2C, Recycling Services Contract - Laserfiche WebLink

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revenue share on, and added a provision that clarified what would happen if there was a sudden lack of market demand for a particular recyclable. The contract amendment did not extend Eureka's current contract or impact the renewal options available to the City. The City has received revenue share from Eureka Recycling every month since the contract was amended. Recycling markets have been steadily rising since their low point in January 2009. Revenue Share Currently the City pays Eureka $3.06 per household to collect recycling materials. Eureka, in turn, processes the materials and provides back to the City 50 percent of their after cost revenue -= for most materials. The revenue share is used to buy down the cost of the recycling service and directly lowers the cost per resident in the City. The cost of the recycling program is charged back to the residents through their property tax statements. This means that the more the residents of Arden Hills recycle the more revenue is shared with the City, which directly lowers the cost of the service for the residents. - In March 2008 the City began its contract with Eureka. In nine months the City received $16,832.72 in revenue share, which brought the cost of the Eureka Recycling service down to $2.00 per household. In 2009, because of the situation with the recycling markets, the City did not receive revenue share for the first six months. By year-end the City had received $3,215.35 in revenue share, which brought the cost of the recycling service down to $2.96 per household. Eureka did not increase the cost of service from 2009 to 2010, and so the base cost per household remained at $3.06. As of July of this year, the City has received $11,042.46 in revenue share from Eureka. This amount has brought down the cost per household to $2.41. This number is anticipated to decrease by the end of the year as revenue share continues to increase per tonnage month after month. Eureka Recycling The City's contract with Eureka Recycling has also been environmentally beneficial to the City. Eureka Recycling takes more types of material than any other service provider in the metro area, and continues to work to expand the types of items that they collect. Eureka Recycling has provided unique educational efforts including: • Participating in the City's Celebrate Arden Hills with a community booth • An annual Guide to Recycling mailed to residents • Educational tagging to inform residents why a particular item was not picked up • An information hotline serviced by environmental educators to answer resident's questions and assist in finding expanded opportunities to recycle • Annual reports detailing the City's recycling efforts • Trucks run on a 20% biodiesel blend that cuts emissions of particulate matter, hydrocarbons and carbon monoxide. Eureka Recycling also continues to advance their mission of zero waste. They are currently Y g working Y with the City of St. Paul on a five neighborhood study dealing with the feasibility of 1 tMetro-inetlardenhillsUdminlCouncilUgendas&Packet Information 1201M-20-10 WorksessionlPacket Information M-20-1 0-Work Session- Memo-Eureka Recycling Contract Extension.doc Page 2 of 3