4. Waste and Recycling Update►3C1'ilr DIIA
Staff Report
Date of Meeting: April 5, 2023
To: Mayor and City Council
From: Anne Hurlburt, Interim City Administrator
Re: Waste and Recycling: Status Report on Negotiations
with Waste Management
The purpose of this report is to update the Council on the negotiations with Waste Management
(WM) and to recommend the next steps as the city determines how best to provide waste and
recycling services to Scandia residents.
Background:
At the January 4, 2023 meeting, the Council gave staff direction to begin pursuing an organized
collection system for trash and recycling services. Organized collection is an optional use of the
city's authority to choose the waste hauler(s) to serve the community. The advantages of
organized collection include: limiting impacts of truck traffic on street maintenance costs,
vehicle noise and emissions, fuel consumption, and accidents; greater ability for the city to
manage service requirements; and, standardized service in the community. The price paid by
households in an organized collection system is generally lower per month for similar service
levels than in an open collection system due to increased efficiencies from serving every
household in the community or on a particular route.
The first step in the process to consider organized collection was to enter into a required,
exclusive, 60 -day negotiation period with existing haulers. At the February 1, 2023 meeting, the
Council approved the notice, which was published on February 8, 2023 for a negotiation period
ending on April 9, 2023. The Council also appointed a Waste and Recycling Negotiation
Committee consisting of two council members (Benson and Lubke) along with staff and
consultants.
The committee met on February 22, 20923 to discuss what services should be discussed in
negotiations with Waste Management (WM), the city's only current waste and recycling hauler.
We reviewed contracts from other area communities (Afton, Bayport and Stillwater) as well as
Scandia's previous contract with SRC for recycling services, and created a detailed list of items
to be discussed with WM in the negotiation.
On March 14, four members of the committee (Hurlburt, Benson, Fischer & Larson) held the
first negotiation meeting with Waste Management (WM) representatives Pat Cosgrove, WM
Area Public Sector Manager and Jason Hartman, WM Public Sector Sales Representative. After
that meeting, WM transmitted a contract "template" and a 2023 pricing proposal.
The same group met again on March 28, 2023. Following that meeting, the attached proposal
letter was submitted.
WM Proposal:
WM proposes a 5 -to -7 -year contract for trash and recycling, for residential service only. We
have been advised that Minnesota Statutes require a minimum of 7 years for an initial contract
The proposal includes rates for the remainder of 2023 (assuming a contract is approved before
the end of year.) Rates would be adjusted annually on January 1 each year as determined by the
agreement (an inflationary adjustment of collection fees plus any disposal cost increase set for
the Ramsey/Washington Waste to Energy (WTE) facility.) The rates shown do NOT include
taxes (Mn Solid Waste Tax of 9.75% or county environmental charges) so caution must be taken
when comparing rates to current bills. It appears that the rates may be approximately $1.00, or a
bit more, per month than currently paid by WM customers previously served by SRC, whose
rates have been protected at SRC's prices through September of 2023. We can make no
comparison with rates paid by longer-term WM customers, who currently pay varying rates.
Discussion:
The committee has not met to discuss the March 28 WM proposal. Much more work would be
needed to turn this into a workable contract. The March 28 WM proposal does recognize many
of the basic parameters that the committee identified and would serve as the basis for going
forward with contract language, and concurrently drafting and proceeding to enact the required
ordinance update.
The exclusive negotiation period ends on April 9, 2023. Thereafter, if it appears we will not
reach an agreement with Waste Management, the city may move to the next steps of appointing a
committee to study options, preparatory to developing a Request for Proposal (RFP) for waste
and recycling services.
The city may also extend the negotiation period to continue to work on a contract with WM. The
extension period can be set by the city as determined appropriate.
Recommendation:
The Council should consider whether or not to extend the negotiation period with Waste
Management. Staff recommends that a 30 -day extension be approved, with the option of
additional extensions.
Attachment:
0 March 28, 2023 Letter Proposal from Waste Management
WVARV
WASTE MANAGEMENT
March, 28 2023
Anne Hurlburt
14727 209th St N
Scandia, Minnesota 55073
PROPOSAL—Trash and Recycling Services for the City of Scandia
Dear Anne
Waste Management is pleased to submit this Proposal for Trash & Recycling for the City of Scandia.
Waste Management looks forward to building a working relationship with not only the City Staff and
Administration, but also the Residents of City of Scandia. We appreciate the opportunity to provide a
high level of service and establish a relationship for years to come.
This Proposal aligns with the City's interest of preserving its goals of limiting the wear and tear on City
streets though use of a single hauler, reducing noise, exceeding industry safety standards, having a clean
environment, and securing the best rates and service for recycling collection. WM views the City's
interests as the highest priority, and the service and proposal has been customized to meet and exceed
these goals. Collection schedules and routes are established, containers are already on site, and
experienced staff are attending to the needs and requests of the residents and City.
We look forward to working with the City of Scandia, and the option of strengthening our relationship as
a community service provider and partner.
Please feel free to contact me with any additional questions you may have.
Sincerely,
Jason Hartman
Waste Management of Minnesota, Inc.
jhartma5@wm.com
612-271-7863 — Mobile
City of Scandia, Trash & Recycle Proposal
We would like to propose a 5 to 7 year contract for trash and recycling services for the City of Scandia.
Monthly Recycling Rates Per Subscribed Household
2023
35 Gallon
64 Gallon
96 Gallon
MSW Collection
$
12.50
$
12.50
$
12.50
MSW Disposal
$
4.49
$
6.69
$
8.89
Bi -Weekly Recycling
$
9.00
$
9.00
$
9.00
Total
$
25.99
$
28.19
$
30.39
Recycling rates are for bi-weekly residential collection with WM supplied carts, transfer, and material
processing. Collection rate is for weekly collection of MSW with WM supplied carts. MSW disposal rate
is for disposal of MSW at Ramsey/Washington WTE facility.
Rates are for the calendar year 2023. Yearly price increases on January 151 on collection and recycling
using the WST index (Water, Sewer, Trash). MSW disposal rate is adjusted on January 151 in accordance
with the disposal rates at Ramsey/Washington WTE facility. Disposal increases are a direct pass thru of
percentage of rate increase at WTE facility. Current disposal rate is $103 per ton.
Rates include free city service for Public Works, City Hall, 2 Public Parks and two city sponsored events
not to exceed 20 carts. Recycling calendars with recycling education and tips will be provided annually to
all residents. Additional recycling educational materials are available at WM.com.
Valet service will be provided to any disabled or elderly resident at no charge (Standard size driveway
only 50' or less).
Residents will be billed directly by Waste Management. Late fees may be applied on past due balances.
Resident are permitted to take up to 6 months of vacation leave in a calendar year, but they must take
at least 1 -month periods at a time.
Residents can contact Customer service Monday thru Friday 8 am to 4:30 pm or may use WM.com to
communicate with customer service any time of day. Customers may set up accounts thru WM.com to
handle all things related to their account from scheduling a bulky pickup to receiving service alerts for
weather delays.
All verified missed pickups will be collected by the end of the next business day.
WM agrees to provide the city of Scandia a $50,000 performance bond and acceptable insurance levels
if awarded the contract.
Recycling terms and conditions are subject to Attachment B — "Single Stream Specifications" -
Attachment B
Attachment 13
RYLYCL BL85 must be dry, kuosr not'
j Aiuminum cans
PET battles with the symbol #1 - with screw tops I Mail
HbliE plastic bottles with the symbol 02 (milk
water bottles detetgctltr and shamva betties etc.
PP plastic bottles and arts with symbol M S • empty
Suri and tin cans
Glass food and beverage containers* - brown, clear,
or green
and Include ONLY the foliowittg:
Uncoated paperboard (ex. cereal boxes, food and snact boxes)
Unrnatrd prtnqn& wr1tiM_am4 office pap
Old corrugated containersfrrnfboaridww
Magazines, glossy Inserts and pamphlets
NOW RECYCLABLE5 tndudr. bulAfr,not 4raWA to the foilowinc
Plastic bags and bagged materiaLs (even if
Mkrawavabie trays
txtotabl les)
- -
Porcelain and ceramids
Mi cors, window or auto
t bulbs
Coated cardboard
_
Soiled paper, including paper plates, cups and pizza
Plastics not listed above including but not limited to those with
boxes
symbols 934, 944,116•, 674 and unnumbered plastics, including
utensils
0
coat
_W_an_ded
Glass and metal cooltw.urjhrkeware
Household appllances and electronics,
Haws, cords, wires
Yard waste. construction debris, and wood �
Flexible plastic or flim pack4ng and multi-
Needles. syringes, IV bags or other medical supplies
Laminated materials
Food wastes and liquids, containers containing such
Texdies, doth, or any fabric (beddiM pillows, sheets, etc)
items
{ Napkins, paper towels, tissue. paper plates. and paper cups
Excluded Materials or containers which contained
Excluded Materials
Any paper Recyclable materials or pieces of paper
Propane tanks, batteries
Recyclables less than 4' in size In any dimension
-
"c Containers"
Cartons'
DELIVERY SPECIFICATIONS -
Material delivered by or on behalf of City may not contain Non-Recyciables or Excluded Materials.'Excluded Materials' means raidioac&w.
volatile, rnrredm flammableaplomoe, biomedical. Infectious, bio-hasardous or Eoaic substance or material, or m%ndated medical or
hazardous wage as defloed by, charsctertzed or listed under applicable federal. state, or local laws or repuuons, manerials —A -ung
tulbrnutien (in bard copy or ekvuwk format, or odierwese) which information is protected or regulated under any local. state or kderal
privacy or data security laws, wdudin& but not limited to the Health Insurance Portability and Accountability Act of 1996, as amended or
other relations or ordinances or other materials that are deleterious or capable of causing material damage to any part of WWs property,
its personnel or the public or materially impair the strvnnth or the durability of WWs structures or egwpmemc
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