Memo- Recycle Contract ExtensionPublic Works Department
Memorandum
To: Honorable Mayor and Members of the City Council
Copy: Rick Getschow, City Manager
From: Steve Stadler, Public Works Director
Penny Cleve, Solid Waste Coordinator�.i
Date: December 2, 2009
Subject: Recycle Contract Extension
Hopkins' contract with Waste Management for curbside single stream recycling ends
12/31/2009. We have chosen to re- negotiate this contract rather than re -bid the contract based
on: a review of bids received by other cities, current market conditions, collection problems will
exist with all haulers, inconvenience to our residents and the good working relationship that we
have had with Waste Management since 1990. For these reasons we felt confident that we
would be able to come to an acceptable agreement without having to go out for bids.
The negotiations have resulted in the following:
• A one year contract extension
• Cost would remain at the 2009 rate of $2.94/mo per CDU
• Addition of a Recyclable Material Offset which could be an additional charge or a credit
depending upon the market
• Addition of diesel fuel surcharge that will take effect if diesel price is $3.00 or higher per gal.
• Add language stating: Service is unlimited, residents may have as many carts as they need
or increase /decrease the size of cart as needed
• Add aseptic drink containers (juice boxes, milk cartons, juice cartons) to items collected
curbside, effective 1/1/10
Attachment
EXAMPLE OF RECYCLABLE MATERIAL OFFSET (REVENUE /COST SHARE)
MONTH
BLENDED
80%
PROCESSING
MONTHLY
ADDITIONAL
$3.25 TO $3.49
VALUE PER
CITY
COST PER TON
BASE FEE
CHARGE OR
TON
SHARE
$2.94 X 2990
CREDIT
October
$ 70.32
$ 56.26
$ 47.64
$ 8,790.60
($ 777.40)
July
$ 56.39
$ 45.11
$57.29
$ 8,790.60
$1,106.30
FUEL SURCHARGE
DIESEL FUEL PRICE PER GALLON
FUEL SURCHARGE
< $3.00
0 PER CENT
$3.00 TO $3.24
2 PER CENT
$3.25 TO $3.49
4 PER CENT
$3.50 AND UP
5 PERCENT