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Local vendor-terminal location 34 Also at its January 7 meeting the Council further directed staff to (after being reviewed by the 35 PWET Commission) bring the RFP to the Council for review and approval. The RFP, which 36 includes the revisions suggested by the PWET Commission and the City Attorney, is included as 37 Attachment A to this Request for Council Action. 38 The PWET Commission also identified two issues for the Council to discuss: length of the 39 contract, and ownership of single-stream carts. 40 Length of Contract 41 Based on bids submitted as part of the RFP process in 2005 and in 2010, the City may get lower 42 priced proposals for contracts that run five years as opposed to contracts that run three years. For 43 instance, in 2005 the City proposed a five year contract and two of the proposers offered pricing 44 that was lower than what was the current rate at that time. 45 However, in 2010 the Council directed that the recycling contract be only a three year contract. 46 All four proposers offered higher rates than what was the current rate. One proposer offered a 47 five year contract. The pricing for that contract was lower than any of the three year proposals. 48 The PWET Commission recommends the RFP include a three-year and a five-year option. The 49 Council will need to decide whether or not it will consider a five-year option. 50 Cart Ownership 51 In the past year, both the City of Maplewood and the City of Shakopee have bought their own 52 garbage carts. Collection is handled by a private company. Both cities cited cost savings and 53 flexibility as the main reasons for doing so. Here’s an excerpt from a City of Shakopee news 54 release May 22, 2013: 55 By owning the carts, the City will be able to amortize the $1.5 million cost of the carts over 56 10 years and provide the City greater flexibility in future garbage and recycling contract 57 renewals. This will provide a cost-savings to residents over the course of a contract, said 58 City Administrator Mark McNeill. 59 Similarly the City of St. Cloud is purchasing carts as part of its switch to single-stream recycling. 60 Typical cart life expectancy is a minimum of 10 years. There would be City staff time spent 61 maintaining carts under this ownership option. 62 Other cities rely on the Contractor to supply the carts. The carts are typically amortized over the 63 life of the contract and the cost is included in the price of the bid. The carts typically belong to 64 the Contractor even though residents have paid the cost of having them manufactured and 65 delivered. Cities such as Blaine and Shoreview have changed Contractors within the past few 66 years and had to spend staff time to work with the Contractors coordinating cart swap out. 67 The Council will need to decide whether or not it wishes to have the City purchase carts. 68 Currently the City provides service to 9,611 Residential Dwelling Units, defined as single-family 69 households, duplexes, triplexes, four-plexes and townhomes, and to 97 multi-family buildings. It 70 will take approximately 11,000 carts to provide service to the City. Carts cost approximately 71 $46-56 each including assembly and distribution. According to Finance Director Chris Miller, 72 the City could purchase the carts using reserves from the Recycling account and an internal loan. 73 This would necessitate a slight rate increase to cover the cost of repaying the loan. 74 Staff proposes a hybrid approach with the contractor purchasing the carts and maintaining them 75 through the life of the contract. At the end of the contract, ownership of the carts would transfer 76 Page 2 of 4