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Mayor & City Council <br />July 19, 1996 <br />Page 2 <br />the term of the contract. This option is somewhat of a gamble <br />for both the City and the haulers depending on what market prices <br />are for recyclable materials and how other business expenses are <br />impacted over the next 2 1/2 years. The advantage to residents <br />is that costs are stabilized for a 3 year period versus potential <br />periodic increases. <br />I would like direction from the Council as to how you would like <br />me to proceed with this matter. Based on your input, I will then <br />finalize negotiations with the haulers and prepare an amendment <br />to the contract to reflect the final outcome. <br />JRH:kpv <br />Page 78 <br />