Item Description:
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Neg waste delivery agmts with licensed waste haulers, 01/01/24-12/31/25, est annual recv $33,000,000; declare market price for waste management services
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Resolution:
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BE IT RESOLVED, that the County Administrator be authorized to negotiate waste delivery agreements with licensed mixed municipal solid waste haulers for acceptable waste they collect in Hennepin County during the period January 1, 2024 through December 31, 2025 at a contracted rate of $74 per ton for the first year of the agreement and $77 per ton for the second year of the agreement; and that following review and approval by the County's Attorney's Office, the County Administrator be authorized to sign the agreements on behalf of Hennepin County; and that the Controller be authorized to receive funds as directed; and
BE IT FURTHER RESOLVED, that the County Board declare that the Hennepin County market price for waste management services as defined in Minnesota Statutes 2022, section 297H.02, subdivision 1, is $74 per ton.
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Background:
Hennepin County has entered into waste delivery agreements with approximately 80 haulers that collect municipal solid waste from homes and businesses within the county for delivery to the Hennepin Energy Recovery Center (HERC) or the Brooklyn Park Transfer Station (BPTS) (Resolution 210421). The current tip fee for disposal of the municipal solid waste at these facilities is $69 per ton. All current waste delivery agreements will terminate on December 31, 2023. The waste delivery agreements minimize landfill disposal of municipal waste, which is required by state law.
The waste delivery agreements ensure the county achieves the goal to recover energy and recyclable materials from discarded waste in accordance with the resource recovery objectives established by the Minnesota Pollution Control Agency (MPCA) in its 2016-2036 Metropolitan Solid Waste Management Policy Plan. Waste delivered to HERC is burned to recover energy to produce electricity for sale to the local electric utility and recover ferrous metals for recycling. Managing waste at HERC is one part of the county’s integrated solid waste management plan, which outlines the county’s current strategy to pursue a zero-waste future. Minnesota Statutes 2022, section 297H.02 requires that counties with waste management facilities such as HERC identify the market price for waste management services by resolution and report this price to the MPCA.
Current Request: This request seeks authorization for the County Administrator to negotiate waste delivery agreements with licensed mixed municipal solid waste haulers for acceptable waste they collect in Hennepin County, at a contracted rate of $74 per ton for the first year of the agreement and $77 per ton for the second year of the agreement, during the period January 1, 2024 through December 31, 2025.
This request also asks the county board to declare the market price for waste management services in Hennepin County to be $74 per ton.
Impact/Outcomes: The waste delivery agreements ensure an incoming waste flow adequate for HERC to process waste at its permitted capacity of 365,000 tons annually. Total annual revenues received from these agreements are expected to be approximately $33 million. The county’s goal is to process waste at full capacity and minimize landfill disposal. This action also supports the county’s climate action goals by reducing landfilling and the amount of methane being generated at landfills.
These agreements will establish a maximum delivery amount for each hauler to ensure the amount of municipal solid waste delivered to the county will not exceed the amount that can be managed efficiently at HERC and BPTS. Any waste delivered by a hauler, above its maximum delivery amount, will be charged $105 per ton. This higher tip fee will ensure that all costs to transfer and dispose of municipal waste received at county facilities will be covered. The agreements also have a one-ton minimum charge per delivery. The goal of the one-ton minimum charge is to reduce the number of small loads, which typically require hand unloading and can create congestion and longer wait times on the tipping floors at HERC and BPTS. The one-ton minimum will also be an incentive for haulers to consolidate loads and reduce the number of trips to the county’s facilities, which supports the county’s Climate Action Plan by reducing vehicle miles traveled.
Approving the declaration for the market price for waste management services in Hennepin County assures compliance with Minnesota Statutes 2022, section 297H.02.
recommendation
Recommendation from County Administrator: Recommend Approval