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<br /> <br />rei ---\) <br />( )j <br />!11l <br /> <br />e <br /> <br />e <br /> <br />2. <br /> <br />ITEM 6. 1. <br /> <br />TO: <br /> <br />MAYOR & CITY COUNCIL <br /> <br />FROM: <br /> <br />GARY SCHMITZ, RECYCLING COORDINATOR <br />/ZONING ASSISTANT <br /> <br />DATE: OCTOBER 25, 1993 <br /> <br />SUBJECT: RENEWAL OF GARBAGE, REFUSE, AND <br />RECYCLING CONTRACT <br /> <br />On November 1, 1993, the City of Elk River's contract for <br />garbage, refuse, and recycling collection will expire. City <br />staff has negotiated a new contract with the refuse haulers <br />which is very similar to the original three-year contract. <br />Attached is a copy of the new hauler contract. I have <br />highlighted the areas where proposed changes have occurred. <br />Overall, most of the changes are somewhat minor with the basic <br />services not changing. Please keep in mind that the last rate <br />increase occurred in July, 1992. The new contract will not <br />require the rates to increase. <br /> <br />The two most noteworthy changes are as follows: <br /> <br />1. <br /> <br />Tippinq Fee Increases or Decreases The new contract <br />addresses increases or decreases in the tipping fees <br />charged at the RDF Plant in Elk River. The original <br />contract only allowed a rate adjustment due to a ten <br />percent or more aggregate increase or decrease in the <br />tipping charges. The new contract, on Page 11, proposes <br />an automatic increase or decrease in the rates reflecting <br />upon increases or decreases in the tipping fee. It is <br />staff's opinion that the majority of the people can accept <br />a rate increase if you can show that a fixed cost such as <br />a tipping fee has increased. It is important to mention <br />that tipping fees for eastern Sherburne County are not <br />expected to increase in 1994. The tipping fee for eastern <br />Sherburne County is established by Sherburne County. <br />Attached is an article from the Star Tribune dated <br />October 11, 1993, which shows that tipping fees in the <br />metro area might actually decrease throughout the next few <br />years. Designation ordinances established by counties <br />require haulers to take their waste to specific sites. <br />Designation ordinances are being challenged by refuse <br />haulers throughout the state. If designation is <br />considered unconstitutional, metro haulers would have the <br />ability to haul their waste to outs tate approved landfills <br />which have lower tipping fees. This would force metro <br />counties to lower their tipping fees to be more <br />competitive. <br /> <br />Cost of Livinq Increase - Another issue involves a cost <br />of living increase. Two out of three years, the refuse <br />haulers received a partial cost of living increase. Staff <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />