Item Description:
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Agmt PR00007270 with Shakopee Mdewakanton Sioux Community and Agmt PR00007271 with Waste Management of Minnesota, Inc. for organics processing services, for a term of up to seven years beginning at execution, est annual exp $1,085,000
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate Agreement PR00007270 with the Shakopee Mdewakanton Sioux Community for organics processing services, with a tipping fee of $48.40 per ton, and an annual increase of 3%, for a term up to seven years, with an estimated annual expenditure amount of $340,000; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreement PR00007271 with Waste Management of Minnesota, Inc. for organics processing services, with a tipping fee of $62.00 per ton, allowing payments to increase annually according to the Consumer Price Index, for a term up to seven years, with an estimated annual expenditure amount of $745,000; and
BE IT FURTHER RESOLVED, that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the Agreements on behalf of the county; and that the Controller be authorized to disburse funds as directed.
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Background:
Hennepin County’s Climate Action Plan, Reinventing the Solid Waste System Plan, and Solid Waste Management Plan all prioritize the diversion of organics from the trash. The county supports organics recycling in many ways, including the operation of the Brooklyn Park Transfer Station. As an incentive to recycle organics, Hennepin County accepts organics at a tipping fee of $35 per ton, compared to $77 per ton for trash.
The county’s transfer station serves as a hub for organics collection and makes the transportation of organics more efficient. Hennepin County contracts with composting sites in Shakopee and Empire Township to process organics into nutrient-rich compost. This helps ensure adequate processing capacity for growing commercial and residential organics programs.
Organics recycling is our biggest opportunity to make progress toward zero waste because almost 30% of our trash is organic material. Keeping organics out of the trash helps reduce methane emissions from landfills. In the first 20 years after its release, methane is 84 times more potent of a greenhouse gas than carbon dioxide. Due to rapid emissions reductions associated with reducing methane, climate experts have identified reducing methane from landfills as a priority in combating climate change. In addition, the use of compost as a soil amendment increases carbon sequestration.
In 2024 the county managed almost 18,000 tons of organics through its contracts with the Shakopee Mdewakanton Sioux Community and Waste Management.
Current Request: This request seeks authorization to negotiate and execute the following agreements:
• PR00007270 with the Shakopee Mdewakanton Sioux Community for organics processing services, with a tipping fee of $48.40 per ton, with an annual increase of 3%, for a term up to seven years, with an estimated annual expenditure amount of $340,000
• PR00007271 with Waste Management of Minnesota, Inc. for organics processing services, with a tipping fee of $62.00 per ton, allowing payments to increase annually according to the Consumer Price Index, for a term up to seven years, with an estimated annual expenditure amount of $745,000
The difference in tipping fees primarily reflects the capacity of each composting facility to manage contamination - or materials that don't belong in the organics recycling. Common items that cause contamination include plastic-coated coffee and soda cups, uncertified to-go containers, fast food and plastic wrappers, cleaning wipes, diapers, glass, and trash or recycling that were put in the wrong bin. The Shakopee Mdewakanton Sioux Community’s facility accepts smaller direct delivery loads that meet stringent contamination standards. The Waste Management facility can handle higher levels of contamination and accepts larger loads of organics that are consolidated at the county’s transfer station.
The county has improved the quality of organics through education and enforcement, but contamination remains a significant challenge that requires flexible processing options. The county will continue its partnership with both vendors to identify cost-effective solutions, cleaner organics, and address operational realities.
Impact/Outcomes: These agreements will help ensure adequate processing capacity for growing commercial and residential organics programs. Organics recycling is a crucial strategy for making progress toward zero waste, reducing greenhouse gas emissions, and reducing disparities associated with waste disposal.
This action supports the county’s disparity reduction efforts by reducing disparities associated with the solid waste system and the impacts of climate change.
recommendation
Recommendation from County Administrator: Recommend Approval