10-25-2006 Council Agenda - Laserfiche WebLink

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et a z/e C°anaaa 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 www.ci.little-canada.mn.us MEMORANDUM TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator DATE: October 20, 2006 RE: Update on Organized Collection Contract Renewal MAYOR Bill Blesener COUNCIL Jim LaValle Rick Montour Barbara Allan John Keis ADMINISTRATOR Joel R. Hanson Staff has continued to negotiate with our Organized Collection Haulers relative to the renewal of our contract. Subsequent to our last Council discussion, staff learned that an error had been made in our previous comparisons with other communities. Specifically, we were using the rates North St. Paul charges its residents instead of the rate they are being charged by their Hauler (Allied Waste). Attached is an updated spreadsheet with a more accurate comparison. We have also added Blaine's rates to the comparison as Waste Management serves them. (Please note that the haulers are quick to point out that Blaine is the single Iarges organized collection contract in the state and North St. Paul has 3,540 household served by a single hauler versus our 1945 households served by four haulers.) You will note that we have been successful in lowering the charges proposed. The changes consist of the following: ✓ The City of Little Canada will take over billing of the customers. (We will add it to our quarterly utility billing.) This takes billing and collection away from the haulers and will increase their cash flow by having us pay them monthly versus bi-rnonthly under the current situation. We will also become the intermediary in billing questions. For taking on this responsibility, we will save $.55 per month per account. ✓ Recycling charge per month increased from the $2.38 proposed to $2.55. (This is really just a shift from collection charges to recycling due to the fact that the recycling portion of the bill is not subject to taxation. ✓ No fuel surcharge will be imposed for the duration of the contract. ✓ Beginning in 2008. the contract will be adjusted by the CPI for collection and recycling charges in lieu of the fuel surcharge. (Blaine and North St. Paul adjust by approximately 2.4% and 2.0% respectively.)