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Home My WebLink AboutCouncil Information Memorandum 05-17-2018CITY OF PLYMOUTH COUNCIL INFO MEMO May 17, 2018 EVENTS / MEETINGS Housing & Redevelopment Authority Agenda for May 24th .................................... Page 2 Official City Meeting Calendars .................................................................... Page 3 Tentative List of Agenda Items ..................................................................... Page 6 CORRESPONDENCE Preliminary Population and Household Estimates from the Metropolitan Council .......... Page 9 Police K9 Unit Earns Top Honors during Statewide Narcotics Certification ................ Page 13 City Accepting Applications for Public Safety Citizens Academy ........................... Page 14 Plant Swap Set for June 4th ...................................................................... Page 15 REPORTS & OTHER ARTICLES OF INTEREST 4 Economic Trends That Will Impact Industrial Real Estate, BisNow ....................... Page 16 Pentagon Park's Uncertain Future Could Be Decided This Week at Edina Planning Commission, Minneapolis/St. Paul Business Journal ................. Page 20 Apartment Boom Reaches 7th Inning, According to Guy Who Would Know, Minneapolis/St. Paul Business Journal ....................................... Page 22 Minnesota Legislation Would Cut Funding for Job Creation, Finance & Commerce ...... Page 23 Recycling, Once Embraced by Businesses and Environmentalists, Now Under Siege, Wall Street Journal ....................................................... Page 26 Mosaic Co Moving Headquarters to Florida, Minneapolis/St. Paul Business Journal ..... Page 31 MEETING AGENDA PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY THURSDAY, MAY 24, 2018 - 7:00 p.m. WHERE: Medicine Lake Room City of Plymouth 3400 Plymouth Boulevard Plymouth, MN 55447 CONSENT AGENDA All items listed on the Consent Agenda are considered to be routine by the Housing and Redevelopment Authority and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner, citizen or petitioner so requests, in which event the item will be removed from the consent agenda and considered in normal sequence on the agenda. 1. CALL TO ORDER - 7:00 P.M. 2. CONSENT AGENDA A. Approve HRA Meeting Minutes for April 24, 2018. B. Plymouth Towne Square. Accept Monthly Housing Reports. C. Vicksburg Crossing. Accept Monthly Housing Reports. 3. NEW BUSINESS A. Project-Based Units – Request For Proposals. Award six project-based units for the Sand Development, LLC project and ten project-based units for the Beacon Interfaith project and authorize executive of HUD-52531- A – Agreement to Enter Into Housing Assistance Payments Contract for new construction. B. Beacon Interfaith Housing Collaborative. Consider financial assistance for the Cranberry Ridge development. 4. ADJOURMENT Page 2 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 May 2018 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room SUN TUES MON WED THUR FRI SAT MEMORIAL DAY CITY OFFICES CLOSED 5:00 PM SPECIAL COUNCIL MEETING Organics Recycling/Ramada Site Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 6:00 PM Walk with the Mayor Plymouth Creek Center 5:00 PM SPECIAL COUNCIL MEETING Fire Dept. Update Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 10:00 AM Bark in the Park Hilde Performance Center 8:00 AM-12:30 PM Plymouth Crime & Fire Prevention Fund Waffle Breakfast Fire Station III Page 3 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 7:00 PM PLANNING COMMISSION MEETING Council Chambers 21 22 23 24 25 26 27 28 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room 29 30 June 2018 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 5:30 PM SPECIAL COUNCIL MEETING TwinWest Up- date/Budget Goals Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Plymouth Creek Center 7:00 PM PLANNING COMMISSION MEETING Council Chambers SUN TUES MON WED THUR FRI SAT CHANGES ARE NOTED IN RED 5:30 PM SPECIAL COUNCIL MEETING State of the Streets in Plymouth Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers Absentee Voting begins for State Primary Election Page 4 SUN MON TUE WED THU FRI SAT 1 2 3 4 INDEPENDENCE DAY CITY OFFICES CLOSED 5 6 7 8 9 10 11 12 13 14 15 16 17 18 7:00 PM PLANNING COMMISSION MEETING Council Chambers 19 20 21 22 23 24 7:00 PM REGULAR COUNCIL MEETING Council Chambers 25 26 27 28 29 30 31 July 2018 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room CITY COUNCIL FILINGS OPEN Mayor, At Large, Ward 2 and Ward 4 SUN TUES MON WED THUR FRI SAT 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room 5:30 PM - 10:30 PM Music in Plymouth Hilde Performance Center Page 5 Note: Special Meeting topics have been set by Council; all other topics are tentative. EDA refers to the Economic Development Authority Tentative Schedule for City Council Agenda Items June 12, Special, 5:30 p.m. Medicine Lake Room •TwinWest update •Budget goals June 12, Regular, 7:00 p.m. Council Chambers •Presentation on Emerald Ash Borer •Announcement of Music in Plymouth and 5k Run •Public improvement and special assessment hearing for the Troy Lane reconstruction project (ST180002) June 26, Special, 5:30 p.m. Medicine Lake Room •State of the Streets in Plymouth June 26, Regular, 7:00 p.m. Council Chambers •Appoint election judges for the 2018 Primary and General Elections •Public improvement and special assessment hearing for the 2018 Mill and Overlay project (ST189004.002) •Public improvement and special assessment hearing for the Fernbrook Lane Mill and Overlay Project (ST180003) July 24, Regular, 7:00 p.m. Council Chambers •Present 2017 Comprehensive Financial Report (Aaron Nielson, from Malloy, Montague, Karnowski, Radosevich & Co., PA) •Present Certificate of Achievement for Financing Reporting for 2016 August 21, Special, 5:30 p.m. Medicine Lake Room •Budget and CIP •If necessary, conduct regular meeting at 7 p.m. and then recess back to study session August 28, Special, 5:30 p.m. Medicine Lake Room •Budget and CIP August 28, Regular, 7:00 p.m. Council Chambers September 4, Special, 6:00 p.m. Medicine Lake Room (if needed) •Budget and CIP September 11, Regular, 7:00 p.m. Council Chambers •City Manager’s 2018 Financial Overview •Consider 2019 proposed budget, preliminary general property tax levy, HRA levy and setting budget public hearing date September 25, Regular, 7:00 p.m. Council Chambers October 9, Regular, 7:00 p.m. Council Chambers Page 6 October 23, Regular, 7:00 p.m. Council Chambers November 13, Special, 5:30 p.m. Medicine Lake Room (if needed) •Budget and CIP November 13, Regular, 7:00 p.m. Council Chambers •Canvass 2018 General Election results November 27, Regular, 7:00 p.m. Council Chambers December 11, Regular, 7:00 p.m. Council Chambers •Recognize Police Citizen Academy graduates •Public hearing on 2019 budget, general property tax levy, HRA levy, and 2019-2023 Capital Improvement Program Page 7 BUDGET PROCESS Budget Calendar 2018-2019 Biennial Budget Preparation & 5-yr Capital Improvement Plan Date Category Description April 23, 2018 Budget Departments receive budget instruction June 12, 2018 Budget Council Study Session – Budget Goals April – June 2018 Budget Departments prepare budgets May 7, 2018 Budget Personnel changes submitted to HR June 11, 2018 Budget Budgets submitted to Finance July 9 – July 13, 2018 Budget Department meetings August 10, 2017 Budget Council receives budget materials for upcoming meeting August 21, 2018 Budget & CIP Council study session (Budget & CIP meeting #1) August 28, 2018 Budget & CIP Council Study Session (Budget & CIP meeting #2) Council Regular Session (Financial Overview) September 4, 2018 Budget & CIP Council Study Session (Budget meeting #3) (if needed) September 11, 2018 Budget Council adopts preliminary levies & budget (Budget meeting #4) October 3, 2018 CIP Planning Commission public hearing November 13, 2018 Budget Council Study Session (Budget meeting #5) (If needed) December 11, 2018 Budget & CIP Budget Public Hearing, CIP, Budget & Levy Adoption December 26, 2018 Budget Levy is certified with Hennepin County Page 8 May 11,2018 Dave Callister, City Manager City of Plymouth 3400 Plymouth Blvd Plymouth, MN 55447-1482 Dear Mr. Callister: The Metropolitan Council has prepared preliminary population and household estimates for your community as of April 1,2017. This is an annual process governed by Minnesota Statutes 473.24. Please note that these estimates are different from the Council's local forecasts that your community has reviewed before.Forecasts look ahead to the coming decades; the annual estimates communicated below look back in time to the previous year. 2017 Annual Population Estimate The Metropolitan Council estimates that the City of Plymouth had 76,882 people and 31,207 households as of April 1,2017.Household size averaged 2.425 persons per household. How was this estimate calculated? We estimate households and population with a housing-stock-based method, which involves three questions: 1. How many housing units did your community have? 2. How many households occupied these housing units? 3. How many people lived in these occupied housing units? This letter includes an overview of our estimation method along with a report showing the data inputs and calculations used to develop the preliminary estimates. For more information,visit https:i'www.metrocounciLurgi populationesumate>,or contact me at 651-602-1513. Can this estimate be compared to last year's estimate? Each year,we update our data and refine our methods, so preliminary estimates from different years are not directly comparable. We don't recommend taking the difference between the 2016 and 2017 estimates to calculate growth between 2016 and 2017. Instead, we recommend examining growth since the 2010 Census,which you can find in the enclosed report. How can my community provide feedback on this estimate? We welcome discussion of the preliminary estimates and invite you to review and comment on them. Please send any written comments or questions to Matt Schroeder,Metropolitan Council Research, 390 Robert Street North, Saint Paul, MN 55101; or by e-mail to ',Ian Schroeder‘ci mete.state.mn.0-. Under Minnesota Statutes 473. 24, we must receive your comments, questions, or specific objections, in writing, by June 24, 2018. What happens after my community provides feedback? The Council will certify final estimates by July 15, 2018 for state government use in allocating local government aid and street aid. Sincerely, 44416A-viS4/1-4076&---- Matt Schroeder Senior Researcher 390 Robert Street North I Saint Paul, MN 55101-1805 P. 651.602.1000 I TTY. 651.291.0904 I metrocouncil.org METROPOLITAN An Equal Opportunity Employer COUNCIL Page 9 Plymouth city, Hennepin County 2017 Annual Population Estimate Published May 11, 2018 (preliminary; distributed for local government review) METROPOLITAN COUNCIL Persons per Population Population in Housing units Occupancy rate Households household in households group quarters Total population 2017 32,181 96.97% 31,207 2.425 75,667 1,215 76,882 Estimate 2010 29,982 95.60% 28,663 2.423 69,448 1,128 70,576 Census The Metropolitan Council estimates population using the housing stock method,which answers three main questions for each community as of April 1, 2017. First, how many housing units did the community have? We start with housing units measured by the 2010 Census. then add units built between 2010 and 2016, based on permits reported to us by communities. (Permit data are available on our website https://stats.metc.state.mn.us/data_download/DD_start.aspx).) o We assume that 95% of single-family detached units and 90% of townhome/duplex/triplex/quadplex units permitted in 2016 were completed and occupiable by April 1, 2017; the remainder are assumed to have been completed after that date and will count toward next year's estimates (for April 1, 2018). o Multifamily units permitted between 2010 and 2013 are assumed to be completed. Units permitted between 2014 and 2016 are counted only if they were open by April 1, 2017; the remaining units will count toward next year's estimates if they were open by April 1. 2018. According to our records, Plymouth permitted 0 multifamily units in 2014 or 2015 that were not open by April 1. 2017, and 0 units permitted in 2016 that were not open by April 1, 2017. o Manufactured home data comes from our annual surveys of manufactured home park operators and local governments. o Data on other housing (boats, RVs, etc. used as housing) comes from the most recent American Community Survey data; this housing is included in the estimates only if occupied. We also examine other housing stock changes reported by communities. These include demolitions, building conversions units added or lost), boundary changes (units annexed in or out), and other changes reported by city and township staff. Housing stock Permitted and Other changes Housing stock April 1, 2010 built since 2010 since 2010 April 1, 2017 Single-family detached 16,068 1,624 128 17,564 Townhome(Single-family attached) 5,032 140 0 5,172 Duplex/triplex/quadplex 700 16 2 714 Multifamily(5 or more units)8,122 •552 0 8,674 Alternative dwelling units(ADU) 0 0 0 0 Manufactured homes 60 57 Other units 0 0 Total 29,982 32,181 Page 10 Second, how many of these housing units were occupied by households? Each housing type has an estimated occupancy rate. These data come from the most recent American Community Survey estimates for housing units and households, decennial census data from the U.S. Census Bureau, and the U.S. Postal Service. Multiplying the lumber of housing units of each type by the occupancy rate yields the number of households(occupied housing units). Third, how many people lived in these occupied housing units? Each housing type has an estimated average household size. These data come from the most recent American Community Survey estimates of households and population in households as well as decennial census data from the U.S. Census Bureau. Multiplying the Number of households in each housing type by the average household size yields the population in households. Households Housing stock Occupancy Occupied Persons per Population April 1, 2017 rate housing units) household in households Single-family detached 17,564 97.59% 17,141 2.621 44,932 Townhome(Single-family 5,172 97.60%5,048 2.621 13,232 attached) Duplex/triplex/quadplex 714 95. 88% 685 2.471 1,692 Multifamily(5 or more units) 8,674 95.42%8,277 1.896 15,697 Alternative dwelling units(ADU) 0 95.42% 0 1.896 0 Manufactured homes 57 97.43% 56 2.030 114 Other units 0 N/A 0 2.520 0 Total 32,181 96.97% 31,207 2.425 75,667 To obtain the total population, we also add the number of residents in group quarters facilities. These are residences that are not part of the standard housing market, such as college dormitories, nursing homes, prisons and jails, and group homes. Data come from the Metropolitan Council's annual survey and the Minnesota Department of Human Services. Population Population in Total population in households group quarters April 1, 2017 75,667 1,215 , 82 Due to rounding, not all estimates can be reproduced exactly from the above inputs. For more information, see our methodology document, available from https://www.metrocouncil.org/populationestimates. Page 11 Z-a-O a)i-i)W a) ouicOJZNa) (3 O ZaLoa)-aOclaiNtc'a E co as o a) ° a) 7 '-7---H.C30d2a) E ~ R - O E n (15a, W W C Q o 0) c cn (n 0 - U L u) -CCD20 - som a) c a0 0 i) m N mt c _c v v 0) a) °Q d o E C _c co E .m ° a) (1":” (7) °01 actZ Z L1J Z a vL.x o D E c a) o ° 0 a) uiW1.. = O 0 0 N .N a L O O aa' o 3 `n O — ° a) c a c ° co 03 J = 12 o o 0 a) = 0 = as03 co 0 a'. _... } c w - 0 E as c O a) 0 z 0 o o c4 U cz O a) c a) o c6 6 c O () C 0)Q N U) 0) O. a) . cn E .0 c o E ° as co 0 I— o , U N 0 ca a) E p o D o Z J W Z cIS L. a) O > c o f N G o M0 I-- _ m m co a) c ca ai E o 0 L11 cz C CLVCZQ. j up u) cn C U O a) m ° a) (n _c a) C A3 CD M O U = V p .a O N c cA - p Q V O @ as E U E u)o 0 c Too c E U _c c v coD O Z m ° O D U 1) o _0° ° O as3 H - Q 1c ZV O O yX z O y IIN O r--- co O c O a) 03lGcna) (6 O C 0• 0) O O c c c U a) . a) ca `J v H v a) co L c`a iv 0Z = = I-- C 10 C O N ° C C p 'C O C C t^ cti C ^ Z = C co + 0 0 U L U N L- ..Y 73 C u Yp , O O Z W cn O v m o c a) ° N j r+ C a) a Q •--• p O a3 OQ 0 v/ ti M C N N O 5 ON -0 ,_ U n w - Q Q + L Q Q N d ° m o c +' 000ccL13 oO 0 C O a) L.Page 12 City of Plymouth News Release For Immediate Release May 14, 2018 Contact: Sgt. Robert Topp Plymouth Police Department 763-509-5189 rtopp@plymouthmn.gov Plymouth Police K9 Unit earns top honors during statewide narcotics certification Plymouth, Minn. – The Plymouth Police Department K9 Unit recently earned top honors during the annual statewide narcotics detection certification process, sponsored by the United States Police Canine Association. Plymouth Police Officers Matt Gliniany and Bill Dane, with respective K9 partners Stryker and Odie, took home the First Place Department Team award at the competition – for the second consecutive year. Gliniany and Stryker also earned the Third Place Overall award. Officer Steve Larson, with K9 partner Knight, was paired with an Edina Police Department K9 team and received the Second Place Region Team award. A total of 106 city and county K9 teams from across Minnesota and beyond participated in this year’s event, hosted by the Wright County Sheriff's Office. The Plymouth Police Department K9 Unit consists of three teams, which are certified in narcotics detection, agility, obedience, apprehension and tracking. The annual narcotics detection certification process includes indoor and outdoor searches for substances such as marijuana, methamphetamine, cocaine, crack and heroin. In addition to regular patrol duties and special assignments, the K9 Unit is deployed to several hundred incidents each year and provides assistance to other area law enforcement agencies throughout the metro. K9 teams are also a fan favorite during appearances at community events, such as Music in Plymouth and Plymouth on Parade. Cutline: Plymouth Police Department K9 Unit earned high honors during the annual statewide narcotics detection certification process. The K9 Unit consists of three teams, which are certified in narcotics detection, agility, obedience, apprehension and tracking. -30- Page 13 City of Plymouth News Release For Immediate Release May 15, 2018 Contact: Jim Long Community Relations Officer Plymouth Police Department 763-509-5135 jlong@plymouthmn.gov Plymouth accepting applications for Public Safety Citizens Academy Plymouth, Minn. – Plymouth Public Safety Department is accepting applications for the Public Safety Citizens Academy – a free 36-hour, 12-week course geared toward expanding public knowledge of the Plymouth Police and Fire Departments. The 2018 Citizens Academy meets 6:30-9:30 p.m. Tuesdays, beginning Sept. 11. Each week, a different aspect of policing will be featured through lectures and hands-on demonstrations; one week will be dedicated to Fire Department operations. Topics include: •Overview of the Police Department, including a tour •Patrol operations •Police tactics •Opportunity to ride along with an officer •Narcotics enforcement and trends in the community •Conducting investigations •Crime prevention •SWAT •Tour of the Hennepin County 911 Dispatch Center in Plymouth The academy helps strengthen the partnership between public safety professionals and the community by sharing information and promoting a better understanding of public safety services. Applicants must be 18 years of age or older and live, work or own a business in Plymouth. All participants must undergo a criminal background check. For more information or to apply, contact Community Relations Officer Jim Long at 763-509-5135 or visit plymouthmn.gov/citizensacademy. -30- Page 14 City of Plymouth News Release For Immediate Release May 15, 2018 Contact: Paul Buck City Forester City of Plymouth 763-509-5944 pbuck@plymouthmn.gov Plant swap set for June 4 Plymouth, Minn. – A free plant swap is set for 4:30-6:30 p.m. Monday, June 4 at the Plymouth Maintenance Facility parking lot, 14900 23rd Ave. N. Participants are encouraged to bring perennials and swap them for plants shared by others. To get involved, participants should place extra plants in pots and label them with their common names. Seeds and plant wares – pots, tools, books and the like – are also acceptable swap items. For more information, call City Forester Paul Buck at 763-509-5944. -30- Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 WALL STREET JOURNAL May 13, 2018 Recycling, Once Embraced by Businesses a nd Environmentalists, Now Under Siege Local officials raise fees and send recyclables to landfills as economics erode Workers at Cal-Waste Recovery Systems pre-sort raw recycling. The company has been struggling to sell its mixed-paper recycling to its usual customer, China. PHOTO: MAX WHITTAKER FOR THE WALL STREET JOURNAL Page 26 WALL STREET JOURNAL May 13, 2018 The U.S. recycling industry is breaking down. Prices for scrap paper and plastic have collapsed, leading local officials across the country to charge residents more to collect recyclables and send some to landfills. Used newspapers, cardboard boxes and plastic bottles are piling up at plants that can't make a profit processing them for export or domestic markets. "Recycling as we know it isn't working," said James Warner, chief executive of the Solid Waste M anagement Authority in Lancaster County, Pa. "There's always been ups and downs in the m arket, but this is the biggest disruption that I can recall." U.S. recycling programs took off in the 1990s as calls to bury less trash in landfills coincided w ith China's demand for materials such as corrugated cardboard to feed its economic boom. Shipping lines eagerly filled containers that had brought manufactured goods to the U.S. with paper, scrap metal and plastic bottles for the return trip to China. As cities aggressively expanded recycling programs to keep more discarded household items o ut of landfills, the purity of U.S. scrap deteriorated as more trash infiltrated the recyclables. Discarded food, liquid-soaked paper and other contaminants recently accounted for as much as 20% of the material shipped to China, according to Waste Management Inc.'s estimates, double from five years ago. The tedious and sometimes dangerous work of separating out that detritus at processing plants i n China prompted officials there to slash the contaminants limit this year to 0.5%. China early this month suspended all imports of U.S. recycled materials until June 4, regardless of the q uality. The recycling industry interpreted the move as part of the growing rift between the U.S. and China over trade policies and tariffs The changes have effectively cut off exports from the U.S., the world's largest generator of scrap paper and plastic. Collectors, processors and the municipal governments that hire them are reconsidering what they will accept to recycle and how much homeowners will pay for that service. Many trash haulers and city agencies that paid for curbside collection by selling scrap said they are now losing money on almost every ton they handle. The upended economics are likely to permanently change the U.S. recycling business, said William Moore, president of Moore & Associates, a recycled-paper consultancy in Atlanta. Page 27 WALL STREET JOURNAL May 13, 2018 produce cleaner bales of recyclables. PHOTO: MAX WHITTAKER FOR THE WALL STREET JOURNAL "It's going to take domestic demand to replace what China was buying," he said. "It's not going to be a quick turnaround. It's going to be a long-term issue." The waste-management authority in Lancaster County this spring more than doubled the charge per ton that residential trash collectors must pay to deposit recyclables at its transfer station, starting June 1. The higher cost is expected to be passed on to residents though a 3% increase i n the fees that haulers charge households for trash collection and disposal. The additional transfer-station proceeds will help offset a $40-a-ton fee that the authority will start paying this summer to a company to process the county's recyclables. Before China raised its quality standards at the beginning of this year, that company was paying Lancaster County $4 for every ton of recyclables. M r. Warner may limit the recyclable items collected from Lancaster County's 500,000 residents to those that have retained some value, such as cans and corrugated cardboard. He said mixed plastic isn't worth processing. "You might as well put it in the trash from the get-go," he said. Environmentalists are hoping landfills are only a stopgap fix for the glut of recyclables while the i ndustry finds new markets and reduces contaminants. Cal-Waste Recovery Systems plans to invest more than $6 million on new sorting equipment to Page 28 WALL STREETJOURNAL May 13, 2018 "Stuff is definitely getting thrown away in landfills. Nobody is happy about it," said Dylan de Thomas, vice president of industry collaboration for the Recycling Partnership in Virginia. "There a re very few landfill owners that don't operate recycling facilities, too. They'd much rather be paid for those materials." Pacific Rim Recycling in Benicia, Calif., slowed operations at its plant early this year to meet C hina's new standard. But company President Steve Moore said the more intensive sorting process takes too long to process scrap profitably. Pacific Rim idled its processing plant in February and furloughed 40 of its 45 employees. "The cost is impossible. We can't make money at it," Steve Moore said. "We quit accepting stuff." C hina stopped taking shipments of U.S. mixed paper and mixed plastic in January. Steve Moore said mixed-paper shipments to other Asian countries now fetch $5 a ton, down from as much as $150 last year. Other buyers such as Vietnam and India have been flooded with scrap paper a nd plastic that would have been sold to China in years past. Dave Vaccarezza, president of Cal-Waste Recovery Systems near Sacramento, Calif., intends to invest more than $6 million in new sorting equipment to produce cleaner bales of recyclables. "It's going to cost the rate payer to recycle," he said. "They're going to demand we make our best effort to use those cans and bottles they put out." Page 29 WALL STREET JOURNAL May 13, 2018 C hina stopped taking shipments of U.S. mixed paper and mixed plastic in January. Cal-Waste Recovery Systems workers sift through recycled trash. PHOTO: MAX WHITTAKER FOR THE WALL STREET JOURNAL Sacramento County, which collects trash and recyclables from 151,000 homes, used to earn $1.2 million a year selling the scrap to Waste Management and another processor from scrap. N ow, the county is paying what will amount to about $1 million a year, or roughly $35 a ton, to defray the processors' costs. Waste Management paid the county $250,000 to break the revenue-sharing contract and negotiate those terms. County waste management director Doug Sloan expects those costs to keep climbing. "We've been put on notice that we need to do our part," he said. The county hasn't yet raised residential fees. Some recyclers said residents and municipalities need to give up the "single-stream" approach of lumping used paper and cardboard together with glass, cans and plastic in one collection truck. Single-stream collections took hold in the waste-hauling industry about 20 years ago and continue to be widely used. Collecting paper separately would make curbside recycling service m ore expensive but cut down on contamination. "We're our own worst enemies," said Michael Barry, president of Mid America Recycling, a processing-plant operator in Des Moines, Iowa, of single-stream recycling. "It's almost i mpossible to get the paper away from the containers." Even relatively pure loads of paper have become tough to sell, Mr. Barry said, noting the domestic market for paper is saturated as well. He stockpiled paper bales at Mid America's warehouse, hoping prices would improve. They didn't. He has trucked 1,000 tons of paper to a l andfill in recent weeks. "We had to purge," he said. "There's no demand for it." Page 30 Page 31