Agenda - Council - 06/23/1981 - Laserfiche WebLink

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2. Public Waste Processing versus Private Waste Processing Since there are currently no major resource recovery facili- ties in the Region which process mixed municipal waste, the first one or two major facilities will essentially set the basis for the Area's recovery system. Therefore, these first facility proposals must be examined very closely to determine the effect on existing and future systems, both public and private. In this situation the potential conflict can be resolved by adjusting tipping fees, waste supply streams and operating capacity of the facility to ensure competitive operation. These matters should be resolved during the planning stages of proposed facilities. The Council will analyze for potential conflicts between public and private waste facilities at the time it reviews the facility permit application. The Council's approval of permits may be subject to conditions necessary to ensure competitive operation between public and private waste facilities. (THE REVIEW IS INTENDED TO ENSURE THAT OPERATING REVENUES (INCLUDING THOSE FROM DR~-~ CHARGES OR OTHER USER FEES AND THE SALE OF RECOVERED ENERGY AND MATERIAL) WILL BE ADEQUATE TO ~AY ALL CAPITAL AND OPERATING COSTS OF A PUBLICLY UNDERWRITTEN ~-~CILITY, EXCEPT CAPITAL COSTS PAID FROM APPROVED FEDERAL OR STATE GRANTS OR OTHER FUNDS. WHILE ALL PROPOSED FACILITIES SHOULD BE ANALYZED TO DE~ERMINE WHETHER THEY CAN SURVIVE ECONOMICALLY, THE LEGISLATURE CLEARLY INTENDED THAT THE ECONOMICS OF PUBLIC BACKED FACILITIES BE SPECIFICALLY AND CRITICALLY REVIE~--~. IF PROPERTY TAX REVENUES ARE PLEDGED, THE PUBLIC SHOULD BE ASSURED, TO THE EXTENT POSSIBLE, THAT PROPERTY TAXES WILL NOT H~--VE TO BE US~-~ TO BAIL O~T AN INEFFICIENT OPERATION.) (TWO FINANCIAL SELF-SUFFICIENCY REVIEW REQUIREMENT~ ARE CONTAINED IN THE METROPOLITAN SOLID WASTE ACT. FIRST, MINNESOTA STATUTES, SECTION 473.149, SUBDIVISION 1, PROVIDES THAT "FOR WASTE FACILITIES OWNED OR OPERATED BY PUBLIC AGENCIES OR SUPPORTED PRIMARILY BY PUBLIC FUNDS OR OBLIGATIONS, THE PLAN SHALL INCLUDE ADDITIONAL CRIT~-~IA AND STANDARDS RESPECTING FINANCIAL SELF-SUFFICIENCY BASED UPON COMPETITIVE RATES AND CHARGES." SECOND~ MINNESOTA STATUTES~ ~ECTION 473.823, SUBDIVI- SION 3, PROVIDES THAT "NO PERMIT MAY BE ISSUED IN THE METROPOLITAN AREA FOR A WASTE FACILITY USED ~RIMARILY FOR RESOURCE RECOVERY IF THE FACILITY ~R __SITE __IS OWNED AND OPERATED BY A PUBLIC AGENCY OR) -- Proposed facilities secured by.public.f~d~ or obligations should not only be operated on a competitive basis with comparable private facilities, but they should be financially self-sufficient as well. If the acquisition or betterment of (THE) a facility or site is secured by public funds or obli~a~-~o~-~ p~edginq the full ~-~t~ and credit or taxin~ powers of a city, county~ or town, (UNLESS THE-- COUNCIL FINDS THAT ADEQUATE MARKETS EXIST FOR THE PRODUCTS RECOVERED WITHOUT SUBSTANTIALLY REDUCING THE SUPPLY OF SOLID WASTE AVAILABLE FOR EXISTING RESOURCE RECOVERY OPERATIONS, AND THAT ALL) the facility or site's costs of operation, administration, maintenance and debt service (WILL) should be covered by reasonable rates and charges for the use of the facility. If property tax revenues are pledged, the publ~ should be assured, to the extent possible, that property taxes will not have to be used to bail out an inefficient operation.