02-28-2007 Council Agenda - Laserfiche WebLink

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e S gana1a MAYOR Bill Blesener COUNCIL Rick Montour Barbara Allan John Keis Michael McGraw 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson www.ci.little-canada.mn.us MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: February 16, 2007 RE: Tipping Fee Increases/ Organized Collection Contract Attached is a portion of the new organized collection contract. I wanted to inform you and the public that the contract will see additional rate increases due to increasing tipping fees at Refuse Derived Fuel facility in Newport. The increases result from a sale of the unit to another entity and subsequent negotiations with Ramsey County. The County has approved the following tipping fees: 1/1/07 — 6/30/07 $34 per ton (that has been the rate in effect for the last couple of years.) 7/1/07 — 12/31/07 $38 per ton 2008 $43 per ton 2009 $47 per ton 2010 $52 per ton 2011 $54 per ton The County expects increases in 2009 and beyond to be offset by reductions in the tax rate applied to solid waste (currently 37.75 %). As a result, our rates will increase for the portion tied to the tipping fee. The haulers have no control over this and we are obtaining the lowest rate available. Attachment A from the contract shows the impact under the line entitled "Disposal Fee ". The escalators we built into the contract are reelected under the lines entitled "Collection Fee ", "Single Sort Recycling ", and `Bulky Item Fee ". It should also be understood that should tipping fees increase or decrease from what is depicted in Attachment A, then corresponding adjustments in the rates will also occur.