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REQUEST FOR ACTION <br />TO <br />ITEM NUMBER <br />Mayor and City Council <br />4.2 <br />AGENDA SECTION <br />MEETING DATE <br />PREPARED BY <br />Consent <br />August 13, 2012 <br />Rebecca Haug, Environmental <br />Administrator <br />ITEM DESCRIPTION <br />REVIEWED By <br />Residential Garbage and Recycling Contract Renewal <br />Cal Portner, City Administrator <br />REVIEWED BY <br />Peter Beck, City Attorney <br />ACTION REOUESTED <br />Approve extending the contracts with Allied Waste and Randy's Environmental Services, Inc., to <br />continue providing collection services to Elk River residents. <br />BACKGROUND /DISCUSSION <br />Staff presented the proposed changes to the Residential Garbage and Recycling Contracts at the July 9, <br />2012, City Council work session. <br />The changes proposed include extending the contract from a 5 -year to a 10 -year contract, switching from <br />dual stream recycling to single stream recycling, garbage collection rate increases of 3% on the even - <br />numbered years starting in 2014, maintaining recycling rates for the next five years and a $0.25 increase in <br />recycling 2018 through 2022. <br />Despite the price increases, rates will remain the same through use of the cash balance in the Garbage <br />Fund. There are no resident rate increases projected for the next several years. Annual budget reviews <br />will determine when rates need to be adjusted. <br />Attached is a spreadsheet showing the city's rates as compared to other communities with organized <br />collection. Please note that fee structures vary for all cities as a result of costs related to in -house billing, <br />tipping fees, or requirements for disposal at an RDF facility. <br />In response to a Council question regarding contract bidding requirements, City Attorney Peter Beck <br />cited a 1977 Attorney General opinion and a 1988 Court of Appeals decision, that hauler contracts are <br />not subject to the public contracting law. <br />FINANCIAL IMPACT <br />Please see the attached spreadsheet <br />ATTACHMENTS <br />• Agreement for Garbage, Refuse and Recycling Collection <br />• City Survey Results <br />• July 9, 2012, Staff Report to the City Council <br />POWERED By <br />N: `,Public Bodies City Coitnal Council RCA Agenda Packet o8- 13 -2o12 Garbage contiact.doch A IRE <br />