CCP 04-10-2006 - Laserfiche WebLink

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. . ARDEN HILLS CITY COUNCIL - MARCH 27, 2006 5 He indicated Waste Management has submitted a proposal to switch from the current two stream commingled system to a single sort system. Under the single sort system, all recyclable materials arc placed into one 64-gallon container that is picked up every two weeks instead of each week under the current system. The container would be provided by Waste Management as part of the eontraet. Under the single sort system, the cost per household per month would be $2.26; however, due to rising fuel costs, the new contract would also include a fuel surcharge. The fuel surcharge is based on the cost of fuel and, according to Waste Management, averaged eight percent in 2005. To offset the costs of the containers, Waste Management would request a five- year contract with the single sort system. Staff recommended requesting a formal proposal and a sample contract for the single sort recycling program. From brief discussions with staff in other communities that have implemented the single sort system, we had only heard very positive comments regarding the single sort system. The single sort system tends to be easier for residents, has increased the amount of materials recyclcd, and, with fewer pickups each month, has resulted in less truck traffic on residential streets. Jennefer K1ennert, \Vaste Management, summarized the Waste Management Single Sort Recycling program. COllncilmember Holden stated she did not understand if they switched to every other week recycling, why they were being charged a fuel surcharge. Ms. K1ennert stated their fuel costs have doubled and the way the contract was written now, the contract could not increase. It was their intent to charge a fuel surcharge so they did not have to foot the entire cost of fuel. COllncilmember Grant inquired about a five-year contract. He stated it seemed to make sense that if they were going to award a five-year contract, they should look at the competition to see what they were offering also. Ms. Klennert stated they were bringing this to the City as an option, but they were willing to continue the contract, which has two years remaining. She noted the five-year contract request would not be on top of the existing contract. She stated they were requesting five-years from the date ofthe new contract. COllncilmember Grant stated he was concerncd about the cost of the program. COllncilmember Larson agreed and stated he was not comfortable going forward with this without putting it out to bid. He noted it appeared they would be doing double sort until 2008 when the current contract expired. Ms. K1ennert stated they would not waut to lose the contract, so if Council wanted to wait to obtain bids in 2008, they will be a bidder. Mayor Aplikowski requested staff continue to research this and come back to Council at a future work session. COllllcilmember Larsoll statcd he was comfortable not going forward at this time if they did not have a competitive bidding process. He recommended they wait until the end of the current contract and go out for bids. . Mayor ApIikowski stated this would not preclude staff from collccting information.