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• Analysis <br />61 <br />o To properly and adequately assess issues of value and price, the City <br />engaged a reputable consultant, Foth Infrastructure & Environment, LLC, <br />("Foth") to compare the Proposal's prices with the current prices paid by <br />City residents, as well to compare the value of services with other cities in <br />the Twin Cities Metro Area that have moved from an open hauling system <br />to a contract system. Attached to this Memorandum is a July 1, 2014 <br />memorandum submitted by Foth providing these comparisons ("Foth <br />Memo"). City Staff reiterates that "value" reflects merely one of the <br />Priorities that the Council should consider. The increased amount of <br />analysis devoted to this issue, in comparison to other Priorities, is a result <br />of the inherent difficulty in performing truly accurate price comparisons in <br />general and the City's lack of easy access to information regarding other <br />cities' prices. City Staff encourages the Council to review and consider <br />the Foth Memo, with the understanding that "city to city comparisons are <br />an imperfect art" (Foth Memo, p. 7). With all of this in mind, City Staff <br />reinforces the following points: <br />City Staff does believe that many residents' bills will see a <br />decrease from current rates, although it is difficult to determine <br />exactly how much of a decrease because of the variance in <br />customer rates in the current open hauling system and the unclear <br />base price standards from which to determine any savings (Foth <br />Memo, pp. 5-7). <br />The Haulers have used as a standard their purported "current <br />market price" (Foth Memo, p. 6). The Haulers represented to City <br />Staff that this is derived from an average price currently charged <br />to customers, among all three haulers, factoring in market share. <br />The actual source of, or support for, this data was not provided to <br />City Staff. <br />The "current market price" conflicts with the rates represented to <br />the City in the Haulers' respective Garbage Hauler/Recycling <br />license application forms (Foth Memo, pp. 1-3, 5-7). City Staff <br />believes it is justified, however, to use as a standard of <br />comparison these reported numbers because they reflect total <br />rates charged (e.g., prices added to collector -imposed <br />surcharges) as required by City Code § 111.216(D), and no <br />further indication of a rate change has been submitted to the City. <br />City Code § 111.216(D): When the application is submitted, <br />the applicant must file with the City Manager a schedule of <br />proposed rates to be charged during the licensed period. <br />Every licensee must provide 14 -days' prior written <br />notification to the city and the licensee's customers of any <br />change in rates to be implemented during the licensed <br />period. <br />5 <br />