9.b) Staff Report-SRC Contract
Staff Report
Date of Meeting:
December 16, 2014
To:
City Council
From:
Kristina Handt, City Administrator
Re:
SRC Contract 2015-2018
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 has twice extended it for one year increments.
Washington County has been holding stakeholder meetings for the last few years and working on
the recycling grant scorecard. One of the items identified at a meeting in 2013 was providing
cities with technical assistance to update recycling contracts. Myself and Deputy Clerk Eklund
have been meeting with County staff and consultants over the last few months. They have
helped us develop a contract that will be more aligned with the recycling scorecard requirements.
Issue:
Should the Council approve the new contract with SRC for recycling services?
Proposal Details:
th
Brenda and I met with Rick Prahl of SRC on December 10 to discuss the new contract
proposal. Rick was generally agreeable to the new contract after we requested further
clarification from Washington County on weight reports.
A copy of the proposed contract is included in your packet and a summary of significant changes
are as follows:
Article 2: Term of the Contract is for three years (through December 31, 2018)
Article 3: Pickups begin at 6:00am (previously 7:00am) this was the only change SRC
requested
Article 3: Residents have the option of requesting a 96 gallon cart. Previously just 65
gallon. Alternatively, customers may request another 65 gallon cart at no additional
charge.
Article 3: SRC required to provide two education/outreach actions per year
Article 5: SRC is the only recyclables contractor in the City. City staff will notify Waste
Management of this pending approval of the contract. This will save current Waste
Management customers the recycling fee however, it may mean their recycling goes out a
different day of the week than their garbage collection.
Article 8: Weight records of trucks, confirmation of data, # of pick-ups, and addresses of
those not putting out recyclables. The latter will be particularly helpful to the City in
identifying the focus of educational and outreach efforts.
Article 9: $3,000 Performance Bond and $50,000 Payment Bond
Article 13: Liquidated Damages for not collecting items on Washington County List of
Standard Recyclables (G) has been added.
Fiscal Impact:
The new contract maintains the same monthly rate as the previous contracts. 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 with SRC.
2)Amend the Contract and then Approve
3)Extend existing contract
4)Issue an RFP for recycling services
Recommendation:
Option 1.