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STAFF REPORT <br />TO: Mayor Fischer and Members of City Council <br />FROM: Chris Heineman, City Administrator <br />Laura Linehan, Community Relations Manager <br />DATE: December 18, 2024 <br />RE: Resolution of Approval for a Contract with Allied Waste Services of North <br />America, LLC dba Republic Services of the Twin Cities for refuse services <br />(trash, bulky, and yard waste) and a Resolution of Approval for a Contract <br />with Waste Management of Minnesota INC for recycling services. <br />ACTIONS TO BE CONSIDERED: <br />Consider a contract for organized collection with Allied Waste Services of North America, LLC <br />dba Republic Services of the Twin Cities for refuse services (trash, bulky, and yard waste) and <br />consider a contract for organized collection for recycling services with Waste Management of <br />Minnesota INC. <br />BACKGROUND: <br />History of Organized Collection <br />In reviewing historical records, it appears Ordinance No. 429, passed on January 24, 1996, <br />established organized collection within the City of Little Canada. The City of Little Canada has <br />utilized a consortium of three waste haulers for organized collection since 2006. There have been <br />several contract renewals since that time, including the most recent three-year extension for 2022 <br />thru 2024 with Republic Services, Waste Management, and Gene’s Disposal. <br />Prior to the most recent three-year extension, staff met with the existing haulers (Republic <br />Services, Waste Management, and Gene’s Disposal) to review and share concerns regarding the <br />existing service levels provided, as well as discuss proposed rates. Additionally, the City Council <br />Organized Collection Subcommittee was established to review those proposals and concerns. <br />At that time, the consortium of haulers for the City of Little Canada submitted an initial proposal <br />for a 3.5% Annual Price Adjustment which would result in a rate increase of 17.5% over the next <br />five years. The City Council Subcommittee directed staff to negotiate with the consortium to <br />reach a lower rate. The Subcommittee felt that unless a better option was provided, the city may <br />be forced to issue a Request for Proposals (RFP) for a single-hauler contract. <br />City staff contacted the consortium representatives and the haulers responded with a 2% annual <br />price adjustment for a 3-year term (2022-2024). They consortium of haulers also proposed to <br />include a clause to extend the contract an additional two years upon mutual agreement. The City <br />Council agreed that the proposal, which totaled a 6% cumulative increase over the three years.