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VHWJP)N � Worksession Materials 4p SW W city fhaf werks #rpt' you Memo Date: June 4, 2009 To: Dean Lotter, City Manager From: Grant Fernelius, Community Development Director (34P Joseph Hatch, Code Enforcement Officer --5-//- Subject: June 9t" Work Session Regarding the City Kecycling Contract In anticipation of next Tuesday's work session, staff has prepared the following memo regarding the City's current recycling contract, along with several options for Council consideration. Background The City is currently in the third and final year of a three year contract for recycling services with Waste Management. The current contract provides for dual -sort collection of recyclables. The City has the option to negotiate and extend the contract with Waste Management for two 1 -year extensions (2010-2011). The current contract for recycling has been extremely competitive with regard to pricing. New Brighton residents currently pay $24.00 annually, which is assessed through property taxes. By comparison adjacent cities charge between $23.60(Roseville) and $35.40 (Arden Hills) for similar services. This low cost is primarily due to the market conditions in 2005, when the contract was negotiated. In general, dual -sort recycling is cheaper than single -sort, because there is less labor required by Waste Management at the processing facility. However, more and more vendors are moving toward single -sort programs because of the demand by citizens for easier recycling. Recycling Contract Options In early May, staff met Mary Chamberlain from R.W. Beck to review the City's recycling contract options. R.W. Beck has a contract with Ramsey County to assist cities in organizing recycling programs. Ms. Beck helped city staff prepare the 2006 RFP, which resulted in the current contract with Waste Management. Ms. Beck explained that the current recycling market is at historic lows. The market prices for glass, paper, aluminum and plastic have dropped significantly since July 2008. As a result, the cost to provide recycling services has actually increased due to things like storage and transportation costs for the raw product. The bottom line is that the market environment HARecyeling info\Recycling Contract Worksession memo (GF Final Edits).doc