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<br /> <br /> <br />REQUEST FOR COUNCIL CONSIDERATION <br /> <br /> <br />Meeting Date: August 25, 2020 <br /> <br /> <br />Organized Collection Contract Amendment <br />______________________________________________________________________________________ <br />OVERVIEW: <br />In front of you this evening an amendment to the agreement for residential solid waste and recycling <br />collection services. On April 1, 2015 the City entered into an organized refuse and recycling agreement <br />with Walter Recycling and Refuse, Republic Services and Waste Management.for five years. The <br />agreement permits three one-year extensions. At the November 26, 2019 City Council meeting, a one-year <br />extension to April 1, 2021 was approved. <br /> <br />Staff is recommending renewing the agreement for two years until April 1, 2023 with the same terms and <br />conditions except for the Yard Waste price. Current Yard Waste pricing is well below market pricing, to <br />the extent they are barely breaking even on the service today. Disposal costs for yard waste have increased <br />substantially since the first agreed to pricing in 2015. There is limited capacity in the metro area with three <br />processors used by all haulers to turn the yard waste into compost. With the programs growing across all <br />cities and limited processing, prices have reacted accordingly. <br /> <br />Because of this, the collectors are proposing a 2-step increase: <br />• For the 2021 season, the collectors are proposing a $9.81 annual increase from the current $79.19 to <br />$89.00. <br />• For the 2022 season, the collectors are proposing for a $5.00 increase to get to $94.00 for the <br />season. <br /> <br />Their request seems very fair and reasonable. In the market with both municipal contracts as well as open <br />subscription cities, pricing identified between our current three collectors as well as others ranges anywhere <br />from $90 on the low side to up to $140 per season. This proposed adjustment would still keep St. Anthony <br />on the very low end of the market but provide a little margin relief to the collectors. The contract <br />amendments have been reviewed and approved by the City Attorney. <br /> <br /> <br /> <br /> <br /> <br /> <br />79