Dive Brief:
- Minneapolis is switching from its current recycling agreement with Waste Management to a five-year contract with local nonprofit Eureka Recycling, beginning next winter.
- Now in its first one-year extension of a three-year contract with Waste Management, the city is changing course after receiving bids from both Waste Management and Eureka, motivated by lowered processing fees, according to Minnesota Daily. The Star Tribune reported earlier that both companies proposed the same revenue-sharing split, but Eureka offered to waive its revenue share if processing costs outweighed the material’s value.
- Contract negotiations have just begun, according to Eureka Chief of Community Engagement Lynn Hoffman. Eureka has processed neighboring St. Paul’s recycling for 15 years.
Dive Insight:
Eureka already has a strong footing in the Twin Cities region, having made a name for itself with multiple contracts and, last year, through a summit by launching conversations about zero waste — a priority to that region’s municipalities.
Eureka processes its recycling in the Twin Cities, which comes with two substantial benefits: providing jobs, ultimately boosting the economy, and reducing carbon emissions as there is no need to haul materials in gas-guzzling trucks out of the region.
"The luxury we have … even though recycling markets are really tough right now … we’ve got three very viable recycling facilities right in the city," said Minneapolis Director of Waste and Recycling David Herberholz to Minnesota Daily.
He credited both companies for their ability to do the job and noted the proximity of both. But the nonprofit’s mission-driven focus including providing full-time jobs locally and their zero waste mantra, on top of lower cost, sealed the deal.
"They’re not trying to generate a revenue of profit, but they still have to meet a lot of the demands that … another business would have to meet," said biosystems and bioproducts engineering professor Barney Brett to Minnesota Daily.
