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In summary: <br /> <br />Overall, assuming the landfill will continue to operate for the next <br />seven years or until capacity is reached, granting Waste <br />Management's request would permanently reduce the City's potential <br />revenue in the range of $50,000 to $200,000 or more. The true <br />impact would depend upon when the volume would ordinarily be <br />realized, and the disposal rates at the landfill at that time. <br /> <br />This analysis assumes that the landfill will continue to operate until <br />the capacity is consumed, and this assumption will most likely be <br />disputed by Waste Management. As with any business, their <br />decision will be made based on the landfill's ability to provide an <br />acceptable return on investment. However, the Hennepin County <br />contract's volume would not make a significant contribution to <br />reducing the remaining capacity at the landfill. As stated earlier, this <br />contract would represent less than 2% of the remaining capacity. <br /> <br />Recommendation: <br /> <br />At the council meeting of August 14, 1990, staff recommended <br />council deny Waste Management's request for a reduction in the <br />tipping fee from $3.33 per ton to $1.33 per ton. With time value of <br />money, receipt of revenue now versus years from now is many times <br />worthwhile. In this instance, the numbers do not support the <br />request. Staff continues to recommend council deny Waste <br />Management's request for a reduction in the tipping fee. <br /> <br />Council Action: <br /> <br />Based upon discussion. <br /> <br />Review Checklist: <br /> <br />City Administrator _X_ <br />City Attorney X <br />City Engineer <br />Acting Community Dev. Director X <br /> <br />Chief of Police <br />Finance Officer X <br />Other <br /> <br /> <br />