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2024.06.04 Work Session Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: May 31, 2024 City Council Work Session Agenda Tuesday, June 4, 2024 6:30 p.m. Council Chambers/Zoom Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held on Tuesday, June 4, 2024, at ______ p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. If the agenda items are not completed in time for the City Council meeting at 7 p.m., the work session will be continued and resumed immediately following the City Council meeting. The public may attend the meeting via Zoom by connecting to it through one of the methods identified on the City Council Meeting Schedule for Tuesday, June 4, 2024. I. Attendance Council members Staff ____ Kamish ____ Bell ____ Kiser ____ Tierney ____ Onesirosan ____ Therres ____ Adams ____ Elholm ____ Budziszewski ____ Hubbard ____ Cummings ____ Larson ____ Eidbo ____ Struve ____ Sutter ____ Serres II. Agenda The purpose of the work session is to discuss the following agenda items: 1. West Metro Fire-Rescue District 2025 budget follow-up. 2. Hennepin Recycling Group - Organized Organics Collection Proposal. 3. Constituent issues.* 4. New business.* 5. Announcements.* III. Adjournment The work session adjourned at ______ p.m. * Denotes no documentation included in the packet. Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. 1 To: WMFRD Board of Directors From: Sarah Larson, Fire Chief Date: May 8, 2024 Subject: Preliminary 2025 General Operating Budget Line Item Explanatory Information for Changes from 2024 2025-2029 Capital Plan 2025 Preliminary Budgets and Contributions General Operating Budget - $2,855,674 Capital Fund Contribution - $325,000 Special Revenue Pension Fund Contribution - $200,000 Special Revenue Insurance Fund Contribution - $10,000 Special Revenue Compensated Absences Fund Contribution - $10,000 Tower Lease - $103,600 Engine Lease - $212,325 ____________________________________________________________________ Total $3,716,599 The cities’ preliminary 2025 total contribution is $3,716,599 which is $1,800,351.01 for Crystal and $1,916,247.99 for New Hope. This is an increase of $165,734.42 or 10.14% for Crystal and an increase of $186,364.58 or 10.77% for New Hope. This is an increase of $352,099 over the 2024 contributions or 10.47%. The general operating budget increase is $214,774 or 8.13%. The driving force of this increase is salaries, incentive pay for POC firefighters, PERA, health insurance, workers comp insurance, financial services and communications. There is a $75,000 increase to the capital plan contribution. These contributions include a $103,600 lease payment for the tower. These contributions include a $212,325 lease payment for the new engines. This is a $62,325 increase over 2024. 2025 Preliminary Budget Contribution Increase from 2024 ($3,364,500) to 2025 ($3,716,599) General Operating $214,774 6.38% Capital Plan $75,000 2.23% Engine Lease $62,325 1.85% Total $352,099 10.47% Memorandum 2 2026 Projected Budget Contribution Increase from 2025 ($3,716,599) to 2026 ($4,014,566) General Operating $182,967 4.92% Capital Plan $75,000 2.02% Engine Lease $40,000 1.08% Total $297,967 8.02% An estimate of the 2026 increase to the cities’ total budget contributions is $297,967 or 8.02%. There is a $75,000 increase to the capital plan contribution. The 2026 cities’ contribution to the engine lease is $252,325 an increase to the engine lease of $40,000 or 1.08% over the potential 2025 cities’ contributions. The cities’ contribution to the engine lease is again $252,325 in 2027. The engine lease contributions stabilize in 2028 at $287,325 annually. 2027 Projected Budget Contribution Increase from 2026 ($4,014,566) to 2027 ($4,476,325) is projected at $461,759 or 11.5% For Historical Reference: 2024 Budgets and Contributions General Operating Budget - $2,640,900 Capital Fund Contribution - $250,000 Special Revenue Pension Fund Contribution - $200,000 Special Revenue Insurance Fund Contribution - $10,000 Special Revenue Compensated Absences Fund Contribution - $10,000 Tower Lease - $103,600 Engine Lease - $150,000 ____________________________________________________________________ Total $3,364,500 The cities’ preliminary 2024 total contribution was $3,364,500 which was $1,634,617 for Crystal and $1,729,883 for New Hope. This was an increase of $155,244 or 10.5% for Crystal and an increase of $178,066 or 11.5% for New Hope. This was an increase of $333,310 over the 2023 contributions or 11%. There was a $50,000 offset (carryover from 2022 Public Assistance Grant) to the 2023 budget to lower the cities’ contributions so the actual increase to the budget was $283,310 or 9.2%. The 2024 budget was 9.2% more than 2023. The 2024 contribution was 11% more than 2023. The difference is the $50,000 offset expiring. The general operating budget increase was $183,310 or 7.5%. There was a $20,000 increase to the special revenue pension fund contribution. 3 These contributions included a $103,600 lease payment for the tower. These contributions included a $150,000 lease payment for the new engines. This was an $80,000 increase over 2023. Line Item Explanatory Information for Reductions and Increases of the preliminary 2025 General Operating Budget Personnel $1,126,000 61500 - Regular Salaries $113,000 increase. This includes consideration of a 3% COLA, comp payout, OT for non-exempt employees, and lieutenant gap in pay for SAFER employees due to updated comp plan. $650,000 62000 - Part - Time Salaries $70,000 increase. This includes all POC positions and consideration of a 3% COLA. $200,582 62200 - PERA $20,582 increase based on full-time salaries. These full-time employees do not earn relief association pension. $66,568 62800 - Social Security & Medicare $6,568 increase based on salaries. $12,000 65500 – Uniforms $2,000 increase based on having 11 full-time employees and hiring a large group of POC firefighters in 2024. Insurance $5,500 63500 - Health Savings Account (HSA) No change. This line is part of the health insurance benefit provided by the District. $123,840 63800 - Health Insurance $11,160 decrease based on the SAFER grant covering 100% of the health insurance costs for the 3 lieutenants and a projected minimal increase to the premium. $6,502 63900 - Long Term Disability $1,402 increase based on projected premium increase. $1,182 64000 - Life Insurance $282 increase based on projected premium increase. $141,000 64500 - Workers Comp Insurance $29,000 decrease based on historical data and reimbursement From the SAFER grant. Supplies $2,300 70500 - Office Supplies No change. $2,200 72500 - Cleaning No change. $9,000 74000 - Operating No change. $3,000 75500 - Tools & Equipment No change. $28,000 76000 - Motor Fuels $3,000 increase based on historical data and continued rising 4 costs. $15,000 77000 - Turn-Out Gear $3,000 increase based on historical data and continued rising costs. $1,000 79000 - Fire Prevention No change. Service $0 80200 - Consultant $500 decrease based on removing this line item. $6,000 80600 - Legal Fees No change. $40,000 80800 - Medical Exams No change. Communication and Delivery $0 81400 - Postage & Delivery $100 decrease based on removing this line item. $160,000 81800 - Communications $20,000 increase based on expected increases to expenditures For LOGIS, Hennepin County Radio and analytic software. Utilities $21,000 83200 - Electric No change based on historical data. $8,000 83400 - Water/Sewer $1,000 increase based on increased use from staffing an additional station. $30,000 83600 – Natural Gas $5,000 increase based on historical data and increased use from staffing an additional station. Contract Maintenance $16,000 84000 - Building Maintenance $1000 increase based on projected increase to the cost of the & Cleaning service. $10,000 84200 - Building Repairs No change. $24,000 84400 - Equipment Repairs No change. $31,000 84600 - Vehicle Repairs No change. Rent $5,000 85400 - Office Equipment Rent $2,000 increase based on adding another printer lease for Station 1. 5 Dues, Subscriptions, & Training $3,000 86200 - Dues & Subscriptions No change. $1,000 86400 - Awards No change based on the use of special donation funds. $30,000 86800 - Training No change based on historical data and reimbursements from the state. $0 86900 - Licenses & Permits No change due to a reoccurring cost every three years for firefighter licenses. Miscellaneous $0 87400 – Printing $300 decrease based on removing this line item. $77,000 87700 - Financial Services $7,000 increase based on increased costs due to updated contract. $2,855,674 Total General Operating Expenditures BUDGET HISTORY 2005 – Aerial put into service w/ replacement between 2025 and 2030 1,500,000 2007 – SCBA put into service cost partially offset by FEMA Grant w/ replacement 2020 500,000 2008 – Turn Out Gear put into service beginning 2015 replace 10-15 sets per year 35,000 2012 – Placed 4 engines into service w/ replacement between 2025 and 2032 3,000,000 2012 – Removed Heavy Rescues from Major Apparatus Plan (1,400,000) 2012 - Squad 1 put into service 500,000 2013 - Capital Funding Plan w/ Forecast to 2025 Developed 240,000 2013 - Added 1 Light Rescue into Capital Plan w/ replacement between 2023 -2025 100,000 2014 – Added 2 Light Rescues into Capital Plan w/ replacement between 2023 -2025 200,000 2014 – Closed Major Apparatus Fund and moved fund balance to capital plan (100,000) 2014 – Created Special Revenue Pension Fund 250,000 2017 – Sale of 2004 Aerial (337,500) 2017 – Lease Tower 1,049,620 6 2019 - Board Approved Fund Policy Statements 2020 – Created Special Revenue Insurance Fund 40,000 2020 - Created Special Revenue Compensated Absences Fund 10,000 2020 – Purchase SCBA 450,000 2021 – Engine Lease 2,619,444 2022-2023 – Sale of (4) 2011 Engines (484,740) ANNUAL CAPITAL EXPENDITURES/COMMITMENTS The WMFRD has the following reoccurring annual capital expenditures or savings for future expenditures through 2029: SCBA 50,000 - Saving towards future expenditure Rescue Trucks (3) 30,000 - Saving towards future expenditure Radios 20,000 - Saving towards future expenditure Thermal Imagers 5,000 - Saving towards future expenditure Hydraulic Tools 10,000 - Saving towards future expenditure Power Tools 10,000 Nozzles/Hose 20,000 - Saving towards future expenditure Public Education Props 5,000 - Saving towards future expenditure AED 2,500 Turn out Gear 50,000 LOGIS/Admin/IT 20,000 Overhead Door Maintenance 5,000 Utility/Staff Vehicle 65,000 Total 292,500 COMMITTED CAPITAL FUNDS END OF 2024 Bathroom 72,000 Thermal Cameras 5,000 Hydraulic Tools 10,000 SCBA 50,000 Telephones 10,000 Radios 100,000 Hose 10,000 Nozzles 10,000 Public Education Props 10,000 Training Room Furniture 50,000 Rescues 270,000 Major Apparatus 609,740 Total Committed Funds 1,206,740 2024 – Cities’ Contributions 250,000 Beginning Fund 1,956,424 Committed -1,206,740 Expenditures -571,100 Ending Non-Committed Fund Balance 178,584 Fund Balance 1,385,324 7 2025 -2029 CAPITAL PLAN 2025 – Cities’ Contributions 325,000 Beginning Fund 2,026,249 Committed -1,086,740 Expenditures -903,425 Ending Non-Committed Fund Balance 36,084 Fund Balance 1,122,824 2026 – Cities’ Contributions 400,000 Beginning Fund 1,903,749 Committed -869,744 Expenditures -907,921 Ending Non-Committed Fund Balance 126,084 Fund Balance 995,828 2027 – Cities’ Contributions 300,000 Beginning Fund 1,598,153 Committed -1,019,744 Expenditures -439,825 Ending Non-Committed Fund Balance 138,584 Fund Balance 1,158,328 2028 – Cities’ Contribution 300,000 Beginning Fund 1,695,653 Committed -1,119,744 Expenditures -497,325 Ending Non-Committed Fund Balance 78,584 Fund Balance 1,198,328 2029 – Cities’ Contributions 300,000 Beginning Fund 1,785,653 Committed -1,279,744 Expenditures -497,325 Ending Non-Committed Fund Balance 68,584 Fund Balance 1,348,328 Cities’ Contribution to Capital Plan 2025 325,000 2026 400,000 2027 300,000 2028 300,000 2029 300,000 8 STAFF/UTILITY VEHICLES Funding for the replacement of the following staff, utility, grass and light rescue vehicles is included as part of the capital plan. STAFF VEHICLES YEAR MAKE/MODEL USE REPLACEMENT YEAR REPLACEMENT COST C-1 2019 Toyota Highlander Command 2031 65,000 C-2 2019 Ford F-150 Command 2030 65,000 C-3 2024 GMC Canyon Command 2033 65,000 C-4 2024 Ford F-150 Inspection 2034 65,000 C-5 2015 Chevy Tahoe Command 2027 65,000 C-6 2017 Chevy Tahoe Command 2029 65,000 C-7 2016 Chevy Tahoe Command 2028 65,000 C-8 2024 Chevy Suburban Training 2035 75,000 U-11 2020 Chevy Silverado Utility 2032 65,000 U-31 2013 Ford F-350 Utility 2027 65,000 U-21 2011 Ford F-350 Diesel Utility 2026 55,000 U-32 GRASS 2009 Ford F-350 Diesel Grass 2025 65,000 R-11 2013 Ford F-350 Light Rescue 2025 120,000 R-21 2014 Ford F-350 Light Rescue 2025 120,000 R-31 2014 Ford F-350 Light Rescue 2025 120,000 MAJOR APPARATUS In 2014 it was reaffirmed by both cities that each city would fund their respective portions of the costs of replacement of major equipment rather than have the District save for these purchases. The following equipment is considered major apparatus: MAJOR APPARATUS YEAR MAKE/MODEL USE REPLACEMENT YEAR REPLACEMENT COST Engine 1 (Lease) 2023 Pierce Enforcer Pumper 2032 1,500,000 Engine 2 (Lease) 2023 Pierce Enforcer Pumper 2032 1,500,000 Engine 3 (Lease) 2023 Pierce Enforcer Pumper 2032 1,500,000 Engine 4 (Lease) 2023 Pierce Enforcer Pumper 2032 1,500,000 Squad 1 2012 E - ONE/Quest Heavy Rescue 2032 1,500,000 Tower 1 (Lease) 2017 Pierce/Arrow XT Platform 2026 2,500,000 ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 873 1,103 p = municipality's population (2020 census)23,330 21,986 v = municipality's taxable market value in millions 2,770 2,808 A = district's avg. calls over 5 years no mutual aid 1,976 P = district's population (2020 census)45,316 V = district's taxable market value in millions 5,578 Percentage a/A 44.1802%55.8198% Percentage p/P 51.4829%48.5171% Percentage v/V 49.6594%50.3406% 48.4408%51.5592%100.00% 100.0000% Required contributions from cities $1,800,351.01 $1,916,247.99 $3,716,599.00 Monthly contribution $150,029.25 $159,687.33 (1) Average calls based on calls for the years 2019 through 2023 without mutual aid. (2) 2024 Taxable market values from Hennepin County report dated 12/20/2023 Contributions from Cities Set to Equal: 2025 General Fund Operating Budget $2,855,674 2025 Capital Plan Budget $325,000 2025 Pension Special Revenue Fund $200,000 2025 Insurance Special Revenue Fund $10,000 2025 Compensated Absences Special Revenue Fund $10,000 2025 Aerial Lease $103,600 2025 Engine Lease $212,325 2025 Total Amount to be Contributed from Cities $3,716,599 WEST METRO-FIRE RESCUE DISTRICT Cost Sharing Formula Calculation in 2024 for use in the 2025 Budget 5/31/2024 2:33 AM West Metro Fire PROPOSED 2025 BUDGET West Metro Fire Proposed 2025 Budget 2025 Preliminary Budgets and Contributions 2025 2024 General Operating Budget $2,855,674 $2,640,900 Capital Fund Contribution $325,000 $250,000 Special Revenue Pension Fund Contribution $200,000 $200,000 Special Revenue Insurance Fund Contribution $10,000 $10,000 Special Revenue Compensated Absences Fund Contribution $10,000 $10,000 Tower Lease $103,600 $103,600 Engine Lease $212,325 $150,000 Total $3,716,599 $3,364,500 West Metro Fire Proposed 2025 Budget The cities’ preliminary 2025 total budget contribution is $3,716,599 which is $1,800,351.01 for Crystal and $1,916,247.99 for New Hope. This is an increase of $352,099 over the 2024 contributions or 10.47%. This is an increase of $165,734.42 or 10.14% for Crystal and an increase of $186,364.58 or 10.77% for New Hope. The general operating budget increase is $214,774 or 8.13%. The driving force of this increase is salaries, incentive pay for POC firefighters, PERA, health insurance, workers comp insurance, financial services and communications. There is a $75,000 increase to the capital plan contribution. These contributions include a $103,600 lease payment for the tower. These contributions include a $212,325 lease payment for the new engines. This is a $62,325 increase over 2024. West Metro Fire Proposed 2025 Budget 2025 Preliminary Budget Contribution Increase from 2024 ($3,364,500) to 2025 ($3,741,599) General Operating $214,774 6.38% Capital Plan $75,000 2.23% Engine Lease $62,325 1.85% Total $352,099 11.18% West Metro Fire Proposed 2025 Budget 2026 Projected Budget Contribution Increase from 2025 ($3,741,599) to 2026 ($4,064,566) General Operating $182,967 4.92% Capital Plan $75,000 2.02% Engine Lease $40,000 1.08% Total $297,967 8.02% West Metro Fire Proposed 2025 Budget 2027 Projected Budget Contribution Increase from 2026 ($4,014,566) to 2027 ($4,476,325) is projected at $461,759 or 11.5%. West Metro Fire Proposed 2025 Budget The engine lease contributions stabilize in 2028 at $287,326 annually. West Metro Fire Proposed 2025 Budget Changes from 2024 $1,126,000 61500 -Regular Salaries $113,000 increase. This includes consideration of a 3% COLA, comp payout for non-exempt employees, OT for non-exempt employees, and lieutenant gap in pay for SAFER employees. $650,000 62000 -Part -Time Salaries $70,000 increase. This includes all POC positions and consideration of a 3% COLA. $200,582 62200 -PERA $20,582 increase based on full-time salaries. These full-time employees do not earn relief association pension. $66,568 62800 -Social Security & Medicare $6,568 increase based on salaries. $12,000 65500 –Uniforms $2,000 increase based on having 11 full-time employees and hiring a large group of POC firefighters in 2024. West Metro Fire Proposed 2025 Budget Changes from 2024 $123,840 63800 -Health Insurance $11,160 decrease based on the SAFER grant covering 100% of the health insurance costs for the 3 lieutenants and a projected minimal increase to the premium. $6,502 63900 –Long Term Disability $1,402 increase and includes based on historical data. $1,182 64000 -Life Insurance $282 increase based on projected premium increase. $141,000 64500 -Workers Comp Insurance $29,000 decrease based on historical data and reimbursement from the SAFER grant. $28,000 64000 –Motor Fuels $3,000 increase based on historical data and continued rising costs. West Metro Fire Proposed 2025 Budget Changes from 2024 $15,000 77000 –Turn -out Gear $3,000 increase based on historical data and continued rising costs. $0 80200 -Consultant $500 decrease based on removing this line item. $0 81400 –Postage & Delivery $100 decrease based on removing this line item. $160,000 81800 -Communications $20,000 increase based on expected increases to expenditures for LOGIS, Hennepin County Radio, and analytic software. $8,000 83400 -Water/Sewer $1,000 increase based on increased use from staffing an additional station. West Metro Fire Proposed 2025 Budget Changes from 2024 $30,000 83600 –Natural Gas $5,000 increase based on historical data and increased use from staffing an additional station. $16,000 84000 -Building Maintenance $1000 increase based on projected increase to the cost of the & Cleaning service. $5,000 85400 -Office Equipment Rent $2,000 increase based on adding another printer lease for Station 1. $0 87400 -Printing $300 decrease based on removing this line item. $77,000 87700 -Financial Services $7,000 increase based on increased costs due to updated contract. West Metro Fire Proposed 2025 Budget 2025 -2029 CAPITAL PLAN 2025 –Cities’ Contributions 325,000 Beginning Fund 2,026,249 Committed (1,086,740) Expenditures (903,425) Ending Non-Committed Fund Balance 36,804 Fund Balance 1,122,824 2026 –Cities’ Contributions 400,000 Beginning Fund 1,903,749 Committed -869,744 Expenditures -907,921 Ending Non-Committed Fund Balance 126,084 Fund Balance 995,828 West Metro Fire Proposed 2025 Budget 2025 -2029 CAPITAL PLAN 2027 –Cities’ Contributions 300,000 Beginning Fund 1,598,153 Committed (1,019,744) Expenditures (439,825) Ending Non-Committed Fund Balance 138,584 Fund Balance 1,158,328 2028 –Cities’ Contributions 300,000 Beginning Fund 1,695,653 Committed (1,119,744) Expenditures (497,325) Ending Non-Committed Fund Balance 78,584 Fund Balance 1,198,328 West Metro Fire Proposed 2025 Budget 2025 -2029 CAPITAL PLAN 2029 –Cities’ Contributions 300,000 Beginning Fund 1,785,653 Committed (1,279,744) Expenditures (437,325) Ending Non-Committed Fund Balance 68,584 Fund Balance 1,348,328 ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 858 1,064 1,922 p = municipality's population (2020 census)23,330 21,986 45,316 v = municipality's taxable market value in millions 2,708 2,748 A = district's avg. calls over 5 years no mutual aid 1,922 P = district's population (2020 census)45,316 V = district's taxable market value in millions 5,456 Percentage a/A 44.6364%55.3636% Percentage p/P 51.4829%48.5171% Percentage v/V 49.6334%50.3666% 48.5842%51.4158%100.00% 100.0000% Required contributions from cities $1,634,616.59 $1,729,883.41 $3,364,500.00 Monthly contribution $136,218.05 $144,156.95 (1) Average calls based on calls for the years 2018 through 2022 without mutual aid. (2) 2023 Taxable market values from Hennepin County report dated 12/27/2022 Contributions from Cities Set to Equal: 2024 General Fund Operating Budget $2,640,900 2024 Capital Plan Budget $250,000 2024 Pension Special Revenue Fund $200,000 2024 Insurance Special Revenue Fund $10,000 2024 Compensated Absences Special Revenue Fund $10,000 2024 Aerial Lease $103,600 2024 Engine Lease $150,000 2024 Total Amount to be Contributed from Cities $3,364,500 WEST METRO-FIRE RESCUE DISTRICT Cost Sharing Formula Calculation in 2023 for use in the 2024 Budget ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 873 1,103 p = municipality's population (2020 census)23,330 21,986 v = municipality's taxable market value in millions 2,770 2,808 A = district's avg. calls over 5 years no mutual aid 1,976 P = district's population (2020 census)45,316 V = district's taxable market value in millions 5,578 Percentage a/A 44.1802%55.8198% Percentage p/P 51.4829%48.5171% Percentage v/V 49.6594%50.3406% 48.4408%51.5592%100.00% 100.0000% Required contributions from cities $1,800,351.01 $1,916,247.99 $3,716,599.00 Monthly contribution $150,029.25 $159,687.33 (1) Average calls based on calls for the years 2019 through 2023 without mutual aid. (2) 2024 Taxable market values from Hennepin County report dated 12/20/2023 Contributions from Cities Set to Equal: 2025 General Fund Operating Budget $2,855,674 2025 Capital Plan Budget $325,000 2025 Pension Special Revenue Fund $200,000 2025 Insurance Special Revenue Fund $10,000 2025 Compensated Absences Special Revenue Fund $10,000 2025 Aerial Lease $103,600 2025 Engine Lease $212,325 2025 Total Amount to be Contributed from Cities $3,716,599 WEST METRO-FIRE RESCUE DISTRICT Cost Sharing Formula Calculation in 2024 for use in the 2025 Budget Memorandum DATE: May 30, 2024 TO: Mayor and City Council FROM: Adam R. Bell, City Manager SUBJECT: HRG – Organized Organics Collection Proposal ____________________________________________________________________ Background Beginning in 2024, all cities in Hennepin County were required to begin following Hennepin County’s Ordinance 13, which requires cities to provide organized weekly, curbside collection of organic waste or require licensed waste haulers operating in the city to offer the same service. The Hennepin Recycling Group (HRG) member cities all directed their respective staff to work with the HRG and look into adding the organized collection of organics to the existing recycling services provided through HRG. In addition, the City of Brooklyn Park, whose staff administers the HRG, was also interested in this, and was part of the proposal. Therefore, HRG Adminstrator Pratt issued a Request-for-Proposal for curbside collection of source-separated organic materials and received a sole response from the current HRG recycling services provider, Waste Management. The proposal is for three to five years of curbside collection of source-separated organic materials collection of source-separated organic materials in all 4 cities. No start date was proposed, but it would function similarly to the current curbside recycling program. Licensed haulers would no longer be required to offer curbside collection of source-separated organic materials to their customers. Unknown at this point is how the proposed contract would impact the existing collection of centralized organics recycling at the existing recycling drop-off site. Attached is the response to the Hennepin Recycling Group’s RFP for organized curbside collection of source-separated organic materials. 3. Budget Impact: The proposal pricing for organics curbside collection is based on the percentage of properties participating. For 2024, rates range from $2.90 per month for up to 10% participation to $5.43 per month for up to 40% participation, with annual increases based on the CPI - WST ( Consumer Price Index for Water, Sewer, and Trash). Based on the current estimate of participation, it is anticipated the organics rate would start on the low end of $3.00. However, that may increase over the contract period as participation in organics increases. Anecdotal evidence from residents reports that they are currently paying $5.00 - $8.50 per month for organics collection through their private haulers. Recommended Action No formal action is required at this time, but the council is being asked to provide feedback on the issue. This item is being discussed at the next HRG Board Meeting. When last discussed by HRG members, the other HRG cities and Brooklyn Park were all expected to adopt organized organics collection whether done within or outside of the HRG. w ® WASTE MANAGEMENT May 22, 2024 Mr Tim Pratt 9300 Noble Ave N Brooklyn Park, MN 55443 ORGANICS PROPOSAL-Orgainics Services for the City of Brooklyn Park and Hennepin Recycle Group Dear Mayor, Staff, and City Council, Waste Management is pleased to submit this Organics Proposal for the City of Brooklyn Park and Hennepin Recycle Group. Waste Management has built a working relationship with not only the City Staff and Administration, but also the Residents of the community. We appreciate the opportunity to provide improved service and relationships for years to come. This Organics Proposal aligns with the City's interest of preserving its goals of limiting the wear and tear on City streets though use of a single hauler, reducing noise, exceeding industry safety standards, having a clean environment, and securing the best rate for recycling collection. WM views the City's interests as the highest priority, and the service and proposal has been customized to meet and exceed these goals. Collection schedules and routes are established, containers are already on site, and experienced staff are attending to the needs and requests of the residents and City. We look forward to continuing our work with the with Brooklyn Park and Hennepin Recycle Group, and the option of strengthening our relationship as a community service provider and partner. Please feel free to contact me with any additional questions you may have. Sincerely, Jason Hartman Waste Management of Minnesota, Inc. Jhartma5@wm.com 612-271-7863 1 Cit y of Brookl yn Park and Henne pin Rec ycle Grou p, Organics Pr posal We would like to propose a 3 to 5 year Organics Service for the City of Brooklyn Park and Hennepin Recycle Group. Monthly Organic Rates Per Household 0 -10% $2.90 11 -20% $3.75 21-30% $4.63 31-40% $5.43 Proposed organic rates for weekly residential collection with WM supplied 64-gallon carts, transfer, and material processing. Annual Pl's using CPI WST. Pricing based on all residents paying for service and then opting in for collection. Carts will only be delivered to a resident once they opt in for service. Organic terms and conditions per SET Acceptable Material List 2 The MULCH STO RE Acceptable Material List Empire Organics Processing Facility 16454 Blaine Avenue East Rosemount, MN 55068 Material Category: Food Scraps The following chart does not represent a complete listing of materials. Accepted Not Accepted (small amounts are accepted) • Fruits and vegetables • Grease or oil* o Peelings, pits, shells and rinds • Chewing gum • Meat, fish, shellfish and bones • Stickers on produce o Bones, scales and shells • Liquids* • Dairy products o Yogurt, cheese, butter • Eggs and eggshells • Bakery and dry goods o Pasta, grains, beans and rice o Bread and cereal o Nuts and shells o Dough, pastries and pies • Pet food * Incidental amounts are accepted. Specialized Environmental Technologies, Inc. Page 1 of 3 Material Category: Paper • Soiled paper • Food-soiled paper Notes: 1. Recyclable paper should be recycled, including clean pizza boxes. 2. Messaging should be tied to paper products that are food related. • Composters mostly want the food but will accept food service packaging as a vessel to help divert food to the organics recycling/composting stream. • Molded paper items (paper plates, bowls, lunch trays, and clamshells) must be BPI certified. To receive BPI certification the product cannot contain any added PFAS chemicals (often used as a grease or oil barrier). PFAS chemicals are persistent in the environment and are very costly to manage at disposal facilities (including compost sites). Accepted Not Accepted • Napkins, and food-soiled paper towels • Paper that can be recycled • Paper egg cartons (remove sticker labels) • Products labeled "biodegradable" or PLA that are • BPI certified products* not BPI certified • Cups, plates and bowls • Cartons (milk cartons, juice boxes, soup, • Containers broth and wine cartons) • Parchment and wax paper • Paper products (plates, boats, cups bowls) • CMA approved products* without BPI certification • Paper grocery or lunch bags (recycle if not soiled) • Paper products used with chemical based • Tissue paper cleaners • Paper towel and toilet paper rolls • Refrigerated and frozen food boxes • Pizza boxes from delivery** • Fast food wrappers (fry bags and burger/sandwich wrappers [unless BPI certified]) • Butcher paper, parchment paper, wax paper, muffin cups (unless BPI certified) • Microwave popcorn bags *Must have BPI or CMA • Ice cream containers logo on product. • Asian take-out food pails (unless BPI certified) • Paper coated with foil • Wax/produce cardboard boxes **food-soiled, plain • Wrapping paper and tissue paper (gift wrap/ cardboard boxes only. packing) • Shredded paper • Receipts • Pull tabs from restaurants/ bars Page 2 of 3 Material Category: Other Compostable/Household Food Related Items • Other compostable food related items • Other household food related items Notes: 1. Recyclable items should be recycled. 2. Public messaging should be tied to products that are food-related. Accepted Not Accepted • Coffee grounds and filters • Recyclable materials (glass, plastic, paper, • Tea leaves metal) • Tea bags (no synthetic filter or metal) • Cleaning and personal care wipes • Houseplant trimmings • Pet waste or litter or animal bedding • Hair and nail clippings (undyed and not painted) • Diapers • Wooden items such as wood chopsticks, • Menstrual and incontinence products popsicle sticks and toothpicks • Non-BPI certified plastic (bags, containers) • Nutritional or protein supplement powders (no • Products labeled as "biodegradable" or PLA that vitamins, minerals, etc. in pill form) are not BPI certified • Cotton balls and paper swabs • Dryer lint and dryer sheets • BPI certified or CMA approved compostable • Clothing or textiles products*: • Dental floss 0 Cups, plates and bowls • Medicines 0 Utensils and straws • Cigarettes 0 Bags • Fireplace or BBQ ashes 0 Containers • Charcoal or ashes 0 Bamboo products • Lumber and sawdust 0 Bagasse products • Rocks, soil and dirt 0 Single-use coffee pods • Latex items (balloons or gloves) • Rubber and rubber bands • Wax (wax paper, [unless BPI certified], candle wax, car wax) *Must have BPI or CMA • Tape of any kind logo on product. • Vacuum cleaner bags and contents • Floor sweepings • Yard waste material (belongs in separate stream) • Pallets or crates Page 3 of 3