09-1277Council File #��']'�
Green Sheet # 308413
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Presented by
1 WHEREAS, Eureka Recycling is under contract with the City of Saint Paul to provide recycling services
2 for the city through 2012 known as contract number 02-9872 and dated December 7, 1998, with all its
3 previous amendments; and
4
WHEREAS, cunent economic and recycling market conditions have necessitated the need for Eureka to
approach the city asldng for an amendment to their contract that would change the rate structure and how
they are paid for the collection, hauling and processing of recyclables; and
9 WHEREAS, amending the Recycling Service Agreement will provide a new rate structure that is more
10 commonly used and consistent within the recycling business and will be made retroactive back to March l,
11 2009, and
12
13 WHEREAS, amending the agreement will necessitate a service fee increase for residents for the collection,
14 hauling and processing of recyclables in 2010, with future cost adjustments to be made annually based on
15 the Consumer Price Index published by the Federal Reserve Bank of Minneapolis; and
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17 WHEREAS, amending the agreement will also allow the contract with Eureka to be extended through
18 2016, now
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20 THEREFORE BE IT RESOLVED, that the proper city officials are hereby authorized and directed, on
21 behalf of the City of Saint Paul, to execute an amendment to agreement number 02-9872 dated December
22 7, 1998, with all its previous amendments, in order to continue the collection, hauling and processing of
23 recyclables in Saint Paul provided under contract with Eureka Recycling.
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Reque�sted / by Department of:
PTK � \'7� 10/19/09/� � ublic Works
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By:
Form
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Adopted by Council: Date f/����1 Foim
Adoption Certified by Council retazy By �
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By:
Approved b� G� or: Date � Z 2i�
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green
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ConWct Person & Phone:
Paul Kurtr
266-6203
Must Be on Council Agenda by (Date):
04-NOV-09
Doc. Type: RESOLUTION
E-Document Required: N
Document Contact:
Contact Phone:
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For
Routing
Order
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Department
Public Works
Publie Works
Public Works
FinancialServices
City Attorney
,Mayor's Ofice
Council
PubGc Works
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Sent7oPereon InitiallDate
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Depar/meutAccountant � �U �ZZ—(J�
Department Director � ����g
Office of Financial Services �� • �
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� MayodASSistaut �
City Council
Public Works
ToWI # of Signature Pages � (Ciip All Locations for Signature)
Action Requested:
Authorize and direct proper ciry officials to execute an amendment to agreement 02-9872 between the City of Saint Paul and Eureka
Recycling
Recommendations: Approve (A) or Reject (R):
Planning Commission
CIB Commitlee
Civil Service Commission
e
Personai Service Contracts Must Answer the Following Questions:
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any
current city employee?
Yes No
I Explain all yes answers on separete sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
Eureka Recycling has approached the ciry asldng that their current contract be amended in order to change the rate structure and how
they aze paid for providing recycling seroices in Saint Paul. They cite the current economic situation and recycling mazket conditions
as reason for their amendment request.
Advantages If Approved:
Eureka Recycling will continue to provide quality recycling services to Saint Paul residen[s through 2016
Disadvantages If Approved:
An approved amendment will necessitate an increase in the service fee paid foz by residents in Saint Paul.
Disadvantages If Not Approved:
Risk having disrupted or no recycling service for residents.
ToWI Amount of
Transaction:
Funding Source:
Financiai Information:
j (Explain)
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CosGRevenue Budgeted:
Activity Number:
October 20, 2009 8:36 AM Page 1
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--- -- -- — — - �N7END1GfENT 'I'O AGRF:EI�;N'I� — —
This Amendment to the City of Saint Paul Contract Number 02-9872 Recycling
Services ?,greement dated December 7, 1998, and amended September 26, 2001; January
9, 2003; and December 9, 2005 (the "Recycling Services AgreemenP') is made and
entered into and of this day of , 2009 by and between the City of St.
Paul, a Minnesota municipal corporation (the "City"), and Eureka Recycling, a
Minnesota corporation (the Contractor").
WHEREAS, the Contractor has partnered with the City for over 20 years to
provide recycling services to the residents of the City; and
WHEREAS, the Contractor has experienced financial difficulty in recent times
due to unexpected downturns in the market for recycling materials; and
WHEREAS, the rates charged for recycling services have not been amended or
increased since 1998; and
WHEREAS, Contractor has requested the Recycling Services Agreement be
amended to provide for a new rate structure that is more commonly used in the
Contractor's business, and would assist the Contractor financially, and
WHEREAS, the City is willing to grant this request and amend the Agreement.
NOW, THEREFORE, the City and the Contractor agree to amend the Recyciing
Services Agreement pursuant to the following terms:
A. Collection Fees: Section 2 of the Recycling Services Agreement shall be
amended to adjust the payment of services for collection services to a per
unit basis from a per ton basis, and Section 2.A. shali be deleted and
replaced in its entirety and shall now state as follows:
2. The Citv shall provide the followine:
A. Pavments for hauler contract costs for
curbside/multi-familv/vublic buildings/public spaces collection
program administration, pro ram promotion and nublic education
and 222-SORT recyclina information hotline to meet the Base
Goals detailed in the attached Work Plan. for services be inning in
March of 2009, shall be set as follows:
$2.60 ner household per month
$1.64 ner multifamily unit per month.
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�— 'I'fie a�ion made m section 2.C)_of_the September_26,_2Q0_l _Amend�xien�--- ---
is hereby revised as follows, retroactive to March 1, 2009:
During any direct [Contractor] provision of processing services,
the City will receive 50% of all actual revenue derived from sale of
recyclable materials (revenue sharing), after the [Contractor]
retains the first �58 $60 /ton in revenue to pay for facility and
processing costs. Revenues retained by [Contractor] shall be
dedicated to enhancing recycling and waste reduction programs in
Saint Paul as detailed in the attached 2002 Work Plan and
subsequent Work Plans. '
C. The following provision is added to Section 2:
Consumer Price Index (CPI) Annual Adjustment. The Collection
and Pr�cessing fees will be adjusted on an annual basis. The collection
and processine fees for each new vear will be adiusted by the CPI Annual
Percentage Chanee percentaee published bv the Federal Reserve Bank of
Minneanolis for the fees chareed for the nrevious vear. This adjustment
will occur on March 1 s ` of each vear.
D. Amend the term of the Contract: Under Part 7 of the December, 1998
Agreement, amended in September of 2001, to state:
Term. This amendment will extend the term of the December,
1998 Agreement from Januazy 1, 2004 through December 31,
20�-316.
E. Effective Date and Retroactive Payment for Services. The City and the
Contractor have entered into this Agreement on the date first indicated
above. All revised payments for services previously rendered, but which
are now subject to the retroactive changes agreed upon herein, are due and
payable to the Contractor pursuant to a 3tatement of Reconciliation, which
Statement of Reconciliation shall be provided to the City at the time
Contractor signs this Agreement. City shali pay Contractor the amount set
forth in the Statement of Reconciliation as soon as possible after approval
and execution of this Amendment.
F. Amendments. This Amendment to the Recycling Agreement may be
amended upon mutual written agreement of the parties in the same form as
set forth herein. The City agrees it will re-open and amend Section 2 of
the Recycling Agreement, as amended, upon the basis that the Contractor
has incuned additional :�°�°�°�;� labor costs beyond those
anticipated in Section C above related to all services provided under this
contract.
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G. __ Meteer. The provisions-contained -in-th4s Agree�e�shal�be trierged a�- -- ----
incorporated into the Contractor's Recycling Services Agreement with the
City. All terms and conditions set forth in the Recycling Services
Agreement, as amended, shall remain in full force and effect as if fully set
forth herein.
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Dated:
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By:
Its
Dated:
Approved as to
Recommend
Recommend
City of St. Paul
By:
Director,
By:
Assistant City
By:
Director,
By:
Director, 1
and Equal
of Public Works
of Financial Services
of Human Rights
Opportuni[y
Approved: � By: