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HomeMy WebLinkAboutVIII-18 Approve Collection Rate Increase for Tennis Sanitation City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: December 19, 2022 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). At that time, Tennis did not propose a rate increase for 2022, but indicated it anticipated an increase in 2023 based on preliminary information from the Red Wing landfill. The extension says that Tennis will submit rates for by September 1, 2022. Their proposed rate increases were submitted in November. Based on increased tipping fees at Red Wing, increasing fuel and operation costs, and decline in recycling markets, Tennis proposes an increase of $1/month ($3/quarter) plus tax to each household. Additionally, they propose a $10 annual increase for the compost program, a $1 per bag increase for “per bag” compost service, and no increase in the yard waste drop-off site. The last increase was $1.50/month in 2021. Financial Impact: n.a. Committee Discussion: n.a. Attachment: n.a. VIII-18