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Mr. Wozniak advised that the intent would be to build a recycling facility at <br />Newport to sort materials and organics and then evaluate the need for more <br />extensive equipment, its logic and financing as creating a market for recyclables <br />versus the cost of getting rid of those materials, and ultimately reducing overall <br />costs. Mr. Wozniak noted the guiding principles included a plan for the next 20-30 <br />years, building on the current system, while allowing changes to emerge over time <br />by assuring flexibility, managing risks, and revising the viewpoint from "waste," <br />to "resources." <br />Discussion included capacity issues at the local, Minneapolis burner; Minnesota <br />Pollution Control Agency (MPCA) requirements; mixed waste process (MWP); <br />and the benefits and reduced costs if everyone recycled and sorted materials at their <br />source (e.g. residence or business) rather than additional handling at afacility. <br />Regarding current organic recycling efforts, Mr. Wozniak noted Ramsey County's <br />intent to make money available to cities in Ramsey County to expand their organics <br />programs; and current lack of a Roseville yard waste site and ability to accept <br />organics, with the closest site located in Arden Hills and their opting out of organic <br />collections. <br />Member Cihacek clarified the advantages of the potential rebates to haulers to the <br />Newport facility if operated publically versus privately eliminating the current <br />subsidy paid trash vendors to use that site but addressing the higher cost of <br />processing waste at Newport versus landfilling it. Member Cihacek noted, if the <br />County took over ownership, they could dictate costs and require all haulers to use <br />that facility, allowing the potential creation of secondary markets for materials; and <br />noting current profit margins at the Newport Resource Recovery Technologies <br />(RRT) facility as a private entity. <br />At the request of Member Seigler, Mr. Wozniak stated that the RRT was not really <br />interested in selling the facility, but Ramsey and Washington Counties have <br />expressed an interest in purchasing the facility, and hold the right -of -first -refusal to <br />purchase it, with a purchase prices negotiated and arbitrated, with an additional cost <br />for upgrades still being negotiated for the thirty-year old facility. By purchasing <br />the facility, Mr. Wozniak noted the Counties would have more flexibility in <br />materials received and how they're process, more predictable costs with no subsidy <br />required due to the potential authority to direct trash from landfills into recycling <br />or energy production. <br />Mr. Wozniak advised he would keep the PWETC updated as the negotiations <br />continued until the August 27, 2015 Project Board meeting. <br />Chair Stenlund referenced a recent Minneapolis Star/Tribune newspaper article <br />addressing the difficult markets for recyclables at this time due to the China market. <br />Chair Stenlund noted this may be important as the PWETC looks to update their <br />Page 7 of 16 <br />