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Home My WebLink AboutPW07-361 - Original - SKCAC Industries - MOU re: Styrofoam Recycling Program Memorandum of Understanding Between City of Kent and SKCAC Industries City of Kent SKCAC Industries Kent, Washington 19731 Russell Rd S. 220 Fourth Ave S Kent, WA 98032-1117 Kent, WA 98032-5895 This Memorandum of Understanding ("MOU") has been entered into between the City of Kent, a Washington municipal corporation (the "City") and SKCAC Industries ("SKCAC'), a Washington non-profit corporation. RECITALS A. The City recognizes the need and the importance of the growing amount and the types of recycling done by its citizens and local businesses. The City has initiated programs such as "Kent Business Recycling" and "Kent Green Business" to assist businesses in their recycling efforts, and the "Household, Apartment & Condo" Recycling Programs to encourage its citizens to recycle. The City currently forecasts that the current landfill will be full within 10 years and a new site will need to be developed. B. The City also recognizes the importance of creating new jobs in the community and the value those living wage jobs can have when filled by people with severe disabilities that suffer from chronic unemployment in our community as well as across the state. C. SKCAC has created job training and employment opportunities for 40 years, granting local citizens that have developmental disabilities the opportunity to earn a competitive wage for the work they complete. SKCAC has recently focused upon the reduction of a current significant solid waste stream problem facing our community by recycling Expanded Polystyrene or Styrofoam and in the process creating living wage jobs that people with developmental disabilities can accomplish successfully. This undertaking is hereinafter called "the Enterprise." D. SKCAK has made the following representations to the City: 1. The Enterprise employment target over the next 10 years will be to create 200 FTE positions in the Styrofoam Recycling business. 2. The Styrofoam recycling market represents an emerging market, with a growing demand for quality product. 3. There are currently no businesses that actively recycle Styrofoam on a large scale in the State of Washington. 4. The Enterprise will require a coalition partnership with matching funding to get the program off and running and sustain it until it can become self supporting. Memorandum of Understanding - Page 1 of 3 (Between City of Kent and SKCAC Industries) (October 2, 2007) S. The Enterprise needs the municipal governments to assist in solving the logistical challenge of collecting and delivering the Styrofoam to the recycling center. 6. The Enterprise will require a long term commitment from the partners to ensure its success. 7. The goal will be to eventually focus on the entire recyclable Styrofoam waste stream that can be economically recycled. 8. King County disposes of 3,974 tons or 7.9M cubic feet of Styrofoam into the landfills each year or 4.4 cubic feet per resident. 9. The 10 year goal will be to capture and recycle up to 50% of the current Styrofoam waste being generated and reach sustainability. 10. Stage 1 recycling is low tech in nature, light weight and labor intensive, which can be ideal work conditions for some people with severe disabilities. 11. SKCAC will utilize existing technology and establish a market knowledge expertise with the product. 12. SKCAC intends to create a self sustaining Enterprise that can be modeled and replicated across the State of Washington. 13. The capital costs for Stage 1 and Stage 2 equipment and facilities are estimated to be $2.5M and will provide the necessary resources to serve King, Pierce and Snohomish counties. 14. The Enterprise will begin with Stage 1 recycling and may advance to Stage 2 recycling by creating the Polystyrene beads used in the injection molding process. 15. The Enterprise may work in conjunction with King County, other local municipalities and state government. 16. It is SKCAC's goal to have a pilot project in place by the first of the year 2008. 17. In order to achieve this goal, SKCAC's Board of Directors have authorized the use of $50,000 as start up funds for the Enterprise, if matching funds can be secured. UNDERSTANDING OF THE PARTIES Therefore it is understood as follows: A. The City is not legally situated to make grants, must receive due consideration for any public funds expended, and is otherwise bound by the laws and Code provisions pertaining to procurement and contracting. B. Notwithstanding any statement or implication to the contrary, this Memorandum of Understanding is not binding upon either party in any way whatsoever. Memorandum of Understanding - Page 2 of 3 (Between City of Kent and SKCAC Industries) (October 2, 2007) C. The City finds, as a matter of policy, that the Enterprise proposed by SKCAK is likely feasible and, if implemented, would provide a public benefit, including a cost savings to the City and other benefits to residents of the City. THIS MEMORANDUM OF UNDERSTANDING is entered into this f31 day of Aeiewr 2007 CITY OF KENT SKCAC INDUSTRIES By By Ma r uze�t Cooke R. Mark Kantonen Executive Director P:\Civil\Files\OpenFlies\0177-2007\SKCAC-MemoUnderstanding.doc Memorandum of Understanding - Page 3 of 3 (Between City of Kent and SKCAC Industries) (October 2, 2007)