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Community Assets & <br /> Development Department <br /> MEMORANDUM <br /> <br /> <br />DATE: June 23, 2016 <br /> <br />TO: Manager Lotter <br /> Mayor <br /> Members of the Council <br /> <br />FROM: Janice Gundlach, Asst. Director of Community Assets & <br />Development/Planning Director <br /> Scott Gigrich, Code Compliance Inspector/Recycling Coordinator <br /> <br />SUBJECT: Recycling Contract Expiration & Extension <br /> <br />At the end of 2016, the City’s current contract for recycling services ends. The contract <br />is with Republic Services (formerly Allied Waste) and has been in effect for three years. <br />Prior to this contract, the City’s recycling services were provided by the same hauler with <br />the original contract extended in 2013 (original contract with Allied began in 2000). <br />Prior to that, the City worked with Waste Management, until the decision was made to <br />switch from dual sort services to single sort. Based on the April 2015 Resident Survey, <br />recycling is second highest rated service, with 94% of residents surveyed finding the <br />service excellent or good. <br /> <br />Under the current contract year, the City pays $2.78 per unit per month (or just over $33 <br />for the year). Based on information provided by Republic Services, New Brighton has <br />the second lowest rate of all their clients (see rates comparison provided in Republic <br />Services offer letter). All but three of these rates are for cities within Ramsey County. <br />Staff has also gathered information from Ramsey County’s Environmental Health staff <br />regarding recycling rates and confirms New Brighton offers a very competitive rate. <br />Additionally, a Ramsey County city recently went out for RFP (Requests for Proposals) <br />for recycling services, and while the actual rates submitted through the RFP are not <br />public yet, staff understands the rates exceed New Brighton’s current year rate of $2.78 <br />per unit per month. This is a good test in understanding what the current market rate is <br />for recycling services and what the City might expect to see under our own RFP process. <br /> <br />Based on the City’s already competitive rates and the state of the current recycling <br />market, Republic Services and City staff met regarding an extension offer to the current <br />contract. Republic Services has provided both a five and seven year extension to the <br />current contract. These rates gradually rise from $2.86-$3.22 over a five year extension