CR 94-214 Refuse Rate Changes � T Y 0
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October 24, 1994 Council Report: 94-214
REFUSE RATE CHANGES
Proposed Action.
5taff recommends adoption of the following motions "Move to adopt
Resolution 94-105� a Resolution Establishing New Refuse Rates Effective
January 1, 1995."
Approval of this motion will establish the following monthly refuse rates:
Refuse/Recycle/Yd Waste Total Monthly (includes taxes)
30 gallon = $13.25 $14.96
60 gallon = $15.50 $17.55
90 gallon = $17.75 $20.16
overview.
On March 15 the City Council gave preliminary approval of the above
recommended refuse rates. The attached report from that Council meeting
i has�the background on this matter and the reasoning behind the recommended
refuse rates. The rates were not permanently established at that time
because staff did not know when the effective date should be.
The anticipated bid award for the new refuse containers now gives staff the
necessary information to recommend an effective date for the new rates. As
mentioned in Council Report 94-211; Container bid award, staff is
recommending an effective date of January 1, 1995 for the new rates. This
date partially coincides with the delivery of the new containers, and more
importantYy for the residents who are changing to a smaller container it
sets a date when they will be charged a lower rate.
supuortinq Information.
o Council Report 94-59
o Resolution 94-105
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Lee Gusta son, ublic Works Director
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March 10, 1994 Council Report: 94-59
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REQUEST FOR PRELIMINARY APPROVAL OF
VOLUME BASED REFUSE RATES
Proposed Action.
Staff recommends adoption of the following motion: "Approve new
volume based refuse rates as follows: 513.25 for each 30 gallon
container, $15.50 for each 60 gallon container and 517.75 for each 90
gallon container and authorize staff to do a mailing publicizing this
information.
Approval of this motion will set volume based refuse rates to be used
in a postcard mailing to determine what size containers residents
desire. Final approval of the volume based refuse rates will occur at
a later date after residents have returned the postcard with their
choice of container size and staff has determined when the effective
date of the rates should be.
Overview. �
In 1993 the Waste Management Act required that municipal refuse
� collectors must charge by weight or volume of material collected and
that the cost for waste disposed of must increase as the weight or
volume increases. The Waste Management Act also required cities to
determine what the base small quantity generator in their community
was. Hopkins recently accomplished this by conducting a survey of our
refuse customers. The proposed container sizes and corresponding
costs are based on information taken from that survey and a survey of
other private haulers.
Primary Issues to Consider
o What is the purpose of requesting Preliminary Approval?
o How were the sizes selected?
o How were the prices determined?
o When will the rates be permanently set?
Supportinq Information
o Detailed Background O
o Analysis of Issues �
Lee Gustafson, Public Works Director
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Council Report: 94-59
Page 2
� Detailed Background
Effective 1/1/94 Section 115A.9301 Subdivision 2 of the Waste
Management Act requires that if a local government unit collects solid
waste and implements a pricing system based on volume instead of
weight, it shall determine a base unit size for an average small
quantity household generator. The governmental unit must also
establish a multiple unit pricing system to ensure amounts of waste
generated in excess of the base unit amount are priced higher than the
base unit price. During 1993 the Waste Management Act was revised and
allowed for a postponement of the effective date. The city applied
for this postponement and was allowed to wait until 1/1/95 to
�implement our volume based pricing system.
In order to comply with the portion of the mandate requiring us to
"determine a base unit size for an average small quantity household
generator" the City of Hopkins hired Decision Resources to conduct a
survey in August of 1993. From this survey it was determined that
unless there was a$4.00 difference between sizes most residents would
not change to a smaller container.
Analysis of Issues
o What is the purpose of requesting Preliminary Approval?
� 5taff is requesting preliminary approval on rates because we need
to set the rates in order to let residents know how much they
will save by changing to a smaller container. We need time
before the actual effective date of the rates to have residents
return postcards, determine how many containers to purchase, and
bid out the containers. After that is completed staff will
request formal adoption of the rates that includes an
implementation date.
o How were the sizes selected?
The sizes were determined after reviewing the results of the
refuse survey that indicated to us very few residents would
generate less than 30 gallons of refuse each week. We were also
somewhat influenced by our fully automated refuse system. The
smallest container that this system can easily pick up is a 3D
gallon size container. After determining that 30 gallons would
put us in compliance with the Waste Management Act requirement we
moved to the next stage of setting rates for each size.
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Council Report: 94-59
Page 3
o How were the prices determined?
� The prices were set by estimating how many smaller containers
would be requested and setting a price that would continue to
generate about the same amount of revenue that we currently need
to pay for our disposal cost. It was assumed that our disposal
cost would remain the same since most people will generate the
same amount of refuse, only put it in a smaller container. Staff
computed the new rates based on the amount of refuse that would
be in the different sized containers and the results of those
computations indicated that the 90 gallon container price should
. have an increase of $1.05 over our current price of $16.70. The
costs for the 30 and 60 gallon containers were computed to be
lower from the 90 gallon container in increments of $2.25. Staff
felt that the slight increase of the 90 gallon container was not
out of line since it was small, and that our refuse prices have
not increased for quite some time.
o When will the rates be permanently set?
Staff does not have an exact date as to when it will request that
rates be permanently set. We need to wait to receive the new
truck, mail postcards, order and deliver containers and change
the billing system. 5taff estimates however, that it will be
sometime in July.
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� CITY OF HOPKIN5
Hennepin County, Minnesota
RESOLUTION NO. 94-105
RESOLUTION ESTABLISHING NEW
REFUSE RATES EFFECTIVE JANUARY 1, 1995
WHEREAS, the City of Hopkins has been working over the last year
to establish a volume based refuse collection system; and
WHEREAS, the City Council gave preliminary approval of the new
volume based rates on March 10, 1994; and
WHEREAS, the city has recently determined that these new rates
should be effective January l, 1995.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City
of Hopkins, Minnesota hereby establishes the following
refuse rates:
Refuse/Recycle/Yd Waste (w/o taxes)
� 30 gallon $13.25
60 gallon $15.50
90 gallon $17.75
to be effective on January 1, 1995, and directs staff to
make the necessary billing changes.
Adopted by the City Council of the City of Hopkins this 1st day
of November, 1994.
BY
Charles D. Redepenning, Mayor
ATTEST:
Jim Genellie, City Clerk
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