HomeMy WebLinkAbout7.a. Recycling Agreement s, ` ` City of Rosemount
Executive Summary for Action
City Couacil �eetiag Date: Recember 6, i994
Ageada Item: Recycling Agreement Ageada Sectioa:
NEW BUSINESS
Prepared By: Ron Wasmund Agenda No:
Co�nunity Development ���11 A .�t � �
Director tVi 7'l'
Attachmentss Memo; Correspondence from Approved By:
Rnutson Services, Inc. and
Holmes & Graven; Proposed
Agreement. '
- See Attached Memo -
r ve and authorize execution
Reco�ended Actioa: A MOTION to a o
PP
of an Agreement for Recycling Services between the City of
Rosemount and Knutson Services, Inc. for the year 1995 .
City Council Action:
12-0694.001
s
�����iL� � V iC�
IN'TEROFFICE Q
To: Tom Burt, City Administrator
From: Ron Wasmund, Comrnunity Development Director
Date: December 2, 1994
Subject; Recycling Contract Renewal
On December 3 I, 1994 the contract with I<nutson Services, Inc. for recycling collection services
will expire. It is in the interest of both the Citv and I<nutson to renew this contract for another
period of one vear.
The City of Rosemount and I�nutson Services, Inc. have been under contractual agreement for
recycling needs of the cominunity since the first agreement was negotiated in 1988. There have
been two successive agreements for t�vo years each. Each of these agreements have included the
following:
l. weekly collection o£single and multi-familv residences;
2. storage and distribution of recycling bins;
3. operation of an attended drop-off facility accepting recyclables, metals,tires, and appliances;
4. continuation of the commercial/industrial recycling program;
5. development of educational and promotional events and materials;
6. monthly reporting of recycling activities; and
7. work and coordination with the City to revietiv and initiate pilot programs.
The costs of these services have been verv modest and unchanged since the original contrac�t. The
current fee for these services is $1.25 per single familyresidence per month and $SO per multi-
family unit per month. In addition, the Dakota County hauler reimbursement payment goes
directly to I<nutson. For 1995 that payment from the County is $l0 per ton. As you are keenly
aware the $�0,000 that has been budgeted in the past for the City's payment to I�nutson is cut
from the 1995 Operating Budget.
Knutson is aware of this. They are so committed to sezving the community without interruption
and to demonstsate their presence in their hoine to�vn that they have committed to providing the
same recycling service as the past for no additional charge to the City. What that means to the
City and to our o�vn recycling residents is the saine quality of service �vith no disruption.
Part of the success of Rosetnou�nt's recycling program has been the willingness of I<nutson Services
to�vork�vith staff in the development of educational materials and pilot programs. In the time
since our Recycling Coordinator position�vas vacated I<r►utson has, through my delegauon,
developed and disuibuted all of our educational materials. This is a task for�vhich they have
assumed without a question or complaint.
Recycling Contract Renewal: 1995 `
,
December 2, 1994
Page Two
The utilization of an exclusive contract such as we have with Knutson significandy reduces the
number of truck trips through our residential neighborhoods. (Something we should look at for
refuse collection as well).
Knutson is a local business, owned and operated here in Rosemount They have an employment '
base of fifty (SO) jobs that depend on contracts similar to ours. I think we should consider that '
emplayment base when deciding to renew our contract with I�nutson. It is my recommendation
to renew the contract with Knutson Services, Inc. for the period of January 1> fi995 through ,
December 31, 1995. The $10.00 Dakota County hauler reimbursement fee will once again be
paid directly to Knutson from the County.
I have checked with Charlie LeFevere. He has verified that we do not have to competitively bid I�
this service. He has also verified that there is no ethical violation accepting this proposal for
service as it is considered to be an extension of the contract at no additional charge.
fltOM'I��DFSK OF... � . . . . . .
RON W,tSMUND . .
Con�vivrn Dem.ornmvr D��crox
Cmr oP Ros�tovrrt'
2875 145TH SCREEI'Wts7'
RoS�.tOtIM',MN 55068
(612)322•205 t
Ea�c(6L2)423-5203
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October 27, 1994
Mr. Ron Wasmund
City of Rosemount '
2875 145th Street West
Rosemount, MN 55068
Dear Ron Wasmund,
Knutson Services, Inc. would like to take this opportunity to discuss
renewing the contract with the City of Rosemount for the recycling �
collection.
I
KSI proposes to provide recycling collection for the city of Rosemount for
no additional charge. Since our business relationship has mutual interests �I
in the Rosemount community and our efficiencies are enhanced by aFready '
� picking up half the city for solid waste, KSI feels that our "Team"
'I relationship should be maintained.
KSI has always provided quality service to the community of Rosemount
since 1961 . Throughout the years we have developed creative recycling
options to help make City of Rosemount the number one City in the County. i
KSI appreciates your cooperation and we hope you strongly consider our i
r�cyclin� pro�,�sal.
5incerely, i
� �
David Domack
Sales Manager
Knutson Services, Inc.
c.c. Wally Wall, Generat Manager
GARBAGE and RECYCLlNG COLLECT/ONS
Since 1961
� ' Pnnted on recycled paperwith soy ink. • An Equal Opportuniry Employer
. L : � . . . . . . . . . .. � . . . � . �. � . . . .
HOLMES & GRAVEN
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(612)331-9300
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CIIAALES L LEFENERE ROBERT L DAVmSON
T.JAY SAL.�N
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OH,Y 1d.LEFE�itG
JA-
ROBEAT 1.LINDALL
October 3l, 1994
I�
Ron Wasmund
Director of Community Development
City of Rosemount
2875 145th Street West
P. O. Box 510
'� Rosemount, MN 55068-OS I0
��I
RE: Recycling Contract
Dear Ron:
' ns
about the ro osed
no P
In a letter to me dated October 26, 1994, you asked several ques P
recycling contract between the city of Rosem
ount and KSI. The answer to the questions posed
in that letter are as follows:
bid the rec clin contrac� The attorney
'vel g
l. It is not necessary to competiti y Y �
general has ruied that refuse hauling contracts are not sub�ect to th
e uniform i
municipal contracting law requiring public bidding. Therefore, the city is free to �i
treat reiuse nau�ing contrdci:s as a p��f�ssic::s'• se^�-ces centract whicit d�es not ,
require public bidding. It is possible that there are some other competitive bidding
requirements which could apply to this case with which I am not familiar.
Specifically, in some cases, cities receive compensation or reimbursement from
the counry for recycling activities. It is possible that the county may impose the
requirement that compedti�e bids be secured as a condition of receipt of county
assistance. If this does not apply in the case of Rosemount, the ciry will not be ,
legally required to competitively bid the project ,
2. There is no prohibidon of accepting the service free from KSL However, in any
. R
ather the
ci will be ,
case, I would regard this transaction as a gift from KSI , tY ,I
renegotiating the contract for refuse hauling and including additional services for
the total compensation of$40,000. The consideration given to KSI for performing '
CLL78§42
RS2:5-4
� � � � ��
Ron Wasmund
October 31, 1994
Page 2
these additional services will presumably be the extension of the contract for a '
longer term. '
3. Finally, y
ou asked whether services from KSI would be a gift under the new
ethics laws. The new ethics laws would not apply to this transaction because the
services would be rendered to the city rather than to a city official. There is no
the ci under the new ethics 1a
w
s.
' n a ainst ifts to ty
pr�hiLit� � �
If you have any further questions, please feel free to give me a call.
Very truly yours,
� ���
.��,
Charles L. LeFevere
CLL:ckr
�
�
CLi..795�l2
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�.... . . . . � � " � � . . . . . � . . . . .. �
.. � . � . � . . . . . . � � � � � � � .
` A�reement �or Recycling services
Between
City o� Rosemount anc�. I�nutson services, Inc.
Z'HISAGREEMENT is made t�is day o�
� 19 �etween the CITY OF ROSEyIOUNT, a Minnesota municipal corporation, (�ereina�ter
"City"� and KNUTSON SERVICE�, INC., a 1�Iinnesota corporation, (�ereina{ter"Knutson"�. '
WIT�,'ES S ETH:
WHEREAS, Knutson is presently a �icensed rubbis� �auler wit�in t�e City o�Rosemount; and
WHERF�15, the City and Knutson presently have an oral agreement �or n.�bish pic�up; and
�XTHEREr�S, the City and Knutson desire to supplement t�e existin� a�reement to provide �or
additional services.
NOW THEREFORE, the City and Knutson mutually agree as �ollows in consideration o� t�e
mutual promises and covenants contained �erein:
SECrION l. DE�I�IITIONS
A. "Service Area" means tke City o� Rosemount.
B. "Recyclable Materials" means newsprint, �lass, bevera�e cans, tin cans, recyclable plastic
containers, ki�h �rade white paper, corru�ated cardboard, used motor oi�, ��ossy ma�azines
and catalogs, car and kouse�old batteries, and otker materials as mutually a�reed upon �y
#he City and Knutson.
C. "Recyclin� Collection" means tke ta�ing up o�all recyclable materials accumulated at
residential ro erties and the trans ortin o�tke rec clable materials to a speci�ied
P P P
� Y
rocessin site or mar�Zet.
P �
D. "Da�xota CountyTonna�e Payment" means the per ton payment to�e provided to the
recyclin� haulers by Da�Zota County. T�is amount is sckedu.led to be�10.00 per ton in
1995.
E. °Goal Tonna�e" is the number representin� the total tons o�recyclables that is assi�ned
annually by Da�Zota County to eack community witkin Da�ota County. T�e $oal tonna�e
�or Rosemount in 199� was b5� tons. The $oal tonna�e �or Rosemount in 1995 is sti�l
bein� calculatecl by Da�ota County based upon our population.
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SECrTotv 2. P�r�tE�rr
A. D�� 1995 the City will compensate Knutson only the county reimbursement payment
made directly to the kaulers by Da�Zota County. That payment for 1995 is �10.00 per
ton. Basis �or payment will be tonnage reports pravided to the county mont�y.
SECTION 3. OBLIGATTON5
A. Knutson shall pro�de once-a-wee�Z collection services �or all residential recyclable materials.
B. Knutson shall distribute collection bins and in�ormation on collection procedures and
acceptable materials to all sin�le �amily residences and to new resiclences upon n�ti�ication
o�the location by new residents to Knutson and/or �y t�e City to Knutson. FGnutson shall
_ provide centralized containers and in�ormation on collection procedures and acceptable
materials at all multi-�amily units, as described and approved by tke City.
C. Knutson sha� operate an attended recyclin� center, open to the public as a �rop o� �aci�ity
�or recyclable materials, includin� �ut not �imited to �lass, bevera�e cans, tin cans,
recyclable plastic containers, newspaper, �igh �rade white paper, corru�ated cardboard, used
motor oi�, �lossy ma�azines and catalo�s, car and household batteries, certain �errous
metals, and white �oods and tires (�or a fee).
D. Knutson shall continue the existin� commercia�/industrial recyc�in� pro�ram providing �or
tke collection o�hi�h qua�ity white paper, glass, cardboard, white �oods and tires (�or a �ee),
and other materials as mutually a�reed upon by the City and Knutson. The City and
Knutson shall wor�Z to�ether to expand and improve t�is pro�ram.
E. Knutson shall war� wit� the City to develop educational and promotional events and
materials �or the purpose o� pzomotin� recyclin� awareness in all sectors o� the Rosemount
community, wit� a stron� �ocus on Rosemount schools.
F. Knutson shall �umis� mont�y reports to t�e City indicating tonna�es o�eac� material
collected, route schedulin�, participation rates, and citizen complaints and resolutions.
These reports shall be due on the 25th day o�each month, such that tke report �or a
particular montk �il be due on tke 2Sth day o� the �ollowing month.
G. Knutson s�all wor��vith t�e City to initiate pilot programs �or various recyclables as ,
mutually agreed upon by Knutson and t�e City (i.e., drin� boxes, mil cartons, textiles). ''
H. Knutson shall per�orm any obli�ations o� the City, not speci�ied in t�is t�reement, ',
, reguired by the Joint Powers�reement bet�veen tke City and Da�Zota County, I�Iinnesota. 'I
S�crtorr 4. TEx��t ��
The term o�this A�reement shall be between January 1, 1995 and December 31, 1995•
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SECTION 5. CAiYCELLt1TION
Eitkez party may cancel tkis A�reement at any time, arit�out cause, upon sixty{60) days written
notice to the other party. In such event o� termination, IGnutson s�all be entitled to gayment of
those services Eurnisked up to the termination date, provided all other requirements of,t�us
�reement have been met.
SECTION 6. GENER�I.CONDTTIONS
A. All services and duties per�ormed by Knutson pursuant to t�is Agreement s�all be
per�ormed ta the satis�action o�t�e City and in accordance with all app�icable �e�era�, state
an�. local laws, ordinances, rules an�. re�ulations and t�e Joint Powers�reement between
t�e City and Da�ota County, Minnesota, as a condition o�payment. Knutson a$rees to
comply witk Minnesota Statutes 5181.59, relatin� to non-discrimination.
B. Knutson must obtain and provide tke City with a certificate o� insurance indicatin� t�e
�ollowin, minimum levels o�insurance covera�e are in e�ect:
Wor�xers' Compensation Insurance: . . . . . . . Statutory
Contractor's Public Liabi�ity Insurance: . . . . � 500,000 ea/person
� 1,000,000 ea/accic�.ent
Property Dama�e: . . . . . . . . . . . . . . . . � 250,000 ea/accident '
y� 5��,��� a��re�ate
Automobile Public Liabi�ity: . . . . . . . . . : . . � 504,000 ea/person
� 1;000,000 ea/accident
Property Dama�e: . . . . . . . . . . . . . . . . � 100,000 ea/accident
The Certi�cate o� Insurance s�all contain a provision that the covera�e will not be
cancelled wit�out t�irty (30) days prior written notice to t�e City.
IN WIT�IES5 WHEREO�, t�e parties �ave subscribed their names as o�t�e date {irst written.
CITY OF ROSE�IOUNT
By:
E.B. MeNlenomy, Mayor
By:
Tam Burt, A ministrator
' K.�ILTSON SERVICES, Iti'C.
BY:
Its•
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STATE OF MINNE50TA )
) ss
COUNTY OF DAKOTA )
The �oregoin� instrument avas ac�xnowled�ed be�ore me this
�y o� _, 1� by E.B. McMenomy, Mayor, and Tom
Burt, Administrator, o� tke City o� Rosemount, a Minnesota municipal corporation, on beka�
o�t�e corporation and pursuant to tke aut�ority �ranted by its City Counci�.
Notary P 'c
STATE OF MINNESOTA )
) gs
COUNTY OF DAKOTA )
The �ore�oin� instnunent was ac�nowled�ed.be�ore me this
day o� , 19 by , Knutson
Services, Inc.
Notary P 'c
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