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Authorizing staff to begin final contract negotiations with the currently licensed residential trash collectors and suspending the Organized Collection Options Committee.
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WHEREAS, Minnesota Statute § 115 A.94, et. seq. (hereinafter “Statute”) authorizes a city to organize trash collection and creates a required procedure a city must follow to organize collection of trash; and
WHEREAS, on February 24, 2016, the Saint Paul City Council in RES 16-337 directed the Saint Paul Department of Public Works to solicit input from residents in order to develop draft goals and objectives for implementing a system of organized residential trash collection within the City of Saint Paul; and
WHEREAS, the Saint Paul Department of Public Works conducted a public information campaign and on June 1, 2016, the Saint Paul City Council in RES PH 16-174 accepted the report Organized Trash Collection in Saint Paul: Report on Community Input and Draft Goals and Objectives from the Saint Paul Department of Public Works and conducted a public hearing regarding the goals outlined in RES PH 16-174; and
WHEREAS, prior to establishing a committee under subdivision 4a of the Statute, the city must meet and negotiate for a 60-day period exclusively with existing licensed residential trash collectors to develop a proposal to collect trash from designated sections of the city; and
WHEREAS, if the City does not reach an agreement with existing licensed residential trash collectors, the City must create and receive a report from an Organized Collection Options Committee; and
WHEREAS, the Saint Paul City Council in RES 16-1300 designated August 1, 2016 as the official date to begin the required 60-day period of exclusive negotiations between existing licensed residential trash collectors and the City; approved priorities and parameters to guide the negotiations; and authorized staff to conduct the negotiations; and
WHEREAS, the Council on April 12, 2017 in RES 17-579 created an Organized Collections Options Committee to begin work in the event that the negotiations with the existing licensed residential trash collectors does not result in an agreement; and
WHEREAS, since August 2016, City staff and the fifteen existing licensed residential trash collectors, which includes Advanced Disposal, Aspen Waste Systems, East Metro Environmental, Gene’s Disposal Service, Highland Sanitation, Garbage Man 1, Garbage Man 2, Ken Berquist & Sons, Krupenny & Sons, Pete’s Rubbish Hauling, R&M Sanitation, Republic Services, Triangle Rubbish Service, Walters Recycling and Refuse Inc., and Waste Management, have held sixteen negotiating meetings, both parties have negotiated in good faith, and the collectors have submitted seven proposals for consideration; and
WHEREAS, the City strived to reach all of the priorities outlined in RES 16-1300 including, but not limited to, maintaining current, small, local haulers with one hauler servicing a block; providing consistent and high quality customer service throughout the city with residents able to talk with a customer service representative; providing stable, uniform and equitable rates; realizing greater efficiencies to reduce costs for the majority of residents; reducing truck traffic, noise, air pollution and wear and tear on streets and alleys; providing options for proper disposal of bulky items such as appliances, mattresses, tires, electronics and furniture to reduce illegal dumping; providing financial incentives to residents to recycle more; supporting living wage jobs and labor peace agreements; requiring every household to have trash service; arranging for pickup from less able-bodied residents; providing improving access to information for non-English speakers; and processing trash at the Ramsey Washington Recycling and Energy Center; and
WHEREAS, the final proposal, signed by all fifteen haulers, includes, but is not limited to: one hauler servicing residents on any given block; uniform prices for weekly garbage service in a small, medium and large cart and the option of every other week service; free walk up service for elderly and people with disabilities; up to three large bulky items per year per household and a disposal of a holiday tree included in the base price; easy access for all residents with all households having service with set prices; haulers providing consistent billing and customer service; wage standards that abide by the Living Wage Ordinance and include a $20 per hour minimum wage for drivers; the city providing garbage carts and haulers providing cart management; and
WHEREAS, the final proposal includes an agreed upon Price Work Sheet with additional optional services at a negotiated price, Term Sheet, Cart Management, Billing and Delinquent Account Procedures, Liquidated Damages, Single Entity Contract Framework, and St. Paul Haulers’ Service Quality and Service Disruption Avoidance Program; and
WHEREAS, the Council wants to ensure that organized residential trash collection can be implemented in Saint Paul as soon as possible and recognizes that there will be administrative costs associated with implementing and managing a coordinated trash collection system in Saint Paul and will require additional time (Minimum of 12months) for implementation planning; and
WHEREAS, if the negotiations with the existing residential haulers are not completed in a timely manner to ensure logistical and operational processes are in place for a smooth transition by fall of 2018, the City will return to the Options Committee Process in order to establish organized collection in Saint Paul;
NOW, THEREFORE, BE IT RESOLVED, that the Saint Paul City Council authorizes City staff to negotiate a final contract with representative(s) of the existing licensed residential trash collectors to be approved by the Council no later than October 4, 2017; and
BE IT FURTHER RESOLVED, that the agreement shall be consistent with the terms contained in the Seventh Proposal from the existing licensed residential haulers which is attached to this resolution, and such agreement shall be executed between the City and an LLC made up of the existing licensed residential trash collectors; and
BE IT FURTHER RESOLVED, the Organized Collection Options Committee is hereby suspended and will be dissolved upon adoption of a final agreement between the City and the LLC consisting of the existing licensed residential trash collectors.