Agenda - Council - 10/22/1991 - Laserfiche WebLink

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The "Purchase and Sale" Agreement recently drafted by the Anoka County Attorney's office contains an indemnification clause that reads: "Waste Management agrees to Indemnify and defend the County of Anoka, City of Anoka and City of Ramsey ... from all liability ... that may in any manner result from or arise out of the operation ... in the past or in the future ...". This agreement has been adopted by the City and County of Anoka, and if adopted by the City of Ramsey, would supersede the original agreement of October 10, 1983 and transfer all past, present and future liability for the pipeline and operations to Waste Management. While there is no guarantee the County and Cities would not be named in the event of a claim arising out of the pipeline or its operation, the agreement does spell out the intent of the parties involved. Quit Claim of Pipeline Easement An easement was granted to the Landfill Board by Waltek, Inc. across property described in the attached Quit Claim Deed. The Anoka County Attorney's office has prepared this Quit Claim Deed for the purpose of now conveying this easement to Waste Management of Minnesota, Inc. C.D.B.G. Capital Expenditures The City's CDBG Agreement states in part, any real property that was acquired or improved in whole or in part with CDBG funds in excess of $25,000.00 shall be disposed of in a manner which results in the agency being reimbursed in the amount of the current fair market value. In a discussion with the County Community Development Manager (coordinates CDBG Program) it was her opinion that the pipeline sale would be subject to this test. She further advised that fair market value could be determined by offer for public sale or appraisal. As offering for public sale is not a practical solution, City Staff has brought this concern to the attention of Mr. Tinklenberg and Pam McCabe, Assistant Anoka County Attorney, for resolution at the County level. Methane Usage and Waltek, Inc. Under the terms of the agreement with Waltek, Inc. and the Landfill Board, the security interest of the Landfill Board and the equipment acquired by Waltek (with funds provided by the Landfill Board) is released as of the agreement termination date, As this agreement has terminated, the Landfill Board no longer has any interest in the equipment held at the Waltek, Inc. site. A state grant of approximately $100,000 was provided to cover the cost of the purchase of the generators at the Waltek plant. This grant was to be repaid if the cities of Anoka and Ramsey and Anoka County were repaid in full for their original CDBG investments. As the proceeds from the sale of electricity to Waltek and Anoka Electric during the term of the Joint Powers Agreement were not sufficient to repay the initial investment by the local governments, there is no further obligation to repay the state grant. The Anoka Regional Landfill Board - Monthly Generation Report and Comparison handed out at the last meeting indicates a significant decrease in production, total sales and sales to Waltek, Inc. for the year of 1989 as compared to 1988, and the same is true when 1988 is compared to 1987. The project did demonstrate the viability of a methane extraction and utilization program, but it is our understanding this process requires continuing technical assistance and equipment modification/upgrade to be economically viable.