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CR 01-183 Proposed Recycling Utility Rate Increase f. CITY Of: November 7,2001 ~ Council Report 01-183 . HOPKINS PROPOSED RECYCLING UTILITY RATE INCREASE Proposed Action Staff recommends adoption of the following: Move to adopt Resolution No. 01-087 which increases the recycling utility rate effective on billings rendered from and after January 1. 2002. Adoption of this motion will result in staff moving forward with increasing the recycling rate from $2.25 per month to $2.75 per month, effective with all billings from January 1,2002 and there after. Overview The present recycling rate of $2.25 per month has been in effect since 1995. Operating costs have increased from $110,000 in 1996 to an estimated $125,000 in 2001. Revenues over the last five years have remained constant at $29,000 in grants and $81,000 from service charges. The recycling program is part of a larger refuse fund, which helps support the recycling program. The rate increase will start providing the revenues necessary for supporting recycling costs. The increase should generate approximately $17,000 in additional revenues. The grant from Hennepin County may discontinue in 2005. Weare cognizant of loosing this revenue and will continue to monitor the revenue needs for recycling. Additional rate increases could be recommended in the near future to cover the loss of the grant. The public has been notified of the meeting to consider the recycling rate increase, through cable TV and the City web site. . Recycling charges are non-taxable, so residents and businesses will not see an increase in sales taxes for this increased rate. Primary Issues to Consider . How will these rates effect the residents and businesses in the City of Hopkins? Residents and business will see a $.50 per month or $1.50 per quarter, increase in their utility bill. . Why is the rate increase recommended? Need for additional revenue to support cost. Staff Recommendation Finance recommends increasing the current recycling utility rate by $.50 per month per recycling unit to cover increased costs of providing this service. This change in rates would take effect January 1St, 2002. Supportine: Information . Resolution No. 01-087 . Hopkins City Code sec. 605.04 . Historic and estimated revenues and expenses .~~ Lori Yager Finance Director . . . CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 01-087 RECYCLING UTILITY RATE INCREASE WHEREAS, the City of Hopkins has established Ordinance No. 92-707, City Code section 605.04 which defines charges for all collection services and allows adoption of fees through council resolution, and, WHEREAS, it is estimated the present recycling rate is not sufficient to cover current and future operating expenses for recycling; NOW, THEREFORE, be it hereby resolved that the City Council of the City of Hopkins hereby sets the service charge for the collection of recyclables at the following rate to be paid to the City upon billing therefore as follows: The recycling service charge for all users on the system at $2.75 per month, per recycling unit. EFFECTIVE DATE: The provisions of this resolution shall take effect and be in force in connection with all billings rendered hereunder from and after January 1,2002. Adopted by the City Council of the City of Hopkins, Minnesota, this 7th day of November, 2001. Eugene J. Maxwell, Mayor ATTEST: Terry Obermaier, City Clerk C)ty Code - Section 605 , Page 5 of7 . the City or authorized contractor. Proper preparation of the yard waste in the City Service Area will be determined by the rules, regulations and procedures that are designated by the City. Yard Waste disposal in the Non-City Service Area shall be in accordance with Minnesota Statutes Section 115A.931. (Amended Ord. No. 92-707) d) Brush and Tree Waste. It shall be the duty of every owner or occupant of residential dwelling(s), multiple-family dwelling(s), commercial and institutional building(s) to separate brush and tree waste from their mixed municipal solid waste by the rules, regulations and procedures that are designated by the City. (Added Ord. No. 90-685) Subd. 3. Ownership of refuse and recyclables. a) Ownership of refuse and recyclable material set out for collection shall remain with the person who set out the material until removed by the authorized collector. Until the refuse and/or recyclable materials are removed by the authorized collector, the person who set out the material is totally responsible for their proper preparation, handling and storage. Ownership and responsibility for the proper handling of the refuse and recyclable materials shall vest in the authorized collector upon removal thereof by the collector. . b) Unauthorized Collection of Refuse or Recyclables. It shall be unlawful for any person who is not authorized by the City to take or collect or scavenge any refuse materials or recyclable materials set out for authorized collection programs within the City. c) Right to Sell Recyclables and Yard Waste. Nothing in this ordinance shall abridge the right of any person to give or sell their recyclable materials and/or yard waste to any recycling and composting program lawfully operated for profit, nonprofit or charitable purposes. 605.04 Charges for Collection by the City. The charges for all collection services performed by or contracted for the City shall be charged by and paid to the City upon billing at rates as set forth by council resolution. Property owners shall be liable to the City for all bills accruing through the use of refuse services provided to that property whether the same be personally used by said property owner, or the property owners renter, or lessee, or any other occupant of the premises. The fee(s) for basic service shall be charged to all property owners within the City Service Area whether or not service is used unless service is canceled through notification of the city's finance department. Terms of which are governed by the rules, regulations and procedures designated by the City. (Amended Ord. No. 92-707) Subd. 2. Due Dates. Refuse Charges are due and payable on the due date stated on the periodic city utility bill. Each billing for refuse which is not paid when due, shall incur a 10% penalty charge on the current billed amount. (Added by Ord 97-808) . 605.05. Prohibitions. Subdivision 1. Unauthorized dumping. The dumping, depositing, placing or abandoning of any garbage, rubbish, hazardous waste, problem materials, yard waste, junk, junk cars or parts thereof, animal wastes or remains, or any other refuse on any private or public property, except the http://www.hopkinsmn.comlEmp_homepage/Sections/Section605.htm 11/212001 . . . ~ --3 - 2: n o a= ~ ,-.. ~ o 00 00 '-' - p - o 00 w ':....J 0\ .j::o. -. w W - .j::o. '-' -. - -...l \0 +:0- \0 '-' -. 00 ':....J o 0\ '-' -. 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