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<br />.. <br />_"WLLS <br /> <br />MEMORANDUM <br /> <br />DATE: June 29, 2009 <br /> <br />TO: Mayor & City Council <br /> <br />FROM: James Lehnhoff, <br />Community Development Director <br /> <br />SUBJECT: Eureka Recycling Contract Amendment <br /> <br />Action Reauest <br /> <br />Approve the June 29, 2009, amendment to the Contract Agreement Between City of Arden Hills <br />and Eureka Recycling for Recycling Services effective for the June 2009 services. <br /> <br />Back2round <br /> <br />During the March 30, 2009, regular meeting and the May 18, 2009, work session, the City <br />Council provided guidance and directed staff to negotiate with Eureka Recycling to resolve a <br />disagreement regarding the Payment Terms section of the contract (Section 6 of Attachment A). <br />In sum, Eureka Recycling claimed that the City was responsible for the processing fees not <br />covered by revenue while the City has maintained that the contract does not place the City <br />responsible for the processing fees not covered by the revenue. If the processing fees were not <br />covered, Eureka Recycling indicated they would consider removing paper from the recycling <br />mix. The reports from the two previous City Council discussions describe the background of the <br />disagreement in more detail. <br /> <br />At the conclusion of the May 18, 2009, work session, the consensus of the Council was to <br />authorize staff to renegotiate the payment terms section of the contract with direction to keep <br />paper in the recycling mix and a desire to retain revenue share. The Council also allowed staff to <br />consider options that included the City paying a renegotiated processing fee in addition to the <br />standard base fee per household. Staffhas since met with representatives from Eureka Recycling <br />and a contract amendment has been prepared for Council review (Attachment B). Eureka <br />Recycling is aware that contract amendments require City Council approval. <br /> <br />Eureka has provided articles regarding the state of the recycling program (Attachment C). <br /> <br />Metro-inet\ardenhills \Admin \CouncillAgendas & Packet Information 12009\06-29-09 - Regular Meeting - Eureka <br />Recycling Contract Amendment <br /> <br />Page 1 of 5 <br />