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I <br /> I <br />'! <br /> I <br />'1 <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> <br />INFORMATION REGARDING LANDFILL ROYALTY PAYMENTS <br /> <br />By: William K. Goodrich, City Attorney <br /> <br />BACKGROUND: <br /> <br />As you know, the City receives a royalty payment consisting of 10% <br />of the monthly gross revenue received by the Anoka Regional <br />Landfill. This percentage is deposited into the City's Landfill <br />Expendable Trust Fund. This payment is pursuant to the 1984 <br />Purchase Price Payment Agreement between the City and Waste <br />Management. The Agreement permits Waste Management to deduct, <br />prior to determination of the monthly gross revenue, ". . . any <br />tax, fee or surcharge imposed by federal, state or local <br />governmental authorities . " <br /> dis-osa'Pl In May, 1989, the MPCA required <br />owners <br /> of <br /> solid <br /> waste <br /> facilities to establish financial <br />assurance for closure and post-closure care at a facility. Waste <br />Management has elected to supply a Letter of Credit to meet its <br />financial assurance requirement. The MPCA and Anoka County required <br />that this financial assurance be in the amount of $6,714,662.00. <br />Waste Management has determined that based on the gate yards <br />capacity at the landfill, the Letter of Credit requirement costs <br />$2.71/gate yard of fill. Waste Management is therefore deducting <br />this amount as a tax or fee and then figuring the monthly gross. <br />This, of course, significantly reduces the revenues to the City. <br />The City of Anoka's City Attorney has contacted me concerning this <br />issue and correspondence between Anoka and Waste Management has <br />taken place. I will be meeting with the Anoka City Attorney <br />shortly. We hope to arrive at a common position to present Waste <br />Management in an attempt to resolve this issue. I will, of course, <br />review this issue with you more thoroughly when we arrive at a <br />final recommended position at which time I will request formal <br />Council direction. <br /> <br />COUNCIL ACTION: <br /> <br />The above is presented for your information in order to keep you <br />current on this issue. No formal Council action is necessary at <br />this time. <br /> <br />Review Checklist: <br /> <br />city Attorney <br />city Administrator <br /> <br /> <br />