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Way sSCS &nada <br />MAYOR <br />Bill Blesener <br />COUNCIL <br />Jim LaValle <br />Rick Montour <br />Barbara Allan <br />John Keis <br />515 Little Canada Road, 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 />TO: Mayor Bill Blesener & Council Members <br />FROM: Joel Hanson <br />RE: Organized Collection Contract Renewal <br />After considerable discussion with the Haulers, I believe we have an agreement in principle. The key <br />points are as follows: <br />✓ Our rates will be five percent higher than North St. Paul's rates that are in effect on January 1St, <br />2007. <br />✓ The City may structure the rates in the manner we determine most appropriate to address tax <br />issues that are passed on to the residents. <br />✓ Our contract will adjust by 2.25% per year commencing January 1st, 2008. <br />✓ The contract term is five years. <br />✓ Single sort will start as soon as possible. Recycling rates will remain at current levels until <br />single sort is implemented. <br />✓ The City will take over billing (added to our water bills) <br />✓ No fuel surcharge for the first three years of the contract. In years four and five, a fuel surcharge <br />will be allowed if #2 diesel is $3.25 or greater per gallon, but the maximum impact will be one <br />percent (1 %). <br />✓ Bulky item collection will be added. The cost will be $1.00 per household per month. It will be <br />limited to three items per residence per year. (This will negate the need for clean-up day to a <br />large extent.) <br />✓ No clean-up day costs to be paid by the haulers. <br />✓ To address overcharges that have occurred since August of 2005, the haulers will continue to <br />provide free pick -up of city properties, and including Canadian Days. <br />I have attached a spreadsheet showing the current rates, North St. Paul's rates and our new rates and a <br />potential restructuring of the rates for comparative purposes. <br />Subject to any comments by the other two haulers (Gene's and Horrigan) and subject to the final <br />agreement draft that incorporates these items, staff recommends that the contract terms be approved in <br />concept by the City Council. <br />3 <br />