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ARDEN HILLS CITY COUNCIL WORK SESSION—FEBRUARY 17, 2015 2 America. They are a Fortune 5000 organization and in 2006, 2007, and 2008 were named by Forbes Magazine as one of the "Most Trustworthy Companies" in the United States. Republic Services currently has approximately 150,000 residential customers and 12,000 commercial customers in the greater Twin Cities area. They provide contracted solid waste and recycling services for about 20 communities in the metro area, including the cities of New Brighton and Shoreview. City Planner Streff indicated that staff has negotiated the final draft of the contract with Republic Services for residential recycling services, and plans to have a contract prepared for the Council's consideration at the City Council meeting on February 23, 2015. A few highlights of the draft contract are provided below. • The Contractor shall be responsible and pay for all aspects of cart management and operations, including: receiving, assembly, distribution (aka new cart "roll out"), excess cart inventory, (i.e., provide "warehouse" services), cart switches/replacements, cart maintenance, repair or replacement of damaged carts, and manage all aspects of warranty repairs. • The Contractor shall provide recycling and solid waste collection services at the City owned and operated buildings and parks at no additional cost to the City. • The Contractor and the City shall work together in the preparation and distribution of educational materials to insure accurate information and program directions. The Contractor shall pay for the annual design, printing and mailing of a curbside program flyer • The Contractor shall conduct its own promotions and public education to increase participation. The publicity and promotion program may include articles for city newsletters, public appearances, provision of information for local environmental groups, or attendance at public events sponsored by the City. The Contractor shall at a minimum provide one (1) newsletter article per year. • Recyclables Collection shall be $3.03 per eligible residential dwelling unit per month for weekly recycling service with an annual CPI of up to three (3) percent. Eligible residential dwelling units with more than one (1) cart will be charged an additional fee of$2.00 per household per month per cart. • Recyclables Collection shall be $55.00 per eligible multi-dwelling unit per month for each four yard container serviced once per week or $4.25 per eligible multi-dwelling unit per month for each 65 gallon cart serviced once per week. • The processing fee for all recyclable material commodities shall be $66.00 per ton with an annual CPI of up to three (3)percent. • The Revenue Share on all commodities shall be split between the City and the Contractor at a rate of 80% for the City and 20%to the Contractor. City Planner Streff stated that staff has applied for a Public Entity Innovation Grant (PEIG) through Ramsey County for residential recycling carts. At this time, the County is still in the process of reviewing the City's grant application. 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 receives a PEIG in the amount $100,000 for the purchase of recycling carts, the City would then need to use the reserves within