HomeMy WebLinkAbout07-23-2019 Worksession Packet City of Oak Park Heights Worksession
Date: Tuesday, July 23, 2019
Time: 5:00 PM
Location: Oak Park Heights City Hall
1. Call to Order
2. 2020 Budget
3. 90-Gallon Solid Waste Container
4. 2019 City Goals Update
5. Adjourn
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City of oak Park Heights
14168 Oak Park Blvd. N•Flay 2067.Oak Park Heights,MN 55082.Phone(651)439-4439• Fax(651)439-0574
7116119 MEMO
TO: Mayor and City Council Members
FROM: Eric Johnson, City Administrator
RE: 95-gallon Garbage Container-Costs
As we know the City property tax levy pays for 100%of eligible residential solid waste and recycling costs. This was shifted away from
a monthly household charge to the City's levy in 2009 as part of the City Hall funding scenario. This was generally desirable as many
of these costs are paid by the City's large commercial and industrial tax base and has been in place for close to 10-years
For good or bad,with such shift at that time the City did not outline any specific policy on size of containers being requested by residents
and generally relied on some self-policing to ensure people requested the"correct"size container,likely based on their history. However,
as the City begins to better understand that in time, the King Plant may be decommissioned and likely leaving the City far-less fiscal
flexibility;the Council might be required to shift some of these costs back to a direct billing to maintain current level of services.
One policy the Council could consider sooner than any planned Xcel closure is the removal of the dis-incentive to reduce
solid waste generation and the associated costs, by that,the City could require the following;
1. Require anyone with a 90-gallon container DISPOSAL FEE CALCULATIONS-CURRENT
to move to a 65-gallon container. Number of Units Disposal Fee Monthly Cost Annual Cost
Or... Large(95 gal) 429 $ 8,90 $ 3,818.10 $ 45,817.20
2. Require anyone who would like to keep the Medium(65 gal) 561 $ 5.93 $ 3,32633 $ 39,920.76
95-gallon container to pay the cost Small(35 gal) 104 $ 3.73 $ 387.92 $ 4,655.04
difference between the 95- and the 65-
gallon container.At this time,it would be a Totals 1094 NA $ 7,532.75 $ 90,393.00
$2.97 per month upcharge and the City
would bill that quarterly through its utility
billing.
Based on the current rates and units being DISPOSAL FEE CALCULATIONS-WITH 95 Gallon Change
collected (1,094 monthly) the City could realize an Number of Units Disposal Fee Monthly Cost Annual Cost
annualized savings of $15,259.56 if such policies Large(95 gal) 0 $ 8.90 $ - $ -
were implemented. The two charts above compare Medium(65 gal) 990 $ 5.93 $ 5,870.70 $ 70,448.40
the DIFFERENCES-with the lower chart deleting small(35 gal) 104 $ 3.73 $ 387.92 $ 4,655.04
the 90-gallon container and switches those Tatar 1094 NA $ 6,258.62 $ 75,103.44
persons to the 65-gallon container. Further, the
policy revision could be viewed as eliminating a
disincentive to reducing solid waste as at this time
no household has an associated cost relative to the DIFFERENCE 0 NA $ 1,274.13 $ 15,289.5b
amount of waste they generate.
The implementation of such a policy might be met with some roll-out lead time issues to exchange the bins and/or to begin to track
billings per household. These likely would be solved in a quarter or two. However, some households may object to the reduction in
capacity- presuming that they may truly need it. It however is the same argument people with the 35-gallon container may currently
suggest on the 65-gallon size version.
n) Should n City resident or customer exceed the capacity of their
provided S-S container, the resident may additionally utilize
A few other points to NOTE: reasonable containers for recyclable collection. These additional
containers containing approved recyclable materials shall also be
1. Extra bags of garbage cost$1.75 picked up,processed and managed at no additional cwt to the City
2. We have reports that people's recyclable bins are full, or the houschold,residnnt,ebc.
residents may use a separate container(See Sec A.3.n) - --
3. Enclosed is the breakdown of the full monthly costs charged by Tennis;the Disposal fee discussed above is only a
portion of the total costs..