Minutes - Council - 05/08/2012 - Laserfiche WebLink

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Councilmember Elvig raised the option of the City leasing land to Eastside Oil Company, for a nominal amount, so the onus would be on Eastside Oil Company related to what happens on its leased property. Patty Carlson, Eastside Oil Company, stated they have offered this program to municipalities for 17 years and currently have 52 public sites in Minnesota. Since they have never considered leasing land for the tank, that option would have to be reviewed by their attorneys. She described the program, noting mixed oil has limited value and the RFP with the State of Minnesota for this zone is 90 cents per gallon Ms. Carlson indicated the 2,000 - gallon, double - walled tank costs $20,000 and the program results in forming a partnership with the City with limited staff resources to periodically monitor the tank. She indicated Eastside Oil Company carries a large liability insurance policy. Councilmember Backous expressed a reluctance to consider the proposal, noting it would only generate an additional $1,000 annually from what the City is doing now. He noted this does not seem to be a problem for residents because there are other locations to recycle oil, this proposal could result in residents leaving behind additional debris, it would add more layers of government, and consume staff resources. A majority of the Council spoke in support of the program, as long as the contract can adequately address the issues of liability, because it would provide a convenience to residents. The consensus of the Council was to support providing this service to residents and direct staff to contact City of Elk River staff to gain their input, to negotiate a lease agreement with East Side Oil Company that addresses issues of liability, and to also explore the option of leasing land to East Side Oil Company. 7.07: Discussion of Counter Proposal regarding the acquisition of property located at 8020 — 147 Avenue NW, Ramsey, MN for Right -of -Way purposes and future development - Portions of this case may be closed to the public City Attorney Goodrich reviewed the staff report and advised that under Minnesota Statutes, the meeting can move into closed session to discuss confidential or non - public appraisal data and acquisition negotiations. He indicated closed session discussion will relate to acquisition of property located at 8020 — 147 Avenue WN for right -of -way purposes for the Sunwood Drive Realignment Project. The closed session will be tape recorded and that tape will be maintained for a period of eight years. Councilmember McGlone returned to the Council Chambers at 8:14 p.m. Motion by Councilmember Backous, seconded by Councilmember Strommen, to move to closed session to discuss acquisition negotiations. City Council / May 8, 2012 Page 7 of 8