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HomeMy WebLinkAbout04.05.21 Work Session Packet CITY OF Meeting Location: FARMINGTONFarmington City Hall �-■■��,,,� 430 Third Street Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA April 5, 2021 5:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Solid Waste Operations Discussion (50 Minutes) (b) 2020 1 nterfund Transfers Review and Expenditures Discussion (30 Minutes) 4. CITY ADMINISTRATOR UPDATE S. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, PWD/City Engineer SUBJECT: Solid Waste Operations Discussion (50 Minutes) DATE: April 5, 2021 INTRODUCTION At the February work session,the discussion on solid waste operations was postponed to the April work session. The materials from the agenda packet have been included for quick reference. I n addition,the financial model draft from the October 2020 work session has been included. DISCUSSION N/A BUDGET IMPACT N/A ACTION REQUESTED N/A ATTACHMENTS: Type Description D Cover Memo Cover Memo D Backup Material 2021 Solid Waste Fund Financial Model D Backup Material MPCA Solid Waste Policy Regulatory Summary D Backup Material 2017 Metro Plan Summary D Backup Material Dakota County Master Plan Appendix D D Backup Material LMC City Solid Waste Management D Backup Material Dakota County Organics Drop Site Request CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, Public Works Director/City Engineer SUBJECT: Discussion Related to the Solid Waste Operations DATE: February 8, 2021 INTRODUCTION In 2019 the city reviewed solid waste delivery given industry volatility and upcoming regulatory changes and moved services forward with the direction to review operations again during 2021. This work session item is intended to provide background information on the industry of solid waste and review our current operations with respect to changing regulatory mechanisms,status of contracts and discuss approaches to moving forward into 2022. DISCUSSION SOLID WASTE REGULATORY OVERVIEW The Solid Waste industry has a structured regulatory hierarchy established by the Waste Management Act and includes state and county oversight of both public and private operations. At the state level the Minnesota Pollution Control Agency(MPCA) is charged with reviewing progress with meeting solid waste goals as established by the Waste Management Act. Every four years MPCA reviews and updates the Solid Waste Policy last updated in December 2019. In partnership with this state-wide policy,the Metropolitan Waste Management Policy is reviewed and updated every six years. This plan focusses on the seven-county metro area and addresses goals that differ from outstate counties. This policy was last adpoted in March 2017 and the MPCA will begin the process to complete the 2022 update in early 2021. The introduction and purpose of this plan is attached. Lastly the county must create a Solid Waste Management Plan every five years that details implementation strategies for meeting policies prescribed in the state and metro plan. This plan was last updated in July 2018. Appendix D, Performance and Accountability, is attached that highlights the level of oversight the county will be completing over the remaining plan cycle. The intent of the regulatory review at the work session is to understand the pressures within the industry most notably on processing requirements and enforcement efforts within these plans. We have experienced the impact of these shifts over the last year and a half. Both public and private sides of the industry will continue to see these changes over the next planning cycle. Within the regulatory framework,the council's goal is to review options to meet our municipal responsibilities specific to collection and disposal. The League of Minnesota Cities has prepared a guidance document that provides a good overview of City responsibilities and options for solid waste. Specifically,the guide reviews the two main types of collection,open and organized,where organized collection can be accomplished as a municipal service or by contract. Farmington has had an organized system since 1947. Currently a mixed system is used where collection of municipal solid waste (trash) is completed as a municipal service and recycling is collected by contract. Since the city provides solid waste as a service,the solid waste fund supports shared expenses like the other enterprise funds. In total solid waste provides funding for about$330,000 in expenses including utility billing, facilities operations,fleet operations, IT, insurance and administrative costs. This equates to roughly 3.0%of the general fund budget. In addition,there are expenses in the solid waste budget that cover permitting/reporting requirements to meet the County's Solid Waste Management Plan. Some of these expenses are covered by county funding,while a portion is supported by city funds. SOLID WASTE CONTRACTS Over the last three years we have seen several changes in available disposal options for both trash and recycling. Waste Processing—Over the last solid waste planning cycle,we have experienced a push from the state to ensure that waste processing capacity(waste-to-energy) is being utilized across the metro district. In 2019,the Red Wing Resource Recovery site completed an expansion that opened up processing capacity. Farmington worked with Red Wing to contract for processing of waste at the expanded facility. At the same time, Red Wing, Farmington and DSI worked on an agreement for the transportation of Farmington waste to the Red Wing site with the return trip paid by Red Wing for hauling material they could not process back to a metro landfill. The contracts were initially set up on a two-year period to allow review after the start-up stages, but envisioned a long-term relationship. These contracts will need to be renewed at the end of 2021. Staff last reviewed the status of operations with Red Wing at the end of 2020. As with many organizations, 2020 was an unusual year due to the pandemic. That being said,what 2020 did show us was that the backhaul arrangement worked well and for every Farmington trip to Red Wing,there was a trip Red Wing used back to the metro. As we head into 2021, Red Wing will review the first half financials in July and we will be ready to discuss future agreements in August. Recycling—The city has maintained a contract with Dick's Sanitation (DSI)since 1995 for the collection and processing of recyclables. The most recent version of this contract will expire at the end of 2021. Per the new Dakota County ordinance requirements,weekly recycling will need to be offered starting January 1,2022. Typically,the city has entered into a five-year contract for recycling services. Staff will review these issues, answer any questions and seeks direction on proceeding with contract negotiations. DAKOTA COUNTY PROGRAMS UPDATES Staff will take some time to review the following programs at the work session. Waste Abatement Agreement- Per the new County ordinance, cities are required to complete waste abatement activities in line with their Solid Waste Master Plan. To ensure compliance with the required waste abatement activities and to offer partial funding,the county offers a grant arrangement. The program is performance-based and Base Funding will be available for required activities including administration, residential communications, municipal facilities/Parks,verification &education,and special collections. There are also supplemental funding opportunities available as opt in options. Organics Drop-off Site—The county approached cities in the hope to find partnerships in establishing new organics drop-off sites within the county. The program summary is attached. Staff has had initial conversations with the county and intends to bring forward a contract for the council to consider in the first Quarter of 2021. FUND 6300 - Solid Waste Enterprise Fund DRAFT 10/8/2020 Financial Plan Summary Service Details 2020 2021 2022 2023 2024 2025 24,300 24,700 25,100 25,500 25,900 26,300 New Households 128 138 138 138 138 138 Solid Waste Generated,Tons 8,027 8,167 8,310 8,456 8,604 8,754 Rolloff Pickups 452 460 468 476 484 493 Rolloffs Tons Disposed 307 312 317 323 329 334 Disposal Cost,$per Ton $130 $128 $132 $136 $140 $145 Solid Waste Rates Rate by Container Size 30 $59.20 $62.16 $71.49 $74.35 $77.32 $80.41 60 $73.36 $77.03 $88.58 $92.12 $95.81 $99.64 90 $86.23 $90.54 $104.12 $108.29 $112.62 $117.12 120 $103.60 $108.78 $125.10 $130.11 $135.31 $140.72 150 $116.47 $122.30 $140.64 $146.27 $152.12 $158.20 180 $130.63 $137.16 $157.74 $164.05 $170.61 $177.43 210 $146.07 $153.38 $176.38 $183.44 $190.78 $198.41 240 $157.66 $165.54 $190.37 $197.99 $205.91 $214.14 270 $170.53 $179.05 $205.91 $214.15 $222.71 $231.62 300 $207.21 $217.57 $250.20 $260.21 $270.62 $281.44 600 $359.07 $377.03 $433.58 $450.92 $468.96 $487.72 900 $510.94 $536.49 $616.96 $641.64 $667.30 $693.99 1200 $662.81 $695.95 $800.34 $832.35 $865.64 $900.27 1500 $814.67 $855.40 $983.72 $1,023.06 $1,063.99 $1,106.55 1800 $966.54 $1,014.86 $1,167.09 $1,213.78 $1,262.33 $1,312.82 Rolloff Pickup Chargel $143.00 $150.15 172.67 179.58 186.76 194.23 Disposal Fee for Rolloffs,per Ton $130.00 1 $128.00 1 132.14 136.28 140.41 144.55 Beginning Fund Balance: $ 1,327,471 $ 977,558 753,417 383,826 $ 557,824 $ 416,048 Revenues Enterprise Sales $ 2,415,453 $ 2,581,185 $ 3,020,065 $ 3,194,638 $ 3,378,344 $ 3,571,636 County Community Funding $ 30,300 $ 30,603 $ 30,909 $ 31,218 $ 31,530 $ 31,846 Other Revenue(Interest,Permits,Advertising,etc.) $ 10,506 $ 10,821 $ 11,146 $ 11,480 $ 11,825 $ 12,179 Total Revenues 1$ 2,456,259 $ 2,622,609 $ 3,062,119 $ 3,237,336 $ 3,421,699 $ 3,615,661 Expenses Operating Expenses $ 878,789 $ 905,153 $ 932,308 $ 960,277 $ 989,085 $ 1,018,758 Transfers Operating(personnel) $ 145,811 $ 113,563 $ 116,970 $ 120,479 $ 124,093 $ 127,816 Potential HR Staff Allocation Shift $ 43,000 $ 44,290 $ 45,619 $ 46,987 $ 48,397 Disposal Costs(i.e.Tipping Fees) $ 1,043,475 $ 1,045,401 $ 1,098,082 $ 1,152,287 $ 1,208,053 $ 1,265,418 Contract Recycling $ 738,097 $ 739,632 $ 761,821 $ 784,676 $ 808,216 $ 832,462 ,Capital lmprovements $ - $ - $ 478,240 $ - $ 387,040 $ - Total Expenses $ 2,806,172 $ 2,846,749 $ 3,431,711 $ 3,063,338 $ 3,563,475 $ 3,292,851 Annual 416,048 $ 738,858 Minimum Fund Balance Goal $ 701,5431 $ 711,687 1 $ 738,368 1 $ 765,8341 $ 794,1091 $ 823,213 3 Mo.Operating $ 701,543 1$ 711,687 1 $ 738,368 1 $ 765,834 1 $ 794,109 1 $ 823,213 Rate Variables Incease 1 Increase 2 Increase 3 Increase 4 Rate Increase Year 2019 2020 2021 2022 Rate Increase Per Connection,% 10% 17% 5% 15% Default Rate Increase if not Defined Above 4.00% General Variables Estimated Persons Per Household 2.9 2.9 persons per household used for 2040 Comprehensive Plan O&M Yearly Percent Increase 3.0% Assume 3%inflationary increase Annual Inflationary Percent Increase 3.0% Applied to Transfers(Admin.,PW)and Other Revenue Estimated increase in Tonage Disposed 1.75% Average annual increase during 2011-2017 FARMINGTON Municipal Solid waste Disposal Costs and Tons By Year $1,200,000 10,000 $1,100,000 9,000 $1,000,000 8,000 N $900,000 7,000 O �n N $800,000 6,000 0 0 U � M $700,000 5,000 0 Q Q U $600,000 4,000 0 I— $500,000 3,000 a ��Total Disposal Cost $400,000 - 2,000 �an•Estimated 2021 Disposal Costs $300,000 --40--Total Tons Disposed 1,000 ••Estimated 2021 Tons Disposed $200,000 __ __._ _.._.. ._ _.:_... _ _ _ . .__ 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Minnesota's current solid waste system and dynamics The Minnesota Waste Management Act (WMA, Minn. Stat §115A.02) Adopted in 1980,the WMA established criteria for managing solid waste.The goal of the act is to protect Minnesota's land, air,water, and other natural resources and public health by: • reducing the amount and toxicity of waste generated. Minnesota's waste hierarchy • separating and recovering materials and energy from waste. • reducing indiscriminate dependence on disposal of waste. Most preferred �-� 0 • coordinating solid waste management among political environmental option •- subdivisions. • developing waste facilities in an orderly and deliberate way. The waste management hierarchy Composting Leash preferred The WMA also fosters an integrated waste management system in a environmental manner appropriate to the characteristics of the solid waste stream. option Based on environmental factors,the waste management hierarchy (Figure 1) prioritizes waste reduction, reuse, recycling,and organics Figure 1.The Solid Waste Hierarchy recovery above methods that preclude further use of the materials, prioritizes prevention(or reduction of including waste-to-energy (WTE) (burning refuse to recover fuel or waste),then reuse, recycling,organics energy) and land disposal. recycling,WTE,and landfilling, in that order. Roles and requirements In Minnesota,the responsibility of managing solid waste is primarily delegated to the counties,while the state retains oversight authority and supports local efforts through permitting, planning,financial support, and technical assistance. Plans include how the county will ensure waste is managed properly to meet the goals and objectives of the WMA and all efforts that will be undertaken to manage waste in accordance with the hierarchy. The seven-county Twin Cities Metropolitan Area (Metro Area) and Greater Minnesota counties have different sets of requirements governing their solid waste planning. Metropolitan County Solid Waste Master Plans must comply with the current Metropolitan Solid Waste Management Policy Plan (Metro Policy Plan),which is a 20-year plan updated every 6 years (Minnesota Stat. §473.149). Greater Minnesota County Solid Waste Plans must conform to WMA and Minnesota Rules. Greater Minnesota County Solid Waste plans are updated every 10 years and Metro County Solid Waste plans are updated every six years. Solid Waste Policy Report • December 2019 Minnesota Pollution Control Agency 7 Part one: Introduction and background Introduction In 1980,the Minnesota Legislature recognized the importance of waste management with the passage of the Waste Management Act (Minn. Stat. § 115A).This statute's purpose is to improve integrated solid waste management (ISWM)to protect the state's natural resources and public health. It establishes the following hierarchy, in order from most to least beneficial to the environment, of preferred solid waste management practices: 1. Waste reduction and reuse 2. Waste recycling 3. Composting of source-separated compostable materials, including but not limited to,yard waste and food waste 4. Resource recovery through mixed municipal solid waste (MMSW) composting or incineration 5. Land disposal which produces no measurable methane gas or which involves the retrieval of methane gas as a fuel for the production of energy to be used on-site or for sale 6. Land disposal which produces measurable methane and which does not involve the retrieval of methane gas as a fuel for the production of energy to be used on-site or for sale The above hierarchy was established to achieve the following goals, as provided in Minn.Stat. § 115A.02(a): 1. Reduction in the amount and toxicity of waste generated 2. Separation and recovery of materials and energy from waste 3. Reduction in indiscriminate dependence on disposal of waste 4. Coordination of solid waste management among political subdivisions 5. Orderly and deliberate development and financial security of waste facilities including disposal facilities Purpose of this Plan This Plan establishes the framework for managing the TCMA's solid waste for the next 20 years (2016- 2036)and was prepared in accordance with the requirements of Minn. Stat. §473.149. This Plan will guide the development and activities of solid waste management and must be followed in the TCMA.The Plan supports:the goals Anoka of the Waste Management Act (WMA) hierarchy; improving public health; reducing the reliance on landfills;conserving energy and natural resources; and reducing pollution and Hennepin greenhouse gas emissions. The Twin Cities Metropolitan Area includes Anoka, Cover Carver,Dakota,Hennepin,Ramsey,Scott,and Washington counties,but not the cities of Northfield, Dakota Hanover,Rockford,and New Prague. Scott Metropolitan Solid Waste Policy Plan 2016-2036 March 2017 Minnesota Pollution Control Agency 2 Key definitions and acronyms Municipal Solid Waste(MSW) Includes materials that have been separated for recycling and organics recovery and materials collected as trash that is generated by residential,commercial,industrial,and community activities. Mixed municipal solid waste(MMSW) Includes materials collected as trash that is generated by residential,commercial,industrial,and community activities. Non-municipal solid waste(Non-MSW) Includes materials resulting from construction,demolition,or industrial activities which is not mixed municipal solid waste. Participants in the process The MPCA worked with the seven metropolitan counties (Anoka,Carver, Dakota, Hennepin, Ramsey, Scott and Washington) in the development of this Plan. In addition,the MPCA hosted three stakeholder meetings in advance of the release of the draft Plan, and two public meetings after the draft Plan was released to gather input from other Plan stakeholders, including members of the recycling and waste industry and members of the general public. How the Plan will be used by stakeholders • Product producers.The Plan will guide product producers, including manufacturers and retailers, because they have a role in product stewardship and extended producer responsibility initiatives as well as Sustainable Materials Management (SMM). • Waste generators (residents, businesses, public entities).The Plan will 1) inform waste generators about their roles and responsibilities in waste management; 2) educate generators about solid waste issues and services (both public and private) available to them;and 3) identify and direct state agencies and county governments who provide assistance. • Waste industry.The Plan will outline the responsibility of the waste industry in providing future solid waste facilities and services. For the purposes of this Plan,the "waste industry' includes all entities, public or private,that collect and/or manage solid waste in some form, including recyclables, household hazardous waste (HHW)and problem materials. • Government.The Plan will: 1)guide the counties and regional governmental entities in developing solid waste master plans,ordinances,work plans, and budgets; 2)guide the MPCA metropolitan oversight responsibilities, including administration of the Metropolitan Landfill Abatement Account program, county plan reviews, and the MPCA's approval of solid waste facility permits and landfill certificates of need;3) guide the MPCA in its regulatory, enforcement, and technical assistance functions that affect the TCMA;4) contribute to policy discussions regarding solid waste legislation affecting the TCMA; and 5)guide local jurisdictions in the planning and provision of services to residents and businesses. What has been accomplished already? The TCMA solid waste system is the result of planning and development that began with the 1980 WMA. Since 1980, much has been accomplished. • The TCMA recycles 49.9% of the municipal solid waste (MSW)generated.The recent improvement is largely due to advances in organics collection for food to people,food to livestock,SSO management, and yard waste composting. • Reuse and recycling activities contribute significantly to the economy of the region. • Organics recovery has greatly increased since 2008. • Resource recovery has increased since 2009,though facility shortages still exist. Metropolitan Solid Waste Policy Plan 2016-2036 • March 2017 Minnesota Pollution Control Agency 3 • Resource recovery facilities manage 28%of the MSW generated. • Land disposal has decreased by 18%since 2008. • Problem materials,such as major appliances, mercury-containing products, and electronic waste are banned from the MMSW stream, and infectious wastes are separately managed. • A system to collect and manage HHW is available to all residents. Six of the counties participate in an arrangement of shared reciprocity. As a region,we should be proud of the advances we have made as a result of the efforts from product producers,waste generators, waste industry, and government. What challenges still exist? While we have made some great strides, as noted above,there is more to be done, collectively,to reach our goals. • TCMA MSW generation continues to grow, and the region's solid waste diversion efforts currently in place will need to be more robust to meet the goals set out in state law. • Traditional recycling has decreased slightly since 2008. • The Legislature established a 75%combined recycling and organics goal for the TCMA, so system changes must occur throughout the region to achieve the new objective. Figure 1 shows the percent of MSW managed from 1991 to 2015 in the TCMA by recycling and organics recovery, resource recovery, and land disposal. Higher percentages of abatement occurred in the early years, because four of the seven TCMA counties used waste flow designation as a primary tool to direct MMSW to facilities and to pay for all services that benefited the entire system. How Waste is Managed in the TCMA 1,600,000 1,400,000 40% 1,200,000 - __....._.. ........... 1,000,000 27% —Recycling N H800.000 -- —Organics —Waste To Energy 23% —Landfill 600,000 ___......... _... 400,000 1..._ 10% 200.000 0 n m 8 g o 0 0 Figure 1.TCMA MSW management method percentages from 1991 to 2015(Source:SCORE and Certification Reports) Metropolitan Solid Waste Policy Plan 2016-2036 • March 2017 Minnesota Pollution Control Agency 4 If the current trends continue, nearly 8 million tons of additional waste will be sent to landfills over the 20-year period of this Plan (Figure 2). Figure 2 demonstrates the importance of changing the status quo over the next 20 years. Over 60%of MSW sent to landfills today could be recycled;this "lost opportunity" results in the loss of valuable metals, plastics, paper, and other commodities. Inevitably, the state, citizens, and businesses will be left with additional costs for siting new landfills, hauling MMSW long distances, increased greenhouse gas emissions, and cleanup at disposal facilities. The TCMA generates approximately 60% of Minnesota's MSW and,therefore, has a tremendous impact on the state as a whole.The entire state has experienced a stagnation of performance. 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 Recycling 4A 1,000,000 Waste to Energy Organics 800,000 Landfill 600,000 400,000 200,000 0 U) r, m M Ln r\ M 1-i M in 1-1 N N N N N M M M O O O O O O O O O O O N N N N N N N N N N N Figure 2. Metro MSW tons to different management methods if current rates continue Resource recovery capacity continues to be under-utilized in the region because the MMSW is being diverted to landfills by private haulers.This loss will result in a reduction of: renewable energy capacity; ferrous and nonferrous recovery capacity;and pollution and resource savings. The MPCA has refocused compliance efforts around §473.848 (Restriction on Disposal)to ensure that existing resource recovery capacity is fully used. In addition, Ramsey and Washington counties have purchased the Newport Refuse Derived Fuel facility and will continue to invest in that facility to ensure continued materials and energy recovery and landfill abatement. To improve performance,all stakeholders must be willing to accept responsibility to remedy failures and deficiencies. Restoring accountability in the solid waste system will be critical. The private sector has a significant role, and it should be recognized for its ability to foster innovation and efficiencies through competition. More needs to be done to ensure that the activities of the private sector and the public sector are aligned to reach state goals. Metropolitan Solid Waste Policy Plan 2016-2036 • March 2017 Minnesota Pollution Control Agency 5 APPENDIX D: PERFORMANCE AND ACCOUNTABILITY A. Evaluating Progress Dakota County is committed to identifying performance measures to monitor and evaluate progress on strategies identified in the Master Plan.These metrics apply to all aspects of the solid waste management system described throughout this plan. Performance measures are important to ensure ongoing program improvement and to evaluate progress in meeting Master Plan objectives. More detailed progress measures will also be specified in the County's annual work plans, implementation projects,and in ongoing process improvement efforts. Dakota County is accountable to the MPCA for Master Plan development and advancement, but all stakeholders —including all levels of government,waste generators, and operators of the waste management system—are expected to participate and have accountability in implementing this Master Plan. Dakota County will continue to monitor compliance of regulated waste generators and the waste industry to measure Master Plan progress. The Policy Plan acknowledges that the complexity of the TCMA solid waste system makes it difficult to measure how MSW is managed according to the system objectives. Some data is more verifiable,such as the waste amounts delivered to waste facilities, because material is weighed and records are kept. Other data is not easily measured,such as the amount of material recycled by commercial establishments. Statute requires the MPCA to evaluate SCORE data collection and management and to make recommendations to the Legislature for its improvement. Continued evaluations will improve the reliability of measurement tools used to assess progress in attaining the Policy Plan's TCMA objectives. B. County Reporting Requirements Progress updates will be submitted to the MPCA through annual reports required by State law. Counties share data to account for waste that crosses county lines and also obtain data for waste that is sent outside of the region or state to ensure that data is as complete as possible. Reports summarize trends, project and program outcomes, and activities over the course of the previous year,including relevant data to identify progress. Annual reports submitted to the MPCA include: • SCORE Report/Survey is an annual report that gathers qualitative and quantitative on recycling rates,waste reduction efforts,waste management data and practices, County licensing and collection,finance,and administration. The County will submit the report by the required deadline each year. • Certification Report is an annual solid waste resource recovery and land disposal report.The MPCA reviews the report for consistency with the requirements of Minn. Stat. §473.848 and the Policy Plan.The County will annually submit the report by the required deadline each year. • Local Recycling Development Grant(LRDG) Report is an accounting to the MPCA of how LRDG funds were used in County programs and efforts. The County will submit the report by the required deadline each year. • Household Hazardous Waste Report provides the MPCA with data on the amount and type of HHW collected during the previous year. Financial data and the number of county and out-of-county households served are reported.The County will submit the report by the required deadline each year. Dakota County Solid Waste Master Plan: 2018-2038 Appendix D: Performance and Accountability, Page 83 • Annual Report provides the MPCA with a progress report on Master Plan implementation, including timelines for implementation and partners involved. Information submitted includes work and activities completed and priorities planned for the following year. The County will submit the report annually by the required deadline. C. County Oversight of the Private Sector, Municipalities, and Program Partners The solid waste management system serving Dakota County is comprised of both public-and private-sector services. State law includes a preference for private-sector ownership and operation of solid waste facilities (Minn.Stat. §§ 473.803 and 115A.46).Therefore,the private sector(both public and not-for-profit organizations) plays a critical role in carrying out solid waste functions within the County and directly influences the ability of the County to achieve Policy Plan objectives and meet statutory requirements. Minn. Stat. §473.803 indicates: A county may include in its solid waste management master plan and in its plan for county land disposal abatement a determination that the private sector will achieve, either in part or in whole, the goals and requirements of sections§473.149 and§473.803, as long as the county: (1)retains active oversight over the efforts of the private sector and monitors performance to ensure compliance with the law and the goals and standards in the metropolitan policy plan and the county master plan; (2)continues to meet its responsibilities under the law for ensuring proper waste management, including, at a minimum, enforcing waste management law, providing waste education,promoting waste reduction, and providing its residents the opportunity to recycle waste materials,and (3)continues to provide all required reports on the county's progress in meeting the waste management goals and standards of this chapter and chapter 115A. The tools Dakota County uses to hold the private sector, municipalities,and program partners accountable include: 1. Regulation—through assuring compliance with County ordinances and, as appropriate,state laws that relate to solid waste management. 2. Monitoring and reporting—by gathering information from entities to monitor actions related to the solid waste system and Master Plan implementation. 3. Contracts/Agreements—through assuring compliance with voluntary agreements entered into between Dakota County and other entities. The County implements oversight of the private sector providing waste management services, municipalities implementing landfill abatement programs,and program partners receiving funding or services to implement projects through the following: • Solid waste facilities:license and reporting requirements. All landfills,transfer stations,yard waste,and organics management facilities provide data on the amounts and types of waste they receive as part of their annual reports to the County.All waste management facilities in Dakota County are privately-owned. Through regulation and reporting requirements,facilities are accountable. - The County establishes and collects host fees from MSW landfills and to support landfill abatement programs. Dakota County Solid Waste Master Plan: 2018-2038 Appendix D: Performance and Accountability, Page 84 - Ordinance 110 requires licensing and reporting for all landfills, recycling facilities,special waste storage facilities,energy recovery facilities,transfer stations, infectious waste facilities,and compost facilities. - All solid waste facilities are licensed every two years to monitor compliance with environmental and public health requirements. Landfills are inspected at least monthly, recycling facilities are inspected two to four times per year,and compost facilities are inspected one to three times per year depending on size. The County has authority to issue penalties for non-compliance. Landfills and transfer stations report waste sources by municipality. Materials recovery facilities(for recyclables) report the amount of incoming waste and how much waste is separated for recycling. The County will update facility report forms,as necessary,to ensure relevant and accurate data is submitted. Standard for approval of licenses and reports: The County will approve solid waste facility licenses and reports if they meet Ordinance 110 requirements. Procedures - Required License and Report: The County will provide a license application and report forms and notify regulated facilities of license and reporting obligations and submittal deadlines, as specified in Ordinance 110.The County provides the forms and instructions for completion. - County Review and Approval: The County will review and approve applications and reports if they are determined to be accurate and meet Ordinance 110 requirements. If applications or report forms are incomplete or inaccurate,the County will work with the facility on a complete submittal or can deny them. • Waste hauler license and reporting requirements: Haulers must report the amount of residential and commercial recyclables hauled and the number of accounts that they serve, by city. Haulers are accountable to Master Plan objectives through Ordinance 110 and licensing. Ordinance 110 establishes standards for collection and transportation of solid waste and recyclable materials in the County.Standards include requirements for licensing, reporting, providing the opportunity to recycle, record keeping, collection fee structure, equipment and operations requirements, and a prohibition for mixing MSW and source-separated recyclables.The County enforces Ordinance 110 by licensing MSW haulers.The license requirement includes a checklist to report which recyclable materials each hauler accepts and the frequency of collection.The County provides the application form and instructions for completeness that outline the information,and communicates to waste haulers on the required submittal dates. In addition, licensed haulers are required to report information about collection and processing of recyclable materials. Effective 2017, haulers report residential and commercial waste collection data directly to the MPCA.The County will work with the MPCA to ensure accurate data is submitted. In addition, Ordinance 110 has long-required haulers to submit collection data to the County. County forms require the number of accounts per city and total tons collected by material.The residential form also collects the number of multi-unit accounts.The County will monitor the ongoing need for haulers to continue to submit data directly to the County given the change in the MPCA collection of hauler data. Licensing and reporting holds haulers accountable for Master Plan objectives to implement recycling programs. Standard for approval of licenses and reports: The County will approve hazardous waste hauler licenses and reports if they meet Ordinance 110 and regional hauler licensing requirements. Dakota County Solid Waste Master Plan: 2018-2038 Appendix D: Performance and Accountability, Page 85 Procedures - Required License and Report: The County will collaborate with regional partners, as appropriate,to annually develop a license application and notify haulers of license and license obligations specified in Ordinance 110. The County will notify haulers of reporting obligations specified in Ordinance 110,and will collaborate with the state to compare state and county data submitted by haulers. Application and report forms outline information and data that is required to be submitted. - County Review and Approval: The County will review and approve applications and reports if they are determined to be accurate. If applications or forms are incomplete or inaccurate,the County will work with the hauler to complete an accurate submittal or can deny the application/reports. • Hazardous waste generators and facilities:license and reporting requirements: Regulated generators and facilities report the amount of waste generated and managed,sorted by hazard category,and waste type. Private-sector generators are accountable to Master Plan objectives based on their status as hazardous waste generators. Hazardous waste generators are accountable through Ordinance 111 which establishes standards based on generator size for training, licensing,generating,storing, processing, and managing hazardous waste in Dakota County. The County licenses, inspects,and trains hazardous waste generators and facilities. Licensing is renewed annually. Inspection and training frequency depends on size. Large and small generators are inspected every year,very small quantity generators every two years,and minimal quantity generators every five years. Inspections and training requirements hold private-sector hazardous waste generators accountable for meeting Master Plan objectives for proper hazardous waste management. Standard for approval of licenses and reports: The County will approve hazardous waste generator and facility licenses and reports if they meet Ordinance 111 requirements. Procedures - Required License and Report: The County will annually provide a license application and report forms and notify generators and facilities of license and reporting obligations and submittal deadlines,as specified in Ordinance 111. Forms outline information and data that is required to be submitted. - County Review and Approval: The County will review and approve applications and reports if they are determined to be accurate. If applications or forms are incomplete or inaccurate,the County will work with the generator or facility to complete an accurate submittal or can deny the application/reports. • Municipalities,including the Rural Solid Waste Commission, report progress toward achieving landfill abatement objectives and County Master Plan requirements, in accordance with Community Funding JPAs. Ordinance 110 requires all municipalities to have a solid waste abatement program in compliance with the County's Master Plan. Community Funding dollars are distributed to each city based on annual work plans. To receive funds, municipalities annually submit an application,work plan,and budget. Funds must be used for residential recycling programs,education and outreach, and priority issues indicated in the 1PAs. Municipalities must submit an Annual Report to the County with qualitative and quantitative measurements Dakota County Solid Waste Master Plan: 2018-2038 Appendix D: Performance and Accountability, Page 86 resulting from work plan projects and programs.W plans focus on meeting several Master Plan objectives: outreach and education, household hazardous waste recycling, residential recycling,and organics.The Annual Report is used to measure performance. If a municipality fails to meet Ordinance 110 or JPA requirements the County can implement a program on the municipality's behalf, request the return of funds,or both. An excerpt of Ordinance 110 for a municipal solid waste abatement program is below: 16.01 SOLID WASTE ABATEMENT Program. A. Each municipality shall have a solid waste abatement program. Each municipality's program must: 1. Be consistent with the County Solid Waste Master Plan and the joint powers agreement between the county and each municipality with regard to solid waste abatement;and 2. Provide a method of collecting and reporting the data required by section 16.02. B. If a municipality does not maintain a solid waste abatement program,the county may implement a solid waste abatement program in that municipality consistent with the county's solid waste abatement goals and this section. C. The county may recover its costs for developing,implementing,and operating a solid waste abatement program including,but not limited to,administrative,monitoring and public education costs,from any municipality or group of municipalities, which does not maintain a solid waste abatement program. Costs may be pursued through a service charge established pursuant to Minn.Stat.§400.08 or through such other means deemed appropriate by the county board. 16.02 Reporting Requirements for Municipalities. A. Each municipality shall report to the department information relating to the recyclable material generated at drop-offs within its boundaries,as well as other reporting requirements in the municipality's joint powers agreement with the county. B. Failure to submit a report as required by section 16.02(A)shall be construed by the department as a failure on the part of the municipality to meet its annual solid waste abatement goals and shall be subject to sections 16.01(B)and 16.01(C). 16.03 Failure to Meet SOLID WASTE ABATEMENT Goals. If a municipality fails to meet its annual solid waste abatement goals as required by the municipality's joint power agreement with the county,the county board may institute any part of or all of section 16.00 either in the municipality that failed to meet the county's solid waste abatement goals or in the county as a whole,as deemed appropriate by the county board. Standard for approval of funding and annual report: The County will approve the annual funding if JPA and Ordinance 110 requirements are met,or if municipalities demonstrate progress toward JPA objectives, as documented in the required Final Report. Dakota County Solid Waste Master Plan: 2018-2038 Appendix D: Performance and Accountability, Page 87 Procedures - Required Report: The County will annually provide a Final Report and notify municipalities of reporting obligations and reporting submittal deadlines, as outlined in the JPA. Forms will outline information and data that is required to be submitted. - County Review and Approval: The County will review the Final Report to determine if the municipality has met JPA requirements. If the municipality fails to meet requirements,the County will notify the municipality and work with them to identify action steps to achieve JPA requirements. If the municipality continues to fail to make adequate progress, County staff will discuss options with the municipality and the County Board for remedial actions that include implementing the program on behalf of the community, having the municipality return funding to the County,or both. • Agreements/contracts are used with the private sector to provide incentives to support Master Plan goals and establish mechanisms for reporting: a. Business Recycling Incentive Program. The County requires businesses and organizations to enter into a contract with the County to participate in the Business Recycling Incentive Program. The program provides up to$10,000 for eligible businesses subject to the state's commercial recycling requirement (MN Stat. § 115A.151)for implementation of eligible activities identified in program guidelines. Program guidelines and contract language support Master Plan goals to implement and document results of waste reduction and improved recycling(including organics recovery).Guidelines establish funding eligibility,details on how the funding will be used, reporting requirements (e.g.,Application, Baseline Report, Final Report), and requirements to use County technical assistance to ensure businesses follow best management practices (e.g., use color-coded bins and labels). The County will reimburse the business for County-approved items identified in the contract,following proof of payment by the business. Standards for approval of contracts and program report forms: For contracts and reports to be approved by the County, landfill abatement activities identified in the required County-developed Application must be consistent with the program's Guidelines and Contract. Once the contract is approved for program participation,the business is required to submit reports to demonstrate diversion improvements in their waste management program. Procedures - Required Program Reports: The contract requires that participating businesses complete a Baseline and Final Report,and identifies the submittal timeline and report content requirements. Forms outline information and data that is required to be submitted. Baseline Reports must be submitted within 30 days of approval of program participation (e.g.,contract execution). The Baseline Report requires reporting on quantitative (pre-program trash and recycling volumes at the businesses)and qualitative measures(general awareness of recycling). The Final Report must be submitted within 12 months of program participation (when project is complete). It requires an update on quantitative and qualitative measures from the Baseline Dakota County Solid Waste Master Plan: 2018-2038 Appendix D: Performance and Accountability, Page 88 Report to measure changes in diversion and recycling awareness at the end of the project. In addition,for payment of County funds for items identified in the contract,the businesses must submit a Reimbursement Form that demonstrates proof of purchase and payment of County- approved items. - County Review and Approval: The County will review and approve the program forms to determine if they meet Guidelines and contract obligations. If they do not,and until any issues are resolved,the County will not approve reports and will not issue reimbursement for project items purchased by the business. b. School Recycling and Organics Program. The County requires schools to enter into a JPA (public schools)or contract(private schools)with the County to participate in the School Recycling and Organics Program to establish program roles and expectations.The JPA/contract supports Master Plan goals to implement and document results of waste reduction and improved recycling(including organics recovery)actions.The JPA/contract establishes program eligibility and requirements to use County technical assistance to ensure schools follow best management practices (e.g., paired, labeled,and color-coded bins,green teams, update internal policies) and measure waste diversion progress (e.g., allow pre-and post-program waste sorts). For the JPA/contract to be approved by the County for participation in the program,the school must agree to comply with JPA/contract obligations. The County works closely with a contractor and school participants to ensure program expectations are achieved. If they are not,the County can remove any waste management system infrastructure(e.g., recycling bins) provided by the County. The County will individually,and with state and regional partners, routinely evaluate aforementioned forms and related measurement requirements.The County will revise forms as necessary to ensure data is accurate and relevant,and assist in reporting of Master Plan implementation. D. Accountable Parties and Additional Measures for Strategies The Master Plan outlines strategies to achieve Policy Plan and statutory requirements. All stakeholders in the system have roles and responsibilities to ensure successful implementation of these strategies. The following tables include strategies identified in Part Two of the Master Plan,along with key entities accountable for strategy implementation, possible output or outcome measures,and primary mechanisms for gather measures. Dakota County Solid Waste Master Plan: 2018-2038 Appendix D: Performance and Accountability, Page 89 tUEOF INFORMATION MEMO MI A City Solid Waste Management CITIES Understand city authority and requirements to regulate the collection and disposal of solid waste and the roles of state and county oversight. Read about city licensing authority andpermitted assessments and fees. Learn about open and organized systems of solid waste collection, including their advantages and disadvantages. Includes a flowchart showing the process for adopting organized collection and links to model ordinance and resolution. RELEVANT LINKS: I. Authority, oversight, and definitions A. Authority to regulate Minn.stat.§412.221,subd. All cities are authorized to provide for or regulate by ordinance the disposal 22(3).Minn.Stat.§410.33. Troje v.City Council of City of sewage, garbage, and other refuse. This broad grant of police power of Hastings,310 Minn.183, authorizes cities to regulate the collection and disposal of solid waste. 245 N.W.2d 596(1976). B. Authority to acquire, construct, and operate solid waste facilities—first class cities First class cities (Minneapolis, St. Paul, Duluth, and Rochester) are authorized: Minn.Stat.§443.18.Minn. • To acquire by purchase or condemnation lands on which to build plants Stat.§410.01. for the destruction of garbage and other refuse. • To purchase, build, operate, and maintain such plants for the destruction of garbage and other refuse. • To provide for the collection of all such garbage or refuse and its delivery to destruction plants or other places. • To pay and contract to pay for the same in such annual installments and at such a rate of interest on deferred payments as the city council determines. See Minn.stat.§§443.18- Each of these actions must be authorized by at least a three-fourths vote of 443.35 for more information about first class cities' all members of the city council. First class cities have additional authority authority and restrictions and restrictions regarding solid waste management. regarding solid waste management. C. State oversight See Information Brief, Before the 1970s, open burning and open dumping were the most common Minnesota Solid Waste History,Minnesota House of forms of solid waste management. Representatives. This material is provided as general information and is not a substitute for legal advice.Consult your attorney for advice concerning specific situations. 145 University Ave.West www.Ime.org 9/19/2018 Saint Paul,MN 55103-2044 (651)281-1200 or(800)925-1122 ©2018 Al Rights Reserved RELEVANT LINKS: Beginning in the 1970s,the Minnesota Legislature adopted a variety of waste management regulations, and gave the Minnesota Pollution Control Agency(MPCA)regulatory oversight over the management of solid waste and recycling. Minn.stat.§ 115A.46. The MPCA develops and enforces the state's solid waste management MPCA Local Government Assistance unit. regulations. It also is responsible for approving the solid waste plans that counties must adopt. The MPCA has a Local Government Assistance Unit that offers a variety of tools to help counties, cities, and townships develop and support systems that recover resources and manage waste. See Minn.stat.ch. 115A. The Minnesota Legislature adopted the Waste Management Act in 1980. It establishes the following descending order of priority for waste management: Minn.Stat.§ 115A.02. • Waste reduction and reuse. • Waste recycling. • Composting of source-separated compostable materials, including, but not limited to, yard waste and food waste. • Resource recovery through mixed municipal solid waste composting or incineration. • Land disposal that produces no measurable methane gas or that involves the retrieval of methane gas as a fuel for the production of energy to be used on-site or for sale. • Land disposal that produces measurable methane and that does not involve the retrieval of methane gas as a fuel for the production of energy to be used on-site or for sale. D. County oversight Minn.stat.§ 115A.46.Minn. Minnesota counties have primary responsibility for solid waste management, Stat.§400.16.Minn.Stat.§ 473.149.Minn.R.ch.9215. including recycling. All counties are required to adopt a solid waste plan that The MPCA maintains a must include waste reduction and recycling provisions, as well as provisions database of county contacts for solid waste and recycling. to minimize the amount of waste disposed of in landfills. For more information about recycling in your county, visit Recycle More Minnesota's website. Minn.stat.§ 115A.46 subd. After the MPCA has approved a county's solid waste plan, a city located in s. that county may not enter into a binding agreement governing solid waste management activity or develop, or implement solid waste management activity(other than activity to reduce waste generation or reuse waste materials)that is inconsistent with the county's plan without the county's consent. Minn.Stat.§473.149.See Metropolitan counties must develop solid waste management plans that are Metropolitan Solid Waste Management Policy Plan consistent with the most recent"metropolitan long-range policy plan." 2016-2036. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 2 RELEVANT LINKS: E. Definitions 1. Mixed municipal solid waste Minn.Stat.§ I I5A.03,subd. Mixed municipal solid waste is defined as "garbage, refuse, and other solid 21. waste from residential, commercial, industrial, and community activities that the generator of the waste aggregates for collection."Mixed municipal solid waste does not include"auto hulks, street sweepings, ash, construction debris, mining waste, sludges,tree and agricultural wastes,tires, lead acid batteries, motor and vehicle fluids and filters, and other materials collected, processed, and disposed of as separate waste streams." 2. Solid waste Minn.Stat.§115A.03,subd. Solid waste is defined as "garbage,refuse, sludge from a water supply 31.Minn.Stat.§ 116.06, subd.22. treatment plant or air contaminant treatment facility, and other discarded waste materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting from industrial, commercial, mining, and agricultural operations, and from community activities." Solid waste does not include: • Hazardous waste • Animal waste used as fertilizer • Earthen fill, boulders,rock • Concrete diamond grinding and saw slurry associated with the construction, improvement, or repair of a road when deposited on the road project site in a manner that is in compliance with best management practices and rules of the agency • Sewage sludge • Solid or dissolved material in domestic sewage or other common pollutants in water resources, such as silt, dissolved or suspended solids in industrial wastewater effluents or discharges which are point sources subject to permits under section 402 of the Federal Water Pollution Control Act, as amended, dissolved materials in irrigation return flows • Source, special nuclear, or by-product material as defined by the Atomic Energy Act of 1954, as amended Minn.stat.§115A.951. State law specifically prohibits certain items from being included in mixed Minn.Stat.§115A.96.Minn. Stat.§115A.03,subd.17a. municipal solid waste or in solid waste, including: telephone directories, Minn.stat.§I I5A.9565. major appliances, electronic products containing a cathode-ray tube, yard Minn.Stat.§115A.931. Minn.Stat.§115A.935. waste,tires, motor and vehicle fluids and filters, mercury or mercury- Minn.stat.§115A.932. containing devices or products from which the mercury has not been Minn.Stat.§115A.9155. Minn.stat.§115A.9157. removed for reuse or recycling, fluorescent tubes, and certain batteries. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 3 RELEVANT LINKS: 3. Yard waste Minn.Stat.§ 115A.03,subd. Yard waste is defined as "garden wastes, leaves, lawn cuttings,weeds, shrub 38. and tree waste, and prunings." 4. Recyclable materials Minn.Stat.§ 115A.03,subd. Recyclable materials are defined as "materials that are separated from mixed 25a. municipal solid waste for the purpose of recycling or composting, including paper, glass,plastics, metals, automobile oil, batteries, source-separated compostable materials, and sole sourced waste streams that are managed through biodegradative processes."Recyclable materials do not include refuse-derived fuel or other material that is destroyed by incineration. 5. Source-separated recyclable materials Minn.Stat.§ 115A.03,subd. Source-separated recyclable materials are defined as "recyclable materials, 32b. including commingled recyclable materials that are separated by the generator." 6. Source-separated compostable materials Source-separated compostable materials are defined as materials that: Minn.stat.§ 115A.03,subd. . Are separated at the source by waste generators for the purpose of 32a.Minn.Stat.§115A.93. preparing them for use as compost. • Are collected separately from mixed municipal solid waste, and are governed by the licensing provisions of section I I5A.93. • Are comprised of food wastes, fish and animal waste,plant materials, diapers, sanitary products, and paper that is not recyclable. • Are delivered to a facility to undergo controlled microbial degradation to yield a humus-like product meeting the MPCA's class I or class Il, or equivalent, compost standards, and where process rejects do not exceed 15 percent by weight of the total material delivered to the facility. • May be delivered to a transfer station, mixed municipal solid waste processing facility, or recycling facility only for the purposes of composting or transfer to a composting facility, unless the commissioner determines that no other person is willing to accept the materials. 7. Organized collection Minn.Stat.§ 115A.94.See Organized collection is defined as "a system for collecting solid waste in Section IV,Solid waste and recycling collection,for more which a specified collector, or a member of an organization of collectors, is information about organized authorized to collect from a defined geographic service area or areas some or collection. all of the solid waste that is released by generators for collection." League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 4 RELEVANT LINKS: 8. Open collection Open collection is generally defined as a system for collecting solid waste or recyclable materials where individual residents and businesses are free to contract with any collector licensed to do business in the city. II. City regulation and licensing A. Required regulation There are three situations where cities are required to regulate solid waste collection. 1. County organized collection ordinance Minn.stat.§115A.94,subd. Any county can adopt an ordinance requiring cities or towns within its 5.See Section IV,Solid waste and recycling boundaries to organize collection of solid waste. If a city does not comply collection,for more with the county's organized collection ordinance,the county can organize information about organized collection. collection itself Minn.stat.§115A.94,subd. A county's organized collection ordinance—in addition to requiring solid s. waste collection—may also require the separation and separate collection of recyclable materials, specify the material to be separated, and require cities to meet any performance standards for source separation contained in the county's solid waste plan. 2. Cities in the metropolitan area Minn.Stat.§473.811,subd. Cities in the metropolitan area must adopt an ordinance regulating the 5.Minn.Stat.§473.121. collection of solid waste within its boundaries. The metropolitan area includes the counties of Anoka, Carver, Dakota(excluding the city of Northfield),Hennepin(excluding the cities of Hanover and Rockford), Ramsey, Scott(excluding the city of New Prague), and Washington. If a city is located in a metropolitan county that has adopted a collection ordinance, the city must adopt either the county ordinance by reference or a stricter ordinance. If a city is located in a metropolitan county that has adopted a recyclable-separation ordinance,the ordinance applies in all cities within the county that have failed to meet the local abatement performance standards stated in the most recent annual county report. 3. Cities with a population of 1,000 or more Minn.stat.§115A.941. Any city, regardless of where it is located,with a population of 1,000 or more must ensure that every residential household and business in the city has solid waste collection service. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 5 RELEVANT LINKS: Minn.Stat.§ 115A.941.See To comply with this requirement, cities are authorized to organize solid Section IV,Solid waste and recycling collection,for more waste collection,provide collection by city employees, or require by information about organized ordinance that every household and business has a contract for collection collection. services.An ordinance with such a requirement must also provide for enforcement. Cities must follow specific procedural requirements before adopting organized collection of solid waste. Minn.stat.§115A.941. A city with a population of 1,000 or more may exempt a residential household or business from the requirement to have solid waste collection service if the household or business ensures that an environmentally sound alternative is used. B. Recycling required at city facilities Minn.stat.§115A.151. All statutory and home rule charter cities are required to ensure that facilities under their control, from which mixed municipal solid waste is collected, have containers for at least three recyclable materials, such as, but not limited to,paper, glass,plastic, and metal. Cities also must transfer all recyclable materials collected to a recycler. C. Licensing 1. Solid waste collectors Minn.Stat.§ 115A.93,subd. State law prohibits any person from collecting mixed municipal solid waste 1. for hire without a license from the jurisdiction where that waste is collected. Minn.Stat.§ 115A.93,subd. Cities are authorized to license solid waste collectors. If a city licenses solid 2.Minn.Stat.§115A.93, subd. 1(a).Troje v.City waste collectors, it must submit a list of licensed collectors to the MPCA. Council of City of Hastings, County boards are required to adopt by resolution the licensing authority of 310 Minn.183,245 N.W.2d 596(1976).The MPCA is any city that does not license solid waste collectors. If a city acts as a currently Working With licensing authority, it may impose requirements that are consistent with the Minnesota counties to receive a list of locally licensed county's solid waste policies. In addition, state law establishes several collectors.For more requirements that must be imposed for any license issued to a solid waste information contact Peder Sandhei,Principal Planner, collector. MPCA at 651-757-2688, 800-657-3864,or peder.sandhei@state.mn.us. Minn.Stat.§115A.93,subd. First, a license must require collectors to impose charges for collection of 3. mixed municipal solid waste that increase with the volume or weight of the waste collected. For example, a solid waste collector could charge fees that increase with the increasing volume of solid waste generated by customers. Garbage carts of different sizes, measured by their volume in gallons, could be issued to customers who can decide what size garbage cart best suits their disposal needs. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 6 RELEVANT LINKS: Minn.stat.§115A.93,subd. The commissioner of the MPCA may exempt a licensing authority from this 3. requirement if the county in which the city is located has an approved solid waste plan that concludes that variable rate pricing is not appropriate for that jurisdiction because it is inconsistent with other incentives and mechanisms implemented that are more effective in attaining the goals of discouraging on-site disposal, littering, and illegal dumping. The commissioner may also exempt a collector from this requirement while revisions are being made to the county's solid waste plan if certain conditions are met. The exemption is only effective until the county solid waste plan is revised. Minn.stat.§115A.93,subd. Second, a license that requires a pricing system based on volume instead of 3(a). weight shall determine a base unit size for an average small quantity household generator of waste and establish, or require the licensee to establish, a multiple unit pricing system that ensures that amounts of waste generated in excess of the base unit amount are priced higher than the base unit price. Minn.stat.§115A.93,subd. Third, a license shall prohibit collectors from imposing a greater charge on 3, residents who recycle than on residents who do not. 2. Recycling collectors Minn.Stat.§115A.553, Counties can require either county or municipal licenses for the collection of subd.2.Minn.Stat.§ recyclable materials.A person may not collect recyclable materials for hire 115A.93,subd. 1(b). y p y �' unless that person is licensed locally or is registered with the MPCA. Each county must ensure that materials separated for recycling are taken to markets for sale or to recyclable material processing centers.No county may prevent a person that generates or collects solid waste from delivering recyclable materials to a recycling facility of the generator's or collector's choice. Minn.stat.§115A.46,subd. If a city acts as a licensing authority, it may impose requirements that are s. consistent with the county's recycling policies.A city can also impose requirements that are in addition to or different from the county's policies if the city's requirements are designed to reduce waste generation or promote the reuse of waste materials. 3. License fees Orr v.City of Rochester, 193 State law does not address the amount that cities can charge for licenses for Minn.371,258 N.W.569 (1935). collection of solid waste or recyclable materials. Generally, a license fee must be reasonable. It should not be viewed as a source of revenue and should be in an amount that is close to the direct and indirect costs in issuing the license and regulating the licensed activity. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 7 RELEVANT LINKS: D. Requiring use of specific waste facility Waste systems Corp.v. Some municipalities have adopted ordinances that regulate the flow of solid County of Martin,985 17.2d 1381(8th Cir.1993).C&A waste, for example,by designating where it must be taken for disposal. This Carbone,Inc.v. Town of is generally done as a tool to achieve solid waste management goals. Flow Clarkstown,New York,511 U.S.383(1994).Ben control ordinances may raise constitutional issues under the Commerce Oehrleins and Sons and Clause of the United States Constitution if they interfere with the flow of Daughter,Inc.v.Hennepin County,115 17.3d 1372(8th interstate commerce. Cir.1997). City of Philadelphia v.New Courts have recognized a distinction under the Commerce Clause that Jersey,437 U.S.617(1978). United Haulers A ss'n,Inc.v. generally allows municipalities more authority to take actions affecting solid Oneida-Herkimer Solid waste if they are acting as a"market participant" instead of as a government Waste Management Auth., 550 U.S.330(2007). regulator. When a municipality is providing for or contracting for waste management services, it generally is thought to be acting as a market participant. Minn.stat.§§ 115A.83- State law authorizes counties or sanitary districts to adopt a designation 115A.86. ordinance requiring that all solid waste generated within a specific geographic area must be delivered to a specific solid waste facility. A designation ordinance does not apply to the following materials: Minn.Stat.§115A.83.Minn. • Materials separated from solid waste and recovered for reuse in their Stat.§115A.03,subds.27 and 28. original form or for use in manufacturing processes. • Materials that are processed at a resource recovery facility at the capacity in operation at the time that the designation plan is approved by the commissioner of the MPGA. • Materials that are separated at a permitted transfer station located within the boundaries of the designating authority for the purpose of recycling the materials if either: (1) the transfer station was in operation on Jan. 1, 1991; or(2)the materials were not being separated for recycling at the designated facility at the time the transfer station began separation of the materials. • Recyclable materials that are being recycled, and residuals from recycling if there is at least an 85 percent volume reduction in the solid waste processed at the recycling facility and the residuals are managed as separate waste streams. Minn.Stat.§115A.94,subd. If a city organizes collection, by contract or as a municipal service, it may 3.Minn.Stat.§ 115A.86. include a requirement that all or any portion of the solid waste be delivered to a waste facility identified by the city. This requirement would not apply to recyclable materials and materials that are processed at a resource recovery facility at the capacity in operation at the time the requirement is imposed. In a district or county where a resource recovery facility has been designated by ordinance, organized collection must conform to the designation ordinance's requirements. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 8 RELEVANT LINKS: Minn.stat.§473.813.Minn. Cities in the metropolitan area have authority to directly negotiate and enter Stat.§473.121.LMCIT staff can assist in reviewing city into contracts—for a term not to exceed 30 years—for the delivery of solid contracts,especially waste to a waste facility, and the processing of solid waste. Contracts made provisions related to insurance and liability.For by direct negotiations shall be approved by resolution. Before a city in the more information,contact metropolitan area enters into a contract for a period of more than five years, Chris Smith,Risk Management Attorney,at it must submit the proposed contract and a description of the proposed csmith@lmc.org or 651-281- activities under the contract to the commissioner of the MPCA for review 1269. and approval. E. Customer lists Minn.Stat.§115A.93,subd. Customer lists that solid waste collectors provide to cities are private data on 5.Minn.Stat.§ 13.02,subds. 9,l2. individuals, or nonpublic data with regard to data not on individuals,under the Minnesota Government Data Practices Act. III. City assessments and fees A. Assessments for unpaid services Minn.Stat.§443.015.See Any statutory city or city of the fourth class that provides,by contract or Adopting Assessments for Unpaid Charges for Garbage otherwise, for garbage collection and disposal may by ordinance require the Collection and Disposal owners of all property served to pay the proportionate cost of the service to Services,LMC Model Resolution,and Providing for their properties. The city council may annually levy an assessment equal to Assessment of Unpaid the unpaid cost as of Sept. 1 of each year against each lot or parcel of land. Charges for Garbage Collection and Disposal The assessment may include a penalty not to exceed 10 percent of the Services,LMC Model unpaid amount, and shall bear interest not exceeding 6 percent per year. Ordinance. Such assessments shall be certified to the county auditor and shall be collected and remitted to the city treasurer in the same manner as assessments for local improvements. Minn.stat.§443.29. First class cities (Minneapolis, St. Paul, Duluth, and Rochester)have additional authority to collect unpaid charges for rubbish disposal in a civil action, or to assess them against the property receiving the service and collect them as other taxes are collected. B. City fees 1. Operators of disposal facilities Minn.stat.§115A.921, A city may charge a fee that cannot exceed $1 per cubic yard of waste, or its subd.1. equivalent, on operators of facilities for the disposal of mixed municipal solid waste located in the city. The fees must be credited to the city's general fund. Revenue produced by 25 cents of the fee must be used only for purposes of landfill abatement or for mitigating and compensating for the local risks, costs, and other adverse effects of the facilities. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 9 RELEVANT LINKS: Revenue produced by the balance of the fee may be used for any general fund purpose. Minn.stat.§ 115A.921, There is an exemption from this fee for waste residue from recycling subd. 1. facilities at which recyclable materials are separated or processed for the purpose of recycling, or from energy and resource-recovery facilities at which solid waste is processed for the purpose of extracting, reducing, converting to energy, or otherwise separating and preparing solid waste for reuse if there is at least an 85 percent weight reduction in the solid waste processed. Minn.Stat.§115A.921, A city also may charge a fee not to exceed 50 cents per cubic yard of waste, subd.2.Minn.Stat.§ 115A.03,subd.7. or its equivalent, on operators of facilities for the disposal of construction debris located within the city. The revenue from the fees must be credited to the city general fund. Two-thirds of the revenue must be used only for purposes of landfill abatement or for purposes of mitigating and compensating for the local risks, costs, and other adverse effects resulting from the facilities. Minn.Stat.§115A.921, There is an exemption from 25 percent of this fee if the facility has subd.2. implemented a recycling program that the county has approved, and 25 percent if the facility contains a liner and leachate collection system the MPCA has approved. Two-thirds of the revenue from this fee must offset any financial assurances required by the city for a construction debris facility. The maximum revenue that may be collected for this type of fee must be determined by multiplying the total permitted capacity of a facility by 15 cents per cubic yard. Once the maximum revenue has been collected for a facility,the fees in this subdivision may no longer be imposed. 2. Accounting for fees Minn.stat.§ 115A.929. Cities that provide for solid waste management shall account for all revenue collected from waste management fees,together with interest earned on revenue from the fees, separately from other revenue collected by the city. Cities must report revenue collected from the fees and use of the revenue separately from other revenue and use of revenue in any required financial report or audit. Minn.Stat.§115A.03,subd. A city provides solid waste management and is subject to this requirement 36. for a separate accounting and reporting if a city engages in any activities that are intended to affect or control the generation of waste, or engages in any activities that provide for or control the collection,processing, and disposal of waste. State law defines waste management fees as: Minn.Stat.§ 115A.919. • All fees, charges, and surcharges collected under sections 115A.919, Minn.Stat.§115A.921. 115A.921, and 115A.923 of the Minnesota Statutes. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 10 RELEVANT LINKS: Minn.stat.§ 115A.923. • All tipping fees collected at waste management facilities owned or For more information about these fees see Section III.B., operated by the city. City Fees.Minn.stat.§ . All cit chfor waste management services. 115A.929. city charges e collection ang • Any other fees, charges, or surcharges imposed on waste for the purpose of waste management, whether collected directly from generators, indirectly through property taxes, or as part of utility or other charges for city-provided services. Minn.stat.§115A.945. Any city that provides or pays for the costs of collection or disposal of solid waste must,through a billing or other system, make the prorated share of those costs for each solid waste generator visible and obvious to the generator. IV. Solid waste and recycling collection A. Types of collection systems—open collection and organized collection Analysis of Waste Collection The two main types of collection systems for solid waste and recycling are Service Arrangements, Minnesota Pollution Control commonly referred to as "open collection" and"organized collection."A Agency,June 2009. 2009 study authorized by the MPCA estimated that the number of cities with open solid waste collection was between 65 to 80 percent, and the number of cities with organized solid waste collection was between 20 to 35 percent. The same study indicated that the number of cities with open recycling was estimated to be between 40 to 60 percent, and the number of cities with organized recycling was estimated to be between 50 to 60 percent. Open collection is generally defined as a collection system where individual residents and businesses are free to contract with any collector licensed to do business in the city. Minn.Stat.§115A.94,subds. Organized collection is defined as a"system for collecting solid waste in 1,3.See Section IV.D., Procedural requirementsfor which a specified collector, or a member of an organization of collectors, is adopting organized authorized to collect from a defined geographic service area or areas some or collection,for more information. all of the solid waste that is released by generators for collection."A city must comply with certain procedural requirements in the organized collection statute before adopting organized collection of solid waste. Minn.Stat.§115A.94,subd. A city may organize collection as a municipal service where city employees 3. collect solid waste from a defined geographic service area or areas. In the alternative, cities may organize collection by using one or more private collectors or an organization of collectors. The agreement with the private collectors may be made through an ordinance, franchise, license, negotiated or bidded contract, or by other means. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 11 RELEVANT LINKS: Minn.stat.§471.345.Minn. The competitive bidding requirements in state law do not apply to contracts Stat.§412.311.Sclnvandt Sanitation ofPaynesville v. for solid waste collection because a contract for these services does not meet City ofPaynesville,423 the definition of a"contract"that is subject to the Uniform Municipal N.W.2d 59(Minn.Ct.App. 1988). Contracting Law. Minn.stat.§ 115A.94,subd. Organized collection accomplished by contract or as a municipal service 3.Minn.Stat.§115A.86. may include a requirement that all or any portion of the solid waste—except recyclable materials and materials that are processed at a resource-recovery facility at the capacity in operation at the time the requirement is imposed— be delivered to a waste facility identified by the city. In a district or county where a resource-recovery facility has been designated by ordinance, organized collection must conform to the ordinance's requirements. Minn.Stat.§115A.94,subd. Cities areprohibited from establishing or administering organized collection 3. in a way that impairs recycling. Further, cities must exempt recyclable materials from organized collection upon a showing by the person who generates the recyclables or a collector of recyclables that the materials are or will be separated from mixed municipal solid waste by the generator, separately collected, and delivered for reuse in their original form or for use in a manufacturing process. Minn.stat.§ 115A.94,subds. It is not absolutely clear whether a city that decides to enter into an 1,3. Minn.Stat.§115A.03, subds.25a,31.Minn.Stat.§ agreement for the collection of recyclable materials, including source- 116.06,subd.22. separated compostable materials,with one collector or an organization of collectors is required to comply with the procedural requirements in the organized collection statute. The answer likely depends on whether the definition of"solid waste"referenced in the organized collection statute should be interpreted to include recyclable materials. The MPCA has taken the position(while advising cities that they should consult their city attorneys)that recyclable materials, including source- separated compostable materials, are not subject to the organized collection statute because they are not a part of solid waste or mixed municipal solid waste once they have been separated out for separate collection and recycling. Waste Recovery Coop.of The Minnesota Court of Appeals, in a published opinion, considered a Minn.v.Cnty.of Hennepin, 475 N.W.2d 892(Minn.Ct. similar issue of whether telephone directories collected for recycling were App. 1991). subject to a county's designation ordinance requiring mixed municipal solid waste to be disposed of at a county-designated facility. The court of appeals concluded that the telephone directories did not meet the definition of mixed municipal solid waste or of solid waste because they were being collected for recycling in a"separate waste stream"and were not being"discarded" as solid waste. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 12 RELEVANT LINKS: If a city is considering entering into an agreement for the collection of recyclable materials with one collector or an organization of collectors, it should consult its city attorney to determine whether it must follow the procedural requirements in the organized collection statute. B. Organized collection is generally optional Minn.Stat.§115A.94,subd. The organized collection statute provides that the authority to organize the 6. collection of solid waste is optional and is in addition to authority governing solid waste collection granted by other law. The statute also provides that a city may exercise any authority granted by any other law, including a home rule charter,to govern collection of solid waste.A city would only be required to organize collection if the county in which it is located has by ordinance required cities within its jurisdiction to organize collection. Minn.Stat.§ 115A.03,subd. The Waste Management Act defines cities as "statutory and home rule 4.Minn.Stat.§115A.94. charter cities authorized to plan under sections 462.351 to 462.364." Therefore,both statutory and home rule charter cities may adopt organized collection using the procedures outlined in the organized collection statute. Jennissen v.City of The Minnesota Supreme Court has held that the Waste Management Act Bloomington, 913 N.W.2d 456(Minn.2018). does not preempt, under a field-occupation analysis,home rule charter cities from regulating the process for organizing the collection of solid waste. Instead,the Supreme Court concluded that the Act establishes the minimum procedural requirements that home rule charter cities must follow before adopting organized collection. C. Open collection versus organized collection: pros and cons 1. Open collection Analysis of Waste Collection There are several frequently cited advantages of open collection: Service Arrangements, Minnesota Pollution Control Agency,June 2009. • Residents have more choice and are free to select a solid waste collector based on their preference. • There is a direct relationship between the solid waste collector and its customers. • There are minimal administrative costs for cities. • Smaller solid waste collectors are better able to enter the market in an open collection system by servicing a portion of city residents. Analysis of Waste Collection In contrast,there are several frequently cited disadvantages of open Service Arrangements, Minnesota Pollution Control collection: Agency,June 2009. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 13 RELEVANT LINKS: • Open collection generally results in a more expensive monthly cost for residents. • Multiple collectors means more truck traffic and the resulting negative side effects, including the potential for added street maintenance costs, and increased vehicle noise and emissions, fuel consumption, and vehicle accidents. • There may be inconsistent charges for the same level of service in a city. • Cities have reduced ability to manage solid waste collection. 2. Organized collection There are several frequently cited advantages of organized collection: The Benefits ofOrganked • The price paid by households in an organized collection system is Collection,Minnesota Pollution Control Agency, generally lower per month for similar service levels than in an open Feb.2012.Analysis of Waste collection system due to increased efficiencies from serving every Collection Service Arrangements,Minnesota household or business in the community or on a particular route. Pollution Control Agency, . Limitingthe number of solid waste collectors allows cities to decrease June 2009. the impacts of increased truck traffic, including the potential for added street maintenance costs, vehicle noise and emissions, fuel consumption, and vehicle accidents. • Cities have greater ability to manage solid waste collection and can establish service requirements. • Standardized service makes public education easier. • Cities' ability to seek requests for proposals on a regular basis helps lower costs. Analysis of Waste Collection In contrast,there are several frequently cited disadvantages of organized Service Arrangements, Minnesota Pollution Control collection: Agency,June 2009. • Households and businesses do not get to choose their collector. • Cities have greater administrative involvement and costs. • Small collectors have higher entry costs to get into the market and competitive opportunities are limited to contract openings. • The statutory requirements for switching from open collection to organized collection are time consuming and can be difficult politically. D. Procedural requirements for adopting organized collection Minn.Stat.§115A.94.2013 There are several procedural steps a city must take before it is authorized to Minn.Laws ch.45.See Appendix A,Organized adopt organized collection of solid waste. The Minnesota Legislature Collection Flowchart. adopted significant changes to the organized collection statute in 2013 that were designed to simplify the process for adopting organized collection. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 14 RELEVANT LINKS: Any city that has adopted organized collection as of May 1, 2013, is exempt from the new requirements. Minn.Stat.§115A.03,subd. The Waste Management Act defines cities as "statutory and home rule 4.Minn.Stat.§ 115A.94. charter cities authorized to plan under sections 462.351 to 462.364." Therefore,both statutory and home rule charter cities may adopt organized collection using the procedures outlined in the organized collection statute. Jennissen v.City of The Minnesota Supreme Court has held that the Waste Management Act Bloomington, 913 N.W.2d 456(Minn.2018). does not preempt, under a field-occupation analysis, home rule charter cities from regulating the process for organizing the collection of solid waste. Instead,the Supreme Court concluded that the Act establishes the minimum procedural requirements that home rule charter cities must follow before adopting organized collection. 1. Notice to public and to licensed collectors Minn.Stat.§115A.94,subd. A city with more than one licensed collector must first give notice to the 4d.Minn.Stat.§331A.03. public and to all licensed collectors that it is considering adopting organized collection. State law does not specify how notice should be provided. The League recommends providing both published notice and individual mailed notice to each licensed collector. 2. Exclusive negotiation period with licensed collectors Minn.Stat.§115A.94,subd. After the city provides notice of its intent to consider adopting organized 4d.2018 Minn.Laws ch. 177,§5. collection, it must provide a negotiation period that is exclusive between the city and all collectors licensed to operate in the city. Legislation that is effective on Jan. 1, 2019, clarifies that this exclusive negotiation period must be at least 60 days,but may be longer if the city chooses. 2018 Minn.Laws ch. 177,§ For any organized collection noticed on or after Jan. 1, 2019, before the 6. exclusive meetings and negotiation,participating licensed collectors and elected officials must meet and confer regarding waste collection issues, including but not limited to road deterioration,public safety,pricing mechanisms, and contractual considerations unique to organized collection. A city is not required to reach an agreement with the licensed collectors during this period. The purpose of the exclusive negotiation period is to allow the licensed collectors an opportunity to develop a proposal in which they, as members of an organization of collectors, will collect solid waste from designated sections of the city. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 15 RELEVANT LINKS: Minn.stat.§ 115A.94,subd. The proposal must contain identified city priorities, including issues related 4d. to zone creation,traffic, safety, environmental performance, service provided, and price, and must reflect existing collectors maintaining their respective market share of business as determined by each hauler's average customer count during the six months before the beginning of the exclusive negotiation period. Minn.stat.§115A.94,subd. If an existing collector opts to be excluded from the proposal,the city may 4d. allocate its customers proportionally based on market share to the participating collectors who choose to negotiate. Minn.stat.§115A.94,subd. If an organized collection agreement is established as a result of the 4d. Minn.Stat.§115A.94,subd exclusive negotiation period, the initial agreement must be in effect for a 4c. period of three to seven years. For any organized collection noticed on or 2018 Minn.Laws ch. 177,§§ 2,5. after Jan. 1, 2019,the initial agreement must be in effect for seven years. LMC1T staff can assist in Upon execution of an agreement between the participating licensed reviewing city contracts, especially provisions related collectors and the city,the city shall establish organized collection through to insurance and liability. appropriate local controls. The city does not need to establish an organized For more information, contact Chris smith,Risk collections options committee or a solid waste collection options committee Management Attorney,at (2018 legislation, effective Jan. 1, 2019, changes the name of this csmith@lmc.org or 651-281- 1269. committee) if it reaches an agreement with the licensed haulers during the exclusive negotiation period; however,the city must first provide public notice and a public hearing before officially deciding to implement organized collection. Organized collection may begin no sooner than six months after the effective date of the city's decision to implement organized collection. 3. Organized collection options committee or solid waste collection options committee Minn.Stat.§115A.94 subd If a city does not reach an agreement with its licensed collectors during the 4a.Minn.Stat.ch. 13D. exclusive negotiation period, it can form by resolution an"organized collection options committee"to study various methods of organized 2018 Minn.Laws ch. 177,§ collection and to issue a report. For any organized collection noticed on or 2 after Jan. 1, 2019,the name of such a committee shall be the "solid waste collection options committee." The city council appoints the committee members. The committee is subject to the open meeting law and has several mandatory duties. Minn.Stat.§115A.94,subd. First,the committee shall determine which methods of solid waste collection 4b. to examine,which must include at least two methods of organized collection: (1) a system in which a single collector collects solid waste from all sections of the city; and (2) a system in which multiple collectors, either 2018 Minn.Laws,ch.177,§ singly or as members of an organization of collectors, collect solid waste 3. from different sections of the city. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 16 RELEVANT LINKS: For any organized collection noticed on or after Jan. 1, 2019, the committee must also examine a third method of solid waste collection:the existing system of collection. Minn.stat.§115A.94,subd. Second,the committee shall establish a list of criteria on which the 46. organized collection methods selected for examination will be evaluated, which may include: costs to residential subscribers, miles driven by collection vehicles on city streets and alleys, initial and operating costs of implementing the solid waste collection system,providing incentives for waste reduction, impacts on solid waste collectors, and other physical, economic, fiscal, social, environmental, and aesthetic impacts. For any 2018 Minn.Laws ch. 177,§ organized collection noticed on or after Jan. 1, 2019,the criteria may also 3. include the impacts on residential subscribers' ability to choose a provider of solid waste service based on the desired level of service, costs and any other factors,the impact of miles driven on city streets and alleys and the incremental impact of miles driven by collection vehicles. Minn.Stat.§ 115A.94,subd. Third,the committee shall collect information regarding the operation and 4b. efficacy of existing methods of organized collection in other cities and towns. Minn.Stat.§ 115A.94,subs. Fourth,the committee shall seek input from, at a minimum: 4b. • The city council • The city official responsible for solid waste issues • Persons currently licensed to operate solid waste collection and recycling services in the city • City residents who currently pay for residential solid waste collection services Minn.Stat.§115A.94,subd. Finally,the committee must issue a report on its research, findings, and any 4b. recommendations to the city council. 4. Public notice and public hearing Minn.Stat.§115A.94,subs. A city council shall consider the report and recommendations of the 4c. committee. A city must provide public notice and hold at least one public hearing before deciding to implement organized collection. 5. Implementation Minn.Stat.§ 115A.94,subd. A city can begin organized collection no sooner than six months after the 4c. Minn.Stat.§ 115A.94,subd. effective date of the city's decision to implement organized collection. A 3. city may organize collection as a municipal service where city employees collect solid waste from a defined geographic service area or areas. In the alternative, cities may organize collection by using one or more private solid waste collectors or an organization of collectors. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 17 RELEVANT LINKS: An agreement with private collectors may be made through an ordinance, franchise, license, negotiated or bidded contract, or by other means. 6. Anticompetitive conduct A city that organizes collection is authorized to engage in anticompetitive conduct to the extent necessary to plan and implement its chosen organized collection system, and is immune from liability under state laws relating to antitrust, restraint of trade, and unfair practices, and other regulation of trade or commerce. 7. Joint liability limited Minn.stat.§604.02. For any organized collection noticed on or after Jan. 1, 2019, any resulting 2018 Minn.Laws ch. 177,§ 7. organized collection agreement must not obligate a participating licensed collector for damages to third parties solely caused by another participating licensed collector, notwithstanding section 604.02 of the Minnesota Statutes. The organized collection agreement may include joint obligations for actions that are undertaken by all the participating collectors. V. Conclusion Cities have broad authority to regulate the collection and disposal of solid waste. Cities exercise this authority subject to state and county oversight. Cities should work closely with their city attorneys when exercising this authority by requiring licenses, imposing fees and assessments, entering into contracts, and adopting ordinances. Cities must comply with procedural requirements in the organized collection statute before they may adopt organized collection of solid waste. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 18 Appendix A: Organized Collection Flowchart City council provides notice of its intent to consider organized collection to the public and to all licensed solid waste collectors. City exclusively negotiates with its licensed collectors for at least 60 days to see if an agreement for organized collection can be reached.Before exclusive negotiations begin, elected officials and participating licensed collectors must meet and discuss waste collection issues, including but not limited to road deterioration, public safety,pricing mechanisms, and contractual considerations unique to organized collection. Collectors reach an agreement and provide city Collectors do not City council decides council with a proposal for reach an not to implement organized collection. agreement. organized collection. City council provides City council adopts a resolution to public notice and holds establish a committee to identify, a public hearing on the examine, evaluate,and seek input proposal. regarding various methods of organized collection. The committee is subject to the open meeting law. City council approves proposal The committee studies organized and decides to implement City council rejects collection and issues a report with its organized collection.Any collectors' proposal. findings and recommendations. initial agreement reached must be in effect for three to seven years.For organized collection noticed after Jan. 1,2019,any initial agreement must be in effect for seven ears. City council considers the report. City council implements organized collection according to After city council provides public notice City council decides not the agreement. Organized and holds a public hearing,it decides to to implement organized collection may begin no sooner implement organized collection. collection. than six months after the Organized collection may begin no effective date of the city sooner than six months after the effective council's decision to implement date of the city council's decision to organized collection. implement organized collection. League of Minnesota Cities Information Memo: 9/19/2018 City Solid Waste Management Page 19 September 10,2020 -.1 � � COUNT Y Goal Increase access to organics composting for all Dakota County residents. Objective Contribute to the legislative recycling rate goal of 75% recycling(includes organics) by 2030 through city/County partnerships. Background Dakota County is allocating funds and resources for cities to establish residential organics drop-off sites.These sites will increase access to organics composting for all residents. Drop-off sites will provide residents with an opportunity to divert food scraps from landfills and will help prepare for the future implementation of curbside organics collection by raising awareness about what commercial organics composting is,why it is important,and how to get started. Diverting food and other organics is the biggest opportunity to achieve legislative recycling rate goal of 75%by 2030 organics make up about 30 percent of the trash. Diverting organics from the waste stream reduces methane emission from landfills.The use of finished compost enriches soil, retains moisture and suppresses plant diseases and pests. It also reduces the need for chemical fertilizers. Project Dakota County is prepared to partner with cities to open at least 10 organics drop-off sites over the next 2-3 years.The sites are intended to be short-term. It is anticipated that residential curbside collection of organics will be widely available throughout the region in 5-10 years. Proposed Roles and Responsibilities:a joint powers agreement will be executed with defined roles and responsibilities such as: County provided: Municipality provided: • Planning and Support • Site location: • Reimbursements for: o Municipal parking lot or other publicly- • Start-up site costs (signage, accessible area compostable bag containers,etc.) • Staff time: o Compostable bags o Purchase,store, and distribute compostable o Hauling and disposal bags to participants • City-wide recruitment o Remove snow and ice from drop-off area • Ongoing program registration o Install site location sign • Welcome Kit distribution o Retain licensed waste hauling services using • Public training sessions adequate cart or dumpster sizes and ata • Dedicated program email frequency necessary for a clean and well- • Dedicated program webpage maintained site • Ongoing communication (site specific • Submit reimbursement requests to County for: Listserv) o Start-up, hauling services,compostable bags o Other costs preapproved by County liaison • Additional Requirements: o Collaborate with the County to plan implementation and promote the site o Provide contact information for a city employee that manages the site o Report basic information, including collected volumes,dumpster sizes and service frequency o Allow all County residents to use the site September 10,2020 Funding Priorities The County will use the following criteria to prioritize proposals: • City does not have an existing residential organics drop-off site • Site contributes to the geographic diversity of drop-off locations throughout the County • City demonstrates readiness to move forward • Efforts are made to minimize site preparation expenses Metro Examples As shown below,the City of Richfield, in partnership with Hennepin County; provides a convenient, low-cost drop site opportunity for its residents at Wood Lake Nature Center. Collection service is provided weekly. � a pyo W In addition,the City of Lino Lakes, in partnership with Anoka County; provides four(4) drop-off sites within their local park system. Each location is serviced weekly. Below is an example of their sites: I H t 9 Next Steps County staff would like to schedule an introductory meeting with your team to further discuss the project and answer your questions. Please contact: John Exner Email: iohn.exner@co.dakota.mn.us Phone:320-761-4385 (mobile) CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: 2020 1 nterfund Transfers Review and Expenditures Discussion (30 Minutes) DATE: April 5, 2021 INTRODUCTION Transfers of money between funds occur for various reasons. The following is not an exhaustive list, but will provide you with some examples. • Sometimes transfers are made as part of a long-term funding strategy often in conjunction with a capital improvement plan (Cl P). Some specific city examples would be transfers made to the sealcoating, building maintenance, and trail maintenance. • The city may want to save money over several years for a larger purchase(such as the fire engine) or recurring replacement purchases (for example, items replaced on rotation schedules, such as police and fire equipment). • Transfers are made when the city invests its liquor stores community improvement funds. • Administrative transfers provide for the reimbursement of human resource and administrative costs incurred in one fund for the benefit of another fund. Another type of administrative transfer would be more house-keeping in nature,for example completing closing entries for accounts that are no longer needed. • Finally, no matter how comprehensive and well thought out the city's budget or current year plan may be new, unanticipated opportunities often present themselves. During year-end staff reconciles the actual transfers which were made to the budgeted amounts.The differences are identified and reviewed with you. Reviewing this information annually also provides an excellent opportunity for you to see the positive impacts you have had with these transfers. DISCUSSION The attached comprehensive schedule details the interfund transfers that occurred during 2020. The transfers are grouped into four color-coded categories. • Gray—Amounts highlighted in gray represent amounts that were included in the 2020 budget and transferred accordingly. • Yellow—I ncluded in the yellow cells are amounts which were listed as transfers for budget purposes. These amounts were for interfund loans. For accounting purposes these amounts are not recorded as transfers, rather they are recorded as interfund receivables and payables.The city's budgeting process is for revenues and expenditures. We include these items as transfers in the budgeting process so it is clear to council we envision these types of transactions and they are part of the budgeted activities. • Maroon—These transfers occurred during the year but were not included in the 2020 budget. Those include: • $15,600 from the General Fund for K9 funding to replace Odin. • $70,000 from the General Fund to the arena for operations. The arena lost nearly$75,000 in revenue due to COV I D and we did not want to punish this fund due to the pandemic. • $1,156,674 for Ladder One.The bond issuance was completed in January 2020. • $200,000 from liquor store proceeds to the arena for capital projects. • $200,000 to the sealcoat fund for street maintenance. • $30,800 from the General Fund to Forestry Management to fund tree trimming and EAB treatments in 2020.The account was underfunded at$10,000 for the work that needed to be completed. • $696 from the General Fund to Township Road Maintenance to pay for additional costs.The annual transfer is $3,000. • Orange—These represent amounts that were included in the 2020 budget, but not listed as transfers. For accounting purposes these amounts are included as transfers. One example would be the insurance deductible replenishment. There are explanations for many of the amounts are included in your packet.The row(numbers) and column (letters) references have been included in the spreadsheet.This will enable you to cross- reference the cell on the worksheet with the corresponding comment on the following pages. The 2020 General Fund budget fared very well throughout the year.There were several revenue line items (e.g. permit revenue and fire charges)that exceeded budget and several expenditure areas (e.g. recreation programs and liquor licensing)that were under budget.The city also received funding from the CARES Act.A more in depth review of the 2020 financial statements will be provided to you at a subsequent city council meeting. Per the Minnesota State Auditor,the recommended General Fund fund balance is 35 to 50 percent of the following year's expenditures.The city's fund balance policy is to maintain a balance between 40 and 50 percent. At the end of 2019,the balance was 42.2 percent. It is important for the city to continue to increase the fund balance in an effort to strive toward a AAA credit rating. Due to revenues coming in higher that budgeted, expenditures lower, and CARES funding,the General Fund fund balance will exceed the 42.2 percent that it was at the end of 2019. Using a portion of those funds,the city has funded four of the items listed in maroon on the transfers sheet including: K9,Arena, Forestry Management, and Township Road Maintenance.After those transfers the city has a projected General Fund fund balance of 54.2 percent at the end of 2020. The increased fund balance provides the city council with opportunities to fund other items within the city. Staff is proposing to maintain a 45 percent fund balance which is an increase over 2019. If the city council chooses to do that there is roughly$1,235,000 in funds that can be transferred to fund additional items. City Administrator McKnight and I received feedback from staff on proposed items to fund. The comprehensive list is attached along with our recommendations on specific items. When reviewing the items, keep in mind that this funding is one-time and unlikely to happen in the future. If the council chooses not to proceed with any transfers,the funds will remain in the General Fund leaving a balance of 54.2 percent. When reviewing the items,Administrator McKnight and I looked at items that could likely make a one-time impact rather than needing to be relied on for the future. Some of those include the downtown sidewalks, speed trailer for the police department,city hall floor scrubber,holiday decorations,new street banners, parking lot repairs,and an upgrade to the cardboard recycling area. The first item listed is a plow truck for fleet.The city's fleet replacement plan has been delayed numerous years resulting in the deteriorating condition of some vehicles and equipment. The city council set aside excess funds from 2018 that allowed the city to replace numerous items in 2020. The plow truck listed was approved by council and ordered in early 2020 with the other items ordered and scheduled for build in 2021. It allowed the city to take advantage of 2020 pricing. Larger purchases such as the plow truck are used by various departments throughout the city and cannot be attributed to only one.Therefore,the cost of the purchase rotates which fund pays for it. This is an item that should be funded by the General Fund this year. Additional grant funding for the EDA has been included to assist with the increasing number of grant requests that have been received.The Forestry Management account is underfunded to accommodate the needs for 2021. The proposed amount is based upon the last four years of expenditures.The fire radio replacement would assist the department in upgrading a significant portion of the radios at the same time rather than a select few each year. The proposed transfers are roughly$7,000 higher than the recommended amount of$1,235,000 from the General Fund.The potential transfer amount is subject to change until audit is final.The list is vast and includes numerous other items that would benefit the city, such as replacing the Toro mower.The items and amounts can be updated per the direction of the city council. Two items to keep in mind in this area. The city council will soon be asked to review items that could be funded through liquor store profits earned in 2020. 1 n addition, staff is still gathering information on the funding we will receive from the America Recovery Act that could fund some of the projects proposed by city staff that are not being recommended at this time with the transfers. BUDGET IMPACT Budget variances have been explained above. ACTION REQUESTED • Review the material presented, ask questions and provide direction to staff. • You will be asked to approve the comprehensive list of transfers during your regular April 19, 2021 city council meeting. ATTACHMENTS: Type Description D Backup Material 2020 Operating Transfers D Backup Material 2020 Transfer Proposals i�. § P ■ 10 Of \ \1. 2\ � § (1)-2 w£ ` ~ )§ \ \! lu ,2 ■§ \ z § § �[ !§ , �) § ( \ ) / ) § \ ( } \ ! ) \ i 21 1 Cell:X6 Comment:Teah Matecha: $3,000 budgeted Cell:Z6 Comment:Teah Malecha: Employer portion of EE's insurance premium Cell:AA6 Comment Teah Malecha: Budgeted transfer for insurance deductible-10k removed in 21320 Cell:M70 Comment:Teah Malecha: 201 BA interest pymt for interfund loan,attributed to 2010C,but to minimize spacial assessment prepayment risk for 2016A bands Call:M11 Comment:Teah Malec ha: Represents annual debt service for 2010A which is used to repay Storm Water Trunk intarkmd loan.Actually doesnt flow through operating transfers,but is shown that way for budget purposes. Cell:M13 Comment Teah Malecha: Represents annual debt service for 20050 which is used to repay Storm Water Trunk interfund loan.Actually doesn't flowthrough operating transfers,but is shown that way for budget purposes. Cell:M16 Comment:Teah Malec a: Represents annual debt service for 2010D which is used to repay Storm Water Trunk interfund loan.Actually doesn't flowthrough operating transfers,but is shown Mat way for budget purposes.2020 Final Payment Call:L17 Comment Teah Malecha: Added 111520 Cell:E18 Comment Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Cell:E19 Comment Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Cell:AA19 Comment Teah Malecha: Budgeted transfer for insurance deductible Can:E20 Comment:Teah Malecha: Amounts per worksheet in @H Drive-Budget 2020 Updated 2019 Salary Distribution for Operating Transfers Cell:Y20 Comment Teah Malecha: Amounts per werksheat in @H Driva-Budget 2020 Updated 2019 Salary Distribution for Operating Transfers Call:E21 Comment Taah Malecha: Approx 4%increase rounded W be evenly divided by 12(i.e.monthly transfers) Cell:AA21 Comment Teah Malecha: Budgeted transfer for insurerwe deductible Cell:E22 Comment Teah Malecha: Amounts per worksheet in @H Drive-Budget 2020 Updated 2019 Salary Distribution for Operating Transfers Cell:E23 Comment:Teah Malecha: Approx 4%increase rounded to be evenly divided by 12(i.e.monthly transfers) Call:AA23 Comment:Teah Malecha: Budgeted transfer for insurance deductible Call:E24 Comment Teah Maisons: Amounts per worksheet in @H Drive-Budget 2020 Updated 2019 Salary Distribution for Operating Trensf hs Calk Y24 Comment Teah Malecha: Amounts par worksheet in @H Ort—Budget 2020 Updated 2019 Salary Distribution for Operating Transfers Cell:E25 Comment:Teah Maleoha: Approz 4%increase rounded to be evenly divided by 12(1.e.monthly transfers) Cell:E26 Comment:Teah Maleche: Amounta per—1 aheat in @H Drive-Budget 2020 Updated 2019 Salary Distribution for Operating Transfers Cell:Y26 Comment:Teah Malecha: Amounts par vmrksheet in @H Drive-Budget 2020 Updated 2019 Salary Distribution for Operating Transfers CITY OF FARMINGTON 2020 TRANSFERS POTENTIAL PROJECTS ITEM COMMENT ALL PROPOSED FLEET(PLOW TRUCK) General Fund's turn to purchase a new plow truck $225,000 $225,000 MILL/OVERLAY PROJECTS Increased funding for our annual mill/overlay projects $100,000 STREET MAINTENANCE Increased funding for our annual street maintenance projects $100,000 EDA GRANTS Increased funding for EDA grants $50,000 $50,000 COMMUNICATION PLAN Hire an outside consultant to assist with the proposed communication plan $40,000 ONBOARDING PROGRAM $20,000 NEO GOV $50,000 FIRE CHIEFS VEHICLE Replacement of our oldest vehicle used by our fire chiefs $60,000 FIRE RADIOS Upgrade the remaining fire radios at one time $150,000 $150,000 FIRE STATION LAND Purchase land for future fire station next to new water tower $300,000 FORESTRY MANAGEMENT/EAB Increased funding for our EAB/other forestry programs $65,000 $45,000 DOWNTOWN SIDEWALKS Additional funding to repair downtown sidewalks $300,000 $300,000 SPEED TRAILER Additional speed trailer for the police department $17,000 $17,000 CARD READER SYSTEM UPGRADE Physical security card reader upgrade $50,000 CMF CAMERA REPLACEMENT Replace camera pole at CMF overlooking recycling area $10,000 IT PROFESSIONAL SERVICES Potential project in a variety of areas $65,000 REPLACE SWITCHES RRC,Fire 1,Fire 2,CMF,arena and liquor stores upgrade $15,000 JEF FLEET SOFTWARE $45,000 SURFACE LAPTOPS Space surfaces for when needed $10,000 GRAPHICS CARD FOR GIS $5,000 EOS GPS SURVEY MOBILE DEVICES GIS and street condition tracker(2) $16,000 FIBER PROJECTS Akin to Highway 3 for potential watertower connection $200,000 FIBER PROJECTS Elm/Highway 3 south to new liqour store $70,000 AVL INTEGRATED SYSTEM $10,000 CITY HALL FLOOR SCRUBBER $7,500 $7,500 ROUNDABOUT TRAIL PROJECT Funding for trail on east side of Highway 3 south of new roundabout $50,000 RR PARK TRAIL REPLACEMENT Replacement of trails in RRP $100,000 HOLIDAY DECORATIONS Downtown holiday decorations $30,000 $30,000 NEW STREET BANNERS Banners to hang on steet lights downtown $10,000 $10,000 PARK IMP FUND TRANSFER $50,000 TRAIL MAINTENANCE FUND TRANSFER $50,000 FACILITY MAINTENANCE FUND TRANSFER $50,000 FLOOR POLISHING UNIT $3,000 TORO MOWER New mower to be used in our parks system to replaced aged equipment $125,000 PARKING LOTS Replacement of parking lots at RRC,RRP,Arena,Feely Fields $500,000 $400,000 JH-QUARTERLY BILLING PROCESS UPGRADE $15,000 2021 COMMUNITY SURVEY Community survey in conjunction with possible 2022 ballot question $30,000 CARDBOARD RECYCLING AREA UPGRADE Concrete installation in cardboard recycling/organics recycling area $7,500 $7,500 TOTAL 1 1 $3,001,000 1 $1,242,000