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Analysis of Processing Residuals <br />The Eureka analysis estimated processing residuals from a national study conducted <br />by Governmental Advisory Associates (GAA) in 2002. The estimates from GAA, as <br />reported by Eureka, stated the average residual rate among the surveyed single-stream <br />programs was 27.2 percent. Eureka further analyzed their pilot results with two <br />alternative definitions of "material loss during processing": <br />^ Without including mixed glass in processing residuals; and <br />^ With mixed glass as processing residuals. <br />The Eureka report states "Eureka Recycling does not consider the use of mixed glass <br />as an aggregate material or daily landfill cover as a recycled material." <br />R.W. Beck conducted a study for the American Forest and Paper Association <br />(AF&PA) in October 2002. The results indicated that single-stream old newspapers <br />(ONP) contained 65 percent more prohibitives when compared with ONP that came <br />from dual-stream programs. Also, the single-stream residential mixed paper (IZMP) <br />had over 1.5 times more prohibitives than the dual-stream RMP. <br />.Iaakko Piiyry Consulting (JPC) and Skumatz Economic Research Associates, <br />Inc. (SERA) prepared a second report for AF&PA in January 2004. The results from <br />this study, as summarized in the executive summary, indicated that "there is an <br />increase of about one to three percentage points in net recycled tonnage after <br />collection and processing" due to single-stream recycling programs. <br />The City of Fridley (Minnesota) amended its recycling contract with Allied <br />Waste/Browning Ferris Industries (BFI) for dual-stream collection in 2004. The <br />contract amendment provides for a revenue share formula that specifies an estimate of <br />non-targeted materials (defined by the City of Fridley and BFI as "trash <br />contamination") as 3.47 percent: <br />The "trash contamination" composition estimate shall be based upon the <br />Contractor's audits from similar residential collection routes. The contractor must <br />provide adequate supporting documentation for the trash contamination estimated <br />figures from similar routes annually to the City, however, the City must approve <br />any change to the trash contamination percentage during the term of this <br />agreement. The City reserves the right to require the Contractor to conduct a <br />City-specific composition analysis, including field sorts, as a future task within <br />the Service Exchange Fund." <br />The City of Shoreview (Minnesota) executed a recycling services contract with <br />Waste Management, Inc. that provided for a maximum processing residuals rate of <br />five percent for the City's then dual-stream program. (The City of Shoreview has <br />since converted to a single-stream method for curbside recyclable materials <br />collection.) The 2001 contract included a number of relevant definitions and service <br />provisions to make this maximum rate as practical as possible. (See Attachment A-3 <br />for details.) <br />si6os A-5 <br />