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City Council Regular Meeting Minutes July 8, 2014 Page 8 1 Councilmember Roth asked if all communications to residents would be uniform and if the City 2 would handle distribution of these communications. 4 City Manager Casey stated it is the City's desire to have uniform communications and at this 5 time, the City would incur that cost and work with the haulers on communications. 6 7 Councilmember Gray requested comment about the gap in price between the proposal and the 8 comparison of other city's prices prepared by Foth. 10 Councilmember Jenson asked if the City would need to add additional staff. 11 12 City Manager Casey replied that further analysis will need to be done regarding additional staff 13 and further information will be presented to the City Council on this issue and added that the 14 City has the infrastructure in place as far as the billing system. 15 16 Mr. Dan Krivit, Senior Project Manager at Foth, stated that the FTE cost is estimated at $1.74 17 and noted that they made some assumptions when preparing the memo in terms of billing 18 administration and the pass through to residents, adding that cities that handle the billing also 19 handle delinquent accounts. He stated the public education and awareness component would be 20 shared but a good portion of this would be the City's responsibility and that is built into the 21 rough calculation of .5 FTE. He advised that the other city's contract prices were obtained 22 through a competitive RFP process and the haulers' proposal is largely based on current prices in 23 an open system. 24 25 Mr. Rich Hirstein approached the City Council representing Allied Waste as well as Walters and 26 Waste Management and stated the haulers would like to point out that they believe they can 27 handle some of the administrative duties more efficiently than the City without adding any FTE 28 and they believe the $1.74 estimate would be far less. He stated they fully intend to pay for and 29 distribute the public education materials and to have these materials all look the same so it looks 30 like it comes from the City. He stated they also intend to have the hauler's telephone number on 31 any communication so the City does not have that burden. He indicated they reviewed prices for 32 each hauler's small, medium, and large containers and averaged that price then lowered it by 33 25%. He added that the haulers did not know how to divide up the service for special events so 34 they decided to take that outside of the contract and have a bid process for that service to get the 35 best price and avoid any conflict. 36 37 Councilmember Stille asked if the proposal reflects the haulers' administrative costs. 38 39 Mr. Histein replied in the affirmative. 40 41 Mayor Faust stated the City's goal is not to take any business away from anyone and to move 42 forward on the City's sustainability efforts and maintain the City's investment in its 43 infrastructure, as well as to recognize there are some synergistic efficiencies to be realized in an 44 organized collection system. He stated the City Council intends to do what is best for its 45 residents while remaining sensitive to the haulers and the service they provide. He stated he was 46 concerned about the length of the initial contract especially given the escalators in the contract 47 that does not provide any room for negotiating and felt that the City should undertake a little 48 more work before taking action on the agreement.