Agenda - Parks and Recreation Commission - 12/13/1990

Home

Mr. Otter reptied that he wilt not establish a bidding war for solid waste: he is looking to fulfill the conditional use permit conditions and comply with environmental aspects. Councitmember Pearson inquired if the CiD' would realize any royahies if Waste ,Managemen', forced to complete the site with fill versus waste. Mr. Hartley replied that the royalD' pa>wnent Ramsey receives is based on gross revenue and if the material used to fill the site is non-revenue producing, the City will not get a royalty or a tipping fee. Mr. Hartley noted that according to Mr. Otter's figures, what is being discussed represents about 10% of Waste Management's business and it is fair to assume that Waste Management is in the business of puffing waste in landfills, not soils. Mr. Otter stated that under the current fill-rates, it will take ten years to complete the site at 250 tons per day. The additional volume plus more is needed to achieve capacity. Mr. Hartley inquired if Waste Management would go out of business without the Hennepin County contract. Mr. Otter stated that it doesn't make economic sense to stay in business without Hennepin County's contract. Mr. Otter also noted that he ,,,,,ill not sa5' that without Hennepin County's contract, the site will go out of business; he is at the Council meeting to ask for the City's help. Councilmember DeLuca stated that in considering Waste Management's request, the City is basically looking at competing with the Elk River facility for solid waste. Councilmember DeLuca stated that Ramsey has a neighboring community with which the City is continually in the process of developing a relationship with. Ramsey has a mutual aid fire a~eement with the City of Elk River, Ramsey has an intermingled school district with Elk River and if the City takes action to reduce the tipping fee, it is setting up a situation of being in direct competition with Elk River and deter/orating a "good neighbor policy" with that community. Mr. Otter replied that he believes some of the total waste available from Hennepin County would continue to go to the Elk River facility. Mr. Otter stated that he also doesn't believe that Eik River landfill has a limit on its conditional use permit promised to its citizens for completion. Mr. Otter reiterated that the request for reduction in tipping fee is an attempt to close the Ramsey facility on time. Councilmember Cich stated that closing the Ramse3' facility on schedule means more than the amount of revenue received. Councilmernber DeLuca inquired as to who would be responsible for the reduction in tipping fee realized bv the various haulers during the course of the month ff at the end of the month the 100 ton average da_it,,, balance from Hennepin Count}' was nor realized and the reduced fee did not apply for that month. Mr. Otter stated that Waste Management would pay the additional taxes if the additional 100 ton voiume suo~. was not met for any particular month. Mayor Reimann noted that even though the site will not meet its completion date even with the additional volume rec. eN, ed because of the r~ucfion in tipping fee. it may ~: wo:%whiie to reduce the fee for ~at i i month uiat period to attempt to ~e: that addifion~ volume even though the City Council%ugust 28, 1990 Page 10 of ].: I ! ! ! ! ! !