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curbside collection of compostable materials. The purpose of the study is to discover ways through which Eureka may be able to collect organic materials for compost in the future. Contract Renewal Staff has met with Eureka Recycling and discussed options pertaining to the renewal of the existing contract. Eureka Recycling has submitted a letter (Attachment B) summarizing recycling statistics specific to Arden Hills. Their experience has been very positive in the City and they have found that recycling rates, as well as quality of materials collected, are extremely high compared with other communities they serve. Eureka is interested in continuing their contract with the City. The City has the option of renewing the contract for either one or both one-year options at this time. Additionally, Eureka Recycling has stated that they would be open to amending the contract to extend it for an additional three years beginning in March of 2011. The City also has the option of allowing the Eureka Recycling contract to expire. If the Council chooses this - option, Staff would begin the process of soliciting proposals to continue the service beyond March 1, 2011. Recommendation In preparation for this discussion Staff contacted the recycling coordinator for the City of Roseville to discuss the cost of recycling service providers. Roseville currently contracts with Eureka Recycling and is in the process of extending their contract as well. As part of that process Roseville surveyed the price of other recycling service providers. In talking with Roseville Staff they had found that the Eureka Recycling contract was very favorable and that the cost of recycling services had increased dramatically since their last RFP three years ago. They attribute the increase in cost to the destabilization of the market in 2008. Additionally, they noted that most new recycling service contracts now include fuel surcharges, which are not included in the City's existing contract. While the Arden Hills and Roseville contracts with Eureka are structured slightly differently, Staff believes that our current contract is very favorable compared with the cost of service from other providers. The information collected by the City of Roseville had not yet been compiled as of the printing of this memo; however, Staff will provide that information when it is available. At this time Staff is recommending the City Council approve both one-year extensions to the current Eureka Recycling contract. Additionally, Staff would be supportive of amending the contract to extend it for three years beginning in March 2011, if the Council chooses to do so. Attachments A. Eureka Recycling Contract and Amendment No. 1 B. Letter from Eureka Recycling dated July 30, 2010 IlMetro-inetlardenhillsUdminlCouncil)Agendas&Packet Information1201 M-20-10 WorksessionlPacket Information W9-20-1 0-Work Session- Memo-Eureka Recycling Contract Extension.doc Page 3 of 3