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r <br />Request for Council Action continued <br />page 2 of 2 <br />June 17,1997 <br />Item: Curbside Recycling Contract Extension for 1998 to 2< <br />Currently the contractor must pay $10.00 per ton to recycle newsprint. The city of Orono generates <br />approximately 50 tons of newsprint to be recycled each month. If the city pays 50% of the increased <br />cost to recycle newsprint, the city will pay $2.50 per ton times 50 tons per month which is an <br />additional $125.00 per month or $1,500.00 per year. Because the city only generates approximately <br />2 tons of plastic containers per month ti'.e potential cost increase for plastic is not significant. <br />Although the potential additional cost related to the reduced market price for newsprint is not an <br />insignificant amount, it is a reasonable arrangement to help ensure the continuity of recycling <br />services. The market downturn both in newsprint and plastics is expected to rebound in the near <br />future, hopefully before the 1998 contract takes effect. However, if the market were to worsen and <br />the city's costs were to increase substantially, the city has the option of discontinuing the collection <br />of the high cost recyclables. <br />COUNCIL ACTION REQUESTED: <br />Motion to approve the extension of the curbside recycling pickup contract with E-Z Recycling for <br />1998 through 2000 at a cost of $2.04 per household per month with the added revenue sharin.; and <br />market downturn language, and to authorize the Mayor and City Clerk to sign the contract extension <br />agreement. <br />J