Loading...
WASTE TECHNOLOGY .. Waste Techn I 9Y Inc. 410 - 11th Ave So. Hopkms, Mmn 55343 Phone (612) 935-6921 Automated Refuse VAViJ INC. CollectIOn Systems Oi ty of Hopkins C1 ty Hall 1010 S. 1st Street Hopkins, Minnesota 55343 Attn I 141'. Bill craig - City Manager Mr. Bob Miller - Mayor January 4, 1985 REa Five-Year Refuse Collection Contract Gentlemen. ~- Effective January 1, 1985, there is one (1) year remaining on the City's oollection contraot. At this time, we would like to request a five (5) month extension to run trom January, 1986 to May 31, 1986 as discussed with the Cityts staff back in l~8l. The membership of the Council has ohanged somewhat since then, but most of the members are probably aware of the contraotunl prOblems we had at the beginning. The contract was bid and awarded on a basis of approximately 3,510 homes for collection. It waentt until the second month of the contract that we were informed that there, unfortunately, were about 100 fewer homes. This caused a coneideraole amount of anguish on our part as well as a severe finanoial problem. It neoessitated restructing our finanoial loans from First Bank of Hopkins to First Municipal Leasing Corporation and extending the .financing five (5) months since our monthly income was cut by about $3,500.00. I have attaohed a copy of a letter from Mr. Bill Craig disoussing and recommending this extension. Our attorneys advised us at the time tha.t we would have been justified in taking legal aotion to force complianoe with the oontract terms. We felt that was a rather extreme measure at the time and we proposed varioue alterna.tives to help UQ recoup the lost income. All these alternatives were rejeoted over a four (4) or five (5) month periOd of time and so we made the best of a bad situation and stuck it out. We feel we did the honorable thing at the time and as a result were put under considerable pressure to perform on our "part of the contract". Over the last three (3) years, A!& the changes requested by Council have been implemented by us. We now feel it is the City's turn to help in a small way by extending the contract for the time requested and allowing us to finish with at least our skin intaot. Thank you, and I'm willing to discuss this or any other item with you or the other members of the Council in person. MK. dg &10. Sinoerely, ~y { , Waste T chn logy Inc. 410 - 11th Ave So Hopkins, Minn. 55343 Phone (612) 935-6921 VAVif INC. Automated Refuse CollectIOn Systems Ci ty of Hopkins City Hall 1010 S. 1st Street Hopkins, Minnesota 55343 January 4, 1985 Attn. Mr. Bill Craig - City Manager Mr. Bob Miller - Mayor Gentl mena Effective January 1, 1985, the State of Minnesota has implemented a Landfill Abatement Tax. The money collected from this tax is to be used for "landfill abatement purposes; costs of closure, postclosure care and response aotions and other adverse effects of landfills". The tax will be 90jt per 600 Ibs. of solid waste which converts to about $19.60 per truckload. This tax will be shown as a separate line item on the monthly bill beginning with January, 1985. Based upon recent past weight figures for the Cityts solid waste, the monthly tax will fall somewhere between Sl,lOO.OO and $1,500.00 per month. Based upon the numb r of homes, this ranges from 29~ to 45~ per home per month. It may be easier for you to add on 50, per month per home and keep the difference for increased accounting work. This tax is based upon the "weight" or the "cubic yards" of solid waste brought into every landfill in the state. The tax is applicable to "all" solid waste and must be paid b.f all users, whether they are private or municipal. W have calculated what the tax will be for Hopkins on both methods of payment and have found the tax to be considerably less if figured on a weight basis. We have included examples based upon the tonnage figures for May - November, 1984 for the City on the attached sheet. We are very sorry for the late date of this notice but we did not become aware of this change in the state law until about four (4) weeks ago, and did not know the "exact amount" until we received our notice from Flying Cloud Landfill this past week (see attached sheet). The entire solid waste disposal problem is becoming much more severe. The days of dumping garbage into a hole in the ground are rapidly coming to an end. In fact, there will be numerous drastic changes in the Metro area in the next two (2) years. Hennepin County and the Metro Council are attempting to gain control of the waste stream to dir ct it to the proposed regional transfer stations (like Hopkins) and then to the propos d '500 million incinerator downtown. Current landfill rates are $10 per ton which costs each homeowner in Hopkins about $1.00 to Sl.25 per month. When th propos d incinerator goes on line, disposal costs will climb to about $60 per ton or about ,6.00 to $1.00 per month per home! And, this does !Q! ~nclude collection costs! For these reasons, we would encourage you to assess the homeowners the tax as a separate item rather than includLng it in the lump sum on the util~ties bill or taking it from the general funds. We think it is extremely important that the individual citizen und rstands what is about to happen and hopefully take a greater interest in recycling or other solid waste reduction programs. We know that several council members have taken an interest in such programs and under the circumstances, we would be willing to assist th City in any way possible. I ( e City of Hopkins (cont. page 2) January 4, 1985 Attn I Mr. Bill Craig Mr. Bob Miller If the City were to be concerned about the 1ntegrity of the weights and the taxes due, we would be available for an audit at any time. Thank you. 1afi{ J dg Ene. s/t:7 , . CITY OF HOPKINS SOLID WASTE TONNAGE FOR MAY - NOVEMBER - 1984 TONNAGE TAX ON TAX ON ~ ( roUNDS ) TONNAGE BASIS ~ CUBIC YARDS May 25 - June 25, 1984 975,460# $ 1,463 85 $ 1,683.00 July 25 - Aug. 25, 1984 850,520# 1,275 71 1,405.80 Aug. 25 - Sept. 25, 1984 917,720# 1,376 83 1,643.40 Sept. 25 - Oct. 25, 1984 873,120# 1,309 79 1,564.00 Octo 25 - Nov. 25, 1984 723,38Q#: 1,085.00 16 1,504.00 J.JJ you can see, the tax based on a "weight" basis is as muoh as $300.00 per month less than on a cubic yard basis. I would guess it is because we don't always dump a t1ful1 n truck load and because there are times when bulky items fill up the truck but do not weigh much. .., v , .. Waste Techn logy Inc. 410 - 11th Ave So. Hopkins, Minn. 55343 Phone (612) 935-6921 VAViJ INC. Automated Refuse CollectIon Systems City of Hopkins City Hall 1010 S. 1st Street Hopkins, Minnesota January 4, 1985 55343 Attn. Mr. Bill Craig - City Manager Mr. Bob Miller - Mayor Gentlemen. Effective January 1, 1985, the State of :Minnesota has implemented a Landfill Abat ment Tax. The money collected from this tax is to be used for "landfill abatement purpos s; costs of closure, postclosure oare and response actions and other adverse effects of landfills". The tax will be 90~ per 600 lbs. of solid waste which converts to about $19.80 per truckload. This tax will be shown as a separate line item on the mOl'lthly bill beginning with January, 1985. Based upon recent past weight figures for the City's solid waste, the monthly tax will fall somewhere between $1,100.00 and $1,500.00 per month. Based upon the number of homes, this ranges from 29~ to 45~ per home per month. It may be easier for you to add on 50~ per month per home and keep the difference for increased aocounting work. This tax: is based upon the tlweighttl or the tlcubic yards.t of solid waste brought into every landfill in the state. The tax is applicable to "all tl solid waste and must be paid b,y all users, whether they are private or municipal. We have calculated what the tax will be for Hopkins on both methods of payment and have foun.d the tax to be considerably less if figured on a weight basis. We have included examples based upon the tonnage figures for May - November, 1984 for the City on the attached sheet. We are very sorry for the late date of this notice but we did not become aware of this change in the state law until about four (4) weeks ago, and did not know the tlexact amounttl until we rece1ved our notice from Flying Cloud Landfill this past week (se attached sheet). The entire solid waste disposal problem is becoming much more severe. The days of dumping garbage into a hole in the ground are rapidly coming to an end. In fact, there will be numerous drastic changes in the Metro area in the next two (2) years. Hennepin County and the Metro Council are attempting to gain control of the waste stream to direct it to the proposed regional transfer stations (like Hopkins) and then to the proposed $500 million incinerator downtown. ~ent landfill rates are $10 per ton which costs eaoh homeowner in Hopkins about $1.00 to $1.25 per month. When the proposed incinerator goes on line, disposal costs will climb to about $60 per ton or about 86.00 to $1.00 per month per home! And, this does !Q! include collection costs! For these reasons, we would encourage you to assess the homeowners the tax: as a separate item rather than including it in the lump sum on the utilities bill or taking it from the general fundS. We think it is extremely important that the individual citizen understands what is about to happen and hopefully take a greater interest in recycling or other solid waste reduction programs. We know that several council members have taken an interest in such programs and under the circumstances, we would be willing to assist the City in any way possible. . ,/ '- . , ~ City or' Hopkins (cont. page 2) Attnl Mr. Bill Craig Mr. BOlli Miller January 4, 1985 If the City were to be concerned about the integrity of the weights and the tax s due, we would be available for an audit at any time. Thank you. MKldg Dte. ~/~ ..' .. CITY OF HOB;US SOLID WASTE TONNAGE FOR MAY - ROVEMBER "!!' 1984 TONNAGE TAX OR MON'J.IH ( NUNDS) LOADS CUBIC YARDS - ~ 25 - Juae 25. 1984 975,4601 1,463 85 S 1,683.00 July 25 - Aug. 25. 1984 850,520# 1,275 71 1,405.80 Aug. 25 - Sept. 25, 1984 917,720/1 1,376 83 1,643,40 Sept. 25 - Oct. 25, 1984 873,120# 1,309 79 1,564.DO . Oct. 25 - Nov. 25, 1984 723,380{1 1,085.00 76 1,504.00 .As you can see, the tax based on a "weight" basis is as much as '300.DO per month less than on a cubic yard basis. I would ga.ess it is because we don't always dump a "full tt truck load and because there are times when bulky items fill up the truck but do not weigh much. '