Agenda - Council - 08/14/1990 - Laserfiche WebLink

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fl I I I I I I I I I CASE REQUEST OF WASTE MANAGEMENT OF MINNESOTA FOR A IN THE LANDFILL TIPPING FEE By: David R. Hartley, City Administrator REDUCTION Background: Waste Management of Minnesota, Inc. is, by its letter (enclosed), requesting that the City of Ramsey reduce it's tipping fee from $3.33 per ton to $1.33 per ton for the purpose of encouraging added fill to be placed in the Anoka Sanitary Landfill. On July 15, 1990, Anoka County took action to rebate Hennepin County $4.36 per ton of waste to assist Waste Management of Minnesota in its efforts to win from the Elk River Sanitary Landfill the contract for waste disposal. This action started a bidding cycle that has recently been countered by Sherburne County and Elk River in an effort to save the local business of Chris Kreger (the Elk River LandFill, see attached articles from the Elk River Newspaper), from the aggressive actions of Anoka County. Waste Management of Minnesota is now asking the City of Ramsey to enter into yet another bidding cycle for the purposes stated in the letter from Don Otter. Issues related to this request are: 1) Royalty revenue generated by the 10% of landfill income. 2) Conditional Use Permit of November 15, 1988. 3) Site "P", future site for landfill. 4) Possible closure of the Elk River Landfill. Royal _fy R~venue Generated by the 10% of Landfill Income The City of Ramsey entered into an agreement with Waste Management of Minnesota, Inc. for the sale of the Anoka Sanitary Landf'fll property. That agreement stipulated the price of the landfill to include a royalty payment to the City of Ramsey and the City of Anoka in an amount of 10% of the gross income after taxes until the landfill reaches capacity. With a fixed capacity the rate charged for landfilling determines the amount of royalty the City receives. The volume landfilled in any given month determines when we will receive these royalties. With the trend for the cost of landfilling increasing over time (sometimes at the rate of over 100%) the City of Ramsey will realize a greater revenue in later years. An example of this is when Waste Management of Minnesota, Inc. reduced it's fee to Hennepin County from $34.82 per ton to $27.00 per ton. The loss to the City in revenue would be $145,000.00 to $200,000.00 depending upon the remaining capacity. Conditional Use Permit of November 15, 1988 On November 15, 1988 the City of Ramsey issued a Conditional Use Permit (CUP) to Waste Management of Minnesota for the property it owns and operates as a landfill. That Conditional Use Permit was granted for a specified time of three years with four - six month extensions, or in other words, a five year period. Conditional Use Permits are granted under Minnesota Law for uses that are not specifically permitted but are consistent with underlying zoning. Conditional Use Permits last for as long as the use with the exception of uses that involve a finite capacity such as grading and mining, or in the case of the landfill, until the permitted capaci .ty is reached.