E. 2 Stillwater Hauler Contract Extension 2021-2026Date: May 14, 2021
TO: Mayor and Council
FROM: Tom McCarty, City Administrator
Beth Wolf, City Clerk
SUBJECT: Waste Management Contract Amendment
BACKGROUND:
Waste Management has hauled refuse and recyclables for the residents of Stillwater
for over 50 years. The single waste hauler system was hailed by those who saw it as
reducing street and alley truck traffic, reduce costs, reduce impact of heavy trucks
on local roads, reduce truck noise and pollution, increase safety, reduce visibility of
carts on streets to one day a week and deter illegal trash dumping.
Staff has been working with Waste Management since last fall on contract language
and rates for residential and multi-family complexes. Waste Management and other
haulers that staff researched have kept their prices steady even when more waste has
been produced by residents being home during Covid. Disposal costs are rising
because of the increased volumes and the declining recycling market. Rate increases
are necessary to address state mandates and increased costs in recycling services.
Overall, the City of Stillwater still has a sustainable package offering several services
and low rates for its residents.
Tipping fees at the Ramsey Washington County Environmental facility in Newport for
2021 are $84/ton, up $2 from 2020. The tonnage increase is based on program
history, from June 2019 to July 2020, during which 58,214.15 tons of trash were
collected. That’s an increase of 1,445.48 tons over the previous year. The City nor
Waste Management control the disposal tipping fee increases that occur each
January and will pass along this fee to the consumer.
The rates will increase for 2021 to the following:
Cart Type Current Rate Proposed Rate Increase Amount
Senior Cart $38.40 $42.48 $4.08
Small Cart $52.89 $57.75 $4.86
Medium Cart $62.70 $67.71 $5.01
Large Cart $75.57 $80.79 $5.22
These rates include the disposal tipping fee and recycle materials however it does
not include billing fee or state and county taxes. On July 1, 2022 through 2026, rates
will increase 2.5% each year (the disposal tipping fee occurs in January. See
appendix for breakdown of fees (Senior cart receives an additional price break for
yard waste). Multi-Unit rates will increase each year 2.5%.
The organized collection program will continue to offer curbside collection of two
bulk items, four consumer electronics, three appliances, and unlimited yard waste.
There is still a free walk-up service for people who cannot move their carts to the
alley or street curb. Service holds will continue to be offered for people who are
gone for more than 90 days. Additional service fees will remain the same for cart
size changes, off-day service pickups, additional bulk items, and additional garbage
bags placed outside of a cart.
Attached for your review are the proposed changes for July 1, 2021 - June 30,
2026 to amend the Waste Management Contract.
RECOMMENDATION:
Staff recommends Council approve amending the Waste Management Contract
for July 1, 2021 – June 30, 2026. It is equitable for the City, its residents and
Waste Management while keeping with the spirit of the organized garbage
contracts that have taken place since the 1940s while encouraging recycling
throughout our community at a reasonable cost.
ACTION REQUIRED:
If Council concurs with the recommendation, they should pass a motion adopting
a Resolution entitled “Approving Amending Agreement With Waste Management
Of Minnesota, Inc. Effective July 1, 2021 - June 30, 2026 And Establishing Monthly
Rate Schedules For The Collection Of Solid Waste And Recycling”.
City of Stillwater
Washington County, Minnesota
RESOLUTION 2021‐
APPROVING AMENDING AGREEMENT WITH WASTE MANAGEMENT
OF MINNESOTA, INC. EFFECTIVE JULY 1, 2021 ‐ JUNE 30, 2026
AND ESTABLISHING MONTHLY RATE SCHEDULES FOR THE
COLLECTION OF SOLID WASTE AND RECYCLING
BE IT RESOLVED by the City Council of Stillwater, MN that the Amendement
to the Agreement between the City of Stillwater and Waste Management of
Minnesota, Inc. for garbage and recycling, as on file with the City Clerk, is hereby
approved and authorizes the Mayor and City Clerk to sign the amendment.
BE IT FURTHER RESOLVED, by the City Council of Stillwater, MN that the
attached “Appendix A” entitled “Solid Waste & Recycling Rates” and “Appendix B”
entitled “ Dumpster Rate – Multi-Family (More Than 3 Units)” and are hereby
approved.
Adopted by the Stillwater City Council this 18th day of May 2021.
CITY OF STILLWATER
________________ _____________
Ted Kozlowski, Mayor
Attest:
______________________ _________
Beth Wolf, City Clerk
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SECOND AMENDMENT TO MUNICIPAL SOLID WASTE AND RECYCLING
SERVICE AGREEMENT BETWEEN THE CITY OF STILLWATER AND WASTE
MANAGEMENT OF MINNESOTA, INC.
THIS AGREEMENT (“Agreement”) entered into this day of May, 2021, by
and between the City of Stillwater, Minnesota (“City”) and Waste Management of
Minnesota, Inc. (“Contractor”).
WHEREAS, the City entered into a 5-year Municipal Solid Waste And Recycling
Service Agreement (“Agreement”) with Contractor on July 1, 2016; and
WHEREAS, City and Contractor desire to extend the Agreement for an additional
5-year term as set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties agree as follows:
1. Section 1 of the Agreement is hereby removed and replaced in its entirety as follows:
The term of this Agreement shall be July 1, 2021 through June 30, 2026.
1.1 The Agreement may be extended upon mutual agreement with the City or
Contractor notifying the other party ninety (90) days in advance of the end of
the Agreement. The Agreement terms and conditions, with the exception of
the end date, shall not change or be modified.
1.2 The City reserves the right to terminate this Agreement for material breach or
unsatisfactory performance by Contractor. Termination shall not affect the
City’s right to make a claim against Contractor or its Performance Bond for
the damages on account for such a breach.
2. Section 4.2 of the Agreement is hereby removed and replaced in its entirety as follows:
4.2 Residential Solid Waste & Recycle Material Collection (Fees).
The Contractor’s service fees for residential and multi-family complexes using Carts
for solid waste and recycle material collection shall be determined in accordance with
the fee schedule attached hereto as Appendix “A”. This schedule will be in effect
during the period of July 1, 2021 until June 30, 2026. The fees will be adjusted by
2.5% each year effective July 1. In the event the Contractor should incur any actual
increases in government taxes/fees, the City agrees to negotiate with the Contractor
to rectify the inadequacies. Both parties must agree upon these adjustments.
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Multi-family residences of three (3) or more units, Bed and Breakfasts, and
businesses operated out of a residence shall be entitled to choose the MSW Cart size
at the normal rate, or in lieu of Carts, a dumpster of similar capacity. If a dumpster
is provided in lieu of a Cart, refer to Section 8.2 for more information.
3. Section 4.3 of the Agreement is hereby removed and replaced in its entirety as follows:
4.3 Certification of Unpaid Bills. City will certify to Washington County, on an annual
basis, all delinquent Municipal Solid Waste and Recycling charges. These amounts
will be payable with the owner’s property taxes.
As required by Minnesota Statutes to assess Solid Waste delinquent billing
amounts, the Contractor must conplete the following certification process:
Send Notices/Certification Letters to Account Holders/Property Owners of the
properties no later than September 30th each year to meet Minnesota Statute
requirements of 45 days to pay before certification (November 15th each year).
Letter must include the certification amount for Unpaid Balances for July 1st of
previous year thru June 30th of current year and must not consist of delinquent
charges for any other period.
Letter must include Due Date of November 15th for payment of Unpaid Balance
to avoid certification.
Letter must provide a contact name and telephone number to answer questions
regarding certification letters, amounts of certifications, etc., to ensure that
Customer Service does not refer them back to the City.
Provide a copy of all Notices/letters sent to Account Holders/Property Owners to
the City no later than September 30th in electronic form (i.e. flash drive or CD)
for the City’s records.
Contractor will not accept any further delinquent payments from customers after
November 15th.
Create Certification list with verified Property ID numbers formatted as
##.###.##.##.#### (County requirement) and amounts for certification by the 3rd
Friday of October.
The Contractor shall provide the City with the list to be certified in an electronic
format.
Any changes in Property ID numbers that were corrected and emailed to the
Contractor by the City the previous year need to be reflected in the current year.
Contractor understands that should any part of the above Certification Process as
described above is not completed, the City will not certify any delinquent billings
to the County until the following year in order to meet Minnesota Statute
assessment requirements.
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4. Section 8 of the Agreement is hereby removed and replaced in its entirety as follows:
8 VOLUME BASED MSW SYSTEM.
Volume/Weight-based MSW fees must be offered to each residence, in compliance with
Minn. Stat. §115A.93 subd. 3.
8.1 The Contractor shall furnish and deliver Carts for MSW in small, medium, and
large sizes to residents. Residents shall be allowed to choose the number and size
of the Cart(s) for their residence and will be billed according to the Rate Schedule
as established by resolution of the City Council. If the Contractor chooses to
supply Carts that are slightly larger than the sizes listed above, it shall be
considered in compliance with this provision. Carts will remain the property of
the Contractor.
8.2 The purpose of this section is to ensure that all dumpster accounts are equally
charged by size and number of service days.
Multi-family residences of three (3) or more units, Bed and Breakfasts, and
businesses operated out of a residence shall be entitled to choose the MSW Cart
size at the normal rate, or in lieu of Carts, a dumpster of similar capacity. If a
dumpster is provided in lieu of a Cart, the rate charged for the dumpster shall be
at the rate shown in “Appendix B” as adopted and amended by the City Council.
Multi-family complexes currently using dumpsters rather than carts will be
charged by size and number of service days (See Appendix “B”).
Bulk Rates for multi-family residents of three (3) or more units, Bed and
Breakfasts, and businesses operated out of a residences shall be $15.00 per item.
The Contractor will notify the multi-family complexes affected by the changes in
this section before the change in rates are implemented.
8.3 Except that for multi-dwelling units containing 50 or more units which are rented
exclusively to persons whose head of household is 62 years of age or older, the
rate shall be as per unit as listed under “Senior Accounts” in the Rate Schedule as
adopted and amended by the City Council.
8.4 In the event a resident desires collection of waste in excess of the Cart size it has
selected, the Contractor shall pick up the excess waste and bill the resident
directly on the resident’s quarterly invoice in the amount of $1.50 for each
additional 30-gallon bag or equivalent of excess household waste.
8.5 The Contractor shall not be obligated to change Cart size at intervals of less than
two (2) billing quarters and upon less than thirty (30) days’ notice.
8.6 The rate for collection per month shall be as stated on the Rate Schedule as,
“Adopted and amended by resolution of the City Council.”
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8.7 Residents who will be continuously absent from the City for more than 90 days
shall be entitled to a reduced rate to $0.00 per month during the period of their
absence. Notification shall be made by the Resident that they will be absent for
more than 90 days.
5. Section 9 is hereby removed and replaced in its entirety as follows:
9 NET DISPOSAL COST
The net disposal cost is $84.00 per ton. Any adjustments in the net disposal cost
shall be negotiated between the City and Contractor. Neither party shall request
more than one adjustment per 12-month period.
6. Section 15 is hereby removed and replaced in its entirety as follows:
15 MUNICIPAL FACILITIES COLLECTION REQUIREMENTS.
15.1 Contractor shall collect and dispose, without additional charge, such MSW
and Recycling as is the responsibility of the City, or which is accumulated by
the City, or for the City, such as street cans and park barrels and Recycling
containers, including Recycling and MSW from all City-owned facilities:
City Hall, 216 4th Street N.
City Parks
Public Works Building, 3225 Boutwell Road including:
o Two (2) 30 yard demolition roll-offs two (2) times a year when
requested by the Public Work Superintendent
St. Croix Recreation Center, 1675 Market Drive
Lily Lake Arena, 1208 Greeley Street S
Stillwater Public Library, 224 3rd Street N.
Police Department, 216 4th Street N.
Fire Station, 250 Maryknoll Drive
Annual Lumberjack Days and 4th of July Special Events
Water Department Facility, 204 3rd Street N.
15.2 In the event of a natural disaster within the City, the Contractor shall make
dumpsters available as necessary for the cleanup at a price to be negotiated
at the time the service is rendered.
7. Section 19.1 is hereby removed and replaced in its entirety as follows:
19.1 Contractor shall provide a 96 gallon Cart for Yard Waste if requested by Resident
for $2.00 per month. For a one-time user fee of $48.00, Contractor will provide a 96
gallon Container for Yard Waste. The Carts and Containers furnished by Contractor
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shall remain property of Contractor. Only compostable bags are permitted to be used
in the Containers for Yard Waste.
8. Appendix A is hereby removed and replaced in its entirety as attached hereto.
9. Appendix B is hereby removed and replaced in its entirety as attached hereto.
10. The remaining terms and conditions of the Agreement shall remain unchanged and
continue in full force and effect.
IN WITNESS WHEREOF, the parties hereto have signed and executed this Agreement on
the day and year first written below.
CITY OF STILLWATER
Date:
Mayor Ted Kozlowski
Date:
City Clerk Beth Wolf
WASTE MANAGEMENT OF MINNESOTA, INC.
Date:
Signature
By:
Its:
APPENDIX “A-1” –RESIDENTIAL RATES FOR SERVICES
Year 1 – July 1, 2021 to June 30, 2022
Cart Size Sr (35) 35 Gallon 64 gallon 96 gallon
Collection $ 4.95 $ 8.66 $ 9.65 $ 11.34
Disposal ($84 per Ton) $ 2.06 $ 2.42 $ 4.75 $ 7.42
Recycling $ 3.70 $ 3.70 $ 3.70 $ 3.70
Yard waste $ 1.92 $ 2.94 $ 2.94 $ 2.94
Bulk $ 1.53 $ 1.53 $ 1.53 $ 1.53
Billing $ 0.50 $ 0.50 $ 0.50 $ 0.50
TOTAL $ 14.66 $ 19.75 $ 23.07 $ 27.43
Year 2 – July 1, 2022 to June 30, 2023
Cart Size Sr (35) 35 Gallon 64 gallon 96 gallon
Collection $ 5.07 $ 8.88 $ 9.89 $ 11.62
Disposal ($84 per Ton) $ 2.06 $ 2.42 $ 4.75 $ 7.42
Recycling $ 3.79 $ 3.79 $ 3.79 $ 3.79
Yard waste $ 1.97 $ 3.01 $ 3.01 $ 3.01
Bulk $ 1.57 $ 1.57 $ 1.57 $ 1.57
Billing $ 0.51 $ 0.51 $ 0.51 $ 0.51
TOTAL $ 14.98 $ 20.18 $ 23.53 $ 27.93
Year 3 – July 1, 2023 to June 30, 2024
Cart Size Sr (35) 35 Gallon 64 gallon 96 gallon
Collection $ 5.20 $ 9.10 $ 10.14 $ 11.91
Disposal ($84 per Ton) $ 2.06 $ 2.42 $ 4.75 $ 7.42
Recycling $ 3.89 $ 3.89 $ 3.89 $ 3.89
Yard waste $ 2.02 $ 3.09 $ 3.09 $ 3.09
Bulk $ 1.61 $ 1.61 $ 1.61 $ 1.61
Billing $ 0.52 $ 0.52 $ 0.52 $ 0.52
TOTAL $ 15.29 $ 20.62 $ 23.99 $ 28.44
Year 4 – July 1, 2024 to June 30, 2025
Cart Size Sr (35) 35 Gallon 64 gallon 96 gallon
Collection $ 5.33 $ 9.33 $ 10.39 $ 12.21
Disposal ($84 per Ton) $ 2.06 $ 2.42 $ 4.75 $ 7.42
Recycling $ 3.98 $ 3.98 $ 3.98 $ 3.98
Yard waste $ 2.07 $ 3.17 $ 3.17 $ 3.17
Bulk $ 1.65 $ 1.65 $ 1.65 $ 1.65
Billing $ 0.53 $ 0.53 $ 0.53 $ 0.53
TOTAL $ 15.63 $ 21.08 $ 24.48 $ 28.97
Year 5 – July 1, 2025 to June 30, 2026
Cart Size Sr (35) 35 Gallon 64 gallon 96 gallon
Collection $ 5.46 $ 9.56 $ 10.65 $ 12.52
Disposal ($84 per Ton) $ 2.06 $ 2.42 $ 4.75 $ 7.42
Recycling $ 4.08 $ 4.08 $ 4.08 $ 4.08
Yard waste $ 2.12 $ 3.25 $ 3.25 $ 3.25
Bulk $ 1.69 $ 1.69 $ 1.69 $ 1.69
Billing $ 0.54 $ 0.54 $ 0.54 $ 0.54
TOTAL $ 15.96 $ 21.54 $ 24.96 $ 29.50
APPENDIX “B-1” –DUMPSTER RATES FOR MULTI-FAMILY (MORE THAN 3 UNITS) The following rates are effective July 1, 2021 and shall be increased by 2.5% each year on July 1 Trash Service Level OPM Dis OPM Col OPM Total EOW Dis EOW Col EOW Total 1 Dis 1 Col 1 Total 2 Yard FEL $ 7.14 $ 14.49 $ 21.63 $ 15.49 $ 27.52 $ 43.01 $ 30.92 $ 51.83 $ 82.75 Additional 2 Yard $ 7.14 $ 10.19 $ 17.33 $ 15.49 $ 18.22 $ 33.71 $ 30.92 $ 33.23 $ 64.15 3 yard FEL $ 10.71 $ 15.27 $ 25.98 $ 23.24 $ 28.56 $ 51.80 $ 46.37 $ 53.41 $ 99.78 Additional 3 Yard $ 10.71 $ 10.97 $ 21.68 $ 23.24 $ 19.26 $ 42.50 $ 46.37 $ 34.81 $ 81.18 4 Yard FEL $ 14.28 $ 15.86 $ 30.14 $ 30.99 $ 29.40 $ 60.39 $ 61.83 $ 54.79 $116.62 Additional 4 Yard $ 14.28 $ 11.56 $ 25.84 $ 30.99 $ 20.11 $ 51.10 $ 61.83 $ 36.18 $ 98.01 6 Yard FEL $ 21.42 $ 17.88 $ 39.30 $ 46.48 $ 31.95 $ 78.43 $ 92.74 $ 58.39 $151.13 Additional 6 Yard $ 21.42 $ 13.59 $ 35.01 $ 48.48 $ 20.64 $ 69.12 $ 92.74 $ 39.80 $132.54 8 Yard FEL $ 28.56 $ 19.20 $ 47.76 $ 61.98 $ 33.78 $ 95.76 $123.66 $ 61.29 $184.95 Additional 8 Yard $ 28.56 $ 14.91 $ 43.47 $ 61.98 $ 24.47 $ 86.45 $123.66 $ 42.69 $166.35 Trash Service Level 2 Dis 2 Col 2 Total 3 Dis 3 Col 3 Total 4 Dis 4 Col 4 Total 2 Yard FEL $ 61.83 $100.40 $162.23 $ 92.75 $148.96 $241.71 $123.66 $197.52 $321.18 Additional 2 Yard $ 61.83 $ 63.19 $125.02 $ 92.75 $ 93.14 $185.89 $123.66 $123.11 $246.77 3 yard FEL $ 92.75 $102.99 $195.74 $139.12 $152.59 $291.71 $185.50 $202.17 $387.67 Additional 3 Yard $ 92.75 $ 65.79 $158.54 $139.12 $ 96.77 $235.89 $185.50 $127.75 $313.25 4 Yard FEL $123.66 $105.40 $229.06 $185.50 $156.01 $341.51 $247.32 $206.64 $453.96 Additional 4 Yard $123.66 $ 68.20 $191.86 $185.50 $100.20 $285.70 $247.32 $132.23 $379.55 6 Yard FEL $185.50 $111.05 $296.55 $278.24 $163.73 $441.97 $371.00 $216.38 $587.38 Additional 6 Yard $185.50 $ 73.85 $259.35 $278.24 $107.92 $386.16 $371.00 $141.98 $512.98 8 Yard FEL $247.33 $116.01 $363.34 $370.99 $170.73 $541.72 $494.64 $225.47 $720.11 Additional 8 Yard $247.33 $ 78.80 $326.13 $370.99 $114.92 $485.91 $494.64 $151.05 $645.69 Trash Service Level 5 Dis 5 Col 5 Total 6 Dis 6 Col 6 Total 7 Dis 7 Col 7 Total 2 Yard FEL $154.58 $246.08 $400.66 $185.50 $294.64 $480.14 $216.41 $343.21 $559.62 Additional 2 Yard $154.48 $153.17 $307.65 $185.50 $183.02 $368.52 $216.41 $212.98 $429.39 3 yard FEL $231.87 $251.76 $483.63 $278.24 $301.35 $579.59 $324.62 $350.94 $675.56
Additional 3 Yard $231.87 $158.74 $390.61 $278.24 $189.74 $467.98 $324.62 $220.71 $545.33 4 Yard FEL $309.16 $346.25 $655.41 $371.00 $307.85 $678.85 $432.83 $358.47 $791.30 Additional 4 Yard $309.16 $164.23 $473.39 $371.00 $196.24 $567.24 $432.83 $228.25 $661.08 6 Yard FEL $463.74 $269.06 $732.80 $556.48 $321.74 $878.22 $649.24 $374.39 $1,023.63 Additional 6 Yard $463.74 $176.05 $639.79 $556.48 $210.12 $766.60 $649.24 $244.18 $893.42 8 Yard FEL $618.32 $280.16 $898.48 $742.00 $334.88 $1,076.88 $865.65 $389.62 $1,255.27 Additional 8 Yard $618.32 $187.16 $805.48 $742.00 $223.26 $965.26 $865.65 $259.39 $1,125.04 Recycle Service Level OPM EOW 1 2 3 4 5 6 7 2 Yard FEL $ 15.94 $ 30.28 $ 56.92 $110.21 $163.50 $216.78 $270.07 $323.36 $376.64 Additional 2 Yard $ 11.43 $ 20.51 $ 37.39 $ 71.14 $104.89 $138.65 $172.40 $206.15 $239.91 3 yard FEL $ 16.68 $ 31.62 $ 59.37 $114.89 $170.89 $225.91 $281.42 $336.94 $392.45 Additional 3 Yard $ 12.17 $ 21.84 $ 39.84 $ 75.81 $111.80 $147.78 $183.76 $219.73 $255.72 4 Yard FEL $ 18.66 $ 34.20 $ 63.07 $120.81 $178.55 $236.29 $294.03 $351.76 $409.50 Additional 4 Yard $ 14.16 $ 24.43 $ 43.53 $ 81.74 $119.94 $158.15 $196.35 $234.57 $272.77 6 Yard FEL $ 21.08 $ 37.81 $ 68.91 $131.10 $193.29 $255.48 $317.68 $379.87 $442.06 Additional 6 Yard $ 16.57 $ 28.05 $ 49.37 $ 92.03 $134.69 $177.35 $220.00 $262.67 $305.33 8 Yard FEL $ 22.85 $ 40.78 $ 74.10 $140.75 $207.39 $274.04 $340.68 $407.33 $473.97 Additional 8 Yard $ 18.34 $ 31.02 $ 54.57 $101.68 $148.80 $195.90 $243.02 $290.13 $337.24