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HomeMy WebLinkAbout10.c. Knutson Recycling ContractCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: DECEMBER 7, 1993 AGENDA ITEM: KNUTSON RECYCLING CONTRACT AGENDA SECTION: NEW BUSINESS PREPARED BY: RON WASMUND, INTERIM ADM. AGENDA NO. ,O. • ATTACEMMTS: MEMO, PAST CONTRACT APPROVED BY: Please note the attached memo and contract. RECONKMED ACTION: MOTION TO APPROVE A RECYCLING CONTRACT AGREEMENT FOR RECYCLING SERVICES BETWEEN THE CITY OF ROSEMOUNT AND KNUTSON SERVICES, INC. COUNCIL ACTION: MEMORANDUM TO: Mayor McMenomy Council Members: Klassen, Staats, Willcox, Wippermann FROM: Interim Administrator Wasmund DATE: December 3, 1993 RE: Recycling Contract Renewal On December 31, 1993 the contract with Knutson Services Inc. for recycling collection services will expire. It is in the interest of both myself and Knutson to renew this contract for another period of one year. The City of Rosemount and Knutson Services Inc. have been under contractual agreement for recycling needs of the community since the first agreement was negotiated in 1989. There have been two successive agreements for two years each. Each of these agreements have included the following : 1) Weekly collection of single and multifamily 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 7) Work and coordination with the City to review and initiate pilot programs The costs of these services have been very modest and unchanged since the original contract. The current fee for these services is $1.25 per single family residence per month and $.50 per multi family unit per month. In addition the Dakota County hauler reimbursement payment goes directly to Knutson. In 1993 the hauler payment was $20 per ton of recyclable materials collected. For 1994 that payment has been reduced by the county to $15 per ton. In my discussions with Knutson's sales manager Mark Heieren he has agreed to leave the fees per household the same for this contract as they have been in the past contracts, $1.25 and $.50. They will once again receive the hauler reimbursement payment directly from Dakota County. Part of the success of Rosemount's recycling program has been the willingness of Knutson Services to work with staff in the development of educational materials and pilot programs. In the time since our Recycling Coordinator position was vacated Knutson has through my delegation developed and distributed all of our educational materials. A task they have assumed without a question or complaint. Knutson Contract Memo for Dec. 7 City Council Meeting The utilization of an exclusive contract such as we have with Knutson significantly 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 50 jobs that depend on contracts similar to ours. I think we should consider that employment base when deciding to renew our contract with Knutson. It is my recommendation to renew the contract with Knutson Services Inc. for the period of January 1, 1994 through December 31, 1994 at the cost of $1.25 per single family household per month and $.50 per multi- family household per month. The $15.00 Dakota County hauler reimbursement fee will once again be paid directly to Knutson from the County. AGREEMENT FOR RECYCLING SERVICES BETWEEN CITY OF ROSEMOUNT and KNUTSON SERVICES, INC. THIS AGREEMENT is made this 27 7'�4 day of November, 1991, between the CITY OF ROSEMOUNT, a Minnesota municipal corporation, (hereinafter "City") and KNUTSON SERVICES, INC., a Minnesota corporation, (hereinafter "Knutson"). WITNESSETH: WHEREAS, Knutson is presently a licensed rubbish hauler within the City of Rosemount; and WHEREAS, the City and Knutson presently have an oral agreement for rubbish pickup; and WHEREAS, the City and Knutson desire to supplement the existing agreement to provide for additional services. NOW THEREFORE, the City and Knutson mutually agree as follows in consideration of the mutual promises and covenants contained herein: SECTION 1. DEFINITIONS A. "Service Area" means the City of Rosemount. B. "Recyclable Materials" means newsprint, glass, beverage cans, tin cans, recyclable plastic containers, high grade white paper, corrugated cardboard, used motor oil, glossy magazines and catalogs, car and household batteries and other materials as mutually agreed upon by the City and Knutson. C. "Recycling Collection" means the taking -up of all recyclable materials accumulated at residential properties and the transporting of the recyclable materials to a specified processing site or market. D. "Dakota County Tonnage Payment" means the per ton payment' to be provided to the recycling haulers by Dakota County. This amount is scheduled to be $25 in 1992 and $20 in 1993. E. "Goal Tonnage" is the number representing the total tons of recyclables that is assigned annually by Dakota County to each community within Dakota County. The goal tonnage for Rosemount in 1992 is 655 tons. The goal tonnage for Rosemount in 1993 will be calculated in the fall of 1992. SECTION 2. PAYMENT A. The City will compensate Knutson for the performance of its obligations during the 1992 calendar year pursuant to this Agreement as follows: 1) Based upon "Exhibit A", compensation for recycling services in 1992 will total $18,725 with $2,500 payable on May 1, 1992, and $2,500 payable on November 1, 1992, and the balance of $13,725 deferred until 1993. Said balance will be paid in twelve equal payments of $1,143.75, the first payable on January 1, 1993, and an equal amount on the first day of each month thereafter through December 1, 1993. B. The City will compensate Knutson for the performance of its obligations during the 1993 calendar year pursuant to this Agreement as follows: 1) Compensation for recycling services in 1993 will be based upon $1.25 per household per month; $.50 per multi family unit per month; and $20.00 per ton from Dakota County. Final calculations will be based upon the formula presented in "Exhibit All and will be performed in November of 1992 so as to have available accurate counts for total households, total multi family units and goal tonnage. 2) Compensation for 1993 will be released in 13 equal payments, the first payable on January 1, 1993, and an equal amount on the first day of each month thereafter through December 1, 1993, and the final payment due upon successful completion of this Agreement. C. Payment will be released upon the City's receipt of monthly reports from Knutson (see 3F). SECTION 3. OBLIGATIONS A. Knutson shall provide once per week collection service for all residential recyclable materials. B. Knutson shall distribute. collection procedures and family residences and to the location by new reside Knutson. Knutson shall information on collection at all multi -family units collection bins and acceptable materials new residences upon nts to Knutson and/or provide centralized procedures and accep , as described and City. 2 information on to all single notification of by the City. to containers and table materials aDDroved by the C. Knutson shall operate an attended recycling center, open to the public as a drop off facility for recyclable materials, including but not limited to glass, beverage cans, tin cans, recyclable plastic containers, newspaper, high grade white paper, corrugated cardboard, used motor oil, glossy magazines and catalogs, car and household batteries, certain ferrous metals and white goods and tires (for a fee). D. Knutson shall continue the existing commercial/industrial recycling program providing for the collection of high quality white paper, glass, cardboard, white goods and tires (for a fee) and other materials as mutually agreed upon by the City and Knutson. The City and Knutson shall work together to continually expand and improve this program. E. Knutson shall work with the City to develop educational and promotional events and materials for the purpose of promoting recycling awareness in all sectors of the Rosemount community, with a strong focus on -Rosemount schools. F. Knutson shall furnish monthly reports to the City indicating tonnages of each material collected, route scheduling, participation rates, citizen complaints and resolutions. These reports shall be due on the 25th day of each month, such that the report for a particular month will be due on the 25th day of the following month. G. Knutson shall work with the City to initiate a pilot programs for various recyclables as mutually agreed upon by Knutson and the City (ie: drink boxes, milk cartons, textiles). H. Knutson shall perform any obligations of the City, not specified in this Agreement, required by the Joint Powers Agreement between the City and Dakota County, Minnesota. SECTION 4. TERM The term of this Agreement shall be between January 1, 1992 and December 31, 1993. SECTION 5. CANCELLATION Either party may cancel this Agreement at any time, without cause, upon sixty (60) days written notice to the other party. In such event of termination, Knutson shall be entitled to payment of those services furnished up to the termination date, provided all other requirements of this agreement have been met. 3 SECTION 6. GENERAL CONDITIONS A. All services and duties performed by Knutson pursuant to this Agreement shall be performed to the satisfaction of the City and in accordance with all applicable federal, state and local laws, ordinances, rules and regulations and the Joint Powers Agreement between the City and Dakota County, Minnesota, as a condition of payment. Knutson agrees to comply with Minnesota Statutes 181.59, relating to non-discrimination. B. Knutson must obtain and provide the City with a Certificate of Insurance indicating the following minimum levels of insurance coverage are in effect: Workers' Compensation Insurance: Contractors' Public Liability Ins: Property Damage: Automobile Public Liability: Property Damage: Statutory $ 500,000 ea/person $ 1,000,000 ea/accident $ 250,000 ea/accident $ 500,OOO'aggregate $ 500,000 ea/person $ 1,000,000 ea/accident $ 100,000 ea/accident The Certificate of Insurance shall contain a provision that the coverage will not be cancelled without thirty (30) days prior written notice to the City. 4 IN WITNESS WHEREOF, the parties have subscribed their names as of the date first written. CITY OF ROSEMOUNTT By: ~ •.+�� ernon Napper,`ma' yor gtephXn Jilk, Ad inistrator KNUTSON SERVZLCES-,�//INC,--' Its: J STATE OF MINNESOTA ) ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ZO today of ovem lJe"r , 1991, by Vernon J. Napper, Mayor, and Stephan Jilk, Administrator, of the City of Rosemount, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. STATE OF MINNESOTA ) SS COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _---�7_ day Of i , 1991, by , Knutson Services, Inc. Theresa A Knutson NOTApY PUBU, MINNESOTA DAKOTA COUNTY Py oomminion -PIM d 4 5 1= Notary Public Notary Public :ily Grmn. E AL;3. 2a. 7937 2 r:m ■ JvvW�NV VNN�+■ STATE OF MINNESOTA ) SS COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _---�7_ day Of i , 1991, by , Knutson Services, Inc. Theresa A Knutson NOTApY PUBU, MINNESOTA DAKOTA COUNTY Py oomminion -PIM d 4 5 1= Notary Public EXHIBIT "All COMPENSATION FOR THE 1992 ROSEMOUNT RECYCLING PROGRAM IS BASED UPON THE FOLLOWING: 1) $1.00 per household or $1.00/hh 2) $0.50 per multi -family unit or $0.50/mfu 3) 2,800 single family households or 2,800 hh 4) 250 multi -family units or 250 mfu 5) 655 tons: annual tonnage goal from Dakota County or 655 tns 6) $25 per ton: per ton compensation from Dakota County or $25/tn THE FORMULA TO BE USED TO CALCULATE ANNUAL COMPENSATION FOR THE 1992 ROSEMOUNT RECYCLING PROGRAM IS AS FOLLOWS: ($1.00/hh x 2,800 hh x 12 mo) + ($0.50/mfu x 250 mfu x 12 mo) - (655 tons x $25/tn) = Annual Compensation ($1.00 x 2,800 x 12) + ($.50 x 250 x 12) - (655 x $25) _ ($2,800.00 x 12) + ($125 x 12) - ($16,375) _ ($33,600 + $1,500) - $16,375 = $35,100 - $16,375 = $18,725 Compensation for 1992 = $ 18,725 NOTE: THE COMPENSATION FOR 1993 ROSEMOUNT RECYCLING PROGRAM WILL BE CALCULATED IN THE SAME MANNER, BUT CANNOT BE FINALIZED UNTIL LATE IN 1992 WHEN ALL APPROPRIATE NUMBERS ARE AVAILABLE FROM DAKOTA COUNTY. N. v Cansuner Prfce Inde. United Stotts City North Central Region Canstner Price Index Chitago-Sart'-take Co.,',,;. Detroit-Am Arbor, tuber 109 1 AverageOctober Iereent change to Percent change to 1993 Percent cAange to M '- Percent change to Group Index 1 from Inde. Oct, 109 from Group Inde. �! - Index 1911 Ir m - Oet. Oct. Sept Oct. Oe t. Sept Oct. Ott. 99 t Sept. 9 Oct. 1093 Oet. 1902 Arg. 1993 L0�2 84.100 unless other xe rated) 199 199 1 1993 199 1993 1( 982'ea•t00 unless otherwise rot ed) 199 CPI•V C►1•U All Urban Consumers CPI•U C►I V AIt Urban Comrmers All (teem .......................... 1{5.7 2.8 0.4 1N .5 30 0.4 Alt Itp.a ......................... 117,2 00.8 3.6 0.3 .� '1{1.0 , 421.8 1.2 1.4 All i[eas (otAer base) 1/ .......... 436.4 230.2 - All Iter <1067.100) .............. Food And beverages ................ 142.3 2.2 .4 139.7 2.D .3 Food and beverages ............... 144.3 147.0 3.4 3.4 7 136.8 136.0 2.5 2.3 .7 Food ............ 141.6 2.4 .4 13:.9 13:.6 2.e S.< .4 food ............................ Food st home ................... 147.5 4.2 .8 1.2 136.6 2.3 .9 1.3 Food at Aer .................... 140.8 ISe.I 2.6 3.S .6 157.7 3.5 .5 ••1 Cereals and bakery products ... 160.0 2.6 •.1 160.1 5.7 1.5 Cereals and bakery products .. 136.6 3.0 .3 136.6 S.a .7 Nesta• poultry, fish, t eggs .. 156.4 7.8 1.9 134.4 2.4 .1 Meats, poultry, fish, i eggs ..• 129.5 •.S .6 -.1 129.9 .0 •.2 Delry products ................ 142.4 3.S .1 ' 119.1 •3.2 Dalry products ................. ctset 158.7 3.3 1.0 150.9 4.4 t.: Frufts and vegetables ......... 153.1 .7 3.1 ISM 4,4 6.3 Fruits and abl ex .......... 131.4 1.7 12e.S 1.0 .2 her load at hone ............ 120.4 3.4 .3 126.7 1.4 1.0 Other food at hoar ............. food sway Iron hoar 144,0 1.9 .8 .1 139.9 2.0 .0 Food away Iron hone ............ 135.2 ' 2.0 ,Y 155.0 t.l .1 ............. Alcdrel lc beverages .............. 150.1 1.3 .1 146.2 1.9 •.3 Alcoholic beverage. ............. 157.7 2.7 •.3 145.3 3.7 -.3 Nous Ing ........................... 142.2 2.7 •.1 137.2 3.3 •.1 Mousing .......................... 165.6 161.0 i.{ 3.4 ,1 1.1 137.0 155.7 2.: '2:'2' 1.5 1.0 Shelter .......................... 156.8 2.8 .1 151.6 155.6 3.6 2.9 .4 Shelter ......................... Renters, costs 1/ .............. 166.1 3.1 .7 150.8 .4 2.2 1,0 Renters' coats j/ ............... 165.4 457.1 2.3 2.7 .1 116.4 1.1 .0 .4 Amt, residential ............. . 161.5 3.2 .0 145.9 5.1 2.0 Rent, residential .............. 188.7 2.4 .3 •.2 164.7 2.6 •.e Other renters• coats .......... IS5.6 2.e ,2 148.4 -2.4 •.6 Other rMtfra' costs ........... 161.6 3.1 155.3 3.7 .6 Homeowners' costs 1/ ........... 167.9 3.6 1.3 '• 160.4 4.9 2.2 Hosewers' goats j/ ............ 161.9 3.1 .1 155.6 ].8 .6 Owners eclutvalent rent 1/ .... 166,8 ],S 1.3 161.3 5.1 2.3 Caters• owtvatent rent ;/ ..... 122.4 3.3 ,2 •1.2 119.1 4.3 -2.3 Fuel andother ut lilt le% ........ 122.7 11.3, •2.7 118.4 -.1 .1 Fuel and other utilities ......... 112.1 3.1 •2.i 107.1 4.8 •3.9 Fuels .......................... 115.2 19.6 - •4.6 I ,108.6 •1.3 .S Fuels ........................... fuel oil t ethtr loci comm. .... 89.1 •2.5 1.4 87.2 •.1 3.7 foe( oil i other fuel cool) 91.2 2.4 1.4 12.6 85.1 83.1 •3.0 •4.0 1.3 4.0 Fuel all ...................... 86.1 -7.3 1.e 85.2 •1.5 S. 1.6 Fuel oil ..................... Other fuel comsodltles j/ .... 93.5 112.8 1.4 4.0 . 0 . 106.1 •3.6 -1.2 Other Iuel eomeeditles j/ ..... lle.< .9 .6116.4 •2.8 112.7 1.5 5.1 •4.2 Gas (piped) and electricity ••• 118.419.8 4.7 112.4 -1.1 .{ Ws (piped) and electricity •••• 119.7 127.4 3.7 2.8 •4.1 119.9 4.3 •7.5 Electrlclly ............•••••• 118.0 26.7 -11.1 135.2 -4.0 .0 Electricity ••••••-••-••••••••• 108.6 S.0 106.7 6.1 .O Ut111tY (PIPed) gas .......... 11:,8 14.0 2.2 '� 95.9 2.0 .5 Ut11 icy (piped) gas ........... it, i 148.< 3.S .S 147.8 3.6 •.1 Furni ih i IDs and operation ....... 110.0 1.2 .3 104.1 -1.2. LS Other ut public sere ...... Furnishings and eperstim ........ 120.0 1.4 .2 .3 118.9 1.0 .6 Apparel and yd:eeP ••••••••••••••• 135.0 3.5 •.3 144.0 10.7 4,1 Apparel and upkeep ................ 136.1 0.8 1.1 134.0 1.4 1.5 Apparel cosraodities ............. 134.7 140.3 3.4 13.1 -.4 6.4 143.8 132.3 11.2 4.3 4.4 7.0 Apparel commodities .............. 133.5 .6 1.1 132.8 1.2 1.6 Nana and boys' apparel ........ Women's and apparel 126.2 •1.2 •4.5 156.8 10.9 5.4 Mensa and boys' apparel ......... 129.4 .S 1.3 131.8 3.8 2.1 2.1 girls' ..... Footwear ....................... 11.1.2 2.4 •1.3 143.9 7.5 1.5 Wooer's and girts' apparel....... 136.0 .7 1.3 135.2 .4 Footwear ........................ 127.1 .2 .9 132.2 t.6 .0 Irsnapar utlan ................... 127.0 1.1 1.7 �. 134.4 1.7 1.3 Transportation .................... 131.8 3.0 1.3 12:.1 2.4 1.3 Private transportation .......... 124.8 08.2 .6 -5.6 1.6 I.4 132.7 9S.3 1.2 •1.2 1.3 4.0 Private tranaportstien ........... 129.0 2.3 1.5 125.4 1.7 1.S Notsr fuel ..................... essol tine 98.0 •6.1 3.2 94.6 •1.7 3.1 Motor fmt ...................... 99.7 99.2 •1.9 -2.3 3.7 3.4 97,3 96.9 .2.5 •2.7 4.6 4.4 ...................... Public transportation ........... 144,7 4.4 •2.0 169.8 11.5 .2 6asel lea ....................... ►ubl lc trarsportation ............ 168.2 10.0 •.i 173.3 12.1 .0 Medical care ..................... 205.< 6.5 .0 192.3 4.1. .{ Medical care 204.4 S.7 .5 197.4 6.0 .3 Entert■,nsent .................... ` 154.7 2.3 •.3 140.4 6.8 1.3 ...................... Medical ore eommadltles ......... 1%.b 3.6 .2 199.4 4,3 ,3 Other goods and services ......... 204.9 145.1 4,2 4.5 -.0 -.4 183.8 121.< Medical care services ............ 206.2 6.2 .6 197.1 6.3 .3 Persanal eare ................... Entertairoent .................... 1467.3 2.6 .5 145.0 1.7 .2 sed Cowity and service groups: Caarmodities 135.9 2.1 ' 128.6 2.9 1.4 Other gds arid services .......... 193.4 2.9 .2 165.5 2.7 4.1 .3 •.7 ...................... Camadltles teas food i bev. .... 130.2 1.6 .4 .2 123.9 3.2 1.8 Personal care .................... 142.4 2.7 .0 136.0 Nondurables less food 4 bev. ... 135.2 1.3 .0 129.1 2.8 1.9 Durables 121.4 2.1 .1 113.1 7.8 1.6 CoarsodltY a:rd service groups gro..•........ 132.3 1.5 111.2 t.b .e ....................... Services ......................... 158.S 4.7 .7 156.5 3.4 1.4 Commodities ......•.. CoaNeditles less food and bay. ... 126.1 1.0 .8 1.0 126.3 1.3 1.3 Medical care services ........... 202.5 6.7 •.1 1%.1 3.9 .4 Nondurables less feed Red bev. ... 128.8 .0 1.2 129.1 .2 1J special Indexes: All iters less shelter 142.5 3.7 138.7 2.7 1.2 Durables .......................... 122.3 159.5 2.6 3.8 .7 121.7 152.7 3.0 3.9 .6 -.1 ............ All Iter less medical care ....... 144,2 3.4 .0 .3 139.4 3.1 1.5 Services ........................... .1 A11 flews fess energy ............. 152.7 3.4 .5 WA 3.6 1.3 Spee la) i...rat.... • All iters test shelter 142.6 2.7 .4 138.8 2.7 .< Energy .....................••..•.. 106.5 6.9 •1.2 103.{ -1.2 2.2 ............. All iter less medical care ........ 142.3 2.5 ' .4 138.4 2.8 .4 Coaaeditfes less faed ............. 131.5 136.6 1.7 1.S .2 124.8 130.0 3.2 2.9 1.7 1.7 All Iter less energy ......•.••••.•• 151.2 2.9 :{ 147.3 3.2 ,S Nondurables lex• food ............. xorrdurablex 140.0 2.{ .0 133.1 2.6 1.3 Energy .•••••••••••••.•••••••••.•.•• 105.4 .9 .2 102.1 1.5 1.3 •.2 1.2 ....................... Services Its. rent el shelter ter I/ .. 161.0 6.0 .4 •.6 161.6• 2.5 ,0 Comaaditiea less food .............. 127.1 1.1 1.0 127.1 e....tr.. t.•• •edt.•t car. _ 154.6 < S 3 153.0 3.4 1.5 Nenkm ables less food .............. 129.9 .1 1.0 130.0 .3 1.4 Nendr 11*9 ........................ 135.8 1.2 .0 131.5 I.S 1.0 Urban Nage Earners C►1-V Ias Services less rent of shelter j/ .... 167.1 4.6 .1 157.8 <.3 •.< _god Clerlulyerkera All (terra 142.6 C►I•V 3.6 0.4 137,5 3.0 1.3 •__..r_ ......... _-Urban 154 1 ] S 1 148.5 3.7 •.1 ......................... All Iters (1%7.100) . 40{.9 - Ysge Earcore CPI •Y rim.-I. Indexes an • December 1082*100 base j/ Indexes an • Oete.6er 19:6.100 base and Clerleal Yorkers 141.3 CPI•V 2.7 O.S 138.5 2.e 0.4 Mote: Data are rot seasonally adjusted. local area C►1 Indexes are by-produett of the national All iter .. ........ rtoai.1m��••••�• 426 7 224.0 C►1 program. Each local Index has a smaller sample site then the national index and Is. therefore, su IteM It Other alae • United States Clty Averpe • t%7.100 j/ December 1982.100 subject to substantially Dore sampling and other messwement error. As a result, local area Indexes • North Central Region - December 1977.100 }/ Deceaber 1986.100 show greater vel alllity than tan national index• although long•trm trends are similar. Therefore, NOTE: Index applies to a .moth r a dale, rot to arty speclflt data the Bureau of labor st tlst(cs strongly urges users to corm tder adopting the national average CPI Oats are net seasonally adjusted. for use In their escal .imam clauses.