06-29-09-R - Laserfiche WebLink

Home Browse Search

ARDEN HILLS CITY COUNCIL - June 29, 2009 16 8. UNFINISHED BUSINESS A. Approve the June 29.. 2009.. Amendment to the Contract A2reement Between the City of Arden Hills and Eureka Recyclin2 for Recvclin2 Services Effective for June 2009 Services Community Development Director Lehnhoff stated during the March 30, 2009, regular meeting and the May 18, 2009, work session, the City Council provided guidance and directed Staff to negotiate with Eureka Recycling to resolve a disagreement regarding the Payment Terms section of the contract. The contract amendment would completely replace Section 6 and Section 25 of the original contract. One additional change to the amendment would be on page 3, section 6.2.3, the first paragraph, last sentence should be "Processing fees, as described in Section 6.2.2, shall apply to materials with prices of less than $0.00 per ton." Councilmember Holmes clarified that in the worst case scenario the City would be responsible for paying an additional $9800 in processing fees and this amount had not been budgeted for. Community Development Director Lehnhoff stated that this was an estimated amount for June through December and this amount would have to be paid for by the existing fund balance. Councilmember Holmes asked what the City would be doing in 2010 to cover these increased costs. Community Development Director Lehnhoff stated that the rate per household would need to be increased but at this time we do not have an estimate. Councilmember Holmes clarified that once the rate was set it could not be changed. Community Development Director Lehnhoff stated that the household rate could only be set annually. Mayor Pro Tem McClung asked what the current rate per household was. Community Development Director Lehnhoff stated that the current rate was $32.00 per household per year. Councilmember Grant stated that the rate for 2010 could increase by 10% or more.