6.6. SR 12-15-1997 - Laserfiche WebLink

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The County Board is also considering imposition of an intra-state designation ordinance for the Eastern Sherburne County's refuse. The ordinance would mandate that all refuse in this end of the County, if disposed of in Minnesota, must go the Elk River RDF plant, unless the County approves another destination. The ordinance would not preclude waste from being transported out-of-state, which has been determined to be in conflict with constitutional Commerce Clause law. It now appears the County staff will be recommending to the Board that it table the proposed intra-state designation ordinance pending the outcome of its efforts to execute longer-term waste delivery contracts. Because the subsidy will be eliminated, and the tipping fees will increase, the County needs to assure that refuse from Eastern Sherburne County will not be hauled to cheaper landfills. Toward this end, the County has also bee negotiating a five-year contract with USA Waste, the new owner of the Elk River Landfill. In the draft contract, USA Waste, which also owns hauling operations, would deliver 30 tons a day to the RDF plant to partially meet the County's obligation. USA would pay the County's escalating tip fees for the waste it delivers to the RDF plant. Combined with the City of Elk River's and the Elk River Area School District's refuse, the proposed deal with USA Waste would bring Sherburne County close to its 50 ton per day obligation to the RDF plant. CITY'S CONCERN 1. Because disposal costs at the Elk River Landfill and other landfills will be significantly lower that the fees at the RDF plant, haulers in Eastern Sherbume County will be able to negotiate a disposal rate with USA Waste or other landfills that could be significantly lower than those established by the County for the RDF plant. City staff have expressed our concern to the County Board and County staff that the County's new approach will likely result in higher garbage rates for residents of Elk River than for other residents in Eastern Sherburne County, whose haulers will likely have negotiated lower rates. City staff has indicated to the County that the City would like to continue delivering its waste to the RDF plant, but that the City may not do so if it results in a significant price difference for the City residents. The County has indicated a willingness to address this issue with the City. Thus, staff is seeking direction from the Council to continue discussions with the County to develop a method to assure the City's waste to the RDF plant, but at rates that are consistent with those paid by other residents of Eastern Sherburne County. 2. Attached to this memo is a December 10, 1997 article from the Elk River Star News, which talks about the County's proposed intra-state ordinance. Staff is concerned that if the County enacts the ordinance, this could lead to a situation in which small haulers can no longer compete. In addition, the intra-state ordinance, in combination with the proposed deal with USA Waste, may ultimately end up costing the residents of Eastern Sherburne more than the current $20 refuse surcharge. If the ordinance is not enacted, haulers will have more freedom to choose their disposal options and a more competitive market will exist. Thus, staff seeks direction from the Council to oppose the enactment of the ordinance at this time.