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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 1 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. 2 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. 3 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.” 4 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 5 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