07-10-2024 Workshop Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of City Council FROM: Chris Heineman, City Administrator Laura Linehan, Community Relations Manager DATE: July 10, 2024 RE: Organized Collection and Recycling Contract ACTIONS TO BE CONSIDERED: Staff is requesting City Council direction regarding the city’s expiring organized collection and recycling contract. BACKGROUND: History of Organized Collection In reviewing historical records, it appears Ordinance No. 429, passed on January 24, 1996, established organized collection within the City of Little Canada. The ordinance within section 809.019 defines the purpose and intent starting with “It is the intent of the City Council of the City of Little Canada, by means of this ordinance, to establish a system of complete regular mixed municipal solid waste, recyclables, and yard waste collection throughout the City…” In reviewing records dating back to 2006, the City of Little Canada has utilized three waste haulers to provide organized collection for the city. Since 2006, there have been several renewals and agreements, including the most recent three-year extension for 2022, 2023, and 2024 with Republic Services, Waste Management, and Gene’s Disposal. Prior to the most recent three-year extension, staff met with the existing haulers (Republic Services, Waste Management, and Gene’s Disposal) to review and share concerns regarding the existing service levels provided, as well as discuss proposed rates. Additionally, the City Council Organized Collection Subcommittee was established to review those proposals and concerns. At that time, the consortium of haulers for the City of Little Canada submitted an initial proposal for a 3.5% Annual Price Adjustment which would result in a rate increase of 17.5% over the next five years. The City Council Subcommittee directed staff to negotiate with the consortium to reach a lower rate. The Subcommittee felt that unless a better option was provided, the city may be forced to issue a Request for Proposals (RFP) for a single-hauler contract. City staff contacted the consortium representatives and the haulers responded with a 2% annual price adjustment for a 3-year term (2022-2024). They consortium of haulers also proposed to include a clause to extend the contract an additional two years upon mutual agreement. The City Council agreed that the proposal, which totaled a 6% cumulative increase over the three years.