HomeMy WebLinkAboutResolution 9896RESOLUTION NO.9896
CITY OF MOUNDS VIEW, MINNESOTA
RESOLUTION DIRECTING STAFF TO CONTINUE NEGOTATIONS WITH THE
CURRENTLY LICENSED HAULERS AND DIRECTING STAFF TO CONTINUE TO
CONVENE THE ORGANIZED COLLECTION OPTIONS COMMITTEE
WHEREAS, Minnesota Statutes, Section 115A.94 (hereinafter, the "Statute") authorizes the
City of Mounds View (hereinafter, the "City") to organize solid waste collection and creates a procedure
that cities must follow to do so; and
WHEREAS, on March 6, 2023, the Mounds View City Council (hereinafter, the "Council"),
directed City staff to proceed with the research and planning process for establishing an organized
collection system; and
WHEREAS, on April 26, 2023, the City notified the public and all currently licensed garbage
hauler (hereinafter, the "haulers") of its intent to consider organized collection; and
WHEREAS, on May 31, 2023, the City held three public engagement sessions regarding
organized collection to determine which services and other factors related to solid waste collection were
important to residents; and
WHEREAS, the City also conducted a survey of residents regarding organized collection to
determine which services and other factors related to solid waste collection were important to residents;
and
WHEREAS, on June 26, 2023, the City invited all haulers to a council work session for a "meet
and confer," at which time the Council and the haulers engaged in a discussion related to solid waste
collection issues, including but not limited to road deterioration, public safety, pricing mechanisms, and
contractual considerations unique to organized collection pursuant to the Statute; and
WHEREAS, on July 5, 2023 and again August 7, 2023, the Council held work sessions and
discussed the citizen survey results and the feedback from the haulers, which were open to the public
and anyone attending was permitted to address the Council; and
WHEREAS, on August 14, 2023, the Council held a public hearing and directed staff to begin
the mandatory 60-day exclusive negotiation period with the haulers, and outlined the priorities to guide
the negotiations; and
WHEREAS, on October 12, 2023, the City began negotiations and met with the haulers on at
least seven separate occasions on October 12, 2023, October 26, 2023, November 12, 2023, November
9, 2023, November 30, 2023, December 14, 2023, and January 4, 2024; and
WHEREAS, the City also provided opportunities for the haulers to meet in -person amongst
themselves after each meeting with the City; and
WHEREAS, in addition to the in -person meetings described above, the City repeatedly offered
to review written feedback and requested that the haulers, their representatives, and their legal counsel
provide such on a draft solid waste contract (the "Contract"); and
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WHEREAS, the Contract is substantially similar to other organized solid waste contracts
executed by other cities; and
WHEREAS, prior to the initiation of negotiations, the City, by letter, notified the haulers that
the deadline for a best and final proposal from the haulers was approximately January 11, 2024; and
WHEREAS, the City and the haulers met on January 4, 2024, at which time it was clear that the
haulers would not be prepared to make an offer by January 11, 2024; and
WHEREAS, on January 4, 2024, the City notified the haulers that it intended to create an
organized collection options committee pursuant to the Statute, so that, in the event an agreement is not
reached with the City and the haulers by its deadline, the City could move forward with organized
collection; and
WHEREAS, under the Statute, prior to issuing a request for proposals, the City is required to
establish an organized collection options committee to identify, examine, and evaluate various methods
of collection and appoint the members of the committee; and
WHEREAS, based on a subsequent request from the haulers, the City also extended the deadline
for a proposal from the haulers from January 11, 2024 to January 31, 2024; and
WHEREAS, on January 8, 2024, the City Council established an organized collections options
committee, which met on January 17, 2024, January 24, 2024, and January 31, 2024; and
WHEREAS, at the haulers' request, following the January 31, 2024 meeting, the City suspended
the organized collections options committee meetings; and
WHEREAS, the City and the haulers continued to negotiate and met on at least nine additional
occasions, January 11, 2024, January 18, 2024, January 25, 2024, February 5, 2024, February 8, 2024,
February 12, 2024, February 19, 2024, February 26, 2024, February 27, 2024, and March 5, 2024; and
WHEREAS, throughout the negotiation process, the haulers provided written feedback on the
City's proposed Contract on only two occasions months after the negotiations began, on February 7,
2024 and on February 19, 2024, and all other drafts reflecting the progress of the parties' discussions at
in -person meetings were provided by the City; and
WHEREAS, on February 26, 2024, the parties reached a tentative agreement on the Contract,
although the haulers explained that the agreement was tentative because some of their legal counsel had
not yet reviewed the Contract; and
WHEREAS, on the evening of February 26, 2024, the haulers sent a proposal for rates and the
method for rate increases to the City; and
WHEREAS, the Council scheduled a work session to discuss the proposal on March 5, 2024,
which had to be rescheduled to March 6, 2024 because Minn. Stat. § See 204C.03 prohibits Council
meetings on the day of the primary election; and
WHEREAS, on March 6, 2024, the City Council held a work session where it heard an update
on the negotiations from City staff and legal counsel and reviewed the price proposal, rate increase
proposal, and a comparison of that proposal to what is being paid by current Mounds View residents and
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what residents in other cities in the Twin Cities metropolitan area are paying under similar organized
collection systems; and
WHEREAS, the comparison showed that the haulers proposal would generally require the City's
residents to pay nearly twice as much for trash, recycling, and yard waste collection than the average of
the cities listed in the comparison; and
WHEREAS, a representative of one of the haulers was present at the work session, but no other
hauler representatives attended the session, provided written feedback, or otherwise contacted the
Council or city staff related to the meeting; and
WHEREAS, the representative addressed the City Council and was asked by the Mayor whether
the City had negotiated in good faith; and
WHEREAS, the representative answered that the City had negotiated in good -faith and also
provided further information and feedback; and
WHEREAS, the representative further indicated that the price offered by the haulers was not
their lowest price and that the haulers were willing to further discuss price and would consider a
counteroffer from the City; and
WHEREAS, the Council considered the counteroffer and directed staff to prepare a resolution
to terminate negotiations with the haulers and schedule further meetings with the organized collections
options committee so that the council could determine whether to issue a request for proposals for
collection services; and
WHEREAS, on March 11, 2024, the Council considered the above -referenced resolution to
terminate negotiations, but determined that it was in the best interests of the residents of Mounds View
for the Council to consider a "best and final" offer form the haulers and requested that the haulers
provided a best and final price no later than noon on March 21, 2024; and
WHEREAS, on March 11, 2024, the Council tabled the matter of adopting the resolution to the
Council meeting scheduled for March 25, 2024; and
WHEREAS, the Council also directed staff to convene the options committee to complete its
work; and
WHEREAS, the City further notified the haulers that the Council had tabled the resolution until
their next meeting on March 25, 2024, and reiterated its hopes of a best and final offer from the haulers
for the Council's consideration, and encouraged the haulers to look to the City of Blaine as an example
of the pricing they seek; and
WHEREAS, the City further notified the haulers that the Council gave them a deadline to present
the proposal to the City no later than 12:00 p.m. on March 21, 2024; and
WHEREAS, the City again offered to meet with the haulers and discuss options for ways to
adjust services or other terms to assist in reducing pricing, offered to share updated price comparisons,
and offered to schedule space for haulers to meet privately or jointly with the City; and
WHEREAS, the haulers requested space to meet on Monday, March 18, 2024, which the City
provided; and
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WHEREAS, the City held a meeting of the Options Committee on March 20, 2024; and
WHEREAS, the haulers submitted a letter to the City on March 20, 2024 indicating that "without
changes to the tentatively agreed upon terms and conditions of the underlying contract, there can be no
meaningful changes to price from us"; and
WHEREAS, it is currently 165 days since the City began negotiations with the haulers, which
is significantly beyond the 60 days of negotiation required under the Statute, but the Council continues
to seek a "best and final" price offer that is acceptable to the City;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Mounds View
directs staff engage in further negotiations with the haulers to produce better Contract terms or a better
price offer; and
BE IT FURTHER RESOLVED that the City Council of the City of Mounds View directs staff
to continue to negotiate in good faith toward a final written agreement that has been accepted by all
participating haulers which must be presented to the Council no later than May 13, 2024; and
BE IT FINALLY RESOLVED that the Council directs staff to convene further meetings with
the organized collections options committee so that the committee can issue a report on its research,
findings, and any recommendation to the Council, which will be necessary if the parties cannot come to
an agreement by May 13, 2024.
Adopted by the City Council of the City of Mounds View, Minnesota this 25th day of March,
2024.
AT'I"EST:
A�,, ) �/
Nyl i d, City Administrator
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