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AGENDA ITEM – 1B City of Arden Hills City Council Work Session Meeting for December 15, 2014 P:\Planning\Recycling & Garbage\2014\RFP_Recycling Services\CC WS Packet_(12-15-14) Page 2 of 4 Prices for four service options were requested in the City’s request for proposals (RFP) for both three (3) year and five (5) year contract terms: • Option 1 – Every other week (EOW), City-owned carts • Option 2 –Weekly, City-owned carts • Option 3 – Every other week (EOW), Contractor-owned carts • Option 4 – Weekly, Contractor -owned carts The lowest priced respondent was Republic Services in both the three (3) and five (5) year contract terms. As recommended by the review team, the five (5) year, weekly service (Tuesday/Wednesday Schedule), City-owned carts scenario is shown (price estimates were in order of lowest to highest, after revenue sharing, rounded to the nearest $1,000): • Republic = $415,000 over five years o $3.03 /month/ household • Walters = $653,000 over five years o $4.32 /month/ household • Tennis = $665,000 over five years o $4.42 /month/ household • Eureka = $793,000 over five years o $5.65 /month/ household • Waste Management = $916,000 over five years o $6.11 /month/ household Note: The cost for the contractor’s portion of recycling services to residents under the existing contract with Eureka Recycling is $3.27 per month per household for weekly service with recycling bins. The new service to residents would be $3.03 per month per household for weekly service with recycling carts. As noted, these figures only reflect the amount due to the contractor for each month of service per household. For the total cost to residents per month/year the cost of the cleanup day events and administration must be added. In 2015, the total cost to residents for the complete recycling program is $3.92 per month or $47.00 per year. That breaks down to $3.27 for the contractor’s services and $0.65 for cleanup day and administration expense. Recycling Carts As the Council is aware, staff is in the process of applying for a Public Entity Innovation Grant (PEIG) through Ramsey County for residential recycling carts. It is our understanding that PEIG grants are typically awarded up to $100,000 for the purchase of recycling carts. However, the City is applying for $125,000 to cover the entire cost for the transition to recycling carts. If the City only receives a PEIG in the amount $100,000 for the purchase of recycling carts the City would then need to use the reserves within the recycling fund or raise the current rate for