Minutes - Council - 09/25/1990 - Laserfiche WebLink

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Reimann commented he noticed Ace Sanitation bid $4.75 to do the billing. He stated he knew Ace had been in the business quite a few years and he was curious what type of system they have for billing and what it costs. Mr. Warden explained that he bid $4.75 figuring that 25% of the people would be participating and that you couldn't bill someone you were not doing the service for. Mayor Reimann stated he was under the impression that the recycling program would be City wide and there would be a charge, per household, regardless if the resident participated or not. Mr. Hartley stated that was correct. Councilmember DeLuca mentioned the conversation regarding having the County bill recycling together with special assessments. He wanted to know if this would affect levy limits. Mr. Hartley answered that it would not affect the levy limits. Councilmember DeLuca commented that if the Landfill Tipping Fee is the funding source for this program and the Tipping Fee is being reduced, he feels it doesn't make sense. Mayor Reimann stated that the revenue source might not be available down the line, but that it was agreed upon to fund from the Landfill Tipping Fee to get the program implemented and that the residents would have to be charged later for the services. Councilmember DeLuca stated it still doesn't make sense. There is an undesignated balance of $646,000.00 in the Landfill Tipping Fee Fund. $646,000.00 at 8% interest would pay the annual cost indefinitely provided the principal remains. This fund set up to reduce and mitigate the effects of the landfill. Mr. Hartley stated that the bulk of the Landfill Tipping Fee Fund can be used for just about anything and that it has always been the City's policy to not spend the money on anything that did not have a direct relationship with landfill mitigation. Mr. Jim Gilbertson asked for clarification on the statement regarding litigation. Mr. Hartley stated the word is mitigation, not litigation. Councilmember DeLuca commented that the concept of having contact with the residents makes sense whether we do the billing now or at a later date. Councilmember Cich strongly stated that the City is not prepared in personnel power or expertise to handle the billing right now. Mayor Reimann stated he feels the City should pick up the cost using the Landfill Tipping Fee for six months to a year to get the program off the ground. Councilmember DeLuca stated he was in favor of trying it at $1.15 per household per month with no billing cost for six months due to paying for the program out of the Landfill Tipping Fee. Mayor Reimann stated that the program has been going on for over a year in Flintwood Hills, Ramsey Terrace and River's Bend additions with the City funding it and he feels the remainder of the residents should be allowed to participate for awhile at no cost to them. Upon inquiry regarding those additions already receiving recycling service, Merland Otto, Hakanson Anderson, stated that there were 50 to 75% of these households participating at the end of one year. He commented that 25% participation in the first year is considered successful. Councilmember Cich inquired if it was State law required city wide curbside recycling, what would happen if some people still put their recyclables in the regular trash barrel. Mr. Hartley stated that recycling has to be offered to all residents city wide, however, it is not mandatory each resident recycle. Ellen Stanley suggested the recycling and trash pick-up be a combined effort. This would avoid having two trucks coming on different days. Mr. Warden stated that nothing was available right now that could combine the services. The trash and the recyclables have to be put in separate containers and picked up with different vehicles. Jim Gilbertson commented that the City of Minneapolis has something called tagalongs for picking up recycling. Mayor Reimann asked if it was the consensus of the Council to have the City pick up the cost of the program for six months at $1.15 and see what the participation percentage is. The Council responded positively. Mr. Hartley stated that whatever way the Council decides to go, the program has to be funded somehow and the money is needed right away. The City can't gear up immediately to do the billing on the computer system and staff is not representing it that way. Councilmember Cich argued that the implication for the new software was there. Mr. Hartley stated that it was not. Councilmember Cich asked what would happen after six months. Mr. Hartley stated that was a good point. If the plan is to do the billing in-house, then a lot has to happen within that time frame, however, if the plan is to have someone else do the billing, the bids have to be reconsidered. Councilmember DeLuca stated that if at the end of six months, staff can't come up with City billing, the program should continue for the next six months on the same funding source and then recontract. Mayor Reimann stated that it should be funded for a year. At the end of the year, the hauler would know if his bid was profitable or not to bid again. Councilmember DeLuca stated that if the program is funded through City Council/September 25, 1990 Page 14 of 20