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Mr. Meal Beets <br />City Manager <br />City of Roseville <br />2660 Civic Center Drive <br />Roseville,, MN 55113 <br />Re.- Fetter of August 22, 2003 <br />Lear Mr. Beets, <br />This letter is in response to your letter dated August 227 2003. <br />AttlLchment #2 <br />IN50 Naples St. NE <br />Bkalne, MN 55-449 <br />05 2) 890-11 ea <br />(763) 783 -5477 Fax <br />1) As per Council member ough's proposal for a 3 year fixed rate contract witho 3 <br />year extension the rate would have to be greater then the HRG rate for 2006 as <br />specified in their favored nation clause. (2003 rate of $2.25 x PI -U for 2004 x <br />PI -U for 2005 x PI -U for 2006 crate) It therefore is impossible to compute. <br />2} The Mayor's question on ownership of the carts (like the l abhinsdale agreement). <br />Their contract is over $ l million annually and with extension is a 10 year <br />agreement. If the City of Roseville lle wants to eater into a 1 million contract for <br />years I am sure we could work out the cart ownership issue. <br />It was my understanding after the meeting that the contract would reflect the satire <br />language as HRG matching their rate for 5 years. <br />The rate would he upon deliverer of carts this fall $2.25 with a PI -U increase January <br />1,2004. This rate would be adjusted annually on this date by P I -U. <br />The existing agreement contained "single sort" collection as an option. It is our <br />recommendation we exercise this option rather then rewrite the entire contract! <br />Profit sharing wasn't included in your l F P specifications and is a hereby moot. <br />I have included the addendum to the contract that works for Waste Management. <br />;Since y, <br />ary ovum <br />Municipal rketing ager <br />N <br />