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.