Agenda Packets - 2023/03/03 - Laserfiche WebLink

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Residents using the 30 and 60 gallon service must contact the City's contracted hauler to arrange pickup of additional waste. In this case, the hauler sends the resident a bill for these additional items. The hauler will also collect appliances for an additional fee from all residents (including the unlimited service). For this service the hauler bills the resident directly for the additional charges incurred to their account. Residents also are provided with holiday tree pickup and brush pickup at no additional cost. Residents have the choice to subscribe to compost pickup for which they are billed directly from the hauler. The number of households currently subscribing to these services was reported to be 1,500. Some additional services are included in the contract for "free". The cost to the hauler for these services are actually likely covered in the base rate charged to residents for their collection service. In Blaine's contract, all the City buildings are serviced for no additional charge. Mankato Mankato has negotiated a base rate for MSW and recyclable material collection with Waste Management. The base rate for MSW collection is $2.89 per household and the base rate for recyclable material collection is $2.20 per household. This rate is paid to the hauler for all households served regardless of container size. Per the contract, these rates are increased on an annual basis by 75% of the Consumer Price Index (CPI) increase for the previous 12 months. Assuming an average 3% per year CPI increase, this equals $3.16 for MSW and $2.40 for recycling updated to 2008. The City pays for disposal directly. Waste Management does not pay the disposal bill. The rate paid to the hauler is significantly less than the rate residents pay to the City. Residents are charged $11.30 for the 35 gallon service and $12.65 for the 64 gallon service. The rates include the cost for MSW and recyclable material collection. Residents pay for recycling even if they do not participate in the service. As an incentive for residents to recycle, a prize ($100.00 in Mankato Area Chamber of Commerce "Chamber Bucks") is offered on a monthly basis. The recipient of the prize is drawn randomly from the group of residents that have recycled that month. This prize is provided by the hauler as outlined in the contract. Garbage that does not fit in the containers may be placed in 30 gallons bags next to the container. Each additional bag must be labeled with a tag that can be purchased at the local grocery stores for $2.00. These tags are supplied by the hauler. The $2.00 covers the cost for disposal of the extra MSW, $1.00 goes to the hauler and $1.00 goes to the City. The hauler receives the full amount for the purchase of these bags initially and then pays the City their portion on a monthly basis. Residents must contact Waste Management to arrange pickup of bulky waste. In this case, the hauler sends the resident a bill for these additional items. The base rate for both levels of service includes collection of leaves during the fall and holiday tree recycling. The hauler will also collect additional yard waste that is placed in 30 gallon bags sold by the hauler. Each bag costs $0.75. R - Analysis of Waste Collection Service Arrangements.doc Foth Infrastructure & Environment, LLC • 95 June 2009