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

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66 The (SOLID) Waste Management Act authorizes the Council to review and approve public agency solid waste supply and processing contracts. The criteria in this section are to be used for those reviews. Pri- vate entity contracts will be reviewed according to other criteria in the Guide chapter that deal with economic viability. In assessing the effect of a supply contract on collection rates and charges, the Council will examine 1) the effect of contract provi- sions on the cost of service and value of the waste supply; 2) the effect of the contract on collection rates and charges in other gov- ernmental jurisdictions in the Region; and 3) the governmental unit's collection rates and charges when there is no long-term contract. The effect of supply contracts on local collection rates and charges will be judged in light of anticipated sanitary landfill cost increases. Resource recovery is a relatively new waste management strategy, and starting a new operation typically entails a certain amount of eco- nomic inefficiency. For these reasons, the Council's review of solid waste supply contracts will focus on the long-term effects on collec- tion and disposal rates. An absolute and immediate dollar saving in local collection rates and charges will not be a prerequisite for contract approval. Supply contracts should incorporate flexible payment mechanisms to ensure long-term rate and charge benefits. Various mechanisms can be used, ranging from periodic price renegotlations to price formulas tied to changing operating costs and/or recovered materials prices. Local governments and waste facility owners are encouraged to explore all possibilities in this area. There appears to be no reason for treating local government contracts differently from public or private waste facilities. Consequently, the Council's review of local government contracts with public and private entities will be the same. The Council will analyze local government supply and processing con- tracts at the same time it reviews the facility's permit application (Minnesota Statutes Section 473.813, Subdivsion 2). Approval of a contract will depend on approval of the facility's permit applica- tion. In addition, the Council will review the duration of waste supply contracts needed to operate proposed resource recovery facilities identified in approved county solid (AND HAZARDOUS) waste management plans. Objectives 9a. Protect the supply of solid waste available to existing resource recovery facilities and proposed recovery facilities in adopted county master plans. 9b. Minimize the adverse effect on collection rates and charges of local governmental unit contracts for the delivery of solid waste to a resource recovery facility.