4L, Eureka Recycling Contract Extension

Home Browse Search

revenue share for several months. In Jun.e 2009, the City and Eureka Recycling amended the original contract due to a disagreement regarding the City's responsibility for pracessing fees that were not covered by the revenue share. The autcome of the amendment restructured the way the City was charged processing %es, expanded t�ie number of items that �lie City collected revenue share on, and added a provision that clarified what would happen if there were a sudden lack of market dern.and for a particular recyclable. The contract amendment did not extend Eureka's current contract or affect the renewal options available to the City. The City has received reveanue share from Eureka Recycling every month since tlie contract arri�ndment. Recycling maarkets have been steadily rising since their low point in January 2049. Revenue Share Currenily the City pays Eureka $3.06 per household monthly to collect recycling materials. Eureka, fn turn, processes the rz�aterials arid provides back to the City 50 percent of their after cost revenue £ar most materials. The revenue share is used to buy down the cost of the recycling s�rvice and directly lowers the cost per resident in the City. The cost of the recycling program is charged back to the residents through their property tax statements. This rneans fil�at the more the residents of Arden Hills recycle the more revenue is shared vv�th the City, which direct�y lowers the cost oithe service for the resid�nts. In March 2448, the City began its contract with Eureka. In nine months, the City received $16,$32.72 in revenue share, which bro�ght the cost of the Eureka Recycling service down to $2.00 per household. In 2009, because of ihe sit�ation with the recycling markets, the City did nat receive revenue share for the first six months. By year-end, the City had received $3,2I.5.35 in revenue share, which brought the cost of the recycling service dou� to $2.96 per household. Eureka did r�ot increase the cost of service from 2009 to 2a10, and so ihe base cost per household remained at $3.06. As o�November ofthis year, the City h.as received $15,535 in revenue share frorn Eureka. This amount has braught down the cost per household to $2.42. The recycling fee is anticipated to increase in 2011 to $3.13 per household or by 2.4 percent, which is an increase based on the consumer price index. Eureka Recvclin� The City's contract with Eureka Recycling has a.�so been environmentally benef cial to the Cit�. Eu�eka Recycling takes more types of material than any other service provider zn ihe metro area, and continues to work to expand the types of itezns that they collect While some recycling service providers provide only single sort recyclin.g Eureka maintains a dual-siream recycling program al�ovving more iiems to be recycled and increasing the quality of the materials coilected. Higher qua.lity rnaterials mean more revenue shared with �the City. Eureka �as found that participation rates among cities are jusi as high with a dual stream pick-up as with single sort. In City ofArden Hills City Council Meeting for Dece�nber 13, 20I0 1lMelro-inet.uslardenhtlls44dmin ICouncil44gendas & Packet Infarmaiion120l0112-13-10 RegularlPacket Information112-13-10 - Regular Meeting - Eureka Recyclrng Coniract - Memo. doc Page 2 of 4