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<br />Recvclin2: Bud2:et Impact <br /> <br />From January to March, the processing fees have added up to just over $4,400, which is <br />approximately 19 percent more than budgeted for that time period. At the current rate, the <br />processing fees would be approximately $1 7,600 by the end of this year. This total is highly <br />dependant upon market conditions. <br /> <br />As noted in the March 30, 2009, memorandum, Eureka "waived" the December processing fees. <br />None of the additional processing fees have been paid. The standard monthly per household cost <br />has been paid since it is not at issue. <br /> <br />Recommendation <br /> <br />In order to help keep paper in the recycling mix, staff recommends moving forward with <br />negotiations on restructuring the processing fees. It should be noted that restructuring the <br />processing fees will likely lead to increased recycling costs for the City. Until negotiations <br />begin, it is difficult to calculate a budget impact. Staff will also review the account balance and <br />other income for the recycling enterprise fund. Any contract amendments would require Council <br />approval and budget impacts would be provided. <br /> <br />A quick comparison of Eureka's contracts with Maplewood, Roseville, Lauderdale, and Saint <br />Louis Park has been attached (Attachment C).. The contract language is different for each City. <br />According to Eureka, the monthly costs and processing fees are different between each City <br />because of when the contract was negotiated, routes, days of collection, population, the materials <br />used for revenue share, and other variables. Staff wants to learn more about these variables, and <br />the contract differences imply that there should be room to negotiate on the costs. Eureka is <br />having similar discussions with their other contract cities. <br /> <br />Attachment <br /> <br />A. March 30, 2009, Memo to the City Council <br />B. Pages 7, 8, 12, and 18 of the Contract Agreement between the City of Arden Hills and <br />Eureka Recycling for Recycling Services <br />C. Eureka Contract Comparison <br /> <br />City of Arden Hills <br />City Council Work Session for May 18, 2009 <br /> <br />\ \Ahdocs1\ah\AHdata\Planning\Recycling & Garbage \2009\ 051809 - CC Report - Eureka Contract Discussion.doc <br />Page 3 of3 <br />