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FALCON HEIGHTS CITY COUNCIL MINUTES -2- June 22, 2005 Consideration of contract with E-Z Recyclin~ (continued) Administrator Worthington described the provisions of the contract that were changed or updated and they are outlined below: 1. Price: The City will pay $1.55 per unit/per month for single family recycling. This is 8 cents higher than the city's current rate of $1.47, and will remain in place over the five-year period of the contract. The City will pay $596.40 for multi-family buildings with 18 or more units. The multi-family rate represents the current rate paid by the city. 2. Items to be collected: Residents will be able to recycle all of the items they are currently recycling, including motor oil, batteries, glass, plastic, cans, paper and paperboard/cardboard. They will also collect clothing. 3. Dual-stream collection: This contract updates language in the previous contract to be consistent with current dual-stream collection practices. It retains the right of the city to have oversight in any collection changes in the future. 4. Transfer of Interest: This clause protects the city's contractual interests in the event of a transfer of ownership at E-Z, and requires the contractor to notify the city if a transfer of ownership occurs. It also requires that the city grant approval for any subcontracting prior to E-Z hiring subcontractors to provide recycling services. Liquidated damages: The contract requires E-Z to pay the following liquidated damages for service or contract violations: 1. Failure to respond to legitimate service complaints within 24 hours in a reasonable and professional manner: $50 per incident. 2. Failure to collect properly notified missed collections: $250 per incident. 3. Failure to receive City written approval of changes to the "Two-Sort" collection/processing system prior to implementing any such change: $1,000 The Environment Commission reviewed the contract and recommended the City Council approve it. E-Z's president, Chris Reinhardt, also reviewed the contract and is prepared to sign it. The City or E-Z can cancel this contract, with cause, by giving 60 days notice. A brief discussion followed. Lamb moved approval of the Agreement for Recycling Collection with E-Z Recycling, and that the mayor and city administrator be authorized to sign the five year contract on behalf of the City of Falcon Heights. The motion was unanimously approved. • z