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EN ILLS MEMORANDUM DATE: September 20,2010 Item 2.0 TO: Mayor& City Council FROM: Meagan Beekman, City Planner& Recycling Coordinator SUBJECT: Residential Curbside Recycling—Eureka Contract Extension Requested Action Discuss the Eureka Recycling contract and provide Staff with feedback on whether to proceed with extending the existing contract or begin the process of soliciting proposals for a new residential curbside recycling service provider. Background, The City has contracted with Eureka Recycling for curbside residential recycling services since March L 2008. The contract provides curbside residential recycling services to most residences in the City (Hunter Park condos, Parkshore Apartments, Cottage Villas, and Arden Manor contract for their own recycling services). The current contract is set to expire on March 1, 2011. The contract allows for two one-year renewal options provided that both the City and Eureka agree to the renewal. The current contract and first amendment are included as Attachment A. The City currently uses two-stream recycling with Eureka Recycling (sometimes referred to as dual stream or two-sort recycling). Two-stream recycling requires residents to separate mixed paper (newspaper,a cardboard, office paper, mail, phone books, milk and juice cartons, pop and beer boxes, etc) from mixed rigids (cans, glass, and plastic). Eureka Recycling also allows residents to recycle clothes and linens. In addition to these items, Eureka is working on expanding the items that they collect and is hoping to add pizza boxes beginning next year. Post consumer recycling markets plummeted in October 2008, and hit their lowest point in January2009. The drop in prices significantly impacted the recycling market and has caused the p p g cost of recycling services to rise dramatically. Due to the drop in the market, the City did not Y g receive revenue share for several months. In June 2009, the City and Eureka Recycling amended the original contract due to a disagreement regarding the City's responsibility for processing fees that were not covered by revenue share. The outcome of the amendment restructured the way the City was charged processing fees, expanded the number of items that the City collected g 11 Metro-inetl ardenhillsUdmin l Council Ugendas&Packet Information 1201 M-20-10 Worksession l Packet Information M-20-10-Work Session- Memo-Eureka Recycling Contract Extension.doc Page 1 of 3