HomeMy WebLinkAbout4K, Motion to Approve Resolution 08-060
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Request for Council Action
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Prepared By: James Lehnhoff,
Community Development Director
Council Meeting Date: December 8, 2008
Business Subsidy Policy
Budgeted Amount:
$
Funding Source:
Actual Amount:
$
Recommendation:
Motion to Approve Resolution 2008-060 Setting the 2009 City of Arden Hills Recycling
Fee for the Residential Curbside Recycling Program.
Supporting Documents:
1. December 8, 2008, Memo to the City Council
2. Resolution 2008-060
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MEMORANDUM
DATE: December 8, 2008
TO: Mayor & City Council."
FROM: James Lehnhoff, L ;/
Community Dev[lpment Director
SUBJECT: 2009 Residential Curbside Recycling Fee
Resolution 08-060
Action Reauest
Approve Resolution 08-060 Setting the 2009 City of Arden Hills Recycling Fee for the
Residential Curbside Recycling Program at $32.00 per Participating Household.
Back!!round
This City's recycling program provides curbside recycling for an estimated 2,444 single family
homes and townhomes in Arden Hills. Arden Manor, Hunters Park Condos, Cottage Villas, and
Parkshore Apartments contract separately for recycling services. The recycling program also
includes the two community cleanup days, which is available to all residents.
Starting in March 2008, the City contracted with Eureka Recycling to provide curbside recycling
services (the contract with Waste Management expired in February 2008). Eureka charged the
City $2.95 per household per month ($35.40 per year) for a total annual cost of $86,518. The
contract with Eureka stipulates the service fee will increase each year based on the Consumer
Price Index for the Upper Midwest as determined by the Federal Reserve Bank of Minneapolis,
which is estimated at four percent. Therefore, the 2009 recycling fee per eligible household will
be $3.07 per household per month ($36.84 per year) for a total annual cost of$90,037.
The contract with Eureka includes revenue sharing, which allows the City to collect a portion of
Eureka's revenue. The 2008 estimated revenue sharing was $0.70 per household per month.
However, between March and October the City collected almost $16,500 in revenue share or
about $0.80 per month, which reduced the cost per household from $2.95 to about $2.15 per
month. Based on the changing economic conditions, Eureka does not anticipate an increase in
revenue sharing and there may be a decrease. Therefore, the 2009 budget includes an estimated
revenue share of$0.70 per household per month for a total potential rebate of$20,530. Revenue
sharing is highly dependent upon market conditions and is likely to fluctuate.
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Households
In previous years, the recycling budget was based on serving 2,560 households. In reality, the
City is providing recycling services to 2,444 households. This has been corrected for the 2009
budget; however, it does impact the recycling fee since the administrative fees are spread over
fewer households.
Recvclinl! Budl!et
The total estimated cost of the 2009 recycling program is $118,677, which includes the curbside
recycling program, two community cleanup events, and administrative expenses. The program is
self- funded through revenue sharing, the SCORE grant, and a recycling fee that is included on
the property tax statement for households receiving curbside services. Assuming a revenue share
of $0.70 per household per month ($8.40 per year), a recycling fee of $2.67 per month ($32.00
per year) will be needed. This will generate about $78,208 in recycling fees.
2009 Recycling Revenue
SCORE Grant $19,866.00
Estimated Revenue Sharing $20,530.00
Estimated Interest $800.00
Recycling Fee $78,208.00
Total $119,404.00
Recvclinl! Fee
In 2007, the City had approved a fee of $29.00 per household. Due to a miscommunication with
Ramsey County, they used a $26.25 fee per household. This has resulted in a manageable
decrease in the recycling fund. The source of the miscommunication has since been addressed.
The fees since 2005 were as follows:
Year Yearly Fee Monthly Fee
2009 $ 32.00 $ 2.67
2008* $ 29,00 $ 2.42
2007 $ 26.25 $ 2.19
2006 $ 26.25 $ 2.19
2005 $ 26.25 $ 2.19
While there has been an increase in the cost of collection, revenue share has controlled much of
that increase. Much of the fee increase is due to required auditing and accounting services,
which had not been properly charged to the recycling fund before 2008. An increase in the fee
charged by Ramsey County for applying the fee to the property taxes has also increased the
overall recycling fee.
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Recommendation
Motion to Approve Resolution 08-060 Setting the 2009 City of Arden Hills Recycling Fee for
the Residential Curbside Recycling Program at $32.00 per Participating Household.
Attachment
Resolution 08-060: Setting the 2009 City of Arden Hills Recycling Fee for the Residential
Curbside Recycling Program.
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CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION NO. 2008-060
A RESOLUTION ESTABLISHING SERVICE FEE CHARGE FOR
2009 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 2009, and
WHEREAS, the City Council of Arden Hills has entered into a Joint Powers Agreement
(JP A) with Ramsey County to assess single family (attached and detached) 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
$32.00 per residential parcel.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS
THIS 8th DAY OF DECEMBER, 2008.
ATTEST:
STAN HARPSTEAD, MAYOR
Ronald J. Moorse, CITY ADMINISTRATOR