At the September 18, 2018 City Council meeting, Staff was directed to meet and negotiate with Republic Services to determine whether or not we may be able to come to terms to extend their contract to provide refuse and recycling services to the residents of Shakopee.

Staff was directed to work on three topics in particular. After meeting with Republic, staff recommends we continue negotiating based on current progress toward the Council's goals.

1. Routing and Collection - The Council asked if Republic could use lighter weight trucks on certain streets with lower weight tolerances. Republic has agreed in principle to change the contract in such a way that allows the City more input on routing decisions. Republic has also agreed to put in the contract that each day they will start their routes with empty trucks.  Between these two changes, we are confident that we can arrive at a solution which will limit damage caused to private streets that are not built to City specifications.

2. Smaller receptacles for seniors, singles or those living in townhomes - Republic does already offer a service for every other week collection, with a 35 gallon container. Republic has agreed to advertise this option more. In discussions about smaller containers, staff and Republic agree that it is likely every week collection of a smaller container is not going to result in a cost savings over the 35 gallon container every other week. 

3. Clarifying the customer service process and expectations - Republic has agreed to modify the contract to include a modified customer service process and expectations.  Most importantly, Republic has agreed to provide a dedicated operations supervisor to the City of Shakopee on their end so that operational issues (missed collection, broken carts, etc...) which make up a great deal of the customer service call volume can be handled swiftly. 

In addition, we discussed rates under the extension with Republic.  Staff is recommending that subject to legal approval we extend the contract 2 1/2 years, to the end of 2021 so that rate changes can consistently happen on January 1 of each year of the effective contract.  Republic has proposed a rate schedule that includes fixed increases for the duration of the contract.

The attachment to this memo outlines the current proposed rates. Notes for each column follow:

Disposal - Cost will continue to be dependent on actual disposal costs. There are many variables here, outside of the control of both Republic and the City. There is potential that disposal costs may go down in the event certain resource recovery facilities close. This cost is variable through the duration of the contract. 

Trash collection - Republic's cost to collect trash. This column would be fixed through the duration of the contract.

Recycling collection - Republic's cost to collect recycling. This column would be fixed through the duration of the contract.

Recycling processing - Based on the recycling processors cost, Dem-con is the City's recycling processor. This cost is variable through the duration of the contract.

Total/Mo - The cost per month to each customer. This spreadsheet does not include changes to the disposal or recycling processing charges. Therefore, this column is variable through the duration of the contract based on changes to those columns.

% Change - The percentage change in the cost per month per customer. This column is variable through the duration of the contract based on changes in disposal and recycling processing charges.

$ Change - The dollar change in the cost per month per customer. This column is variable through the duration of the contract based on changes in disposal and recycling processing charges.