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CASE #4 <br /> <br />FOR <br /> <br /> REQUEST OF WASTE MANAGEMENT <br />A REDUCTION IN THE LANDFILL TIPPING FEE <br /> By: Sandra G. Ashley, Finance Officer <br /> <br />Background: <br /> <br />At the Council meeting of August 14,1990, Waste Management of Minnesota's request for a <br />reduction of the City's tipping fee from $3.33 to $1.33 per ton was discussed. If this request is <br />granted, Waste Management stated they would also reduce the landfill fee by at least the same <br />amount - exclusive of taxes. As pointed out by our City Administrator, these combined actions <br />would result in a reduction in the City's tipping fee revenue per unit (ton or cubic yard), and the <br />City's royalty revenue which is generated by 10% of the landf'fll income. The Council requested a <br />financial analysis be performed to determine the short and long-term potential financial impact to <br />the City of Ramsey. <br /> <br />To provide a meaningful analysis, I requested the following information from Terry Miller of <br />Waste Management of Minnesota: <br /> <br />1) <br />2) <br /> <br />3) <br /> <br />Estimate as to the remaining capacity at the landfill. <br />The estimated volume that would be generated due <br />to this price reduction, and the time frame for this <br />reduction. <br />The landfill's fee (exclusive of taxes) on a per ton <br />or cubic yard basis for the last five(5) years. <br /> <br />Mr. Miller stated that Mr. Don Otter would be the person to provide this information. Mr. Otter <br />contacted me Tuesday afternoon and advised Mr. Miller would bring this information over to me <br />on Wednesday, August 22, 1990. I explained that the agenda packet for this meeting closed <br />Wednesday at 5:00 P.M., and that I would need some time to prepare the requested financial <br />analysis. It had been my intent to complete this analysis Wednesday evening if necessary, and have <br />it ready for the agenda processing first thing Thursday morning. <br /> <br />It is now after 5:00 P.M. on Wednesday, and no information has been received. I suspect the <br />information asked for is taking longer to gather than was anticipated; however, Waste <br />Management's estimates in this regard are critical to any meaningful discussion and analysis. <br /> <br />Recommendation: <br /> <br />I recommend the Council delay any action on this request until the next Council meeting. By this <br />time we should have received the information from Waste Management of Minnesota and a <br />meaningful analysis as to the potential short and long-term financial impact to the City of Ramsey <br />can be completed. If time permits, the analysis could be reviewed by Waste Mangement personnel <br />and City staff before the next Council meeting. In this way, any differences in assumptions or <br />impact could be discussed and perhaps resolved before the meeting. <br /> <br />Council Action: <br /> <br />Based upon discussion. <br />Review Checklist: <br /> <br />City Administrator X <br />City Attorney X <br />City Engineer <br />Acting Community Development Dir X <br />Public Works Supervisor <br /> <br />Chief of Police <br />Finance Officer <br />Planning & Zoning Commission <br />Park & Recreation Commission <br /> <br />X <br /> <br /> <br />