HomeMy WebLinkAbout5.c. 1992 Rosemount Recycling Program HaulerCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: November 19, 1991
AGENDA ITEM:
AGENDA SECTION:
1992 Rosemount Recycling Program Hauler
Old Business
PREPARED BY:
AGENDA iw*--
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Tracie Pechonick, E.D. Specialist
ATTACHMENTS: Agmt. for Recycling Services
APP R BY:
Between the City of Rosemount and KSI
y
In past years, the majority of the funding for recycling programs in Dakota County communities was provided by Dakota
County. The amount granted to area cities has decreased over the past three years since the program's start in 1989.
The 1992 funding year will bring with it a tremendous decrease from last year. The 1992 Rosemount Recycling
Application indicates that we will receive a total of $5,732 next year, in contrast to the $37,133 that was provided for the
1991 Rosemount Recycling Program.
The reasoning behind the decrease is to encourage municipalities and haulers to become responsible for their recycling
programs. In an effort to do just that, staff has been working with representatives from Knutson Services, Inc. (our
current recycling hauler) to create a program that will allow the Rosemount Recycling Program to continue expanding
and improving the recycling services provided to Rosemount residents.
Because the decrease in recycling funding was not determined until late in September 1991, the City of Rosemount was
unable to include the Rosemount Recycling Program in our 1992 Operating Budget. As a result, Knutson has indicated
that they are willing to provide us with recycling services based upon the following:
a) The City of Rosemount would enter into a two year contract for recycling services with
Knutson Services, Inc.
b) Payment for recycling services provided during the 1992 calendar year would be deferred
until 1993, except for $5,000 of the monies being provided from Dakota County.
c) The City of Rosemount would be responsible for payment of recycling services for both
1992 and 1993 during the 1993 calendar year.
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While this may be an unusual path to take, staff believes that it will enable the Rosemount Recycling Program to remain
one of the best in the metro area and it will allow staff to budget for the program expenditure in 1993. Rosemount
continually strives to place the responsibility of our community's recycling program with the public. The past three years
of the program are an excellent example of the success such a program can have when the community supports it. The
two years of this contract would allow us to further educate our citizens and to develop a program by which there would
would be no direct subsidy by city government. Rather, all costs would be the responsibility of the haulers and the
residents.
Attached for your review and consideration is a recycling services contract between the City of Rosemount and Knutson
Services, Inc. Staff requests that this contract be approved as presented.
RECOMMENDED ACTION: Motion to approve the "Agreement for Recycling
Services Between City of Rosemount and Knutson Services, Inc." which
authorizes Knutson Services, Inc., to provide exclusive recycling
services within the Rosemount community as specified within said
Agreement.
COUNCIL ACTION:
AGREEMENT FOR RECYCUNG SERVICES
BETWEEN
CITY OF ROSEMOUNT and KNUTSON SERVICES, INC.
THIS AGREEMENT is made this day of December, 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 All, 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 two equal payments of $6,862.50 payable on May
1, 1993, and November 1, 1993, respectively.
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 bins and information on
collection procedures and acceptable materials to all single
family residences and to new residences upon notification of
the location by new residents to Knutson and/or by the City to
Knutson. Knutson shall provide centralized containers and
information on collection procedures and acceptable materials
at all multi -family units, as described and approved by the
City.
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
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paper, corrugated cardboard, used motor oil, 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 provide a one-time curbside collection of
Christmas trees to be composted, rather than landfilled, on
January 11, 1991. Knutson agrees to pay all costs associated
with said Christmas tree collection.
H. Knutson shall work with the City to initiate a pilot program
for the curbside collection of drink boxes and milk cartons.
I. 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 S. 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.
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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
$ 500,000
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.
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IN WITNESS WHEREOF, the parties have subscribed their names as of
the date first written.
CITY OF ROSEMOUNT
By:
Vernon J. Napper, Mayor
By:
Stephan Jilk, Administrator
KNUTSON SERVICES, INC.
By:
Its:
STATE OF MINNESOTA )
) as
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day
of , 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.
Notary Public
STATE OF MINNESOTA
) as
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day
of , 1991, by , Knutson
Services, Inc.
Notary Public
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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.
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