprint, high-quality paper, and cardboard, unless otherwise agreed by the parties. Franchisee will attempt to annually recycle a minimum of 640 tons of material within Latah County. Franchisee shall keep an accurate account of the type, kind, and amount of materials recycled and an accurate account of the income from sales of the materials. Franchisee shall submit such information to the Director on a quarterly basis. If Franchisee may be required to temporarily (i.e. for a period of not more that six months) discontinue redeeming specific types of recyclable materials, Franchisee must continue to accept that category of materials and will stockpile the materials until changes in market prices allow shipment unless otherwise agreed to by parties. Franchisee shall not permanently eliminate any category of recyclable material listed above unless agreed to between parties. D. Promotion: Franchisee agrees to cooperate with local civic or charitable organizations wishing to use recycling as a fund-raising activity. Franchisee also agrees to cooperate with local civic organizations which may be involved in the promotion of recycling. E. Fees: Franchisee shall dedicate the amount of three and one half percent (.035) of all revenues within Latah County to maintain Franchisee's resource recovery program. The Franchisee agrees that the City shall retain $10,000 of this recycling fee for the purpose of performing a recycling study. If the City directs that the Franchisee is to perform the study as described below, these monies will be released to the Franchisee. EXHIBIT II; Page 4 ---PAGE BREAK--- The Franchisee agrees that this $10,000 can be used by the City to have the study done by others. In the event that another organization or firm is contracted, directly or indirectly, by the City to perform this study, the Franchisee agrees to cooperate and support this contractor to the extent necessary to complete a quality study that utilizes all available information. This support shall include making available all records relating to recycling and staff assistance necessary to explain those records and the current recycling operations. The Franchisee shall, if directed by the City, cause a study to be performed by a recognized professional in the "Field" of the recylcing needs of the community of Moscow. This study shall survey the users of the collection system to determine desired recycling service levels. An analysis shall be made of alternative methods of delivering a recycling program which shall address the relative merits of curb-side recycling, drop-box recycling and other viable program delivery methods. This analysis shall include alternative sites for a recycling operation and an evaluation of the nature of materials to be recycled. The report shall identify the volume and nature of recycled materials, compare landfill value of the displaced volumes and project the indirect monetary value of the program as measued by the difference in the cost of recycling versus landfilling both domestic and commercial materials. Finally the report shall make specific programing recommendations for a near term and a long term recycling program for the community. This report will be complete by September 1, 1990. SERVICE AREA V LANDFILL ACCESS Franchisee shall provide for access to an acceptable landfill by city residents for disposal of solid waste for a consideration. Payments shall be made directly to landfill operator with no retainage or city fee applicable. Landfill Hours: April 1 to September 30: 7:00 a.m. to 6:00 p.m. October 1 to March 31: 7:00 a.m. to 4:30 p.m. 8:00 a.m. to 12:00 p.m. Closed Sundays and holidays. RATES FOR LAi.ŌDFILL ACCESS SERVICE: Household Solid Waste - No Charge (includes resident 's yard trimmings) Large Appliances & Furniture Vehicle Bodies EXHIBIT II; Page 5 Mon. - Sat. Mon. - Fri. Sat. $ 0.00 1.50 ea. 28.45 ea. ---PAGE BREAK--- Solid Waste ( unless rate specified elsewhere) Heavy Waste $ 4.45 up to 1/4 ton $ 8.80 1/4 - 1/2 ton $13.25 1/2 - 3/4 ton $17.55 3/4 - 1.0 ton $ 7.05 ea. addl. ton or portion thereof. for one ton or less rates for Solid Waste above. for each additional ton or portion thereof $ 3.50/ton When scales are inoperable, rates shall be based on yardage estimates. SERVICE AREA VI BULKY WASTE PROGRAM RATES SCHEDULE FOR BULKY WASTES Special hauls with pickup truck when requested by customer: Moscow - Friday From landfill to city Ea. 15 min. after first ( 0-15 min. ) (0-60 min. ) 60 min. $16.70 33.36 8.35 Special hauls with packer truck when requested by customer: Moscow - Monday - Friday From landfill to city Ea. 15 min. after first 60 Special hauls roll-off unit: ( 0-15 min. ) ( 0-60 min. ) min. Within five mile radius of landfill - one time Within five mile radius of landfill - exchange Rental - 22 yd. roll-off - per day (after the first five working days) One time charge - 30 yards Exchange - 30 yards - Rental - 30 yard roll-off - per day (after the first five working days) 29.54 59.09 14.80 139.43 122.52 7.24 188.73 166.02 7.24 Special haul rates shall be charged for collection and disposal of dead animals. Arrangements for special hauls shall be made with Franchisee. EXHIBIT II; Page 6 ---PAGE BREAK--- SERVICE AREA VII SMALL QUANTITY GENERATOR AND HOUSEHOLD HAZARDOUS WASTE COLLECTION PROGRAi.ōS SMALL QUANTITY GENERATOR-COLLECTION PROGRAM: Franchisee shall be responsible for keeping up to date on current rules and regulations relating to Small Quantity Generators (SQG's) of hazardous waste. Franchisee shall comply with all State of Idaho and Federal laws pertaining to SQG hazardous waste. Franchisee shall be responsible for developing and coordinating a program for the collection and disposal of hazardous waste produced by SQG's within the City of Moscow. Moscow's SQG program may be performed in conjunction with similar SQG programs throughout the county. A system shall be devised to keep record of waste disposed of by SQG's participating in Moscow's SQG program. Franchisee shall develop and organize public education programs, community seminars and advertisement, as needed, for Moscow's SQG program. Franchisee will share costs for education, seminars and advertising with the City of Moscow. SQG's may contact the Franchisee for information and regulations concerning the manifesting, removal and disposal of hazardous waste. Actual charges and methods of billing for handling, collection and disposal of hazardous waste may vary from year to year. Charges and methods of billing will be presented to the City of Moscow on a yearly basis and based on the SQG program for that particular year. SQG's producing hazardous waste shall be responsible for handling, collection, transportation and disposal for such wastes, plus any other charges not provided for herein. HOUSEHOLD HAZARDOUS WASTE/COLLECTION PROGRAM: Franchisee shall be responsible for keeping up to date on current rules and regulations relating to Household Hazardous Waste (HHW) . Franchisee will comply with all State of Idaho and Federal laws pertaining to HHW. Franchisee shall develop and coordinate a HHW Collection Program for the City of Moscow and will be considered the agency responsible for organizing community efforts in implementing a yearly program. Moscow's HHW program may be in conjunction with similar programs throughout the County. The Franchisee will devise a system to keep record of the amount of HHW disposed of by Moscow residents during HHW Collection Days. Franchisee shall develop and organize public education programs, seminars and advertising for HHW programs. Franchisee will share EXHIBIT II; Page 7 ---PAGE BREAK--- costs with the City of Moscow for education, seminars and advertising for Moscow's HHW Collection Program. Franchisee shall provide Moscow residents with information on regulations and disposal of HHW at the household level. Moscow residents may also contact the Franchisee for information regarding Moscow's HHW Collection Program. Franchisee shall donate reasonable time, labor and equipment to carry out Moscow's HHW Collection program. Funding for Moscow 's HHW Collection Program will not be the responsibility of the Franchisee, however the Franchisee will aid the City of Moscow with ideas and solicitation of funds, if necessary. Actual costs associated with a HHW Collection Program may vary from year to year. The Franchisee shall present estimated costs to the director on a yearly basis. SERVICE AREA VIII INFECTIOUS AND POTENTIALLY HARMFUL WASTE Franchisee shall handle infectious and special wastes consistent with all applicable regulations. Franchisee shall designate acceptable containers necessary for such waste and shall inform generators of container requirements. Franchisee must be given twenty-four (24) hours notice prior to pickup. That the rates for hazardous wastes and for infectious and potentially harmful waste shall be as follows: The actual cost for such service as billed by the Franchisee, plus 10% for administration and billing. EXHIBIT II; Page 8