7C - Laserfiche WebLink

Home Browse Search

however, one notable item that was not included in Eureka's proposal but was included in the proposed contract. Section 6.1 of the proposed contract includes the following: 6.1 The City agrees that prices for service will increase each year the Consumer Price Index for the Upper Midwest as determined by the Federal Reserve Bank of Minneapolis. The City will notify the Contractor by the last week of December what the compensation rate will be for the subsequent calendar year. While a yearly price increase for recycling services it not uncommon, it was not specifically included in Eureka's proposal submitted to the City. With an estimated yearly price increase of 2.4 percentl, the monthly household price for recycling services would be $2.95 in 2008 but would then increase to $3.02 in 2009 and $3.09 in 2010. The price increase is subject to change depending on the overall consumer price index (CPI) change, which is calculated by the Federal Reserve Bank. The estimated yearly prices do not include the estimated revenue sharing of 70 cents per household per month. With the estimated revenue sharing, the total cost to the City would still be less than the proposal submitted by Waiter's Recycling, Allied Waste, or Waste Management. Eureka's contracts with Roseville, Saint Paul, and Lauderdale do include yearly price adjustments based on the CPI. For a full review of the prices from each proposal, see Attachment A. The proposed contract does include the applicable standards from the Memorandum of Understanding with Licensed Residential Waste Haulers (section 32 ofthe proposed contract). Eureka is aware of and has accepted these restrictions in the contract. The City will provide Eureka with a map of street conditions so they can design their routes accordingly. Residential recycling services are paid for by the annual SCORE grant from Ramsey County and by a fee added to the property tax statement for the households receiving recycling services. At the December 10, 2007, meeting, the City Council set the 2008 recycling fee at $29.00 per household. Recommendation Despite the yearly price increase not being included in Eureka's original proposal, it is still the most cost-effective proposal when taking the revenue sharing into account. Additionally, due to rising fuel costs and other costs, including a cpr adjustment in a contract is not unusual. Staff is recommending approval the Contract Dated January 14, 2007, with Eureka Recycling for Residential Curbside Recycling Services from March I, 2008, to February 28, 2011. Attachments A: Price Comparison Worksheet B: Contract for Residential Recycling Services C: RFP for Residential Recycling Services I Based on Federal Reserve Bank of Minneapolis data C:lDocuments and SettingsljackiefreppertlLocal SettingslTemporary Internet FileslOLKDl\011408 - Eureka Residential Recycling Contract.doc Page 2 of2