Resolution authorizing the City Manager to execute a five-year agreement with West Central Sanitation for refuse and recycling collection.

Adoption of the attached resolution.

The contract for the collection of residential solid waste and recyclable materials with West Central Sanitation initially went into effect in 2015, with an initial five-year term which was ultimately renewed for an additional five-year term, set to end on December 31, 2024. 
 
During the Council Work Session on October 7, staff provided an overview of the service that West Central Sanitation has provided to the City of Mankato for the last ten years. At this meeting, staff also explained that the term of the agreement was coming to an end on December 31, 2024, and staff went on to inform the Council that, based on Minn STAT 115A 94, Subd. 3, that the state competitive bid law does not apply to solid waste contracts. City staff expressed a desire to continue with West Central Sanitation based on their operational performance and resident experience over the past ten years. During discussions, city staff expressed the likelihood of an initial increase of 11.8% to continue service, as justified by the adjusted Consumer Price Index (CPI) since 2014. Staff informed the Council that this adjusted rate could be absorbed within the proposed 2025 Refuse Collection budget which included a 3% rate for service adjustment. At that time, Council members expressed the major concern that they have continually heard from constituents is the need to adjust the existing start time of 4 a.m., to something more reasonable, such as 6 a.m.   
 
Through negotiation between city staff representatives and West Central Sanitation representation, the following conditions have been agreed upon:

Operational Adjustments

• 6 a.m. start time Tuesday-Friday. City of Mankato staff have worked with West Central Sanitation to ensure that residents maintain consistent pick-up days.

 
CPI Calculation

• CPI increases will be capped at 4%. Any actual CPI increases greater than 4% are to be carried over to the next annual adjustment. A CPI greater than the 4% maximum will get carried forward throughout the contract until absorbed.
• Year two has the ability to go above the 4% cap due to the 1.29% adjustment.

 
Breach of Contract

• If the contractor doesn’t comply with any and all federal and state statutes, rules and regulations and all city and county ordinances and regulations pertaining to or regulations for the provision of such services or actions, including those now in effect or hereafter adopted, the City may terminate this contract upon 21 days written notice if material.

 
Procurement Requirements

• Per Minn Stat 115A 94, Subd 3. “The agreement with private collectors may be made through an ordinance, franchise, license, negotiated or bid contract, or by other means.  The competitive bidding requirements in state law do not apply to contracts for solid waste collection because a contract for these services does not meet the definition of a “contract” that is subject to the Uniform Municipal Contracting Law.” 

 
Staff recommends that the city execute a new five-year contract with West Central Sanitation, ending December 31, 2029.