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way a SS Wanda <br />MAYOR <br />Bill Blesener <br />COUNCIL, <br />Rick Montour <br />John Reis <br />Michael McGraw <br />Shelly Boss <br />515 Little Canada Roacl, Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson <br />www. ci.little- canada. mn. us <br />MEMORANDUM <br />TO: Mayor Blesener & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: December 16, 2011 <br />RE: Renewal of Organized Collection Contract <br />As you will recall, we gave tentative approval to a revised rate structure for the next five years (2012 <br />through 2016) with our haulers in our organized collection contract. Attached is the revised contract <br />document that incorporates the new rate structure as well as a number of other changes. Most of the <br />changes are definitional and deal with changes to state laws. Another revised the disposal language <br />given the uncertainty with disposal costs at the Refuse Derived Fuel facility after 2012. <br />The contractors will be reviewing this prior to Wednesday's meeting and 1'll provide their comments at <br />that time. You will also note that there are some formatting corrections yet to be made to the contract <br />document. We will have that done prior to execution. <br />A redlined copy is also available for review. 1 will e -mail that to each of you so you can attempt to track <br />the language changes. <br />Finally, staff has attached a rate comparison sheet showing 2011 and 2012 rates. You will note we have <br />decreased rates for next year, even after a $4 per ton increase to the tipping fees. The new rates make us <br />competitive with other organized systems of a similar nature. <br />As part of this recommendation, staff is recommending we increase the city billing charges (they are <br />part of the recycling charges on customer's bills) from $.50 per month to $.75 per month to more <br />accurately reflect increases in charges in terms of postage and staff time associated with managing this <br />contract. You will note that even with this increase, rates to customers are decreasing for 2012. <br />Should you have any comments or questions, please let me know. <br />1 <br />