Item Coversheet

Board Action Request
22-0161


Item Description:
Amd 4 to Agmt A165752 with Shakopee Mdewakanton Sioux Community and Amd 2 to Agmt A140055 with Specialized Environmental Technologies for organics processing svcs, ext periods to 05/31/25, incr per ton tipping fees
Resolution:
BE IT RESOLVED, that Amendment 4 to Agreement A165752 with the Shakopee Mdewakanton Sioux Community for organics processing services, establishing an annual tipping fee increase of 3 percent, and extending the contract period through May 31, 2025, be approved; and 
 
BE IT FURTHER RESOLVED, that Amendment 2 to Agreement A140055 with Specialized Environmental Technologies for organics processing services, increasing the tipping fee to $55 per ton, and extending the contract period through May 31, 2025, be approved; that the Chair of the Board be authorized to sign the Amendments on behalf of the county; and that the Controller be authorized to disburse funds as directed. 
Background:
The county entered into Agreement A140055 with Specialized Environmental Technologies in 2014 and Agreement A165752 with the Shakopee Mdewakanton Sioux Community in 2016 to process source-separated organic material (Resolution 14-0058R2). The board subsequently approved amendments to Agreement A165752 (Resolutions 16-0291, 19-0085, 20-0335) and an amendment to Agreement A140055 (Resolution 17-0160). In 2021, the county managed almost 8,000 tons of organics through these agreements. 
 
Hennepin County’s Solid Waste Management Master Plan prioritizes organics recycling as a strategy to help achieve a 75% recycling rate goal by 2030. Recycling organics is the biggest opportunity to make progress toward zero waste because almost one-third of our trash is organic material. Organics include food scraps, food-soiled paper, and certified compostable plastic bags and foodware. 
 
Diverting organic material from the trash is one of the foundational strategies in the county’s Climate Action Plan. Keeping organics out of the trash helps reduce methane emissions from landfills. In the first 20 years after its release, methane is 84 times more potent of a greenhouse gas than carbon dioxide. Due to rapid emissions reductions associated with reducing methane, climate experts have identified reducing methane from landfills as a priority in combating climate change. In addition, the use of compost as a soil amendment increases carbon sequestration. 
 
Current Request: This request seeks approval of Amendment 4 to Agreement A165752 with Shakopee Mdewakanton Sioux Community for organics processing services to extend the contract period through May 31, 2025 and to establish an annual tipping fee increase of 3 percent. The current tipping fee is $43 per ton. 
 
This request also seeks approval of Amendment 2 to Agreement A140055 with Specialized Environmental Technologies for organics processing services to extend the contract period through May 31, 2025 and increase the tipping fee to $55 per ton. 
 
Impact/Outcomes: Amending these agreements will help ensure adequate short-term capacity for organics processing and continue county support for organics programs. Organics recycling is a crucial strategy for making progress toward zero waste, reducing greenhouse gas emissions, and reducing disparities associated with waste disposal.  
 
Composting organics turns organic material into a valuable soil amendment that is used for road construction, landscaping, and gardening projects. Amending soil with compost helps maintain moisture in the soil, slowing runoff and enhancing soil health.  
Recommendation from County Administrator: Recommend Approval