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HomeMy WebLinkAbout05.17.21 Work Session Packet CITY OF Meeting Location: FARMINGTONFarmington City Hall 430 Third Street _ Farmington, MN 55024 CITY COUNCIL WORK SESSION MEETING AGENDA May 17, 2021 5:00 PM 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS (a) Solid Waste Operations Discussion (50 Minutes) (b) City Council Discussion Items (45 Minutes) 4. CITY ADMINISTRATOR UPDATE 5. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ®an ® Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, PWD/City Engineer SUBJECT: Solid Waste Operations Discussion (50 Minutes) DATE: May 17, 2021 INTRODUCTION At the April work session,the council discussed solid waste operations and provided direction for future discussions. DISCUSSION The council asked to review the financial model projected out to 10-years and incorporating an estimated adjustment for 2022 to reflect the change to weekly recycling. This model has been attached for discussion at the work session. Please keep the following in mind: 1. This is a model based on historical averages and our best estimation of schedule and cost of future needs. The goal of the model is to assist in determining funding revenues whether using rate adjustments or considering other revenue sources. This model is reviewed and adjusted on an annual basis. 2. The information is most accurate in the first two years of the model. As we look further in the future, there is room for more variability of needs and costs. That being said, looking this far in the future helps to program larger capital projects, and shows impacts of trends. 3. The model shows quite a bit of information to document assumptions used for the outcomes shown. Some key points to make with the current model: • Annual increases in tonnage are based on historical collection information which is used to calculate the disposal costs (garbage). • An estimated increase in the cost of recycling due to weekly collection has been applied based on recent conversations with our vendor. • Other operating costs utilize a 3% inflationary factor. Within the operating expenses shown in the model, there is the following general breakdown of expenses: Direct Solid Waste Operations $ 627,000 Shared Expenses Facilities Operation & Maintenance $ 50,000 T $40,000 Utility Billing(staffing and operating) $ 33,000 Other Administrative costs $ 110,000 Dakota County Solid Waste Compliance $45,000 Total Shared Expenses $278,000 Using the above information, the council can continue discussions related to the solid waste contracts. Staff is prepared to answer questions related to the contracts and options for operations. BUDGET IMPACT N/A ACTION REQUESTED N/A ATTACHMENTS: Type Description D Backup Material Solid Waste Financial Model Service Details 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Solid Waste Rates Disposal Fee for Rolloffs,par To. Beginning Fund Balance: $ 1,327,471 $ $77,558 $ 786,417 S 591,373 $ 858,998 $ 733,134 $ 986,944 S 887,706 $ 1,123,848 $ 1,349,888 IF -1,563,852 Revenues Enterprise Sales 'County Community Fund;g Other Revenue(interest,Permits,Advertising, etc.) Expenses Operabng Expenses Transfers Operating(personnel) Potential HR Staff Allocation Shift Disposal Costs(i.e.Tipping Fees) Contract Recycling Annual Surplus/Deficit $ (349,913) $ (181,141) S (205,044) $ 267,624 $ (125,864) $ 253,810 3 (99,239) $ 236,143 $ 225,750 $ 214,253 $ (321,999) Ending Fund Balance: $ 977,558 $ 796,417 $ 591,373 $ 858,998 $ 733,134 $ 986,944 $ 887,705 $ 1,123,848 $ 1,349,598 $ 1,563,8S2 $ 1,241,852 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: City Council Discussion Items (45 Minutes) DATE: May 17, 2021 INTRODUCTION Members of the city council asked for time to discuss a variety of issues recently. This time can be used to discuss these community related issues that members would like to discuss. DISCUSSION Please share the items you would like to discuss with the city council. Any appropriate follow up action on the issues can be discussed as well. BUDGET IMPACT NA ACTION REQUESTED Discuss the issues of relevance from city councilmembers.