1A, Residential Curbside Recycling - Contract Discussion

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As of 01/07/08 paper fiber products, including: newspapers, boxboard, magazines, pop/beer boxes, mixed mail, catalogs, phone books, Kraft bags and corrugated cardboard. In addition, residents may place clean, reusable textiles out separately in plastic bags as outlined in Section 34 of this Agreement. Under this "dual stream plus" system design, processing shall also be by the categories as collected: paper separated from containers separated from textiles. The Contractor shall not make any changes to the dual stream collection or processing systems without written approval of the City. 6. Payment Terms The Contractor will invoice the City of Arden Hills on a monthly basis and the City will pay the contractor no later than net 30 days of receipt of the invoice. The billing system will include the following elements: 6.1 Compensation to Contractor. City agrees to pay Contractor$2.95 per residential dwelling unit per month in 2008 for weekly curbside collection, processing and marketing of recyclables. For 2008 the City certifies that there are 2,560 curbside units that will receive service. The City will notify the Contractor by Feb. 1 of each year what the certified number of curbside units will be for the subsequent year. The City agrees that prices for service will increase each year the Consumer Price Index for the Upper Midwest as determined by the Federal Reserve Bank of Minneapolis. The City will notify the Contractor by the last week of December what the compensation rate will be for the subsequent calendar year. 6.2 Materials Sales Revenue Share A composite credit for the following material sales revenue share: 6.2.1 All Paper Grades Paper prices shall be based on the Official Board Markets (OBM) "Yellow Sheet," Chicago region for Old Newspapers (ONP)# 8, high side of range. The Contractor shall pay the City 50% of this OBM index for all grades of paper collected after a processing fee of$75 per ton. 6.2.2 Aluminum Aluminum prices shall be based on the American Metal Market (AMM), Aluminum (1st issue of the month), high side nonferrous scrap prices: scrap metals, domestic aluminum producers, buying prices for processed used aluminum cans in carload lots, f.o.b. shipping point, used beverage can scrap. The Contractor shall pay the City 50% of this AMM aluminum index after a processing fee of$150 per ton. The Contractor shall provide copies of the referenced OBM market index and AMM market index with each monthly statement. The Contractor shall provide a detailed explanation of how the material splits are calculated to derive the paper and aluminum tonnage estimates. 7