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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: July 19, 1996 <br />RE: Revision to Refuse Service Contract <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaVaile <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />As you know, we renewed the refuse service contract with our <br />haulers this past November. Effective June 1, Ramsey County <br />reduced their tipping fees charged to waste haulers from $50 per <br />ton to $38 per ton. It is anticipated that this lower rate will <br />stay in effect through 1996 and may continue for a longer period <br />depending on action by the Ramsey County Board of Commissioners. <br />When we negotiated the contract renewal, we provided for a number <br />of mechanisms to address areas of expense increases, but we did <br />not provide for reductions. Therefore, we have no legal basis to <br />ask our haulers to reduce the charges they impose upon our <br />residents other than to remind them that the contract will <br />ultimately renew again. <br />We have met with the haulers to discuss this issue. They <br />indicated a willingness to work with us on this matter. Their <br />information indicating the reduction in tipping fees translates <br />to approximately $1 per month savings in solid waste collection <br />fees. (This number has been confirmed by Ramsey County Solid <br />Waste Management.) However, the haulers also pointed out that <br />recycling revenues have dramatically declined in recent months <br />and are in fact generating an additional expense for disposal. <br />Our contract allows the haulers to pass onto our residents any <br />costs associated with the disposal of recycling materials. Based <br />on their analysis, they could request an increase in recycling <br />charges equating to .750 per month. Therefore, they are offering <br />us a .250 per month reduction to our residents for solid waste <br />collection. <br />Another option discussed was one where no reduction in charges to <br />residents occurs at this time in return for fixed charges (solid <br />waste and recycling) through November 30, 1998. While our <br />residents would initially pay more under this scenario, they may <br />save money over the long -term by not having increases associated <br />with CPI adjustments, fuel costs, insurance costs, recyclable <br />materials costs, and other factors which could come to bear over <br />Page 77 <br />