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Resolution - 2015 - 15-20 - Increasing The Solid Waste Fee For Residential And Commercial Cutomers - 06/23/2015RESOLUTION No. 15-20 A RESOLUTION OF THE CITY OF EAGLE, IDAHO, INCREASING THE SOLID WASTE FEE FOR RESIDENTIAL AND COMMCERCIAL CUSTOMERS BY $0.12 PER MONTH, TO BE EFFECTIVE WITH THE NEXT REGULARLY SCHEDULED BILLING CYCLE FOLLOWING APPROVAL OF THE CITY, PURSUANT TO SECTION 2.2 OF THE SECOND ADDENDUM TO THE WASTE COLLECTION SERVICES CONTRACT BETWEEN THE CITY OF EAGLE AND ALLIED WASTE SERVICES OF NORTH AMERICA, LLC; AND PROVIDING FOR EFFECTIVE DATE. WHEREAS, Section 2.2 of the Second Addendum to Waste Collection Services Contract Between the City of Eagle and Allied Waste Services of North America, LLC allows for adjustments to customer rates "...in the event of uncontrollable costs, including, without limitation, revised laws, ordinances or regulations, tax or franchise fee increases, or disposal cost increases" provided that Allied Waste ( "Republic Services ") provides written documentation of such increased costs and the rate increase is demonstrated to be reasonable; and WHEREAS, the Idaho Legislature passed two (2) bills in the 2015 legislative session, HB 132 and HB 312, which repeals the Gaseous Fuels Permit System and increases the State Road Tax from $0.25 /gallon to $0.32 /gallon for all fuels, respectively, both of which will be effective July 1, 2015; and WHEREAS, Republic Services has provided written documentation to the City of the financial impacts of the 2015 legislation, which constitutes an annual incremental tax increase of $11,376 per year; and WHEREAS, Republic Services has requested a rate adjustment of $0.12 per month for residential and commercial customers to offset the uncontrollable cost increases described above, which rate increase is less than five percent (5 %) of current rates; and WHEREAS, the City Council finds that the requested rate increase of $0.12 per month for residential and commercial customers is reasonable. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF EAGLE, IDAHO: Section 1: That the Solid Waste Fee for residential and commercial customers of Republic Services is increased by $0.12 per month, effective with the next regularly scheduled billing cycle following approval of this Resolution. Section 2: That this Resolution shall be in full force and effect immediately upon its adoption and approval. RESOLUTION NO. 15 -20 Page 1 of 1 ADOPTED by the Eagle City Council, Eagle Idaho. This day of June, 2015. APPROVED: AJ [JAMES D. RE S 'MAYOR ATTEST: CITY CLERK RESOLUTION NO. 15 -20 Page 2 of 2 OF &4 ��T Cod X SEAL �'j,•,aNn�� //O �. OF i�P•a•. �R"':� REPUBLIC SERVICES We'll handle it from here. Jim Reynolds, Eagle Mayor Stan Ridgeway, Eagle Council President Mary McFarland, Eagle City Council Mark Butler, Eagle City Council Jeff Kunz, Eagle City Council Eagle City Hall 660 E. Civic Lane Eagle, ID 83616 Dear Mayor Reynolds and Eagle City Council, June 12, 2015 There is a significant cost associated with the changes in law, resulting from the passing of Idaho House Bills 132 and 312, which will be effective July 1, 2015. The Idaho State fuel tax will be increasing from $0.25 to $0.32 per gallon, and the gaseous fuels permits, which we currently purchase for our CNG trucks from the Idaho State Tax Commission for less than $300 per truck per year, will no longer be available. Natural gas will be taxed at the same rate as gasoline or diesel: $0.32 per gallon equivalent. The financial impact of the incremental tax increases (diesel and natural gas) under the current contract will be roughly $948.03 per month or $11,376 per year ($10,204 on natural gas, $1,172 on diesel). Section 2.1 of the SOLID WASTE COLLECTION SERVICES CONTRACT BETWEEN EAGLE AND ALLIED WASTE SERVICES OF NORTH AMERICA, LLC, anticipates such changes in law and allows the CONTRACTOR to request pass- through reimbursement from the City. Republic Services respectfully requests to increase solid waste fees for Eagle residents and businesses by $0.12 per month, effective July 1, 2015 to cover the incremental state tax increase of $11,376 per year. Attached you will find support for our request. Please let us know if you have any questions. Sincerely, Dave Fisher General Manager, Republic Services 208 - 863 -4858 dfisher @republicservices.com a� c rp U x ru F=7= Q) ru Ln 0 N n� W fu c sfo L fu W 'V' u Jc () U. fu M T--1 C) N O ,--1 � y cc W W IL PIP 11a;4 N G -C (1) a-J L- fa LU o 0 CL U) c L Q (1) o rr�� V l fa V1 U) - o M -0 o Q Q .3 O •c 0 -0 Q E a cu 0 m i6 � (Q C: o U') o .- W . E � L Q Q 0 o C: V) fu Z fu c ~ I U- i p---I N =3 N . 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