CR 94-15 Adjust Refuse Rate
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. January 11, 1994 ~ Council Report #94-15
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ADnJST REFUSE RATE
Proposed Action.
Staff recommends adoption of the following motion: Move that Council adopt Resolution 94-6
"Adiusting Refuse Rates to Comply With Hennepin County Resolutions Reducing the Tip Fee and
Establishing a Solid Waste Management Fee of9%". be adopted.
Overview.
Hennepin County adopted Ordinance 15 - Solid Waste Management Fee and Hauler License
ordinance for Hennepin County on November 30, 1993. Effective January 1, 1994, the solid
waste tipping fee was set at $60.00 per ton (lowered from the $95.00 rate) and established a solid
waste management fee of nine (9) percent for a "Residential Generator".
Primarv Issues To Consider.
0 Impact on quarterly City refuse bilI does not change.
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Cost savings on tipping fee are passed to the user.
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0 The 9% management fee offsets the tip fee savings.
0 The rate structure would be implemented in a manner that all residences are affected for
service after January 1, 1994.
SUDDortine Information.
0 Hennepin County notice to refuse haulers.
0 Resolution 94-6.
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John E. Schedler, Finance Director
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. Adjust Refuse Rate
Report 94-15
Page 2
Detailed Back2,round.
The rate structure was determined based on the cost savings on the tip fee, extra cost that
requires the City to now haul refuse to Brooklyn Park and the $32,000 annual loss of the
Hennepin County yard waste grant as of 1994.
The new county ordinance allows the City to reduce the yard waste costs from the City's
collection/disposal charge, thus allowing a reduction in the base charge for calculating the 9% fee.
The $1.50 montWy fee for handling yard waste is still required to cover costs for this separate
function. The fee will be incorporated with the current recycle fee of $.75 per month. On future
utility bills a line charge will appear as Recycle/Yard Waste $6.75 per quarter.
The current base charge will appear as Collection/Disposal $43.35 and a new line charge for the
9% fee will appear as County Fee $3.90.
. These amounts will be adjusted to the actual fees on the February and March, 1994 utility bills, as
a full 1994 quarter of service will not be due until the April, 1994 billing.
A breakdown of the fee structure presently, for the interim first quarter of 1994 and thereafter:
Recycle/ Collection/
Billing Yard Waste Disposal MontWy County Quarterly
Month (montWy) (monthly) Costs Ouarter 9% Fee Billing
January $ 0.75 $ 17.25 $ 18.00 $ 54.00 $ -0- $ 54.00
February 2.25 15.32 17.57 52.70 1.30 54.00
March 2.25 14.88 17.13 51.40 2.60 54.00
April and
thereafter 2.25 14.45 16.70 50.10 3.90 54.00
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e DEPARTM.ENT OF ENVIRONMENTAL MANAGEMENT
417 North Fifth Street
HENNEPIN Minneapolisl Minnesota 55401-1309
Phone: (612) 348-6846 CERTIFIED :MAIL
FAX: (612) 348-8532
December 3. 1993
NOTICE TO HENNEPIN COUNTY HAULERS
SUBJECT: Reduction of Tip Fee and Adoption of Ordinance 15
and a Solid Waste Management Fee
The Hennepin County Board of Commissioners unanimously adopted three Resolutions at the .
Board meeting held on Tuesday, November 30, 1993. These Resolutions collectively establish
a new method of funding the County's Solid Waste Management Program, effective January I,
1994.
e The three Resolutions (enclosed) are the following:
1. Resolution 93-11-937R1 approved adoption of Hennepin County Ordinance No. 15, Solid
Waste Management Fee and Hauler License Ordinance for Hennepin County (enclosed)
which includes procedures for establishing a hauler collected solid waste manageuieHt
fee, the fee payment method, reporting requirements, licensing provisions and penalties
for noncompliance, effective January 1, 1994.
2. Resolution 93-11-938 established a solid waste tipping fee of $60 _ 00 per ton, effective
January 1, 1994, lowered from the current $95.00 per ton.
3. Resolution 93-11-939Rl established a hauler collected solid waste management fee of
nine (9) percent for a "Residential Generator" and fourteen and one-half (14.5) percent
for a "Nonresidential Generator" on Mixed Municipal Solid Waste (MMSW) collection
and disposal services, effective January 1, 1994.
A fact sheet summarizing the most often asked. questions regarding Ordinance 15 and a form to
be used for reporting the Solid Waste Manage~ent Fee collected by haulers will be mailed to
all licensed haulers the week of December 13...1993.
Sincerely,
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Tim L. Goodman
Solid Waste Division Manager
HENNEPIN COUNTY
an equal opportunity employer
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e CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 94-6
ADmSTING REFUSE RATES TO COMPLY WITH HENNEPIN COUNTY
RESOLUTIONS REDUCING THE TIP FEE AND EST ABLISHlNG A
SOLID WASTE MANAGE11ENT FEE OF 9%
WHEREAS, Hennepin County has enacted County Solid Waste Management Fee Ordinance No.
15 allowing establishment of the County disposal tipping fee at 60 dollars per ton effective
January 1, 1994~ and
WHEREAS, Hennepin County has established a hauler collected solid waste management fee of
nine (9) percent for a "Residential Generator" effective January 1, 1994; and
WHEREAS, an adjustment of the monthly refuse collection service charge must be made to -
compensate for these changes~ and
WHEREAS, Hopkins City Ordinance No. 89-633, section 605.02, subd. 3, authorizes refuse
. collection service charge rates to be set forth by Council resolution,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby
sets the service charge for refuse collection in the city service area at the following rate to
be paid to the City upon billing therefore as follows:
$16.70 per 90 gallon container per month per unit.
In addition, a management fee of $1.30 is added for each container service.
That the existing charge rates are hereby repealed.
That the effective date of the new rate be in force in connection with all service rendered
hereunder from and after January 1, 1994.
Adopted by the City Council of the City of Hopkins this 18th day of January, 1994.
By
Charles D. Reclepenning, Mayor
. ATTEST:
James A Genellie, City Clerk