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<br /> <br />AGENDA ITEM – 1B <br /> <br />MEMORANDUM <br /> <br />DATE: August 17, 2020 <br /> <br />TO: Honorable Mayor and City Councilmembers <br /> Dave Perrault, City Administrator <br /> <br />FROM: Mike Mrosla, Community Development Manager/City Planner <br /> <br />SUBJECT: Republic Recycling Contract Extension <br /> <br /> Budgeted Amount: Actual Amount: Funding Source: <br /> N/A N/A N/A <br /> <br />Council Should Consider <br /> <br />Staff is looking for Council direction in regards to either extending the current contract with <br />Republic Services or start the RFP process to select a new recycling provider. The existing <br />contract with Republic Services requires the city to notify them at least six months prior to the <br />expiration of the contract in the event the city decides to go out for RFP. <br /> <br />Background <br /> <br />Republic Services has been the city’s recycling hauler since 2015. The existing contact <br />(Attachment A) is very favorable for the city and was set to expire in May 2020. However, the <br />existing contact has a clause that states the city has the sole discretion to elect to extend the <br />contract annually or five (5) year increment. At its November 12, 2019 meeting, the City <br />Council extended the current contract one (1) year or until May 4, 2021. The current contract <br />may be extended four (4) more times. <br /> <br />Staff is recommending extending the current contract with Republic Services for another year or <br />from May 3, 2021, to May 2, 2022. Staff is proposing this extension because it would be <br />difficult to secure a similar contact due to the unstable recycling markets. The proposed one (1) <br />year extension will continue to utilize the existing terms and conditions. <br /> <br />Budget Impact <br /> <br />The proposed one (1) year extension will continue to utilize the fee structure as previously <br />approved in the currently approved contract. Under the current contract, any rate increase shall <br />not exceed three (3) percent. The estimated contract rate based on a maximum three (3) percent <br />increase will be $102,000 for 2021.