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Mr. Otter replied that he will not establish a bidding war for solid waste; he is looking to fulfill the <br />conditional use permit conditions and comply with environmental aspects. <br /> <br />Councilmember Pearson inquired if the City would realize any royalties if Waste Management was <br />forced to complete the site with fill versus waste. <br /> <br />Mr. Hartley replied that the royalty payment Ramsey receives is based on gross revenue and if the <br />material used to fill the site is non-revenue producing, the City will not get a royalty or a tipping <br />fee. Mr. Harttey noted that according to Mr. Otter's figures, what is being discussed represents <br />about 10% of Waste Management's business and it is fair to assume that Waste Management is in <br />the business of putting waste in landfills, not soils. <br /> <br />Mr. Otter stated that under the current fill-rates, it will take ten years to complete the site at 250 tons <br />per day. The additional volume plus more is needed to achieve capacity. <br /> <br />Mr. Hartley inquired if Waste Management would go out of business without the Hennepin <br />County contract. <br /> <br />Mr. Otter stated that it doesn't make economic sense to stay in business without Hennepin <br />County's contract. Mr. Otter also noted that he will not say that without Hennepin County's <br />contract, the site will go out of business; he is at the Council meeting to ask for the City's help. <br /> <br />Councilmember DeLuca stated that in considering Waste Management's request, the City is <br />basically looking at competing with the Elk River facility for solid waste. Councilmember DeLuca <br />stated that Rarnsey has a neighboring community with which the City is continually in the process <br />of developing a relationship with. Ramsey has a mutual aid fire agreement with the City of Elk <br />River, Ramsey has an intermingled school district with Elk River and if the City takes action to <br />reduce the tipping fee, it is setting up a situation of being in direct competition with Elk River and <br />deteriorating a "good neighbor policy" with that community. <br /> <br />Mr~ Otter replied that he believes some of the total waste available from Hennepin County would <br />continue to go to the Elk River facility. Mr. Otter stated that he also doesn't believe that Elk River <br />landfill has a limit on its conditional use permit promised to its citizens for completion. Mr. Otter <br />reiterated that the request for reduction in tipping fee is an attempt to close the Ramsey facility on <br />time. <br /> <br />Councitmember Cich stated that closing the Ramsey facility on schedule means more than the <br />amount of revenue received. <br /> <br />Councilmember DeLuca inquired as to who would be responsible for the reduction in tipping fee <br />real/zed by the various haulers during the course of the month if at the end of the month the 100 ton <br />average daily balance from Hennepin County was not realized and the reduced fee did not apply for <br />that month. <br /> <br />Mr. Otter stated that Waste Management would pay the additional taxes if the additional 100 ton <br />volume quota was not met for any particular month. <br /> <br />Mayor Reimann noted that even though the site will not meet its completion date even with the <br />additional volume received because of the reduction in tipping fee, it may be worthwhile to reduce <br />the fee for that 11 month trial period to attempt to get that additional volume even though the City <br />would be sacrificing some revenue. <br /> <br />Mr. Hartley noted that City Council authorized an expenditure of up to $100,000.00 to be used in <br />opposing Site "P" and now the City Council is attempting to atu:act more volume to the landfill in <br /> <br />City Council/August 28, 1990 <br /> Page 10 of 14 <br /> <br /> <br />