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02-23-15-R
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02-23-15-R
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ARDEN HILLS CITY COUNCIL WORK SESSION – DECEMBER 15, 2014 2 <br /> <br />residents. The discussion and review led to the recommendation that a five (5) year contract with <br />weekly service and City-owned carts be entered into with Republic Services. <br /> <br />City Planner Streff commented that prices for four service options were requested in the City’s <br />request for proposals (RFP) for both three (3) year and five (5) year contract terms: <br /> <br />• Option 1 – Every other week (EOW), City-owned carts <br />• Option 2 –Weekly, City-owned carts <br />• Option 3 – Every other week (EOW), Contractor-owned carts <br />• Option 4 – Weekly, Contractor -owned carts <br /> <br />City Planner Streff explained that the lowest priced respondent was Republic Services in both <br />the three (3) and five (5) year contract terms. As recommended by the review team, the five (5) <br />year, weekly service (Tuesday/Wednesday Schedule), City-owned carts scenario is as follows <br />(price estimates were in order of lowest to highest, after revenue sharing, rounded to the nearest <br />$1,000): <br />• Republic = $415,000 over five years o $3.03 /month/ household <br />• Walters = $653,000 over five years o $4.32 /month/ household <br />• Tennis = $665,000 over five years o $4.42 /month/ household <br />• Eureka = $793,000 over five years o $5.65 /month/ household <br />• Waste Management = $916,000 over five years o $6.11 /month/ household <br />City Planner Streff noted that the cost for the contractor’s portion of recycling services to <br />residents under the existing contract with Eureka Recycling is $3.27 per month per household for <br />weekly service with recycling bins. The new service to residents would be $3.03 per month per <br />household for weekly service with recycling carts. As noted, these figures only reflect the amount <br />due to the contractor for each month of service per household. For the total cost to residents per <br />month/year the cost of the cleanup day events and administration must be added. In 2015, the total <br />cost to residents for the complete recycling program is $3.92 per month or $47.00 per year. That <br />breaks down to $3.27 for the contractor’s services and $0.65 for cleanup day and administration <br />expense. <br /> <br />City Planner Streff stated that staff is in the process of applying for a Public Entity Innovation <br />Grant (PEIG) through Ramsey County for residential recycling carts. PEIG grants are typically <br />awarded up to $100,000 for the purchase of recycling carts. However, the City is applying for <br />$125,000 to cover the entire cost for the transition to recycling carts. If the City only receives a <br />PEIG in the amount $100,000 for the purchase of recycling carts, the City would then need to use <br />the reserves within the recycling fund or raise the current rate for recycling services to cover this <br />additional expense. The recycling fund currently has approximately $80,000 in reserves. <br />
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