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HomeMy WebLinkAbout5G - Spring Clean-Up Day Recycling Grant Agreement MEETING DATE: AGENDA .~ PREPARED BY: AGENDA ITEM: DISCUSSION: APRIL 7,2008 5G JENNIFER WITTKOPF, PUBLIC WORKS COORDINATOR CONSIDER APPROVAL OF A RESOLUTION APPROVING A RECYCLING GRANT AGREEMENT WITH SCOTT COUNTY FOR THE ANNUAL SPRING CLEAN-UP DAY, APRIL 19, 2008. Introduction The purpose of this agenda item is to authorize the Mayor and City Manager to enter into a Recycling Program Agreement with Scott County in order to receive grant funds for the Annual Clean-Up Day. We are waiting for the 2008 agreement to be provided by the County. The resolution conditions execution on the City Attorney's approval of the agreement. Historv For the past 19 years, the City of Prior Lake has organized and sponsored a clean-up I recycling event. This year's Clean-Up Day is planned for Saturday, April 19, 2008, at Twin Oaks Middle School from 8 a.m. to noon. This program allows residents of Prior Lake, Spring Lake Township and Credit River Township to recycle or dispose of many recyclable materials including: batteries, electronics, appliances, tires, scrap metal, brush and yard waste. The Rotary and Lions Clubs sponsor Bridging at the same time and location. Through this program usable household items may be donated at no cost. Bridging then gives the items away to those in need. In February, a grant request was submitted to the Scott County Environmental Health Department requesting funding assistance for this year's clean-up I recycling event. This grant was pursued for the purpose of having a mechanism for funding for the event. On March 17, 2008, the City Council approved a resolution accepting quotes and authorizing staff to contract with haulers I vendors to provide services for the clean-up event. Current Circumstances The program is primarily supported by funding through user fees and a grant from Scott County. The Parks budget also includes $18,000 to contract with the haulers needed. This year, the County has set aside a grant of up to $4,687.73 for the City of Prior Lake to host a recycling I clean-up day. Credit River Township and Spring Lake Township have requested to be part of Clean-Up Day again this year. By allowing township residents to participate, the City of Prior Lake will receive an additional $1,871.44 from Scott County to offset the cost of adding the township residents. With Credit River and Spring Lake Township's contribution, Prior Lake's total grant funding will be $6,559.17. R:\Council\2008 Agenda Reports\04 07 08\clean up grant 2008 agenda. doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 The grant funding this year is significantly less than in years past. The County receives its funds for the grant from the State. Several years back, Scott County increased the overall county-wide grant amount, to help cover the costs of electronic collection. The increased grant funding was being covered by the County, without increased funds from the State. This year, because of current budget concerns and changes in legislation affecting electronic recycling, Scott County has decreased the overall grant amount. During the 2008 grant cycle, the County is offering more funds to those cities and townships that have to pay for electronic collection. Because the City of Prior Lake has contracted with a vendor who offers free electronic collection, the City's grant is being reduced. Because it is based on voluntary resident participation, it is difficult to determine how much expenditures and revenues will be in advance of the clean-up event. Staff estimates, however, that the lower grant funding this year will be offset by lower vendor costs (free electronic collection). Assuming all other costs and gate fee revenues remain steady, the following shows the comparison between the changes in grant funding and electronic collection costs: 2007 2008 City grant $ 11,826.82 $ 4,687.73 Township grants $ 4,323.56 $ 1,871.44 $ 16,150.38 $ 6,559.17 Electronic collection costs $ 13,190.04 $ 0.00 Remaining grant funds $ 2,960.34 $ 6,559.17 These remaining grant funds are then used to cover the other costs associated with the event. Conclusion The Annual Clean-Up Day provides residents with a valuable service from the City. The goal of the event is to have residents bring their unwanted household materials to be disposed of properly. This is beneficial to the environment and helps maintain the clean, litter-free landscape of Prior Lake and surrounding area. Approximately 650 vehicles attended last year's event, demonstrating that a great number of residents participated. For that reason, staff requests that the City Council approve the resolution authorizing the Mayor and City Manager to execute a grant agreement with Scott County for this year's Clean-Up Day. ISSUES: To secure these grant funds, the City must enter into a contract with Scott County, agreeing to the terms and conditions of the event. The County's overall grant funding has decreased substantially, but because electronics will be collected free of charge the decrease should not effect the City's budget negatively. Using 2007's costs for comparison the City would actually have a reduction in total costs of $3,598 considering the reduced grant and free electronics recycling. R:\Council\2008 Agenda Reports\04 07 08\c1ean up grant 2008 agenda. doc FINANCIAL IMPACT: The County has set aside a grant of up to $6,559.17 for the City of Prior Lake to host a Clean-Up Day for its residents and the residents of Spring Lake and Credit River Townships. The Parks budget allocates $18,000 to contract with the necessary material haulers. These funds will be repaid via user fees and grant money from Scott County, thus the overall financial impact is expected to be minimal. It is difficult to estimate the amount that will be received from user fees and the amount that will be expended on vendors, and staff will report to Council if gate fee adjustments are warranted in future years. To help make the event successful and have the day run smoothly for the residents, several City staff members are needed to work at the event. Approximately twenty maintenance workers are needed to help load the material into the trailers, collect gate fees, woodchip the brush/trees that are collected, and sweep/clean-up the school parking lot when the event is completed. This equates to approximately 100 hours of overtime, which comes out of the Parks and Streets division budgets. Overall in 2007, the City spent $20,014.86 in dumping/hauling fees, $3,746.74 in Public Works Maintenance overtime costs, plus advertisement costs, for a total expenditure of $24,665.44. The revenue generated from the 2007 Clean- Up Day included the County grant of $16,150.38, plus the gate fees of $4,863.82, for a total income of $21,014.20. The City needed to subsidize a total amount of $3,651.24 for this event. The City subsidizes a portion of the event costs each year, with funds drawn from the Parks budget. The median amount subsidized by the City in recent history is roughly $4,000. The desired outcome is to "break even" on the event. Gate fees were reviewed by staff and the City Council prior to the 2007 event. It was decided at that time to maintain the current fee structure. The City sees many benefits in providing this service to the community and the historic median annual subsidy was deemed by the City Council as a reasonable cost for the event. Preventing litter and environmental hazards from being improperly disposed of is worth an investment on the City's part. If costs and funding stay in balance, the City can continue to provide this service at a very minimal user fee. ALTERNATIVES: 1. Authorize Mayor and City Manager to execute a grant agreement with Scott County. 2. Table this item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED MOTION: A ternative #1 ReV~(Jj~ Frenk Boyles, Vne! er R:\Council\2008 Agenda Reports\04 07 08\clean up grant 2008 agenda. doc 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION OS-xxx A RESOLUTION TO APPROVE A SCOTT COUNTY RECYCLING GRANT FUNDING AGREEMENT FOR THE 2008 ANNUAL CLEAN-UP DAY Motion By: Second By: WHEREAS, The City has sponsored a Spring Clean-Up Day for the past 19 years; and WHEREAS, Scott County has provided grant funding to assist with City-sponsored recycling events; and WHEREAS, Scott County has set aside a grant of up to $4,687.73 for the City of Prior Lake to operate a recycling day for 2008; and WHEREAS, Credit River Township and Spring Lake Township have requested to be a part of the City's clean-up event; and WHEREAS, The City will receive an additional $1,871.44 to offset the cost of adding Credit River and Spring Lake township residents, making the total grant funding $6,559.17; and WHEREAS, The 2008 Annual Spring Clean-Up Day will be held Saturday, April 19, 2008; NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are hereby authorized to execute a Recycling Program Agreement with Scott County subject to review and approval by the City Attorney. 3. Funding for the program will come from grants from Scott County as set forth in the recitals. PASSED AND ADOPTED THIS 7TH DAY OF APRIL 2008. YES NO Haugen Erickson I Hedber9 LeMair Millar Haugen Erickson Hedberg LeMair Millar Frank Boyles, City Manager R:\Council\2008 Agenda Reports\04 07 08\clean up grant 2008 reso.doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245