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Item No: 8C MOL--NDS VIEW Meeting Date:August u 2024 Type of Business: Council Business City Administrator Review: City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nyle Zikmund, City Administrator Item Title/Subject: Organized Trash Collection Resolution 9965—Approving Contract with LRS of Minnesota LLC for Residential Solid Waste and Recycling Collection Services. Introduction: Council has been exploring/moving forward with Organized Solid Waste Collection since the adoption of Resolution 9714 at their March 27, 2023 Council Meeting. On September 11, 2023 Council adopted Resolution 9794 establishing an Exclusive Negotiation Period for Organized Trash Hauling. On January 8, 2024 the Council adopted Resolution 9859 establishing and Organized Trash Collection Options Committee. On March 25, 2024 Council adopted Resolution 9896 terminating negotiations with the haulers, reconvening the organized collection options committee, and ordering staff to begin drafting an RFP for Organized Trash Collection. At their May 13, 2024 Council adopted Resolution 9923, authorizing a Request for Proposals for Organized Trash Collection. On July 8, 2024 Council adopted Resolution 9953 accepting recommendations of the RFP review committee and staff and authorizing staff to negotiate with LRS in an attempt to come to a final agreement. In the event negotiations were unsuccessful with LRS, staff was directed to negotiation with Aspen. Discussion: Staff has held numerous discussions with LRS since authorization from Council and now brings forth the draft contract as a result of that work. Using resident trash bills collected as part of the exploration, staff can state that the draft contract will allow most residents to realize significant savings. Using the recycling price as an example, bills collected ranged from a monthly fee of $10.18 on the low end to $23.51 on the high end. The proposed contract monthly price for recycling is $5.50. This represents a savings of nearly 45% for the lowest rate and more than a 400% savings for the highest rate. For 95 gallon totes the collected bills ranged from $21.03 to $42.78 per month. The negotiated monthly price for a 95-gallon cart is $15.65. Similarly, substantive savings on the trash tote as there is to recycling. Further, the negotiated contract does not include additional fees that are currently commonly charged to Mounds View Residents, such as fuel surcharges. These charges/fees placed on trash bills — taxable and non-taxable, are not taxes collected by the hauler and forwarded/transmitted to a government agency; rather they remain with the hauler that imposed them. These types of fees will only be charged if there is a significant change in law or circumstances that increases the cost of providing services to Mounds View— and then only if the City agrees to them. The only two taxes/fees that Mounds View residents will pay are the MNTWC — Minnesota Tax on Waster Collection MU210\313\968781.v1