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3.5. SR 04-03-2006 City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Consent April 3, 2006 Item Number 3.5.* Prepared by Rebecca Haug, Environmental Administrator Reviewed by Lori ohnson, Ci Administrator Item Description Re uest for reimbursement of surchar e to Elk River Landfill Introduction The Elk River Landfill is requesting reimbursement for monies over paid to the City of Elk River for the city fee mandated by "Minnesota Statue 115A.921." Discussion Attached is a letter from Elk River Landfill requesting that the City reimburse them in the amount of $82,999.86, which was due to an overpayment of demolition debris surcharge. Pursuant to Minnesota Statute 115A.919, the City can only collect .15 cents per permitted cubic yard (cyd). Elk River Landfill provided me with their spreadsheets as proof to their overpayment, in which I verified the accuracy. Elk River Landfill has since moved out of DC3 due to limiting out on capacity. Financial Impact $82,999.86 reimbursed to Elk River Landfill out of the Landfill Construction Debris Fund Attachments . Letter from Debra Walters, District Manager of Elk River Landfill dated January 12, 2006. . Minnesota Statute 115A.921 Action Requested Staff is requesting the City Council approve the reimbursement to the Elk River Landfill in the amount of $82,999.86. Council Action Motion by _ Second by _ Vote Follow Up C: \Documents and Settings \tallard\Local Settings \ Temporary Internet Files \ OLKF\REQUEST COUNCIL ACTION-reimburs=ent.doc ~AN 1 '12006 .. WASTE MANAGEMENT January 12, 2006 ELK RIVER LANDFILL. INC. 22460 Highway 169 NW Elk River, MN 55330 (763) 441-2464 (763) 441-2025 Fax Rebecca Haug City of Elk River 13069 Orono Parkway Elk River, MN 55330 RE: Minnesota Statute 115A.921 City fee authority Dear Ms. Haug, Elk River Landfill, Inc. (ERL) is requesting reimbursement for monies over paid to the City of Elk River for the city fee mandated by "Minnesota Statue 115 A. 921. The total approved cubic yards (cyds) for D3 is 620,000 cyds minus cover material of 43,560 cyds equals 576,440 cyds. ERL has paid to the City of Elk River $169,465.86 for DC3. Under this statute, the City can only collect .15 cents per cyd, for permitted cubic yards. The total permitted cubic yards for DC 3 is 576,440 cyds, which at . 15/cy equals $86,466.00. This oversight has resulted in a credit reimbursement to Elk River Landfill, Inc. in the amount of $82,999.86 (see the attached spreadsheets). Please review the attachments, should you have any questions, feel free to call me at 763.441.2464 ext.11. Respectfull y, ELK RIVER LANDFILL, INC. ~[L",U Wv<--e+~ Debra Walters District Manager DW Imsg From everyday collection to environmental protection, Think Green'!' 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J _~~::.!. __~ _... :".".. _~.:'~_;_ f-_~.~_'m,~'L_ _ .".-:.....:-. -~'-.~-:k:: -~~ .m_m~_.':::.:~ 115A.921 city or town fee authority. Subdivision 1. ~xed municipal solid waste. A city or town may impose a fee, not to exceed $1 per cubic yard of waste, or its equivalent, on operators of facilities for the disposal of mixed municipal solid waste located within the city or town. The revenue from the fees must be credited to the city or town general fund. Revenue produced by 25 cents of the fee must be used only for purposes of landfill abatement or for purposes of mitigating and compensating for the local risks, costs, and other adverse effects of facilities. Revenue produced by the balance of the fee may be used for any general fund purpose. Waste residue from recycling facilities at which recyclable materials are separated or processed for the purpose of recycling, or from energy and resource recovery facilities at which solid waste is processed for the purpose of extracting, reducing, converting to energy, or otherwise separating and preparing solid waste for reuse shall be exempt from the fee imposed by a city or town under this section if there is at least an 85 percent weight reduction in the solid waste processed. Before any fee is reduced, the verification procedures of section ~.:?':~'~n~.~')' subdivision 1, paragraph (c), must be followed and submitted to the appropriate city or town, except that for facilities operating outside of the metropolitan area the commissioner shall prescribe procedures for verifying the required 85 percent weight reduction. Subd. 2. Construction debris. (a) A city or town may impose a fee, not to exceed 50 cents per cubic yard of waste, or its equivalent, on operators of facilities for the disposal of construction debris located within the city or town. The revenue from the fees must be credited to the city or town general fund. Two-thirds of the revenue must be used only for purposes of landfill abatement or for purposes of mitigating and compensating for the local risks, costs, and other adverse effects resulting from the facilities. (b) A facility permitted for the disposal of construction debris is exempt from 25 percent of a fee imposed under this subdivision if the facility has implemented a recycling program that has been approved by the county and 25 percent if the facility contains a liner and leachate collection system approved by the agency. (c) Two-thirds of the revenue from fees collected under this subdivision must offset any financial assurances required by the city or town for a construction debris facility. (d) The maximum revenue that may be collected under this subdivision must be determined by multiplying the total permitted capacity ~f a facility by 15 cents per cubic yard. Once the maximum revenue has been collected for a facility, the fees in this subdivision may no longer be imposed. HIST: 1984 c 644 s 47; 1987 c 348 s 26; 1988 c 685 s 20; 1989 c 325 s 19; 1991 c 337 s 38; 1994 c 585 s 23; 1995 c 247 art 1 s htto' //wwwrevisor.lell.state.mn.us/stats/115AJ921.html 1/12/2006