10. Extension of Amended Curbside Recycling Contract ) 0
CITY OF
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CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
MEMORANDUM
TO: Don Ashworth, City Manager
FROM: Jo Ann Olsen, Senior Planner ,jt.:0
DATE: September 20, 1989
SUBJ: Waste Management Curb Side Recycling Contract
On August 14, 1989, the City Council recommended amending the
contract between the City and Waste Management for curbside recycling
to allow the contract to be increased from 87 to $1.35 per household
per month. The City Council allowed this increase only through
11 October of 1989 . The contract allows either party to submit a 30 day
written notice for cancellation of the contract. Therefore, the City
Council must act on whether or not to extend the increased contract
' through the end of December, 1989 or to give Waste Management notice
at the beginning of October that the City will pull out of the
contract.
On September 5 , 1989, the Chanhassen Recycling Commission recommended
that the City Council extend the curbside contract, with the $1. 35
per household per month increase, through December, 1989. The com-
mission felt that it was not prudent to cancel service without having
any service in place to replace the existing curbside pick-up.
Continuing the contract though December, 1989 allows the Recycling
' Commission time to work on the 1990 contract which will be going out
for bid sometime in late October/early November.
RECOMMENDATION
Staff recommends that the City Council approve continuing with Waste
Management' s contract at $1.35 per household per month through
' December, 1989.
ATTACHMENTS
1. City Council minutes dated August 14 , 1989.
Manager' s Comment: This is a separate fund of the City. That fund
will close 1989 with a deficit balance. Assuming approximately
$30, 000 is levied/collected in 1990 ( same as 1989 ) , only $25,000 will
be available to carry on operations in 1990 ( fund deficit must be
paid first from current revenues ) . This office supports the position
of the planning staff/committee. However, I must alert you to the
reality that curbside pick-up, funded solely by property taxes, is
not financially feasible. D t - `; f i`.
City Council Meeting - August 14, 1989 , II
1
Councilman Boyt: Cant do it.
Ir 4 Councilwoman Dimler: Yes we can.
Councilman Workman: I would move that the City purchase the raft for $1.00 and
make`dt a permanent facility at this beach.
I
Councilman Boyt: I'll accept that. I second that.
Mike Weciler: ...property over. That piece of property was turned over to the II
City for $1.00 from the people of Carver Beach and that's where this whole
thing...
II
Councilman Workman: Do we have a signed agreement on that?
Rocky Byrnes: Yes. I
if Councilwoman Dimler: That's how is whole thing got started.
Mike Wegler: That's why we're h e for the raft. That's all we've got left. I
We can't pull our boats up into ere anymore. We can't put a dock out there.
We can't do anything. Now you' e telling us in 2 years the City might have the
right to take the raft out. gat does that do for us? We've got 300 signatures
II
of people around the area with kids that just want to use it. We just to be
reassured...
Councilman Workman: Can we amend the Comp Plan? 1
Councilman Boyt: It's a park. want a raft out there. Let's move to keep I
the raft out there. What's so cam. 'cated about that?
Councilwoman Dimler: Mhy can't we grand . her it in?
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ouncilman Workman: =Do I hear a second?
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Mayor Chmiel: Yes, ' it was moved and seconded. 1
Councilman Boyt: Whoever made it, we've got it covered.
Councilman Workmate: To repurchase the raft. I
Councilwoman Dimler: But the neighbors don't want you to purchase 't.
Councilman Johrison: It doesn't even have to be purchased. It's alre.:•y II
personally owned by the City. It can be there. All we have to do is y it's
in the, underteither ordinance it can still be there. \
f II
Mike Wegler: ! I told them, that's why I put my labor in it. I didn't want to
charge the City anymore than for materials...
Councilman yt: The City owns the dock and intends to keep the dock. I
Councilman Workman: So an amended motion would be... I
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1 City Council Meeting - August 14, 1989
1
Councilwoman Dimler: Mike has 500 owership.
Councilman Boyt: He just gave us the dock right? If we want it, you're oin
to give it to us? g g
1 Mike Wegler: I gave you the dock under good pretenses that it was going to be
grandfathered in there and it was going to be secure for kids. My kids and kids
down the road and I have no reassurance tonight that that's going to happen.
ICouncilwoman Dimler: No you don't.
ICouncilman Boyt: It's like any piece of park property.
Mike Wegler: There we go again. We gave it to you for a $1.00
ICouncilwoman Dimler: Grandfather them in.
Roger Knutson: You can grandfather them in.
ICouncilwoman Dimler: Yes.
Roger Knutson: You can write the ordinance to grandfather them in.
Councilman Johnson: But we have to hold the hearing on the ordinance.
Councilwoman Dimler: Fine. Then I'll go along with it.
l_.
Mayor Chmiel: Something so simple always becomes a big problem.
; I Councilman Johnson: So how are we going to notice this ordinance? Axe we goin g
to spend $1,000.00? I think we ought to publish it in the newspaper and I move
we publish this ordinance in the newspaper including wording about
grandfathering.
Mayor Chmiel: Is there a second?
Councilman Workman: Second.
Councilman Johnson moved, Councilman Workman seconded to publish the swimming
raft public hearing notices in the newspaper. All voted in favor and the motion
carried.
DISCUSSION OF CURBSIDE RECYCLING CONTRACT.
Jo Ann Olsen: Waste Mangement has contacted staff requesting that additional
billing or they're requesting additional monies for their monthly payments and
if they cannot receive those, then they would have to use the option in the
contract that they would give 30 day notice to remove from the contract so we're
bringing it up to the Council to see what they would like us to do with that.
If they would like to have that additional money for the contract. Do they want pr
to tell them to go ahead and use that 30 day option. Whatever. A
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City Council Meeting - August 14, 1989
1
Ir- people to recycle on an every other week basis. It's more convenient to recycle
on a weekly basis so you do get more participation and more visibility through
weekly type programs and that helps get the tonage up which drops the cost per
ton for the program.
Councilman Johnson: If we get the tonage up, would that help with the costing? I
In other words, if you made more money selling more aluminum and more glass.
Lynn Morgan: Would that drop off?
Mayor Chmiel: The cost.
Lynn Morgan: No, I don't know the answer to that. I'm sorry. I don't know I
the answer to that question. Aluminum is a money maker for a recycling program.
In fact if you look at the contribution to the overall revenue, aluminum is
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generally a very healthy chunk. Unfortunately for where we're all sitting,
although we're factoring in some more annual type numbers, aluminum right now is
pretty much at a seasonal low too. It's totaling somewhere around 47-48 cents
per pound. Glass is about $45.00-$50.00 a ton but newspaper is what you tend, 1
as you increase participation to get more and more of and newspaper is a cost
item for most contractors right now.
Mayor Chmiel: Just in that same vein. The market being very soft right now.
If the market were to pick up and the cost become, your cost became better,
because there's a better dollar volume as far as paper, glass, tin, whatever, is I
there a chance that the cost would came back down?
Lynn Morgan: Yes. There is that chance. In fact, if you wanted to, I don't
know how far you want to go tonight. I guess we're hoping to get enough of a I
signal from you that we can all continue this program, at least through the
contract because believe me, we don't, it's not easy to come here and tell
somebody we might have to stop service. That's not something we like to do but I
we could for example specify same numbers. What becomes hard is determining a
market indicator for paper. If we wanted to do that for aluminum, we could do
that very easily by identifying, recognize almost Dow Jones type of statistics
that we could all reference but with newspaper, there's no type of number like
that. What you would see as the newspaper market improves and as people begin
to generate revenue off of newspaper again is you would see the prices metrowide
for recycling begin to drop again. I hope that when that happens, that people
will remember what happened when people had programs that relied 1000 on revenue
and when the bottom fell out, and look more to revenue sharing type of
arrangements or ones that do reference market indicators so that people don't
get held over a barrel again.
Mayor Chmiel: I know that that situation happened to Ramsey County with Super
Cycle going out of the business.
Councilman Johnson: I'd like to, if we approve the increase, I'd like to
somehow. I would assume this meets your corporate desires for profitability
which is what everybody works for is profitability. You don't work to lose
money is what my boss keeps telling me. But this would make you profitable at
the soft part of the market. If the market changes, there is some way that we
can share in that. That there is some fixed part of this contract that we share
in gains in the market. Someway that we know how many tonage of aluminum you're
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IICity Council Meeting - August 14, 1989
II picking up and how much tons of
g P newspaper and how much tons of glass and what
the revenues you are gaining from those are. When those revenues over cost
Istart to, the revenues minus cost start to increase, that we share in that
increase and it doesn't go to excess profit to develop you into the largest
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waste corporation, I think you are.
IILynn Morgan: Which is hard to feel sympathetic for right?
II Councilman Johnson: Yes. It's hard to feel sympathetic for a 6 billion dollar
a year corporation.
Lynn Morgan: I understand the concept of what we call a revenue sharing. I
I know you have a different context for that but we call it a revenue sharing type
contract.
IICouncilman Johnson: Sounds like a good idea.
Lynn Morgan: In fact, one of our flagship contracts, one of the most famous
II contracts in the nation is a program that runs in San Jose, California and
provides service to about 180,000 homes. It's considered the Cadillac type
program for recycling and under our contract with that city, we do share in, we
specified a range of revenue and when the revenues exceed that range, the city
I participates in that additional revenue. When the revenues fall below a certain
range, the City also participates in that risk. The only concerns I have, and
they're very, they're rooted in...a formula that we use with the City of
I Brooklyn Park. A contract that we just started so I'm speaking from a realsitic
point. It's very hard to allocate to one city their recycleables and the cost
of managing those recycleables. It's very difficult. If we allocate...
IICouncilman Johnson: Don't you weigh the trucks?
Lynn Morgan: Yes. The trucks are weighed and your city does receive monthly
I recycling reports that show you the tonages that were recycled. Those are not
weighed out by material. In other words, we don't weigh the multi-compartment
truck by newspaper and glass and cans. What we do is we take all of the
I recycleables from all of our programs and we say well this month 75% of our
tonage was newspaper and 18% was glass and this much was tin and so on. Then we
say therefore, that percentage, that proportion applies to all of our contracts.
That's where we get into some real sticky record keeping and we're not'100o
I comfortable with the adminstrative energy that is required to sustain a contract
like that and to document it and keep it all straight.
II Councilman Johnson: If you're using those straight formulas like that, I would
think it would be fairly simple to go back to the tonages.
II Lynn Morgan: It would if all of our markets paid the same but we're using
multiple markets now. What we don't want is we don't want to get a call from
any one newspaper outlet or any one metals outlet that says, hi Lynn. Guess
what? If you want to stay in business, next month you're going to pay me $50.00
I a ton or Lynn guess what? I just had a fire and I'm shutting the gates so do
what you can. You know punt. Those are the calls we don't want to get anymore
and that's why we're using a diverse range of markets each of which has it's own Cr
cost associated with it or it's own revenue associated with it and they not only
have costs associated in what they either invoice us or the check they write us
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City Council Meeting - August 14, 1989
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but we have our internal cost of loading the vehicles and delivering them to
market and that's different for every market we use. That's why I'm saying it's
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a very, internally it's complicated to document a program like that back to you.
I'm not saying we can't do it by any means but in the way that we would
structure it, I guess that would be our concern would be to keep it simple
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enough that we could fulfill it completely with you.
Councilman Johnson: I see this town and the people I know in this town being
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very environmentally conscience and when the program is going, the education
gets going, the committee gets going, I think we'll beat 35% easy at which time
what does that mean to Waste Mangement? Does that mean more profits to them at
$1.45 or whatever it is?
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Councilman Boyt: 35.
Councilman Johnson: $1.35. How does us putting money into the education I
program to increase the recycling that we want to do and our citizens want to
do, how does that affect you as the supplier of that service? Does it take your II desireable profit margin and make it larger or does it hurt you because you're
in a negative situation?
Lynn Morgan: I have to clarify that although it seems incredible that the new I
numbers we're talking about are very, very close to break even for us. The
other work that we've written more recently, for example again Shorewood at
$1.90 and then you look at same of our weekly contracts like Wayzata at $2.35 or
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a very, very large contract, the Minnetonka, Golden Valley, Plymouth grouping
that we signed up recently is at $1.85. As you increase your participation a
couple of things will happen. Your cost per ton will go down. You'll recycle
more and came closer or do more in terms of meeting the County and State and Met
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Council goals. From our perspective, I think that in the range we're talking
about, we would not see huge differences in our cost. Right now I think we
spend roughly pretty close to 8 hours per collection day in the City of
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Chanhassen and then it's 2 days so it's basically 16 hours a week I think. What
happens right now is that basically the fellas drive past maybe 7 out of 10
houses and stop at 3. As you increase participation, he'll stop at more so his II time out on the street will increase and his truck will fill up faster so he'll
have to spend over, in your case, over 6 months or so, he'll make additional
trips to the processing center that he would not have otherwise of necessarily
made. So those are basically cost increases and will also add newspaper which
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is not a profit item.
Councilman Boyt: Can I take a minute? I
Mayor Chmiel: Go ahead Bill.
Councilman Boyt: This probably isn't to direct any questions your way. I think I
you've done a nice job of sharing some things. I think we'd all agree that your
business has a right to make a profit. However, if I read your figures right,
if we have 25% participation, if it's $1.35 a household, that means for each
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house you pick up, it costs $5.45. I would maintain that we can't afford it. I
would suggest that for $56,400.00, which is a close estimate of the annual cost
given that nothing changes, and we know that's not going to happen, the City can II run maybe a drop off program with a full time person doing nothing but working
on recycling of various things in our community and still come out spending less
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City Council Meeting - August 14, 1989
money than that and I would propose that we possibly agree to pay the higher
rate for 2 months. In that period of time we gather as much information as we
can including the possibility of hiring a person to do it. Not do actual
pick-up but do education. Every month we extend this, we spend close to
$1,700.00. I'd much rather put that money in an intern doing a study. I think
' we've had an interesting 4 month experiment and that it has basically said that
we can't afford this type of recycling. I think you're very justified in asking
for enough money to cover your expenses and that should be a clear signal to us
that our city can't afford this. We have too much area with too few people to
run this kind of a recycling program.
Councilman Johnson: We also need to apply for some more grants and stuff to
' help us pay for this.
Councilwoman Dimler: I guess I'll go ahead and comment. I did talk to Jo Ann
' about this today and I guess I was looking at alternatives too because I thought
it was, although I really have enjoyed the recycling. We've participated in it
and it's been a lot of work but a lot of fun. I think our kids are getting a
real good view too of what they need to do in the future. But again, I think
' the increase is too much and I do see Council as being a watchdog over the
citizens' pocketbook but I do want to continue the recycling efforts. One of my
suggestions was that we look for help from the County. Perhaps get on the
' agenda for the County Board. Go back to a drop off.
Councilman Workman: More centralized drop off?
' Councilman Johnson: Over at the Public Works? Then we drop back to 10%.
Councilman Boyt: I would suggest that if we had somebody working on education,
' that we may be able to come up with a way to have neighborhood drop offs.
Mayor Chmiel: I think we have some people that are proposing for the committee
' that have education backgrounds that I think would do a good job.
Councilman Boyt: The biggest generator of material for recycling is industry,
not the individual household. What we're dealing with here is really an
' education as sort of a sense of participation. We're not dealing with people
that are really, at this point, capable of generating a great deal of material
that's recycleable. I think we're seeing that so maybe we're all sensing this.
' That for $56,400.00 we need to do a very careful study of where do we get the
biggest return, recycling return? I think probably everybody in the Council
recycles every other Wednesday or Thursday, depending on the day but only 1 out
' of 4 is doing it.
Councilman Johnson: Well Carver County is like the only county in the metro
area to make it's goal and primarily made it based on Chanhassen's businesses
' and a lot of Chanhassen businesses recycling couldn't be counted because it was
already being done before they set the goals so anything that was already being
recycled couldn't set it so our businesses in this town do a tremendous good and
profitable recycling business. When you look at the printing industry we've got
here in town. They recycle a tremendous amount of paper and Class A grade paper
versus newsprint. Just to emphasize your point. I'm not sure if I'm ready to
drop curbside recycling. Eventually it's going to, it's being required. The cf
' State is requiring communities outstate to do curbside recycling as part of
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City Council Meeting - August 14, 1989 II
their comprehensive planning in the outstate. It's c oming. If we're ,
re doing it
now, we're going to be required in the future. I think the County may be
willing but they're pretty tight on their budgets, to bring us some money but
they are receiving monies from some of the set asides that are going. I agree.
I may say 3 months instead of 2 months. I think we need to keep this going. I
think we'll get a lot of citizen support for it but it is a lot of money.
Mayor Chmiel: Yes it is, no question. I agree I think with you Jay. 3 months
I think would be more of a time period that I would like to see this done only
because of the committee that we're getting established for than to formulate
and pull together things which could give a good sense of direction for the
City. I think too, educationally wise, this has to be started within the
schools themselves right now. Start talking so the children understand what
it's all about. That message brought home to the parents a little bit more too
of those that are not participating. As you say, there's 3 or 4 that are not
participating for everyone that is. Maybe this is the way we can activate that
to get it going. The other hand I was looking at was going back to our public
safety aspect. Doing what we did before and have the recycling down at our
shop. I just don't see people taking that time out to take it and haul it down
there which is the problem.
Councilman Workman: Not with 6 limited hours.
Councilman Johnson: No. It'd have to be full time.
Mayor Chmiel: So I think I would have tendencies to agree that 3 months I'd
like to see it continue yet rather than just the 2 because it would just give us
a little better time frame.
Jo Ann Olsen: From August though? August through October?
Mayor Chmiel: Yes.
Councilman Boyt: The recycling committee and maybe it will be different but I
think most committees take several months to get really rolling. We're not
going to see anything out of them for 6 months in terms of a real active kind
of...
Mayor Chmiel: Bill, you didn't meet those people today. They're enthusiastic
as all get out. They know what it's about. They've been there. They've been
recycling for as many years as one had said, for the past 10 years. Strong
advocates on it.
Councilman Boyt: Well I'd like to see us go more than a month because I think
that's basically cancelling the contract and I think at 2 months we've got time
to come back and extend that if we desire to do that. It's $1,700.00 a month
above what we're paying now. I'd hate to see us commit ourselves to anymore
time than we have to. If we come back in 2 months and say let's stick with it,
okay. But I'd like to think that in 2 months we can get enough information to
make a decision. ,
Mayor Chmiel: I don't think we can get that committee to really move that
quickly within the 2 months to come up with things.
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City Council Meeting - August 14, 1989
Councilman Boyt: I don't think the committee
is going to make the decision for
us and I didn't interview them.
' Mayor Chmiel: But we'll get proper direction from that committee I think
because of the positions that they're taking.
Councilman Boyt: If we give them 3 months, they'll sure as heck take it. If we
give them 2 months, maybe we'll have an answer in 2 months.
' Councilman Johnson: I've got one more question. Did you figure into your
$1,685.00 recycling, the newspapers within the County as far as there may be a
mandate that all your newspapers are taken to the County newspaper facility?
Lynn Morgan: For newspaper shredding or something like that?
' Councilman Johnson: Right.
Lynn Morgan: No. That's not reflected there.
Mayor Chmiel: And the County is looking at that aspect.
Councilman Johnson: The County is buying the equipment and putting that in and
' I believe under certain laws they can say all newspaper from all recycling
programs shall come to us as when the garbage collecters, when they put in the
composting plant. All garbage from the City of Chanhassen will go down to Scott
County and be composted. I'm not sure whether that's going to happen or not.
Lynn Morgan: I don't know myself. I can see why that would be a concern from
your perspective and I guess one option we would have is to write an amendment
' of some sort. I don't know if we need a contract amendment or what have you for
what we're talking about doing here tonight anyway but we could write a clause
that would basically say that if that- came to pass, that the price would revert
' to x which would be a lower price than the increase we're seeking today. So
that if that reality kicked in and the County did offer that repository, you
wouldn't be locked into a contract with us that was based on a higher cost
' assumption you know.
Councilman Johnson: You're saying if that did happen, it would be a lower cost
to us?
' Lynn Morgan: If that did happen, that would result, and if it did result in a
lower cost for us, in other words, it would depend on, I wouldn't know yet if
the County was going to open the doors and say there was going to be a charge
and you had to bring it there but we could write these things in and say that if
these conditions attain, the County offered the site and there were no charge or
the charge were some very small amount and if we could deliver there without
' incurring additional costs, then we could revert the price back too. I wouldn't
have a problem with that at all. That's fair.
Councilman Johnson: Because that may be open shortly. Like next month. They
may be accepting as early as next month. They may be accepting paper down in
Chaska for that. They've got the building and the equipments' on order. The C
' County Board has approved the money. If that becomes a reality and that's
actually a cost savings, maybe that will help.
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City Council Meeting - August 14, 1989 '
Lynn Morgan: That's fair.
Councilman Johnson: But any approval, I think we should have it contingent on,
if it ends up being a cost increased to you, you know we have to have that
within our minds also. Of course that's not the plan of the County to make it
more expensive.
Councilman Workman: The way I understand it, a bale of this paper is going to
cost more than straw. '
Councilman Johnson: Yes. It will cost more than a bale of straw. It will
absorb 50% more than straw and you know, economically you have to use 50% less.
A bale of this also will, on a pound for pound basis, it absorbs more than straw
on a pound per pound basis. A bale of this weighs 50% more than a bale of
straw. When it gets on down to it, your actual cost is about half of what straw
is according to the studies in Wisconsin, if you can trust them Wisconsin...
Lynn Morgan: I was born and raised in Madison so I'm really getting it tonight.
Councilman Workman: I'll tell you what Jay, if curbside is stopped and I'm in '
Chaska a lot, there's a place in Chaska. The (Mardian Angel's shed off of 1st
Street, down by the dyke, they are paid plenty for their newspaper because those
gentlemen down there sort it. It is clean and they are paid for a semi load of
newspaper. People are getting paid for it. Maybe we need that kind of
initiative and that money goes to the church and those guys love it. So there's
ways of doing things I think.
Councilman Johnson: What do they do with the glossy stuff?
Councilman Workman: Chuck it. But what's being done with it when it goes into
our recycling? Are they mixing that all in?
Lynn Morgan: It depends on where it goes. The box board mill, Waldorf at '
Cretin off 94 for example throws it all in the soup. Into a hydropalper which
is sort of like the ultimate blender. They don't have a problem with glossy in
there but those clay coatings do come out as a contaminant out of the system.
The newspaper from the United States that goes to Korea or goes to Mexico is
generally put on sorting tables or sometimes just on the floor and people do
pull out that coating material and discard it.
Councilman Workman: I'd be interested to find out if the newspapers that do
business in our fine city are using recycleable paper.
Councilman Boyt: From that standpoint, the City ought to be using recycleable
paper when you get down to it.
Councilman Workman: The City of Chaska does. They have a recycling program. '
Mayor Chmiel: Okay, what's your pleasure?
Councilman Boyt: I would make a motion that the City Council approve a contract
at the higher rate to extend through October.
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• , City Council August 14
g - g 14, 1989
Councilman Workman: I'll second that.
' Councilman Johnson: Are you going to put anything in there about the cost
changes if Carver County requires within that time period that...
Councilman Boyt: I think it's going to be pretty minimal.
Mayor Chmiel: It might not be bad to have in there. Whatever is minimal.
' Councilman Boyt: Okay. I'll accept it.
Councilman Workman: Second.
Councilman Boyt moved, Councilman Workman seconded to accept the price increase
for curbside recycling from Waste Management through October with a clause which
will indicate that the City of Chanhassen will receive any cost benefits
resulting from using the new plant which will be opening in Scott County. All
voted in favor and the motion carried.
' COUNCIL PRESENTATIONS:
COMMUNITY SURVEY, COUNCILMAN BOYT.
Councilman Boyt: This should be fairly quick. There's a survey and a cover
letter that I passed out to you.
Mayor Chmiel: Which we've not had a chance to really look at.
Councilman Boyt: No. And all I'm proposing is that we put this on a future
' agenda. That you look it over and see if you like the questions. I think
there's some good reasons for doing this and I think we'd be good at it so. I
pretty much laid those out in the mono. I don't think there's a need to take
time to go through it all.
' Councilman Johnson: I was just sitting here correcting your typing.
' Councilman Boyt: Yes, there's plenty of that.
Councilman Workman: Are you suggesting that we're dividing up the city?
' Councilman Boyt: What I'm suggesting is that the Council would, we'll pick some
neighborhoods and some dates and the 5 of us would go out and hit the
neighborhood.
' Councilman Workman: Together?
Councilman Boyt: Yes. We're good at that. Well we wouldn't all go to the same
house. I mean that would be a little overwhelming.
Mayor Chmiel: It'd be amazing to see that the answers would be and how the
questions are posed.
70
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1 N�rV) vo LL- f& fi' -a(u.%4,5Lir O L 1-iGt-11-4A4j 5i--a i 5 )`-er
�. ,
�' 'Coors Hrewing to of oldeeC'�i C-0—o'�"'
ta�{. agreed Monday to buy the Stroh.
�r Brewery Co. for $425 million, a
r :� Y -, ,.,- • - - merger that could make Coors the i
third-largest brewer in the United
a
States and a contender in a shrinking•
4441°0111tek,
�� � � � market where sin means survival i
• Coors agreed to buy the Stroh,
': brands,container facilities and most: I■
of its plants,including the plant in Si.'
�+, ti, 4 4'-'"(`-- Paul with about 400 employees.Ana-
lysts expect that Coors will continue
'- to operate the plant
r brewery's president
Y S r + y - "*" Peter Coors,the• and chief executive, said the
' pro-
^x t 3 �"* r posed acquisition of most of Strelea , i
r - VP" ,4� assets would strengthen his comps-
,, t =s, , k a :.. ny's distributor organization,product-
- quality and brand names.
' "If we are going o
: 4 .- ° :` a �� + ` business long-term,we've in the beta
x" „r, ` j,.. -` said Coors.major and significant competitor,":
j } ; : r E> ,�; .
's `, In addition to buying Stroh's assets
' a. and brand names, Coors will also i
f 11 4 , _ r"' �_. t= i erit Stroh's unionized work foree
r 4Jl "v }. Year after the company roundly ,
z "TI-1 defeated a Teamster organizing drive
�-!„ " �, ,3' v. a at Coors'breweries in Golden,Colo.,
• v 01:"
". """"" and I I years after a nationwide labor ,
X04. „ � u '. ,s4 41 r 1' ' boycott of its products
i4 Wt �' m
a
t `` At Stroh's, 2,900 of the 4,400 em-• I
`Y` A' � .. dT ,444,t4-,...,_,e,�w 4..._ d #fir
'"�-,. t � ,.T `,?""" -- Coon continued on page IOA•
Associated Press {
.
D opening day of the Supreme Soviet,legislators met with President Mikhail Gorbachev to discuss their concerns about his perestroika reform
LecTec may buy
rit
m.The Supreme Soviet is meeting at a time when Gorbachev is under political pressure to demonstrate the effectiveness of perestroika.
LeeTee Corp.
$ at'the inflated official rate)or "The dynamism of the economy this ket and in production have Carl Pohlad says he has of-
nore a month —more than three year has been steadily falling in many grown," nificant changes within the next 12 feted to acquire Minnetonka-
mes the average wage — and ee major areas, social tension has in- Outlinin months,including an end to some of based Le-cas Corp,in an alt- I i
,m $92 billion bond issue, the Outlining government plans to pay the Soviet Union's chronic shortages stock,no cash transaction
a 's first, Finance Minister the creased losing its balance) economy more for agricultural produce, to of many basic products.
8 and then buy another,uniden-
Pavlov told lawmakers. open new consumer goods factories, titled medical business.Lac-
to convert munitions plants to civil- But Voronin also acknowledged that Tec says it is considering the
"Against the kP'ty Premier Lev Voronin said, trends,deficits on the consumer mar- from abroad,Voronin promised sire g offer.Page 1D.
8 Soviets continued on page l 3A
Ong (plants) survive Almanac Recycling l'ng bill appears .
ties for Minnesota winters Tuesday,September 26,1969 near�„ S 269th day;96 to go this year passage at long last -=
t I peratures dipping to 34 continuing their painstakingly slow Sunrise:7:05.Sunset 7:04 g . ;I
gees a few days ago,even colder in efforts to breed stouter plants that Sunny and cool.High near 60. By Steve Brandt
v-lying spots. will stand up to the cold of winter(or Staff Writer eluded in the tax bill scheduled to be
at least survive it). Comics 4 5E Obituaries 4B taken up later this week by a special
ii a next couple of days
session.
highs in the couple o and lows in Movies 10D TV,Radio 65 Legislative leaders have approved a
Although their efforts won't extend compromise that could result in pas- The bill imposes
a plant-killing freeze could the five-month growing season,the Complete index 2A sage of a recycling law for Minnesota, a 6 percent tax on
It
here by Friday. research is providing a greater variety after 20 years of effort. m garbage bills that is expect to raise
of plants that can live in Minnesota. Classifieds almost much million for recycling. It J
to natures drop,however, 372-4242 The last remaining differences were ttiiesesThey will start money to coue-
i0 s and horticulturists at the Circulation 372 4343
iv 0 ty of Minnesota are negotiated late last week by legisla- a goal of programs to meet
Plants continued on page 1 OA Copyright 1989 Star tors assigned to the task by their recycling 35 percent of their
Volume VIIIiNumber 175 6 sections leaders.The recycling measure is in- Recycling continued on page 13A
i '�; I
t
ICI
i. -_�it 1 I
�-... .. .... .-.. . .. , _ - - I
--- USIA11u-,IIIIDA 9 Kill iu{1G wc. ,gavrr• col rev v.......1...1.;sii :
ioN isagsip ,et 1 aioui op sa3ue!!dde pf�uaM3lIJ sdAepo,L -
C
y++mantypo dissuaden equ d officialexy `
n _
urld nations from using bardmentofthethin- Recycling
chemical weapons. mountain slopes.But a
said it was designed . •
message to Aoun that Continued from page 1A i
r• d fall apart if the Chris-
' ,Q not stop their cam- garbage if they are in the Twin Cities
•
the Syrians." area or 25 percent if they are else- 1 t 4. f
r where in the state.
ague envoy, Lakhdar s e
c it -"x nnounced after a one-
The bill also bars cities and counties
x4- •� I ' ss= ing with Parliament from enacting new restrictions on ,i r
-.1 .ssein Husseini, a Shiite plastic packaging of food until next
as
v `1 t at Lebanon's Parliament July That's when ordinances in Min-
�' Saudi Arabia on Satur- neapolis, St. Paul and several sub
" political reforms aimed orbs take effect. lir t- a l4 year old civil war_�.- ;' Similar provisions were included in a
.. ed a major advance in recycling bill that died with the expi-
I i; the 22-member Arab ration of the 1989 regular session #
l` x t bring Lebanon's feuding when Rep. Peter McLaughlin, DFL" _ether and create a formu- Minneapolis, filibustered against it.
s } reuniting the fragmented .The issue was how much of the bill 4 g 4 for recycling in rural counties should ;
a» be paid by richer, more populous
g an shelling was a graphic •counties. - i
t ! hat nothing is certain.
; , Hennepin County, for example, ` i
€ police spokesman said would have contributed at least four
-�" # , witzer batteries hit the ,times as much money through the r . ''' ' e
area in a 45 minute bar- recycling tax as it got back. r x
i ended at 7:45 a.m. An i
+ four shells hit the woods 'Under a compromise worked out - i
I ` .ome shells exploded with- this past summer by the Association , f
.f the hilltop Bustan Hotel ,of Minnesota Counties and proposed
.himi is staying,a by Gov Rudy P
yi g police Y Y Perpich as part of his
n said, tax bill,counties are supposed to get
. ..i i ,J 'back at least half of what they're
ing was the first serious :taxed.
I
- ,- of the cease-fire since.it
Saturday. It prompted 'Metropolitan counties such as Hen-
ne in, which have higher
have many beautiful to urge"all sides to abide bills because they've invted heavily
ass-tire .and to believe r ]gqdds jaC•
ms duringHirshfield$ e is a new chance for in programs to divert garbage from � " 7Y; is . I.
cal Blinds Sale: • landfills, say that inflates their tax - • ;�f`,Th ,
contribution. In Hennepin's case, t-ri I iii j+1 it
those garbage bills include a charge + f t
+ose a fabric that lets the . '-t •t
•was called last week by a rg � �• ��� ) t.<• 1
filter gently in—or o
tuber Arab League commit- for running recycling programs,so a y ti• I j 1i•'h. _
ed to find a settlement to tax on that bill would mean paying 9 e >r%;('J,'
•omplete privacy war,in which more than • twice for recycling. ` 1.,-, ' %+ i'• :
<
your own wallpaper or people have been killed ee 'Legislative leaders assigned a group ' �J 1 ,..,
u'as a custom insert. dathe least
artillery million
battlesutthat "''1'4,4 = .''%'' l`.
of legislators who work on garbage- .ei, j
larch 8 have resumed to Bei- related legislation to review the asso- ITS r r� i -
+Icct solid vinyl i l; I
inserts elation's plan.They pushed back the t' Y$ )iii,�11,
ireenergy ef efficient&ad, starting date for the tax from Oct. 1 1 .
%atdem -,. 1., t to Jan.I. { ,.'1,i.t �jl itr! 1
'r ie ,Choi u'' Under the association compromise, ; 1`y � I :i t� 1,11,, Ill
.t 1 • -
l Bonds.But h Have each county would get a minimum J� a t -
iiIS ut7- of$27,500 in the current state fiscal ;i::;„1--:;._=,; �ff 1 '}1
' year and $55,000 in fiscal 1991. y f i . !i 7 tt
• "' • Counties would get additional money
based on population. � + iii
lye■ Some Hennepin County officials ' r � ' f!_ !f ,111
doubt that the county would get 50 ,,t i ;' tt 1
percent of its contribution back un- 5...-- �� ft• - f
der this formula.The state calculates ' ,-1 1
oats by that the county would contribute { , t `
�)�S between back million and $8 million 1
j and get back$3.45 million.But coon- hk� 1 t 1f
Hokd,*Squareston. re in ty officials say their residents could - .-.7,:. #•- - - {
Celt Rd.C&Snelling - - pay up[o$9.5million. - F7{{( lr t; :r
iennepin•2024 S.Robert i +
"'n'Maplewood•Southdale - oga ny One of the issues resolved by House " ? t - -
i'ti•&d4edak•Bmnsyne Speaker Robert Vanasek last Friday
riches was how any excess raised by the :`.
garbage tax should be used.The asso-
ciation compromise called for 75 per-
g e For - cent of any amount over$30 million When Jim Lidstone proposed to Kari Registered Phy
to be divvied up among counties to last summer,there was nothing standing in with his limp le__
assure that all get back half of what way a their wa to happy life
s• they raise,a clause backed by Henne- ppY e together.Then, tone while his body
• pin. The rest would go to the state Jim had a motorcycle accident.His neck trauma.As he slows
treasury. fracture caused nerve damage.His hands tered Occupati
wouldn't grasp.He couldn't walk.He him regain arm d
it But Rep.Phyllis Kahn,chairwoman couldn't even stand. No one knew
of a division of the House Appropria-
)0= 9 - Jim wouldn't be able to meet his bride Eventually,his t
day! [ions Committee, wanted to limit
_ how much of the excess tax would go at the altar that fall as planned.
He began intensive rehabilitation at tion plus the s • f
■ back to counties.when she and Mc- nurses and the s
":0.' Laughlin couldn't agree,Vanasek set the Institute for Rehabilitation Services at off.He could s t
y a$5 million limit. Methodist Hospital.From his bed, therapists bega
L CREDIT UNION 1
The bill is expected to provide about
-DISPATCH 1
=RALCR DTUNION $6.7 million through mid-1991 to
several state agencies for efforts to
ORKERS i recycle, find markets for recyclable
materials and handle hazardous THE IN
OMPANY wastes.It adds s 22 positions to those
RICERS LOCAL Sto - i agencies.Attempts to create a state-
r UNION 18 Normandale Boulevard wide recycling program date back 20 �
'UNION -coon of 1-494 S.100 years,hut have been stymied in the REHABILI
5 Sun. Thursday Nights WI 9 Legislature by opposition to a deposit
uP LOYEES can Express•Diner's dub - on beverage containers.The current t
ent Plans With A recycling proposal was developed in �~
Approved Credit
large pan last year by Perpich's Select VMETHODIST HOSPITAL
'S CREOrTUNION dance, committee on Recycling and the En-
vironment.
CANADA
"EDIT UNION .._
'Sl�OUF - _ - •