HomeMy WebLinkAbout2C, Recycling Services Contract EN ILLS
MEMORANDUM
DATE: September 20,2010 Item 2.0
TO: Mayor& City Council
FROM: Meagan Beekman, City Planner& Recycling Coordinator
SUBJECT: Residential Curbside Recycling—Eureka Contract Extension
Requested Action
Discuss the Eureka Recycling contract and provide Staff with feedback on whether to proceed
with extending the existing contract or begin the process of soliciting proposals for a new
residential curbside recycling service provider.
Background,
The City has contracted with Eureka Recycling for curbside residential recycling services since
March L 2008. The contract provides curbside residential recycling services to most residences
in the City (Hunter Park condos, Parkshore Apartments, Cottage Villas, and Arden Manor
contract for their own recycling services). The current contract is set to expire on March 1, 2011.
The contract allows for two one-year renewal options provided that both the City and Eureka
agree to the renewal. The current contract and first amendment are included as Attachment A.
The City currently uses two-stream recycling with Eureka Recycling (sometimes referred to as
dual stream or two-sort recycling). Two-stream recycling requires residents to separate mixed
paper (newspaper,a cardboard, office paper, mail, phone books, milk and juice cartons, pop and
beer boxes, etc) from mixed rigids (cans, glass, and plastic). Eureka Recycling also allows
residents to recycle clothes and linens. In addition to these items, Eureka is working on
expanding the items that they collect and is hoping to add pizza boxes beginning next year.
Post consumer recycling markets plummeted in October 2008, and hit their lowest point in
January2009. The drop in prices significantly impacted the recycling market and has caused the
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cost of recycling services to rise dramatically. Due to the drop in the market, the City did not
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receive revenue share for several months. In June 2009, the City and Eureka Recycling amended
the original contract due to a disagreement regarding the City's responsibility for processing fees
that were not covered by revenue share. The outcome of the amendment restructured the way
the City was charged processing fees, expanded the number of items that the City collected
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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
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working Y with the City of St. Paul on a five neighborhood study dealing with the feasibility of
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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
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As of 01 i07108
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, Pius"collection/ processing system .....................................................6
6. Payment Terms------------------------------------------------------------------------------------------------------------7
7_ RFP and Contractor's Proposal------------------------------------------------------------------------------------$
GENERAL REQUIREMENTS FOR ALL COLLECTIONS ..................................................8
8. Missed collections............................................................•--•-------._...._...._..._.....__..__._....8
9. Severe weather----------------------------------------------------------------...._......-------•---------------------..8
10. Collect-ton hours and days............................................................................................8
19. Customer Complaints---------------------------------------------------------------------------------------------------9
12_ City retains right to specify resident preparation instructions .......................................9
13. City shad 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 recyctables-.................................•-------------------......-•-----....._..--------------._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-----------------------------------------------------------------------91
23_ Estimating materials composition as collected...........................................................11
24. Estimating process residuals--------------------------------------------------------------------------------------12
25_ Lack of adequate market demand------------------------------------------------------------------------------12
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20- Vehicle requirements--------------------------------------------------------------------------------------------------12
27- Personnel Requirements----------------------------------------------------- -----13
28. Licenses and Permits......................................................__--._-_--
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 c0llection..__...------------------------------------------------------------------------------------------------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............................................................1
38. contract Amendment for Multi-Family Collect-ton-------------------------------------------------------16
INSURANCE AND OTHER LEGAL REQUIREMENTS ....................................................16
39. Insurance ...-.....-------------------------------------------------------------.._---------------------------------------.._15
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 taw............................................................................................................19
51. contract termination---------------------------------------------------------------------------------------------------19
52- Employee working conditions and contractor's safety procedures............................19
53. contract amendments------------------------------------------------------------------------------------------------20
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As of o 11o7/fl8
This Agreement is made this 14"'dayof January 2008, between the City of Arden
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Hies, 1245 west Highway 96, Arden Hills, Minnesota 55112 (the"City")and The
Neighborhood Recycling corporation, Inc. (DIB/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
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services; and
WHEREAS, the contractor has submitted a proposal for comprehensive recycling
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services to the City;
NOWT 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 followingrec clin
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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-
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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"
Mass 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 reclairners.
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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.1,
carts)and use multi-family recycling stations.
In general, multi-family recycling service shall be provided to MFUs with eleven 11 units or
more per building. In general, MF dwellings with two (2)to ten (10) units per building shad 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 and
paper
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 SPl 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 lour-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 cams"
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 mast 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 Ivey 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):
i 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 sentice 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 sham 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
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systems without written approval of the City_
6. Payment Terns
The Contractor will invoice the City of Arden Hills on a monthly basis and the City will pay a 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 $2.05 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 tapper 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
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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_
7s 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 (Le., 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_
8. 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 11:40 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 cabs. The office shall be in
service with continuous supervision daring 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.
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The address of this office as of the execution of the contract is 2828 Kennedy street NE,
Minneapolis, Minnesota 55413.
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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:
s A list of all customer complaints, including a description of how each complaint was resolved
a A list of all addresses where education tags were left for residents and why the tags were
left_
m 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'§ 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 promoti0ns 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 fags"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 re ared,
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produced or developed in performance of this contract, including those in electronic farms,
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_
#.5. Weighing of loads
Contractor will keep accurate records consisting of an approved weight slip with the datel
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 shalt include the following information:
a Cross amounts of materials collected, by recyclable material (in tons)_
• Net amounts of materials marketed, by recyclable material (in tons).
0 Amounts of IL process residuals"disposed (in tons)_
Recycling service lee (based upon contracted price per household)_
• Revenge share credits back to the City (if any)_
Monthly reports shall be due to the City by the 15'h 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.
18s 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 Contracto(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
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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_ llllhl(Shakopee, 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 shalt 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
p g p Y
will be provided for City material collected_ The Contractor shad 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
Y Y
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
1�
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As of 01/07/08
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 fettering must
be at least 3 inches in height_
12
As of 01/07/08
2-way radio.
e 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 s sto "_
p
• 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.
• flake 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
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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 processingfacility
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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 b the City.
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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 00 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.
13
As of 01/07/08
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 tirnefrarnes without proper
notice to the city- $100 per incident.
5. Failure to dean up from spills during collection operations - $250 per incident plus
any costs incurred by the City.
0. 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 gear 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_
14
As of 01107108
2. The Contractor shag 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_
15
As of 01I07l08
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 shalt 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 tabletop packaging (including milk cartons and juice boxes)will be added to the
bottle and can stream_
Residents shalt 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 of 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 shaft 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 shalt have the City of Arden Hills named as an additional insured on each
insurance policy specked below, unless the Contractor submits in writing this is not feasible
for a specific insurance policy. The Contractor shalt 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 B-
Emptoyers Liability limits of at feast$100,000 each accident, $500,000 disease - policy limit
and $100,000 disease each employee_
16
As of 01 f07/08
39,2 Commercial General Liability insurance
Commercial General Liability insurance shalt 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 fora 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 feels and lubricants used in the vehicle for its op eration_ -
39.4 Director's & officers insurance or Errors & omissions
Director's & Officers Insurance or Errors & Omissions insurance providing coverage for
St 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 ender 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)9
customers that require durnpster 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
0 0
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.
17
As of 01 f07f08
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, sham 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_
44s Independent contractor
Nothing contained in this agreement is intended to, or shall be construed in any manner, as
creating or establishing the relationship of employerfemployee 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
ender 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 sect. 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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As of 01/07108
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_
43. 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
y
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 shall 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,
19
As of 01107/08
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 shah 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:
8y By
-Lim-
Chief xecutive Officer C_jity Administrator
B JB toci
Y144
'w y
Chief Ope -ng Officer MaYoF___/
APPROVED TO FORD
By
Cit Attorney
20
s
FIRST CONTRACT AMENDMENT BETWEEN
CITY of ARDEN HILLS AND EUREKA RECYC 'NG
FOR RECYCLING SERVICES
1.0 PARTIES.This contract Amendment is dated the 23 'day
Of June, 2009, and is _
entered into by and between the city of Arden Hills, 1245 west Highway 06
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Arden Hills! Minnesota 55112 (the"City', a Minnesota Statutory city, and the
Neighborhood Recycling Corporation, Inc. (DIB/A"Eureka Recycling"), a T_
Minnesota non-profit corporation, with its current local place of business at 2828
Kennedy Street NE, Minneapolis, Minnesota 55413 ("'Contractor"). _
.0 RECITALS.
A. The city and contractor are parties to the contract Agreement Between
0
City of Arden Hills and Eureka Recycling for Recycling Services dated
January 7, 2008 ("contract"}.
S. The Parties wish to amend Sections 6 and 25 of the contract hereinafter e einafter
specified.
3-0 TERMS AND CONDITIONS. In consideration of the undertakings herein
n
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 36 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 per
P Contractor$2.05 per residential dwellingunit
month in 2008 for weekly c_ urbside collection and marketing of
recyclables. For 2008T the city certifies that there are 2,560
curbside units that will receive service. The CitY wili note
_ fY the
Contractor by February 1 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
_ - 9
increase each year by the Consumer Price Index for the Upper
Midwest as determined by the Federal Reserve Batik of Minneapolis
or by three (3)percent, whichever is less. The price g
change shalt o
t
s
into effect on March I of each year- The City will notify the
Contractor by the last week of December what the compensation
a �
rate will be for the-subsequent contract gear_
b.2 Materials Sales Revenge Share and Processing Fees
6.2.1 recyclable material prices
Each month the ContraGtot shall calculate the revenge share for all
commodities. Those calculations shall be included as part of the
Contractor's report to the City_ Contractor shad use-the following -
indices in determining the prices of the recyclable materials:
A. Paper grades including newsprint and inserts ma azines
catalogs, and mixed mail.shall be:
• The official Board Markets (OBIVI) Yellow Sheet, Chicago
g
region for old Newspapers (ONP) #8, high side of range_
B. old Corrugated Cardboard shall be:
The official Board Markets (OBIVI) Yellow Sheet, oChicag
region for oCC#1 1, high side of range-
C. old Boxboard stall be:
• The official Board Markets (OBM) Yellow Sheet, Chica Q
9
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 custorer.
E. Aluminum shall be:
Average market price during that month paid by
Contractor's designated customer.
F. Bach: clear glass, brown glass, glass:lass: and mixed
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glass shall be.
• The aggregate market price paid by Anchor Mass
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 t
_ Ype
of Mass in the stream as reflected in the annual
composition study, less shipping costs to transport
materials to market-
G.. Steel shall be:
2
s _
a
•
Average market price during that month aid b
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Contractor's designated customer.
H. Each plastic. PET, HDP --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-QO per ton,
which includes materials A, 8, C, and D in section 6.2.1.
The processing fee for all Aluminum, Glass steel and Pl
astic
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 b multiplyingthe tons of individual y
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 shalt guarantee a minimum price on all
materials of$0.00 per ton_ If a particular material price is negatives
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 b multiplyingthe to
. . . � 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 addict all of the processing fees
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generated for each of the materials collected and processed.
Revenue share received b the City will be calculated
y � by
subtracting the Total Processing Fees from the Total Revenues.
If
the remainder is positiv-
e, that number represents the revenue that
shalt be split between the City and the contractor 50f50. if the
remainder is negative, that number represents the amount of
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processing fees not covered by that morth'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 wi
th
th
each monthly statement for materials A. 8, and C in section 6.2.
3
For commodities where revenue is based on Market pricin s the
Con �
Contractor shall provide copies of Load Verification Forms detailing
the amount of material sold, the vendor,-and the rice aid_ The
. P P _
Load Verification Forms shall-be included with the contractors
report to the City. Market pricing is applied to rec gable materials
Y
D, E, F, c, and H in section 0.2_1.
The Contractor shall provide a detailed a lanation
p of how each
material 'is calculated to determine material tonnage
estimates-
. 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 part�c'-
ular
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 eco -nomically
unfeasible. Economic unfeasibility is defined as a market in which
market value received for a material are less than zero o _ Don
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 Cityis not able to find a market et within 30
days, the City has the option to:
a) Require the contractor to continue to collect theparticular.
recyclable_ In such case, the city would pay the Contractor,
as additional compensation, the tipping fee at the Newport
R.DF plant or a mutually agreeable alternative site_ The
Contractor is required to keepaccurate records of said fees
es
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.
4
• a
25.2 Burdensome Processing Fees to the City
If, at its sole discretion, the City determines that processing fees
� g
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 dayperiod,
=
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 Hitts
Corporation, Inc.
(D/BJ4 "Eureka Re ding):
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e Executive ffi er Ronat J. o se, C' dministratcr
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C op �ang offi er `tame . Har to Mayor
5
ussIoUIs to redonerast toa}�tegh innovative resoceaagement and to
read waste=free toorrov by denstrating tf�at gas#e is prvetabe, notevitab ey
July 30, 2010
Meagan Beekman
Arden Hills City Hall
1245 1%est Highway 96
Arden Hills, MN 55112 T
Dear M eagan:
Thank you for taking the time to meet with me last week. I appreciated our discussion about the
partnership we have built over the last two and a half years. Eureka Recycling would be very
much in favor of continuing the partnership we have started with the City of Arden Hills and its
residents by extending our recycling collection services contract.
In the first year of our contract, the participation rate of residents in the city's recycling ro
p gram
was 72%. In 2009, participation in the program rose to 82%, one of the highest rates in
the Twin Cities!
One of the reasons for this increase in participation is the amount of communication Eureka
Recycling has with residents. Since March 2008, when our partnership began, Eureka Recycling
has been reaching out to city residents to educate them about their recycling program and provide
them with accurate and inspiring messages about how their participation benefits the environment
and the city. V e have had over 340 conversations with Arden Hills residents through our zero-
waste hotline. In addition to the annual guide to recycling that we mail each December to every
household in the city, we have received requests from residents for an additional 45 pieces of
educational information.
Our recycling collection drivers have left over 5,500 educational tags right in residents' recycling
bins to help educate them directly about how to sort their materials and about what is recyclable
in Arden Hill's recycling program. For residents who do not use recycling bins, we mailed over
100 postcards to those who needed additional information about participating in the recycling
program. This direct education is the most efficient and cost effective way to help residents fully
understand their recycling program.
Eureka Recycling was the first organization in the state to offer each city we serve a share of the
revenue made from the sale of recyclable material set out by city residents. Even in the difficult
economic.times experienced in the last few years, Arden Hills received revenue back from the
sale of material. In the very difficult year of 2009, Arden Hills received$3,325 in revenue share.
Since the beginning of our contract, the city has received over $30,000 in revenue
share.
2828 Kennedy Street NE Minneapolis,MN 55413 (651)222-7678 Fax(612)623-3277 www.eurekarecycling.org
Eureka Recycling is an affirmative action,equal opportunity employer.it is our policy to hire without discrimination based on race,creed,religion,sex,color,national origin,
sexual or affectional orientation,ancestry,familial status,age,disability,marital status or status with regard to public assistance.
Printed with soy-based ink by a Minnesota Great Printer on 100%postconsumer recycled paper that was processed without the use of chlorine.
This revenue share helps to keep the cost of the program low for the city and helps to support
other environmental and waste reduction programs in the city.
One of the reasons that Arden Hills was able to continue to receive revenue share even in hard
economic tunes, is that the quality of the material that residents set out in the city is among the
best in the state. The residual rate (amount of non-recyclable material being collected at
the curb) in Arden Hills in 2009 was 0.09%. That means that less than one tenth of one
percent of what residents set out at the curb is not recyclable. In programs in other cities that do
not partner with Eureka Recycling that number can be as high as 10-15%. This achievement is a
result of the education and outreach that Eureka Recycling and the city have done to help
residents understand their program and the benefits of their participation.
One of the important things that Eureka Recycling does to help inspire and inform residents
about the irnportance of participating in the city's recycling program is to provide them. with
information on the environmental benefits of their recycling efforts. In the first two years of our
partnership with the City of Arden Hills, residents set out over 1,500 tons of material. -%hen
material is recycled instead of being wasted, it saves the tremendous amount of the energy that
would have been required to make new, replacement products from virgin materials. This energy
saving translates into positive environmental benefits.
The recycling efforts of the residents of Arden Hills in the first two years of the contract
prevented over 3,840 metric tons of carbon dioxide from being released into the atmosphere.
This positive environmental impact is the equivalent of 1.3% of residents in Arden
Hills agreeing to give up driving their cars for the same two year period.
Eureka Recycling and the City of Arden Hills have worked together to create a recycling
program that is among the best in the state. Participation in the program is very high. The quality
of the materials being collected is very high and the city is receiving revenue share back to help
keep the cost of the program affordable. V e look forward to continuing our partnership together
as we work toward a waste-free tomorrow.
Please feel free to contact Christopher Goodwin, Eureka Recycling's director of customer
relations, if you have any additional questions or need additional information.
Sincerely,
Tim Brownell Susan Hubbard Debbie King
CEO and President CSO CFO