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ARDEN HILLS CITY COUNCIL WORK SESSION – AUGUST 17, 2020 4 <br /> <br />Councilmember Scott asked if they needed to temporarily escalate someone to do higher level <br />work, who could set those controls and said he felt the finding wasn’t bad based on the size of our <br />city. <br /> <br />Finance Director Bauman said she sets those access controls. <br /> <br />Mr. Nielsen said he was comfortable with that. <br /> <br />Mr. Nielsen clarified that when they are issuing the audit standards it is an internal control <br />observation. There are no instances of non-compliance with any of the audit testing. <br /> <br />Mayor Grant reviewed the direction to proceed with additional training for the accounting <br />analyst, they do not want the City Administrator to go back to a Finance capacity although there <br />may be some items he could help with, and to try to get to significant deficiency if possible. He <br />asked to have the item put on a tickler file for the beginning of next year for review. <br /> <br /> <br />B. Recycling Contract Discussion <br /> <br />Community Development Manager/City Planner Mrosla explained that Staff is looking for <br />Council direction in regard to either extending the current contract with Republic Services or start <br />the RFP process to select a new recycling provider. Republic Services has been the city’s <br />recycling hauler since 2015. The existing contract is very favorable for the city and was set to <br />expire in May 2020. However, the existing contract has a clause that states the city has the sole <br />discretion to elect to extend the contract annually or in five year increments. At its November 12, <br />2019 meeting, the City Council extended the current contract one year or until May 4, 2021. The <br />current contract may be extended four more times. Staff is recommending extending the current <br />contract with Republic Services for another year or from May 3, 2021, to May 2, 2022. Staff is <br />proposing this extension because it would be difficult to secure a similar contract due to the <br />unstable recycling markets. The proposed one year extension will continue to utilize the existing <br />terms, conditions and fee structure as previously approved. Under the current contract, any rate <br />increase shall not exceed three percent. The estimated contract rate based on a maximum three (3) <br />percent increase will be $102,000 for 2021. <br /> <br />Community Development Manager/City Planner Mrosla said the options are: would the <br />Council want to continue to utilize the current contract with Republic Services for another year, <br />that would not change the current existing terms and conditions, or should the City go out for an <br />RFP. <br /> <br />Councilmembers Scott, McClung, Holden and Mayor Grant were in favor of a one year <br />extension. <br /> <br />Councilmember Holden wondered why they didn’t extend it for another three years. <br /> <br />Community Development Manager/City Planner Mrosla said the contract allows for a five <br />year increment or one year. Since they did one year last year, they can only annually increase it <br />going forward. But he can ask Republic Services if they will extend it an additional three years.