5.4. SR 02-05-2007 - Laserfiche WebLink

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January 16, 2007 City of Elk River C/o Rebecca Haug 13065 Orono Parkway Elk River, MN 55330 Dear Ms. Haug, Thank you so much for all of your time and help over the last few months with the various issues we've been working on. This letter is to confirm and to officially request, on behalf of the Elk River Trash and Recycling haulers, an extension of the current contract for services and a slight price increase for 2008. On page 10, number 5 of the current Waste and Recycling Services contract it states that the City and Contractor will meet in November of each even numbered year to discuss "the terms of the Agreement, including the payment schedule outlined in Attachment 8, to determine if any adjustments are needed." When we met with you and the City Staff in November, we requested a modest price increase in an effort to help share in some of the significant cost increases we have experienced over the last 5-10 years (and in particular, the last 2 years). During the term of the current and previous contracts we have not requested or been granted any price increases. We have finally come to the point where one is necessary. In meetings and follow-up discussions with yourself, other Elk River City Staff, the City Attorney, and the Elk River Waste Haulers during November and December 2006, we agreed that the Elk River trash and recycling companies would voluntarily give-up any price increase request for the 2007 calendar year in exchange for a price increase for 2008 and an extension of the current contract. Given that verbal agreement, we would respectfully request a 2.9% price increase to the trash and recycling services rates for 2008 and an extension to the contract that would return the contract to the original 5-year term. We are currently in the 3rd year of that contract so it would effectively be a 2- year extension request. Since the current contract was signed in November 2004, the Consumer Price Index has seen a combined two-year increase of 6.8%. We view our relationship with the City of Elk River as a partnership, and therefore seek to share the costs of these significant increases.. . rather than ask that the City and citizens bear the entire cost. We are requesting a 2.9% increase, less than half of the 6.8%. With a 2.9% increase, the following rates would apply: Container Size 32 gallon bi-weekly 32 gallon 60 gallon 90 gallon Two 90 gallons Current Monthly Rate $ 9.10 $ 9.20 $ 9.30 $ 9.40 $10.50 Requested Monthly Rate $ 9.36 $ 9.46 $ 9.57 $ 9.67 $10.80 Please contact us with any questions you may have. We look forward to continuing our strong working relationship and are thankful for the partnership we have with the City of Elk River. Sincerely, TOVVl GVlOV(/jl!'v Tom Chovan Allied Waste Services 763-259-5569 JLVVl woLLsc'VlL(/jgev Jim Wollschlager Randy's Sanitation 763-972-4121