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12-16-19-WS
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12-16-19-WS
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2. Gross amounts of material collected by material type <br />3. Markets used for the sales of recyclable <br />4. Amount of process residuals disposed of <br />5. Revenue share credits <br />In addition, Republic is supposed to be doing Annual Cart Checks at 100 residential properties and <br />reporting the results. Republic is in charge of designing, printing, and mailing a curbside program <br />flyer and one newsletter article each year. The contract does not include a clean-up day. <br />The base price that the city pays to the contractor is based on the number of RDUs and MDUs <br />participating. For RDUs in 2015, service began at $3.03 per month and $2.00 for each extra cart. <br />For MDUs, service began at $55.00 per month for each four -yard container or $4.25 per month for <br />each 65 -gallon cart serviced. The processing fee started at $66.00 per ton. The base prices and the <br />processing fee increase each year by either the Consumer Price Index or by 3%, whichever is less. <br />For 2019, the unit price is $3.19 and there are 2,584 RDUs participating. The contract also includes <br />a revenue share for the price given for each material at 80% city and 20% contractor. We are <br />guaranteed a minimum price on all materials of $0.00 per ton. This is saving the city money as the <br />prices of many recyclable materials are currently negative (especially glass and mixed paper). For <br />2018, the city saved $5,922.70 as the price of recyclables fell. For 2019 January -October, this has <br />saved the city $16,919.69. The Republic contracted services amount for 2018 was $142,811.00, <br />$135,170.00 in 2019, and $139,180.00 in 2020. It is important to note that due to the current <br />recycling market it could be difficult to secure a contract similar to the existing. Attachment B <br />explains the new normal for recycling and how municipalities should respond. <br />Cleanup Day Background <br />Prior to extending the contract with Republic Services, the city was notified by Shoreview that <br />starting spring 2020, pending a Council vote, they are not going to participate in the joint clean-up <br />day moving forward. Given the general growth seen in vehicle counts for the two- city event, <br />together with the increase of diverse and oversize loads being brought in, customers have <br />increasingly shared their frustration with longer waiting times. Shoreview is going to explore <br />having an event for their residents exclusively. The general trends of the past five years have led <br />them to consider other options to best serve their residents. Lastly, the unpredictability of the site <br />logistics are likely to increase due to growth in the activities associated with the new Red Bulls <br />and other facilities onsite, which also weighed heavily into Shoreview's decision. <br />The city currently has $21,000 budgeted for 2020 cleanup day (Attachment Q. Revenues typically <br />do not cover the costs of hosting the event which means cleanup day is a net cost to the city <br />(Attachment D). On average about 170 vehicles from Arden Hills attend the events. <br />Recycling Contract Discussion: <br />Should the city continue to utilize the current contract with Republic Services in one-year <br />increments up to four (4) times? Any extension would utilize the existing terms and <br />conditions. <br />2. Should the city go out for RFP for a new recycling provider? <br />3. Should the city go out for RFP for a new recycling provider and include cleanup day or <br />similar large-scale event? <br />
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