05-18-09-WS - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORK SESSION-MAY 18, 2009 10 Community Development Director Lehnhoff indicated that Council discussed this item in March where Eureka presented an offer to waive future processing fees but that the City had to waive the right to future revenues. Community Development Director Lehnhoff explained it was the staff s opinion that the City did not owe Eureka the processing fees, which the Council agreed with in March. Council directed staff to offer a counter proposal keeping a smaller portion of the revenue share and eliminating the gap in processing fees. He indicated that paper was to remain in the recycling mix as well. Community Development Director Lehnhoff stated he met with Eureka several weeks ago and they did not accept the counter proposal and have withdrawn the original proposal. He reported the discussion with them was positive but they indicated it is a difficult economy for recycling. - Community Development Director Lehnhoff explained that he spoke with Chris Goodwin last week before writing up this memo. He advised the Council authorize staff to continue with negotiations on the processing fees with the idea that under new provisions perhaps a smaller processing fee could be reached. Community Development Director Lehnhoff stated that if these negotiations were reached the City would be paying more fees than anticipated within the original contract. Eureka indicated they would discontinue paper pick up if an agreement were not reached as they were not able to sustain the losses each month. Councilmember Grant questioned how long the contract was with Eureka. Community Development Director Lehnhoff stated this was a three year contract and that the first year was just completed at the end of February. Mayor Harpstead asked if the other cities holding contracts with Eureka have revenue share. Community Development Director Lehnhoff stated that all their contracts have revenue share, but all the contracts are different. Councilmember Grant indicated the City may have a difficult time negotiating a recycling contract in two years if terms were not reached with Eureka at this time.