08.c Waste Management Contract Amendment1
Staff Report
Date of Meeting: March 17, 2026, City Council Meeting
To: Mayor and City Council
From: Kyle Morell, City Administrator
Re: Potential Amendments to Waste Management Contract
__________________________________________________________________________________
Background
The City signed a contract with Waste Management (WM) in 2023, to be the exclusive solid waste and
recycling hauler for the City of Scandia from 2024 through 2030. During the negotiations the City has
asked for a garbage only option for its residents. At that time, WM was not willing to put that provision
into the contract. Since the contract went into effect, numerous requests from residents have come in
asking for a garbage only option.
The City was assigned a new WM representative in late 2025. Since that time customer service from
WM has improved and communication between the City and WM has improved. At my first quarter
2026 meeting with our WM representative, I inquired about adding a garbage only and senior rate
options to our contract. The senior rate will only apply to those residents that have the smallest garbage
container.
The attached amendment is presented for Council review. It outlines the articles of the contract that will
need to be amended to add a garbage only service option and a senior rate. I have not had the
opportunity to review our solid waste and recycling city code chapters to see if them also need
amendment. Therefore, the language is only presented this month for review. If Council does not have
any objections then it will be brought back in April for approval.
Attachments:
Scandia WM Contract Amendment
AMENDMENT NO. 1
TO THE MUNICIPAL SOLID WASTE AND RECYCLING SERVICE AGREEMENT
BETWEEN THE CITY OF SCANDIA AND WASTE MANAGEMENT OF MINNESOTA, INC.
This Amendment No. 1 (“Amendment”) is made and entered into as of the ___ day of
__________, 2026, by and between Waste Management of Minnesota, Inc. (“Contractor”)
and the City of Scandia (“City”). This Amendment modifles the Municipal Solid Waste and
Recycling Service Agreement dated December 19, 2023, for services beginning January 1,
2024 through December 31, 2030 (“Agreement”).
RECITALS
WHEREAS, the Agreement establishes curbside collection services for Municipal Solid
Waste (“MSW”) and Recycling for Residential Dwellings within the City; and
WHEREAS, residents are currently billed for and receive both MSW and Recycling services
as a combined service package; and
WHEREAS, the City desires to provide residents with an alternative “Garbage-Only
Service Option” under which residents may elect to subscribe solely to MSW collection
without participating in curbside recycling; and
WHEREAS, Section 36 of the Agreement permits amendments reduced to writing and
signed by both parties;
NOW, THEREFORE, the parties agree as follows:
1. Addition of Garbage-Only Service Option
A new subsection 2.1 is hereby added to Section 2 – Scope of the Agreement:
2.1 Garbage-Only Service Option.
In addition to the existing combined MSW and Recycling service offering, Contractor
shall make available to all Residential Dwellings an optional “Garbage-Only Service
Option,” under which eligible residents may subscribe exclusively to MSW collection.
Recycling collection is not required for participation in the Garbage-Only Service
Option.
Residents electing this option shall:
1. Receive MSW collection in accordance with Section 6 of the Agreement;
2. Be provided an MSW Cart pursuant to Section 8; and
3. Not be required to accept or maintain a Recycling Cart.
2. Recycling Services Unchanged for Residents Who Elect Them
Nothing in this Amendment modifles:
• The City’s recycling program,
• Contractor’s obligations under Section 10 (Recycling) for participating residents,
• Requirements for Single-Sort Recycling collection,
• Cart standards or education obligations.
Residents may voluntarily choose between:
• MSW + Recycling (existing combined service)
• MSW-only (new service option)
The City will continue to determine eligibility and participation rules for recycling.
3. Conforming Changes
Where the Agreement references “all residents” receiving both MSW and Recycling
services, such statements shall be interpreted to allow the new Garbage-Only Service
Option.
4. Amendment to Rate Schedule / Senior Rate
Appendix A – Solid Waste & Recycling Rates is hereby amended to refiect the removal of
recycling services and to add a Senior Rate. The following rate schedule will apply
beginning __________, 2026:
Monthly MSW Collection Rates
Cart Size Standard Rate Senior Rate*
35-gallon (Small) $ 20.61 $17.11
*Senior Rate applies only to “Senior or Adjusted Accounts” as deflned in Section 3.22 of
the Agreement.
The Annual Rate Increase formula described in Section 4.2 remains unchanged and will be
applied to both Standard and Senior Rates.
4. CPI-U Notification Requirement
Contractor shall notify the City of the upcoming year’s rates within twenty (20) business
days after the Bureau of Labor Statistics publishes the November CPI-U index needed for
the Agreement’s three-year rolling average calculation.
5. Remaining Terms
Except as expressly modifled by this Amendment, all other terms, conditions, rights, and
obligations of the Agreement remain in full force and effect.
SIGNATURES
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date flrst
written above.
CITY OF SCANDIA
By: _______________________________
Name:
Title:
Date: ____________________________
WASTE MANAGEMENT OF MINNESOTA,
INC.
By: _______________________________
Name:
Title:
Date: ____________________________