Agenda - Council - 10/08/1991 - Laserfiche WebLink

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I I i I CLOSING DOWN OF THE WASTE MANAGEMENT/ WALTEK METHANE PROJECT By: Ryan R. Schroeder, City Administrator CASE #/ Background: City Council will recall that some time ago the City of Ramsey, the City of Anoka and the County of Anoka entered into an agreement with Waste Management of Minnesota, Inc. and Waltek, Inc. in order to do a pilot project resulting in a delivery of methane gas to Waltek from Waste Management's landfill in order to power Waltek's production machinery. I I I I I I ,I I I I I Recently the County of Anoka drafted a purchase and sale agreement, which is attached for your review, of which Council ratification would result in passage of ownership of the methane line to Waste Management in return for a waiver of liability. The Anoka County Division Manager of Public Services, Mr. El Tinklenberg, has requested to appear in front of the Council in order to discuss Ramsey's approval of this sales agreement. For your information, to the best of our knowledge the original ~project cost approximately $318,929. Of that amount, $127,491 was for the purchase of generators at Waltek. A total of $138,443 was for construction of the methane line and the balance was for insurance, engineering, administration and operation costs. Apparently the City of Ramsey contributed $60,078 in Block Grant funds, the County contributed $77,783 and the City of Anoka contributed $30,539 for a total of approximately $168,400. Additionally, there was a Minnesota Trade Grant in the amount of $100,000 that went towards the purchase of the generators. Currently the project account has a balance of $34,239 and upon passage of the agreement, the City of Ramsefs Block Grant account would be entitled to $12,185.57, or 36%, of the account balance. Eighteen percent (18%) would go to the City of Anoka and 46% would go to the County of Anoka using the same percentage formula as the original contribution in the project. At present, Staff has not received information as to the value of the methane that has been pumped through that line from project initiation until the present time. We are also uncertain as to whether there are federal restrictions on release of the capital item (the methane pipeline itself). We are told that this information will be available by Mr. Tinklenberg. Recommendation: Prior to receipt of the above information, staff does not feel able to provide for a recommendation to enter into the agreement at this time. Further, it is contemplated that said information, if supplied, will require some time for review. Therefore, it is staff recommendation that Mr. Tinklenberg receive his opportunity to propose the sales agreement, but that the item be tabled until October 22, 1991. Council Action: Based on discussion. Review Checklist: City Administrator Finance Officer CC: 10/08/91