3.11. SR 04-16-2007
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent 4/16/07
Item Number
3.1!.
Prepared by
Rebecca Haug, Environmental
Administrator
Reviewed by
~
Introduction
The City has contracted with ACE Solid Waste for garbage collection and recycling services at the city
facilities since 1996.
Discussion
Recently, ACE Solid Waste requested a 6% increase for their services. If you recall, the city authorized a
2.9% increase for the residential services which staff feels was a reasonable request. The Contract with
ACE Solid Waste expires on June 30, 2007. This contract is worth approximately $20,000 and with the
increase it would be approximately $22,000. Staff feels that the City should reexamine its options by
putting this out for bid.
Financial Impact
-$20,000
Attachments
Memo dated November 24, 2006 from Jim Warhol, Account Executive, ACE Solid Waste, Inc.
Action Requested
Staff requests authorization to put this contract out for bid.
Council Action
Motion by_
Second by _
Vote
Follow Up
S,\Council\REQUEST COUNCIL ACTION.ace.doc
ACE
SOLID WASTE, INC.
6601 McKinley Street NW, Ramsey, MN 55303
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November 24, 2006
Rebecca Haug
Environmental Technician
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Dear Rebecca,
Thank you for taking time recently to tour our facility in Ramsey. We think the facility is a
reflection of our long term commitment to the Sherburne & Anoka County community.
During that meeting we discussed the need for a price increase on the work we do for the City.
Our records indicate the last time we reviewed the account was in July 2003. At that time, the
contract was renewed without a price increase.
In the three plus years since that time, we have experienced cost increases across all areas of our
company. Fuel and wages have had the biggest impact.
As you know, we service garbage and recycling containers at 22 City properties on a schedule
that changes based on the time of year.
Our current regular monthly charges to City before tax are $1,663.72. We are proposing an
increase of6% or $99.82 per month plus tax. The new monthly rate would be $1,763.54. This
does not include the on-call per service charges that are applied when we haul the screenings
from the waste water treatment plant. That rate will not change.
We would appreciate favorable consideration of our request with an effective date of January 1 't,
2007.
Sincerely,
c
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Jim Warhol
Account Executive
(P) 763-427-3110 (F) 763-427-1691
www.acesolidwaste.com
The
LEADER ill
SERVICE