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From:Mathiasen, Beverly <br />To:Mark Statz <br />Cc:Teresa Bender;Hallada, Samahra <br />Subject:Update -FW: 2023 Centerville Extension Proposal <br />Date:Monday, January 16, 2023 12:47:18 PM <br />Attachments:Centerville Comps 10.17.2022.xlsx <br />Centerville-meeting 10.18.2022.docx <br />Centerville Extension-Proposal letter to Council 11.30.2022.pdf <br />Caution: This email originated outside our organization; please use caution. <br />Hi Mark, <br />You asked me to sharpen our pencil, on the trash pricing, to reduce the initial jump off. I’ve been <br />working with our local and area team (we uncovered some cost savings operationally) and have two <br />options for you to consider: <br /> <br />Option 1: (Reduces initial price increase from rates listed in Proposal letter 11.30.2022 and keeps <br />annual price adjustment at 4.5% for year 2 and year 3) <br />Material TypeCart SizePrice/HH/Month <br />Trash32 Gallon$12.15 <br />Trash64 Gallon$14.05 <br />Trash96 Gallon$16.90 <br />RecyclingAny Size$4.65 <br /> <br />Option 2: (reduces initial price increase significantly from rates listed in letter dated 11.30.2022 <br />but annual price adjustments are increased to 5.5% for year 2 and year 3) <br />Material TypeCart SizePrice/HH/Month <br />Trash32 Gallon$11.95 <br />Trash64 Gallon$13.85 <br />Trash96 Gallon$16.70 <br />RecyclingAny Size$4.65 <br /> <br />I’m in the office today and tomorrow should you wish to discuss. (I understand that you may not be <br />working today) Please know that this is the lowest pricing we can offer the City of Centerville and <br />based on market rates, both options are highly competitive. Since I provided the market comps in <br />October, Brooklyn Park awarded Waste Management (incumbent) their recycling contract; WM was <br />awarded an increase of an additional $1 per HH PLUS a Recycling Processing offset fee. Eureka also <br />submitted a proposal, $6.73/HH for every other week recycling service. That rate may appear to be <br />high but the startup costs (carts, trucks, drivers) have increased, along with the industry cost <br />increases, and it’s simply not the same market it was 5 years ago when the City of Centerville went <br />out for RFP . <br />I look forward to chatting before you present to Council. <br />Thanks and enjoy your day~ <br />Bev <br /> <br /> <br /> <br />