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April 28, 2005 Page 6 . Without including mixed glass in processing residuals; and . With mixed glass as processing residuals. The Eureka report states: "Eureka Recycling does not consider the use of mixed glass as an aggregate material or daily landfill cover as a recycled material." And... "Mixed color glass is not suitable for marketing to most traditional glass bottle recycling markets, and 99 percent of St. Paul residents surveyed do not consider use of glass in landfill operations (a typical alternative market, along with sandblasting and paving) to be recycling. Therefore, with a lack of suitable markets, mixed color glass is considered a residual in St. Paul's program. This significantly increases the single- stream collection method's materials processing residual rate in this study to 27.2 percent. " R. W. Beck conducted an initial study for the American Forest and Paper Association (AF&PA) in October 2002. The results indicated that single stream old newspapers (ONP) contained a noticeably higher percentage of prohibitives (3.3 percent prohibitives in ONP from single stream vs. 2.0 percent in dual stream systems). Also, the single stream residential mixed paper (RMP) had more prohibitives than dual stream RMP (1.8 percent prohibitives in single stream RMP vs. 1.1 percent in dual stream RMP). Jaakko Piiyry Consulting (JPC) and Skumatz Economic Research Associates, Inc. (SERA) prepared a second report for AF&PA in January 2004. The results from this study, as summarized in the executive summary, indicated that "there is an increase of about one to three percentage points in net recycled tonnage after collection and processing" due to single stream recycling programs. The City of Fridley (Minnesota) recently amended its recycling contract with Allied Waste/Browning Ferris Industries (BFI) for dual stream collection. The contract amendment provides for a revenue share formula that specifies an estimate of non-targeted materials (defined by the City of Fridley and BFI as "trash contamination") as 3.47 percent: The "trash contamination" composition estimate shall be based upon the Contractor's audits from similar residential collection routes. The contractor must provide adequate supporting documentation for the trash contamination estimated figures from similar routes annually to the City, however, the City must approve any change to the trash contamination percentage during the term of this agreement. The City reserves the right to require the Contractor to conduct a City-specific composition analysis, including field sorts, as a future task within the Service Exchange Fund." The City of Shoreview (Minnesota) executed a recycling services contract with Waste Management, Inc. that provides for a maximum processing residuals rate of five percent for 01-00253-10101-01011070001 1 13500 P:\13500 Ramsey Co. 2003\RTA\Roseville\FA\DraftResidualsMemo042805.doc DRAFT