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9.a) Staff Report-SRC Contract Extension and Spring Clean-up Event`��TI SCA \ DIIA Staff Report Date of Meeting: March 18, 2014 To: City Council From: Brenda Eklund Re: SRC Contract Extension and Spring Clean-up Event Background: In March of 2001 New Scandia Township entered into a contract for collecting and disposing of recyclable materials. The agreement has been extended every year. In May of 2012 the Council updated their contract with SRC, and last year extended the term through 2013. A copy is included in your packet. Issue: Should the Council approve the extension of the recycling contract with SRC until the end of 2014? Proposal Details: Rick Prahl, SRC Inc., will be present at the meeting to update the Council on the recycling program and give his annual report. SRC is proposing to continue with the existing terms of the contract as has been done in the past, and staff is proposing an extension of the agreement be approved. The contract price—$2,320.50 per month, or $27,846 per year—is the same price that has been in effect since 2001. Fiscal Impact: Grant revenue from Washington County helps offset a portion of this expense ($7,235, or about 25 %.). The remaining cost is covered by the General Fund. Options: 1) Approve the contract extension with SRC through 2014. 2) Direct Staff to prepare a new contract with SRC; identify terms to be negotiated 3) Issue an RFP for recycling services Recommendation: Option 1. Spring Clean-up Event: Mr. Prahl will also describe the spring clean-up event that will be replacing the annual "Heavy Metal Day", which had been operating with lower turnouts over the years. Last June, Mr. Prahl addressed the Council with a proposal to have Scandia residents deliver rubbish, scrap metal and trash materials to SRC's Wyoming facility. This is a service the business has been conducting with the cities of Columbus and Forest Lake as a replacement of their one -day clean-up events, with residents receiving a 10-15% discount off the collection prices. Council members requested a greater discount to compensate for the further distance which Scandia residents are from the Wyoming site. SRC will offer Scandia residents a 20% discount off the regular collection prices during the week of Saturday, April 26 to Saturday, May 3. SRC will not be charging the City for this collection. Information on the event will be included in the spring newsletter and posted on the city's website. SRC will publicize the event in the local newspapers.