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02-23-21 CCM Workshop (SSOM Composting Options)HUTCHINSON CITY COUNCIL SPECIAL WORKSHOP MEETING MINUTES TUESDAY, FEBRUARY 23, 2021, AT 4:15 P.M. CITY CENTER — COUNCIL CHAMBERS Call to Order — 4:19 p.m. Mayor Gary Forcier called the meeting to order. Members present were Brandon Begnaud, Chad Czmowski and Dave Sebesta. Member absent was Mary Christensen. Others present were Matt Jaunich, City Administrator, Andy Reid, Finance Director, Andy Kosek, Creekside Director, and Craig Coker, Coker Composting & Consulting. DISCUSSION/REVIEW ITEMS 1. Source -Separated Organic Materials Composting Options Craig Coker, Coker Composting & Consulting presented before the group. In August, 2020 Creekside hired Coker Composting & Consulting (CC&C) to evaluate its alternatives, develop capital and operating cost estimates for each alternative and then model outgoing cash flows for each alternative in a Net Present Value (NPV) analysis. Coker reviewed Creekside's current process of handling yard trimmings and source -separated organic materials (SSOM) and issues with the equipment. While Creekside sells its yard waste compost in both bagged and bulk products, the SSOM compos is currently not being sold at market but rather used by other City departments. This is due to high levels of non-compostable contamination not able to be screened out of the finished SSOM product due to the small size of the contaminants. Identification of Alternatives: Alternative I A — Repair existing container system Alternative IB — Replace with new container system Alternative 2A — Replace with different aerated static pile (ASP) system at same capacity (1,500 tons/yr) Alternative 2B — Upgrade to new Covered Aerated Static Pile at expanded capacity (3,000 tons/yr) Alternative 3 — Upgrade to new CASP at expanded capacity (10,000 tons/yr) CapEx 10yr NPV Difference $516K-$618K $5,647,535 3.4% $981K-$1.45 Mil $6,113,085 8.6% $722K-$889K $5,629,421 0% $722K-$889K in 2021 $6,957,149 24% Add'I $315K in 2025-2026 $1.4-$1.5 Mil $8,136,819 49% (composting only) Alternative 4 — Outsource SSOM composting to another permitted facility. (dropped from consideration) Alternative 5 — Outsource all compost production. (dropped from consideration) Mayor Gary Forcier asked what the most common contamination coming through is. Coker replied plastic. Andy Kosek, Creekside Director, concurred; in addition to glass, tin cans, batteries and oil filters. Coker confirmed the average contamination is 1.3% by weight and 1.4% by volume. Zero is almost impossible, but 3% max is the most acceptable. Council member Chad Czmowski asked if there are cameras on haulers to identify the culprits of contamination (most of which are rental tenants). Kosek confirmed there are and they receive a hand -full of reports a day which include photo and address. Unfortunately, contamination can be hidden in the cart and once it's dumped, the contamination is exposed but too late and Creekside spends $15,000 in tip fees getting rid of contamination. Kosek stressed the importance of continuing education and extensive marketing to the residents and maybe an "opt -in" or "sign up" program as per Coker, these are more successful. Coker commented on some successful programs in the state that Creekside could learn from. Kosek added he initially budgeted $2 million to replace what Creekside currently has. City Administrator added this item will be discussed at the council meeting following this workshop. Motion by Czmowski, second by Sebesta, to adjourn at 5:00 p.m. Roll call vote was taken: Begnaud — aye; Czmowski — aye; Sebesta — aye; Forcier — aye. Motion carried unanimously. ATTEST: Gary T. Forcier Mayor Matthew Jaunich City Administrator