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MOUNDS VIEW City of Mounds View Staff Report Item No: 8C Meeting Date: March 11, 2024 Type of Business: Council Business City Administrator Review: To: Honorable Mayor and View City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Resolution 9890 related to Organized Collection Negotiations Introduction: Council provided direction to staff at their March 6, 2024 workshop to draft a resolution to terminate negotiations with currently licensed haulers and schedule additional meetings of the organized collection options committee. The attached resolution memorializes that direction. Discussion: Negotiations with the currently licensed haulers ("haulers") began on October 12, 2023. Since negotiations began, the City has been focused on obtaining a price for organized collection. This desire stems from ongoing desire by City residents to compare their current bill to an organized collection bill before determining whether to support organized collection. Throughout negotiations, the haulers have indicated that the price is directly tied to the terms of the organized collection contract. For that reason, the City drafted a contract for the haulers' consideration and provided that draft to the haulers in November of 2023. In total, the haulers and the City have met 16 times. The City has produced 18 drafts of the contract. The City sent frequent emails to summarize meetings and offer to communicate outside of formal negotiation settings. The City sent such on the following 16 dates: 10/16/23, 10/23/23, 11/9/23, 11/16/23, 11/29/23, 12/14/23, 1/2/24, 1/4/24, 1/10/24, 2/8/24, 2/9/24, 2/12/24, 2/19/24, 2/21/24, 2/26/24, and 2/28/24. During meetings and in these emails, the City provided updates to encourage progress, summarized discussions, listed outstanding issues, and repeatedly offered to provide any assistance or accommodation requested by the haulers that would help negotiations progress. The haulers provided their first substantive written response to the draft on February 8, 2024, and received a second substantive response on February 19th. The parties reached a tentative agreement on contract terms on February 26t". The agreement is tentative because, as of February 26t", the haulers had not submitted the agreement to their attorneys for review. It is assumed by all the parties that an agreement on those remaining terms can be reached. On the evening of February 26, 2024, the haulers sent the City proposed pricing data and proffered price adjustment language, which are included in the Council packet. The parties met on the afternoon of February 271" to discuss the offer. The haulers were offered an opportunity to explain their offer. They did not provide any supporting documentation or explanation for how the offer was calculated. When questioned by the City, the haulers indicated that the price was not their last and best offer and that they remained open to negotiations. The City explained that it wanted the best and final offer, and that the City would consider any amended proposals the haulers submit. The City also explained that the Council would meet the week of March 4t" to DOCSOPEN\MU210\320\93 8225.v1-3/6/24 MU210\313\938517.v1