Minutes - Council - 08/28/1990 - Laserfiche WebLink

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Waste Management of Minnesota, Inc.'s request for a reduction in the landfill tipping fee. The financial analysis prepared by City Staff was based on numbers provided by Waste Management and indicate that Waste Management's contract with Hennepin County would consume less than 2% of the remaining capacity of the landfill and the financial impact to the City would be a loss in revenue in the range of $50,000.00 to $200,0000.00 or more. Mr. Hartley stated that today City Staff received from Don Otter of Waste Management, corrections to the numbers originally supplied to City Staff relating to the remaining capacity at the landfill in terms of cubic yards and tonnage which Waste Management feels supports their claim that the Hennepin County contract represents 10.61% of the fill coming into the facility. Mr. Hartley stated that City Staff continues to recommend denial of Waste Management's request for reduction in the tipping fee. Mr. Otter proceeded to review with City Council his financial breakdown relating to the request for a reduction in the tipping fee. (See Attachment 1) Mr. Otter noted that his financial breakdown indicates that if the additional volume at the site is gained due to the reduction in tipping fee, the City would receive $185,758.00 in revenue versus the $151,000.00 in revenue the City would have gained under current in-coming volume rates. Mr. Otter explained that the taxes at the landf'fll have increased 524% since April, 1986 and that situation is putting the landfill in a non-competitive status. Mr, Otter stated that he is willing to have a condition placed on the reduction of the tipping fee whereby the reduction would not be realized unless an additional 100 tons per day of volume is realized on a monthly average. Mr. Hartley asked Council to consider points raised at the last Council meeting that are non- financial related. If another landfill in this northern area is discontinued because they cannot stay in business, it then places greater emphasis on the siting of Site "P" in Ramsey. The landfill Don Otter and Waste Management are in competition with is across Ramsey's corporate borders and outside of the Metro Area and does not have the resources that Waste Management has and has stated that they may well close or fail to operate if they do not receive the Hennepin County contract. Regarding Mr. Otter's statement that he cannot fairly compete in the open market for waste because of taxes, the same argument could be made of a homeowner who says he cannot locate in Ramsey because of taxes. Mr. Hartley stated that it is simply a case of having a fixed amount of volume with a fixed revenue for that fixed amount and if you reduce the fee, you will receive less. Mr. Otter referred to Council's action two weeks ago to approve proceeding with airport improvements and noted that if the landfill doesn't fill to capacity, he doesnft know the status of the legal ramifications of continuing the landfill and developing an airport. Mr. Otter stated that Waste Management is requesting a reduction to receive the fill and complete the site. Mr. Otter also referred to Mr. Hartley's comparison of taxes and stated that the average homeowners taxes have not increased 524% since 1986. Mr. Douglas Fountain, 15255 Garnet Street N.W. - stated that if Waste Management's proposal accomplishes sooner fulfillment of their capacity, he feels the City should approve their request. Mr. Hartley inquired if other landfills have reduced their tipping fees. Mr. Otter replied that the other landfills have not reduced their tipping fees. Mr. Otter noted that the Ramsey site currently does not have the lowest tipping fee and he does not believe that the proposed reduction will make Ramsey's site the one with the lowest tipping fee. Mr. Hartley inquired as to Mr. Otter's intentions when Elk River considers a reduction in their fees. City Council/August 28, 1990 Page 9 of 14