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HomeMy WebLinkAboutVIII-08 Approve Collection Rate Increase for Tennis Sanitation City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: December 4, 2023 Item: Residential Solid Waste and Recycling Contract Council Action Requested: Approve residential solid waste/recycling rate increases, including compost program. Background Information: Following a 2018 RFP, the City entered a three-year contract (2019-2021) with Tennis Sanitation for residential solid waste and recycling collection. The contract includes a provision allowing up to two additional three-year extensions (2022-2024 and 2025-2027). In November 2021, the City Council approved the first extension (2022-2024). Their proposed rate increases were submitted November 21. Based on increased tipping fees at Red Wing, increasing fuel and operation costs, and decline in recycling markets, Tennis proposes an increase of $1.20/month ($3.60/quarter) plus tax to each household. Additionally, they propose a $5 annual increase for the compost program, and no increase for “per bag” compost service or in the yard waste drop-off site. The last increase was $1.00/month for residential service, $10 annual increase for the compost program, and a $1 per bag increase for “per bag” compost service for 2023. Financial Impact: n.a. Committee Discussion: n.a. Attachment: n.a. VIII-08