HomeMy WebLinkAbout7.a. Recycling Grant Discussion � �
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TO WHOM IT MAY CONCERN: (A}The newapa�er hos wmpiied wiM�a�l oF!1�roqai�eme�Ms cantih�tF��ua�fic�ia�w a(egd
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dinatx�,afFeetln�three sectiotes ef that�-
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tUetinitia�sl are definitio�tor the t�loaeing
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tk�e cmtstruMinn of accessory buiic�t�gs on p�+p.
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teen�'the Zoning Qrdinance to be canittered � �- � �,, � �.�,�„��
includes the additi�of a procedute to eppeai first pubNsl�od oa Tha�rado�r,the_I!�!—doY ,
Plauning Gommission�iona on Site Plan
liev'1�ws�Bu[lding Permit A�ications ta
the City Council. �
S�xh persoe�sa deslre to be heard wit6 19 `-� i , m�d was N�eroaka priMed aml P�blish�d � every Tha►sday to aed iMd�ng
nference to the above item aeili be heard at
this meeting.
Dated this 7th day ot November,19&9.
�Steph�n Ji�le�,dmimstreWr/Clerk j�q�p�,the de1�of ,�4 f
nakota CountY,Minnesota
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Agenda Item 7a.
TO: MAYOR, C1TY C(}UNCIL, CITY AUMINISTRAT�R
FR(}M: D�A1�F JOHNSON, DIRECTOR OF COMMUNiTY DEVELOPMENT
UATE: NOVEMBER 17, 1989 ,
SUBJc NOVEMBER 21, 1989 AGENDA ITEM 7a.
KNUTSON RUBBISH SERVICE, LNC. RECYCLING GItANT
The Ciry h�s been approached by Knutson Rubbish Service, Inc. (KRSI) ta consider
sponsarship af a recycling grant application to the Metropolitan Councit. Tbe ptupose of
the grant is to subsidize the acquisition of equipment, n�cessary to the operadon of a
private Materials Recovery Facility (MRF). The rote of the "local sponsor"is to acf as Ehe
actual grantee of lhe program and assume ownership of the equipment for a minimum
three-year period. The grant program covers a m�imum request of $340,000, or SG
percenl. The local sponsor is required to match the grant amount from Met CounciL
We have received a legal opuuon Ehat the City has no authority to provide the moaey for
a local match, even if it were a loan to a third party, such as KRS[. The CiCy and KRSI
could enter into an agreement,however,whereby KRSI would proviJe the required funding
and the City would act as the local sponsor. The City vc�auld stiil own the equipment far
three years, as required by the grant program. Tbe City would likely relinquish its interc;st
in thc equipment to KRSI aC the end of the grant period.
As part of the grant program ini[iative, KFtSI proposes to conslrucE a new recycling facility
in Rc�sentount. The MR�, consisting of approximately 15,000 square feet ux area, would
- be built solely and specifically for recycling purposes. Future plans include the construction
of a separate facility for the company's waste hauling activities.
KRSI is currently negotiating the purchase of property along 16(}ch Street, adjacent to AP►A
Auto Salvage. The Planning Cammission briefly discussed the potential use af this site, at
the November 14, 1989 Regular Meetin�, and gave conceptual approval to the land use.
The Rosemount HRA briefly discussed the potential of the projecc and future development
in the area. The concept for ta�c increment financing is being pursued, with respect to the
feasibility of e�ctending public water to lhe area for fire suppression systems.
Enclosed are copies of a letter from Larry Knutson, draft application to Mel Council and
aciclitional supparting information. The materials are intended to introduce ihis matter to
the Council. There is no request for aclion al this time. Representatives from KRSI will
be at the meeting ta discuss this in further detaii. If the Councii is interested in pursuing
the project, we'll have to act formally pri�r to �he December 29th application deadline.
While there are a number of questians to be answered and dttails to be worked out, the
iniliaiive is an exCiting one. �oth KRSI and the Gity have an opportunity to continue the
pursuit of demonstrated commitrnents to wasle reduction o�jec[ives.
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RUB6ISH SE�YICE � 1�12d CHIPPENDAI.E AVE., Rf)SEAIOUNT, MN�,SUbn (622)4�3-2��4
November 13, 1989
Mr. Dean Johnson .
Di rector of Corr�nun i ty Devei npment
City af Rosemount
2875 145th Street West
Rasemount, Minnesota 55068
Dear Mr. Johnson:
As you know, the cost of waste disposal has increased dramatieally in
the past few years and is not expected to stop anytime soon. Waste dis-
posai fees at the Pine Bend Landfill will increase again in January to
$53.00 per ton. By the time the Dakota County incinerator becames opera-
tional in 1993, we can expect the disposal fee to reach $T00.00 per ton.
We at Knutson are concerned about the impact of increasing d�sposal
costs on the price paid for callection services in the City of Rosemount
and elsewhere. During the past three years, we have attempted t� reduce
rising disposal costs thraugh recycling. We now intend ta further address
this issue through a new aggressive recycling alternative.
Based upon studies conducted during the past year, we fe�el we can
significantly increase recycling through construction af a Materfal
Recavery Facility (MRF). The MRF would be capable of processing up to 40
tons per day of commercial and residential recyclables collected from
current Knutson custamers, including the citizens of Rosemount. The
facility wi11 cost approximately $800,000 and will employ up to ten
peaple. We expect the facility to reduce disposal costs by $30 to $60 per
ton of material recycled and increase quantities recycled by over 150�.
As we move ahead with facility implementation, we wouid like ta in-
clude the City of Rosemount in a coaperative development program. Such a
program would be mutually beneficial to both the citizens of Rasemount and
Knutson: Potential cooperative measures could include City sponsarship af
a grant application to the Metropolitan Gouncil and other alternatives
included as attachments.
� • �
Mr. Dean Johnson
November I3, 1989
Page Two
At Knutson, we believe the quest for excellence gives dignity to a
person, character to a business, and most impartantly, satisfaction to our
customers. Thraugh this project, our quest will be enhanced.
Please feel free to contact me regarding any of the information
contairted in this packet. We look forward to continuing our relationship
in this timely and important pro,ject.
S' er ly, � ,
. / ���--��-- ..
L�l s �,,��//.�-,,''-Y'1
Larry t�tson
President
Enclosures
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; }
, KNUTSON PROJfCT GBALS
• To construct an MRF and increase recycling quantities from 2,340
TPY to over 5,504 TPY (150% increase).
• To expand the list of reeyclable materials collected by Knutson
. from six to at least ten.
� To significantly expand commercial recycling services to include
different materials and new customers.
• To provide greater recyclable colTection flexibility, since the
proposed MRF wi11 be able to accept comingled recyElab]e loads.
• To increase flexibility in the tCMA recycling system.
s To reduce the disposal cost through recycling by 30 to 74 $/ton.
. � • �
cit�r oF aosEr�ou�T/�ursoN
COOPERATIVE PRUGRAM OPTIONS
• ADJUS7MENT OF LAND U5E CLASSIFTCATiON
Backg;round
The proposed facility site, rrear 16Oth Street and Biscayne
Avenue, is presently zoned far agricultural use.
Option
We ask that the City reclassify the site for industr�al use.
Bene t
Knutson will be able to provide the most cost-effective service
to the citizens of Rasemount through maximum recycling.
• CITY SPONSORSHIP Of A METROPOLITAN COUNCIL GRANT APPLICATION
Backqround
The Metropolitan Cauncil wi11 pay up to 509'0 of facility �quipment
casts, or approximately �150,800. However, the Council requires that
a municipality or Caunty act as sponsor. .
rthe sponsar is required ta provide a cash match to the Council
Grant and must own the equipment for a period of three years. The
sponsor is allowed a great deal of flexib�lity recovering funds from
the pro�ect developer. Grant applications are due to the Council by
December 29, 1989.
0 'on
Should the City wish ta sponsor a grant application for the
propased facility, repayment by Knutson could be made through the
following alternatives:
1} Partial repayment made by Oakota County. Under this option, na
repayment wauld be made by Knutson. However, up to 240� of the
matching grant could be recovered through available County
programs, such as the Cammunity Landfill Abatement Program.
2) Deferred repayment made by Knutson to the City of Rosemount at a
negotiable interest rate. Under this option, the City w�u1d
recover matching funds from two to three years after application
aPProval .
3) Annual repayment by Knutson ove�^ a three year period at a
negotiable interest rate. Under this opt�on, the City would
receive three equal payments from Knutson.
� �
Benefits
Through grant application approval , Knutson will be able to reduce
the cast of facility operation by up to $5/ton. Should Option 1 be
selected for repayment, operating costs would be reduce by $10/ton.
fihese cost reductions would allow Knutson to furth�r expand the types
and quantities of materials recycled, 7he overall result would be to
further reduce materials landfilled by the citizens of Rosemount
ecanomicaily and efficiently. �
� FACILITY FINANGING TWROUGH INDUSTRIAL DEVELOPMENT BOND5
6ackgrout�d
Knutson is committed to securing capital funding for the facility
through private investment sources.
tion
Public financing of the faeility could be used to reduce the cost
of debt.
:enefits
The cost savings from recycling would be enhanced. Also, Knutson
would be able to maintain aur present ability to finance other waste
� abatement activities.
� �
BENEFITS TO THE
CITY OF ROSEMQUNT
� • TWf FUTURE COST OF WASTE COLLECTION SERYICES TO ROSEMOUNT CITtZENS
WILL BE MINIMIZED
For each ton of material recycled, citizens and businesses wili
pay up to �50 less than the cast of �andfill disposal or incin-
eration.
i THE CITY MAY RECEIVE INCREASE R�CYCLING FUNDS FROM DAKQ7A COUNTY
The County will reimburse to the City a portion af recycling
program expenses. The amount reimbursed is based upon abate-
ment quantities and the program cost.
• ADniTIONAL JOBS WILL BE CREA7ED IN THE CITY
The proposed facility wfll in�tially employ up to ten people.
We also expect to expand aur collection crew to meet recycling
demand.
s TN� CITY TAX BASE WILL BE EXPANDED
The facility value wi11 be approximately $750,000. A1so, util -
ity development at the proposed site may enc�urage other busi-
nesses to locat� in the area.
• INCREASED RECYCLiNG WILL HEtP THE CITY M�ET THE "SCORE" BILL GOALS
During the recent special session, the State legislature enacted
a recycling goal of 35?'o for metro area communities. The pro-
posed facility will provide the City with the ability to meet
this qoal .
i CITY PAR7ICIPATION IN TNE PROJECT WILL ENNANC� PUBLIC RELATIONS
The proposed facility will help the City move to the forefront
of landfill abatement. As a result, the City will profit from
the positive publicity associated with maximum recycling.
• PUBLIC AWARENESS Of TNE ENVIRONMENTA! ANO ECONOMIC BENEFITS OF
RECYGLING WiLL INCREASE
Knutson is co�nitted to public educatian via plant tours, mail- '
ings and the potential development of a recyclable buy-back
center.
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�,�,���� �
METROPOLITAN LANI3FILL ABATEMENT FtJND
CAPITAL ASSI52ANCE 6RANT
PROPOSAL COV�R SHE�T
FY89
1 . Naine of Pro3ect Spansar: i v nf R�Semount
Mailing address: p � BQ� 510 - ?87� lg5th �treet West
Rosep�ou�,t MN 55t}68 _,,,, �
2. IRS Tax-Exempt Nwnber:
3. Pro,ject director/oontact person naa�es '
Title: �'honet
Addresss .�
4. Authorized Official aame: -
Title: Phones
- -
Addresss _
5. Third Party information, srhen ap-plieablei
a? Name: Knutson Rubbish Seruices Inc.
b) Address: 5 0, �pAen a e venue -__
Rosemaunt MN 55068
c) Authoriz�d represantatives � � arrv �n�'kson „
Titles President _Phonez -
d) Minnesota Tax ID nuc�ber:
6. PROPOSAL SUMMARY
Briefly summarize the ma�or benefits and gc�als assoeiated with the pro�ect.
7. Amou�t of Grant Request �
Amount af Local Cash Match �
Amount oP Other Costs �
TOTAL PROJECT COST �
9
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CAPITAL ASSISmANCE GRANT PROGRAM
PROJECT SPONS�R�S CE�TIFrCATION
SE IT CERTIFIED THAT
1} ' � . will aet as the sponsor
(Pro�eet Sponsar
and grantee for the landfill abatement Capitgl Aasistanoe grant to be condueted
bYt 2) . •
when applicable, implementing t ird party and authorized represerrtative}
, during trie period from 3) �
estimat�d start date-aoquisitioa
througb �� ' .
estimated end date-three years trom aoquisitiot� date
5)
Name and title of authorizad offioiai
is hereby autbori�ed to submit a grant proposal and request t'uading for this
pro�ect to the t�Setropolitan Counall and to exeoute such agreements and prepare
documents as neeessary to accept tUnds and lmplement the pro�ect on behalf oF
the Pro�ect Sponsor.
This certification certi.fies the fallowing:
1. Trie Pro�ect Sponsor is an eligible applicant for the Capital Assistanee
Grant Pragram.
2. The pro�act will further the go�ls of the Metropalitan Cauncil's So� lid
Wasta Management DeveloP�er�t GuidelPolioy Plan.
3. Th� pro�eot is tn aonformance with the approved Solid Was�e Manag�
t�laster Plar� for the county in whioh the pro�ect wiil oacur•
4. The Pro�ect Sponsor agrees to �omply with all applicable iaws relating to
nondiscrimination and affirmative aetion.
5. Tha Pro�ect• Sponsor w111 provide all local and stiate permits, lieenses and
authori�ations neoessary for the pro,�ect.
6. Tha Pro�ect Sponsor is current in all tax obligations to local, state or
federal governments.
7• Acknowledgment wi12 be made for the Counail far its grant assistance ori all
promotional materials� reparts and publications relating to trie pra�ect during
the grant period.
$. The Pro�eot Sponsor Will provide all docwnentatian and reports required by
the Gounoil during the grant period.
9. The proposal is aomplete and all information provided in the praposal is
true and aeourate.
I HEREBY CERTIFY THIS CER'�IFtCATION: �)
(Date Pormally approved)
7) �D�te r
tSignatur� af Authorized Offioiai) -
8? Date� ��
(Signature of Pro�ect DireetorJContact Person
9) """"_
tSignature nf suthorized third party representative na��
10
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SECTION A. IN�ORt9ATI0N ABOUT TNE PROJECT SPON�OR
l . Describe the Capital Assistance Grant praje�t sponsor. For example,
is the project sponsar more than one Metropolitan County and what is
the total population affected?
RESPONSE
Ramsev, Washington and Dakota County(iesj
Rosemount, Apple Valley, Burnsville, Ea�an,
Inver Grove Heiqhts. Lakeville, Mendota Weights
and White Bear Lake. Municipaiity(ies)
�500 + 33.622 + 50,000 + 45,000 + Z1,477 t
22.707 + 8,834 + 24,891 � 214.031 Population
The pro�ect sponsor is the City of Rosemount. Located in Dakata
County, the City has been home to Knutson Rubbish Service, Inc. for
over 11 years. With a current population of approximately 1,500,
Rosemount has grown nearly 400�6 over the last 30 years.
Recyclab7es collection in the City is pravided by Knutson, while
residential and commercial waste collection is Yeft to the chofice of
each individual business.
While the City of Rosemount is the sponsor, the proposed project will
impact residents and businesses in a number of communities in Dakota
County as well as a portion of Ramsey County. The tatal affected
population wi1T be approximately 17,Q0a hflusehalds and 1,000 commer-
cial waste generators throughout the same region.
2. Describe how the pro,�ect sponsor wi11 administer and manage the
project and who will be responsible for preparing written financial
and progress reports.
RESPONSE
Written reports shall be prepared by Knutson staff and submitted to
the City Administrator for review. The City shall be able to include
additional co�nentary before submission to the Metropolitan Cauncil .
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SECTION B. INFORMATION ABOl1T THE THIRD PARTY
1 . Describe the business, nonprofit organization, public institution or
solid waste management district, which has applied to the above for
project sponsorship. Frovide sufficient detail an the nature of the
third party's primary mission and purpose, how long in operation,
etc.
RESPONSE .
Knutson Rubbish Service, Inc, has operated in the Metropo]itan area
for 27 years. During this time Knutson has pravided waste and recy-
clable collectian services to residential , commercial and institu-
tional clientele.
In addition, Knutson has retained CRS, Inc. to provide technica] and
professional services in the development and implementatian of the
MRF. Since its establishment in 1975, CRS has specialized in the
recovery of resources from wastes. The company's philosophy toward
alternatives to land disposal have remained unchanged. Rather than
emphasizing one solution versus anather, members of CRS have main-
tained the highest 1eve1 of objectivity in seeking and proposing the
best alternative, or combination of alternatives, for its clients.
Members of the company have been participating in projects involving
material recovery and integration of various sub-systems in waste
management since the 1950's.
CRS has conducted more than three hundred projects in the field of
waste management since its faunding. This experience provides their
personnel with a breadth of understandit�g that wi11 enable CRS to
provide a thorough and well-thought-out design �nd implementation.
A project of particular relevance to the proposed work is one current-
ly being conducted by CRS for Swift County, Minnesata. The three
phase pro�ect lnvolves: 1) conduct of a preliminary engineer design
and feasibiiity study; 2) preparation of a grant application to the
Office of Waste Management; and 3) final design and management of the
construction and operation of the facility. �unding has been granted
and CRS is proceeding with final design and implementation of a curb-
side collection program, recycling/camposting facility, household
hazardous waste drop-off center, and an environmental monitoring
pragram.
2. Describe the business, nonprofit organization, public institution or
solid waste management district's past and ongoing experience in
landfill abatement or closely related activities.
RESPONSE
Knutson has five years experience with fa11 leaf coll�ctions, and one
and one-half years of spring and summer grass collections in the City
of White 6ear Lake. In addition, Knutson has provided one and one-
half years of grass and leaf callections in cities within DakQta
County.
� �
Knutson has faur y�ars of cardboard recycling experience and hauls
aver 900 tons of cardboard per year. In addition, Knutsan collected
over 2,300 tons of residential recyclables during FY 1989.
Knutson provides weekly curbside recycling collection for homeownet^s
and businesses in all af its services areas, operates two drop-off
centers, one in Rosemount and one in White Bear Lake, and has par-
ticipated in several h�usehold hazardous waste programs.
3. Describe the business, nonprofit organization, public institution or
solid waste management district's administrative and management
experiencQ in supervising staff, managing contracts and in preparing
written financia] and progress reports.
RESPONSE
Knutson staff manage 45 employees and has had a contract with the
City of White Bear Lake since July 1, 1984. Since impJementation of
this cantract, Knutson has prepared monthly pragress reports. Knut-
son has a-lso completed three successful grant projects during FY87
with the Metropolitan Council .
• + � �
SECTION C. INFORMATION ABOUT TNE PROJECT
1 . Summarize the Capital Assistance Project, including type and number
af landfill abatement machinery or equipment to be purchased, approxi-
mate purchase and acquisition dates, potential abatement results,
creation of new markets or expansion af existing markets and other
information pertinent to the project. A marketing plan should also
be attached. .
RESPONSE
Knutson proposes ta construct and aperate a Material Recavery
Facility (MRF) in the Gity of Rosemount. 7he MRF would initially
accept car�ercial and residential recyclables collected by Knutsan
from existing routes. Faci�ity capaci�y will be 40 TPD, with
potential for expansion.
The proposed abatement praject wi11 have a positiue impact upon both
commercial and residential recycling in the 1'win Cities Metropolitan
Area (TGMA). 5pecifically, the proposed facility will :
o allow Knutson to expand the types of materials currently
collected from residential customers;
o allaw Knutson to significantly expand commercial recycling
services to include dafferent materials and new custamers;. -
o provide greater recyclable co3lection flexibility, since the
proposed MRF wi11 be able to aceept eomingled and mod�rately
contaminated recyclable laads;
o reduce the waiting period at the weigh scale used by Qakota
County for recyclables data collection; and
o increase flexibili�y in the TCMA recycling system.
The proposed MRF will increase the incentive for Knutson to expand
recycling since the facility will be tailored directly to the needs
of its clientele and will provide Knutson with a cost-effective and
integrated recycling system where avoided landfill collection and
� disposal costs can be directly realized.
MRF Description
The proposed MRF is designed to accammodate bath comingled and
source separated recyclables from co�nercial , residential and
institutional waste generation sectors. The MRF is also designed
for the delivery of recyclables by end-dump and side-dump
collection vehicles as well as from conventional packer trucks. -
Based upon preliminary design estimates, the facility will have
an enclosed area of 14,400 ft2. A facilfty layout is included ,
as Figure 1. 'I
. . . .. . . .. . . . . . . . . . ��M
i: 180� .
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• • � �
Landfill abatement equipment to be purchased is indicated �n
Table 1 . 7he equipment has been selected based upon the
following parameters: materials to be processed; expected
throughput; and market specifications. Each of these parameters
are discussed in greater detail later in this section. A
compilatian of price quotes and technical specifications received
to date is included as Appendix B.
Recvclable Collectian Impacts .
Through construction of a MRF, Knutson will be able to modify and
expand the recyclable collection services offered to its c�ien-
tele.
The proposed MRF will accommodate both source-separated and co-
mingled recyclables. As community recycling programs mature,
irrdividual cities may wish to increase participatian or reduee
scavenging. Comingled collection can accommodate each of these
cancerns.
Cor�nercial recyclable collection will alsa be enhanced thraugh
the comingled alternative. Knutson has perfarmed visual waste
surveys of ail co�nercial customers. As a result, Knutson has
tarqeted numerous clients that generate mainly recyclable waste.
While certain customers have a�ready initiated source separation
programs, many additional customers will be abie to recycle with
a minimum of separation once the MRF is on-llne since sume resi-
due will be acceptable.
The proposed MRf wi11 alsa allaw Knutson to increase the number
af material types collected from commercial and residential
customers. Plastics, tin cans and a wide variety of paper grades
that are either currently not accepted at the Dakota Caunty
facility or are not economically feasible to coilect at present
will be accepted at the proposed MRF.
Landfill Abatement Impacts
The proposed pro,�ect wi1-1 divert approximately 5,50Q TFY of
recyclables from landfill disposal or incineration. Table 2
presents a quantitative breakdown {by material} of Knutson`s
existing recycling programs and an estimate of the future
recycling system. ;
Markets Creation and Expansion
The praposed MRF wi11 allow �nutson to create and expand market
alternatives over thase presently availabfie through County pr�-
grams. Untique markets Mave already been identified for many
materials including PVC films, tin cans, mixed and white ledger,
camputer printouts, mixed low-grade paper and different mix$s of
recyclable plastics. There wi11 be a significant incentive far
Knutson to continue to identify r�ew markets to further abate land-
fill dispasal and hence, mitigate costs to TCMA waste generators.
. Y .• . . � . � � � . � .
" Council directed sta�
Red Ribbon Cam ai tO CO��'�nu� to monitor s
P gn for City inuolvement ��al events such as
the
MOTION by Wipp�rmann to adjourn. Second 'by Walsh.
Ayesr 5. N�ys; p,
Respectfully submitted,
Donna Quintus
ATTEST: R�cording Secretary
Stephan Jilk
Administrator/Clerk
Published this
un_Y..__T�ib jne --_."_ day of
. �989 in ��?�k�
. � .
Table 1. Knutson La�ndfill Abatement Equipment list
Equipment Item Processed Mat�rfals
Horizontal Baler Paper, Corrugated, Plastic Films
Can Densifier � Metal Containers
G1ass Crusher Glass Containers
Plastics Granulator Plastic containers
Shredder & Newspaper
Mechanical Baler
Sorting Canveyor Paper, Container$
Plastics Collection Plastics
C�ntainers
Bobcat Unprocessed Recyclables, Residue
Forklift Processed Recyclab3es
Containers All Materials
' � �
7able 2, Current and Projected Landfilf '
Abatement(Tons) '
RECYCLABLE$C�LLECTE FUTURE COLLECTION
Sept 1988 - Aug 1989 Projected
MATERIAL RESIDENTIAL COMMERCtA RESIDENTIAL CpMMERCIAL
PAP�R
Newspaper 1,281 0 2,165 0
Corrugated 0 575 50 2,000
High Grade 0 25 0 125
,. , ;
PAPER TOTAL :.... 1,2$1 i600:: ;::..... 2�21.5 .2�125
PLpSI'tCS
HDPE 0 0 135 0
P ET 0 0 25 0
I.DPE 0 0 0 0
PVC 0 0 0 240
;: _ .
PLASTICS 70TAL. : ;0 0< .:..,... 1�0 . ...::24�
__ .
METALS
Bi-Metai UBC 30 0 45 5
Aluminum UBC 25 11 45 5
Tin Cans 0 0 225 0
Other fl 0 0 0
T07AL METALS ;: 55 . . `:: 0:1 ':: . ,,::. 1�>
, .
315
GLASS > : 287 ;:; 82;' 450 . . .:.: 120,
, .; : , :..
GRAND TOTAL 1,623 682 3,i40 2,495
. � �
Knutson is also working with the C�ty of Rasemount and private
newspaper publishers in the TCMA to develop an old newspaper '
recycling agreement with FSC in A1sip, illinais. FSC wi11 accept
ald newsprint in quantities equal to a commitment to purchase a
similar quantity of new recycled content material .
While the counties and the Metropolitan Council work with large
publishers such as the Star Tribune and the Pioneer Press,
Knutsan has an incentive to iaclude s�naller companies in a
recycled stock program. This type of market expansion will
provide flexibility and stability in the 7CMA recycling system
while expanding the use of recycled-content materials.
A detailed market analysis is included as Attachment A.
Pro.iect Schedul e
2. After the minimum three year period usage of the machinery or equip-
ment for landfill abatement activities, is cantinuation af the proj-,
ect anticipated?
RESPONSE
The landfill abatement equipment is anticipated ta be used for at
least seven years. The proposed MRF will operate for at least l5
years.
3. Where will the project activities occur? Provide as much deta�il as
possible, including the names af caunties or m�nicipalities in the
Metropolitan Area that will be directly affected by the capital
purchase.
RE5PQNSE ,
The facility will be located in Rosemaunt, Minnesota oa land aiready
owned by Knutson near 160th Street and Biscayne Avenue.
4. What is the approximate �iate of acquisition of the machinery or
equipment? Capital Assjstance Grants will be manitored for three
years from acquisition date.
RESPONSE
Equipment wi11 be purchased in March or Apri1 , 1990.` A complete .
project schedule is shown in Figure 2.
5. What are the anticipated or projected landfill abatement results from
the purchase of the machinery or equipment? These results shauld be
measurable �nd included on the annual report form.
a) Materiais to be abated: See Tables 2 and 3.
b) Generators to be served: See Table 3.
� �
Figure 2. Project Schedule
Task Nov Oec Jan Feb Mar Apr May Jun Jut Rug Sep Oct
1 Fina1 Design Q-----]
2 investment Oocument 0------------]
3 Final Bid Specs 0--------------]
4 Met Council Grant App 0-----*-----J
5 Procurement 0----------)
6 Construction Management 0------------------------]
7 Operatar Training 0----}
, . � �
C. iNFORMATION RBOUT THE PROJECT (continued)
6. What are the major goals af the pro�ect?
RESPONSE
The major goals of the proposed project are as follaws:
o To construct a MRF that includes the equipment listed in Table 1,
and utilize the facility to increase recycling quantities from
2,300 TPY to over 5,500 TPY (150'�o increase) . .
a Expand the list of recyclable materials callected from six to at
least ten (see Table 2) .
o Increase commercial recycling quantities through comingled collec-
tion and processing.
o Reduce the dispasal cost through recycljng by 30 to 70 $/ton.
7. Each project sponsor wi11 be required to complete and submft a
written annual report and final narrative report. A farm wi11 be`
provided for the annual report. It wi11 address achievement af goals
as listed in questian #6. How wi11 the project sponsor measure
progress in meeting the stated gaals? What records or other methods
will be developed and used to support and document the results of the
proposed project? What types of ongaing evaluation will be used to
determine the success of the project?
RE5PONSE
All mater�als delivered to the MRF wj11 be weighed and data wi11 be
recorded in � computer database along with the material source. Pro-
cessed recyclables and residue shall alsa be weighed and recorded
before leaving the site.
Knutson will also maintain separate financial records for the MRf so
that econamic perfarmance of the facility can also be measured in
terms of capita� costs, operating costs and throughput.
� �
8. Capital Assistance Grant Work Program
ACTIVITYjTASK PERSON/POSITION COMPLETION TIME .
Final Facility CRS December 15, 1989
�esign
Capital Acquisition Knutson Management, february 1, 1990
CR5
MPCA Solid Waste Permjt CRS Apri1 1, 1990
General Contractor- Knutsnn Manaqement, April 1, 1990
Canstruction Agreement CRS
: Equipment Procurement CRS Aprii l, 1990
Construction Management CRS September I, i990
,
0 erator Trainin CRS October 1, 1990
P 9
Commercial Account Knutson Management October 1, 1990
Adjustment
Facility Operation Knutson Recycling Ongoing
Manager
Financial Management Knutson Fin�ncial Ongoing
Off�cer
, � �
C. INFORMRTION ABOUT 7H£ PROJECT (continuedj
9. Will the Capital Assistance project require the approval af any lacal
ar state permits or licenses, prepa�ration of an �nvironmental
Assessment or Impact Statement, or other �conditions which must be met
in order to conduct the project? If yes, describe what has or will
be dane to obtain the necessary approvals for the project.
RESP4NSE
Minnesota Pollutian Control Agency solfd waste permit and City of
�osemount building permit are the two ma�or approvals needed.
10. How will the Capital Assistance Project be publieized?
RESPONSE
The project will be publicized through facilfty taurs, inserts
included in customer invoices and through the media. .
11 . List the employees, staff positions or consultants that will be
responsible for completion of the praject work program. Resumes or
position deseriptions of key individuals should be attached.
RESPONSE
Resumes and positinn descriptions of key individuals are included as
Appendix C.
12. Describe the role of any board members, corr�nittees, or valunteers
that wi11 be involved in conducting the project or providing
oversight.
a � • i
SECTION D. INFORMATIQN ABOUT PRUJECT FINRNCES
1 . Itemize the Capital Assistance Grant Pro�ect budget. All project
sponsors are required to use the budget format provided below. The
budget must shaw haw the grant funds and �cash match wi11 be used for
the purchase of landfill abatement machinery or equipment.
Total Project tocal Match Capital Assistance
Budget Item Cost Cash Grant
Equipment Purchase
Machinery Purchase
Freight
aPPlicable Taxes
SU61'OTAI S � �
The foliowing costs are not eligible for grant or match funds, but are
part of the tatal project costs:
Salariesjfringes
Cantracted Labar
Travel Expenses
Printing
Equip/Mach.
Rent/Lease
Other project Costs
SUSTOTAL �
TOTAL $ � �
Anticipated Project Revenues, if any �
_ , � �
2. Itemized Project Costs
Budqet Ttem Amount
project sponsars must provide detail for each budget item included in the
line item budget. Detail would include number of items at per unit cost,
number of haurs at hourly rate, etc.
. � �
3. Cash Matching funds
Source Amount S atus
4. Project costs not covered by the Capital Assistance Grant.
Source maunt 5_tatus
5. Explain hoa� the Capital Assistance Project will be con�inued beyand
the grant period. What �aurces of funds will the praject sponsar use
for continuation of the landfill abatement activities?
6. Explain Mow the Capftal Assistanee Grant will enable the pro�eet
activities to occur, or if they would not otherwise be possib�e.