B. Discussion of Organized Recycling
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
VNfW.ci .chan hassen .mn.us
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MEMORANDUM
TO:
Todd Gerhardt, City Manager
FROM:
Jill Sinclair, Environmental Resources Specialist
DATE:
February 25, 2008 ~.
Organized recycling
SUBJ:
Introduction
As part of key financial strategies, the City is investigating the opportunity to
generate revenues via recycling. There are various options for dealing with
garbage and recycling at a municipal level. Changing our current system for
recycling may be beneficial to the City by providing long term benefits to both the
City and residents. The most intriguing option is organized collection of
recyclables.
Back2round
There are two types of solid waste and recycling services available to
municipalities: open or organized. In open collection, which Chanhassen
currently has, each resident contracts with a specific hauler for garbage and
recycling services. In organized collection, cities choose a single company to
provide services.
In 1993, the City approved a study of organized collection for municipal waste.
However, in May 1996, the City Council voted to maintain the existing licensing
system for waste handling in Chanhassen.
In 2005, the City of Eden Prairie compiled a detailed study of solid waste services
in 108 metro cities. According to the report, the basic models used are:
Open Refuse Hauling & Open Recycling 55 cities 51%
Open Refuse Hauling & Organized Recycling 22 cities 20%
Organized Refuse Hauling & Organized Recycling 29 cities 27%
City provided Refuse Hauling & City provided Recycling 1 city 1%
City provided Refuse Hauling & Organized Recycling 1 city 1%
Discussion
There are advantages and disadvantages to each recycling collection system.
Under the current open system used by the City, the advantages are that residents
have the ability to use the hauler of their choice; and it uses very little city staff
time. The disadvantages are more trucks on the road increasing safety concerns,
The City 01 Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
long term road costs and emissions volumes, uncertain end markets and
processing of materials, and lack of pricing control for residents.
In an organized recycling collection system, the advantages would be a revenue
share for the City, reduced truck traffic on City streets, increased cost savings for
residents, reduced wear and tear on public streets, control of end market and
proper processing of materials, accumulation of carbon credits, and increased
reporting requirements and data collection. Disadvantages include increased staff
time to manage a program and government involvement in free market activity.
There are currently four haulers in the City licensed for residential waste and
recycling collection. They are Allied Waste/BFI, Waste Management, Randy's
Sanitation and Tidy Disposal. Each hauler contracts directly with residential
customers. Depending on which hauler is collecting on which day of the week, a
garbage truck and a recycling truck from each company would make stops in any
Chanhassen neighborhood. Additionally, a third truck from each hauler to collect
yard waste would be added during the growing season. The road costs incurred
by the City and residents as a result of this truck traffic weigh significantly in long
term capital outlay.
Various calculations have been made to determine the trip equivalency of garbage
trucks to cars. At the high end, a loaded garbage truck equals 1,500 car trips on
any given road. This means that one garbage truck on a city street is equal to
1,500 passenger cars driving on that street in terms of pavement damage and
loading. The estimate used by the Chanhassen engineering department is 828
trips, from data generated by Hot Mix Asphalt Technology journal. Several
suburban municipalities have estimated that limiting truck traffic on public streets
could extend their useful life by 5-10 years.
Additionally, solid waste trucks are not fuel efficient and contribute to poor air
quality and green house gas emissions. Garbage trucks have proved to be one of
the most polluting fleets in the country. Their presence on residential streets also
distracts from the quality of life and aesthetics in a neighborhood.
Organized recycling would provide direct cost savings to residents. This table
shows the average cost of recycling for residents under the current open system
and a proposed organized system.
Hauler Cost/month Annual cost
Licensed haulers $5.00 - $7.50 $60 - $90
Organized - average $2 - $2.50 $24 - $30
The potential for revenue is dependent on proposal bids and market fluctuation.
A common formula for revenue share is a 50/50 split after processing. In this
case, the city and hauler would split the recycling revenues after the cost of
processing is deducted. As an example, if the revenue from one ton of paper is
$100 and the cost of processing it is $50, the city and hauler would then split $50.
In past years, the market has steadily improved for recyclables. Currently, the
average revenue per ton ofrecyclables is $106-130 and the average cost of
processing is $50.
If the Council directs staff to move ahead with the research and development of
organized recycling, there is a state mandated procedure that must be followed.
The beginning of the process would be as follows as defined in M.S. 115A.94:
. The city must conduct a public hearing on the issue.
. A resolution of intent by the City Council can then be considered
to start the timeframe for establishing organized recycling
collection. This process takes a minimum of 180 days and
mandates that all city haulers be involved in the process.
Within the first half of the 180 days, an organized recycling plan would be
developed and distributed to existing haulers for comments. In the last 90 days,
the City and haulers would try to come to an agreement on the implementation of
the collection system. If an agreement is not made within the 90 days, the City
may propose to implement an alternate method of collection. If an agreement is
made within the 90 days, the City may implement the plan at that time.
Recommendation
Staff is requesting direction from the City Council regarding proceeding on
organized recycling.
G:/plan/js/recycIinglCC recycling memo