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" - 0=4 k*SH vjlf4jjl df Request for Council Action Date: dust 4, 2003 Item Number: V1. A. Department Approval Manager Approval Agenda Section Public Hearings Item Description: Public Hearing on Changing the Terms of the Curbside Recycling Program to Single - Stream Service and Change the Residential recycling Charge Background At its July 21, 2003 the City Council directed staff to prepare revised language for the recycling contract between the City and waste Management in which the City would switch the level of service for curbside recycling collection from the current two -sort method to waste Management's single - stream method. That contract language is attached In an Addendum to the current contract. Questions and Concems about the Proposed Cost 1) waste Management has set a blanket rate of $2,36 for single - stream service. Yet, Roseville is the closest WM client to the WM recycling processing facility and as the second largest single - stream city for WM, Roseville should produce a higher ainotint of recycling material that WM can sell. The blanket rate of $2.36 provides no discount to Roseville for those operational cost savings. 2) Waste Management's proposal sags the extension needs to be 5 gears "to amortize the cost of the carts." while Roseville residents pay for the carts, WM retains ownership even after residents have paid for there. 3) waste Management has signed other single -sort contracts with similar-sized cities to Roseville for $2.25 per month, not $2.36* 4) `waste Management's contract with St. Paul was terminated by St. Paul this year in part because of concerns about the operations of the WM single- stream facility. As a result, wM's representative has stated that his company's Minnesota division is under intense pressure to find replacement revenue. 5) Brooklyn Park's Recycling Coordinator Dan Ruiz sags one of the reasons his city agreed to be the first city to switch to single- stream was because it was promised WM automation would bring cost savings that would then be shared with the city. Ruiz says he has made repeated requests as to when waste Management would provide those cost savings to Brooklyn Park, but has not received a definitive answer from WM. 6) waste Management }s proposal to Roseville has a three percent annual price increase and no provision for sharing cast savor' gs from automation. That means Roseville would be charged $2.71 per household per month in 2008; a 32% price increase over 2003 even though collection costs should go down due to automation. 7) The last two times Roseville has sought bids for recycling service (1998, 2002) the city has received multiple bids for two- stream service including bids in which the price wuuld go down over time. waste Management is the only recycling vendor in Minnesota offering single - stream service and is offering a long - term contract in which the rates only go up* 8) In a 2002 Roseville resident survey, only 16% of Roseville le residents said they would be willing to pay more for single - stream service.