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WOf <br />BURIMTON <br />Or clty that wrrArs tier you <br />Memo <br />Date: October 5, 2010 <br />To: Dean Lotter, City Manager <br />From: Grant Fernelius, Community Development Director <br />Janice Gundlach, City Planner <br />Joseph Hatch, Code Enforcement Officer <br />Subject: October 12, 2010 Work Session Regarding Recycling Proposals <br />for Single Sort Recycling <br />The city of New Brighton received two proposals for single -sort recycling after issuing <br />the request for proposals to seven recycling vendors. The two proposals are from Allied <br />Waste Systems and Waste Management. Each proposal included two options. <br />Waste Management's first option is for a 3 year contract charging $3.35 per household <br />per month. This offer includes a recycling material offset (RMO) fee which shares profit <br />when the market price for recycling material is high and would be an additional charge <br />when the market price for material is low. The offer includes an increase of 4% in the <br />second and third years and a diesel fuel surcharge if diesel fuels rises above $3.00 per <br />gallon and would escalate higher as the price rises from there. <br />Waste Managements second option is for a 5 year contract which would charge $2.50 <br />per household per month. This offer also includes the RMO, a 4% increase in the <br />second and third year, and the diesel fuel surcharge. <br />Allied Waste Systems first option is for a 3 year contract which would charge $3.10 per <br />household per month. This rate would stay flat for all 3 years of the contract. This <br />proposal would include the "Recycle Bank". The recycling bank is a program that would <br />offer credits to residents based on the weight of the recycling they put out on collection <br />day. These credits would then be redeemed for gift cards at retailers such as Target, <br />Cub Foods, etc. There would be no profit sharing or RMO, and no diesel fuel surcharge. <br />Allied Waste Systems second proposal is for a 3 year contract which would charge <br />$2.49 per household per month. The rate would stay flat for all 3 years of the contract. <br />This would be a flat rate and have no recycling bank, profit sharing, or other incentives. <br />Staff recommends the City accept the second proposal from Allied Waste System. Staff <br />has contacted references of Allied and believes they will be able to successfully <br />complete the contract with the lowest amount of financial risk to the budget. The <br />H yclin inW010 Reryolin,RFWP Work Session Me= (GF Edits).doc <br />