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<br />ARDEN HILLS CITY COUNCIL - March 30, 2009 <br /> <br />6 <br /> <br />Mayor Harpstead stated that Eureka is a non-profit organization. He asked what <br />recourse the City would have if the City is not able to recycle the components that <br />they want. <br /> <br />City Attorney Jerry Filla stated that if the City interprets the contract the way it <br />has been, it would require Eureka to continue operating the way it has been and the <br />City would share in profits not losses and if they did not pick up the paper then they <br />are in default of the contract and the City could pursue that option. Section 25 <br />supports the interpretation that the City would only pay so much per household and <br />share in profits and allows Eureka an escape clause so that they would not have to <br />loose money indefinitely. Eureka has stated in one of their letters that in the RFP <br />they have the statement that the City would not pay any cost above the processing <br />costs and this is what they are using to support their cause that the City has to pay <br />for the gap. Even though this language is in the RFP it did not make its way into <br />the contract. If Eureka refuses to collect paper and they don't go through the <br />Section 25 process then the City would determine they are in default of the terms of <br />the agreement. <br /> <br />Mayor Harpstead clarified that if Eureka did go through the Section 25 process the <br />City would not have any recourse to find another vendor. <br /> <br />City Attorney Filla stated that the City could find another vendor for just the paper <br />if this was possible. <br /> <br />Mayor Harpstead clarified that changing vendors would not be an option if Eureka <br />did not pick up the items that the City wanted. <br /> <br />City Attorney Filla stated that if Eureka did not pursue the process of Section 25 <br />they would have to continue to pick up the paper. <br /> <br />Councilmember Holden clarified that there was no way to cancel the contract until <br />2011. <br /> <br />City Attorney Filla stated that this was correct unless they are in default of the <br />contract. <br /> <br />Councilmember Grant stated that there should be some course of action that the <br />City can take with Eureka in order to keep them as a vendor. <br /> <br />Mayor Harpstead clarified that there was a direction for Staff from the Council to <br />go back and negotiate with Eureka Recycling that paper is continued to be collected <br />and bring the appropriate amendment back to the Council. <br />