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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 484 -2177 / FAX: (651) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: November 17, 1998 <br />RE: Increase in Organized Collection Solid Waste Rates <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Please find enclosed a request from our four organized collection haulers for a 1.5% rate <br />adjustment to monthly solid waste collection rates to be effective January 1, 1999. As indicated <br />in the memo from the haulers, our contract with them, as amended October 23, 1996, provides <br />for an increase in monthly collection fees which is governed by a corresponding change in the <br />Consumer Price Index (U.S. City average -all items) during the 12 month period immediately <br />preceding January 1st. Documentation of the 1.5% increase in this index has been provided and <br />verified. <br />The haulers initially asked for a 5% increase in the monthly rate. They did provide justification <br />for that increase based upon increasing salary costs. When we reminded them of the contract <br />provision, they agreed to the adjustment as indicated above. You should also note that this <br />increase is not applied to the cost of disposal included in the overall rate. Therefore, the actual <br />monthly adjustment is less than the 1.5% figure stated. (It averages around 1 %.) It should also <br />be noted that recycling fees will remain the same. If approved, the rates would change as <br />follows: <br />Low volume bag service <br />30 gallon <br />60 gallon <br />90 gallon <br />150 gallon <br />Recycling Fee <br />Current Rates <br />$2.75/bag <br />$8.45/mo. <br />$10.00 /mo. <br />$12.18/mo. <br />$14.90/mo. <br />$2.00 /mo. <br />Revised Rates <br />$2.75/bag <br />$8.55/mo. <br />$10.11 /mo. <br />$12.30/mo. <br />$15.03/mo. <br />$2.00 /mo. <br />This is the first increase in rates in two years. You may recall that we had a rate decrease in <br />1997 due to the dramatic reduction in tipping fees ($50 a ton to $38 a ton) enacted by the County <br />that was necessary to ensure local haulers were not disadvantaged by disposal charges at the <br />Page 20 <br />