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~ <br />~~HILLS <br />MEMORANDUM <br />FROM: <br />JamesLehnhoff, <br />CommunityDevelopmentDirector <br />ReviewtherecyclingcontractwithEurekaandprovidedirectiontostaffonapropercourseof <br />actionregardingthepaymentterms. <br />InJanuary2008,theCitysignedanewcontractwithEurekaRecyclingtoprovideresidential <br />curbsiderecyclingservicesfromMarch1,2008,toMarch1,2011.Thepreviouscontractwith <br />WasteManagementexpiredattheendofFebruary2008.ThecontractwithEurekaprovides <br />residentialcurbsiderecyclingservicestoallsinglefamilyhomes(Hunter'sParkcondos, <br />Parkshoreapartments,CottageVillas,andArdenManorcontractseparatelyforrecycling <br />services).Theprogramisfundedthroughanannualfeeincludedwiththepropertytaxstatement <br />andsupplementedbytheSCOREgrantfromRamseyCounty. <br />Thecontractincludesprovisionsforamonthlyfeeperhouseholdandforrevenueshare.A <br />recentandsteepdropinmarketpricesforrecyclablematerialshasbroughttolightadifference <br />betweenEurekaandtheCityonthepaymenttermsinthecontract. <br />Section6oftheEurekaContractdescribesthepaymentterms(page7ofAttachmentA).The <br />paymenttermsaresubdividedintotwoparts:6.1CompensationtoContractorand6.2Materials <br />SalesRevenueShare.Thefirstlineofsection6.1statesthe"CityAgreestopayContractor <br />$2.95perresidentialdwellingunitpermonthin2008forweeklycurbsidecollection,processing <br />CityofArdenHills <br />CityCouncilMeetingforMarch30,2009 <br />CC <br />P:IPlanninglRecyciingGarbagel2009\033009-Report-EurekaContractDiscussion.doc <br />Page1of4 <br /> <br />