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HomeMy WebLinkAbout10.06.25 Work Session Packet AGENDA Council Work Session Meeting 5:00 PM - Monday, October 6, 2025 Farmington City Hall, Conf Room 170 Page 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS 3.1. Discussion on Use of Trails (5:00pm - 6:00pm) Listen to the presentation, ask any questions you have, discuss, and provide direction to staff regarding potential next steps. Agenda Item: Discussion on Use of Trails - Pdf 2 3.2. Solid Waste/Recycling Services Agreement Between the City of Farmington and Dick's Sanitation Service Inc. (6:00pm - 6:30pm) Discussion only. Agenda Item: Solid Waste/Recycling Services Agreement Between the City of Farmington and Dick's Sanitation Service Inc. - Pdf 3 - 47 4. CITY COUNCIL COMMITTEE UPDATE 5. CITY ADMINISTRATOR UPDATE 6. ADJOURN A Quorum of the Parks & Recreation Commission May Be Present And Participate in Discussion with the City Council. Page 1 of 47 COUNCIL WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Kellee Omlid, Parks & Recreation Director Department: Parks & Recreation Subject: Discussion on Use of Trails Meeting: Council Work Session - Oct 06 2025 INTRODUCTION: Cities across Minnesota, including Farmington, are experiencing a noticeable increase in electrical and / or motorized activity on trails and sidewalks. DISCUSSION: The rising popularity of electric bikes (e-bikes), electric scooters, and other motorized bikes, has led to increased traffic from non-traditional bicycles on city trails. Staff have observed and received resident and trail users feedback about concerns including (1) the speed of these non-traditional bicycles on shared pathways, (2) confusion among users what is permitted on trails, and (3) potential conflicts or safety concerns with pedestrians and traditional bike users. Staff will present an overview of the current situation and challenges, information on e-bikes, e-scooters, and other motorized bikes, summary of relevant Minnesota Statutes and regulations, and potential solutions for managing electric and motorized use on city trails. Please note this portion of the work session will be conducted jointly with the parks and recreation commission. ACTION REQUESTED: Listen to the presentation, ask any questions you have, discuss, and provide direction to staff regarding potential next steps. Page 2 of 47 COUNCIL WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: John Powell, Public Works Director Department: Engineering Subject: Solid Waste/Recycling Services Agreement Between the City of Farmington and Dick's Sanitation Service Inc. Meeting: Council Work Session - Oct 06 2025 INTRODUCTION: In November of 2021, the City entered into an agreement (attached) with Dick's Sanitation Service, Inc. (DSI) for solid waste services for an initial term of five years; the agreement expires on December 31, 2026. Upon mutual consent, the agreement may be extended for one initial five-year term; and up to two additional two-year terms; with negotiated prices. Since the original agreement, two amendments have been approved (attached) to account for fee increases at the City of Red Wing. A third amendment is planned for later this year to account for another Red Wing fee increase. DISCUSSION: Extending the agreement with DSI requires delivering written notice of the City's intent to extend the term to DSI at least six months prior to the expiration of the contract term. Notice would need to be delivered no later than June 30, 2026. From a practical perspective, a decision to make any significant change to the City's solid waste and recycling hauling should be made well before then. Prior to entering into the agreement with DSI, city staff hauled solid waste and had three related contracts; a contract with DSI for recycling collection; a contract with DSI for the transfer between the DSI Lakeville facility and Red Wing; and a contract with the City of Red Wing to process waste. The current DSI agreement consolidated these contracts and eliminated city staff collection of solid waste. Based on the most recent DSI report, DSI has 7,045 accounts in the city; and hauled about 1,677 tons of solid waste and 531 tons of recycling in Quarter 2 of 2025. DSI fully administers the customer accounts. Municipal Solid Waste (MSW) and recyclable collections fall into two general categories, open collection and organized collection systems. The city has organized collection. In 2009, the Minnesota Pollution Control Agency (MPCA) contracted for an Analysis of Waste Collection Service Arrangements which provided a detailed review of organized and open collection approaches in Minnesota. The entire report runs to 271 pages, attached is Page 3 of 47 Section 2.1 of the report which summarizes the perceived advantages and disadvantages at that time of each type of collection system. Any changes made by the city are subject to state and county rules. The Dakota County 2024-2044 Solid Waste Mangement Plan was approved by the MPCA on August 22, 2025; and was adopted by the Dakota County Board of Commissioners on September 23, 2025. Minnesota Statute 115A.46 discusses local solid waste management plans; Subdivision 5 (b) states the following: "After a county plan has been approved under subdivision 1, the plan governs all solid waste management in the county and a public entity, as defined in section 16C.073, subdivision 1 within the county may not develop or implement a solid waste management activity, other than an activity to reduce waste generation or reuse waste materials, that is inconsistent with the county plan that the county is actively implementing without the consent of the county." waste solid city to provide and consent to need would County Dakota review management activity changes unless we demonstrate the proposed changes reduce waste generation or reuse waste materials. If the city chooses to move away from waste to energy methods (via Red Wing) to landfilling, we would likely not be able to obtain County consent for the change. At this point, a primary question to be considered is whether the city should consider moving from organized collection to open collection. From a public works standpoint, the advantages the current The outweigh disadvantages. collection organized of far organized collection via DSI:  Significantly reduces the number of truck trips, and impact to city bituminous pavement.  Reduces the overall traffic on area roadways.  Reduces fuel consumption.  Generates a very minimal number of complaints related to DSI activities. will staff agreement, DSI existing the of Council a anticipates City the If renewal immediately notify DSI and develop renewal terms and goals for City Council action. If renewal is not anticipated, there are options that would preserve organized collection but allow competition from other carriers such as creating multiple hauler zones. This and other options can be discussed. BUDGET IMPACT: Discussion only. ACTION REQUESTED: Discussion only. ATTACHMENTS: DSI Agreement Page 4 of 47 Executed First Amendment to the Residential Solid Waste Recycling Agreement DSI 121823 Executed Second Amendment to the Residential Solid Waste Recycling Agreement DSI 121624 MPCA Report Section 2.1 Page 5 of 47 SOLID WASTE / RECYCLING SERVICES AGREEMENT BETWEEN THE CITY OF FARMINGTON AND DICK'S SANITATION THIS SOLID WASTE / RECYCLING SERVICES AGREEMENT is made and entered into effective the 1st day of January, 2022 (the "Effective Date"), by and between the CITY OF FARMINGTON, a Minnesota Municipal Corporation organized and existing under the laws of the State of Minnesota (the "City") and DICK'S SANITATION SERVICE, INC., a Minnesota Corporation(s) ("DSI" or the "Contractor"). WITNESSETH A. WHEREAS,the City has found and determined that the public health and safety of the City will be promoted and preserved by establishing an arrangement for the collection, transportation, and disposal of solid waste kept and accumulated by residences and businesses within the City as defined in City Code Section 7-1-2; and B. WHEREAS,DSI is engaged in the business of collection and recycling of solid waste and is familiar with the requirements of the City and its solid waste services; and C. WHEREAS, the City has determined DSI to be qualified to carry out the terms of this Agreement upon the terms and conditions and for the consideration hereinafter provided: and NOW, THEREFORE, in consideration of the foregoing and the covenants, promises, undertakings,and obligations herein created,granted,and assumed,the parties hereto agree as follows: 1. DEFINITIONS 1.1. For purposes of this Agreement,terms not otherwise defined herein shall have the following meanings: 1.1.1. Affiliate: Any entity, directly or indirectly, through one or more intermediaries,controlling,controlled by,or under common control with the relevant party. 1.1.2. Bulky Wastes: Stoves,refrigerators,water heaters,washing machines and similar "white goods," bicycles, lawn mowers, lawn chairs, furniture and other waste material other than construction debris, or hazardous waste with weights or volumes greater than those allowed for bags or carts. Bulky household solid waste does not include electronic waste. 1.1.3. Collection: The aggregation of Municipal Solid Waste (MSW), Recyclables,Bulky Wastes, Organics and Yard Wastes from the place at SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 6 of 47 which they are generated including all activities up to the time they are delivered to a processing facility. 1.1.4. Cart: The wheeled, lidded container in which Solid Waste, Recyclable materials or Yard Wastes can be stored and placed for curbside collection. 1.1.5. City Administrator: The Farmington City Administrator or their designee. 1.1.6. City-Designated Solid Waste Disposal Facility: The facility designated by the City where DSI is required to deposit Trash and/or recyclables collected under this Contract. 1.1.7. Collection Vehicle:Any vehicle licensed and inspected as required by the state and county and approved by the City for solid waste collection within the corporate boundaries of the City. 1.1.8. Composting Facility: Facility licensed to process yard waste and/or source separated organics in conformance with state and local regulations. 1.1.9. Confidential/privileged: Information protected by privilege under applicable law and information which by its nature would reasonably be considered confidential or proprietary. 1.1.10. Contract: The City of Farmington service agreement for solid waste and recyclables collection services and as subsequently amended. 1.1.11. County: Dakota County,MN 1.1.12. Dwelling Unit: A building or portion thereof designed or used exclusively for residential occupancy as dwelling units. 1.1.13. Electronic Waste: Any discarded consumer electronic device with a circuit board including,but not limited to:televisions,computers,laptops, tablets, computer monitors, peripherals (e.g., keyboard, printer, mouse, etc.), cell phones, PDAs, DVD recorders/players and video cassette recorders/players,fax machines and other items as specifically referenced in Minnesota Statutes Section 115A.1310. 1.1.14. Hazardous Waste: Has the meaning prescribed in Dakota County Ordinance No. 110 Hazardous Waste means any refuse, sludge,spent solutions or other waste material or combinations of refuse, sludge, spent solutions or other waste materials in solid, semi-solid, liquid, or contained gaseous form which, because of its quantity, concentrations, or chemical,physical, or infectious characteristics may(a)cause or significantly contribute to an increase in mortality or an increase in serious irreversible or incapacitating reversible illness;or(b)pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of, or otherwise managed. Categories of hazardous waste materials include, but arenot limited to: explosives, flammables, oxidizers, poisons, irritants and SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 7 of 47 corrosives. Hazardous waste does not include source,special nuclear, or by-product material as defined by the Atomic Energy Act of 1954, as amended." 1.1.15. Holidays: There are six(6)major Holidays observed each year:New Year's Day,Memorial Day,Fourth of July,Labor Day,Thanksgiving Day, Christmas Day. 1.1.16. Mixed Municipal Solid Waste(MSW): Has the meaning prescribed in Dakota County Ordinance No. 110 : garbage, refuse, and other solid waste from residential, commercial, industrial, and community activities that the generator of the waste aggregates for collection but does not include auto hulks, street sweepings, ash, construction debris, mining waste, sludges, tree and agricultural wastes, tires, lead-acid batteries, motor orvehicle fluids and filters, and other materials collected, processed, and disposed of as separate waste streams." Also referred to in this contract as"Trash". 1.1.17. Non-Recyclable Paper.Non-recyclable paper includes,but is not limited to, paper napkins, towels, and tissues; paper plates and cups; food containers; paper bags and waxed paper (fast food wrappers, parchment paper,etc.);paper milk and juice cartons (remove plastic spouts-NO juice boxes or pouches); cardboard pizza boxes; boxes from refrigerated and frozen food and beverages; coffee filters (and grounds); and tea bags. 1.1.18. Multiple Unit Residential Dwelling: Any building consisting of more than three(3)Residential Dwelling Units. 1.1.19. Person: Includes any natural person, corporation, firm or association. 1.1.20. Pick-up(Stop):A collection of one or more containers from a Residential Single Dwelling. One pick-up may include more than one container or extra bag or bundle. 1.1.21. Premises: Any dwelling house, dwelling unit,building, and every other place or premises where any person resides, or a business is operated within the City. 1.1.22. Problem Material Waste: Waste that is too large to fit into a standard Trash cart and require special collection by DSI. Problem material waste includes (but is not limited to): furniture, appliances, mattresses, and bed springs. Problem material waste does include household electronic waste. 1.1.23. Recyclables:Has the meaning prescribed in Dakota County Ordinance No. 110: Materials that are suitable for separating from solid waste for the purpose of recycling including, but not limited to,paper, glass,plastics, metals, automobile oil, batteries, etc. Refuse derived fuel or other material that is destroyed by incineration is not a recyclable material.. For a more complete definition and list of recyclable materials,please see the Dakota County,Minnesota Designated List of Recyclables. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 8 of 47 1.1.24. Recyclables Pick-up: Each instance that recyclables are picked up at aResidential Dwelling Unit(RDU) or a commercial account. 1.1.25. Recyclables Processing Facility.Facility designed for centralized sorting, processing,and/or grading of collected recyclable materials for marketing. The facility will conform to all applicable rules, regulations and laws of state, local or other jurisdictions. 1.1.26. Residential Dwelling Unit(RDU):Any eligible,occupied dwelling having a kitchen occupied by a person or group of persons. 1.1.27. Residuals: Waste materials left after recovery of recyclables and/or the physical, chemical or biological processing of wastes. 1.1.28. Single Stream Recycling/Single Sort Recycling: The recycling system inwhich residents set out recyclables in one container without further sortingby residents, and the materials are later processed at a processing facility into their individual marketable commodities. 1.1.29. Solid Waste: Has the meaning prescribed in Dakota County Ordinance No. 110,which states: Solid Waste" means garbage, refuse, sludge from a water supply treatment plant or air containment treatment facility, and other discarded waste materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting from industrial, commercial, mining, and agricultural operations, and from community activities, but does not include hazardous waste, animal waste used as fertilizer, earthen fill, boulders, rock, sewage sludge, solid or dissolved material in domestic sewage or other common pollutants in water sources, such as silt, dissolved or suspended solids in industrial waste water effluents or discharges which are point sources subject to permits under section 402 of the federal Water Pollution Control Act, as amended, dissolved materials in irrigation return flows, or source, special nuclear, or by- product material as defined by The Atomic Energy Act of 1954, as amended. 1.1.30. Source Separated Organics (SSO): Has the meaning prescribed in Dakota County Ordinance No. 110,which states: Source Separated Compostable Material means materials that: 1. Are separated at the source by waste generators for the purpose of preparing them for use as compost; 2. Are collected separately from mixed municipal solid waste, and are governed by the licensing provisions of Minn. Stat. §115A.93; 3.Are comprised offood wastes,fish animal waste,plant materials, and compostable materials that meet the standards in ASTM D6400 and ASTM D6868 as incorporated by reference under Minn. Rule. 7035.0605; 4. Are delivered to a facility to undergo controlled microbial degradation to yield a humus-like product meeting the MPCA's class SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 9 of 47 I or class II, or equivalent, compost standards and where process residues do not exceed 15% by weight of the total material delivered to the facility; and 5. May be delivered to a transfer station, mixed municipal solid waste processing facility, or recycling only for the purposes of composting or transfer to a composting facility, unless the MPCA determines that no other person is willing to accept the materials. 1.1.31. Trash: See Mixed Municipal Solid Waste. 1.1.32. Volume-based charges: Charges that vary based on limits of MSW which a premise is permitted to dispose of,often measured by the Trash Cart size. Yard Waste: Has the meaning prescribed in Dakota County Ordinance No. 110,which states: "Yard Waste"means garden wastes, leaves, lawn cuttings, weeds, shrub and tree waste, and prunings generated at residential, commercial, or public properties. 2. TERM OF AGREEMENT 2.1. This Agreement shall commence on the Effective Date and remain in effect through December 31, 2026. 2.2. At the expiration of the initial contract term, the parties, upon mutual consent, may extend the contract for one (1) initial five (5) year term, and up to two (2) additional two year terms each under prices as may mutually be negotiated for the option years by delivering written notice of its intent to extend the term to DSI at least six(6)months prior to the expiration of the contract term. 2.3. Pursuant to Section 21, infra, The City reserves the right to terminate this Agreement for material breach by DSI subject to Section 19;provided,however, that DSI will be given written notice of such material breach and a thirty (30) business day period to cure before termination is effective. If said material breach is cured within the period, the termination will become null and void. Termination shall notaffect the City's right to make a claim against DSI or its Performance Bond for the damages on account for such a breach. 2.4. No assignment of any rights or obligations under this Agreement shall be made without written approval of the City Council and by mutual agreement of both parties,unless such assignment is to an affiliated entity or subsidiary of DSI. 3. GENERAL COLLECTION REQUIREMENTS 3.1. DSI is declared to be an Independent Contractor and nothing in this Agreement shall be construed to create the relationship of employer and employee between the City and DSI, its agents or its employees. 3.2. DSI shall furnish all labor and equipment as shall be necessary and adequate to insure satisfactory collection,transportation and proper separation and processing of the MSW, Recyclables, Bulky Wastes and Yard Wastes from all residential dwellings and businesses (Premises) in the City. All work to be performed hereunder shall be done so as to protect to the highest extent the public health and safety.DSI shall collect,transport and arrange or provide processing of all MSW, SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 10 of 47 Recyclables, Bulky Wastes and Yard Wastes from all Premises within the corporate limits of the City, as follows: 3.2.1. Licenses and Permits.DSI shall ensure at its own expense that all driver and truck licenses and permits are current and in full compliance with local,state and federal laws and regulations.Any Processing Facility used to handle MSW, Recyclables, Bulky Wastes and Yard Wastes from the City must have current permits and licenses and make the same available upon request by the City. 3.2.2. Compliance with Law. DSI shall comply with all Federal, State, County and City laws, regulations and local ordinances pertaining to the Collection and processing of Recyclables, Solid Waste and Yard Waste. 3.2.3. Frequency of Collection. MSW collection shall be weekly for each Premise.Recyclables collection shall be weekly for each Premise.Bulky Waste collection shall occur at least once every week for premises requesting the service from the City. Yard Waste collection shall be weekly during the season beginning on or about mid-April and continuing through mid-November, weather permitting and as needed. Residents shall place all Carts curbside no later than 7:00 AM on collection day. DSIshall furnish the City and all of its Premises with a written copy of theschedule of collection for each Premise. 3.2.4. Hours of Collection. Collection shall not start before 7:00 a.m. or continue after 5:00 p.m. on the same day. Exceptions to collection hours shall occur only by prior permission of the City. DSI shall request permission from the City for any exception first via telephone and then in writing(email to the City Administrator or designee is acceptable)with an explanation as to the reason for the exception. 3.2.5. Holidays. When a Holiday falls on the day that Collection will normally be made, each subsequent collection day will be delayed one day. It shall be DSI's responsibility to inform residents in a timely manner of any change in the collection schedule as a result of a Holiday. 3.2.6. Delays. DSI shall make every effort to maintain established scheduled pick-ups even though conditions such as weather may be adverse. In no event shall DSI be required or suffer penalty for failure to perform a scheduled pickup when prevented from doing so as the result of an undue accumulation of snow, unsafe driving conditions, and/or other circumstances beyond the reasonable control of DSI.. In such case, collection shall be made on the next day, if reasonably practicable. 3.2.7. Containers.DSI shall provide each residence with a Trash Cart,a clearly distinguished Recycling Cart and when requested by a subscribing customer, a Yard Waste Cart. The cost of providing the Cart is built into the rate of the Agreements and DSI may not charge additional fees for carts. DSI shall be responsible for the maintenance of the Carts and except in the case of abuse and/or misuse by a resident, shall replace damaged or broken Carts free of charge.Upon the termination of this Agreement, DSI shall collect all Carts at DSI's expense. Carts shall be handled with SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 11 of 47 reasonable care to avoid damage and are to be replaced in anupright position with the lids closed. 3.2.8. DoorstepNalet Collection. DoorstepNalet Collection rather than curbside or alley collection must be allowed for senior citizens and persons with decreased mobility for no additional charge with verification of need. 3.2.9. Missed Collections. In the case of alleged missed collections, DSI shall investigate,and, if such allegations are verified,DSI shall then arrange for the Collection of the subject materials no later than 4 p.m. the next business day. 3.2.10. Spills or Leaks. Any contents spilled or fluids leaked from the MSW, Recyclables,Bulky Wastes or the trucks shall be cleaned up immediately in a professional manner. If DSI fails to clean up any scattered or spilled material or leaked material or fluids within three hours after oral or written notice (email is acceptable) from the City, the City may cause such work to be done and deduct the reasonable cost thereof from any payments due and owing DSI, in addition to any other remedies provided herein. 3.2.11. City Property. DSI must provide Trash and Recyclables Collection, at no additional cost to the City, for the properties in Attachment A. Sizes of recyclable containers to be serviced by DSI and frequency of service will be determined by the City. The city may add or delete properties to this property list on an as needed basis. 3.2.12. Fees for Special Events.Cleanup fees and schedules for all special events or other services in the City Parks shall be negotiated between the party arranging the special events and DSI , provided, however, that DSIshall not have exclusive rights to provide service at these events and the parties arranging special events may contract for services with a hauler oftheir choice.DSI will provide containers,transportation and disposal for refuse and recycling at mutually agreeable City sponsored events without compensation. 4. COLLECTION EQUIPMENT AND PERSONNEL 4.1. Provision of Equipment. DSI shall provide all equipment necessary for Collection and transportation of collected Trash,Recyclables,Bulky Wastes and Yard Wastes. All trucks shall be maintained so the material being collected and transported will not be seen and will not blow, fall or leak from the vehicle and fluids will not leak from the trucks. 4.2. Maintenance of Equipment. DSI shall maintain equipment, used in the performance of this Agreement in a clean and sanitary condition and shall at all times operate such equipment in compliance with State law and City ordinances. 4.3. Compliance with Truck Road Weight Restrictions. It shall be DSPs sole responsibility to comply with all road weight restrictions. DSI shall immediately inform the City of any notices of exceeding such restrictions. The City retains the right to inspect and/or weigh DSPs trucks at any time. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 12 of 47 4.3.1. DSI shall be responsible to notify customers receiving service in alleyways that their service will be provided curbside when road weight restrictions are in effect. 4.4. Personnel. DSI shall retain sufficient personnel and equipment to fulfill therequirements and specifications of this Agreement. DSI`s personnel shall be trained both in program operations and in customer service,and DSI shall insurethat all personnel maintain a positive attitude with the public,and shall: 4.4.1. Conduct themselves at all times in a courteous manner and use no abusive or foul language. 4.4.2. Make a concerted effort to have at all times a presentable appearance and attitude. 4.4.3. Wear a uniform and employee identification badge or name tag. 4.4.4. Drive in a safe and considerate manner. 4.4.5. Manage Carts in a careful manner so as to avoid spillage and littering ordamage to the Cart. Carts shall not be replaced in the street and shall bereplaced in an upright position. 4.4.6. Monitor for any spillage or vehicle leaks and be responsible for cleaning up any litter,breakage or leaks. 4.4.7. Avoid damage to personal or City property. 4.4.8. Not perform their duties or operate vehicles while consuming alcohol or illegally using controlled substances or while under the influence of alcohol and/or such substances. 5. INSURANCE; INDEMNIFICATION 5.1. General Liability. DSI shall maintain Commercial General Liability insurance in a minimum amount of$5,000,000 per occurrence;$5,000,000 aggregate.The policy shall cover liability arising from premises, operations, products-completed operations, personal injury, advertising injury, and contractually assumed liability. The City, including its elected and appointed officials, employees, and agents, shall be endorsed as additional insured,to the extent such liabilities have been assumed by DSI hereunder. Such limits of liability may be satisfied through both primary and excess/umbrella policies, certificates of which will be provided to City upon written request. 5.2. Automobile Liability. DSI shall maintain Business Automobile Liability insurance,including owned,hired,and non-owned automobiles,with a minimum combined single liability limit of$5,000,000. 5.3. Workers' Compensation.DSI shall maintain Workers' Compensation insurance for all its employees in accordance with statutory requirements of the State of Minnesota. DSI shall also carry Employers' Liability Coverage with minimum limits as follows: 1,000,000—Bodily Injury by Disease per employee a $1,000,000—Bodily Injury by Disease aggregate 1,000,000-Bodily Injury by Accident SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 13 of 47 5.4. Pollution Liability Insurance.DSI shall maintain Pollution Liability insurance in a minimum amount of$1,000,000 per occurrence: $2,000,000 aggregate, for claims arising from the discharge, dispersal, release or escape of any irritant of contaminant into or upon land,any structure,the atmosphere,watercourse or body of water, including groundwater. This shall include on and off-site clean up and emergency response costs. 5.5. Certificate of Insurance. DSI shall, prior to commencing any services, deliver to the City Certificate of Insurance as evidence that the above coverages are in full force and effect. The insurance requirements may be met through any combination or primary and umbrella/excess insurance. DSI's policies shall be primary insurance and non- contributory to any other valid and collectible insurance available to the City with respect to any claim arising out of DSI's performance under this Agreement. DSI's policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty(30)day's advanced written notice to the City,or ten (10)days' written notice for non-payment of premium. 5.6. Performance Bond. DSI shall obtain a Performance Bond in the amount of 750,000 payable to the City for the use of said City. The Performance Bond shall be signed by DSI with a City-approved Surety Company as surety. The Performance Bond shall at all times be kept in full force and effect.The bond shall be filed with the City Administrator/Clerk or the designee. 5.7. Payments. DSI shall pay all bills or claims for wages, salaries and supplies, incurred in the operation of the collection service. The City has no obligation or responsibility for bills or debts incurred by DSI. 5.8. Indemnification. DSI shall defend, indemnify and save harmless the City from any and all claims and causes of action which may be asserted against the City to the extent caused by negligent act or negligent omission, or any misfeasance or malfeasance of DSI or its affiliates, employees or agents in connection with its performance under thisAgreement. DSI shall defend, indemnify,keep and save harmless the City and its respective officers,agents and employees against any or all suits or claims thatmay be based upon any injury or damage to persons or property that may occur, or that may be alleged to have occurred, to the extent caused by DSI or its affiliates, employees, or agents in the course of the negligent performance of this Agreement, and also any claims to the extent negligently caused by DSI or its affiliates, employees, or agents in connection with: 5.8.1. the Minnesota Environmental Response and Liability Act("MERLA") enacted in 1983: 5.8.2. its federal counterpart, the Comprehensive Environmental Response Compensation and Liability Act of 1980 as amended by the Superfund Amendments and Reauthorization Act("SARA"of 1986(together known as CERCLA): 5.8.3. any administrative rule or statue of Minnesota or any other State: 5.8.4. any common law theory of and other State or the United States: or 5.8.5. claims based upon the clean-up of abandoned or existing sites contaminated or allegedly contaminated with hazardous substances,if any SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 14 of 47 claims described in(a)through(e) are based upon solid waste transported from the City by DSI or his/her subcontractors or his/her or their agents or in connection with any claim based on lawful demands of subcontractor, work person,suppliers;and whether or not the persons injured or whose property was damaged were third parties, employees or DSI or employees of an authorized subcontractor;and DSI shall at his/her own expense defend the City in all litigation,pay all attorneys'feesand all costs and other expenses arising out of the litigation or claim or incurred in connection therewith;and shall,at his/her own expense, satisfyand cause to be discharged such judgments as may be obtained against theCity,or any of its officers,agents or employees. 6. MSW (TRASH) COLLECTION 6.1. Waste Removal. DSI shall provide for the removal of Trash from all Premises in the City. DSI shall offer its services to all residential dwellings and all businesses in the City, without exception, by written notice, describing service schedules and rates and Cart options. Such notice shall be delivered at least annually in a form and content approved by the City. 6.2. Refusal Notice.If any subscribing person places any items out for pickup and the item is not taken by DSI, DSI shall provide notification to the resident of reason(s)for refusal to pick up the item. 6.3. Carts. DSI shall make carts available to each Premise for Trash Collection. 6.4. Required Disposal.Pursuant to MN 115A.46 and 115A.471 all waste collected by DSI in the City shall be delivered to the transfer station, and transported to the Red Wing Resource and Recovery facility or as otherwise as approved by the City. 7. RECYCLABLES COLLECTION 7.1. Single Sort Recycling: DSI shall not require separation of Recyclables by type but shall permit City residents to aggregate all of their Recyclable Materials into the same Cart for collection by DSI. 7.2. Recyclables to be Collected: DSI shall collect at the List of Recyclables as determined by Dakota County in addition to those Recyclables for which it has found or developed markets. 7.3. Additional Recyclable Materials. After maximizing the use of their recycling Cart, residents who have a large amount of Cardboard or other Recyclables may bundle this material up and leave it beside the Recycling Cart for pickup and DSI shall pick up such additional Recyclables at its regular Collection time at no additional charge. Customers may request a second Recycling Cart at a cost not toexceed the approved rate schedule. 7.4. Ownership of Recyclables. All recyclables placed for Collection by residents shall remain the responsibility and ownership of the residents until picked up by DSI. The City requires that all collected Recyclables must be delivered to the Recycling Processing Facility;there shall be no scavenging of materials set out by residents. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 15 of 47 7.5. Changes to Collection System.DSI shall not make changes to the Single Stream Collection or processing system without written direction of the city. 7.6. Processing of Recyclables. DSI shall haul all collected Recyclables to a Recyclables Processing Facility or end market for sale or reuse, or to an intermediate collection center for later delivery to a Recyclables Processing Facility or end market. A weight ticket shall be received by DSI showing the tonnage of Recyclables collected within the City. Such invoice must be in a form sufficient to qualify the recyclables as having been properly processed for purposes of this Agreement. DSI may not transport the Recyclables to a mixed municipal solid waste disposal facility. DSI or its subcontractors shall not landfill,incinerate,compost or make fuel pellets out of the Recyclable Materials. All costs of transporting and depositing the Recyclables with the Recyclables Processing Facility or the end market shall be at the sole expense of DSI. 7.7. Recycling Revenue Sharing. DSI agrees to take all reasonable measures to maximize revenue from the sale of recyclable materials. If revenue from the sale of recyclables exceeds the cost to process recyclable materials DSI will refund 50%of the net proceeds to the City. 8. YARD WASTE COLLECTION 8.1. DSI shall provide separate yard waste collection as an additional service during the months of mid-April through mid-November,weather permitting.DSI shall be responsible for notifying customers of the beginning and end of yard waste season. 8.2. Yard waste shall be prepared as specified by DSI and shall be collected atcurbside on the same day as Trash collection. 8.3. Yard Waste may not be placed or collected in plastic bags,to comply with Minnesota Statute (M.S. 115A.931, Subd. (c)and M.S. 325E.046). 8.4. Yard waste service shall be made available on an annual subscription basis or on an on-call by the bag basis. DSI shall provide Yard Waste carts to subscription customers. Charges for yard waste services shall be in accordance with the approved rate schedule. 9. BULKY WASTE AND ELECTRONIC WASTE COLLECTIONS 9.1. DSI shall Collect Bulky Waste or Electronic Waste from Premises at the resident's request. Collection shall be made within one(1)calendar week of the request. 9.2. DSI shall provide Collection,processing and marketing or disposal services related to these bulky items and electronic waste. 9.3. DSI shall set their own price schedule for bulky item collection and provide Farmington customers a percentage discount as show in Attachment C. 9.4. The City's ordinance,nor this agreement shall be interpreted to preclude customers from obtaining service from other haulers for bulky waste. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 16 of 47 10. SOURCE SEPARATED ORGANICS (SSO) COLLECTIONS 10.1. DSI and the City agree to monitor the Dakota County Organics Drop site in Farmington. Should the City determine the need for a curbside collection program, DSI will work with the City to develop a SSO pilot program. 11. Public Education and Outreach 11.1. Education. DSI will assist in the distribution of educational materials in compliance with Dakota County educational requirements related to solid waste. This shall include, but is not limited to,two (2) education/outreach actions per year, which may include direct-mail pieces, Farmington specific recycling education advertising in the City of Farmington Newspaper of Record,literature drops at Premises, or other City-approved options. The method of distribution and content of materials shall be approved by the City in writing prior to distribution. Additional agreed upon education actions may be implemented, such as targeting new residents or recycling incentives programs. 11.2. Outreach. DSI will participate in public outreach events that may include,but are not limited to, annual education day coordinated with Farmington Schools, Earth Day activities, and the Farmington Community Expo. 12. COLLECTION REPORTS 12.1. Weight Records. DSI will keep accurate records of the weights and types of recyclables collected in the City. Collected recyclables will be weighed after completion of a route or at the end of the day,whichever occurs first,on a certified scale. All recyclables and MSW collected in the City shall be weighed separately from recyclables and MSW collected in other geographic subdivisions.A copy of each weight ticket for separated recyclables and for MSW shall be kepton file, as shall records of facilities that the recyclables are taken to and the recyclable markets used for recyclables generated in the City and/or amount of City recyclables stored by those facilities. 12.2. DSI shall participate with the City in tests such as waste sorts to confirm the methodology and accuracy of the above data for weights of MSW and recyclables or to identify opportunities to increase recycling. 12.3. Quarterly Reports. Upon request, DSI will submit quarterly reports to the City. Reports shall be due to the City by the fifteenth(15th)day of April,July, October and January. DSI is encouraged to include in its reports recommendations for continuous improvement in the City's recycling program (e.g.,public education, business recycling, etc.). DSI agrees to make one annual report at a City Council meeting. At a minimum,DSI shall include the following information in these reports: A. Total tons of recyclables and MSW collected. "Total tons" is defined as the combined number of tons recorded from the total actual recyclable and MSW pick-ups (stops) recorded for each of the three (3) months of the reporting quarter. B. Method used to collect and report total quantities of recyclables and MSW SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 17 of 47 collected. C. Available pick-ups(stops). "Available pick-ups"is defined as the number of residential accounts billed for each of the three (3) months of the reporting quarter. D. Total number of MSW pick-ups(stops),"defined as the combined number of actual MSW pick-ups recorded for each of the three (3) months of the reporting quarter. E. Total number of Recycling Pick-ups (stops) made, defined as the combined number of actual Recycling pick-ups recorded for each of the three(3)months of the reporting quarter. F. Total number of Bulky Waste Pick-ups made, and Total number of Electronics Waste Pick-ups made, defined as the combined number of actual pick-ups recorded for each of the three(3)months of the reporting quarter. G. Total number of Yard Waste Pick-ups made, defined as the combined number of actual Recycling pick-ups recorded for each of the three(3) months of the reporting quarter. H. Log of all complaints,including the nature of the complaints,to include the following: 1. Names, addresses, and contact numbers of the complainants; 2. The date and time received; 3. DSI`s response; and the date and time of the response. 4. Log of addresses of premises that did not put out recyclables containers that month. I.Education materials provided to City residents that quarter. J.Suggestions for improvements to the City's recycling program. 12.4. Monthly Reports.Upon request,DSI shall also submit a report monthly in compliance with Section 14.3,Customer Service. 12.5. Access to Records. DSI shall provide to the City during normal business hours, reasonable access to non-confidential/non-privileged records to include books, documentation,papers, weigh tickets and other records that are directly pertinent to the required reports required by this Agreement.DSI shall document and retain dated market weight receipts of recyclable materials sold for the last three years,which upon request will be made available to the City for review. 12.6. The City may request and DSI must provide in electronic format;the name,address, phone number,email and service level(s)for each premises in the City. 13. BILLING 13.1. Billing. DSI shall collect all charges from each Premise for its Collection services. 13.2. Contracts for Additional Collections. DSI may, independently of this SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 18 of 47 Agreement,contract with any premise to collect Trash or Solid Waste excluded from the mandatory Collection by the Agreement. DSI 's charge for the servicesshall be listed in Attached Exhibit A,subject to change with the written approvalof the City. If the Collection is not listed, the price shall be negotiated between DSI and the customer. 13.3. Delinquent Accounts. DSI may handle delinquent accounts in the same manner as its other customers. This may include suspension of service. DSI shall provide notice when it has suspended service on an account. 13.4. Extended Leave Discontinuance. A Premise can obtain a discontinuance of service of more than a month but less than six months for an extended leave or vacancy. There shall be no charge for suspending service. 13.5. Collection Fees. Volume/weight-based Trash fees must be offered to each Premise (MN§I15A.93 subd.3). The rate that DSI shall charge will be in accordance with the approved rate schedule. Other rates not included in the rate schedule in Attachment C shall be mutually agreed upon. 13.6. Rate increase. City or DSI may propose amendments to the rate schedule before September 15 of any given year for the next calendar year. The parties shall enter into negotiations in good faith and any new rate changes shall be reduced to writing in the form of an amendment to this Agreement. Rate increases may not take effect during a billing cyclefor any customer.Rate increases must take effect on the next billing cycle after the rate increase is approved. 13.7. Late fees. DSI will charge no more than $10.00 per month in late fees, with the maximum amount of late fees due and owing at any given time capped at$30.00. DSI agrees to make good faith efforts to reduce or eliminate late fees by utilizing payment plans, grace periods, etc.... 14. INDEPENDENT CONTRACTOR 14.1. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating, or establishing the relationship of employer/employee between the parties.DSI shall,at all times,remain an independent contractor with respect to the services to be performed under this Agreement. Any and all employees of DSI or other persons engaged in the performance of any work or services required by DSI under this Agreement shall be considered employees or subcontractors of DSI only and not of the City; and any and all claims that mightarise, including worker's compensation claims under the Worker's Compensation Act of the State of Minnesota or any other state,on behalf of said employees or other persons while so engaged in any of the work or services provided to be rendered herein,shall be the sole obligation and responsibility of DSI. 15. CUSTOMER SERVICE REQUIREMENTS 15.1. Complaints. DSI shall provide staffing of a telephone equipped office to receive missed Collection complaints and other complaints between the hours of 7:30 a.m. until 5:00 p.m. Monday through Friday. DSI shall have an answering machine or voice mail system activated to receive phone calls after hours. The SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 19 of 47 address and telephone number of the office shall be given to the City in writing, with ten(10)days prior notice of a change therein.DSI shall also allow complaints to be made electronically(by e-mail). 15.2. Immediate Complaint Response. Complaints on service will be taken and collected solely by DSI. The City shall route all customer service calls it receives regarding solid waste operations to DSI. DSI is responsible for corrective actions. DSI shall answer all complaints courteously and reasonably promptly. 15.3. Monthly Customer Service Report to City. Upon request, each month DSI shall provide the City with a report of all customer complaints,the nature of these complaints and a description of how each complaint was resolved. The names of the complainants and contact numbers or e-mail addresses must also be included. 15.4. Failure to Perform. Subject to any other provision herein, in the event DSI fails to collect the MSW, Recyclables, Bulky Wastes, and Yard Waste as required by this Agreement, the City may,at its option,hire such labor and equipment as may be necessary to collect and dispose of such MSW, Recyclables and Yard Waste after DSI is given five(5)business days to remedy the situation. The City may,at the City's sole option, terminate this Agreement in accordance with Article Eighteen (18). In the event remedy does not occur, DSI shall reimburse the City for all reasonable collection expenses the City incurs above and beyond the amounts the City is obligated to pay for such collection under this Agreement or the City shall utilize the Performance Bond for such expenses. 15.5. Location of Customer Service Center. DSI agrees to ensure their customer service center is co-located with their primary operations center(the operations location primarily servicing Farmington) for the duration of this contract. 16. SPECIAL CONDITIONS 16.1 Cardboard Dumpster at City Facilities. DSI agrees to maintain dumpsters for cardboard recycling for public use at a location to be determined by the City, at no cost to the City. The size, number and frequency of collection for this dumpster shall be determined by the City and may be dependent upon seasonal needs (i.e.holiday season may require additional collection or containers). 16.2 Routing and Collection Schedules. The City must approve all routing and collection schedules.DSI may propose routing and collection changes from time to time as becomes necessary or apparent for efficient collection.DSI is required to communicate routing and collection changes to customers. 16.3 Christmas Tree Collection.DSI agrees to provide Christmas tree collection for bare Christmas Trees (lights, ornaments,tinsel, etc.... removed) during the first two weeks of each year.Fees for Christmas tree collection will be in accordance with the approved rate schedule. Customers with subscription yard waste service shall receive Christmas tree collection included in the cost of subscription yard waste. 16.4 Farmington Specific Webpage and Social Media. DSI agrees to maintain a webpage on their website with information specific to Farmington residents. DSI also agrees to, upon request, establish Farmington specific social media SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 20 of 47 page(s)todistribute information to Farmington residents. 16.5 Contact information. DSI agrees to provide contact information to the City of Farmington for the following: at least one employee of DSI authorized to manage operational issues that arise, at least one employee of DSI authorized to managecustomer service issues as they arise, at least one employee of DSI authorized toresolve contract related issues as they arise. 16.6 Park Recycling. DSI and the city agree that DSI will provide for the necessary labor,equipment and processing at no charge to the city for recycling in the city's parks. This section extends to any city park land the city deems to be eligible for recycling services.Recycling in parks is expected to be a joint effort between the city and DSI to ensure that usage is sufficient to merit recycling in a given park, that the recyclable loads collected in parks are "clean" and that recycling receptacles are accessible to DSI on a curbside basis. 17. Purchase of City Assets 17.1 Refuse Cart Ownership. DSI agrees to purchase from the City all refuse carts owned by the city as detailed on Attachment B. The City shall provide a bill of sale documenting such purchase no later than December 31, 2021. Notwithstanding the foregoing, if City early terminates this Agreement prior to expiration of the term then City agrees to buy-back such carts for a purchase price of$10.00 and DSI shall provide a bill of sale for such buy-back no later than thirty days following such termination. 17.2 Vehicle and Equipment Ownership.If applicable, DSI agrees to purchase from the City the vehicles and equipment owned by the City as detailed on Attachment B. The City shall provide ownership documents and any existing/extended warranty documents to DSI upon receiving payment no later than December 31, 2021. 17.3 As is.Assets are being transferred on an"AS IS" basis. City disclaims any and all warranties, express or implied, regarding the assets, including,but not limited to,their physical condition, and makes no warranty or merchantability or fitness of the assets for any particular purpose, express or implied.DSI releases City from any and all claims at law or equity regarding the acquired assets and their physical condition,merchantability, or fitness for any particular purpose. 18. ASSIGNMENT AND SUBCONTRACTING 18.1. DSI shall not assign or subcontract except to affiliates of the Contractor this Agreement or any interest therein or any privilege or right granted therein without the prior written consent of the City. Consent to one assignment or subcontract shall not be deemed to be consent to any subsequent assignment or subcontract. 19. MISCELLANEOUS 19.1. Liquidated Damages. Subject to any other provision herein, including the requirement to provide DSI notice and an opportunity to cure, DSI agrees, in addition to any other remedies available to the City, that the City may withhold SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 21 of 47 payment from DSI in the amounts specified below as liquidated damages for failure of DSI fulfilling its obligations: 19.1.1. Failure to respond to legitimate service complaints within 24 hours in areasonable and professional manner—fifty dollars ($50)per incident. 19.1.2. Failure to collect properly notified missed collections—two hundred and fifty dollars ($250)per incident. 19.1.3. Failure to provide monthly and/or annual reports or requested data—one hundred dollars ($100)per incident. 19.1.4. Failure to complete the collections within the specified timeframes without proper notice to the City—one hundred dollars($100)per incident. 19.1.5. Failure to clean up spills during collection operations—two hundred fifty dollars ($250)per incident. 19.1.6. Failure to report on changes in location of Recyclables Processing operations two hundred fifty dollars ($250)per incident. 19.1.7. Failure to collect Farmington's List of Standard Recyclables within one month of notification of a change to the List one hundred dollars($100) per week of non-collection. 19.1.8. Failure to maintain current County licenses to haul MSW,Recyclables, Organics,Bulky Wastes or Yard Waste five hundred dollars($500)per day. 19.1.9. Notwithstanding anything in the foregoing, the City shall have a maximum of sixty (60) days to raise the failure of DSI's obligations, by written notice to DSI. In the event such failure is not timely raised, the City waives the right to impose such Liquidated Damages. 19.2. Waiver.The waiver by the City of any breach or violation of any term covenant, or condition of this Contract shall not be a waiver of any subsequent breach or violation of the same or any other term, covenant, or condition hereof. 19.3. Binding Effect.The terms, covenants,and conditions of this contract shall apply to, and shall bind and inure to the benefit of the parties, their successors, and assigns. 19.4. Data Practices. DSI agrees to comply with the Minnesota Government Data Practices Act and all other applicable state and federal laws relating to data privacy or confidentiality. DSI must immediately report to the City any requests for third parties for information relating to this Agreement. The City agrees to promptly respond to inquiries from DSI concerning data requests. DSI agrees to hold the City,its officers,and employees harmless from any claims resulting from DSI`s unlawful disclosure or use of data protected under state and federal laws. 19.5. Force Majeure: Whenever a period of time is provided for in the Contract for either the City or DSI to so or perform any act or obligation,neither parry shall be liable for any delays or inability to perform due to causes beyond the control of said party such as war, riot, unavoidable casualty or damage to personnel, materials or equipment, fire, flood, storm, earthquake,tornado or any act of God, SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 22 of 47 but not strike or lockout. The time period for the performance in question shall be extended for only the actual amount of time said party is so delayed. 19.6. Excluded Waste:Notwithstanding anything herein to the contrary:(a)Contractor shall have no obligation to collect any material which is or contains, or which Contractor reasonably believes to be or contain, radioactive, volatile, corrosive, highly flammable, explosive, biomedical, infectious, biohazardous, toxic or hazardous material as defined by applicable federal, state or local laws or regulations ("Excluded Waste"); (b) if Contractor finds what reasonably appears to be discarded Excluded Waste,Contractor shall promptly notify the City and the producer of the Excluded Waste, if the producer can be readily identified; and(c) title to and liability for any Excluded Waste shall remain with the producer of the Excluded Waste, even if Contractor inadvertently collects or disposes of such Excluded Waste. Bulky Wastes, Electronic Waste, Mixed Municipal Solid Waste, Problem Material Waste, Recyclables, Source Separated Organics, Solid Waste, and Trash all exclude Excluded Waste. 19.7. The City and residents must comply with any description of and/or procedures with respect to removal of contaminants or preparation of recyclable materials and organic materials as reasonably provided by Contractor. If the City fails to do so, they shall not be considered Recyclables or Source Separated Organics, as applicable, and Contractor may decline to collect such materials without being in breach of the contract. Contractor shall not be responsible for and has not made any representation regarding the ultimate recycling of Recyclables by any third party facilities. 19.8. The rights granted to Contractor under the contract shall be exclusive. The City may, in its sole discretion, enforce the exclusivity provisions of the contract against third-party violators, taking into account the cost of doing so and other factors. Contractor may independently enforce the exclusivity provisions of the contract against third-party violators, including, but not limited to, seeking injunctive relief and/or damages, and the City shall use good-faith efforts to cooperate in such enforcement actions brought by Contractor. The City shall use its best efforts to adopt ordinances, rules or regulations that have the effect of requiring third parties, including, without limitation, customers, to comply with the provisions of the contract, including,without limitation,the exclusive service rights granted to Contractor pursuant to the agreement. 19.9. Notwithstanding anything herein to the contrary, to the extent supplied by Contractor,in the event that a waste container becomes lost,unsightly,unsanitary, broken,or unserviceable because of the acts or omissions of the City or a resident excluding normal wear and tear), the City or relevant customer will be charged for the resulting repairs or replacement and such amounts will be paid to Contractor upon demand. 19.10. Any equipment furnished hereunder by Contractor shall remain the property of Contractor; however, the residents and the City (as applicable) shall have care, custody and control of the equipment while at the service locations. Residents shall not alter the equipment and shall use the equipment only for its proper and intended purpose.Residents and the City must provide unobstructed access to the equipment on the scheduled collection day.The word"equipment"as used herein SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 23 of 47 shall mean all containers used for the storage of non-hazardous solid waste. 19.11. Notwithstanding anything herein to the contrary,Contractor may pass through and the customers shall pay to Contractor any documented increases in disposal fees, increases in Contractor's costs due to changes in local, state or federal rules, ordinances or regulations applicable to Contractor's operations or the services provided hereunder, and any increases in and newly imposed taxes, fees or other governmental charges assessed against or passed through to Contractor (other than income or real property taxes). 19.12. City warrants that the Residents' and City's pavement, curbing or other driving surface or any right of way reasonably necessary for Contractor to provide the services described herein are sufficient to bear the weight of all of Contractor's equipment and vehicles reasonably required to perform such services. Contractor will not be responsible for damage to any such pavement,curbing,driving surface or right of way, and City agrees to assume all liabilities for any such damage, which results from the weight of Contractor's vehicles providing service at Residents' and City's location. 20. PERFORMANCE REVIEW Upon receipt of Contractor's annual report,the City shall schedule an annual meeting with Contractor. The objectives of this annual meeting will include(but not be limited to): 20.1. Review DSI's annual program and material report. 20.2. Review efforts DSI has made to expand participation in the waste diversion programs (Recycling, SSO, Yard Waste). 20.3. Review DSI's performance based on feedback from customers to City staff. 20.4. Review Contractor's recommendations for improvements to the City's program, including enhanced public education and other opportunities. 20.5. Review staff recommendations for improving DSI's service. 20.6. Discuss other opportunities for improvement in the remaining years of the current Agreement. 21. TERMINATION The City may terminate this Agreement if DSI fails to fulfill its obligations under the Agreement in a proper and timely manner, or otherwise violates the terms of the Agreement if the default has not been cured after thirty (30) days written notice has been provided. The City may also terminate this Agreement immediately if DSI fails to maintain County permits requiredto collect and transport MSW, Recyclables, Source Separated Organics or Yard Waste. The Cityshall pay DSI all compensation earned prior to the date of termination minus any damages and costs incurred by the City as a result of the breach. If the Agreement is cancelled or terminated, all finished or unfinished documents, data, studies, surveys, maps, photographs, reports or other materials prepared by DSI under this Agreement shall, at the option of the City, become the property of the City,and DSI shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 24 of 47 IN WITNESS WHEREOF,the parties have hereunto executed this Agreement,by their officers,as of the day and year first above written. CITY OF FARMINGTON DICK'S SANITATION SERVICE,INC. Bye--- By Jos—&ua Hoyt,M r L By. David McKnight, Administrator STATE OF MINNESOTA SS. COUNTY OF (,c c v ) Subscribed and sworn to before me by Ile y't and HcL,v'j re- ,respectively,the Mayor and City Administrator of the City ofa MinaMtnensotamunicipalcorporationthis 5` 1" Day of,tfe, n.6N- ,20 7MMAAMULLERS NOTARY PUBLIC MINNESOTA Nofary Public My COmm45ion Expires Jen 31,2025 STATE OF MINNESOTA SS. COUNTY OFL `J ' (ice! Subscribed and sworn to before me on behalf of DSI by al's,& T( i p I the 4n(--- jMOK of DSI ,a Minnesota corporation(Title) this t N\ Day of K)t tUA- 2Q-Ll SUSAN J WMER NOTARY PUBLIC MINNESOTA My Commissian Expires Jam 31,2025 Notary Public F SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 25 of 47 Attachment A City Facilities This list is provided for reference. The city and DSI both recognize that there will be changes atthe discretion of the city in service locations, service size and frequency depending on need anduse of facilities. Seasonal collections shall be April—November each year, as determined by weather and use. Facility and Location Type of Service&Estimated Service Level City Hall Trash: 1 300 gallon 2x/wk Tu&F 430 Third Street Recycling:2 yards lx/wk Organics: 195 gallons EOW Rambling River Center Trash: 1 300 gallon 2x/wk Tu&F 325 Oak Street Recycling:2 95 gallons EOW Organics: 195 gallons lx/mo Maintenance Facility Trash: 1 300 gallon 2x/wk Tu&F 19650 Municipal Drive Recycling: 4 yards lx/wk Police Station Trash: 1 300 gallon 2x/wk Tu&F 19500 Municipal Drive Recycling:4 yard EOW Fire Station#1 Trash: 1 300 gallon lx/wk W 21625 Denmark Avenue Recycling: 195 gallon EOW Fire Station#2 Trash: 1 300 gallon lx/wk W 19695 Municipal Drive Recycling: 195 gallon EOW Schmitz-Maki Arena Trash: 1 300 gallon 3x/wk M/W/F(changes 114 Spruce Street seasonally) Recycling:2 yards EOW Organics:temporarily discontinued Rambling River Park Trash:2 300 gallons 2x/wk M&Th 17 Elm Street Recycling:n/a Feely Fields Trash: 3 300 gallons 2x/wk M&Th 21250 Denmark Avenue Recycling:n/a Liquor Store north Trash:2 300 gallons M&Th 18350 Pilot Knob Recycling: Liquor Store#1 Trash:2 300 gallons M&Th 923 8`h Street Recycling: 6 yards 2x/wk SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 26 of 47 Attachment B Transition of Assets Description of Asset Purchase Price 2006 Perterbilt 320 with Rapid Rail 50,000.00 2008 Perterbilt 320 with Rapid Rail 50,000.00 2014 Perterbilt 320 with Rapid Rail 127,500.00 2017 Perterbilt 320 with Rapid Rail 170,000.00 2019 Autocar with Labrie Automizer 210,000.00 Carts—35 Gallon 20,000.00 1,000 carts @$20.00 per cart Carts—65 Gallon 56,325.00 2,500 carts @$22.53 per cart Carts—95 Gallon 91,278 3,300 carts @$27.66 per cart Total Assets 775,103.00 SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 27 of 47 Attachment C Rates and Charges Residential Service Rates Monthly Pricing Cart Size 2022 2023 2024 2025 2026 Trash service weekly 35 Gallon $ 14.82 $ 15.26 $ 15.72 $ 16.19 $ 16.68 Trash service weekly 65 Gallon $ 19.78 $ 20.37 $ 20.98 $ 21.61 $ 22.26 Trash service weekly 95 Gallon $ 24.28 $ 25.01 $ 25.76 $ 26.53 $ 27.33 Recycle Service weekly 35 Gallon $ 7.25 $ 7.47 $ 7.69 $ 7.92 $ 8.16 Recycle Service weekly 65 Gallon $ 7.25 $ 7.47 $ 7.69 $ 7.92 $ 8.16 Recycle Service weekly 95 Gallon $ 7.25 $ 7.47 $ 7.69 $ 7.92 $ 8.16 Quarterly Pricing Trash&Recycling Weekly 35 Gallon $ 66.21 $ 68.20 $ 70.24 $ 72.35 $ 74.52 Trash&Recycling Weekly 65 Gallon $ 81.09 $ 83.52 $ 86.03 $ 88.61 $ 91.27 Trash&Recycling Weekly 95 Gallon $ 94.59 $ 97.43 $ 100.35 $ 103.36 $ 106.46 Optional Seasonal Yard Waste 195 Gallon 1 $ 129 1 $ 133 $ 137 $ 141 1 $ 145 Commercial Service Rates Container Monthly Pricing Size 2022 2023 2024 2025 2026 Trash service weekly 1 yd 51.13 $52.66 $54.24 $55.87 $57.54 Trash service weekly 1.5 yd 72.52 $74.70 $76.94 $79.25 $81.63 Trash service weekly 3 yd 125.68 $129.45 $133.33 $137.33 $141.45 Trash service weekly 4 yd 178.83 1 $184.19 $189.72 $195.41 $201.27 Trash service weekly 6 yd 231.98 1 $238.94 $246.11 $253.49 $261.10 Trash service weekly 8 yd 285.13 $293.69 $302.50 $311.57 $320.92 Trash service weekly 10 yd $338.29 $348.44 $358.89 $369.65 $380.74 Quarterly Pricing Trash service weekly 1 yd 153.38 $157.98 $162.72 $167.60 $172.63 Trash service weekly 1.5 yd $217.57 $224.10 $230.82 $237.74 $244.88 Trash service weekly- 3 yd 377.03 $388.34 $399.99 $411.99 $424.35 Trash service weekly 4 yd 536.49 1 $552.58 $569.16 $586.24 $603.82 Trash service weekly 6 yd 695.95 $716.83 $738.33 $760.48 $783.30 Trash service weekly 8 yd 855.40 $881.06 $907.49 $934.72 $962.76 Trash service weekly 10 yd $1,014.86 $1,045.31 $1,076.66 $1,108.96 $1,142.23 SOLID WASTE SERVICES AGREEMENT City of Farmington,MinnesotaPage 28 of 47 Commercial Service Rates (Cont.) Container Monthly Pricing Size 2022 2023 2024 2025 2026 Recycling service weekly 1 yd 35.79 $36.86 $37.97 $39.11 $40.28 Rec clin service weekly 1.5 yd 50.77 $52.29 $53.86 1 $55.47 $57.14 Recycling service weekly 3 yd 87.97 $90.61 $93.33 $96.13 $99.02 Recycling service weekly 4 yd 125.18 $128.94 $132.80 $136.79 $140.89 Recycling service weekly 6 yd 162.39 $167.26 $172.28 $177.45 $182.77 Rec clin service weekly 8 yd 199.59 $205.58 $211.75 $218.10 $224.64 Recycling service weekly 10 d 236.80 $243.90 $251.22 $258.76 $266.52 Quarterly Pricing Recycling service weekly 1 yd 107.37 $110.59 $113.90 $117.32 $120.84 Recycling service weekly 1.5 yd 152.30 1 $156.87 $161.57 $166.42 $171.41 Recycling service weekly 3 yd 263.92 $271.84 $279.99 $288.39 $297.05 Recycling service weekly 4 yd 375.54 $386.81 $398.41 $410.37 $422.68 Recycling service weekly 6 yd 487.17 $501.78 $516.83 $532.34 $548.31 Recycling service weekly 8 yd 598.78 $616.74 1 $635.25 $654.30 $673.93 Recycling service weekly 10 yd 710.40 $731.71 1 $753.67 $776.28 $799.56 Other Charges Trip Charge: $15 per trip Extra Bag Charges*: $5 minimum charge,$2.50 per bag. Container Replacement Charge(customer caused damage): $55 Bulk Item Discount: 9% Rates do not include MN Tax on trash-Residential 9.75%,Commercial 17.00% SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 29 of 47 Page 30 of 47 Page 31 of 47 Page 32 of 47 Page 33 of 47 Page 34 of 47 Page 35 of 47 Page 36 of 47 Page 37 of 47 Page 38 of 47 Page 39 of 47 Page 40 of 47 Page 41 of 47 Page 42 of 47 R - Analysis of Waste Collection Service Arrangements.doc Foth Infrastructure & Environment, LLC • 3 June 2009 2 Literature Review This section provides a summary of pertinent literature regarding residential waste and recyclable materials collection arrangements, and past and current efforts to establish organized collection arrangements within Minnesota municipalities and counties. The section includes: ♦ A summary of the primary issues related to municipal waste and recyclable material collection services in open collection and organized collection systems for residential generators including the commonly identified advantages and disadvantages of each system. ♦ Information from areas outside of Minnesota related to open collection and organized collection systems such as the occurrence of each and efforts to organize in other communities. ♦ Experience of Minnesota cities with the Organized Collection statutes. ♦ Literature research information available on issues such as cost and pricing of services, volume based pricing and waste generation, associated performance and results of open collection and organized collection arrangements, transportation costs, research or information regarding infrastructure costs to roads and bridges, externalities such as air pollution, accidents and safety. ♦ A summary of position of various interest groups such as National Solid Wastes Management Association (NSWMA), representatives from Minnesota Counties, the League of Minnesota Cities, and other professional organizations 2.1 Commonly Identified Advantages/Disadvantages of Types of Collection Systems There are several characteristics of open and organized collection systems that have been routinely identified in different communities as potential advantages or disadvantages for each. The advantages are sometimes referred to as potential benefits and the disadvantages as potential issues/concerns. These are highlighted in the next subsection with some covered in more detail in the following subsections. Generally, the proponents of organized collection include cities, counties, and state solid waste management officials. Proponents of open collection systems are primarily private waste management companies including both the larger, national companies as well as local, independent haulers. Proponents of open systems also include residents desiring to retain the ability to choose their waste hauler. 2.1.1 Open Systems A comparison of the advantages (potential benefits) and disadvantages of open collection systems is shown in Table 2-1. Page 43 of 47 4 •Foth Infrastructure & Environment, LLC R - Analysis of Waste Collection Service Arrangements.doc June 2009 Table 2-1 Advantages/Disadvantages of Open Collection Systems Advantages Disadvantages ♦ Choice – Households are free to continue to choose their hauler based on preference ♦ There is a direct relationship between the hauler and the customer that allows the customer to shop around or change if dissatisfied ♦ None to very minimal administrative costs or burdens for public entities ♦ Small haulers are more apt to compete for a portion of the accounts – entry level requirements for new businesses is low ♦ Haulers are more likely able to shop for lower disposal prices or use their own facilities ♦ Usually results in a more expensive monthly cost ♦ Results in more truck traffic with potential associated impacts of:  Added street maintenance  Air quality/vehicle emissions  Safety/vehicle accidents  Aesthetics (containers out more days of the week), noise, and litter ♦ Inconsistent charges for the same level of service in a community, even among customers of the same hauling company ♦ Reduced ability of the community to effectively manage solid wastes ♦ Haulers switching from one landfill to another due to price results in exposure to liability at more sites The primary advantage cited for open systems is the ability for people to choose their own hauler. There is a direct relationship between the individual customers and service provider that may supersede any other potential benefit. The customer is in control, making the decision to hire whoever is providing service in the community. The choice may be a matter of family relationships, tradition, past experiences of inadequate service, price, etc. Open systems typically result in less administrative effort for the public entity, but also result in less overall control of the solid waste management system (less control on where waste is disposed, service levels, and diversion levels). Open systems may be better suited to smaller or start up businesses as the requirements for equipment and employees are controlled by the individual hauling company rather than set by the public entity contract. While there can be variations in pricing, the price paid by households in open systems is typically higher per month for similar service levels. This is primarily due to the increase in efficiency for haulers in organized collection systems serving every household in the community or on a route rather than driving by households served by other hauling companies. Also, in open systems where a particular hauling company is successful in gaining a predominant market share, there is less reason for the hauling company to pass on the improved efficiency to customers. The hauling company may increase its profitability in that specific community. Page 44 of 47 R - Analysis of Waste Collection Service Arrangements.doc Foth Infrastructure & Environment, LLC • 5 June 2009 Open systems result in more truck traffic on the residential streets as each company uses their collection vehicles to service customers. The increased truck traffic leads to increased concerns regarding the impact on streets and the potential for increased truck emissions, traffic accidents, and aesthetic issues. Open systems are more likely to allow haulers to find the lowest cost disposal option (including transportation costs), but this also results in exposure to liability at more than one location. Open systems also are more likely to allow certain waste hauling companies to internalize wastes to their own transfer stations and/or landfills. This improves their competitive advantage for hauling customers versus haulers who do not have their own transfer or disposal facilities. 2.1.2 Organized Systems A comparison of the advantages (potential benefits) and disadvantages of organized collection systems is shown in Table 2-2. Page 45 of 47 6 •Foth Infrastructure & Environment, LLC R - Analysis of Waste Collection Service Arrangements.doc June 2009 Table 2-2 Advantages/Disadvantages of Organized Collection Systems Advantages Disadvantages ♦ Increased efficiency enabling a lower cost per household ♦ Households do not have a choice of their hauler ♦ Decreased impacts from truck traffic ♦ Decreased fuel consumption ♦ Greater administrative involvement by the public entity ♦ Greater control to establish service requirements including:  Ability to standardize service makes public education simpler  Ability to provide access to special service needs at known, controlled costs  Volume-based pricing to achieve waste abatement goals  Delivery destinations for processing and overall solid waste management  Factors affecting recycling and diversion such as variable rate pricing  Improved control over residents actually using garbage service  Ability to set specifications on the size and quality of trucks used ♦ Small haulers have higher “entry” requirements to get in the business along with competitive opportunities limited to contract openings ♦ Current organized collection statutory process to convert from open to organized is cumbersome and difficult politically ♦ Ability to competitively bid service on a regular basis helping promote lower costs ♦ Can be used to generate revenues to support other services The primary potential advantages of organized collection are three-fold – lower prices, reduced truck traffic, and community control over decisions related to waste management. There are several factors involved in each of these three primary advantages. Greater efficiency, competitive bidding, rate increases structured into contracts, and variable rate pricing options can all result in more cost effective service provision. Fewer trucks stopping at every house results in less truck traffic at slower speeds. Public entities have responsibility and potential liability for proper solid waste management and organized collection provides better tools and control of decisions that affect solid waste management. The primary disadvantage is the loss of individual household control over the selection of a hauler and the associated direct relationship. Along with increased control for the public entity comes the requirement to provide the resources necessary to properly manage the decisions. Page 46 of 47 R - Analysis of Waste Collection Service Arrangements.doc Foth Infrastructure & Environment, LLC • 7 June 2009 Also, it may be more difficult for smaller haulers and entry level companies to break into and grow their business in organized collection systems. 2.2 Occurrence of Each Type of Collection System Studies have been conducted to try and determine the prevalence of open collection systems and organized collection systems both locally and nationally. The following subsections present the findings from studies completed locally (in Minnesota), in Iowa, Colorado and one study completed across the United States and Canada. The findings show that there are variations in the prevalence of types of collection systems. 2.2.1 Minnesota 2.2.1.1 Eden Prairie In 2005, the city of Eden Prairie compiled a report titled “Report on Residential Municipal Solid Waste Collection.”1 The report surveyed 108 cities in the Twin Cities metropolitan area and provided a breakdown of their garbage and recycling collection systems according to open and organized collection. The report noted that the most common system in these 108 communities is an open system (77 of the 108 cities had open collection systems, 71.3% of the communities). There were 29 cities with a contract for garbage collection and two (2) cities that collect municipally. Of the 77 cities that had open garbage collection in this 2005 study, 22 cities have contracts for recycling collection. This leads to a percentage organized for recycling of 49.1%. 2.2.1.2 Twin Cities Metropolitan Area A separate report titled “Comparative Economic Analysis of MSW and Recycling Collection in the Twin Cities Metropolitan Area” completed in September, 1994 2 shows in Table II-3 that based on survey responses, there were 155 municipalities with open systems for MSW collection and 42 municipalities with organized collection of which three (3) were municipal collection. The percentages in this report indicated 78.7% open; 19.8% organized by contract; and 1.5% municipal collection arrangements at that time. In the surveys completed as part of the Twin Cities Metropolitan Area study, there were a total of 58 cities with a breakdown of their systems reported. All the cities were over 10,000 in population in this study. Of the 58 cities that completed the survey, 37 were open for garbage collection. This represents 64% as open systems for garbage collection. Of these 37 cities with open garbage collection, 12 cities are organized for recycling collection or 21% of the total 58 cities. There were 21 cities with both garbage and recycling handled in organized systems. The total percentage of cities organized for recycling was 57%. Based on these studies, it appears that the breakdown of percentage of cities in Minnesota organized versus open may range as follows: 1 Barone, Michael. Dec. 2005. “Report on Residential Municipal Solid Waste Collection.” City of Eden Prairie, MN. 2 “Comparative Economic Analysis of MSW and Recycling Collection in the Twin Cities Metropolitan Area.” Sept. 1994. GBB Solid Waste Mgmnt. Consultants. Falls Church, VA. Page 47 of 47