Agenda - Council - 10/13/2020 - Laserfiche WebLink

Home

CC Regular Session 7, 4, Meeting Date: 10/13/2020 By: Chris Anderson, Community Development Information Title: Adopt Resolution #20-225 Approving New Curbside Recycling Contract with ACE Solid Waste, Inc. Purpose/Background: The City is in the final year of a three (3) year contract with ACE Solid Waste for curbside collection of recyclable materials. The current contract will expire on December 31, 2020. In March of this year, the Environmental Policy Board (EPB) reviewed the options available to the City regarding recycling service (negotiate an extension or new contract with ACE, prepare a Request for Proposal [RFP], or migrate to an open hauling system) and recommended that the City attempt to negotiate an extension or new contract with ACE Solid Waste. Subsequently, the City Council reviewed this topic in May and directed Staff to proceed with negotiations with ACE Solid Waste on a new curbside recycling contract. The purpose of this case is to consider approving a new curbside recycling contract with ACE Solid Waste, Inc. Observations/Alternatives: The City of Ramsey and ACE Solid Waste have been working together since 1990 to provide curbside recycling service for residential properties. Over this span of time, there have been some major changes in recycling such as expansion of acceptable materials (and now, some reduction of acceptable materials), collection systems (went from dual sort to single sort), and pricing. In 1990, the monthly rate per household was $1.15 per month. In 2008, the contractually agreed upon price was $2.95 per household per month. The monthly per unit fee has remained constant at $2.95 since that time (span of 12 years). ACE has proposed a 7-year contract (2021 through 2027). The proposed curbside recycling contract does include a per unit monthly fee increase beginning in 2021. The proposed rate in 2021 and 2022 is $3.75, with the subsequent years having an automatic increase on the 1st of each year. The proposed rates for a 7-year contract are outlined below: Year JLI Rate 2021 i $3.75 L 2022 lE $3.75 2023 ir $3.98 r 2024 lE $4.10 2025 lE $4.22 T 2026 IIIL $4.34 L 2027 lE $4.45 % Change 27.12% 0.00% 6.13% 3.02% 2.93% 2.84% 2.53% ACE Solid Waste would prefer a 7-year contract. However, If the City Council is more comfortable with a shorter duration contract, ACE has agreed to the following pricing structure for a 5-year contract: 5-year contract TLYear �— Rate -� % Change 2021 7�$3.75 � 27.12%