DEPARTMENT: Environmental Resources
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Joint Powers Agreement With Scott County For Design And Construction Of Regional Household Hazardous Waste Collection And Recycling Facility
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PURPOSE/ACTION REQUESTED
Authorize execution of a joint powers agreement (JPA) with Scott County for the design and construction of the Dakota-Scott Regional Household Hazardous Waste Collection and Recycling Facility.
SUMMARY
Dakota and Scott counties’ existing household hazardous waste and recycling centers are insufficient to meet existing and future needs. Currently, the Recycling Zone in Dakota County is undersized, managing more than four times its design capacity. Scott County’s facility is expected to outgrow its current site in less than ten years. Dakota and Scott counties are partnering to build a regional facility in Dakota County to address the needs of both counties. In 2021, the State of Minnesota approved $2 million in bonding funds to support Phase I for land purchase for a new facility. The addition of this facility will build a more resilient system for household hazardous waste management in the south metro region.
The significant terms of the JPA include:
• The property search, design, and construction will be the responsibility of Dakota County, in consultation with Scott County.
• After state bonding is applied, the Counties will provide the remaining capital cost based on population, with Dakota County providing 74 percent (approximately $10.36 million) and Scott County providing 26 percent (approximately $3.64 million).
• Dakota County will administer the operations, including employing staff or contractors. Scott County will reimburse Dakota County for a portion of the operation and administration through a reciprocal use agreement between the Counties.
• Dakota County will manage the capital replacement and maintenance of the facility. Scott County will remit annually $69,231.63 or 26 percent of its share, based on population, of the total estimated average annualized costs for the first 21 years of the facility operation.
• If the JPA is terminated, and the land and building are to be sold prior to 125 percent of the useful life from the initial date of the JPA, Scott County will receive 26 percent of any remaining proceeds after paying off any state bond proceeds and any other costs.
• The term of the agreement will be for ten years, with ten-year options to renew.
• Dakota and Scott counties will both promote and encourage participation at the new facility.
• The agreement can be terminated if adequate funding is not obtained from the Minnesota Legislature, Minnesota agencies, or other funding sources.
Dakota County is in the process of securing property for this facility in Lakeville, MN, located in Dakota County and near the Scott County eastern border. Dakota County, with the support of Scott County, will pursue $8 million in additional state bonding in 2024 for Phase II for the construction of a new facility.
The Scott County Board of Commissioners approved the JPA on January 16, 2024 on condition the term is edited to include an option to renew every 10 years instead of a single ten-year renewal. The attached JPA includes this edit.
RECOMMENDATION
recommendation
Staff recommends the Dakota County Board of Commissioners enter into a JPA with Scott County for the design and construction of the Dakota-Scott Regional Household Hazardous Waste Collection and Recycling Facility (Attachment: Dakota-Scott JPA).
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EXPLANATION OF FISCAL/FTE IMPACTS
The proposed Dakota-Scott Regional Household Hazardous Waste and Recycling Facility is currently estimated at $24 million for the property and construction. Total state bonding is expected to be $10 million, with $2 million awarded in 2021 and an additional $8 million requested in the 2024 Minnesota legislature. The remaining project cost will be shared between Dakota and Scott Counties based on population, as noted in the JPA.
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, by Resolution No. 18-493 (September 18, 2018), the Dakota County Solid Waste Master Plan (Plan) was adopted; and
WHEREAS, the Plan supports the Dakota County Board of Commissioners’ desire to remove household hazardous waste (HHW) from the solid waste stream because of health, safety, and environmental concerns; and
WHEREAS, Dakota and Scott Counties desire to partner to build the Dakota-Scott Regional HHW and Recycling Facility that will accept household hazardous waste and traditional and non-traditional recyclables and therefore increase proper management of solid waste and increase recycling in both Counties and prolong the life of the two current facilities by stabilizing growth at those sites with the addition of a second facility; and
WHEREAS, by Resolution No. 21-419 (August 24, 2021), the Dakota County Board authorized submittal of the Minnesota Pollution Control Agency’s (MPCA) Solid Waste Capital Assistance Program Application for a Regional HHW and Recycling Center; and
WHEREAS, the State of Minnesota awarded $2 million in bond funds for a Dakota-Scott Regional HHW and Recycling Facility; and
WHEREAS, Dakota and Scott counties will contribute the remaining capital funds based on each county's population percentage in the 2022 estimates from the Metropolitan Council, with Dakota County's contribution at 74 percent and Scott County's 26 percent; and
WHEREAS, Dakota County shall be responsible for the property search, design, and construction of the Regional HHW and Recycling Facility in consultation with Scott County; and
WHEREAS, Dakota County shall be responsible for administering and operating the Regional HHW and Recycling Facility, and Scott County will reimburse Dakota County for a portion of the operation and administration through a reciprocal use agreement; and
WHEREAS, Dakota County will manage the capital replacement and maintenance of the Regional HHW and Recycling Facility, and Scott County will provide its share of $69,231.63 annually; and
WHEREAS, if the joint powers agreement is terminated, and the land and building are to be sold prior to 125 percent of its useful life from the initial effective date of the JPA, Scott County would receive 26 percent of the remaining proceeds after paying off the state bond proceeds and any other costs.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Manager to execute a joint powers agreement with Scott County for a Dakota-Scott Regional Household Hazardous Waste and Recycling Facility through December 31, 2033, with 10-year options to renew, substantially as presented to the Physical Development Committee of the Whole on January 9, 2024, subject to approval by the County Attorney’s Office as to form.
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PREVIOUS BOARD ACTION
18-493; 9/18/18
21-419; 8/24/21
ATTACHMENTS
Attachment: Dakota-Scott JPA HHW & Recycling Facility
BOARD GOALS
☒ A Great Place to Live ☒ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☐ Discuss ☐ Involve ☒ N/A
CONTACT
Department Head: Nikki Stewart
Author: Nikki Stewart