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.� (�ption 3 .. Meet the January 1 roll out requirement without a survey of residents but order all 96 gallon carts � due to anticipated higher set out rates. The carts costs will be higher than the RFP specified 65 . gallon cart costs due to the larger size. The additional costs to the city is proposed at $34,000. � Eureka would incur the additional costs for change out and inventory carts as required in the � RFP. �- All of these options are less cost than the next bidder for these services, Allied Waste. We have - not contacted Allied at this time but anticipate they may be unable to meet a January 1 roll out at this time as we would need to negotiate a contract for approval by the City Council and they �� would need to place a cart order which we understand to be a 2 month turn around until delivery. �� This may leave the city without a recycling provider unless an agreement could be reached with �� Eureka Recycling to continue current service until a new provider can be ready to begin service. l Considering a contract with the next bidder would also require a significant increase in the � current recycling fee. � Contract . Attached is the proposed contract (Attachment A). Eureka requested changes to the termination � clause. (Section 9) The additional language would reimburse Eureka for unamatorized � equipment purchased to service this contract should the city terminate the contract without cause. � An amatorization table is attached to the contract to detail the cost at various stages of the � contract term. .. We have also included the proposed language for all thre roll out options for the Council to � consider. The final contract will be edited to reflect the final approved language. � The City Attorney has reviewed the proposed contract and termination clause and finds the � proposed language reasonable. Staff recommends the Council consider option one as it .� preserves the pricing as proposed beginning January 1, 2013 and resident continue with the �; current bin service until the cart roll out in February. This results in the lowest cost option to the city and will enable the greatest reduction in recycling fees to residents. Roseville residents would receive one of the lowest cost recycling fees in Ramsey County. POLICY OBJECTIVE r� Meet the Imagine Roseville 2025 goal that Roseville is an environmentally healthy community <�� by providing recycling service for residents. As a result we competitively bid for these contracted services to ensure an effective program at reasonable pricing. BUDGET IMPLICATIONS �� The Recycling Program is operated as an enterprise fund. Income to the fund comes from three � sources: resident fees, revenue share from the sale of material and an annual SCORE grant of approximately $65,000. Any additional costs associated with the program would need to come , from increased resident fees. The rates are typically set by the Council in November. � The proposed three year contract is expected to decrease the residential recycling fee to , residents approximately 20%. Currently the resident recycling fee is $6.00 per quarter and the , Finance Director estimates the new fee will be less than $5.00 per quarter based on preliminary fee analysis. He will do a more detailed analysis on the rate later this year prior to the Council setting 2014 fees. Page 2 of 3