HomeMy WebLinkAbout1A, Residential Curbside Recycling - Contract Discussion i
j
-AVEN HILLS
Request for Council Action
1A
Prepared By: Meagan Beekman, City Planner Work Session Date: September 24,2012
Residential Curbside Recycling—Contract Discussion
Budgeted Amount: Actual Amount: Funding Source:
Discussion Topic:
Discuss the City's current recycling system and contract for curbside collection service. Provide
Staff with feedback on whether to proceed with renegotiating an extension to the existing
contract or begin the process of soliciting proposals for a new residential curbside recycling
service provider through a request for proposal (RFP)process.
Supporting Documents:
1. Memorandum from Meagan Beekman, dated September 24, 2012
2. Recycling Performance Report
3. Current Eureka Recycling Contract (originally effective 2008) and Amendment No. 1
(effective 2009)
EN HILLS
MEMORANDUM
DATE: September 24, 2012
TO: Mayor& City Council
FROM: Meagan Beekman, City Planner& Recycling Coordinator
SUBJECT: Residential Curbside Recycling—Contract Discussion
Requested Action
Discuss the City's current recycling system and contract for curbside collection service. Provide
Staff with feedback on whether to proceed with renegotiating an extension to the existing
contract or begin the process of soliciting proposals for a new residential curbside recycling
service provider through a request for proposal (RFP)process.
Background
The State mandates that cities with a population over 5,000 provide curbside recycling to single-
family properties. While cities can require that multi-family properties and even businesses
participate in the city-wide program, this is not required by State Law. Ramsey County is tasked
with overseeing the State's mandates for municipalities within the County. As part of that role,
Ramsey County offers many services to cities to achieve their recycling goals. Most notably, the
City receives SCORE grant money in the amount of approximately $20,000 a year towards its
recycling program. This money is intended to increase participation in recycling programs. The
County also offers free consulting services to assist cities with moving through the RFP process,
selecting a provider, and negotiating contracts with selected haulers. Currently the County has a
contract with Foth Infrastructure & Environment, LLC, who specialize in this technical
assistance task. City Staff have been working with Foth on these recycling contract discussions
and may request additional assistance as needed
Recently, Staff met with County Staff to review the City's recycling performance measures and
to discuss ways the County could assist the City in the future. The County provided a Recycling
Performance Report (Attachment A) of the City's recycling program.
The City has contracted with Eureka Recycling for curbside residential recycling services since
March 1, 2008. The contract provides curbside residential recycling services to most residences
in the City (Hunter Park condos, Parkshore Apartments, Cottage Villas, and Arden Manor
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contract for their own recycling services). The current contract is set to expire on March 1, 2013.
The contract had allowed for two one-year renewal options, which were acted upon in 2010. The
current contract and first amendment are included as Attachment B.
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, cardboard, office paper, mail,phone books, milk and juice cartons, pop and
beer boxes, etc) from mixed rigid containers (cans, glass, and plastic bottles). Eureka Recycling
also allows residents to recycle clothes and linens. In addition to these items, Eureka expanded
the materials they collect to add pizza boxes in 2011.
Post consumer recycling markets plummeted in October 2008, and hit their lowest point in
January 2009. Due to the drop in the market,the City did not receive revenue share for several
months from Eureka. Recycling markets have been steadily rising since their low point in
January 2009; though seem to have leveled off in the past several months.
RFP Process VS. Contract Renegotiation
The City currently needs to decide whether to move forward with a contract renegotiation for an
extension with Eureka, or to go out for an RFP for a new curbside recycling contract. If the City
Council directs staff to pursue a contract extension with Eureka, direction is also needed as to
what aspects of the contract should be renegotiated.
There are many factors that will play into both a decision to renegotiate the current contract, or
how to review and score RFP responses. The City will need to determine its priorities in terms
of its decision to seek a contract extension with Eureka, or to go out for RFP. Those priorities
can be quantitative, such as cost of service and types of materials collected; or they can be more
subjective, such as level of customer service, respect for the community streets, or educational
materials or incentives provided in order to increase resident participation.
Staff is seeking feedback from the Council on what the City's priorities ought to be, and which
direction should be pursued. If the Council prefers to extend the City contract with Eureka, but
wants additional information on comparative pricing there are easier ways to get this information
than going through an RFP process. Staff can ask the County to authorize Foth to work with the
City to compare costs in order to put the City in a better position to renegotiate this item with
Eureka if it is appropriate to do so.
The following memo outlines the biggest issues to be considered when determining whether to
go out for an RFP or not.
Revenue Share
Currently the City pays Eureka $3.20 per household per month to collect recycling materials.
Eureka, in turn, processes the materials and provides back to the City 50 percent of net revenue
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after processing costs 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.
Base Cost/ Average Actual Cost/
Year HH/Month Revenue HH/Month
Share/Month
2008* $2.95 $1,683.27 $2.29
2009 $3.06 $267.95 $2.96
2010 $3.06 $1,719.74 $2.36
2011 $3.11 $3,078.27 $1.85
2012 (YTD) $3.20 $1,633.77 $2.52
*Contract began March 1, 2008
Not all recycling providers offer revenue share as part of their contract. If the Council chooses to
go out for bids on recycling services, the analysis of the responses should take into account
whether the proposals offer revenue share or not, and, if so, how much revenue share is
proposed.
According to analysis done by the County, the City, with revenue share, pays slightly below
average rates to Eureka than compared with other municipalities in Ramsey County.
Eureka Reeyelint!
Eureka Recycling is a non-profit organization whose mission is to demonstrate that waste is
preventable, not inevitable. They are a zero-waste organization, meaning they do not collect
materials that they cannot sell to a market that can certify that the materials purchased from
Eureka are being recycled. This approach is distinct from for-profit commercial recycling
providers whose companies are driven more by customer service. Other commercial recycling
providers often accept a broader mix of materials because those materials that do not have a post-
consumer market can then be discarded in the regular waste stream(i.e. landfills, incinerators) or
sold in unsorted bulk to post-consumer markets who in turn discard the materials into a regular
waste stream.
The upside to the for-profit recycling providers approach is that there is an inherent convenience
to residents built into the way they collect recycling. For-profit recycling haulers tend to collect
using a single-stream system, meaning residents have one bin or cart that all recycling materials
go into. The recycling carts can then be mechanically picked up and dumped into trucks. This
tends to be more efficient and, due to the larger capacity recycling carts, is usually collected bi-
weekly rather than weekly.
Eureka, on the other hand utilizes a dual-sort approach using bins that are hand picked up on a
weekly basis. This allows drivers to visually inspect materials and remove items that do not
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have a post-consumer market. Eureka is currently analyzing a possible switch to single-stream
collection; however they would continue to collect weekly and would continue manual collection
from bins. Eureka may make this switch to single-stream in the next 1-2 years after investing in
a conversion of the materials recycling facility (MRF) in Minneapolis.
Plastics
Over the past year the recycling of plastics has become a controversial topic within our region.
For-profit recycling providers have begun accepting all plastic resin types #1 through#7.
Simply because a product has the three arrows symbol on it does not make it recyclable. This
symbol is not regulated by any federal agency and has no specific meaning. The number within
the symbol does indicate the type of resin that makes up the base of the product; though dyes,
odors, and many other chemicals can be added to an individual product, which will impact its
melting rate, and the manner in which it can be recycled. While the ability to recycle a broader
range of plastics has improved over the last couple of years, some of the plastics are exported to
foreign markets. Eureka advocates for collection of materials that have verifiable end-use
markets and it is more difficult to verify foreign markets.
Eureka continues to only accept resin types#1 (PET) and#2 (HDPE)plastic bottles.
T Polyethylene 1'erephtha tat e,P l~ Eureka is in the process of analyzing the impact of
broadening its plastic collection, and anticipates
LZ High,)ens€ty Polyethylene,IIDPl, e including resin types#4 (LDPE), #5 (PP), and#7
Polyvinyl`'''"r'�ePV ("Other") in the next two years. Recycling of
4 Low Density Poltethylen4,LDPl '4
post-consumer plastic packages made from resin
r Polypropylene.PP types#3 (PVC) and#6 (PS) are more challenged
C PolystyTe>te,Ps because of the extremely low volume. Also,there
otlr is a lack of domestic market demand for these
types of plastics.
Resin Identification Codes(RIC)
If the breadth of materials collected is a high priority item for the Council, this may impact the
decision to extend the contract with Eureka, or to go out for RFP. The other for-profit recycling
haulers are providing the convenience of single-stream service and more plastic pick up, even
though not all of the plastic is winding up in the recycling stream.
Orizanies
Organic waste such as food waste represents 22% of the total trash collected in Ramsey County.
As a result, separate organics collection will be a growing focus at both the State and County
level. The County has set a goal that municipalities should provide some sort of organics
collection by 2016. While few if any providers currently collect organics materials for recycling,
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this will become a bigger issue in the coming years. Eureka recently conducted a pilot program
in St. Paul to collect organics curbside, and hopes to include organics collection as a regular
service in the next 2-3 years.
RecyclinLy Bins and Carts
Recycling bin ownership is another issue that can come up when reviewing recycling contract
proposals. Currently residents own the bins that are used for recycling pick up. The City
initially purchased the bins and provided one bin to every household. Additional bins may be
purchased by residents for $6 each. If the City chooses to go out for an RFP and switch haulers
it is likely that the result will be a single-stream collection. As part of any planning for single-
stream recycling, the City will need to make a decision about whether to purchase carts for
residents or to require the hauler to provide carts. Carts are considerably more expensive than
bins, and having a hauler provide them will impact the cost of the proposal that is submitted.
Furthermore, it will give that provider a cost advantage in the future over other providers because
they will have already made the capital investment of purchasing the carts. On the other hand, if
the City purchases the carts it will require a substantial upfront investment from the City. In
addition,the City would be required to store the carts. On the other hand, providers in the future
would compete on a more equal footing in terms of collection costs.
Customer Service and Education
The level of customer service offered to residents is a factor that is difficult to measure, but
important nonetheless to the City's experience of a recycling service provider. Seeking a
provider that offers in-person customer service to residents to answer their questions and address
issues in a timely manner is important. Further, a provider that has respect for the City's streets,
cleans up spills in a timely and effective manner, and follows the City's rules in terms of pick-up
times are all items that should be considered when selecting a hauler.
Staff is interested in seeing an expansion of educational materials offered by the recycling
provider. This may include participation in the making of videos to be played on the City's cable
channel, newsletter articles, or direct mailings to residents. While Arden Hills has one of the
highest participation rates in the County, Staff would be interested in working with a provider to
offer recycling incentives and to educate people on additional types of materials that may be
recyclable.
Discussion
Staff has spoken with Eureka to discuss the contract and a possible RFP process. Eureka is
interested in maintaining its relationship with the City and has suggested a 3-5 year contract
extension. Staff feels that if a contract extension were to proceed that it should be for 2-3 years
in order to allow time for any changes in collection of plastics and organics to be worked out
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both at the State and County level, and also within Eureka Recycling itself. Further, Staff would
like to see additional provisions added to the contract such as:
• Additional educational materials
• Incentive programs to target non participants and/or increase materials people recycle
• An option to add multi-family properties
• A process or option for conversion to more materials collected and dual sort to single sort
• The addition of recycling pick-up in the City's parks
Depending on what the Council's priorities are for a recycling contract it may be appropriate to
remain with Eureka in a renegotiated contract for a period of time, or it may be appropriate to go
out for RFP in a competitive process. Switching to a for-profit waste hauler may change the way
recycling is collected today.
Priorities
Staff has identified the following issues as priorities for the City's recycling contract:
1. Cost of service
2. Breadth of materials collected
3. Customer service/respect for City streets
4. Dual vs. single-stream
5. Educational materials/incentive programs provided
6. The addition of multi-family properties
Discussion Questions
1. What are the Council's priorities in terms of recycling service to residents?
2. Should recycling service be expanded to include multi-family properties?
3. Does the Council want to renegotiate the current contract with Eureka, or would the
Council prefer Staff go out for an RFP?
Recommendation
Staff's experience of Eureka has been very positive over the last five years. As an organization
they provide exceptional customer service and take immediate responsibility for issues as they
arise. On the other hand, due to their non-profit, mission driven, nature they offer a different
type of service than what might be provided by a for-profit hauler.
If the Council chooses to move forward with an RFP process, consultants at Foth have
recommended extending the Eureka contract for approximately 6 months in order to prepare and
fairly analyze responses.
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If the Council chooses to move forward with a contract extension, Staff recommends keeping the
RFP process on the table in the event that a renegotiated contract cannot be mutually agreed
upon.
Attachments
A. Recycling Performance Report
B. Current Eureka Recycling Contract (originally effective 2008) and Amendment No. 1
(effective 2009)
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Attachment
Recycling Performance Report
JIMLS
City of Arden Hills
City Council Work Session for September 24, 2012
OVERVIEW: CITY OF ARDEN HILLS
Trends
• As shown in the bar graph, total recycling tonnage has generally been on a downward
trend since 2007, with a substantial nosedive in 2011.
• This trend has occurred despite a substantial increase in reported multi-unit recycling
tonnage in 2010-2011.
• Nonetheless, Arden Hills continues to have high recycling performance as measured by
pounds of recyclables per household per year and per person per year.
Recycling Tonnage
E
Arden Hills, 2007-11
1200
g89 968 g12 950- ■TOTAL
1000 _
832
L 800 — ■Single-family
} curbside
L
CL 600 — Multi-unit
1A 1.1
H
400
Other(e.g.,
200 cleanup
events)
0
2007 2008 2009 2010 2011
RAMSEYCOUN Y
Comparisons and Rankings by Community:
Pounds per Household & Pounds per Person per Year
• Overall, Arden Hill's recycling performance ranks higher than for most communities in Ramsey
County. As summarized below, out of 16 Ramsey County communities, during 2010 and 2011
Arden Hills ranked 1"and 2nd, respectively, in pounds of recycling per household.
• In pounds per person Arden Hills only ranked 81h and 12th during 2010 and 2011, respectively.
However, when persons in group quarters(Bethel University and Presbyterian Homes, where
recycling is not reported as residential) are subtracted, Arden Hills ranked Vt and 4th in pounds
per person.
Performance Measure 2010 2011
Ibs/year Ranking Ibs/year Ranking
Recycling per household served: Ibs/hshd/yr 726 1 633 2
Recycling per capita: Ibs/person/yr 199 8 174 12
Recycling per capita: Ibs/person/yr; without persons in group quarters 262 1 229 4
Note: Ranking is of 16 communities in Ramsey Co., with "1"as highest ranking. Pounds are calculated from total annual tons of
recycling reported by community into ReTRAC database for combination of single family/curbside,multi-unit,drop-off,&clean-ups.
• The attached tables show the rankings by Ramsey County community for both measures for
both 2010 and 2011. Both years are shown in the event that a significant recycling program
change (or data anomaly) might change rankings significantly for a community. Both per
household and per person measures are shown, because recycling is collected at the household
level,while significant differences between communities in average household size might affect
average recycling pounds per household per year.
• For most communities, calculating pounds of recycling per person per year using total
population is a reasonable comparative measure. However, Arden Hills is unique because such
a large portion of its residents reside in group quarters (2,298 of its 9,552 residents in 2010)
where recycling services are not reported as residential. Thus, the second attached table shows
pounds of recycling per person per year by community with population in group quarters
subtracted.
• Also attached are per household and per person comparison tables for 2011 that include a
variety of demographic and recycling program characteristics for each community. For
characteristics that can be ranked, darker colors show a higher ranking for a particular
characteristic for a community. Some overall observations can be gleaned from these tables:
• In terms of community rankings for pounds of recycling per household per year: broadly
speaking, communities that rank higher in demographic variables, including income,
education, and home-ownership and value, tend to have higher quantities of average
recycling pounds per household as well. (This trend is less pronounced for rankings per
person.) Thus, at least some of the factors that appear to affect recycling performance
are out of a community's control.
• However, it appears there is little correlation between active efforts of communities in
public education, citizen commissions, or recycling coordination with recycling
performance.
• Also, for communities in Ramsey County there is no apparent correlation between
recycling performance and recycling program characteristics, such as weekly vs. every-
other-week collection, single vs. dual sort, or selection of a particular recycling collector.
Arden Hills Recvclin2 Performance, throuLh 2011 Pate 2
SUMMARY OF OF • FOR
Quantities of . • - by •
2010 •- - 2010 jJ0 11 20101 011 2010 201i7
Arden Hills 726 633 199 174 1 2 8 12
Falcon Heights 472 418 200 177 6 12 7 10
Gem Lake 545 447 201 168 5 7 5 13
Lauderdale 419 413 208 205 12 13 4 5
Little Canada 375 425 155 178 13 9 14 9
Maplewood 333 313 140 132 16 16 16 16
Mounds View 434 408 177 166 11 14 12 14
New Brighton 362 424 158 176 14 10 13 11
North Oaks 594 521 229 225 3 4 2 3
North St. Paul 439 442 180 179 9 8 11 8
Roseville 436 424 197 193 10 11 9 6
St. Paul 354 365 144 143 15 15 15 15
Shoreview 586 536 252 229 4 3 1 2
Vadnais Heights 455 472 201 211 8 5 6 4
White Bear Lake 458 449 191 192 7 6 10 7
White Bear 610 639 215 243 2 1 3 1
Township
Note:
St.Anthony is not included in the rankings;it is split between Ramsey& Hennepin counties.
Arden Hills Recvclin2 Performance. through 2011 PaLie 3
SUMMARY OF OF • FOR
LBS/PERSON/YR Group Quarters Excluded
Quantities of • by •
1 1 1 1 1 1 1 1 ! 010 2011
Arden Hills 726 633 262 229 1 2 1 4
Falcon Heights 472 418 219 194 6 12 4 8
Gem Lake 545 447 201 168 5 7 9 13
Lauderdale 419 413 208 205 12 13 6 6
Little Canada 375 425 155 179 13 9 14 12
Maplewood 333 313 144 136 16 16 16 16
Mounds View 434 408 177 167 11 14 12 14
New Brighton 362 424 161 180 14 10 13 10
North Oaks 594 521 236 231 3 4 3 3
North St. Paul 439 442 181 180 9 8 11 11
Roseville 436 424 206 201 10 11 7 7
St. Paul 354 365 150 149 15 15 15 15
Shoreview 586 536 255 231 4 3 2 2
Vadnais Heights 455 472 202 212 8 5 8 5
White Bear Lake 458 449 191 193 7 6 10 9
White Bear 610 639 216 244 2 1 5 1
Township
Note:
St.Anthony is not included in the rankings;it is split between Ramsey& Hennepin counties.
Arden Hills Recvcliniz Performance,through 2011 Page 4
Attachment
Current Eureka Recycling Contract
(originally effective 2008) and
Amendment No. 1 (effective 2009)
,-ALN�HILLS
City of Arden Hills
City Council Work Session for September 24, 2012
As of 01/07/08
CONTRACT AGREEMENT BETWEEN
CITY OF ARDEN HILLS AND EUREKA RECYCLING
FOR RECYCLING SERVICES
Table of Contents
1. Definitions ....................................................................................................................3
2. Term of contract...........................................................................................................6
3. Annual Work Plan.........................................................................................................6
4. Annual performance review meeting to discuss recommendations for continuous
improvement................................................................................................................6
5. "Dual Stream, Plus" collection / processing system .....................................................6
6. Payment Terms............................................................................................................7
7. RFP and Contractor's Proposal....................................................................................8
GENERAL REQUIREMENTS FOR ALL COLLECTIONS ..................................................8
8. Missed collections........................................................................................................8
9. Severe weather............................................................................................................8
10. Collection hours and days............................................................................................8
11. Customer Complaints...................................................................................................9
12. City retains right to specify resident preparation instructions .......................................9
13. City shall approve Contractor's public education literature...........................................9
14. Ownership of Work Product .........................................................................................9
15. Weighing of loads.......................................................................................................10
16. Monthly and annual reports........................................................................................10
17. Ownership of recyclables...........................................................................................10
18. Scavenging prohibited................................................................................................10
19. Cleanup of spillage or blowing litter............................................................................11
20. Recyclable materials required to be transported to markets; Disposal prohibited......11
21. Designated primary glass market...............................................................................11
22. Processing facilities must be specified.......................................................................11
23. Estimating materials composition as collected...........................................................11
24. Estimating process residuals......................................................................................12
25. Lack of adequate market demand..............................................................................12
1
As of 01/07/08
26. Vehicle requirements..................................................................................................12
27. Personnel Requirements............................................................................................13
28. Licenses and Permits.................................................................................................13
29. Performance monitoring.............................................................................................13
30. Liquidated damages...................................................................................................13
31. Damage to Property...................................................................................................14
32. Recycling Collection...................................................................................................14
CURBSIDE COLLECTION REQUIREMENTS..................................................................15
33. Weekly Collection.......................................................................................................15
34. Point of collection.......................................................................................................15
35. Curbside collection schedule deadline.......................................................................15
36. Procedure for handling non-targeted materials..........................................................15
37. New Materials to be Added in 2008............................................................................16
MULTI FAMILY COLLECTION REQUIREMENTS............................................................16
38. Contract Amendment for Multi-Family Collection .......................................................16
INSURANCE AND OTHER LEGAL REQUIREMENTS ....................................................16
39. Insurance ...................................................................................................................16
40. Transfer of interest.....................................................................................................17
41. Non-Assignability and Bankruptcy...............................................................................17
42. Dispute resolution and arbitration procedures............................................................18
43. General compliance ...................................................................................................18
44. Independent contractor ......................................................................•.......................18
45. Hold harmless ............................................................................................................18
46. Accounting standards.................................................................................................18
47. Retention of records...................................................................................................19
48. Data practices ............................................................................................................19
49. Inspection of records..................................................................................................19
50. Applicable law............................................................................................................19
51. Contract termination...................................................................................................19
52. Employee working conditions and Contractor's safety procedures............................19
53. Contract amendments................................................................................................20
2
As of 01/07/08
This Agreement is made this 14th day of January 2008, between the City of Arden
Hills, 1245 West Highway 96, Arden Hills, Minnesota 55112 (the "City") and The
Neighborhood Recycling Corporation, Inc. (D/B/A "Eureka Recycling"), a Minnesota non-profit
corporation, with its current local place of business at 2828 Kennedy Street NE, Minneapolis,
Minnesota 55413 (the "Contractor").
WITNESSETH:
WHEREAS, the City supports a comprehensive residential recycling program and
desires that high-quality recycling services be available to all its residents; and
WHEREAS, the City supports curbside recycling as part of an overall landfill
abatement program; and
WHEREAS, Ramsey County has funding available for such residential recycling
services; and
WHEREAS, the Contractor has submitted a proposal for comprehensive recycling
services to the City;
NOW, THEREFORE, the City and Contractor mutually agree as follows, in
consideration of the mutual promises and covenants contained herein:
1. Definitions
1,1 "Aluminum cans"
Disposable containers fabricated primarily of aluminum, commonly used for soda, beer, juice,
water or other beverages.
1.2 "City's annual recycling public education flyer"
The City publishes an annual public education flyer that contains the following recycling
information for City residents:
• Annual calendar and map of curbside recycling districts for "single family
dwellings"
• List of materials to be included for recycling
• List of materials excluded that cannot be recycled in the City's program
• General information about curbside recycling and multi-family recycling
instructions
• How to prepare materials.
1.3 "City's designated contact person"
The City has designated the Recycling Coordinator as the City's current contact for
management and administration of this Agreement.
3
As of 01/07/08
1.4 "City-designated recyclables"or "Recyclable materials"or"Recyclables"
The following recyclable materials: aluminum cans; steel cans; milk cartons, aseptic
packaging, gable top packages, juice boxes, glass jars and bottles; paper recyclables; plastic
bottles; textiles; and corrugated cardboard as defined and further described in the "City's
annual recycling public education flyer". This list of recyclable materials can be amended
through negotiation between the City and its Contractor at any time within the duration of the
contract term. Such negotiations must be reduced to a written amendment to this Agreement
and duly executed before it shall go into effect.
1.5 "Collection"
The aggregation and transportation of recyclable materials from the place at which it is
generated and includes all activities up to the time when it is delivered to a recycling facility.
1.6 "Contractor"
The City's recycling service Contractor under the new contract beginning operation on March,
1, 2008.
1.7 "Corrugated cardboard"
Cardboard material with double wall construction and corrugated separation between walls
but not plastic, wax or other coated cardboard.
1.8 "Curbside recycling bins"
Uniform curbside recycling bins (e.g., green, plastic recycling "tubs") supplied by the City in
which recyclables can be stored and later placed for curbside collection, as specified by the
City. The recycling containers remain the property of the property owner.
1.9 "Curbside recycling service"
The recycling collection service, together with related public education and other customer
services, specified within the September 24, 2007, RFP utilizing curbside recycling bins.
Multi-family dwellings may receive curbside recycling service as selected by the City and the
Contractor.
1.10 "Glass jars and bottles"
Glass jars, bottles, and containers (lids/caps and pumps removed)that are primarily used for
packing and bottling of food and beverages.
1.11 "Market demand"
The economic and technical capacity of markets to use recyclable material to make new
products.
1.12 "Markets"
Any person or company that buys (or charges)for recycling of specified materials and may
include, but are not limited to: end-markets, intermediate processors, brokers and other
recycling material reclaimers.
4
As of 01/07/08
1.13 "Multi-family recycling service"
Recycling collection service, together with related public education and other customer
services, provided to multi-family residents that utilize multi-family recycling containers (i.e.,
carts) and use multi-family recycling stations.
In general, multi-family recycling service shall be provided to MFD's with eleven (11) units or
more per building. In general, MF dwellings with two (2)to ten (10) units per building shall be
provided with curbside collection service utilizing curbside bins.
1.14 "Non targeted materials"
Non-recyclable materials that are not included in the City's recycling program. Examples of
typical non-targeted items include (but are not limited to): pumps on plastic bottles, ceramic
material in glass streams, pizza cartons in corrugated cardboard streams, etc.
1.15 "Paper"
Paper includes the following: newspapers (including inserts); household office paper and
mail; boxboard; old corrugated cardboard; phone books; Kraft bags; pop/beer boxes and
magazines/catalogs. No boxboard containers used for food product storage in refrigerators
or freezers are included.
1.16 "Plastic bottles"
Plastic bottles shaped with a neck. Plastic lids, caps, rings and pumps are not included.
Recyclable plastic bottles shall be identified on the bottom with the SPI plastic codes#1
(PETE) and #2 (HDPE) including bottles containing: liquor; milk; juice; soft drinks; water;
certain foods; soap and cosmetics.
1.17 "Process residuals"
The normal amount of material that can not be economically recycled due to material
characteristics such as size, shape, color, cross-material contamination, etc. and must be
disposed as mixed municipal solid waste. Process residuals include subcategories of
process residuals including but not limited to bulky items, contaminants, sorted tailings, floor
sweepings and rejects from specific processing equipment (e.g. materials cleaned from
screens, etc). "Process residuals"does not include clean, separated products that are
normally processed and prepared for shipment to markets as commodities but are of
relatively low-value because of depressed market demand conditions.
1.18 "Processing"
The sorting, volume reduction, baling, containment or other preparation of recyclable
materials delivered to the processing center for transportation or marketing purposes.
1.19 "Processing center"
A recycling facility in which recyclable materials are processed. The facility will conform to all
applicable rules, regulations and laws of state, local or other jurisdictions.
1.20 "Steel cans"
Disposable containers fabricated primarily of steel or tin used for food and beverages.
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1.21 "Textiles"
Textiles include unwanted but reusable Linens: towels, sheets, blankets, curtains, tablecloths
and clothes: including belts, coats, hats, gloves, shoes and boots that are clean and free of
mold, mildew and excessive stains. Textiles must be dry.
1.22 "Work Plan from Contractor"
The annual work plan proposal for recycling system improvements submitted from the
Contractor and approved by the City.
2. Term of contract
The term of the new recycling contract will be a period of three (3) years from March 1, 2008
through March 1, 2011 with two (2) one-year options to renew upon mutual agreement of the
two parties prior to expiration of the contract .
3. Annual Work Plan
The Contractor shall submit an annual work plan proposal no later than February 1 st for the
upcoming calendar year to outline key priorities for system improvements. Public education
tools shall be itemized and approximate timelines described. Other service improvements
may also be included in the work plan. The City shall review and approve the work plan by
no later than March 1 st each year. The annual work plan shall be incorporated by reference
as an amendment to this contract.
4. Annual performance review meeting to discuss recommendations for
continuous improvement
Upon receipt of the Contractors annual report, the City shall schedule an annual meeting with
the Contractor and a City's committee. The objectives of this annual meeting will include (but
not limited to):
• Review Contractor's annual report, including trends in recovery rate and
participation.
• Efforts the Contractor has made to expand recyclable markets.
• Review Contractor's performance based on feedback from residents to the
Environment Committee members and/or City staff.
• Review Contractor's recommendations for improvement in the City's recycling
program, including enhanced public education and other opportunities as contained
within the annual work plan for the upcoming year.
• Review City staff recommendations for Contractor's service improvements.
• Discuss other opportunities for improvement with the remaining years under the
current contract.
5. "Dual Stream, Plus" collection / processing system
Dual stream recyclables collection and processing services shall be the basic service system
design for this contract. Under this dual stream design, residents shall continue to be
instructed to separate recyclables into two primary groups of materials: (1) all food and
beverage containers, including: glass, metal, aseptic, gable-top and plastic bottles; and (2) all
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paper fiber products, including: newspapers, boxboard, magazines, pop/beer boxes, mixed
mail, catalogs, phone books, Kraft bags and corrugated cardboard.
In addition, residents may place clean, reusable textiles out separately in plastic bags as
outlined in Section 34 of this Agreement. Under this "dual stream plus" system design,
processing shall also be by the categories as collected: paper separated from containers
separated from textiles.
The Contractor shall not make any changes to the dual stream collection or processing
systems without written approval of the City.
6. Payment Terms
The Contractor will invoice the City of Arden Hills on a monthly basis and the City will pay the
contractor no later than net 30 days of receipt of the invoice. The billing system will include
the following elements:
6.1 Compensation to Contractor.
City agrees to pay Contractor$2.95 per residential dwelling unit per month in 2008 for weekly
curbside collection, processing and marketing of recyclables. For 2008 the City certifies that
there are 2,560 curbside units that will receive service. The City will notify the Contractor by
Feb. 1 of each year what the certified number of curbside units will be for the subsequent
year.
The City agrees that prices for service will increase each year the Consumer Price Index for
the Upper Midwest as determined by the Federal Reserve Bank of Minneapolis. The City will
notify the Contractor by the last week of December what the compensation rate will be for the
subsequent calendar year.
6.2 Materials Sales Revenue Share
A composite credit for the following material sales revenue share:
6.2.1 All Paper Grades
Paper prices shall be based on the Official Board Markets (OBM) "Yellow Sheet," Chicago
region for Old Newspapers (ONP)# 8, high side of range. The Contractor shall pay the City
50% of this OBM index for all grades of paper collected after a processing fee of$75 per ton.
6.2.2 Aluminum
Aluminum prices shall be based on the American Metal Market (AMM), Aluminum (1st issue
of the month), high side nonferrous scrap prices: scrap metals, domestic aluminum
producers, buying prices for processed used aluminum cans in carload lots, f.o.b. shipping
point, used beverage can scrap. The Contractor shall pay the City 50% of this AMM
aluminum index after a processing fee of$150 per ton.
The Contractor shall provide copies of the referenced OBM market index and AMM market
index with each monthly statement. The Contractor shall provide a detailed explanation of
how the material splits are calculated to derive the paper and aluminum tonnage estimates.
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The City or the Contractor may propose other revenue sharing commodities and
corresponding proposed pricing formulae, at any time during the duration of the contract.
The parties shall enter into negotiations in good faith and any new revenue sharing
agreement shall be reduced to writing in the form of an amendment to the contract.
6.3 Other
Any other mutually agreed upon charges or credits.
7. RFP and Contractor's Proposal
The contents of the City's RFP (as of Sept. 24, 2007) and the Contractor's proposal are part
of the contractual obligations and are incorporated by reference into this contract. If any
provision of the contract is in conflict with the referenced RFP or proposal, the contract shall
take precedent.
GENERAL REQUIREMENTS FOR ALL COLLECTIONS
The following general requirements are pertinent to all recycling collections (i.e., both
curbside recycling collection and multi-family recycling collection services). However, the City
acknowledges that collection service frequencies and other factors will vary between
residential and multi family collection programs.
S. Missed collections
The Contractor shall have a duty to pick up missed recycling collections. The Contractor
agrees to pick up all missed collections on the same day the Contractor receives notice of a
missed collection, provided notice is received by the Contractor before 11:00 a.m. on a
business day. With respect to all notices of a missed collection received after 11:00 a.m. on
a business day, the Contractor agrees to pick up that missed collection before 6:00 p.m. on
the following business day.
9. Severe weather
The Contractor may postpone recycling collections due to severe weather at the sole
discretion of the Contractor. "Severe Weather" shall include, but shall not be limited to those
cases in which the temperature at 6:00 a.m. is minus twenty (-20) degrees Fahrenheit or
colder. If collections are so postponed, the Contractor shall notify the City. Upon
postponement, collection will be made on a day agreed upon between the Contractor and the
City.
10. Collection hours and days
The City requires all such collections to begin no sooner than 7 a.m. and shall be complete
by 6 p.m. Collection of recyclable materials from households north of 1-694 will take place
every Wednesday and households south of 1-694 will take place every Tuesday. During pre-
selected holiday weeks, collection days will take place one day later. The Contractor may
request one time City authorization of exceptions to these time and day restrictions (e.g.,
pursuant to the "Severe Weather" section 9 above). The Contractor must request such
exception prior to the requested collection event and specify the date, time and reason for the
exception.
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11. Customer Complaints
The Contractor shall establish and maintain, in a location approved by the City, an office with
continuous supervision for accepting complaints and customer calls. The office shall be in
service with continuous supervision during the hours of 8 a.m. until 5:00 p.m. on all days of
collection as specified in this Agreement. The address and telephone numbers of such
office, and ten (10) days prior notice of changes therein, shall be given to the City in writing.
The address of this office as of the execution of the contract is 2828 Kennedy Street NE,
Minneapolis, Minnesota 55413.
Complaints on service will be taken and collected by the City and the Contractor. The City
will notify the Contractor of all complaints it receives. The Contractor is responsible for
corrective actions. The Contractor shall answer all complaints courteously and promptly.
Each month the Contractor shall provide the City with the following reports:
• A list of all customer complaints, including a description of how each complaint was
resolved.
• A list of all addresses where education tags were left for residents and why the tags were
left.
• A list of all missed pick ups reported to the Contractor.
The monthly reports shall be sent by mail, fax or e-mail to the City's Recycling Coordinator.
12. City retains right to specify resident preparation instructions
The Contractor shall agree that it is the City's sole right to clearly specify the resident sorting
and setout requirements. The City shall publish and distribute, on an annual basis, the
detailed recyclables preparation instructions for its residents as part of its annual public
education flyer. However, the City agrees to confer with the Contractor before the annual
flyer distribution.
13. City shall approve Contractor's public education literature
The Contractor shall conduct its own promotions and public education to increase
participation and improve compliance with City-specified resident preparation instructions as
per the public education elements of the annual work plan At a minimum, this shall include:
production and distribution of an annual flyer to each home; and distribution of"resident
education tags" to be left by curbside collection crews if any non-targeted material is rejected
and left at the curb. The Contractor shall submit a draft of any public education literature for
approval by the City, at least one (1) month before printing and release of any such literature.
14. Ownership of Work Product
Ownership of all drawings, designs, proprietary materials, and other work products prepared,
produced or developed in performance of this Contract, including those in electronic forms,
shall be retained by the Contractor. Contractor agrees that all right, title, and interest in all
copyrightable material which Contractor shall conceive or originate, either individually or
jointly with others, and which arises out of the performance of this Contract, shall be usable
by, and on behalf of the city by The Contractor, for the duration of the contract period and any
subsequent extensions.
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Ownership of all reports, and physical copies of work products prepared or produced in
performance of this Contract, excluding those in electronic form, shall be retained by The City
upon completion or termination of the project and final payment to the Contractor.
15. Weighing of loads
Contractor will keep accurate records consisting of an approved weight slip with the date,
time, collection route, driver's name, vehicle number, tare weight, gross weight and net
weight for each loaded vehicle. Collection vehicles will be weighed after completion of a
route or at the end of the day, whichever occurs first. A copy of each weight ticket shall be
kept on file and made available for inspection upon request by the City.
16. Monthly and annual reports
The Contractor will submit to the City monthly reports and annual reports. At a minimum, the
Contractor shall include the following information:
• Gross amounts of materials collected, by recyclable material (in tons).
• Net amounts of materials marketed, by recyclable material (in tons).
• Amounts of"process residuals" disposed (in tons).
• Recycling service fee (based upon contracted price per household).
• Revenue share credits back to the City (if any).
Monthly reports shall be due to the City by the 15th day of each month. Annual reports shall
be due by January 31. The Contractor will be encouraged to include in its annual report
recommendations for continuous improvement in the City's recycling program (e.g., public
education, multi-family recycling, etc.).
17. Ownership of recyclables
Ownership of the recyclables shall remain with the person placing them for collection until
Contractor's personnel physically touches them for collection, at which time the ownership of
the recyclables shall transfer to Contractor.
18. Scavenging prohibited
All recyclable materials placed for collection shall be owned by and are the responsibility of
the occupants of residential properties until the Contractor handles them. Upon collection of
the designated recyclable materials by the Contractor, the recyclable materials become the
property and responsibility of the Contractor.
It is unlawful for any person other than the City's recycling Contractor or owner's independent
hauler to collect, remove, or dispose of designated recyclables after the materials have been
placed or deposited for collection in the recycling containers. The owner, owner's
employees, owner's independent hauler's employees, or City's recycling Contractor's
employees may not collect or"scavenge" through recycling in any manner that interferes with
the contracted recycling services.
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19. Cleanup of spillage or blowing litter
The Contractor shall clean up any material spilled or blown during the course of collection
and/or hauling operations. All collection vehicles shall be equipped with at least one broom
and one shovel for use in cleaning up material spillage. Designated recyclables shall be
transported in a covered vehicle so that the recyclables do not drop or blow onto any public
street or private property during transport.
20. Recyclable materials required to be transported to markets; Disposal
prohibited
Upon collection by the City's recycling Contractor, the City's Contractor shall deliver the
designated recyclables to a recyclable material processing center, an end market for sale or
reuse, or to an intermediate collection center for later delivery to a processing center or end
market. It is unlawful for any person to transport for disposal or to dispose of designated
recyclables in a mixed municipal solid waste disposal facility. The Contractor shall not
landfill, incinerate, compost or make fuel pellets out of the recyclable materials.
21. Designated primary glass market
The City and Contractor hereby agree that Anchor Glass Corp. (Shakopee, MN) shall be the
primary market of choice for glass bottles and jars collected from the City's recycling
program. The Contractor shall develop a proposed glass marketing contingency plan in
writing for review, comment and approval by the City. This contingency plan shall be based
on recycling glass into markets with the highest and best use of this commodity. The
Contractor shall provide an annual assessment of the Anchor glass market as part of its
annual report to the City.
The Contractor shall provide as much notice as possible if the Anchor glass plant closes,
stops accepting recyclable glass cutlet, or otherwise becomes economically unfeasible as the
primary glass market outlet. If Anchor is no longer a viable primary market for glass, and if
the Contractor must adjust its glass processing and/or marketing operations, the Contractor
may submit a proposed per ton fee amendment to the City. This per ton fee amendment
proposal must include a detailed cost justification for any fee increase. Once the fee
amendment proposal is submitted, the City shall have 30 days to negotiate a final fee
amendment with the Contractor for approval by the City Council.
22. Processing facilities must be specified
The Contractor shall assure the City that adequate recyclable material processing capacity
will be provided for City material collected. The Contractor shall provide written notice to the
City at least 60 days in advance of any substantial change in these or subsequent plans for
receiving and processing recyclables collected from the City.
23. Estimating materials composition as collected
The Contractor shall conduct at least one materials composition analysis of the City's
recyclables each year to estimate the relative amount by weight of each recyclable
commodity by grade. The results of this analysis shall include: (1) percent by weight of each
recyclable commodity by grade as collected from the City; (2) relative change compared to
the previous year's composition; and (3) a description of the methodology used to calculate
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the composition, including number of samples, dates weighed, and City route(s) used for
sampling. The Contractor shall provide the City with a copy of each such analysis.
24. Estimating process residuals
The Contractor shall provide the City a written description of the means to estimate process
residuals derived from the City's recyclables. This written description shall be reviewed and
approved in writing by the City. This written description shall be updated by the Contractor `
immediately after any significant changes to the processing facilities used by the Contractor.
The Contractor shall record the weight and generator for all materials entering the processing
facility on a daily, monthly and annual basis. These records shall be made available to the
City upon request.
The Contractor shall report total weight of material disposed as shipped out to a mixed
municipal solid waste facility compared to the total material shipped out each month form its
processing facility.
25. Lack of adequate market demand
In the event that the market for a particular recyclable ceases to exist, or becomes
economically depressed that it becomes economically unfeasible to continue collection,
processing and marketing of that particular recyclable, the City and the Contractor will both
agree in writing that it is no longer appropriate to collect such item before collection ceases.
The Contractor shall give the City as much notice as possible about the indications of such
market condition changes. The Contractor may then initiate the formal process by sending a
letter to the City notifying the City that the recyclable item should be discontinued from
collection. Upon receipt of the Contractor's notice, the City shall have 30 days to review and
negotiate a contract amendment relating to disposal of such a recyclable commodity that
does not have adequate market demand.
After this 30 day period, the City shall pay the costs of all disposal of any item collected that
is deemed not recyclable by Contractor and the City due to lack of adequate market demand
until the City has approved that collection be discontinued for those materials. After the City
agrees to discontinue collection of those materials, the Contractor is responsible for the costs
of all disposal of any item collected that is deemed not recyclable by Contractor and the City
due to lack of adequate market demand. The City and Contractor shall specify a date in this
written contract amendment to cease collection of the recyclable item in question. The
Contractor shall at all times be under a duty to minimize recyclables ending up in landfill or
disposal at other facilities receiving mixed municipal solid waste. If disposal of any recyclable
commodity becomes necessary, upon receiving written permission from the City, the
Contractor shall dispose of the recyclable materials at a facility specified in writing by the City
or an alternative agreed upon by the City and the Contractor.
26. Vehicle requirements
Each collection vehicle shall be equipped with the following:
• The Contractor's vehicles shall be marked with the name and telephone number of
the Contractor prominently displayed on both sides of the truck. The lettering must
be at least 3 inches in height.
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• 2-way radio.
• First aid kit.
• Approved fire extinguisher.
• Warning flashers.
• Warning alarms to indicate movement in reverse.
• Sign on rear of vehicle which states "This vehicle makes frequent stops".
• Broom and shovel for cleaning up spills.
All of the required equipment must be in proper working order. All vehicles must be
maintained in proper working order and be as clean and free of odors as possible.
27. Personnel Requirements
Contractor shall retain sufficient personnel and equipment to fulfill the requirements and
specifications of this Agreement. Contractor's personnel shall:
• Conduct themselves at all times in a courteous manner with the general public.
• Make a concerted effort to have at all times a presentable appearance and attitude.
• Perform their work in a neat and quiet manner and clean up all recyclables spilled
in collection and hauling operations
• Avoid damage to property.
• Not perform their duties or operate vehicles while consuming alcohol or illegally
using controlled substances or while under the influence of alcohol and/or such
substances.
28. Licenses and Permits
The Contractor shall ensure that all driver and truck licenses and permits shall be current and
in full compliance with local, state and federal laws and regulations. Any processing facility
used to handle material from the City of Arden Hills must have current permits and licenses
as required by the appropriate city, county, state and federal laws and ordinances. Contractor
shall make available for inspection all such licenses and permits upon request by the City.
29. Performance monitoring
The City will monitor the performance of the Contractor against goals and performance
standards required within this the and in the contract. Substandard performance as
determined by the City will constitute non-compliance. If action to correct such substandard
performance is not taken by the Contractor within 60 days after being notified by the City, the
City will initiate the contract termination procedures.
30. Liquidated damages
The Contractor shall agree, in addition to any other remedies available to the City, that the
City may withhold payment from the Contractor in the amounts specified below as liquidated
damages for failure of the Contractor to fulfill its obligations:
1. Failure to respond to legitimate service complaints within 24 hours in a reasonable
and professional manner - $50 per incident.
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2. Failure to collect properly notified missed collections - $250 per incident.
3. Failure to provide monthly and annual reports - $100 per incident.
4. Failure to complete the collections within the specified timeframes without proper
notice to the city - $100 per incident.
5. Failure to clean up from spills during collection operations - $250 per incident plus
any costs incurred by the City.
6. Failure to report on changes in location of recyclables processing operations -
$250 per incident.
7. Failure to provide written description of the means to estimate relative amount of
process residuals derived from the City's recyclables - $100 per incident.
8. Exceeding any maximum process residuals rate that may be negotiated as part of
a final contract agreement- $1,000 per exceedence.
9. Failure to receive City written approval of changes to the "dual stream" collection
and processing systems prior to implementing any such change - $5,000.
10.Failure to conduct annual composition analysis - $100 per incident.
These amounts will be for liquidated damages for losses suffered by the City and not
penalties.
31. Damage to Property
The Contractor shall take all necessary precautions to protect public and private property.
Except for reasonable wear and tear, the Contractor shall repair or replace any private or
public property, including, but not limited to sod, mailboxes, or recycling bins, which are
damaged by the Contractor. Such property damage shall be addressed for repair or
replacement, at no charge to the property owner, within forty-eight(48) hours with property of
the same or equivalent value at the time of the damage.
If the Contractor fails to address the repair or replacement damaged property within forty-
eight (48) hours, the City may, but shall not be obligated to, repair or replace such damaged
property, and the Contractor shall fully reimburse the City for any of its reasonably incurred
expenses. The Contractor shall reimburse the City for any such expenses within ten (10)
days of receipt of the City's invoice.
32. Recycling Collection
The Contractor shall conform to the following provisions when collecting recyclables in the
City:
1. The Contractor shall structure routes so that lighter-loaded trucks travel on the
streets with poorer construction. The City shall provide road condition information
to the Contractor.
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2. The Contractor shall begin their routes with as small a volume of recyclables in
their trucks as practicable.
3. The Contractor shall assist the City by alerting the City Staff of unlicensed recycling
haulers who may be coming into Arden Hills.
CURBSIDE COLLECTION REQUIREMENTS
The following collection requirements are for curbside recycling services only and do not
pertain to multi-family recycling services.
33. Weekly Collection
The Contractor shall collect curbside recycling materials weekly.
34. Point of collection
All curbside collection service will occur at the curbside (i.e., no alley collections of residential
recyclables are allowed for residents with curbside collection service).
Walk Up Service
A service for seniors, disabled and/or special needs residents who request for special service
where the driver will walk up to the resident's garage door, stoop or other designated spot to
collect recyclable material for loading onto the truck. The driver then returns the bins/carts to
the same location. The City will compile a list of such service requests and present to the
contractor 30 days prior to the first collection for those residents who will receive the service
upon start of contract. The Contractor will take calls directly from residents who request this
service and add them to the walk up service list as needed throughout the duration of the
contract.
35. Curbside collection schedule deadline
If the Contractor determines that the collection of recyclables will not be completed by 6:00
p.m. on the scheduled collection day, the Contractor shall notify the City by 4:00 p.m. that
same day and request an extension of the collection hours. The Contractor shall inform the
City of the areas not completed, the reason for non-completion and the expected time of
completion. If the City's contract-designated contact person cannot be reached, the
Contractor will request the City Manager.
36. Procedure for handling non-targeted materials
If Contractor determines that a resident has set out non-targeted materials,the driver shall
use the following procedure:
1. Contractor shall leave the non-targeted materials in the resident's curbside
recycling bin and leave an "education tag" indicating acceptable materials and the
proper method of preparation.
2. The driver shall record the address and the Contractor shall report the address to
the City within the monthly report.
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37. New Materials to be Added in 2008
The City and the Contractor have agreed to add three new materials to the curbside
collection program: pop/beer boxes and textiles.
The pop/beer boxes shall be added to the paper stream. These items should be flattened and
placed by the resident unbundled with the other papers (newspaper, magazines, etc.)
Aseptic and Gabletop packaging (including milk cartons and juice boxes) will be added to the
bottle and can stream.
Residents shall place textiles separately in plastic garbage bags or other bags as determined
by the City. Each bag or set of bags will have a identifying marker clearly identifying the
materials for collection. Residents will be instructed to avoid the use of paper bags and
boxes; however, materials set out in these containers are acceptable provided that the
materials have not been exposed to rain or snow. If the textiles are wet the Contractor will
not collect those items.
MULTI FAMILY COLLECTION REQUIREMENTS
38.Contract Amendment for Multi-Family Collection
If the City were to amend the recycling contract in the future to include one or more of the
MFDs and/or the manufactured home park, the City would provide at least a 90 day
advanced notification to the Contractor and would schedule a meeting to discuss possible
changes in price per household, revenue sharing arrangement, and/or collection schedule
INSURANCE AND OTHER LEGAL REQUIREMENTS
39.Insurance
Insurance secured by the Contractor shall be issued by insurance companies acceptable to
the City and admitted in Minnesota. The insurance specified may be in a policy or policies of
insurance, primary or excess. Such insurance shall be in force on the date of execution of
the contract and shall remain continuously in force for the duration of the contract. The
Contractor shall have the City of Arden Hills named as an additional insured on each
insurance policy specified below, unless the Contractor submits in writing this is not feasible
for a specific insurance policy. The Contractor shall then provide certificates of insurance to
the City by approximately December 15 of each year. The Contractor and its sub-contractors
shall secure and maintain the following insurance:
39.1 Workers Compensation Insurance
Workers Compensation insurance shall meet the statutory obligations with Coverage 13-
Employers Liability limits of at least $100,000 each accident, $500,000 disease - policy limit
and $100,000 disease each employee.
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39.2 Commercial General Liability insurance
Commercial General Liability insurance shall be at the limits of at least $1,000,000 general
aggregate, $1,000,000 personal and advertising injury, $1,000,000 each occurrence $50,000
fire damage and $1,000 medical expense for any one person. The policy shall be on an
"occurrence" basis, shall include contractual liability coverage and the City shall be named an
additional insured.
This insurance includes up to $10,000 expenses to extract pollutants from land or water at
the "premises" if the discharge, dispersal, seepage, migration, release, escape or emission of
the pollutants is caused by or results form a covered cause of loss.
39.3 Commercial Automobile Liability insurance
Commercial Automobile Liability insurance covering all owned, non-owned and hired
automobiles with limits of at least $1,000,000 per accident. This insurance includes a cause
of loss where there is a spill of fuels and lubricants used in the vehicle for its operation.
39.4 Director's & Officers Insurance or Errors & Omissions
Director's & Officers Insurance or Errors & Omissions insurance providing coverage for
"wrongful act" any actual or alleged error, misstatement, misleading statement, act or
omission, neglect or breach of duty. The insurance policy provides $1,000,000 each
occurrence and $1,000,000 aggregate limit of liability for each year.
Acceptance of the insurance by the City shall not relieve, limit or decrease the liability of the
Contractor. Any policy deductibles or retention shall be the responsibility of the Contractor.
The Contractor shall control any special or unusual hazards and be responsible for any
damages that result from those hazards. The City does not represent that the insurance
requirements are sufficient to protect the Contractor's interest or provide adequate coverage.
Evidence of coverage is to be provided on a City-approved Insurance Certificate. A thirty-
(30) date written notice is required if the policy is canceled, not renewed or materially
changed. The Contractor shall require any of its subcontractors to comply with these
provisions.
40. Transfer of interest
The Contractor shall not assign any interest in the contract, and shall not transfer any interest
in the contract, either by assignment or novation, without the prior written approval of the City.
The Contractor shall not subcontract any services under this contract without prior written
approval of the City. Failure to obtain such written approval by the City prior to any such
assignment or subcontract shall be grounds for immediate contract termination.
The Contractor currently subcontracts to provide service to old corrugated containers (OCC)
customers that require dumpster capacity. This subcontract is annual and the Contractor will
notify the City in writing if there is a change in providers.
41. Non-Assignability and Bankruptcy
The parties hereby agree that the Contractor shall have no right to assign or transfer its rights
and obligations under said agreement without written approval from the City. In the event, the
Contractor, its successors or assigns files for Bankruptcy as provided by federal law, this
agreement shall be immediately deemed null and void relieving all parties of their contract
rights and obligations.
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42. Dispute resolution and arbitration procedures
The parties agree that any controversy or claim arising out of or relating to this agreement or
the breach thereof, shall be settled, at the option of the Contractor by arbitration in
accordance with the Rules of the American Association of Arbitration and judgment upon the
award by the Arbitrator(s) may be entered in any court with jurisdiction thereof.
43. General compliance
The Contractor agrees to comply with all applicable Federal, State and local laws and
regulations governing funds provided under this contract.
The Contractor pays its employees a prevailing wage based on the recycling industry in the
state of Minnesota and Hennepin County. The Contractor does not use temporary labor
arrangements to avoid paying a living wage. All of our employees, permanent and temporary,
receive a paycheck that meets or exceeds living wage standards. Additionally, the contractor
provides health insurance for all fulltime employees and a pro rata share for employees
working more than 20 hours but less than 40 hours a week.
44. Independent contractor
Nothing contained in this agreement is intended to, or shall be construed in any manner, as
creating or establishing the relationship of employer/employee between the parties. The
Contractor shall at all times remain an independent Contractor with respect to the services to
be performed under this Contract. Any and all employees of Contractor or other persons
engaged in the performance of any work or services required by Contractor under this
Contract shall be considered employees or sub-contractors of the Contractor only and not of
the City; and any and all claims that might arise, including Worker's Compensation claims
under the Worker's Compensation Act of the State of Minnesota or any other state, on behalf
of said employees or other persons while so engaged in any of the work or services provided
to be rendered herein, shall be the sole obligation and responsibility of Contractor.
45. Hold harmless
The Contractor agrees to defend, indemnify and hold harmless the City, its officers and
employees, from any liabilities, claims, damages, costs, judgments, and expenses, including
attorney's fees, resulting directly or indirectly from an act or omission of the Contractor, its
employees, its agents, or employees of subcontractors, in the performance of the services
provided by this contract, any resulting environmental liability that is a result of this contract or
by reason of the failure of the Contractor to fully perform, in any respect, any of its obligations
under this contract. If a Contractor is a self-insured agency of the State of Minnesota, the
terms and conditions of Minnesota Statute 3.732 et seq. shall apply with respect to liability
bonding, insurance and liability limits. The provisions of Minnesota Statutes Chapter 466
shall apply to other political subdivisions of the State of Minnesota.
46. Accounting standards
The Contractor agrees to maintain the necessary source documentation and enforce
sufficient internal controls as dictated by generally accepted accounting practices to properly
account for expenses incurred under this contract.
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47. Retention of records
The Contractor shall retain all records pertinent to expenditures incurred under this contract
for a period of three years after the resolution of all audit findings. Records for non-
expendable property acquired with funds under this contract shall be retained for three years
after final disposition of such property.
48. Data practices
The Contractor agrees to comply with the Minnesota Government Data Practices Act and all
other applicable state and federal laws relating to data privacy or confidentiality. The
Contractor must immediately report to the City any requests from third parties for information
relating to this Agreement. The City agrees to promptly respond to inquiries from the
Contractor concerning data requests. The Contractor agrees to hold the City, its officers, and
employees harmless from any claims resulting from the Contractor's unlawful disclosure or
use of data protected under state and federal laws.
All Proposals shall be treated as non-public information until the proposals are opened for
review by the City. At that time the Proposals and their contents become public data under
the provisions of the Minnesota Government Data Practices Act, Minn. Stat. C. 13.
49. Inspection of records
All Contractor records with respect to any matters covered by this agreement shall be made
available to the City or its designees at any time during normal business hours, as often as
the City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant
data.
50. Applicable law
The laws of the State of Minnesota shall govern all interpretations of this contract, and the
appropriate venue and jurisdiction for any litigation which may arise hereunder will be in
those courts located within the County of Ramsey, State of Minnesota, regardless of the
place of business, residence or incorporation of the Contractor.
51. Contract termination
The City may cancel the Contract if the Contractor fails to fulfill its obligations under the
Contract in a proper and timely manner, or otherwise violates the terms of the Contract if the
default has not been cured after 60 days written notice has been provided. The City shall pay
Contractor all compensation earned prior to the date of termination minus any damages and
costs incurred by the City as a result of the breach. If the contract is canceled or terminated,
all finished or unfinished documents, data, studies, surveys, maps, models, photographs,
reports or other materials prepared by the Contractor under this agreement shall, at the
option of the City, become the property of the City, and the Contractor shalt be entitled to
receive just and equitable compensation for any satisfactory work completed on such
documents or materials prior to the termination.
52. Employee working conditions and Contractor's safety procedures
The Contractor will ensure adequate working conditions and safety procedures are in place to
comply with all applicable federal, state and local laws and regulations_ The City reserves
the right to inspect on a random basis all trucks, equipment, facilities, working conditions,
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As of 01/07/08
training manuals, records of claims for Worker's Compensation or safety violations and
standard operating procedures documents.
53. Contract amendments
Any amendments to this Agreement shall be valid only when reduced to writing, and duly
signed by the parties.
IN WITNESS WHEREOF, the parties have subscribed their names as of the date first written.
The Neighborhood Recycling Corporation, Inc.
(D/B/A "Eureka Recycling"): City of Arden Hills:
By By .9A.
Chief xecutive Officer ity Administrator
By By
Chief Op e ing Officer iviaycw-
APPROVED TO FORM
By
Cit Attorney
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}
FIRST CONTRACT AMENDMENT BETWEEN
CITY OF ARDEN HILLS AND EUREKA RECYCLING -
FOR RECYCLING SERVICES
1.0 PARTIES. This Contract Amendment is dated the 2e day of June, 2009, and is
entered into by and between the City of Arden Hills, 1245 West Highway 96, -
Arden Hills, Minnesota 55112 (the "City"), a Minnesota Statutory city, and the _
Neighborhood Recycling Corporation, Inc. (DIBIA"Eureka Recycling"), a.
Minnesota non-profit corporation, with its current local place of business at 2828
Kennedy Street NE, Minneapolis, Minnesota 55413 ("Contractor").
2.0 RECITALS.
A. The City and Contractor are parties to the Contract Agreement Between
City of Arden Hills and Eureka Recycling for Recycling Services dated
January 7, 2008 ("Contract").
B. The Parties wish to amend Sections 6 and 25 of the Contract hereinafter
specified.
3.0 TERMS AND CONDITIONS. In consideration of the undertakings herein
expressed, the City and Contractor agree as follows:
A. Section 6 and its subdivisions of the Contract are hereby amended in its
entirety to read as follows:
6. Payment Terms
The Contractor will invoice the City of Arden Hills on a monthly
basis and the City will pay the contractor no later than net 30 days
of receipt of the invoice. The billing system will include the following
elements:
6.1 Monthly.Price per Residential Dwelling Unit
City agrees to pay Contractor$2.95 per residential dwelling unit per
month in 2008 for weekly curbside collection and marketing of
recyclables. For 2008, the City certifies that there are 2,560
curbside units that will receive service. The City will notify the
Contractor by February 9 of each year what the certified number of
curbside units will be for the subsequent year.
The City agrees that the price per residential dwelling.unit will
increase each year by the Consumer Price Index for the Upper
Midwest as determined by the Federal Reserve Bank of Minneapolis
or by three (3) percent, whichever.is less. The price change shall go
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into effect on March 1 of each year. The City will notify the
Contractor by the last week of December what the compensation
rate will be for the subsequent contract year.
6.2 Materials Sales Revenue Share and Processing Fees
6.2.1 Recyclable material prices
Each month the Contractor shall calculate the revenue share for all
commodities. Those calculations shall be included as part of the
Contractor's report to the City. Contractor shall use the following
indices in determining the prices of the recyclable materials:
A. Paper grades including newsprint and inserts, magazines,
catalogs, and mixed mail shall be:
• The Official Board Markets (OBM) Yellow Sheet, Chicago
region for Old Newspapers (ONP) # 8, high side of range.
B. Old Corrugated Cardboard shall be:
• The Official Board Markets (OBM) Yellow Sheet, Chicago
region for OCC#11, high side of range.
C. Old Boxboard shall be:
• The Official Board Markets (OBM) Yellow Sheet, Chicago
region for Mixed Paper#1, high side of range.
D. Telephone books and Wet Strength Cardboard shall be:
• Market price paid by Contractor's designated customer.
E. Aluminum shall be:
• Average market price during that month paid by
Contractor's designated customer.
F. Each: clear glass, brown glass, green/blue glass: and mixed
glass shall be:
• The aggregate market price paid by Anchor Glass
Corporation's Shakopee, Minnesota plant, and/or the
Market price paid or charged by end market, averaged
based on the facility percentage composition of each type
of glass in the stream as reflected in the annual
composition study, less shipping costs to transport
materials to market.
G. Steel shall be:
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• Average market price during that month paid by
Contractor's designated customer.
H. Each plastic: PET, HDPE-natural, HDPE-colored.shall be:
• Market price paid by Contractor's designated customer. ='
6.2.2 Processing fees
The processing fee for all paper grades shall be $60.00 per ton,
which includes materials A, B, C, and D in section 6.2.1.
The processing fee for all Aluminum, Glass, Steel, and Plastic _
materials shall be $90.00 per ton, which includes materials E, F, G,
and H in section 6.2.1.
There shall be no processing fee for residual materials.
6.2.3 Revenue and processing fee formula
Revenue will be calculated by multiplying the tons of individual
material collected by the agreed upon material price as described in
section 6.2.1. Total Revenue will be calculated by adding all of the
revenue generated for each of the materials collected and
processed. Contractor shall guarantee a minimum price on all
materials of$0.00 per ton. If a particular material price is negative,
a price of$0.00 per ton shall.be used.. Processing fees, as
described in Section 6.2.2, shall apply to materials with prices of
less than $0.00 per ton.
Processing fees will be calculated by multiplying the tons of
individual material collected by the agreed upon processing fee for
each material type as described in section 6.2.2. Total Processing
Fees will be calculated by adding all of the processing fees
generated for each of the materials collected and processed.
Revenue share received by the City will be calculated by
subtracting the Total Processing Fees from the Total Revenues. If
the remainder is positive, that number represents the revenue that
shall be split between the City and the Contractor 50/50. If the
remainder is negative, that number represents the amount of
processing fees not covered by that month's revenue and will be
paid in full by the City.
6.2.4 Price reporting
The contractor shall provide copies of the OBM Market index with
each monthly statement for materials A, B, and C in section 6.2.1.
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d
For commodities where revenue is based on Market pricing, the
Contractor shall provide copies of Load Verification Forms detailing
the amount of material sold, the vendor, and the price paid. The
Load Verification Forms shall be included with the Contractor's
report to the City. Market pricing is applied to recyclable materials
D, E, F, G, and H in section 6.2.1.
The Contractor shall provide a detailed explanation of how each
material is calculated to determine material tonnage estimates.
B. Section 25 of the Contract is hereby amended in its entirety to read as
follows:
.25. Changing Market Demand
25.1 Lack of Adequate Market Demand
If the Contractor determines that there is no market for a particular
recyclable or that the market has become economically unfeasible,
the Contractor shall immediately give written notice to the City. Said
notice shall include information demonstrating the effort the
Contractor has made to find market sources and the financial
information justifying the conclusion that the market is economically
unfeasible. Economic unfeasibility is defined as a market in which
market value received for a material are less than zero (0). Upon
receipt of said notice, the Contractor and the City shall have 30
days to attempt to find a feasible market. During this period, the
Contractor shall continue to pick up the particular recyclable.
If the Contractor or the City is not able to find a market within 30
days, the City has the option to:
a) Require the Contractor to continue to collect the particular
recyclable. In such case, the City would pay the Contractor,
as additional compensation, the tipping fee at the Newport
RDF plant or a mutually agreeable alternative site. The
Contractor is required to keep accurate records of said fees
and provide the City receipts of payment,
b) Notify the Contractor to cease collection of the particular
recyclable until a feasible market is located, either by the
Contractor or by the City. The Contractor would then be
responsible for the cost of printing and distributing
educational materials explaining the market situation to
residents.
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25.2 Burdensome Processing Fees to the City
If, at its sole discretion, the City determines that processing fees
have become burdensome for a particular.recyclable, the City shall
immediately give written notice to the Contractor. Upon receipt of -
said notice, the Contractor and the City shall have 30 days to
negotiate a contract amendment that results in:
a) The removal of the processing fees for the particular
recyclable.
b) The removal of the particular recyclable from collection.
The City would then be responsible for the cost of-printing
and distributing educational materials explaining the market
situation to residents.
If a contract amendment is not negotiated within this 30 day period,
the Contractor shall be responsible for all processing fees and
tipping fees.
IN WITNESS WHEREOF, the parties have hereunto set their hands.
The Neighborhood Recycling City of Arden Hills
Corporation, Inc.
(D/B "Eureka Rec. cling):
J
By By -
C e Executive dffiter Ronal J. Mo se, C' dmimstrator
_ 11
By
C e Op a ng Offi er tanley : Har to , Mayor
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