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Attachment C <br />6wFoth <br />Falb InfrastrucNre & Environment, LLC <br />Eagle Point H • 8550 Hudson Blvd North, Suite 105 <br />Lake Fdmo,MN 55042 <br />(651) 288-8550 • Fax: (651) 288-8551 <br />..foth.com <br />Memorandum <br />January 19, 2016 <br />To: Ryan Johnson and Marc Culver (City of Roseville) <br />Cc: Jean Buckley and Kate Bartelt (Ramsey County) <br />From: Dan Krivit and Susan Young (Toth Infrastructure & Environment, LLC) <br />RE: City -owned vs. Contractor -owned Recycling Carts: <br />Discussion of Advantages and Disadvantages <br />Roseville City staff requested an overview of advantages and disadvantages for the City <br />to own the recycling carts vs. the contractor to continue to own the carts. Your <br />incumbent Contractor, Eureka Recycling, currently owns the recycling carts. Our <br />understanding is that your upcoming draft request for proposals (RIP) for recycling <br />services will likely include the option for City -owned carts in the RFP price worksheets. <br />A best value analysis of cart ownership most often indicates that city -owned carts are <br />cost-effective in the long term if the city has a source of capital funding. Ramsey County <br />will help fund up to 50% of the capital costs of carts and dumpsters. City staff should <br />further discuss this opportunity with County staff. <br />Principal advantages of city cart ownership include: <br />♦ Proposals for recyclables collection services may be more competitive in response <br />to the upcoming Roseville recycling RFP if proposers do not have to provide <br />carts. More organizations may be attracted to respond to the RFP because they do <br />not have to finance the capital cost of the carts. <br />♦ The costs of new cart roll -out are minimized over the life of the carts. Carts can <br />last up to ten (10) years. Recycling contracts terms are usually three to five years. <br />♦ Carts do not have to be switched out each time a city changes recycling <br />contractors. <br />♦ A city owns the assets (i.e., the carts) after the contract period. <br />♦ A longer amortization period results in lower monthly cart fees for residents. <br />City -owned carts are often capitalized on a 10-year schedule to correspond with <br />the warranty period of the carts. Private organizations often amortize the capital <br />costs of carts on a much shorter time -frame, sometimes the length of the contract <br />(e.g., three or five years). <br />k9PoblicWernsTublic Wends CommissionNgeotlaltemCovaSheds\2016A01 lavo r,A16 0126 xx M-Fordmemo 0o dart omersh, 119-16.doo: <br />