5.5. SR 08-19-1996ITEM 5.5.
ity of
ver
MEMORANDUM
TO:
FROM:
DATE:
Mayor and City Council
Lindahl, ~
Kendra Zoning Assistant
August 19, 1996
SUBJECT:
Transfer of Garbage Collection
Contract from East Tonka Sanitation to
Randy's Sanitation.
Attachments
· Transfer of City of Elk River Agreement for Garbage, Refuse and
Recycling Contract
· Background information on Randy's Sanitation
Background
In mid-July, staff was contacted by East Tonka Sanitation requesting
transfer of their contract to Randy's Sanitation. The City must provide
written approval of the transfer prior to any contract transfer taking place.
The City informed East Tonka that the Contract provides several conditions
that must be met prior to approval of the transfer by the City.
1. The proposed transferee must have the qualifications and financial
responsibility, as reasonably determined by the City, necessary and
adequate to fulfill the obligations of the contractor; and
2. The transfer cannot create an anti-trust situation in the local hauling
industry contrary to the public interest; and
3. A proposed transferee shall in writing expressly assume all of the
obligations of service under the Contract and agree to be subject to all of
the conditions and restrictions to which service is subject; and
4. The Contract also provides that no transfer of any interest in the Contract
shall operate legally or practically to deprive or limit the City of or with
respect to any rights or remedies or controls provided in or resulting from
the Contract.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
City staff met with representatives of Randy's Sanitation on July 29, 1996.
Randy's submitted several documents in support of its request to assume the
Contract.
Analysis
The existing garbage contracts expire on October 31, 1996. Staff will begin
negotiations with the three haulers in the very near future. Transfer of this
contract in no way guarantees a new contract to Randy's Sanitation after
October 31, 1996.
East Tonka Sanitation, Corrow Sanitation and Peterson Brothers
Sanitation/BFI have signed contracts with Sherburne County agreeing to
take all of their waste to the RDF Plant. Randy's Sanitation is one of only
two haulers in the County who have not signed the County Contract. Staff
recommends that one condition of this transfer is that Randy's will take our
waste to the RDF plant. This ensures an even playing field with the other
haulers.
Recommendation
Based on the recommendation of the City Attorney, staff recommends
approval of the Garbage Contract Transfer from East Tonka Sanitation to
Randy's Sanitation with the following conditions:
1. In lieu of submittal of more detailed financial information from Randy's
Sanitation, Randy's will provide the City with a $100,000.00 performance
bond.
2. Randy's Sanitation will deliver waste collected under the Contract to the
RDF plant.
TRANSFER OF
CITY OF ELK RIVER
AGREEMENT FOR GARBAGE, REFUSE AND RECYCLING CONTRACT
AGREEMENT made as of the date of its execution between the CITY OF ELK RIVER,
MINNESOTA, a Minnesota municipal corporation ("City") and RANDY'S SANITATION, a
Minnesota corporation ("Randy's").
WHEREAS, on November 1, 1993 the City entered into an AGREEMENT FOR
GARBAGE, REFUSE AND RECYCLING COLLECTION ("Contract") with East Tonka
Sanitation, Inc. ("East Tonka") for collection of garbage and recyclables in one of the City's
three residential collection districts; and
WHEREAS, the Contract expires on October 31, 1996; and
WHEREAS, Minn. Stat. §§ 115A.46, subd. 5 and 115A.471, known as the "Public
Entities" law requires that the waste collected under contract by the City be managed consistent
with the Sherburne County Solid Waste Management Plan ("Plan"); and
WHEREAS, in performing collection services under the Contract East Tonka has,
consistent with the Plan, delivered the collected solid waste to the Elk River Refuse-Derived
Fuel CRDF") plant owned and operated by NRG Energy, Inc., a subsidiary of Northern States
Power; and
WHEREAS, East Tonka and the two other solid waste haulers under contract with the
City to perform residential collection services have contracts with Sherburne County to deliver
solid waste to the RDF plant; and
WltEREAS, on luly 9, 1996, East Tonka and Randy's executed a Letter of Intent for
Randy's to purchase East Tonka and the Letter of Intent specified that sale and transfer of the
contract would be contingent upon approval of the transfer by the City; and
WHEREAS, the Contract, under Section IV.E.8., provides that the City must approve
in writing any assignment or transfer of East Tonka's rights and obligations and that the City
shall be entitled to, among other items, require that any proposed transferee shall have the
qualifications and financial responsibility to fulfill the obligations under the Contract; and
WHEREAS, on July 29, 1996, Randy's submitted information to the City to demonstrate
its qualifications and financial responsibility to perform the Contract and requested approval by
the City of the transfer of the Contract from East Tonka to Randy's; and
WHEREAS, Randy's has an internal policy that prevents the release of company
financial statements and proposes, in the alternative, to post a performance bond to the City in
the amount of $100,000; and
.WHEREAS, Randy's does not have a contract with Sherburne County that obligates
Randy's to deliver waste to the RDF plant.
KDJ 251557
NOW, THEREFORE, it is agreed by and between the parties:
1. The City of Elk River approves the transfer of the Contract from East Tonka to
Randy's for the remainder of the contract term, which expires on Oct. 31, 1996. Such approval
does not limit any rights the City has under the contract, including termination rights.
2. The City finds that the transfer does not create an anti-trust situation in the local refuse
hauling industry that is contrary to the public interest of the residents of Elk River.
3. In lieu of submitting a detailed financial statement to the City, Randy's shall execute
and deliver to the City a performance bond in the sum of $100,000 conditioned upon faithful
performance of the Contract and this Agreement.
4. Randy's expressly assumes ail of the obligations of service under the Contract and this
Agreement and agrees to be subject to all of the conditions and restrictions to which service is
subject.
5. Randy's agrees that the transfer of the Contract shall not operate legally or practically
to deprive the City of any rights, remedies or controls provided in the Contract or this
Agreement.
6. Randy's will deliver all garbage or solid waste collected under the Contract to the
RDF plant, unless the plant is unable to accept such waste. In this event, Randy's shall consult
with the City and deliver the waste to a location determined by the City.
7. Randy's will comply with all ordinances of the City and all laws and regulations of
the State of Minnesota, as required under IV.E.5(a) of the Contract.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year written below.
CITY OF ELK RIVER
RANDY'S SANITATION~ INC.
By: 'By:
Henry A. Duitsman Randy Roskowiak
Its: Mayor Its: President
By:
Patrick D. Klaers
Its: City Administrator
Date: Date:
KDI 251557 2.
t an P' anitation, nt. [
*RESIDENTIAL* *
VOLUME 1-1996 EDITION COM2vIERICAL
OUR PROUD HISTORY
IRandy's Sanitation has been in business
since October of 1979. At that time,
Randy and Sandy Roskowiak started the
business with one truck, no employees,
and two small children.
Now, there are 53 trucks, 100 employees
and those small children, Bobby-20, and
Andy-18, are now actively involved in the
business along with Nick-16, Ben-13, and
Christopher-Il. Last but not least, their
baby gift, Michaela-19 months, thinks she
runs the show when mom and dad bring
her to the office.
Randy and Sandy attribute their successful
growth to dedicated employees, very loyal
customers, many long hours, and the will
to succeed no matter what the challenge.
Every customer is a vital part of the
continued success of our company.
Thank you for being part of our family!
Sincerely,
ISSUES INSIDE:
4' RECYCLING EDUCATION
'/COMPOST INFORMATION
4- DISCLOSURE
4- A FEDERALLY
APPROVED LANDFILL
4' CUSTOMER SURVEY
~ RANDY'S VALUE SAVERS
OUR PLEDGE
"Good Enough is Never Good Enough"
That's our motto at Randy's Sanitation. Whether our staff is driving a truck or talking to
a customer on the phone, they understand that quality performance is what we're all
about. It is our attention to detail and drive for excellence that guarantees you'll receive
the finest service available at the most reasonable value. We take pride in being large
enough to offer a full range of services, yet small enough to value each customer as an
important part of our business. It is this unique combination of experience and service
that gives Randy's Sanitation the competitive edge. We are here to serve you, the most
important part of our business.
-Mark Stoltman, General Manager
THE COMPETITION GOES FISHING!!
Due to the growing success of Randy's
Sanitation, the competition seems to
find it necessary to entice you with
great short-term price deals.
Randy's Sanitation would like to take
this opportunity to stress the
importance of satisfying our customers
with QUALITY service and good
VALUE. If you are approached by one
of our competitors with an offer that's
"too good to be true", simply call your
Randy's service representative to
evaluate your account.
As an independent, Randy's Sanitation
would like to remind you that in 1995, 27
independent and/or family owned haulers
had been bought out by national hauling
companies.
Randy's answers to "YOU"
our
customer, not to stockholders.
Randy's would like to thank you for
choosing an independent hauler.
-David Domack
RESIDENTIAL
RECYCLING
~RESIDENTIAL SINGLE FAMIL5
*TOWNHOME ASSOCIATIONS
*MOBILE HOME COMMUNITIES
*MULTI-FAMILY HOMES
We would like to emphasize the
fbllowing reminders when recycling
your items:
Newspaper/Magazines/Catalogs
Place together in separate bag
Aluminum/Tin/Bi-metal
Place together in separate bag
Glass (Clear/Green/Brown)
Place respective colors in separate
'gs by color. NO mirrors, c~stal.
or ceramics please
Plastic Bottles with a Neck
Place together in separate bag
Corrugated Cardboard
Please tie in 3 X 3 ft bundles. No
pizza boxes or cereal-type boxes
As recycling markets become more
strict on the quality of their material,
the issue of educa{ion becomes even
more important to promote good
h '
, ants. Please remember contamin-
on is garbage.'
rPlease assist us by keepir~g
ecyclables pure.
COMMERCIAL
RECYCLING
*COMMERCIAL
*INDUSTRIAL
*RETAIL
*MANUFACTURING
We would like to emphasize the
following reminders when recycling
your items:
If you are recycling
cardboard:
Please breakdown your boxes. No
pizza boxes or boxboard-type
material.
~':3 2 :~: :i:: :!:': , ' ~' ~:~: &': '::
]""'Cardboard Only
~ If you are
recycling source separated
materials in carts:
Please separate as labeled. Follow
the same preparation instructions as
Residential.
it good for the environment, it ~lso
stabilizes your refuse costs~ Please
contact your service representative
for a waste analysis. 479-3335.
NOW OFFERS:
SOURCE SEPARATED
CO-MINGLED
and SPECIALTY ITEMS
COMPOST
INFORMATION
*RESIDENTIAL
'~:Compost pickup begins April 15.
Preparation:
Grass & leaves-place m plastic
bags, 30 gallon or less. Maximum
weight per bag of 50 lbs or less.
Brush-please -tie m 3 X 3 ft.
bundles.
Collection !bt compost is the same
day as your garbage pickup,
Place co~npost curbside on the
opposite side of your garbage.
A reminder: It is illegal to throw
leaves, grass, and brush in your
trash. Please compost properly.
Other ()ptio~s include:
1. Let it !% (mulching)
2. Compost-it-yourseif.
3~ Dromoff~ . centers near you.
For more information on these
options~ please contact us at
479-3335
A FEDERALLY APP OVED LANDFILL
{CROSS-SECTIONAL VIEW}
60 MIL HOPE /' DRAINAGE ROCK ,,
GEOMEMBRANE LINER -- ~ / ITEMP GENER4I FILL
,~ ..4~ -,./,~,~.,.,-,.,-, ~C-'7;:'-'..~. ,-: ...........................
- · ~. '-. ~, -~.-.~-..-,:'~',,. .... .. ' ....... ': .- ;'5, /
'".d. " :"~ :" t:~,';t~.''''''''''''''''''''''''''''''''''' z
Your participation is greatly appreciated to assist us in making customer satisfaction number
#1. Filling out your customer name and/or account number is optional.
GEOTEXTILE FABRIC
LEACHATE
COLLECTION PIPE
GENERAL FILL COMPACTED CLAY
DRAINAGE ~'2NAGE ROCK ~T;PE ~ GiO';EXTILE FABRIC
II
~ ..~dy's Sanitation would like te kmow how we are doing.
Please take some time to fill-out the ~urvey below and send in along with };our payment.
Detach here and send with your payment!!
RANDY'S SANITATION
Cus[omer Name
Rate from 1 to 10 (10 := [!xcellent)
Quality of service
Clean-up around container.,
Driver courtesy .............
Image of equipment ....
Service representative assistance.
Driver promptness..
Please answer Yes ,,~r No
Would you recommend our serv~ice to orhersP
Would you like to know of upcoming solid waste issues
and how they affect you? .......
S 5estions, complaints, & other:
SURVEY
\cc ~ ;/
I would like to learn more about:
.... Neighborhood programs
.... Commercial service
____ Commercial compactors
...... Recycling alternatives
.... Construction dumpsters
..... Special communiT events
..... Speci?d pick-ups
.... Roll-off services
..... Hazardous waste
....... Gov't issues
~ Composting
_ __ Other
Randy's Sanitation, Inc.
P.O. Box t69
Delano. MN 55328
Dear Valued Customers,
IT'S NEW s!!
RAHDY'$
SANITATION
TIMES
Newsletter
Look for valuable
information inside.
A
E
$
FOR EVERYONE'S
T~
FUTt_ R .
tleferrals, Referrals,
Referrals
Much of our growth comes h'on'
YOU through WORD-OF-
MOUTH. Please read-on for mor~
Residential iteterrata
Sign up a friend or neighbor tbr one
year and receive one month free
service from Randy's Sanitation.
Some restrictions may apply.
details .......
Com:me~'cial itelerrats
if vou knorr of a new lousiness that
we can 3ign ?. please call one o~'
our service representati,, es.
Value Saver~ Coupon~
Look for money saving coupons in
the next edition of our newsletter.
Also, if you would like to advertise
in our newsletter call us at
4'79-3335.
* * ltoll-oit Sa.trigs ' *
Mention this ad and ~et $ i 0.00 off'
your first roll-off pull.~ Please resep.'~
~a box early for ','our sprin~o clean-up.
Some restrictions max7 apply.
Expires ?-1-0~ '
Ra,.ndv's Sanitation, Inc.
Also :eat4res :x t!ill-/tee number
in-.stat= callers.
~-800-~>3-1530