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01-11-2022 Council Work Session WORK SESSION VIRTUAL MEETING HELD VIA WEBEX JANUARY 11, 2022 5:45 PM Call to order 1. Organized Collection Update and Residential Organics Credit Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. AGENDA SECTION:Work Session Items AGENDA ITEM #1. STAFF RE P ORT NO. 01 WORK SESSION 1/11/2022 RE P O RT P RE PA RE D B Y: Rachel L indholm, S ustainability S pecialist D E PA RTME NT D IRE C TO R RE V IE W: K ris Weiby, A cting Recreation S ervices D irector 1/5/2022 O THE R D E PA RTM E NT RE V IE W: C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager 1/5/2022 I T E M F O R WO RK S E S S IO N: Organized Collection Update and Residential Organics Credit E X E C UT IV E S UM M ARY: The following items will be covered in this work session: An update on the organized collection system and a recap of the first 3 months of the program. A proposed organics utility billing credit for residents in the organized collection program. D IRE C T I O N NE E D E D: There is no direction needed for the program update. Regarding the utility billing credit, staff are asking for general feedback on the proposal as well as direction regarding implementation choices that will be explained during the presentation. B AC K G RO UND INF O RM AT I O N: A.H IS TOR IC AL C ON T E X T Organized Collection Update Richfield's organized collection system started on 10/4/21. There have been a variety of successes and challenges over the first few months of the program, which staff will detail during the presentation. Residential Organics Credit Discussion Historically, Richfield residents received a credit on their utility bill for participating in the recycling program. Over the years, the Select Committee On Recycling and the Environment (S C ORE) funding provided by Hennepin County (the County) that funded this credit continued to decrease and the city was unable to continue it as it had been operating. W ith the decrease in recycling-specific funding, the county started to increase organics-specific S C ORE funding for cities who had curbside organics collection programs. Until fall of 2021, the City was unable to receive much funding from the County because Richfield didn't have a curbside collection program. I n late 2021, the County awarded the City $32,193.57 in organics specific funding. City staff are recommending the use of this 2021 funding as a resident credit for the curbside organics program. Staff will present two options to City Council during the work session for the distribution of these funds - to all households in the program or to those households participating in organics collection. Staff will present logistics and information for both options. B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): Hennepin County S C ORE funding policy agreement C.C R IT IC AL T IMIN G IS S U E S: The City will receive 2022 funding as well this year so we would like to credit residents with the 2021 funds before we receive more funding to use. D.F IN AN C IAL IMPAC T: The City was allocated $32,193.57 in organics S C ORE funds from Hennepin County in late 2021. A program-wide credit to residents would result in a total credit of around $3.25 distributed to each household with approximately 9,950 households in the program. Staff have to confirm with LOGI S if this is easier to do a one-time credit or to split it up between several bills. E.L E GAL C ON S ID E R AT ION: None. The City attorney is aware of the S C ORE funding from the County. ALTE R N AT IV E(S): Suggest other ideas for spending of County S C ORE funds. P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: AT TAC H ME N T S: D escription Type Hennepin C ounty S C O RE P olicy B ackup Material Residential Waste Reduction and Recycling Funding Policy January 1, 2022 – December 31, 2025 Department communication to the Hennepin County Board of Commissioners on October 5, 2021 Communicated October 5, 2021 1 I. Policy Overview A. Background The Hennepin County Board of Commissioners has determined that residential waste reduction and recycling programs support county goals to make progress toward zero waste, reduce greenhouse gas emissions, and reduce disparities associated with waste disposal. The county has adopted the goals established in State Statute and by the Minnesota Pollution Control Agency (MPCA) in its Metropolitan Solid Waste Management Policy Plan and developed a Residential Waste Reduction and Recycling Funding Policy to help reach a 75% recycling rate by 2030. B. SCORE funds The county receives funding from the state’s Select Committee on Recycling and the Environment (SCORE) for the development and implementation of waste reduction and recycling programs. SCORE funds are based on revenue received by the State of Minnesota from the solid waste management tax (SWMT) on garbage services and are subject to change based on the SWMT revenue received by the state and funds allocated by the legislature. C. Support for city programs City recycling programs play an important role in the solid waste management system. The county has funded city programs for over 30 years and will use this policy to make available all SCORE funds to cities for residential waste reduction and recycling programs. SCORE funds will be dedicated to four different purposes: 1) general funding for waste reduction and recycling programs, 2) curbside organics recycling programs, 3) organics drop-off sites, and 4) multifamily waste reduction and recycling. Funds distributed to cities for a calendar year will be based on SCORE funds received by the county in the state’s corresponding fiscal year. D. Term of the policy Hennepin County is committed to implementing this policy from January 1, 2022 through December 31, 2025. The county may revise this policy to align with strategic priorities developed in the zero waste plan or solid waste management master plan. In addition, the county may revise this policy if it determines changes are needed to assure compliance with state law and MPCA goals established for metropolitan counties. If SCORE funds are eliminated from the state budget or significantly reduced, the county will consult with cities at that time and develop a recommendation to the board on future funding for residential waste reduction and recycling programs. Communicated October 5, 2021 2 E. Grant agreements Each city seeking funding under the terms of the Residential Waste Reduction and Recycling Funding Policy must enter into a grant agreement with the county for a term concurrent with the expiration of this policy, December 31, 2025. The grant agreement must be accompanied by a resolution authorizing the city to enter into such an agreement. If cities form a joint powers organization responsible for waste reduction and recycling programs, the county will enter into a grant agreement with that entity and distribute funds to that organization. II. Allocation of Funds SCORE funds will be dedicated to the following purposes:  General funding for waste reduction and recycling programs  Curbside organics recycling programs  Organics drop-off sites  Multifamily waste reduction and recycling A. Waste reduction and recycling programs The county will dedicate 40% of SCORE funds to provide funding for city waste reduction and recycling programs. For the purposes of this policy, city waste reduction and recycling programs include organics recycling. Funds will be allocated based on number of eligible households with curbside recycling service. The following formula will be used to calculate a city’s grant amount. Number of eligible households with curbside recycling in city ------------------------------- Total number of eligible households with curbside recycling in county x 40% of SCORE funds available = Waste reduction and recycling grant amount available to the city Eligible households are defined as households in single family through fourplex residential buildings or other residential buildings where each household has its own recycling collection container to set out for curbside collection and receives recycling collection service through the city. In cities with open recycling collection, eligible households are defined as households in single family through fourplex residential buildings where each household has its own recycling collection container to set out for curbside collection. The number of eligible households will be determined by counting the number of eligible households on January 1 of each funding year. The city will report the number in its application for funding. Communicated October 5, 2021 3 B. Curbside organics recycling programs The county will dedicate 50% of SCORE funds to provide funding for curbside organics recycling programs. Funds will be allocated using participation targets for each city. Funding is not contingent upon meeting the participation target. The following formula will be used to calculate a city’s grant amount. Target number of households with curbside organics recycling in city ------------------------------- Total target number of households with curbside organics recycling in county x 50% of SCORE funds available = Curbside organics recycling amount available to the city Initial participation targets (as a percent of households with curbside recycling service):  50% for cities that contract for organics recycling service  10% for cities that require haulers to offer organics recycling service C. Organics drop-off sites The county will dedicate up to $3,300 per eligible city to provide funding for organics drop-off site expenses. Cities with a population of less than 10,000 are eligible. E. Multifamily waste reduction and recycling The county will take 10% of SCORE funds, subtract the amount allocated to organics drop-off sites, and dedicate the remainder to provide funding for multifamily waste reduction and recycling programs. For the purposes of this policy, city waste reduction and recycling programs include organics recycling. Funds will be allocated based on the number of multifamily households. The following formula will be used to calculate a city’s grant amount. Number of multifamily households in city ------------------------------- Total number of multifamily households in county x 10% of SCORE funds available minus organics drop-off funds = Multifamily waste reduction and recycling amount available to the city Communicated October 5, 2021 4 Multifamily households in cities with organized recycling collection are defined as 1) households in buildings where each household does not have its own recycling collection container to set out for curbside collection, or 2) households in buildings that do not receive recycling collection service through the city, including apartment buildings, condominiums, townhomes, and cooperative housing units where a property manager or association coordinates collection service. Multifamily households in cities with open recycling collection are defined as households in residential buildings larger than a fourplex. III. Application for Funding A. General program and curbside organics application To receive funding for waste reduction and recycling programs and curbside organics recycling, each city must complete an annual grant application by February 15 of that year. The application consists of a web-based report that requests the following: contract, program, tonnage, and financial information. The participation rate for the curbside recycling program must also be included in the web-based report. The city must calculate its participation rate during the month of October. The methodology for measuring participation must be provided to the county upon request. The county may request additional information, such as a planning document with a description of activities the city will implement to increase recycling and make progress toward county objectives. B. Organics drop-off sites and multifamily supplementary application To receive funding for organics drop-off sites and multifamily waste reduction and recycling, each city must submit a supplementary grant application form annually. The county will provide this form by February 15 and the city must complete it by March 15 of that year. IV. Use of Funds A. Conditions applying to all funds The following requirements apply to the use of all funds: 1. Funds must be expended on eligible activities per Minnesota Statutes §115A.557. 2. All grant funds accepted from the county must be used in the year granted unless the county agrees to an exception. The county will not provide any funds in excess of actual expenses. Funds not spent must be returned to the county. Communicated October 5, 2021 5 3. A city or joint powers organization may not charge its residents through property tax, utility fees, waste fees, environmental fees, or any other method for the portion of its waste reduction and recycling program costs that are funded by county grant funds. 4. Cities must track expenditures for waste reduction and recycling programs, curbside organics recycling, organics drop-off sites, and multifamily waste reduction and recycling and establish accounting mechanisms to provide the information requested in the financial section of the annual grant application. 5. Waste reduction and recycling activities, revenues, and expenditures are subject to audit. B. Curbside organics use of funds Curbside organics grant funds may be used for program expenses, including the following: • Incentives for participation (service discounts, countertop pails, compostable bags) • City contract costs • Education and outreach • Carts • Other expenses approved by the county Yard waste expenses are not eligible. If organics are co-collected with other waste, the organics expenses must be tracked separately. If a city passes funds through to a hauler, 100% of those funds must be credited to residents’ bills. C. Organics drop-off sites use of funds Organics drop-off site grant funds may be used for program expenses, including the following: • Hauling and disposal • Dumpsters or carts • Site construction • Education and outreach • Incentives for participation (countertop pails, compostable bags) • Other expenses approved by the county D. Multifamily waste reduction and recycling use of funds Cities that choose to apply for multifamily waste reduction and recycling funding will work with the county to identify eligible activities that are customized to the city’s goals and needs. These activities will be determined through the supplementary grant application process. Communicated October 5, 2021 6 Unused funds will be used by the county to provide multifamily waste reduction and recycling program services. Multifamily resources provided by the county, including reusable tote bags/baskets and multifamily specific signs and labels, are not eligible expenses. V. City Requirements A. Materials accepted A city’s curbside collection program must accept a list of mixed recyclables as selected by the county in consultation with haulers, local material recovery facilities, and end markets. The county will update the list of materials as needed, distribute the list to city recycling coordinators, and post the list on the county’s website. B. Education and outreach The partnership between the county and municipalities has been highly effective in educating residents and motivating behavior change. To continue this partnership and increase these efforts, city waste reduction, recycling and organics recycling activities must be coordinated with county and regional efforts. Municipalities must adhere to the following requirements: 1. Use county terminology on promotional and educational materials when describing recycling and organics recycling guidelines, including the description of materials accepted and not accepted, as well as when describing preparation guidelines. 2. Use images approved by the county if using images of mixed recyclables and organic materials. 3. Provide the following information on the city’s website;  Recycling and organics recycling materials accepted and not accepted  Curbside collection calendar  Organics drop-off site(s) information  Links to county resources and programs 4. Provide a guide on recycling and organics recycling to residents each year. The guide shall contain information on curbside collection, materials accepted and not accepted, organics drop off site information (if applicable), and a curbside collection calendar. 5. Complete two or more waste reduction, recycling and organics recycling educational activities annually that include the promotion of curbside collection. The county will provide a list of activities to city recycling coordinators. These activities are in addition to the provision of an annual guide. Communicated October 5, 2021 7 6. If a city develops its own educational materials, does not use a template produced by the county, does not utilize design services offered by the county, or relies on a hauler to provide an annual guide, then the city must submit the materials to the county for approval. C. Waste reduction and recycling performance On an annual basis, cities must demonstrate that a reasonable effort has been made to improve waste reduction and recycling programs. If a city does not demonstrate measurable progress, a waste reduction and recycling improvement plan must be submitted by the city within 90 days of being notified by the county. The waste reduction and recycling improvement plan must be negotiated with the county and specify the efforts that will be undertaken by the municipality to improve its program to yield the results necessary to achieve county objectives. In cooperation with the county, the city may be required to participate in waste sorts and community engagement to identify strategies to improve waste reduction and recycling outcomes. VI. Grant Payments The county will make two equal payments to the city. Those two payments will provide the sum of each city’s total grant amount for general waste reduction and recycling programs, curbside organics recycling programs, organics drop-off sites, and multifamily waste reduction and recycling. One payment will be made after the county receives the applications for funding. A second payment will be made after basic program requirements, education and outreach requirements, and performance have been confirmed and approved. If the city meets the county requirements, both payments will be made during the same calendar year. Cities are expected to fulfill the conditions of this policy and the requirements of Ordinance 13. It is the responsibility of each city to meet the requirements of Ordinance 13. The implementation of the county requirements for cities shall be the responsibility of each respective city. If any city fails to establish or implement any or all of the city requirements in Ordinance 13, all SCORE funding will be withheld until the city meets the requirements or a waste reduction and recycling improvement plan is negotiated with the county.