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FC Case REQUEST FOR AUTHORIZATION FOR A ONE YEAR EXTENSION TO THE RESIDENTIAL CURBSIDE RECYCLING CONTRACT WITH ACE SOLID WASTE, INC. BY: James E. Norman, City Administrator Chris Anderson, Community Development Assistant Background: In January of 2002, the City entered into a three (3) year contract with ACE Solid Waste, Inc. for the curbside collection of residential recycling. The contract included an option for a one (1) year extension. The current three (3) year contract with ACE Solid Waste, Inc. is set to expire on December 31, 2004. The following items are enclosed for your review: a) Letter from Mike Berkopec, ACE Solid Waste b) Copy of current recycling contract c) Proposed advertisement for residential curbside recycling proposals Observations: ACE Solid Waste, Inc. has been providing outstanding service to the City of Ramsey for many years. Mike Berkopec, from ACE Solid Waste, has submitted a letter to the City that outlines ACE's desire to continue providing recycling services for the City of Ramsey. ACE is interested in extending the contract for an additional year at the current rate of $1.88 per residence per month. ACE has not only provided great curbside service but has also been an integral part of our biannual recycling day events. It has been the City's past practice to solicit proposals for the residential curbside recycling service that the City of Ramsey provides to residents. However, State Statute does not require the City to obtain competitive proposals since it is a contracted service and not the purchase of "supplies, materials, equipment, or rental, thereof, or the construction, alteration, repair or maintenance of real or personal property." Recommendation: The Finance Committee may want to consider exercising the one (1) year extension with ACE Solid Waste or direct staff to obtain quotes from recycling haulers licensed in the City. The quoting process might attract additional bids that may or may not be lower than the current rate. However, the City does have at their discretion the ability to award a contract to a company that meets the best interests of the City. ACE Solid Waste moved to the City of Ramsey in the year 2000 and the Finance Committee might want to take into consideration the fact that ACE is a local business that has proven to be very viable and may want to take measures to promote a home-town business.