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RES 2010-45 - 14732RESOLUTION NO. 2010 — 45 A RESOLUTION APPROVING AN AMENDMENT TO THE CONTRACT FOR CURBSIDE RECYCLING WITH ALLIED WASTE SERVICES WHEREAS, Allied Waste Services, is in the business of collecting recyclables; and WHEREAS, Allied Waste Services, will collect recyclables from the City of Fridley's single family through 12 -unit multiple dwellings in accordance with the terms of the Contract for Curbside Recycling; and WHEREAS, both the City of Fridley and Allied Waste Services have mutually agreed to extend the Contract for one year, from April 1, 2011 — March 31, 2012, increase the annual price by three percent, and modify the recycling rebate to provide a forty percent share in revenue; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fridley that the resolution approving an amendment to the contract for curbside recycling with Allied Waste Services and Attachment A are hereby adopted by City Council of the City of Fridley. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 9TH DAY OF AUGUST, 2010. Avlf 000�1 SCO1Vr LUND — MAYOR ATTEST: kd-441,-6-� DEBRA A. SKOGEN 6hTY CLERK Attachment A Amendment to the Contract for Curbside Recycling with Allied Waste Services This agreement is made on the day of , 2010 between the City of Fridley, Fridley, Minnesota, ( "City ") and Allied Waste Systems ( "Contractor "). WHEREAS, the Contractor is in the business of collecting recyclables; and WHEREAS, the Contractor will collect recyclables from the City's single family through 12 -unit multiple dwellings in accordance with the terms of the Contract for Curbside Recycling ( "Contract "); and WHEREAS, both the City and Contractor have mutually agreed to extend the Contract for one year, from April 1, 2011, to March 31, 2012, increase annual price by three percent, and modify revenue sharing to provide a 60% (Contractor) /40% (City) share in revenue; and NOW, THEREFORE, the City and Contractor agree to replace the following paragraphs in the original agreement as follows: 3. Method of Payment. The Contractor shall submit itemized invoices according to the rates specified in Exhibit A to the City on a monthly basis. Monthly invoices must include a Recyclable Commodity Market Value Report according to the format shown in Exhibit B for the amount of recyclables collected and processed during the previous month. Invoices so submitted shall be paid within thirty (30) days of receipt by City. The percentage that each recyclable material represents of the total weight of recyclables collected each month will be predetermined by the schedule listed in Exhibit C. The Contractor may not adjust the weight composition of the recyclable materials from the composition presented in Exhibit C more than once per year without agreement by the City. The City shall accumulate credit from forty percent of the net proceeds of the sale of all recyclables marketed each month in a Service Exchange Fund. The additional and accumulative total value of the Service Exchange Fund shall be reported to the City by the Contractor on each monthly statement or invoice. The City may choose to use the value accumulated in the Service Exchange Fund in exchange for a variety of recycling services (examples of which are enumerated in Exhibit D), may request a cash payment of all or a portion of the total accumulated present value in the Service Exchange Fund, or may apply the cash value of the Service Exchange Fund as a credit to the City's monthly invoices totals from the Contractor. Uses in addition to those items listed in Exhibit D for the Service Exchange Funds may be completed by the Contractor upon mutual agreement on cost and terms by each party. The City shall be allowed to accumulate revenue value in its Service Exchange Fund for up to twelve months past the end of each contract year anniversary date, which is April 1. Values in the Service Exchange Fund must be drawn down to approximately $1,000 each contact year. Net proceeds is defined as the revenue received from the sale of all recyclable materials minus processing charges, which are labor and equipment charges made by the Contractor, which handles the processing for sale and sale of recyclables. The per ton processing fee and recyclable commodity values will be based upon the indices enumerated in Exhibit E, attached and made part of this agreement. If any of the market indicators on Exhibit E become unavailable during the term of the contract, then the City and Contractor will negotiate a mutually agreeable alternative(s). If the cumulative net proceeds of all combined recyclable commodities in a given month is a negative value, the City's Service Exchange Fund will not be deducted from but will receive a credit of zero for that particular month. 28. Term. The term of this Agreement shall be extended to be April 1, 2011, to March 31, 2012, the date of the signature by the parties notwithstanding. The parties may, by mutual agreement, cause this Agreement to be extended for up to an additional one (1) year after the forgoing expiration date, subject to the right of either party to terminate for cause by ninety (90) days written notice. Executed as of the day and year first above written. CITY OF FRIDLEY By Mayor By City Manager ALLIED WASTE SERVICES By Its By Its Exhibit A Fees for Curbside Recycling Services Fees for services provided by the Contractor shall be paid by the City based upon the following per residential dwelling unit payments: 2010 $2.65 $1.86 2011 $2.73 $1.92 Exhibit B Sample Monthly Recyclable Commodity Market Value Report Total Monthly Tons Collected for the month of Material % of Monthly Market Processing Net Net Market Total Tons Value /Ton Fee /Ton Value/ Credit to Indicator (3) (2) Ton City ONP #8 (Includes RMP & OTD) Old Magazines Glass - Clear Glass - Brown Glass - Green Steel Cans Aluminum Cans Plastics, PET Plastics, HDPE- natural(i) Plastics, HDPE- colored') OCC Total (')Plastics composition of sub - grades assumed to be: 50% PET, 25% Natural HDPE, 25% Colored HDPE (2)Percentage totals come from Exhibit C (3) Report shall include attachments of the OBM Yellow Sheet, AMM, Waste News, and Pulp and Paper Week publication copies used as pricing reference for the report. Exhibit C Curbside Recycling Composition This annual schedule shall be based in part upon the Contractor's past 24 -month rolling commodity average measured for the City of Minneapolis based on composition as collected. Adjustments to these commodity percentages may only be made annually on the anniversary date of the contract based upon the most recently prepared 24 -month rolling commodity average conducted for the City of Minneapolis. The "trash contamination" composition estimate shall be based upon the Contractor's audits from similar residential collection routes. The contractor must provide supporting documentation for the trash contamination estimated figures from similar routes annually to the City, however, the City must approve any change to the trash contamination percentage during the term of this agreement. The City reserves the right to require the Contractor to conduct a City - specific composition analysis, including field sorts, as a future task paid for by the Service Exchange Fund. Recyclable Material ! Percent of Total Tons Collected ONP #8 (includes RMP, & OTD) 59.71 Old Magazines (OMG) 3.90 Glass — Clear 6.86 Glass — Brown 5.59 Glass — Green 6.21 Steel Cans 3.21 Aluminum Cans 2.08 Plastics, PET 2.83 Plastics, HDPE- natural 1.41 Plastics, PET - colored 1.41 Corrugated Cardboard (OCC) 3.32 Trash Contamination 3.47 Total 100.0!% (') Plastics composition of sub - grades assumed to be: 50% PET, 25% Natural, 25% Colored HDPE. Exhibit D Service Exchange Fund — Potential Uses Possible uses of the Service Exchange Fund that have been discussed by the City and the Contractor include: 1. Printing and mailing of multiple dwelling unit full -color recycling brochure, designed by City 2. Mailing of annual curbside recycling brochure, which Allied already pays to design and print each spring 3. Printing of 9,000 utility billing inserts in Fridley utility bills advertising special recycling day(s) 4. Half day (Saturday 9am -lpm or Thursday 4 -8pm) electronics drop off, where Allied would provide roll -off boxes and staff (City would provide traffic control) to collect items. Printing and mailing of coupons to Fridley residents, which would be coordinated by the City. 5. Half day (Saturday 9am -lpm or Thursday 4 -8pm) appliance drop off, where Allied would provide roll -off boxes and staff (City would provide traffic control) to collect items. Printing and mailing of coupons to Fridley residents, which would be coordinated by the City. 6. Half day (Saturday 9am -lpm or Thursday 4 -8pm) roll -off boxes and staff (City would provide traffic control) to collect scrap metal in conjunction with spring or fall recycling drop off event coordinated and advertised by City. 7. Placement of recycling education materials in emptied recycling bins by extra driver on recycling routes Monday through Thursday for two consecutive weeks. 8. Recycling baskets for individual apartment dwellers combined with printed education materials to be delivered by City. 9. Provide once per week service to a 2 yard recycling collection container at the Fridley Public Works Garage from May 1- October 1 10. Print and install No garbage in Our Recycling signs and stickers at 90 multi -unit recycling locations 11. Conduct a Fridley - specific recycling materials composition field study Exhibit E Revenue Sharing Price Schedule This Revenue Sharing Schedule provides for the contractual terms for net revenue payments from the Contractor to the City as agreed by both the City and Contractor. The terminology and methodology follows generally accepted recycling industry standards, commodity specifications, and pricing protocols unless otherwise noted. The following definitions shall apply to this Revenue Sharing Price Schedule. Commodity — Individual material, including specific industrial grade, as defined by this Agreement. HDPE — Colored - Plastic bottles made from high density polyethylene resin with pigment or coloring (e.g., laundry detergent and automatic dishwasher soap bottles, etc.). HDPE — Natural - Plastic bottles made from high density polyethylene resin without any pigment or coloring (e.g., milk jugs, gallon water jugs, etc.). Market Indicator — Commodity price indices as per specified recycling industry publication or actual prices paid by specified end - market company. Process Fee — Agreed upon unit fee allocated towards Contractor's cost of processing various types of recyclables. ONP — Old Newspapers OMG — Old Magazines OCC — Old Corrugated Cardboard PET — Plastic bottles made from polyethylene terephthalate (e.g., soft drink, water, and other bottles, etc.) RMP — Residential Mixed Paper OTD — Old Telephone Directories Official Board Markets (OBM) — Industry publication containing prices for secondary fiber or recovered paper in the form of the OBM "Yellow Sheet ". American Metal Market (AMA) — Industry publication containing prices for secondary scrap metals. Waste News — Industry publication containing prices for recyclable materials, including plastics. Pulp & Paper Week — Industry publication containing prices for secondary fiber or recovered paper. Exhibit E (continued) Revenue Sharing Price Schedule Commodity Market Indicator Process Fee Old Newspaper #8 (ONP), RMP, & OTD Official Board Markets (OBM) , ONP #8, high -side, Chicago region, (1st issue of the month). $50 Old Magazines (OMG) Pulp & Paper Week, high -side, Chicago Region,(lst issue of the month) $50 Glass, Clear Anchor Glass Corp. (Shakopee, MN plant) $50 Glass, Brown Anchor Glass Corp. (Shakopee, MN plant) $50 Glass, Green/Blue Anchor Glass Corp. (Shakopee, MN plant) $50 Aluminum American Metal Market (�1ADJ) Aluminum (1st issue of the month). [il $50 Steel Awl (1st issue of the month). $50 Plastics, PET [31 Waste News I PET , Chicago region, st . (1 issue of the month). $85 Plastics, HDPE- natural [3] Waste News, HDPE- natural, Chicago region, St . (1 issue of the month). $85 Plastics, PET - colored [31 Waste News, HDPE- colored, Chicago region, st . (1 issue of the month). $85 Old Corrugated Cardboard (OCC) OBM, high -side of OCC #11, Chicago region $50 Notes: Ell Aluminum American Metal Market (AMM) —Low side nonferrous Scrap Prices: Scrap metals, Domestic aluminum producers, Buying prices for processed used aluminum cans in carload lots, f.o.b. shipping point, Used beverage can [2] AMM - Scrap Iron & Steel Prices, Consumer buying prices, Clean used densified cans, Chicago. [3] Plastics composition of sub - grades assumed to be: 50% PET, 25% Natural HDPE, 25% Colored HDPE.