4L, Eureka Recycling Contract Extension

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are also incorparating forms of revenue share in their coniracts; however, ihe nature of the revenue sharing with these cornpanies is designed to share the risk of a dip in post consumer prices �rrith the cities they serve, as well as share in the revenue when prices are higher. Eureka's revenu� share program has a floor; whereby the City would never have to pay more t�an our basa cost if prices dropped again. The City o� Shoreview negotiated a new recycling contract with Allied Waste in August of 2010, whzch resulted in a seven percent increase in the cost of their recycling services. Similarly, the City of New Brighton negotiated a new contract with Allied Waste that resulted in a five percent increase in their service costs. The Ciiy of Maplewood vvent out for an RFP for recycling services this year as well and received six responses. Their current cantract with Eureka did not allow for an exten.sion of service. Maplewood found that Eureka'� bid price was 22 percent higher than their existing contracted price. Even with the increase in price Maplewood 5taff recommended Eureka after reviewing the other bids; however, the Maplewood Council chose another company based an their desire far single-sort recycling service as opposed io dual-sort. Roseville currently contracts with Eureka Recycling and is in the process of ext�nding �heir contract as well. As part af that process, Roseville went out for an RFP far recycling services; they had found that the lowest bid was 12 percent Y�igher than their existing Eureka Recycling contract and ihat the cost of recycling services had increased dramatically since their last RFP �iree years ago. While the Arden Hills and Roseviile contracts with Eureka a�e structured slightly di�ferently, Staff be�ieves that our current contract is very favorable compared with the cost of service from other providers. Staff is recommending the Ciiy Council approve both one-year extensions to the current Eureica Recycling con�ract. Re ues�ed Ac#ion Approve the renewal of the City's contract with Eureka Rec�cling �or curbside recycling services extending the current contract for ara ac�ditional two years. Attachments A. Eureka Recycling Contract and Amendment No. 1 B. Letter from E�reka Recycting dated July 30, 2d10 Crty ofArden Hills City Counczl Meeting for December 13, 2010 11Metro-rnet. uslardenhillsl�3drninlCouncrll�gendas & 1'acket Informatron12010412-13-1 D RegularlPacket Informaiionll2-13-10 - Regulat' Meetrng - Eureka Recycling Corrtraci - Memo.doc Page 4 af 4