Item Description:
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Neg waste delivery agmts with licensed waste haulers, period 01/01/26-12/31/27; identify 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 collected in Hennepin County during the period January 1, 2026 through December 31, 2027 at a contract rate of $85 per ton for the first year of the agreement and $88 per ton for the second year of the agreement; and that following review and approval by the County's Attorney's Office, the Chair of the Board 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 waste delivery agreement with cities of the first class for acceptable waste collected in Hennepin County during the period January 1, 2026 through December 31, 2027 shall be brought before the County Board for final approval prior to signature; and
BE IT FURTHER RESOLVED, that, as required by Minnesota Statute section 297H.02, subdivision 1, the County Board identifies the market price for waste management services as defined in Minnesota Statutes section 297H.01, subdivision 4, in Hennepin County, as the contract rate of $85 per ton.
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Background:
Hennepin County has entered into waste delivery agreements with approximately 75 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 23-0431). The current contract rate for disposal of the municipal solid waste at these facilities is $77 per ton. All current waste delivery agreements will terminate on December 31, 2025. These agreements minimize landfill disposal of municipal waste, which is required by state law.
The waste delivery agreements ensure the county achieves the goal to reduce the reliance on landfilling, and 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 2022-2042 Metropolitan Solid Waste Management Policy Plan and the county’s 2024 Solid Waste Management Plan. Minnesota Statutes section 297H.02 requires that counties with waste management facilities such as HERC identify the market price (i.e., the “contract rate” as used here) for waste management services by resolution and report this price to the MPCA.
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 at HERC and BPTS. Any waste delivered by a hauler above its maximum delivery amount, or by a hauler without a contract, will be charged the non-contract rate of $150 per ton.
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 $85 per ton for the first year of the agreement and $88 per ton for the second year of the agreement, during the period January 1, 2026 through December 31, 2027.
This request also asks the county board to identify the contract rate of $85 per ton as the statutory market price for waste management services in Hennepin County, as required by state statute.
Impact/Outcomes:
The waste delivery agreements facilitate licensed waste haulers to deliver trash generated in the county to HERC to be processed to recover energy and metals and reduce landfilling in accordance with state law. Annual revenues from the waste delivery agreements are expected to be approximately $36.5 million. This action supports the county’s climate action goals by diverting waste from landfills, thereby reducing methane emissions and decreasing reliance on fossil fuels for energy and heating.
Identifying by resolution the market price for waste management services in Hennepin County assures compliance with Minnesota Statutes section 297H.02.
recommendation
Recommendation from County Administrator: Recommend Approval