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Home My WebLink About12-10-07 Item 7D Resolution 07-72 City Curbside Recycling Porgram Fee ~ ~HILLS Request for Council Action Prepared By: James Lehnho Dept.: ~~~~i1junity_ D~ _ lop~,~l1t Council Mtg, Date:.... .."", .. u---"---12":10:07" """'" Final Action Needed By: "12:10:07 ' Agenda ftem: 7.0 Actual Amount: Funding ~~~j4ncjE~et~nlR~9!!i~iliiili~01H.~,.:~.,.,~__________________________nn__n'n'...mm..................'-"_-'___________n____________-._..-........."."..."....,..'.__'-'--'n_________________n__n'__.-"mm....."'.......-'_......__-'n_______n________-.__.-......".'.m.'."....,..,'-_______________________ [Approve Resolution 07.72: Setting the 2008 City af Arden Hills Recycling Fee for the Residential Curbside Recycling Program. ~t@'3!Bc~j[~i!!ll!:i~i:l'!!!t~p]l]!!~~;jB1i!!!iiil!bm!.."..,....,",..,....,..................,....,..".."..,..,......,....u....".."..,.."..,..,..........................,........,....,....,.."....,....,......,..,......,..............................................................,....,....,....,......,............................................................,.."..,....,....,.."..".., iApprove Resolution 07~72: Setting the 2008 City af Arden Hills Recycling Fee for the Residential Curbside Recycling Program, X December 10, 2007, Memo to the City Council .... X No.: 07-72 (option 1 and 2) No.: 11\:j Recommendation: Recommendation: Other: [E!RaD!5IS;!il!m~i.L~jl~ffi~~UulEj;_d~~J_E5JIDJUiliJJlift"..'-"..._.'-_____________________"......,..,...........'--'____,,____________..__...........,..........___ _ ________________.._...._.........,........'-'-....-'__ _____________.._____,__...........,.......__,__'- _ ___________..____..,...'''...._.._ _-'_ _ ... _ _ _ _ __......,........'-,'-....... _ _ _ _ ........, ........,........ . In addition to the yearly SCORE grant, the residential recycling fee IS the primary fu-nding source for the residential" curbside-iecyCling program. The fee is applied to property taxes to those properties receiving recycling services. 1~liTDlOj~j",!gr.[~!ii!l~orriml,\]~\mm;m!'!'2,j ~--o'ptio-n 1 should~"be approved if Eureka Recycling is chosen a'-s..-t'ile City's curbside recycling hiiliTer and Option 2 should'Tie approved if i Walters Recycling is chosen. . DATE: December 10, 2007 CC Agenda Item 7.D ~ /]'\~ HILLS MEMORANDUM TO: Mayor & City Council FROM: James Lehnhoff, if City Planner & R~Ycling Coordinator SUBJECT: Resolution 07-72 Setting the 2008 Curbside Recycling Fee Action Request Approve Resolution 07-72: Setting the 2008 City of Arden Hills Recycling Fee for the Residential Curbside Recycling Program. Backl!round The City's recycling program is paid for with the SCORE recycling grant from Ramsey County and from a recycling fee that is included on the property tax statement for participating residential properties, The SCORE grant is typically around $20,000, and the remainder of the program is paid for with the special fee. The recycling fee in 2005, 2006, and 2007 was $26.25 per household. The cost of the 2008 program will depend which company is selected as the new curbside residential recycling hauler for the City. In previous years, the cost of the recycling program has been very clear since the cost of the program did not change each year, While there is a definite cap on the cost of the program, the revenue sharing agreement may reduce the actual cost ofthe program depending on how much revenue is generated. Eureka and Walters indicated that their revenue sharing estimates were conservative; however, there is some inherent uncertainty in the revenue sharing number over time since it is dependent on market conditions. For example, if the City assumes that Eureka's cost will be $2.25 per household per month for budgeting purposes but the actual cost at the end of the year is $2.35 per household per month, there could be a deficit in the recycling budget. However, not incorporating revenue sharing into the budget could result in a recycling budget surplus at the end ofthe year. When taking the SCORE grant revenue, administration costs, and the community cleanup day costs into account, the cost ofthe recycling would not exceed $37.25 with Eureka and $36.00 with Walters per household per year. It is almost certain that the cost to the City will be reduced with revenue sharing. The chart below shows what the yearly fee per household would need to \\Metro-inet.uslardenhills\PlanninglRecycling\2007\121007 - 2008 Curbside Recycling Fee Resolution Memo.doc Page 1 of2 be if there is 1) no revenue sharing, 2) half the revenue sharing of what Eureka and Walters estimates, and 3) full revenue sharing based on the Eureka and Walters estimates, Eureka Walters Re1.enue Yearly Fee Re1.enue Yearly Option Share per HH Share per HH Fee per per Month per HH per Month HH 1, No Rev Share $ - $ 37,25 $ - $ 36,00 2, Half Est Rev Share $ 0,35 $ 33,10 $ 0,17 $ 33,90 3, Full Est Rev Share $ 0.70 $ 29,00 $ 0.34 $ 31,85 According to the City Attorney, the revenue sharing money can not be transferred to other funds to be used for non-recycling related projects. Therefore, Staff is recommending that for the first year ofthe recycling program budget, the recycling fee be set at the actual cost of the program and not include revenue sharing. If revenue sharing generates money as Eureka and Walters suggests, that money can then be used to reduce the cost per household of the program or for other recycling related programs and activities. If the full revenue sharing estimates prove to be accurate, the City would receive approximately $21,504 from Eureka in 2008 or $10,445 from Walters in 2008 to be used toward the 2009 recycling budget. This could reduce the cost per household in 2009 by $8.40 with Eureka or $4.08 with Walters. Recommendation Option 1: Approve Resolution 07-72 Setting the 2008 Residential Curbside Recycling Fee at $37.25 if Eureka Recycling is Chosen as the City's Recycling Hauler. Option 2: Approve Resolution 07-72 Setting the 2008 Residential Curbside Recycling Fee at $36.00 if Walters Recycling is Chosen as the City's Recycling Hauler. Attachments Option I - Resolution 07-72: Resolution Setting the 2008 Residential Curbside Recycling Fee Option 2 - Resolution 07-72: Resolution Setting the 2008 Residential Curbside Recycling Fee \lMetro-inet.us\ardenhills\Planning\Recycling\20071121007 - 2008 Curbside Recycling Fee Resolution Memo,doc Page 2 of2 Option 1: Setting the 2008 Recycling Fee at $37.25 per Household (Eureka Recycling) ~ ~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 07-72 A RESOLUTION ESTABLISHING SERVICE FEE CHARGE FOR 2008 RESIDENTIAL CURBSIDE RECYCLING PROGRAM WHEREAS, the City of Arden Hills has an established curbside recycling program in place for Arden Hills residents; and WHEREAS, the City will continue the program into the year 2008, and WHEREAS, the City Council of Arden Hills has entered into a Joint Powers Agreement (JP A) with Ramsey County to assess individual residential property owners fees to support the recycling program; and WHEREAS, the City of Arden Hills wishes to continue this funding mechanism. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota: That the funding rate for residential recycling for the year 2008 is hereby established at $37.25 per residential parceL PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 10th DAY OF DECEMBER, 2007. ATTEST: STAN HARPSTEAD, MAYOR MICHELLE A. WOLFE, CITY ADMINISTRATOR Certification: STATE OF MINNESOTA) COUNTY OF RAMSEY) CITY OF ARDEN HILLS) I hereby certify that Resolution No. 07-72 is a true and correct copy presented to and adopted by the City Council of the City of Arden Hills at a meeting thereof held in the City of Arden Hills, Ramsey County, Minnesota, on the 10th day of December, 2007. Noah A. Simon Assistant City Administrator/ Deputy City Clerk Option 2: Setting the 2008 Recycling Fee at $36.00 per Household (Walters Recycling) ~ ~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 07-72 A RESOLUTION ESTABLISHING SERVICE FEE CHARGE FOR 2008 RESIDENTIAL CURBSIDE RECYCLING PROGRAM WHEREAS, the City of Arden Hills has an established curbside recycling program in place for Arden Hills residents; and WHEREAS, the City will continue the program into the year 2008, and WHEREAS, the City Council of Arden Hills has entered into a Joint Powers Agreement (JP A) with Ramsey County to assess individual residential property owners fees to support the recycling program; and WHEREAS, the City of Arden Hills wishes to continue this funding mechanism. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota: That the funding rate for residential recycling for the year 2008 is hereby established at $36.00 per residential parcel. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 10th DAY OF DECEMBER, 2007. ATTEST: STAN HARPSTEAD, MAYOR MICHELLE A. WOLFE, CITY ADMINISTRATOR Certification: STATE OF MINNESOTA) COUNTY OF RAMSEY) CITY OF ARDEN fiLLS) I hereby certify that Resolution No. 07-72 is a true and correct copy presented to and adopted by the City Council of the City of Arden Hills at a meeting thereof held in the City of Arden Hills, Ramsey County, Minnesota, on the 10th day of December, 2007. Noah A. Simon Assistant City Administrator/ Deputy City Clerk