Item Description:
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Amd 2 to Agmt PR00004488 with City of Minneapolis for organics processing, extending term to 03/31/29, establishing rate of $26/ton, and adjusting rate annually per CPI
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Resolution:
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BE IT RESOLVED, that Amendment 2 to Agreement PR00004488 with the City of Minneapolis for organics processing, extending the term through March 31, 2029, establishing a rate of $26.00 per ton, and allowing payments to increase annually according to the Consumer Price Index, with an estimated annual expenditure amount of $180,000, be approved; that the chair of the board be authorized to sign the agreement on behalf of the county; and that the controller be authorized to disburse funds as directed.
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Background:
Organics recycling is the biggest opportunity to make progress toward zero waste because almost one-third of our trash is organic material. Hennepin County’s plan to reinvent the solid waste system includes priority actions that address the need to recover more organics from the trash.
As an incentive to recycle organics, Hennepin County accepts organics from city programs at the Brooklyn Park Transfer Station and charges a tipping fee of $35 per ton. In 2023, city recycling programs collected nearly 12,000 tons of organics countywide from residents. Due to space constraints, the county does not have the capacity to accept organics from the City of Minneapolis, which collects over 5,000 tons of organics per year.
Instead, the City of Minneapolis delivers to a different facility with a rate that is $26 per ton higher than the county’s tipping fee for organics. Agreement PR00004488 provides a mechanism for the county to pay the City of Minneapolis a per-ton payment for organics to other facilities to ensure Minneapolis pays a competitive rate that is consistent with what other cities pay. Minneapolis plays an important role in the solid waste management system and helps the county make progress toward zero waste and climate goals. The city has been a leader in adopting the best practices needed to increase access to organics recycling, grow participation rates, and maximize the recovery of organics.
Diverting organic material from the trash is also one of the foundational strategies in the county’s Climate Action Plan. 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 Climate Action Plan calls for the use of compost as a soil amendment to increase carbon sequestration.
Current Request: This request seeks approval of Amendment 2 to Agreement PR00004488 with the City of Minneapolis for organics processing, extending the term to March 31, 2029, establishing a rate of $26.00 per ton, and allowing payments to increase annually according to the Consumer Price Index, with an estimated annual expenditure amount of $180,000.
Impact/Outcomes: Organics recycling is a crucial strategy for making progress toward the county’s zero waste goals, reducing greenhouse gas emissions and their impact on climate change.
This action supports the county’s disparity reduction efforts by reducing disparities associated with the solid waste system and the impacts of climate change.
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Recommendation from County Administrator: Recommend Approval