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HomeMy WebLinkAbout02-19-2019 Worksession Packet 6 City of Oak Park Heights Worksession Date: Tuesday, February 19, 2019 Time: 6:30 PM Location: Oak Park Heights City Hall 1. Call to Order 2. Meet with Representative Shelly Christensen and Senator Karin Housley 3. Tennis Sanitation Rate Request 4. Adj ourn Page 1 of 18 City of Oak Park Heights 14168 Oak Park Blvd. N•Box 2007•Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574 2-12-19 MEMO TO: Mayor and City Council Members FROM: Eric Johnson, City Administrator RE: Tennis Sanitation Request. Tennis Sanitation has proposed/requested three rate increases,two of which are subject to the approval of the City. Staff has declined these increases in the past as they run contrary to the Agreement. However, for this latest request I was anticipating that the City Council might hold a work-session in January to discuss these and for new data to be available from the St. Louis Federal Reserve Office regarding CPI-transportation rates.While new data is now available from the St. Louis Fed,the scheduling of a Worksession has not been reasonably available until possibly next week. (Although this matter can wait further) So, please see the attached request from Tennis Sanitation and the "draft" response from the City responding to and declining the requests.The Council might desire to discuss some of the points made in the Tennis request and the City's letter. It is likely true that their costs have increased, but the City does have an agreement limiting their ability to bill these. Therefore, any increase would largely be a discretionary act on the part of the City and not a contractual one. I would offer that if the City sought a price reduction from Tennis due to a taxation revenue shortfall,that Tennis likely would decline; and rightly so...as the contract outlines terms and rates. But I feel it is something the Council might desire to engage and discuss. If there is no objection, I will seek to place this item on the Worksession agenda for 2/19 but after any conversation with our State representatives. Page 2 of 18 R.. :. City of oak Park Heights 14168 Oak Park Blvd. N•Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439 e Fax(651)439-0574 2112/19 TO: Greg Tennis, Tennis Sanitation Willie Tennis, Tennis Sanitation 720 4th Street St. Paul Park,MIT 55071 ***Also via email *** FROM: RE: Rate Increase Requests-For 1/1/19 The City has received your request for certain rate increases associated with the services contracted between your firm and the City.We have had some time to review and we awaiting additional data from the Federal Reserve Bank as noted below. This request is also in addition to previous rate increase requests, to which the City declined. (Those communication responses are enclosed). The proposed rates from Tennis are noted in ORANGE. There are three key requests: i. Tennis' most recent increase is Rates at Start of Rates as In Effect TennisProposed seeking a 204%to its Appliance Fee Agreement 2015 though 12/31/18 Rates for 11112019 35 gallon rates per month per household - Disposal Fee $ 307 $ 3.51 1 373 movie the costs from$.41 to $1.25. Collection Fee $ 4.00 $ 4.00 S 4.00 g Recycling Fee S 2.55 '$ 2.55 S 2.55 This would be an annual $11,000+I- Yard Waste S 1.80 $ 1.00 S 1.00 Apptiance Fee $ 0.26 $ 0.41 $ 1.25 total price increase to the City. Total $ 10.88 $ 11.47 $ 12.53 2. Tennis is seeking an increase to the 65 gallon Disposal Fee moving upwards of Disposal Fee $ 4.89 $ 5 59 $ 593 6.0%. Which is an annual cost to the Collection Fee $ 4.00 $ 4.00 4.00 Recycling Fee $ 2.55 $ 2.55 $$ 2.55 City of approximately $5,100. We Yard Waste $ 1.00 S 1.00 $ 1.00 Appliance Fee S 0.26 S 4.41 $ 1.25 understand that the Disposal Fee is Total $ 12,70 $ 13.55 $ 14.73 directly related to those costs issued by the Ramsey-Washington County 95 gallon Board and where you are required to Disposal Fee S 733 $ 8.39 S 890 Collection Fee S 4.00 $ 4.00 $ 4.00 deliver such materials. Recycling Fee S 2,55 $ 2.55 $ 2.55 Yard Waste $ 1,00 S 1.00 $ 1 00 Appliance Fee` $ 0.26 $ p.41 $ 1.25 3. Tennis is also seeking a rate increase Total $ 15.14 $ 16,35 1 Is 17.70 for EXTRA bags / Construction Items, moving from S 1.50 per bag to $1.75 per bag AND Page 3 of 18 from$13.00 per cubic yard to $ 15.50 per cubic yard.This is a 16.5% and 19.25%increase respectively. As I have discussed with your staff, the associated increase for Disposal Fees is built into the current Agreement and is not something the City may prohibit. Thus, such rate increase goes into effect as of 1/l/19. As it relates to the other increases to the Appliances Fees and Extra Bags/Yards, these rate increases are not approved at this time and approval of such would suggest further increases based on factors outside the scope of the Agreement. Moreover, in reviewing of the relevant data from the Federal Reserve Bank — the total adjusted rate from the start of the contract I/1/15 through I/l/l S is 1.42%. As you know, the City did not seek any price reductions in the preceding years (such as to the Collection Fee) and the Agreement does not guarantee a specific rate of return (R.O.R. /R.O.I.)relative to costs or pricing. Consumer Price Index for All Urban Consumers:Private transportation in Minneapolis-St.Pau I-Bloom ington,MN-WI (CBSA), index 1482-1984--100,Annual, Not Seasonally Adjusted DATE CPI RATE ANNUAL CHANGE 2015-01-01 180.416 0.0000% 2016-01-01 176.512 -2.1639% 2017-01-01 180.328 2.1619% 2018-01-01 188.024 4.2678% COMBINED AWG CHANGE: 1.4219 We appreciate the work Tennis Sanitation has supplied as we are sure you appreciate the fees the City has paid and our commitments to your farm- as the City pays an estimated$190,000 annually for such services and will likely approach over$1,000,000 during the initial term of the Agreement. The City has even supplied to your firm a letter of recommendation—also attached. Lastly,the current Agreement runs through 12/31/19 and allows the City to extend such Agreement for up to three (3) additional years, see the excerpt below. At this time we are unsure if the City will exercise such an extension, but we will let you know prior to October 1 St, 2019. That said, at this time it appears that the City is largely satisfied with the sevices provdied, the current rate structure and at this time is not eager to seek changes. ri. TERM OF CONTRACT The teats:of titin Contract shall he a Period of five(5)y rs commnercing January 1,2015 and coding on L7cc=bcr 31, 2019. 'are City tit its option may c&=d the terra of this Contract for a period of time not to mcoW three(3)years beyond dw originitl tmmtintltien date.City ehr11 provide wiittc-n noti"W Contr^w;wr of its intcnt to extend this Contract at least ninety(90)days prior to the terminZti0D of the Original term, Please let me know if you need any further clarifictaions or if there is a provision in the Agreement that I may have mis-interprted and/or made an error. Thank you. Page 4 of 18 City of Oak Park Heights 14168 Oak Park Blvd. N• [lox 2007+Oak Park sleights,MN 55082 •Phone(651)439-4439•Fax(651)439-0574 September 19, 2018 TO: Municipal Responder—RFP- References FROM: Eric Johnson, City Administrator RE: Tennis Sanitation. Since 2015, the City of Oak Park Heights has worked with Tennis Sanitation— under a five-year unified collection agreement - to service solid waste and recyclable pick-up from over 1,000 homes each week. To date, their service has been prompt, responsive and has meet the expectations of the City pursuant to the Agreement. We would be happy to answer any questions. Thank you. Page 5 of 18 ss,nnrnnow I.. c.-riolcFc .c.. 1M qw�!N�w VS 651 -459-1887 lJ.y+ GREG&WILLIE TENNIS November 7th, 2018 Eric Johnson, City Administrator 14168 Oak Park Blvd. Oak Park Heights, MN 55082 RE: Request for rate adjustment Dear Eric Johnson, Mayor and Members of the City Council, We would like to notify you of our proposed rate adjustments for 2019. Tennis Sanitation, LLC is requesting your approval of our proposed rate adjustment as defined in section D (page 23) of the Refuse and Recycling Contract that defines that the contractor may initiate adjustments in rates due to increased disposal fees. We are also requesting increases in the additional collection services and the Appliance/Bulk Item rate. Disposal Rate Adjustment s `S TMVAr" � RFS W ? The City had based the current disposal rate of$58.00 per ton from the last increase reflected from the increase put into effect from the Recycling and Energy board in January 2016. Effective January lst, 2019, the rate will be $69.00 per ton. Below are the calculations based on the new adjusted disposal fee. See attached letter from the Ramsey/Washington Recycling& Energy Board Volume Level Weight Calculator Per unit increase New disposal rate 35 Gallon rate calculation: .054 tons/month =$0.22 per month $3.73 65 Gallon rate calculation: .086 tons/month =$0.39 per month $5.98 95 Gallon rate calculation: .130 tons/month =$0.57 per month $8.96 Appliance/Large Item Disposal Fee Tennis has conducted a review of all appliances and bulk items picked up since the start of the contract in January 2015. The cost totals are the base bulk item rate with no taxes included. (CEC and SWMT) We have taken the last quarters of the previous 3 years to come up with the average cost for the fourth quarter of 2018. On the following page are the quarterly totals of all the appliances and bulk items picked up from the residents of Oak Park Heights including the average per home per month cost. Tennis is proposing an increase from the current$0.41 per home per month rate for Appliances/Bulk item fee to $1.25 per month. This increase will help Tennis cover the cost of disposal of the large amount of appliances and bulk items serviced in the city of Oak Park Heights. 7204 th Street St Paul Park, MN 55071 Page 6 of 18 SANfTAY}pN L.L.i:.-r'IULL C�cF L.L.G. 651 -459-1887 ' SY.PAUL RARt,MN .. GREG&WILLIE TFNNIS 2015 2016 2017 2018 Quarter $2,132.00 $3,669.00 $3,569.00 52,078.00 Quarter 53,897.00 $5,844.00 $6,192.00 $6,520.00 Quarter 3 $4,912.00 $5,109.00 $6,453.00 56,302.00 Quarter4 53,702.00 $4,625.00 53,766.00 $4,031.00 grt4 is a average of Qrt4forthe last 3 years $14,643.00 $19,247.00 $19,980.00 $18,931.00 #of Homes 1,094 1,094 1,094 1,094 12 months 12 12 12 12 $per Month per Average cost per home per Home $1.12 $1.47 $1.52 $1.44 $1.39 month for WHITE GOODS Overview Tennis Sanitation is requesting the following rate adjustments for 2019: Volume Level Disposal Appliance/Bulk Item Total monthly charge minus CEC 35 Gallon .22/Month $1.25/Month $12.53/Month 65 Gallon .39/Month $1.25/Month $14.7$/Month 95 Gallon .57/Month $1.25/Month $17.76/Month Additional Costs for Extra Materials Residents are to be individually charged for additional bagged trash and/or construction material above and beyond the cart the cost reference is on page 24 and Attachment C in the Refuse and Recycle Contract. Since 2015 disposal costs have been increased by 22.73%. Tennis proposes to increase the per bag charge by 16.50% which would increase to $1.75 per hag and the construction material fee by 19.25%which would increase to $15.50 per yard. 1.50 Per 30 gallons Extra Trash Charge per Yard of Construction Debris Year Disposal per Ton $1.50 Current Rate $13.00 $13.00 2015 $56.22 16,50% % lerease since 15' 22.73% 19.25% 2016 $58,00 $0.25 S2.95 $2.50 2017 $58.00 2018 $65.00 $1.50 $13.00 2019 $69.00 $0.25 .$2.50 Icrease since 15' 22.73% $135 $15.50 Tennis Sanitation takes pride in providing great service to our customers. As part of providing great service it is important that we pass-on the increased disposal cost to maintain the quality of service that you have come to expect. Best re�rds Cf reg 'F:J WU'e Teln.KIS Tennis Sanitation Office: 651-459-1887 "Family-owned quality service since 1966" 720 4th Street St Paul Park, MN 55071 Page 7 of 18 !,P,fVfoVS RRTF INCRE145E' Rfav�sT s Page 8of18 City of oak Park. Heights 14168 Oak Park Blvd. N•Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574 12-18-17 TO: Greg Tennis,Tennis Sanitation Via email only: supportcDtennissanitation.com RE; Letter dated 12/14117—CPI Rate Adjustment. Dear Greg: I have received your letter date: 12/14/2017 in which Tennis Sanitation seeks the following: 1. Disposal rate adjustment to a base rate of$651ton.These amounts you propose should reflect these amounts below and are to be solely adjusted pursuant to the mechanism found in the agreement between the City and Tennis.In short,this increase is approved,but please verify these figures. The Disposal Fee portion of the Base Dwelling Unit Price mu,(he bid 9�follows": Sae of Reuse Container rate ch sal fa: =„1._R DUSTMENT Effective 1/1/18 30'35-arlan rate dis tee: S 3.51 60 65- allon rate dis oral fee: S c 59 40?5-caElon t:�ce d:n'toszl fec 5 S=5 These:antesare estabBs!;rd usmz¢r•^.o;io�Utz ass>Lr..noes: Assumption01: Disposal ging)^ee=Per'con• $ 77.00 assumption+`-2' Pet T=R:bzt” $ 12„00 asncaption3A-ET COS:PER.Tort-Disposal Fee 5 65.00 Tons Per Month Fee Per Month .�s_nuttption�3: 3035-gallon smite: zs-erage 25 tbslmk[(.A54 1oa'ma_1 0.0 $ 3.51 .�saunpnen=i. 60 65-FJon sen:_". etc.ase 1"-ilk[ "S5 to::<mo.1 0.086 $ 5.59 Arar*rpri"c=6 90smite: zverase of 1's r:1.[,i-9 tc:—,:n,.l 0.129 $ 6.39 2. A"yard waste rate adjustment"—perhaps pending?Under the Agreement there is not a provision for an automatic rate increase. 3. An inflationary rate increase of perhaps 3%?Unfortunately,the letter references the CPI—BLS-Midwest---but which is not the required parameter.The correct parameter as outlined in the Agreement is essentially 75%of the percent increase or decrease in the Private Transportation Consumer Price Index—Minneapolis-St.Paul.See Attached excerpt from the Agreement. I did take a look this specified required data and it appears that the latest data from the BLS and/or the Federal Reserve Bank is actually a reduction(decrease)of 2.16%;not an increase.Moreover,for the preceding two years it also saw a decrease of 7.70%and.93%respectively. See data below.The City did not seek a rate adjustment—lowering pricing during these cycles;although it could have been justified. We would believe that keeping the rates stable instead of attempting to manage the comparatively minor fluctuations of this statistic benefits both parties and thus we would be disinclined to consider any alterations in current rates. If there is new data that is presented that appears to suggest material changes in this statistic the City would be happy to consider it Kind regards, i' Eric Johnson City Administrator Cc: Weekly Notes Betty Caruso, Finance Director Page 9 of 18 0 7 n m n m m T C q o v F a m m 1 Q N N N N N N N N N N N N N N N N N- - - - - - - - -- - - -+ a D ..J O O O O O O O 0 0 0 0 0 0 9 0 0 O N <D N tD C6 N,D ,D N w 0 0 0 0 0 6 0 0 0 0 0 t0 cp [e? ,O �D,D �D 2s Q z a W O W W W O O 0. N T W N Q J T b m b b b b 6 b 6 b b b b b b b 6 6 h 6 6 6 b b 6 b b b 6 6 b b 6 6 b b c m �S.N m O D n n rno$n O 3 a 7 C R a 80 n 0 3 O N ti s w N C ® W aNma� � � �588S � 0000000�oao88 � a a D c N N Ch !'yy b 0 DD�D N N f.1 A W (.]N A N mb p N pWp N N N QI A N Gt N �Ol�pp lD ID W p �p la OS N A 1p A W O Sn W 61J p1 J 31 ID 3 pp pp7� !D 4 W OI V, A V W O -' Q QI W nl .O N W W Os N-+• N..� A t� a a e o � o o�a° ro ,Ur,1982-1es4-100 17 m a & p S S m $ 4 n o n m Op tl w i VA G WO ! c CLzx ZJ C 3 _a IA a W � n Cr 0 a m e § ~ to Q n a IN 3 W y 6 m f(5� Cd O — 63 8 � a 3 o y s m © y 12 N 0 0 Page 10 of 18 R t� City of oak Park Heights 14168 Oak Park Blvd. N a Box 2007.Oak Park Heights,MN 55082•Phone(651)4394439•Fax(651)439-0574 4-11-18 T0: Greg Tennis,Tennis Sanitation Via email only: supportgtennissanitation.com RE: Letter dated 4-1-18-CPI Rate Adjustment. Dear Greg: I have received your letter dated above in which Tennis Sanitation seeks the following: An inflationary rate increase of 3.34% The correct parameter as outlined in the Agreement excerpted below is essentially 75%of the percent increase or decrease in the Private Transportation Consumer Price Index-Minneapolis-St.Paul.See the enclosed data and or the following website link: https/Ifred stlouisfed.org/series/CUUSA211SAT1 I did take a look this specified required data and it appears that the latest data from the BLS and/or the Federal Reserve Bank is an increase of 2.161% and not the 3.34% parameter. {if I have made an error here please let me know.} Moreover, for the preceding two years it saw a decrease of-7.69%and-2.16%%. Note, the City did not seek a rate adjustment-lowering pricing during these cycles although it might have been justified. Further since the commencement of the Agreement with Tennis, the overall average has declined-2.56%. Accordingly, we must decline the current increase request. We would believe that keeping the rates stable instead of attempting to manage the comparatively minor fluctuations of this statistic benefits both parties and thus we would be disinclined to consider any alterations in current rates. If there is new data that is presented that appears to suggest material changes in this statistic the City would be happy to consider it. Kind regards, D. 11c City or the Cona actor may initiate adjuKracats as folluwc 1. On April 1st of tach year,cithea party may request adjustme ou to the collection and rrcycling fee of the Contracts base dwelling unit ares on the basis o,`75°6of the percent increase or decrease in the Private Transportation Consumer Price Eric Johnson Index(CPI)Mitme"lis-St.Paul,for the twelve(12)mon8t period mding the previous calendar year. Such chaugas ®hall be effective July Ist of the yaar City Administrator requested and when only agreed upon in wntir-ii by both patties. Cc: Weekly Notes Betty Caruso,Finance Director Page 11 of 18 y .r IJ �1�j'tm)'ii Z7 wry 4 i]O ��� Nr,?��jj �r.YNN.0 ; • .. n....w . ...- �h.}` S 6b1a66bob6�st�cYr ) r� j ��a s m c 1 ID J Y, � tl �y Oc,N sP�.4j .r fw[,.�I..�� r N)•u 'V KS�sy� nan>f r»r hY o.r., .r �,.Kvvs Po�KFi`cacaau�ca _.t�otioci`ca'�i � n s r � 5 w w m -d iF'r flD an in `.iV o©10 _W-r gg rn� r n as wenmr ___�_�_....' ;fi ffi'd°�- ,. Fl.' '.le b=de 1. " v+s m ag gw ya _ x K I t f q ri 3 A T b b Page 12 of 18 , MfyTwTICMJ LLQ-14C1i.1 OFF LLC.•.... 551 -459-1887 614 FYVIA FYIOS.MN f 1 CAF[P&WILLIE TFNNl6 C "l www.tennissanitatiQn.Comm December 14th, 2017 Eric Johnson,City Administrator Oak Park Heights 14168 Oak Park Blvd. Oak Park Heights, MN 55082 RE: Request for rate adjustments Dear Eric Johnson, Mayor and Members of the City Council, We would like to notify you of our proposed rate adjustments for 2018. Tennis Sanitation, LLC is requesting your approval of our proposed rate adjustments as defined in section D (page 23) of the Refuse and recycling contract that defines that the Contractor may initiate adjustments in rates due to increases in Disposal fees. We have been notified by our facilities of rate increases for 2018. These include increases in tip fees at the Recycling and Energy Board and yard waste fees in the spring. We are also requesting a CPl adjustment for 2018. These rate adjustments are comprised of the following items which include: ITEM 1. Disposal Rate Adjustment The City had based the original disposal rate in the RFP on$58.00 per ton. Effective January V, 2018,the rate will be$65.00/ton. Below are the calculations based on the new adjusted tip fee. See attached letter from the County Volume level Weight Calculator Tip fee ad'. Per unit-increase/month 35 Gallon rate calculation: .054 tons/month @ $7,00/ton =$ .38 per month 65 Gallon rate calculation: .086 tons/month @ $7.00/ton =$ .60 per month 95 Gallon rate calculation: .129 tons/month @ $7.00/ton =$ .90 per month 720 4th Street St Paul Park, MN 55071 Page 13 of 18 � a 651 -459-1887, yM,"� HT.PPUL PAAK MfJ PRET&WIWETIMNIS l� ITEM 3: Yard Waste Rate Adiustment We will send notice of a rate adjustment if an increase is received from the compost drop location in the spring. ITEM 4: GPI Rate Adiustment Tennis Sanitation is requesting a CPI rate adjustment of 3%per unit per month. Looking at the Midwest CPI year-end 2016 of 226.115 and the Midwest CN midyear 2017 229.151 35 Gallon -$11.09 x 3%=$0.33 65 Gallon -$12.95 x 3%=$0.39 95 Gallon-$15.44 x 3%=$0.46 Tennis Sanitation is requesting the following rate adjustments for 2018: Volume Level Disposal Yardwaste CPI Total_ 35 Gallon rate $ .38/month $ ./month $ .33/month $0.71/month 65 Gallon rate $ .60/month $ ./month $ .39/month $0.99/month 95 Gallon rate $ .90/month $ ./month $ .4C/month $1.36/month Tennis Sanitation takes pride in providing great service to our customers. As part of providing great service — it is important that we pass-on justified disposal increases to maintain the quality of service that you come to expect. Best regards, rreg F Wrirll.ie Y`ev+.w%s Tennis Sanitation Office: 651-459-1887 Family-awned quality service since 1966" 7204"'Street 5t Paul Paris, MN 55071 Page 14 of 18 e City of oak Park Heights 14168 Oak Park Blvd. N•Box 2007•Oak Park Heights.MN 55082•Phone(651)439-4439•Fax(651)439-0574 617117 TO: Greg Tennis, Tennis Sanitation Via email only: support(rtennissanitation.com RE: Letter dated 6/1117—CPI Rate Adjustment. Dear Greg: I have received your letter dated June 151,2017 in which Tennis Sanitation seeks a rate adjustment of 1.60%to current rates to match the CPI rates. Unfortunately, the letter references the CPI— BLS- Midwest Urban Consumer statistic, but which is not the required parameter. The correct parameter as outlined in the Agreement is essentially 75%of the percent increase or decrease in the Private Transportation Consumer Price Index—Minneapolis-St.Paul. See Attached excerpt from the Agreement. I did take a look this specified required data and it appears that the latest data from the BLS and/or the Federal Reserve Bank is actually a reduction(decrease)of 2.16%; not an increase. Moreover,for the preceding two years it also saw a decrease of 7.70%and .93%respectively. See data below. The City did not seek a rate adjustment--lowering pricing during these cycles; although it could have been justified, We would believe that keeping the rates stable instead of attempting to manage the comparatively minor fluctuations of this statistic benefits both parties and thus we would be disinclined to consider any alterations in current rates. If there is new data that is presented that appears to suggest material changes in this statistic the City would be happy to consider it, Kind regards, Eric Johnson City Administrator Cc: Weekly Notes Betty Caruso, Finance Director Page 15 of 18 651 -459-1887 •wre ;y www.t enn lssanit at ion.c o rn June 1",2017 Eric Johnson,City Administrator Oak Park Heights 14168 Oak Park Blvd. Oak Park Heights,MN 55082 RE: Request for rate increase Dear Eric Johnson, Tennis Sanitation LLC., would like to take this opportunity to thank you for your business of the trash and recycling contract with the City of Oak Park Heights. We would like to notify you of our request a rate adjustment to our rates for 2017.We are request a CPI rate increase of 1.60%. This number is provided to us by the Bureau of Labor Statistic for which we take the Midwest Urban Consumer Price index. So the CPI adjustment that we are request for 2017 35 Gallon Trash-$0.18 65 Gallon Trash-$0.21 95 gallon Trash-$0.75 if you require further information please contact us Best regards, Willie and Greg Tennis Tennis Sanitation Support CEO tenni ssanitation.com Office: 651-4591887 'fvmilµ-owned quality service since 1966" 7204'h Street St Paul Park,MN 55071 Page 16 of 18 u Ti � p v v p m I4y 8 '. p�� m N N N N N N N N N N N N N N N N N y ci]{O 1p 1p tp 1p tp tp[O Cp 1p Lp 1p l0s ltJ LD Q P P Q O P Q 4 P P W N W tp tp�p ca tp t!f 40 Ql C9 4 W CO pa @ C d D. P Ih A W N O 1p m V [fi m Y m W A W OV.+ p� ($J N T m@ o_o_oo oo_00000000c�8obd2obbobo6djdboc5bo W 3= o n 666666666666666666666866668866666 4 C c 3 0 o O y N d p IO n1 7 4 Of O lR V P'V CO i}5 W�1 O i+N N 4n til 1T Q�(r W iP P�Ad ETA W 6���L �J CL a � � c m W o c r:v:in_. --6mtnNN W a.W 4 Nmo..+N WW cn A NinNr 3 Ct o w tJ In lea ao m o m m t~n m w 6~i 0o W m J4i 00 60i t»N o o a4o N AST o N oaooa �-eeeeeeeeeeeeeeeeeeeeeeeeee -13 Irdca 140.:-1934-E00 aY 2e to �3 h - CL rx n D C Q _ g .Ir 3 }: C W d N � O A O c t N tn g o 0 s } o � j IA � p a � r9 Page 17 of 18 City of oak Park Heights 14168 Oak Park Blvd. N-Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574 February 23, 2016 Mr. David Domack, Tennis Sanitation VIA EMAIL ONLY-DaviddQtennissanitation.com RE: Rate adjustments—letter dated 2118116 Dear David: The City has had a chance to review your proposed rates for the 2016 year and we have the following responses: Item#1: The increases related to the tipping fees as result of rate changes by the RRT is permissible under the Agreement and shall take effect as of 111116. These rates will continue to float year over year and may vary. Item#2: Please provide more detail on haw you are calculating this proposed rate increase from $.26 to$.71 per month,Also provide justification for assessing a$30/per fee unit at collection days for these items when essentially this would be a double fee for our residents—please explain how it would not be a double-fee. Once we have that information as requested we will review, Item#3: The proposed increases stemming from the increases your company incurs to address Yard Waste is not approved.Tennnis'submitted bid for 2015-2019 locked your rates.The fact that Tennis' ultimate disposal rates for these items may increase or decrease is not within the City's purview to comment. Item#4 Please provide more detail on how you calculating this CPI and what standard should this be compared with in the St. Paul market- MSA, Provide that information and rationale. Item#5: The City pays a standard rate for processing fee not to exceed of$60.00.Any increased despite how these are calculated is the responsibility of Tennis Sanitation. See IV.A.3.m of the Agreement. Thank you. Eric Johnson City Administrator. Page 18 of 18