Loading...
HomeMy WebLinkAboutVIII-08 Approve Collection Rate Increase for Tennis Sanitation City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: November 3, 2025 Item: Residential Solid Waste and Recycling Contract Council Action Requested: Approve residential solid waste/recycling rate increases, including compost program. Background Information: Following a 2018 RFP, the City entered a three-year contract (2019-2021) with Tennis Sanitation for residential solid waste and recycling collection. The contract includes a provision allowing up to two additional three-year extensions (2022-2024 and 2025-2027). In November 2021, the City Council approved the first extension (2022-2024). Their proposed rate increases were submitted October 14. Based on increased tipping fees at Red Wing, increasing fuel and operation costs, and decline in recycling markets, Tennis proposes an increase of $1.60/month ($4.80/quarter) plus tax to each household. Additionally, they propose a $5 annual increase for the compost program, $0.50 increase for “per bag” compost service, and $5 per cubic yard for construction waste drop-off. The last increase was $1.20/month for residential service and $5 annual increase for the compost program for 2024. Financial Impact: n.a. Committee Discussion: n.a. Attachment: 10/14/2025 Letter from Tennis Sanitation VIII-08 October 14, 2025 Good Afternoon Dan, I am reaching out regarding the proposed 2026 residential trash and recycling rates for the City of Hastings. The City of Red Wing, where residential trash from Hastings is disposed of, has notified us of a $5.00 per ton tipping fee increase effective January 1, 2026. In addition to this, we continue to experience declining recycling market values along with rising fuel and operational costs. At this time, we are proposing the following rate adjustments effective January 1, 2026: • Residential service: $1.60 per month increase ($4.80 per quarterly billing) plus applicable tax per household. • Compost program: Annual fee increase of $5.00 (from $85.00 to $90.00). • On-call compost service: Increase to $5.50 per bag. • Drop-off site service: Construction material disposal fee increase from $25 to $30 per cubic yard. Below are the proposed monthly rates for 2026, including the increase: Cart Size Solid Waste Recycling Tax Total Per Month 95 Gallon $14.68 $10.00 $1.43 $26.11 65 Gallon $13.23 $10.00 $1.29 $24.52 35 Gallon $11.48 $10.00 $1.12 $22.60 Currently, we are unable to project rates for 2027, as the City of Red Wing provides annual rate notifications to haulers—typically no earlier than October 31 for the upcoming year. We received preliminary notice of the 2026 increase last week and promptly reviewed our cost structure to provide you with the proposed rates above. Once these rates are approved, we will prepare the 2026 Solid Waste Guide for distribution to residents in December or January. Please feel free to reach out with any questions or if you would like to discuss this proposal further. Sincerely, Gregory Tennis William Tennis Gregory Tennis and William Tennis 720 4th St., St. Paul Park, MN 55071 Tel (651) 459-1887 Fax (651) 459-7412 Support@tennissanitation.com www.tennissanitation.com VIII-08