2021_06-22_PWETCpacket - Laserfiche WebLink

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253 Mr. Johnson reviewed the April Revenue Share reports from 2017 to 2021. He 254 explained the tonnage was very similar with very good collection and a good 255 recycling program. Staff did not see a huge fluctuation with that. What the City 256 has actually collected at $58/ton, 2021 was $5,700 and assuming the market is 257 exactly the same, when it is $75/ton the revenue share would go down to 258 approximately $1,400. 259 260 Mr. Johnson continued his presentation on City -owned carts versus contractor- 261 owned carts. 262 263 Member Joyce wondered about the 5.5 year versus 3.5. He asked if staff is leaning 264 toward 3.5 years in the contract or is it still atwo percent increase for the additional 265 two years. 266 267 Mr. Johnson explained the contract is basically atwo percent increase per year from 268 2022 on. 269 270 Chair Wozniak thought Mr. Johnson pointed it out in his presentation, when talking 271 about those numbers, that that was the lowest cost in the base price proposal per 272 household. 273 274 Mr. Johnson indicated that was correct. He reviewed the 2021 recycling RFP 275 proposals with the Commission. 276 277 Chair Wozniak thought Mr. Johnson did an excellent job of compiling the 278 information and presenting the information to the Commission. He thought it was 279 nice in a way that there are only two vendors to reflect on because it makes the 280 discussion and decision a little more straight forward. 281 F 282 Member Cicha commented regarding the revenue sharing and did not think it would 283 be a good idea for a 5.5-year contract, given the volatility the City has been seeing. 284 He thought with the recent volatility, revenue sharing beyond 3.5 years would not 285 be a good idea. 286 287 Member Joyce echoed what Member Cicha stated and he thought the vendors were 288 doing a general cost of living increase. They are hoping it will go up and will keep 289 the base price low enough to entice and lock into 5.5 years because they are not 290 really showing what the market is going to do. He thought the shorter term would 291 be less risk for the City. 292 293 Chair Wozniak indicated the $75/ton processing fee is a big jump from the current 294 $58/ton and he did not see anything in the proposals to indicate that they have made 295 any massive expenditures in processing equipment to justify such a big raise in their 296 processing fee. He stated $75/ton gets very close to what it costs Washington and 297 Ramsey Counties to process trash at the resource recovery facility, which is in the 298 low 80's. He wanted the Commission to keep in mind that around $21/ton of that Page 7 of 10