Discuss Amendment to Hennepin County Residential Recycling Funding Policy; HoveMemorandum Public Works Department
To: Honorable Mayor and Members of the City Council
From: Pam Hove, Solid Waste Coordinator
Cc: Mike Mornson, City Manager
Date: September 3, 2015
Subject: Discuss Amendment to Hennepin County Residential Recycling Funding Policy
Staff would like to discuss and seek City Council approval of an Amendment to Agreement
A120112 between Hennepin County and the City of Hopkins. Approving this amendment will
result in:
The extension of the Residential Recycling Grant Agreement between Hennepin County and
the City of Hopkins from December 31, 2015 to December 31, 2016; and
2. Incorporate state requirements to expend additional SCORE (Select Committee on Recycling
and the Environment) funds on Organics recycling.
Minnesota State Legislature dedicated additional funds to SCORE last year. As a result,
Hennepin County has $813,764 more in SCORE funds in 2015 and will have approximately
$600,000 more in 2016. Per state statute, 50% of the additional funds must be spent on Organics.
Attached is a copy of the revised Residential Recycling Funding Policy.
In order to receive these monies, cities must have a residential curbside Organics collection
program in place. While at present the City of Hopkins is not eligible to receive these additional
funds, staff recommends approving this amendment.
In 2011 State Statute defined Organic material as a recyclable, and therefore mandated that cities
have a residential curbside collection program. This is being rolled out in tiers, with the City of
Minneapolis being the first tier city in Hennepin County, starting their curbside program in 2015. It
is realistic to expect that Hopkins won't be required to have such a program before 2017 but
possibly as late as 2020.
\Work Session Memo 09.08.15
doesn't Hoakins have a residential curbside aroaram now?
Unlike many other communities, the City provides the refuse service in Hopkins. In order to
provide an Organics service, one of three things would need to happen:
1. Hennepin County would need to be willing to accept a product called Blue Bags with our
regular refuse collection that we currently bring to their Brooklyn Park Transfer Station
(BPTS).
Blue Bags were formerly a product of Randy's Sanitation and have been used in surrounding
communities like Wayzata for several years. Randy's Sanitation sold Blue Bags and it is now
known as Organix Solutions. In this scenario, all Hopkins refuse customers would be enrolled
in the program as part of the existing recycling service. Likely, a small increase in the
recycling rate (currently $4.50) would be instituted to cover the cost of this program. A year's
supply of bags would be mailed to each participating residence directly from Organix
Solutions. Residents would put their Organics in these bags, put the bags in their garbage
cart, the City would collect refuse as usual and tip our hauls at the BPTS. Blue Bags would
be picked off the tipping floor and hauled by Specialized Environmental Technologies (SET)
to one of their commercial composting facilities.
While this option was in heavy negotiations early this summer and a likely possibility,
Hennepin County has decided not to move forward at this time.
2. Same scenario as above, but we end our relationship with Hennepin County and take our
refuse loads to a private transfer station that SET has established agreements with. They
have already entered into agreements with privately owned transfer stations in Maple Grove
and Shakopee, and continue to look for more opportunities in the area. We can anticipate
that the tipping fees at a privately held transfer station to be higher than at the County, but
with the proposed increase in the recycling rate as well as these additional SCORE funds, we
could compensate for this expense.
3. We contract the service with an outside hauler.
For 5 years the City of Hopkins benefitted from a unique agreement with the City of
Minneapolis to haul Organics collected at our municipal buildings. The City of Minneapolis
charged Hopkins $0.13 per cart to drive here, pick-up and haul our Organics away. With the
County now requiring residential curbside Organics pick-up, and Minneapolis being the first
tier city, this relationship came to a close on June 12, 2015. They needed all their trucks,
carts and manpower available to service their own community.
To compare, Waste Management is our recycling contractor and they provided a quote of
$5.00 per cart to add a weekly residential curbside Organics service to our existing contract.
\Work Session Memo 09.08.15
The cost is too high to justify at this point in time. This scenario would also require residents
to find space for a third cart, and an additional truck and weekly route would be ran down our
streets and alleys.
At this time, since Hopkins is not required to collect Organics curbside, staff feels it's too early to
do either option 2 or 3. Staff recommends waiting until more infrastructure is in place before
making decisions and changes.
By adopting this Amendment to Agreement A120112, when the time comes for Hopkins to
implement a residential curbside Organics program, there will be additional funds available to
support the program.
\Work Session Memo 09.08.15
Attachment A
Hennepin County
Residential Recycling
FundingPolicy
January 1 , 2012 - December 31 , 2016
a
Hennepin Public Works
Environment and Energy Department
Adopted November 29, 2011, Revised June 16, 2015
•
I. Policy Description
The Hennepin County Board of Commissioners determined that curbside collection of
recyclables from Hennepin County residents is an effective strategy to reduce reliance on
landfills, prevent pollution,reduce the toxicity of waste, conserve natural resources and energy,
improve public health, support the economy, and reduce greenhouse gases. Therefore,the county
adopted the goals established by the Minnesota Pollution Control Agency (MPCA) in its
Metropolitan Solid Waste Management Policy Plan and developed a Residential Recycling
Funding Policy to help reach a 75%recycling rate by 2030.
The county will distribute all Select Committee on Recycling and the Environment(SCORE)
funds received from the state to cities for curbside collection of residential recyclables, including
organics. If cities form a joints powers organization responsible for managing a comprehensive
recycling and waste education system for the residents of those cities,the county will distribute a
recycling grant to that organization. Cities are expected to fulfill the conditions of the policy.
Length of Residential Recycling Funding Policy
Hennepin County is committed to implement this policy and continue distributing all SCORE
funds received from the state for the purpose of funding curbside residential recycling programs
from January 1, 2012 through December 31, 2016. The county may revise this policy if it
determines changes are needed to assure compliance with state law and MPCA goals established
for metropolitan counties. In the event that SCORE funds are eliminated from the state budget or
significantly reduced,the county will consult with cities to develop a subsequent
recommendation for the county board that will continue this policy and fund curbside recycling
programs.
Fund Distribution
The county will distribute to the cities one hundred percent (100%)of SCORE funds that the
county receives from the state. SCORE funds are based on revenue collected by the State of
Minnesota from the solid waste management(SWM)tax on garbage services. SCORE funds are
subject to change based on actual SWM revenue and the funds allocated by the State Legislature.
Funds distributed to cities for the current calendar year will be based on SCORE funds received
by the county in the state's corresponding fiscal year.
In 2014 the State Legislature allocated additional funds to SCORE in 2015 and 2016. Beginning
in fiscal year 2015 and continuing thereafter, of any money distributed that exceeds the amount
the county received in fiscal year 2014, 50 percent must be expended on organics recycling.
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II. Recycling
Allocation of Funds
The following formula will be utilized to determine each city's recycling SCORE grant each
year.
#of households with
curbside recycling in city X Total SCORE funds = Recycling grant amount
available for available to the city
Total#of households with recycling
curbside recycling in county
Eligible households are defined as single family through eight-plex residential buildings or other
residential buildings where each housing unit sets out refuse and recycling containers for
curbside collection. The cities will determine the number of eligible households by counting the
number of households with curbside recycling service on January 1 of each funding year. The
number will be reported in the application for funding.
The total SCORE grant available for recycling will equal the 2014 base year amount plus 50
percent of additional SCORE funds. If the total SCORE funds are less than the 2014 base year,
100 percent of those funds will be available for recycling.
The grant can be used for recycling program expenses including capital and operating costs.
Expenses associated with residential collection of organics are eligible recycling program
expenses. However, yard waste expenses are ineligible.If organics and yard waste are
commingled, the organics expenses must be tracked separately.
Responsibilities of Cites
A. Grant Agreement
Each city seeking funding under the terms of the Residential Recycling Funding Policy must
enter into a Residential Recycling Grant Agreement with the county for a term concurrent with
the expiration of this policy, December 31, 2016. The grant agreement must be accompanied by
a resolution authorizing the city to enter into such an agreement.
B.Application for Funding
Each city must complete an annual application by February 15 to receive funding for that year.
The application consists of the Re-TRAC web-based report and a planning document submitted
to the county describing the programs or activities the applicant will implement to increase
recycling and make progress toward recycling goals.
C. Minimum Program Performance Requirements
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1. Collection of Recyclables. Cities that contract for curbside recycling services will require a
breakout of the following expenses when renewing or soliciting bids for new recycling
services:
a) containers—if provided by the hauler
b) collection service
c) processing cost per ton
d) revenue sharing
2. Materials to be Collected. At a minimum, the following materials must be collected curbside:
a) Newspaper and inserts;
b) Cardboard boxes;
c) Glass food and beverage containers;
d) Metal food and beverage cans;
e) All plastic containers and lids,#1 —Polyethylene Terephthalate(PET, PETE), #2
High Density Polyethylene (HDPE), #3 —Vinyl Polyvinyl Chloride (PVC), #4—Low
Density Polyethylene (LDPE) and#5 —Polypropylene (PP)plastic bottles, except
those that previously contained hazardous materials or motor oil;
f) Magazines and catalogs;
g) Cereal, cracker,pasta, cake mix, shoe, gift, and electronics boxes;
h) Boxes from toothpaste, medications and other toiletries;
i) Aseptic and gable-topped containers; and
j) Mail, office and school papers.
The county may add materials to this list and require cities to begin collection within one
year of receiving notification from the county. Cities will notify the county if materials not
found on this list will be collected.
3. Collection Methods. Cities must use one of the following systems to collect materials at the
curb:
a) single sort system - all materials combined in one container; or
b) dual sort system- glass, metal and plastic together with paper separate
If one of these two systems is not in place,the city must submit a plan with its application for
converting to a single or dual sort system by December 31, 2016. If the municipality is
unable to meet this deadline, an alternative implementation schedule must be negotiated with
the county.
4. Education and Outreach.
a) County Responsibilities
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1) Coordinate meetings of the communications committee,which will be
composed of county, cities, and other stakeholders.
2) Produce education material templates and print the template materials for
cities. Materials will also be available online to download.
3) Provide a minimum of eight promotional resources that will include a
newsletter article, a web story, social media posts, and printed promotional
materials for municipalities on a variety of waste reduction,reuse, recycling,
and proper disposal messages.
4) Develop an annual priority message campaign. The campaign will be one
main message to promote throughout the year; for example "recycle
magazines."The message and the materials will be developed with the
communications committee. The county will provide templates and be
responsible for primary distribution of the campaign through direct mail,
advertising, or public relations. The cities will be required to support the
campaign through their communication channels.
b) City Requirements
1) Use county terminology when describing recycling guidelines (i.e.
description of materials accepted and not accepted,preparation guidelines,
etc.).
2) Use images provided by the county or the Solid Waste Management
Coordinating Board, if using images of recyclables.
3) Use the county's terminology,preparation guidelines and images on the
city's website.
4) Mail a recycling guide once a year to residents using a template developed
by the communications committee and produced and printed by the county
at the county's expense. If a municipality does not want to use the template
produced by the county,the municipality may develop its own guide at the
municipality's expense, with prior approval by the county. If the city relies
on its hauler to provide the recycling guide,this guide would also require
approval by the county.
5) Complete two additional education activities from a menu of options
developed by the communications committee to support the priority
message campaign.
Any print material that communicates residential recycling guidelines that were not
provided by the county template will require county approval. This does not apply to
waste reduction and reuse, articles on recycling that do not include guidelines, and social
media posts. The county will respond within five business days to any communication
piece submitted.
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5. Use of Funds.
a) The city must use all grant funds for waste reduction and recycling capital and
operating expenses in the year granted. Cities will not be reimbursed any funds in
excess of actual expenses.
b) The city may not charge its residents through property tax, utility fees or any other
method for that portion of the costs of its recycling program funded by county grant
funds.
c) The city must establish a separate accounting mechanism, such as a project number,
activity number, or fund that will separate recycling revenues and expenditures from
other municipal activities, including solid waste and yard waste activities.
d) Recycling and waste reduction activities,revenues, and expenditures are subject to
audit.
e) Cites that do not contract for curbside recycling services will receive grant funds
provided that at least ninety percent(90%) of the grant funds are credited back to
residents and the city meets all minimum program requirements. The additional ten
percent(10%)may be used for administrative and promotional expenses.
6. Reporting Requirements.
a) Each city must submit an annual recycling report to the county electronically using
the Re-TRAC web-based reporting system by February 15 of each year. If a city is
unable to access Re-TRAC,the county must be contacted by February 1 to make
arrangements for alternative filing of the report.
b) Each city must calculate its participation rate in the curbside recycling program
during the month of October. The participation rate will be reported in Re-TRAC.
The methodology for measuring participation must be provided to the county upon
request.
c) Each city must submit an annual planning document to the county describing the
programs or activities the applicant will implement to increase recycling and make
progress toward county goals.
7. Recycling Performance. On an annual basis, each city must demonstrate a reasonable effort
to maintain and increase the average amount of recyclables collected from its residential
recycling program to at least 725 pounds per household or a minimum recovery rate of 80%,
by December 31,2015. The goal remains the same for December 31, 2016. An alternative
performance option for cities with organized waste collection is to validate at least a 35%
recycling rate. To ensure the accuracy of data for these metrics, cities will be required,upon
request,to provide documentation on the methodology used to calculate performance. To the
extent practicable,the results should rely on actual data rather than estimates.
Failure by a city to demonstrate measureable progress toward goals will result in the city
being required to submit a recycling improvement plan within 90 days of being notified by
the county. The recycling improvement plan must be negotiated with the county and specify
the efforts that will be undertaken to yield the results necessary to achieve the goals. The plan
shall focus on the following areas: type of container, sort method, materials collected,
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frequency of collection, education and outreach,performance measurement, and incentives.
Funding will be withheld until the city's recycling improvement plan is approved by the
county.
In cooperation with the county, the city may be required to participate in waste and recycling
sorts to identify recovery levels of various recyclables in their communities. Based on the
results of the study, the county and city will collaborate to increase the recovery of select
recyclable materials being discarded in significant quantities.
D. Partnership
The partnership between the county and cities has been highly effective in educating and
motivating behavior of residents resulting in significant amounts of waste being reduced and
recycled. In order to continue this partnership and increase these efforts,program activities of
cities must be coordinated with county and regional efforts. Cites are responsible for cooperating
with the county in an effort to reach the county's goals for recycling and organics recovery.
Quarterly recycling coordinator meetings are an opportunity to share resources and facilitate the
coordination of efforts.
Responsibilities of Hennepin County
A. Application Form
The county will provide an application form by December that each city will use to report on its
recycling program and request grant funding for the next year.
B. Payments
The county will make grant payments to each city in two equal payments. One payment will be
made after the county receives the application, which will consist of the Re-TRAC report and the
planning document. A second payment will be made after the report has been approved,
measurable progress toward the goals has been confirmed, and, if necessary, a recycling
improvement plan has been approved by the county. If the city meets the county requirements,
both payments will be made during the same calendar year.
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III. Organics Recycling
Allocation of Funds
The following formula will be used to determine a city's organics grant each year.
Number of households with
curbside organics in city Total SCORE funds Organics grant
x available for = amount available to
Total number of households with organics the city
curbside organics in county
The total SCORE funds available for organics recycling will equal 50 percent of the additional
SCORE revenue allocated by the State Legislature. If the total SCORE funding is less than the
2014 base year, no funds will be available for organics recycling.
Application for Funds
To apply for funds, a city must submit the number of eligible households that signed up for
organics to the county by September 1 of each funding year.
Use of Funds
The grant funds may be used for organics program expenses,including the following:
• Contract cost of service(to the city or its residents)
• Discount to new customers
• Carts
• Compostable bags
• Kitchen containers
• Education and outreach
Program administration is an ineligible expense. Yard waste expenses are ineligible expenses. If
organics and yard waste are collected together,the organics expenses must be tracked separately.
If the city passes funds through to a hauler, 100% of those funds must be credited to households'
bills.
In addition,the following requirements apply:
• All grant funds must be used during the term of the agreement. Funds not spent must be
returned to the county.
• Funds must be expended on eligible activities per Minnesota State Statute 115A.557.
• A city may not charge its residents through property tax, utility fees or any other method
for that portion of the costs of its organics program funded by county grant funds.
• Cities must able to account for organics expenditures separately upon request by the
county. Expenditures are subject to audit.
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Education and Outreach
The partnership between the county and cities has been highly effective in educating and
motivating the behavior of residents, resulting in significant amounts of waste being reduced and
recycled. In order to continue this partnership with organics recycling, the county encourages
cities to coordinate program activities with county and regional efforts.
The county will work with cities to provide assistance with the following:
• Standard terminology and images
• Organics recycling guide (yes-no list)
• Promotional resources to increase participation
Reporting
A report on the city's organics program must be submitted electronically to the county by
February 15 following each funding year. The report must include, but is not limited to,the
following:
Basic Program Information:
• Hauler
• Collection method
• Where organics are delivered to and processed at
• Is service opt-in or opt-out
• Cost of service to residents and contract cost to the city
• How the service is billed
• Items included in service: curbside collection,cart, compostable bags, etc.
Results
• Tons
• Number of households signed up
• Average pounds per household per year
• Participation(set-out rate on pickup day)
• How funds were used
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