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AGENDA RECOMMENDATION |
5.D.
City Council Regular Meeting
- Meeting Date:
- 12/08/2025
Agenda Item:
Resolution authorizing the City Manager to enter into a one-year agreement with OMG Midwest for yard waste composting.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The City of Mankato and OMG Midwest DBA Minnesota Paving & Materials have had agreements for composting of yard waste starting in 2017. Due to satisfactory performance, staff is recommending a new one-year agreement.
OMG, located at 1905 Third Avenue, is a facility which composts yard waste, such as grass clippings, garden materials, leaves, brush, and other similar materials no longer allowed to go to the landfill under existing state law and regulations.
The following are examples of the material that will be acceptable at the yard waste composting facility at no charge to residents of the City of Mankato and the City Departments:
Grass/Lawn Clippings Garden Waste Leaves
Christmas Trees Weeds Brush
Tree Waste/Pruning Shrub Waste Sod Stripping
OMG will accept delivered, compostable yard waste material, without charge, from private (i.e., non-commercial) residents of the City of Mankato provided the material is prepared and delivered to the facility in a manner reasonably acceptable to OMG and the City of Mankato. OMG will accept compostable yard waste material from the City of Mankato Departments under the same conditions at no additional cost.
Payment
The City of Mankato shall compensate the contractor for the operation, maintenance, and management of the compost facility as specified in the agreement as follows:
Year Monthly Payment Total Annual Cost
2021 $11,207.26 $134,487.10
2022 $11,487.44 $137,849.28
2023 $12,004.37 $144,052.44
2024 $12,844.68 $154,136.11
2025 $13,486.91 $161,842.92
2026 $14,026.39 $168,316.64
In discussions with the vendor, specifically related to their increased operational costs to provide the necessary service. Staff would recommend a 4% increase to the one-year term of the agreement. Staff would note that this can be absorbed within the approved 2026 Refuse Fund budget, as the approved budget did anticipate an increase to this contract.
OMG, located at 1905 Third Avenue, is a facility which composts yard waste, such as grass clippings, garden materials, leaves, brush, and other similar materials no longer allowed to go to the landfill under existing state law and regulations.
The following are examples of the material that will be acceptable at the yard waste composting facility at no charge to residents of the City of Mankato and the City Departments:
Grass/Lawn Clippings Garden Waste Leaves
Christmas Trees Weeds Brush
Tree Waste/Pruning Shrub Waste Sod Stripping
OMG will accept delivered, compostable yard waste material, without charge, from private (i.e., non-commercial) residents of the City of Mankato provided the material is prepared and delivered to the facility in a manner reasonably acceptable to OMG and the City of Mankato. OMG will accept compostable yard waste material from the City of Mankato Departments under the same conditions at no additional cost.
Payment
The City of Mankato shall compensate the contractor for the operation, maintenance, and management of the compost facility as specified in the agreement as follows:
Year Monthly Payment Total Annual Cost
2021 $11,207.26 $134,487.10
2022 $11,487.44 $137,849.28
2023 $12,004.37 $144,052.44
2024 $12,844.68 $154,136.11
2025 $13,486.91 $161,842.92
2026 $14,026.39 $168,316.64
In discussions with the vendor, specifically related to their increased operational costs to provide the necessary service. Staff would recommend a 4% increase to the one-year term of the agreement. Staff would note that this can be absorbed within the approved 2026 Refuse Fund budget, as the approved budget did anticipate an increase to this contract.