Agenda - Council - 09/25/1990 - Laserfiche WebLink

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CASE RECEIVE BIDS AND IMPLEMENT CITY-WIDE CURBSIDE RECYCLING PROGRAM By: James Gromberg, Project Manager and Sandra Ashley, Finance Officer Background: The Ramsey City Council authorized staff to advertise for bids for the City-wide Curbside Recycling Program. This program was developed to be in compliance with Anoka County's interpretation of the SCORE legislation and calls for bi-monthly curbside pick-up of glass, aluminum, newspaper and metal cans. Recycling containers for ail residents have already been purchased with funding available from Anoka County. To identify the cost of a service billing system, staff was directed to solicit bids from contractors based upon the contractors billing the residents directly and the City performing the billing service. The following table compares the bids received by the City on August 28, 1990: BIDDER MONTHLY COST PER HOUSEHOLD CONTRACTOR CITY BILLS BILLS RESIDENTS RESIDENTS Pretzel's Sanitation Ace Sanitation ' Waste Management of Blaine BFI Recycling Systems $3.25 $2.25 4.75 1.15 2.65 2.05 2.15 1.85 Low¢~[ Bi~Ider with Contractor Billing Residents: BFI Recycling Systems $2.15 Lowest Bidder with City performing the billing function: Ace Sanitation $1.15 Information, Observations and Pending Issues: Pending issues related to the curb-side recycling program are: 1. What revenue sources are available for the cost of the city-wide recycling program? 2. If residents are to be charged for this service, will the contractor bill residents directly or will the City perform this function? 3. How/when will the recycling containers and information be made available to each household? 4. A contract must be awarded to the lowest responsible bidder for implementation by October 1, 1990 5. The need for program coordination by City staff. What revenue sources are available for the cost of the city-wide recycling program? The City's Landfill Tipping Fee Fund currently has an undesignated balance of $646,000; the City-wide recycling effort could be funded from tipping fee revenue. Based upon the bids received, the annual expenditure for this program, without a household billing cost, would be $48,300 for the first year. As Ramsey continues to grow in number of households, this expenditure will also increase. Due to uncertain future tipping fee revenue, full city funding for this program could limit the City's resources for future programs or expenditures. Previous discussions have included revenue generated by billing resident households. For this reason, the cost of a billing service has been identified through the bidding process.