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8.2.1 Trash and Recycling Services Staff Report to Council Jan 4 2023 1 Staff Report Date of Meeting: January 4, 2023 To: Mayor and City Council From: Anne Hurlburt, Interim City Administrator Re: Trash and Recycling Services in the City of Scandia Issue: For many years, SRC was the dominant company providing trash hauling services to Scandia residents. Since 1994, the township/city had a contract with SRC to provide recycling services to residents, with the city subsidizing some of the cost with an annual payment ($27,846 in 2022.) In 2022, SRC was acquired by Waste Management (WM), which was already serving some Scandia customers. In November, WM informed the city that they would not extend the SRC recycling contract unless the payment was increased substantially, to an estimated cost of over $280,000 for 2023. The city informed WM that this was not possible. WM has indicated that they will continue to provide recycling services to their Scandia customers, without an increase in their waste and recycling bills, until the city can determine how it will approach recycling services in the future. Concurrently, we identified an issue with the city’s ordinance that governs trash and recycling services (City Code Chapter 52: Garbage). It dates to 1970, a time when burning and open dumping were the most common forms of solid waste management. It does not comply with state law and is inadequate for today’s needs. The provisions for licensing waste haulers have not been implemented (though Washington County also licenses haulers.) A new ordinance is needed. Staff has been consulting with Washington County Environmental Specialist Max Dalton (651 430-6714/ max.dalton@co.washington.mn.us) to understand the city’s options for dealing with recycling and trash services. He has assured us Scandia’s recycling grant ($13,188 in 2022) will continue as the city deals with these issues. He provided us with sample ordinances to review, and will be a resource to the city and in attendance at the January 4 meeting. Washington County also has technical assistance available to the city through their contract with Foth consultants, at no cost to the city and covered as part of the grant program. Before they will involve Foth, the city needs to determine the type of solid waste and recycling collection system it wants to pursue. 2 Options: The two main types of collection system are commonly referred to as “open collection” and “organized collection.” The attached document from the League of Minnesota Cities, “City Solid Waste Management” describes the two types, with some pros and cons, along with additional information about city responsibilities for waste management. Open collection systems allow individual residents and businesses to contract with any collector licensed to do business in the city. Organized collection is an optional use of the city’s authority to choose the waste hauler(s) to serve the community through an RFP process. It is also possible to have a hybrid system where some collection (such as recycling) may be organized, but other collection services are open. Additional Information: Other Washington County communities have dealt with solid waste and recycling in different ways. Please see the following table for a list of cities using each approach (and their haulers for organized collection and hybrid system communities.) Washington County Communities Solid Waste and Recycling Organized Collection Hybrid (allows open collection for trash but organized collection for recycling) Open Collection • Afton (Highland Sanitation) • Birchwood (Tennis Sanitation) • Forest Lake (Republic) • Marine on St. Croix (Waste Management) • Stillwater (Waste Management.) • Baytown Township (Maroney’s Sanitation) • Grant (Waste Management) • Lake St. Croix Beach/Lakeland Shores/St. Mary’s Point (joint agreement with Highland Sanitation) • West Lakeland Township (Tennis Sanitation) • Mahtomedi (Maroney’s Sanitation) • Cottage Grove • Denmark Township • Hugo • Lake Elmo • Newport • Oakdale • Woodbury Washington County solid waste and recycling information can be found here: Solid Waste Regulation | Washington County, MN - Official Website 3 Citizen Concerns: Since the purchase of SRC by WM, the city has been receiving calls and emails from residents concerning issues with WM’s service. There have been active discussions on social media. Some residents have been contacting haulers serving neighboring communities, and we’ve had an inquiry from a hauler asking how to get licensed in Scandia. We’ve asked county staff to weigh in on whether Scandia might be able to allow new haulers to operate in Scandia until such time as we finalize our new ordinances. There are a small handful of communities that rely on the county licensing program to ensure they are in compliance with any state and local laws. While this may draw interest for other haulers to service the area, it may also get ahead of the city’s process to determine what approach will be best for Scandia. Discussion with one hauler indicate that until the city determines its course of action, new competitors may be reluctant to expand into Scandia due to the investment required.. We’ve also heard complaints concerning WM’s invoices and terms of service, as residents formerly served by SRC received their first bills from WM this week. Attached to this memo are sample invoices from one customer, showing a quarterly bill from SRC for comparison with their new quarterly invoice from WM. There has been some misunderstanding about how Scandia residents have been paying for recycling. SRC’s bills did not specifically list “recycling”, but did show charges for “non-taxable service” at $10.00 per month This was the recycling charge. Scandia’s contract with SRC did not pay the full cost for recycling service. The new WM invoice shows the same $10.00 per month recycling charge. Recommendations: Staff recommends that the Council discuss the options. You may choose to give direction on a preferred approach or request more information for discussion at a future meeting. The Council may also want to discuss how to communicate with citizens about this issue or involve them in the decision-making process. The city’s decisions and future ordinance will also affect businesses and commercial waste haulers, so you may want to involve them in the process (potentially involving the city’s EDA.) The Council could also discuss whether you want to allow haulers other than WM to serve Scandia (under the county’s licensing) until Scandia develops its own program. Attachments: • League of Minnesota Cities Information Memo, “City Solid Waste Management”, 6/8/2022 • Sample SRC and Waste Management Bills