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FC CASE <br /> <br /> RECYCLING CONTRACT <br />By: Jessie Hart, Finance Officer <br /> <br />Background: <br /> <br />The current two-year contract for the residential curbside recycling program with Ace Solid <br />Waste, Inc. is set to expire on December 31, 1997. <br /> <br />In May, 1995, the City requested proposals for the residential curbside recycling program. There <br />were only two companies that submitted proposals for the program. Based on that process, the <br />Council awarded a two-year contract to Ace Solid Waste, Inc. for the period of January 1, 1996 <br />to December 31, 1997, at a cost of $1.27 per household per month. <br /> <br />We have recently been informed [see attached letter from Ace] that it will be necessary to <br />increase the per household cost to $1.87 to accommodate a "poor" market for newsprint which is <br />making it necessary to warehouse the product longer and sell at a lower price. Even at a 60¢ <br />increase per household, this is still 71¢ less than the other company that proposed in 1995, who <br />bid $2.58 per household per month. <br /> <br />A copy of the current contract is attached to this case for reference. <br /> <br />Committee Action: <br /> <br />Recommend City Council to direct staff to prepare proposals for the provision of the curbside <br />recycling program for a minimum three-year contract; <br /> <br />or <br /> <br />Recommend City Council to direct staff to begin negotiating with the Ace Solid Waste, Inc. for a <br />two-year extension on the existing contract. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Finance Officer <br /> <br />Copies also distributed to: <br /> <br />Economic Development Coordinator <br /> <br />FC: 07/22/97 <br /> <br /> <br />