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CC PACKET 07082014
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CC PACKET 07082014
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7/7/2014 7:44:29 AM
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7/2/2014 1:53:53 PM
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City Council
Meeting Date
7/8/2014
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Regular
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Council Agenda/Packets
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City Code Chapter Amendment
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72 <br />• Trash disposal costs (i.e., tipping fees at resource recovery facilities) vary by county. <br />• Relative amount of the recycling price vs. trash price. How much of the trash costs <br />are shifted into the recycling price to avoid the government taxes? <br />• City buildings and other facilities included in base price (without additional charge) <br />vs. excluded as a separate pay item. <br />• Special events collections included in the base price (without additional charge) vs. <br />excluded or as a separate pay item. <br />Attachment I at the end of this memo (see page 8) shows the details of contract prices <br />(before taxes) from the other 10 selected cities. In general, these are "bundled" contracts that <br />include both trash and recycling. <br />Some of these cities in this list in Attachment 1 have a consortium of collectors serving under <br />one contract (e.g., Little Canada, Champlin). Each city with a consortium has a unique <br />history of how the consortium was developed. In general, the collection service contract <br />procurement process has involved some element of negotiation for cities that have a <br />consortium. All other cities used a more standard request for proposals (RFP) procurement <br />process for selecting their contractor and establishing the contract prices. <br />Other Studies <br />Several other studies have found while price related issues are complex, residents in <br />organized collection systems can and do pay less than residents of open collection systems. <br />The Minnesota Pollution Control Agency (MPCA) commissioned a study in 2009 on various <br />solid waste and recycling collection systems.' The MPCA study also found that rates vary <br />considerably within a single open hauling city and even vary by hauler providing the same <br />level of service. One explanation is that it is a common practice in open hauling <br />communities for collectors to offer introductory rates (e.g., starter price for the first three <br />months) and other discounts. Many other variables also impact the price of service in open <br />hauling communities. <br />Cost issues were covered from a number of approaches in the MPCA study including the <br />literature review, municipal surveys of 50 Minnesota cities, and the in-depth analysis of 10 <br />Minnesota cities. MPCA summarized the rates analysis comTaring solid waste prices for <br />organized (contract) collection versus open hauling systems. See Table 4 on the next page <br />for the MPCA summary of prices. Cities with a population over 10,000 were selected for a <br />survey about trash and recycling rates. The data in Table 4 represents results from 20 <br />organized contracts and 67 different hauler bills from open hauling cities. The prices <br />' Minnesota Pollution Control Agency (MPCA), "Analysis of Waste Collection Service Arrangements" by <br />Foth Infrastructure & Environment, LLC (lune 2009): <br />hit://www.pca. state. mn. us/index. php/waste/waste-and-cleanup/waste-management/solid-waste/i ntegrated- <br />so lid-waste-managemenUwaste-col lection-service-arran gements. htm I <br />z MPCA fact sheet, "The Benefits of Organized Collection: Waste Collection Service Arrangements <br />(February2013): htty://www.pca.state.mn.us/index.pho/view-document.html?gid=17347 <br />
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