Memo - 2011 Recycle Contract ProposalPUBLIC WORKS DEPARTMENT
Memorandum
To: Honorable Mayor and Members of the City Council
Copy: Jim Genellie, City Manager I�f
From: Steven J. Stadler, Public Works Director
Penny Cleve, Solid Waste Coordinator(- .-
Date: March 17, 2011
Subject: 2011 Recycle Contract Proposal
The City of Hopkins began a source -separated curbside -recycling program on February 1, 1989
in response to County and Metropolitan Council mandates. Waste Management was awarded
the recycle collection contract in January, 1990. In November 2002 we re -negotiated the
contract with Waste Management to implement the new recycling process called "Single Stream
Recycling". The expiration date of this contract would have been 12/31/2009; however due to
the instability of the recycle material markets we chose to extend the contract through
3131/2011.
The decision to re -negotiate this contract with Waste Management now was based on:
a review of contract offers to other cities, current market conditions, convenience to our
residents, the good track record of Waste Management and the good working relationship that
we have had with them since 1990.
A copy of the proposed contract was reviewed by City Attorney, Jason Hutchinson. He
suggested some changes which Waste Management agreed to.
For these reasons we felt confident that we would be able to come to an acceptable agreement
without having to go out for bids and are recommending that the City Council approve the
contract agreement with Waste Management.
Attachments
• Detailed Background
• Analysis of Issues
• Copy of Proposed Contract
DETAILED BACKGROUND
Waste Management has been our recycling contractor since January 1, 1990. The following list
outlines rate changes over the life of our contract with Waste Management:
• January 1, 1990 — our original program collected; newspaper, tin & aluminum food and
beverage cans and glass jars and bottles, at a rate of $2.15 per HH/mo
• May 6, 1990 — Waste Management added corrugated cardboard at no extra charge
• August 13, 1990 — Plastic bottles were added to collection increasing the rate to $2.30
per HH/mo
• March 16, 1993 — We extended our contract and added miscellaneous paper to the
collection at a rate of $2.26 per HH/mo
• October 17, 1995 — We renegotiated our contract early because market conditions were
very good. We added revenue sharing language at this time, in addition to adding the
4C's (cereal, cake, cracker and chip boxboard) and phone books. For the first 6 months
of our contract we paid $1.70 per HH/mo. Beginning in April 1996 through June 30, 1999
the rate went up to $2.05 - The markets went bad in 1996 and got worse in 1998 and
1999 so no discounts were given.
• On June 9, 1999 - we requested a 30 -day extension from Waste Management at the rate
of $2.05 per HH/mo
• August 1, 1999 —we renegotiated the contract beginning 8/1/99 through 2/31/04. The
rate went up to $2.36 per HH/mo
• November 1, 2002 - City chose to renegotiate existing contract before termination date in
order to implement Single Stream Recycling. The new rate was $2.53 per HH/mo
increasing 3% a year for 7 years. The revenue sharing formula remained the same as
the previous contract.
• January 1, 2010 - due to the instability of the recycle material markets a one year
contract extension was negotiated. Rates stayed at $2.94 per HH/mo. A Recyclable
Material Offset (RMO) replaced the revenue sharing formula. The RMO amount can be
an additional charge or a credit. A fuel surcharge schedule was also agreed to with
increases going into effect when diesel fuel price per gallon reached $3.00 or more.
During our review of available options we took into consideration contracts other cities have in
place, the current market conditions, previous contract prices, our experience with existing
service, the additional service Waste Management will be providing, no changes for 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 with Waste Management without going out for bids.
ANALYSIS OF PRIMARY ISSUES
WHAT ITEMS WILL CHANGE WITH THIS CONTRACT?
• CONTRACT TERM:
Length of Contract would be five (5) years: 4/1/2011 TO 3/31/2016
• CURBSIDE SINGLE STREAM COLLECTION COST:
$2.99 per CDU (certified dwelling unit) per month for 4/1/2011 through 3/31/2012.
The CDU per month rate will be adjusted on an annual basis effective April 1 of each year
beginning in 2012. The adjustment will be based on the percentage of increase in the
Consumer Price Index or 3 percent whichever is less. The Consumer Price Index All Users
- Midwest, percent change, March of current year versus March of previous year change will
be used as the determining factor. This Index is released mid-April of each year.
In addition the monthly cost could change based on the RMO* and the Cost of Diesel Fuel**.
*RMO:
Waste Management's proposal includes a continuation of the Recyclable Material Offset
(RMO) that was implemented in the 2010 Recycle Contract Extension. The RMO amount is
determined monthly based upon blended market values of the recyclable material collected
and the material processing costs. The amount can be an additional charge or a credit
which is shown as a line item on the monthly invoice.
The material processing cost will be capped at $57.25 as it was in the 2010 contract
extension. With this cap the maximum RMO cost increase per CDU will not exceed $.60 per
month.
In 2010 the City did not experience any cost increases due to the RMO. The City did
receive $17,760.60 in credits (revenue sharing) based on the RMO.
**FUEL SURCHARGE:
Due to the continued uncertainty of diesel fuel prices Waste Management proposes a
continuation of the fuel surcharge. We were able to negotiate that if diesel fuel remains
below $4.00 per gallon the fuel surcharge will be 0% (2010 fuel surcharge started at $3.00
per gallon). In addition the fuel surcharge will be capped at 5%. If diesel fuel is at or above
$4.00 per gallon the following percentages will apply to the gross monthly invoice cost.
Diesel Fuel Price per
Gallon
Fuel Surcharge
< 4.00
0
Percent
$4.00 to $4.24
2
Percent
$4.25 to $4.49
4
Percent
4.50 and Up
5
Percent
.:k
The published index for determining monthly diesel fuel prices will be the Department of
Energy's (DOE) "Weekly Retail On -Highway Diesel Prices" for the Midwest region. The
price published for the first Monday of the month will be used as that month's diesel fuel
price. The current cost of diesel fuel at the time of this report was $3.82 per gallon.
The prices can be viewed at the DOE website:
hftp://tonto.eia.doe.gov/oog/info/WohdP/diesel.asp>
• NEW SERVICE PROVIDED:
Waste Management would be the provider of refuse service for the City's twice a year Bulk
Drop Off events. In the past the City has gone out for proposals to determine the Contractor
to service these events. Nine of the last ten years this contract has been awarded to Waste
Management based on lower costs and for supplying on site staff throughout the event.
Refuse charges for these events are based on:
1. Number of pulls (transporting full dumpsters to disposal site). The fee per pull has been
$125 for the last three years and we average fifteen (15) pulls per event.
2. Disposal (Tipping) fees - 2010 tipping fee was $42 a ton
Waste Management proposes that as the Refuse Contractor for these events the only
refuse charge the City would incur would be the Disposal (Tipping) fee. Waste Management
would absorb the Pull Fee, which would reduce the cost of the Bulk Drop Off events by
approximately $3,750 per year.
HOW WILL THE PROGRAM CONTINUE TO BE FUNDED?
Our program has been funded since its inception by fees residents pay through the refuse
portion of their utility bill and funding from Hennepin County.
The Hennepin County funding has provided approximately $25,000 per year over the past five
years to help fund our recycling program. The money for the funding comes from the SCORE
tax that is added to the refuse portion of the Utility bill.
There is language in the current funding policy stating that at any time with due notice the
county may discontinue or decrease this funding. In 2002 the SCORE funding was reduced by
1.4 million dollars. With the ongoing budget issues we may be looking at additional reductions
in the future. If the fund were to disappear it might be necessary to increase the recycling
portion of the refuse bill to cover this loss of funding.
SHOULD THE CONTRACT BE APPROVED?
With the initial base price per CDU increasing less than 2% and a 3% or less increase per year
for the additional four years, the current market conditions improving, and the addition of Bulk
Drop Off refuse service for the cost of disposal only, staff recommends the approval of the five
year contract with Waste Management.
CONTRACT AGREEMENT
FOR
COMPREHENSIVE RECYCLING COLLECTION SERVICES
This agreement is made on the 1st day of April, 2011, between the:
CITY OF HOPKINS
1010 First Street South
Hopkins, Minnesota 55343 - ("City")
And
WASTE MANAGEMENT of MINNESOTA, INC.
10050 Naples Street NE
Blaine, MN 55449
(952) 890-1100 — ("Contractor")
The purpose of this contract is to set forth terms and conditions for the provision of
CURBSIDE/ALLEYWAY SINGLE STREAM RECYCLING COLLECTION SERVICES by the Contractor for
the City.
The City and Contractor agree as follows:
A. Contractor's Services. The Contractor shall provide services as described in EXHIBIT A,
within the collection districts specified on maps supplied to the contractor by the City, and
In compliance with the specifications contained in attached EXHIBIT A.
B. Compensation for Services. The City shall pay the Contractor for recycling services as
outlined in the attached RATE SCHEDULE, contained in the attached Exhibit B, for bi-weekly
recycling collection services based on the number of Certified Dwelling Units (CDU")
certified by the City. All appropriate fees and credits are defined in EXHIBIT B, Hopkins
Pricing Matrix.
C. Method of Payment. The Contractor shall submit itemized Invoices for recycling collection
services provided to the City on a monthly basis. Bills submitted shall be paid in the same
manner as other claims made to the City. The Contractor shall provide documentation and
reports as required by the City in EXHIBIT A.
D. Promotion and Public Education. The Contractor and the City shall work together in the
preparation and distribution of educational materials to insure accurate information and
program directions. The Contractor shall be responsible for developing a customer
education tag to be used by the route drivers to inform customers of recyclable materials or
cart problems. The Contractor shall reimburse the City annual for the actual cost of
providing (up to $3,000 annually) a a calendar to be provided by the City to each CDU.
Payment will be in the form of a credit on the City's monthly invoice upon Contractor's
receipt of a copy of the City's invoice for the education piece.
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E. Audit Disclosure. The contractor shall allow the City or its duly authorized agents
reasonable access to such of the Contractor's books and records as are pertinent to all
services provided under this agreement. Any reports, information, data, etc. given to, or
prepared or assembled by the Contractor under this agreement which the City requests to
be kept confidential shall not be made available by the Contractor to any other person or
party with the City's prior written approval. All finished or unfinished documents, data,
studies, surveys, drawings, maps, models, photographs and reports prepared by the
Contractor shall become the property of the City upon termination of this Agreement..
F. Term. The term of this Agreement shall be from April 1, 2011 through March 31, 2016, the
date of signature by the parties notwithstanding. This Agreement may be extended upon
the written mutual consent of both parties for such additional period as deemed
appropriate based on policy and procedures of the City and upon the terms and conditions
as the parties shall mutually agree.
G. Termination. The City, upon the Contractor's failure to perform its responsibilities under
the Agreement, may terminate this Agreement_by providing Contractor written notice of
the responsibilities not performed. The Contractor shall have 30 calendar days to correct
the issue prior to termination. Either party may terminate this Agreement by a ninety (90)
day written notice delivered to the other party at the other party's address written above.
Upon termination under this provision, the Contractor shall be paid for services rendered
and reimbursable expenses until the effective date of termination and the City shall be paid
for any credit balance. In addition the City may terminate the Agreement upon ninety (90)
days advance written notice to the Contractor if Hennepin County significantly reduces or
alters its Funding Policy for reimbursing City recycling program cost or of the City of Hopkins
ceases it's municipally operated, residential refuse collection program. "Significantly
reduces or alters" means a reduction or alteration resulting in the reimbursement of less
than 50% of the City's recycling program costs, or additional requirements set forth by
Hennepin County in which the City and Waste Management are unable to mutually
negotiate a rate of payment adjustment.
H. Independent Contractor. At all times and for all purposes hereunder, the Contractor is an
INDEPENDENT CONTRACTOR and not an employee of the City. No statement herein shall
be construed so as to find the Contractor to be an employee of the City.
I. Subcontractor. The Contractor shall not enter into subcontracts for any of the services
provided for in this Agreement without the express written consent of the City. Any
purported subcontract without the City's express written consent shall be void and of no
effect.
J. Assienment. Neither party shall assign this Agreement, or any interest arising herein,
without the written consent of the other party. Any purported assignment without the
other party's express written consent shall be void and of no effect.
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K. Services Not Provided for. The City need not provide payment for any claim for services
furnished by the Contractor not specifically provided for herein.
L. Severability. The provisions of this Agreement are severable. If any portion hereof is, for
any reason, held by a Court of competent jurisdiction to be contrary to law, such decision
shall not affect the remaining provisions of the Agreement.
M. Compliance with Laws and Regulations. In providing services hereunder, the Contractor
shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of
services to be provided hereunder, including any data practices requirements under
Minnesota Statutes Chapter 13 or other applicable statutes. Any material violation shall
constitute a material breach of this Agreement. Governing Law: the laws of the State of
Minnesota, ordinances of Hennepin County and all ordinances of the City shall control this
contract.
N. EE ual Opportunity. During the performance of this contract, the Contractor, in compliance
with Executive Order 11246, as amended by Executive Order 11375 and Department of
Labor regulations 41 CFR Part 60, shall not discriminate against any employee or applicant
for employment because of age, race, color, religions, sex, or national origin. The
Contractor shall take affirmative action to insure that applicants for employment are
qualified, and that employees are treated equally during employment, without regard to
their age, race, color, religion, sex, or national origin.
O. No additional Waiver implied by One Waiver. In the event any agreement contained in
this Contract should be breached by either party and thereafter waived by the other party,
such waiver shall be limited to the particular breach so waived and shall not be deemed to
waive any other concurrent, previous or subsequent breach hereunder.
P. Indemnification. The Contractor shall indemnify and hold harmless the City, its employees
and agents, for all claims, damages, losses, and expenses, including, but not limited to,
attorneys' fees, which they may suffer or for which they may be held liable, as a result of
negligence by the Contractor, his employees, or subcontractors in performance of this
contract.
Q. Insurance. The Contractor must provide certificates of Insurance to the City at the time of
contract execution. The Contractor shall take out and maintain during the term of the
contract such public liability and property damage and automobile insurance as shall
protect it and the City from claims for such damages, in the following amounts:
Comprehensive General Liability
Bodily Injury $5,000,000 each occurrence
$6,000,000 Aggregate
Property Damage $5,000,000 each occurrence
$6,000,000 Aggregate
Umbrella Clause $15,000,000
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This insurance shall cover all Contractor's vehicles, whether owned, non -owned,
leased or hired.
Workers Compensation - Insurance. The Contractor' shall provide workers
compensation insurance covering all employees of the contractor engaged in the
performance of the agreement, in accordance with the Minnesota Workers'
Compensation Law.
Evidence of this additional coverage will be furnished to the City Manager or his authorized
representative upon execution of this contract and from time to time as requested by the
City manager or authorized representative.
No policy shall contain any provisions for exclusions from liability other than provisions for
exclusion from liability forming part of the standard basic unamended and unendorsed form
of policy, except that no exclusion will be permitted in any event if it conflicts with a
coverage expressly required in this contract, and in addition, no policy shall contain any
exclusion from bodily injury to, or sickness, disease or death of any coverage under the
contractual liability endorsement of the liability of the Contractor under this agreement.
Compliance by the Contractor with the foregoing requirements to carry insurance and
furnish certificates shall not relieve the Contractor from liability assumed under any
provisions of this contract.
R. Performance and Payment Bond. The Contractor shall execute and deliver to the City a
performance bond with a corporate surety in the sum of $50,000. This contract shall not
become effective until such a bond in a form acceptable to the City has been delivered to
the City and approved by the City Attorney. This Contract shall be subject to termination by
the City at any time if said bond shall be canceled or the surety thereon relieved from
liability for any reason. The term of such performance bond shall be annually renewed each
year of the Agreement. Extensions or renewals shall require the performance bond
continue in force annually during the period of extension or renewal.
S. Liquidated Damages. The Contractor shall be liable for liquidated damages upon a
determination by the City that performance has not occurred consistent with the provisions
of the agreement as specified in EXHIBIT A, Section III, A., No. 20.
T. Street Improvements. This Contract is subject to the right of State of Minnesota, Hennepin
County or the City to improve its highways and streets. The Contractor accepts the risk that
such improvements may prevent the Contractor from traveling its accustomed route or
routes for the purpose of collecting recyclables. The Contractor agrees not to make any
claims for compensation against the City for such interference. The City shall, whenever
possible, provide advance information and instructions about how the Contractor may best
provide services in the improvement area.
U. Utilities. The Contractor shall be obligated to protect all public and private utilities, streets
or roadways, whether occupying a street or public or private property. If such utilities,
streets or roadways are damaged by reason of the Contractors operations, under this
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contract, he/she shall repair or replace same or, failing to do so promptly, the City shall
cause repairs or replacements to be made and the cost of doing so shall be deducted from
payment due to the Contractor for contract collection services.
V. Conflict of Interest. The Contractor agrees that no member, officer, or employee of the City
shall have any interest, direct or indirect, in this Agreement or the proceeds thereof.
Violation of this provision shall cause this Agreement to be null and void and the Contractor
will forfeit any payments to be made under this Agreement.
W. Entire Contract. The entire agreement of the parties is contained herein. This Agreement
supersedes all oral agreements and negotiations between the parties relating to the subject
matter hereof as well as any previous agreements presently in effect between the parties
relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers
of the provisions of this Agreement shall be valid only when expressed in writing and duly
signed by the parties, unless otherwise provided herein.
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Executed as of the day and year first written above.
CITY OF HOPKINS Waste Management of Minnesota, Inca
By BY
Eugene J. Maxwell, Mayor Michael E. Fleming, Vice President
By
James A. Genellie, Acting City Manager
Page 6 of 17
C. Single Stream Recycling Collection Service: Residents will be instructed to commingle all
recyclable materials in one container that will be picked up biweekly by Contractor.
Contractor will pick up all recyclable material placed in and next to recycling containers at
CDUs and other city designated collection stops in the City of Hopkins.
Page 7 of 17
EXHIBIT A
City of Hopkins
Single Stream Recycling Collection
i
SPECIFICATIONS
I
I.
Introduction
These specifications define the requirements of the SINGLE STREAM RECYCLING
COLLECTION PROGRAM for the City of Hopkins.
IL
Definitions
A.
Recyclable Materials: Means all items of refuse designated by the Hennepin County
Environmental Services to be part of an authorized recycling program and which are
intended for transportation, processing, and re -manufacturing or reuse and include the
following:
•
Newspaper: includes all supplements and ads delivered with a newspaper.
•
Corrugated cardboard: all corrugated cardboard boxes except for boxes that are waxed or
plastic coated or home delivered pizza boxes
•
Glass containers: all clear, green and brown glass food and beverage containers.
•
Metal containers: aluminum, steel, bimetal, and "tin" food and beverage containers.
•
Plastic: all plastic bottles with a neck, with the exception of bottles that previously
contained hazardous materials i.e. motor oil.
•
Miscellaneous paper: all glossy paper, magazines, catalogs and coated paper. All mixed
paper, communications, letters, envelopes, computer paper, copier paper, ledger paper,
NCR forms, receipts and bills, advertisements, hard and soft cover books, fax machine
paper, clean paper bags and sorted direct mail.
•
4 C's limited boxboard, paper beverage containers and phone books: all Cereal, Cake,
Cracker, and Chip boxes and all phone books.
•
Aseptic Containers (juice boxes, and juice, soup, broth, and milk cartons)
•
Any additions or exclusions as agreed upon by Contractor and City.
B.
Recvcling Container: means a receptacle in which recyclable materials can be stored and
later at the curb or alley for collection as specified by the City. Acceptable
placed
containers shall be 35, 64, or 96 gallon wheeled carts provided by the Contractor at its sole
expense and properly marked for recycling.
C. Single Stream Recycling Collection Service: Residents will be instructed to commingle all
recyclable materials in one container that will be picked up biweekly by Contractor.
Contractor will pick up all recyclable material placed in and next to recycling containers at
CDUs and other city designated collection stops in the City of Hopkins.
Page 7 of 17
D. Certified Dwelling Unit (CDU): means a single family home and each residential unit in a
duplex or triplex. Residential units in structure containing more than three (3) dwelling
units, may be designated as CDUs upon mutual agreement by the City and the contractor.
E. Collection District: means a specific geographic area of the city established for the purpose
of providing recycling collection service and refuse collection service on the same day for all
CDUs within the district.
F. Collection Route: means a contiguous geographic area within a collection district
determined by the contractor, which may be used to measure collection progress. These
routes must be approved by the city.
G. Contractor.: means person or persons authorized by the city to perform recycling collection
services on prescribed routes within collection districts within the city of Hopkins.
H. Collection Vehicle: means any vehicle licensed and inspected by the city for collection of
recyclables within the corporate boundaries of the city.
I. Collection Hours: means the time period during which collection of recyclable material is
authorized in the city.
J. Missed Collection: means the failure of the contractor to provide recycling collection
service to a CDU or other city designated collection stop within the recycling district during
collection hours on the scheduled collection day.
K. City Designated Collection Stop: means a location designated by the city for recycling
collection services, including City Hall, Public Works, Pavilion, Community Center,, Hopkins
Center for the Arts, Fire Department, Depot Coffeehouse, and may include other stops as
mutually agreed upon by the city and the contractor.
L. Holidays: means any of the following: New Year's Day, Martin Luther King Jr. Day,
President's Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving
Day, the Friday after Thanksgiving, and Christmas Day.
M. Scheduled Collection Davi means the day or days of the week on which recycling collection
service by the contractor is to occur, as specified in the contract with the city. If a holiday
occurs on a weekday, the collection for each day of that week after the holiday will be made
one (1) working day later. If collection is to occur the week of Thanksgiving, Thursday
service shall be completed one day earlier on Wednesday with no other collection days
impacted.
N. Collection Point: means the location where the recycling container is placed for collection.
111. Collection Requirements
A. Residential Curbside/Alleyway Recycling Collection Program
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1. Frequency of Residential Collection: Residential recycling collection shall occur biweekly on
the same day as regular refuse collection for every CDU in the city according to Collection
District and yearly calendar.
2. Frequency of City Designated Collection Stops: Stops at City Designated Collection Stops
shall occur according to a regular and routine schedule as submitted to and agreed upon by
the City and the Contractor.
3. Establishment of Collection Districts: The city reserves the right to establish collection
districts within the city. The purpose of the collection district will be to establish same day
refuse and recycling collection service in each Collection District established. The city will
designate the collection districts and days on maps supplied to the contractor. The city
reserves the right to change the collection district boundaries and scheduled collection days
upon fifteen (15) days notice to the contractor.
4. Residential Collection Hours: Collection shall commence no earlier than 7:00 a.m. local time
and shall be completed by 7:00 p.m. The contractor shall maintain sufficient equipment and
personnel to assure that all collection operations are completed by 7:00 p.m. of the
scheduled collection day. Residents will be required to have materials placed at the
collection point by 6:00 a.m. on the scheduled collection day.
5. Municipal Facility Collection: Collection shall take place Monday -Friday daytime hours of
municipal facilities operation or upon special arrangement and agreement between the City
and the Contractor
6. Certification of CDUs: Certification of the number of CDU's in the city shall be done by the
city. The number of CDU's certified by the city shall serve as the basis for payment for
recycling collection services performed by the contractor. The number of CDU's will be
determined by the number of single family through tri-plex units certified by the utility
billing department. (minimum 2600 CDU's)
7. Compliance with Laws and Regulations: In providing services hereunder, the Contractor
shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of
services to be provided hereunder. Any material violation shall constitute a material breach
of this agreement. This contract shall be controlled by the laws of the State of Minnesota,
ordinances of Hennepin County and all ordinances of the City.
8. Weighing of Loads and Reporting Requirements: The contractor will keep accurate records.
consisting of an approved weight slip with the date, time, collection route, driver's
identification, vehicle number, rate and gross weight, net weight and number of route stops
for each loaded vehicle. Weight tickets shall be retained by the Contractor for a period of
three years. A detailed monthly report shall be provided to the City that identifies total
tonnage activity by commodity. This report should include all curbside and municipal
recycling activity. At a minimum, the Contractor shall provide one route participation audit,
to be conducted for the month of October, that includes the total house count and total
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number of actual participant set -out locations to comply with Hennepin County regulations.
Additional audits can be required upon agreement between the City and the Contractor.
The contractor may use an established tare weight for each collection vehicle and supply
the city with a list of each of the vehicles that will be used to perform collection in the city,
along with each vehicle's truck number and corresponding tare weight. The tare weight will
be the weight of the vehicle with % tank of fuel plus the weight of the driver. As an
alternative to the above method, collection vehicles may be weighed empty before each
collection to obtain a tare weight and weighed again after completion of a route or at the
end of the day, whichever occurs first.
10. The scale to be used by the contractor will be certified by the State of Minnesota. The
contractor will also include a report of the total tons collected, the percentage of the total
that each material type represents and the markets used for the sale of the recyclable
materials. These reporting requirements are required for the city's annual recycling report
to Hennepin County.
11. Recycle Cart Purchase and Delivery: The Contractor agrees to, at their expense, purchase,
deliver, service and repair, and maintain sufficient cart inventory to meet supply and
demand needs for Hopkins Recycling CDUs, estimated to be 3000 in number. The Contractor
shall have a sufficient inventory of 35 -gallon, 64 -gallon, and 96 -gallon carts available to
provide per resident/customer request. The standard cart shall be be smooth for ease in
cleaning. The cart shall be green with a yellow lid and be uniform and consistent in color and
design with a recycling symbol on two sides and front and approved instruction label
imbedded into each lid, so as to be easily identified by the resident/customer and the
Contractor driver as the container for recyclable materials. Residents may request
additional recycling carts if needed at no additional charge.
12. Recycling Cart Maintenance/Replacement: The driver is required to report to the
Contractor the location of any cart that is damaged. The Contractor is required to notify
the Recycling Coordinator by fax/email of any driver report of cart damage. The Recycling
Coordinator will .notify the Contractor by fax/email of any cart damage or request for change
of cart size that is reported/requested to them by customers/residents. Any damaged cart
or cart request will be repaired or replaced by the Contractor within one (1) week of the
report.
13. Point of Collection: Most residential recycling collection will occur at the same location
from where the regular refuse is collected, generally the alleys where they exist and street
curbside in other areas. Carts shall be placed with the handle toward the house and lid
opening toward the street or alley. The driver is required to place the emptied cart
back/down in the same location as set by resident.
Recycling carts/containers for Municipal recycling collection shall be placed at
agreed upon specific locations as determined by the City. All carts/containers shall be
returned to the specific location after completion of collection
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14. Ownership of Recyclable Materials: All recyclable materials for collection shall remain the
responsibility and in the ownership of the occupant of the CDU or Municipal location until
handled for collection by the Contractor. At the point of collection the recyclable materials
become the property of the Contractor. Any person or persons taking recyclable materials
from a curbside container without explicit permission of the CDU or Municipality will be in
violation of local ordinance and subject to penalty. The Contractor shall report to the
Recycling Coordinator any instances of suspected scavenging or unauthorized removal of
recyclable materials from any collection container.
15. Route Management and Customer Service: The Contractor shall, at all times, provide the
City Recycle Coordinator with a lead route/driver supervisor who is accessible to the
Contractor Dispatch department via two way communications and to the recycling
coordinator to handle route and collection issues in a timely fashion. The Contractor shall
have on duty Monday through Friday from 8:00 a.m. to 4:30 p.m. a Dispatch customer
service representative to receive customer calls and route issues. The Contractor shall
provide a 24 hour answering service line or device to receive customer calls. The Route
Supervisor and all collection vehicles must be equipped with 2 -way communication devices.
16. Procedure for Unacceptable Materials Materials Outside Cart and Unreachable Carts: If the
contractor determines that a resident has set out unacceptable recyclable materials, left
Recyclable Materials Outside of the cart, or has positioned the cart so that it is unreachable
with the mechanical arm, the contractor shall use the following procedures:
A. The contractor shall collect all the recyclable materials and leave an "education tag"
provided by the contractor attached to the handle of the recycling container indicating
acceptable materials, the proper method of preparation and the proper placement of the
cart.
B. The driver shall record the address and report the addresses to the Contractor Dispatcher,
who will notify the City's Recycling Coordinator of the addresses no later than noon the
following day.
17. Procedure for Complaints -Questions -Missed Collections. A complaint of service or missed
collection is a complaint received by the Contractor from either the customer or the
Administration office. If the report is for a missed stop and is received by the Contractor
before 1:00 p.m. on a scheduled working day, the Contractor is required to return to the
complaint address and complete the collection. If the report is registered after 1:00 p.m. on
a scheduled working day, the Contractor is required to return to the complaint address by
12:00 noon the following working day.
18. Clean up Responsibilities: The contractor shall adequately cleanup any recyclable material
spilled or blown during the course of collection and/or hauling operations. All collection
vehicles shall be equipped with at least one broom and one shovel for use in cleaning up
material spillage. The contractor shall have no responsibility to remove or clean up any
items, which are not recyclable materials.
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19. Non -Completion of Collection and Extension of Collection Hours: If the contractor
determines that the collection of recyclables will not be completed by 7:00 p.m. on the
scheduled collection day, he/she shall notify the Recycling Coordinator before 4:00 p.m. and
request an extension of the collection hours. The contractor shall inform the city of the
areas not completed, the reason for non -completion, and the expected time of completion.
20. Penalties for Missed Collections and Non -Completion of Collection Routes:
A. Reported missed collections not picked up by 12:00 noon on the business day following
the day of the reported missed collection: $ 20.00 each. If after receiving notice of a missed
collection location, the Contractor fails to make the collection by 1:00 p.m. on the business
day following the day of the reported miss, the City shall have the option of providing
collection to the missed location and deducting $50.00 from the Contractor's payment for
the month that the miss(es) occurred. This penalty is in addition to the above-mentioned
$20.00 penalty.
B. District -wide collection not completed by 7:00 p.m. on the scheduled collection day, if
the city has not been notified of the delay by 4:00 p.m. on the scheduled collection day, and
the Recycling Coordinator or his/her designee has not approved the delay: $1,000 per
occurrence.
C. Failure to complete a majority (50%) or more of pickups within the collection district, on
the scheduled collection day: $2,500 per occurrence.
The city may deduct the full amount of any liquidated damages from any payment due to
the contractor. The remedy available to the city under this paragraph shall be in addition
to all other remedies, which the city may have under law or at equity.
Exceptions. For purposes of this contract, the contractor shall not be deemed to be liable
for damages where its inability to perform recycling collection service is the result of
conditions beyond the control of the contractor, including, but not limited to, civil
disorder, act of God, inclement weather severe enough that trucks either cannot make
collections or are substantially slowed in their collections, changes in applicable statutes,
regulations, and ordinances; provide, however, that the contractor shall obtain the
approval for the delay from the Recycling Coordinator his/her designee prior to 4:00 p.m.
of the scheduled collection day. The contractor shall exhaust every reasonable remedy to
correct the conditions resulting in its non-performance. In the event that the contractor
fails to provide recycling collection service because of any of the above conditions and has
obtained approval from the Recycling Coordinator for the delay, then the contractor shall
have five (5) days (excluding Saturdays, Sundays, and holidays) to provide such service. In
the event of a continuing failure beyond said period, the contractor shall not be entitled
to payment for any CDU not so serviced.
21. Test Areas: The city reserves the right to have tests performed in the city. The amount of
areas removed for a test shall not exceed ten percent (10%) of the total number of CDU's,
unless otherwise agreed by the city and contractor. Duration of a test is limited to one
Page 12 of 17
hundred twenty (120) days, unless otherwise agreed by the city and contractor. The city
shall have the right to select equipment and person to conduct the test. No compensation
shall be provided because of fewer materials or stops during the test period.
22. Vehicle Licensing and inspection Requirements: All collection vehicles used in the
performance of this agreement shall be inspected and licensed each year by the city. A
single license and license fee per vehicle will be required and will permit the vehicle to
operate in the city. Each vehicle will be required to pass an inspection before being used in
the performance of this agreement and to pass yearly inspection thereafter. Inspections
will be conducted by the Public Works and Police Departments.
23. Collection Vehicle Equipment Requirements: Each collection vehicle shall be equipped with
the following:
1. A two way communication system
2. A first aid kit
3. An approved 2A10BC dry chemical fire extinguisher
4. Warning flashers
5. Overhead strobe light
6. "Reverse" audio warning alarm to indicate movement in reverse
7. Signs on the rear of the vehicle which state "This Vehicle Makes Frequent
Stops
8. A rear mounted video camera and cab monitor/screen to view operations
occurring at the rear of the vehicle
9. Hazard flares and cones
10. A broom and a shovel for cleaning up spills
11. "Absorb" pillows or dry product adequate to absorb/contain any oil/liquid
spill from collection vehicle.
All required equipment must be in proper working order at all times. All vehicles must be
maintained in proper working order and be clean and free from odor as much as possible.
All collection vehicles shall be uniformly painted and the paint shall be in good condition.
The Contractor's name shall be clearly visible from all sides of the vehicle, along with the
Contractor's phone number, the Recycling symbol, and the vehicle ID number.
24. Driver Duties and Responsibilities: The contractor shall be responsible for ensuring that
there is sufficient personnel and equipment to fulfill the requirements and specifications of
this contract proposal, and that all personnel are trained both in program operations and in
customer service and insure that all personnel maintain a positive attitude with the public
and in the work place and shall:
1. Conduct themselves at all times in a courteous manner and use no abusive or
foul language.
2. Be clean and presentable in appearance, as so far as possible.
3. Wear a uniform and employee identification badge or name tag.
4. Drive in a safe and considerate manner.
Page 13 of 17
5. Manage carts in a careful manner, setting them back in place so as to avoid
spillage and littering or damage to container.
6. Perform their work in a neat and quiet manner, monitor for any spillage and
be responsible for cleaning up any litter or breakage spilled in collection and
hauling operations
7. Record all addresses that could not be collected and reasons, turn list into
dispatch at end of each collection day and copies sent to Recycling
Coordinator.
8. Attach an education tag to the container identifying problems and how to
resolve them.
9. Collect and transport recyclable materials according to all existing laws and
ordinances, and future amendments thereto, of the State of Minnesota and
local governing bodies.
10. Report all damage to property.
25. Holidays: The contractor will observe all holidays on which no recycling collection service
will be performed. When a holiday occurs on a scheduled collection day, the collection for
each day of that week after the holiday shall be made one (1) working day later.
26. Hopkins City Hall and other Municipal Facilities
1. The contractor will provide weekly recycling collection service at designated collection
stops.
2. The recyclable materials collected will include: newspaper, aluminum, steel, tin and
bimetal food and beverage cans, glass bottles all colors, plastic bottles with a neck,
corrugated cardboard and miscellaneous paper, and aseptic packaging. Additional items
may be added with consultation between the city and the contractor.
3. The city and the contractor will agree on the times, places and methods of collection.
4. The city designated collection stops as of the date of these specifications are:
a. City Hall, 101015` Street South, Hopkins
b. Public Works 11100 Excelsior Blvd
C. Hopkins Pavilion, 11000 Excelsior Blvd
d. Activity Center, 33 —14th Ave N
e. Depot Coffee House, 9451 Excelsior Blvd
f. Hopkins Center forthe Arts, 1111 Mainstreet
g. Fire Department, 10117th Avenue 5
h. Other facilities may be added by agreement between the City and the Contractor
The Contractor agrees to provide refuse and recycling services during the Raspberry
Festival Family Days and Raspberry Festival Parade held each year during July. No extra
fees will be charged for this service. 90 -gallon carts for refuse and 90 -gallon carts for
recycling of aluminum, tin, plastic and glass, food and beverage container will be
provided along Mainstreet and in other City designated areas as agreed upon by the City
and Contractor during these events.
Page 14 of 17
26. City Clean Up: Contractor shall provide adequate roll off boxes and a roll off truck and
driver for the City's clean up held on a Thursday, Friday, and Saturday in the spring and the
fall. The actual roll off and driver services shall be at no charge to the City. Any disposal
fees will be paid by City. A contractor representative will be available on site for the
duration of the clean up.
27. Multiple Dwelling Units (Townhouse, Apartment, Condominiums): Multiple dwellings
within the City of Hopkins may be included under this contract. Compensation for this
service and the details of collection will be negotiated to the mutual satisfaction of the city
and the contractor.
28. Small Businesses: The city may add appropriate small businesses to the residential
collection routes as needed. The stops will be considered the same as a CDU for recycling
collection. The city will provide the contractor with a list of the addresses of the businesses
designated for recycling collection service. All requirements of the residential curbside
recycling program will apply to the businesses.
Page 15 of 17
Exhibit B
2011 Recvclina Contract Rate Schedule
Cost for Services
$2.99 per CDU per month for 4/1/2011 through 3/31/2012.
Annual Price Adjustment
The per CDU per month rate will be adjusted on an annual basis effective April 1 of each year
beginning in 2012. The adjustment will be based on the percentage of increase in either the
Consumer Price Index or 3 percent whichever is less. The Consumer Price Index —Ail Users
Midwest, percent change, March of current year Versus March of previous year change will be
used as the determining factor. This Index is released mid-April of each year.
Fuel Component
A monthly fuel surcharge will be separately itemized on the invoice. The fuel surcharge will be
adjusted monthly. The published index for determining monthly diesel fuel prices will be the
Department of Energy's (DOE) "Weekly Retail On -Highway Diesel Prices" for the Midwest
region. The price published for the first Monday of the month will be used as that month's
diesel fuel price. The prices can be viewed at the DOE's website:
<http://tonto.eia.doe.gov/oog/info/`wohdp/diesel.asp>.
Diesel Fuel Priceper Gallon
Fuel Surcharge
<$4.00
0 Percent
$4.00 to $4.24
2 Percent
$4.25 to $4.49
.4 Percent
$4.50 and Up
5 Percent
Recyclable Material Offset
A monthly fluctuating Recyclable Material Offset (RMO) will be separately itemized on the
invoice. Waste Management has a separate line item on the customer's invoice that reflects
the cost of processing recyclables minus 80 percent of the revenues from the materials. As
markets for recyclables fluctuate this line item can be a charge or a credit.
Waste Management will cap the processing cost for the Recyclable Material Offset
calculation at $57.25. With this addition the maximum RMO cost increase per CDU will not
exceed ($0.60) per month.
Page 16 of 17
EXAMPLE OF RECYCLABLE MATERIAL OFFSET (REVENUE/COST SHARE)
MONTH
BLENDED
80%
PROCESSING
MONTHLY
ADDITIONAL
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