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4.5. SR 01-17-2012REQUEST FOR ACTION TO ITEM NUMBER Mayor and City Council AGENDA SECTION MEETING DATE PREPARED BY Consent anus 17, 2012 ustin Femrite, Ci En ~ eer ITEM DESCRIPTION REVIEWED By Equipment Lease Agreement with East Side Oil Company for Rebecca Haug, Environmental Used Oil Collection Station at Compost Site. Administrator; Mark Thompson, Assistant Street Su erintendent REVIEWED BY Cal Portner, Ci Administrator ACTION REQUESTED Approve the attached Equipment Lease Agreement with East Side Oil Company for a new oil collection station to be located at the compost site and authorize City Administrator Portner to execute said agreement. BACKGROUND/DISCUSSION Currently, the city has a used oil and antifreeze collection station, fox public use, located at the Public Works Facility. This station allows for the public to properly dispose of used oil, oil filters, oil containers, and anti-freeze. This tank was originally installed in part through a grant from the County in 1999. The existing oil collection station is pictured below. The expansion of the Public Works Facility has required staff to evaluate a new location for the oil collection station. In our review of moving our existing station to a new location, it has been determined POMfRE~ AY A~'UR the existing station does not meet current requirements fox ADA and MPCA permit compliance. In addition, the street division staff's commitment for monitoring, maintaining, and cleaning up spills has increased over time. Staff inquired with neighboring communities and counties about other options they have used to continue to provide this service. East Side Oil Company (ESOC), of St. Cloud, Minnesota, received very high reviews from everyone staff spoke with. ESOC is the only company in the state who offers a full service oil and anti-freeze collection station package as pictured below. ESOC currently has 46 public stations, similar to the one pictured, installed throughout the state. Their station comes free of charge and includes full maintenance and oil pumping services. ESOC is licensed and insured for providing and operating these public drop sites. Their collection station and associated signage was designed in cooperation with the Minnesota Pollution Control Agency and fully complies with all of the MPCA's requirements. Staff recommends approval of the attached agreement which would allow ESOC to deliver the new station to the site and take over the maintenance of the facility. Staff has confirmed that Sherburne County does not have any issues with the city retiring the existing oil collection station. ESOC, who currently pumps the oil from our station, will remove the existing tank from the site. If approved, the new oil collection station would be located within the new compost facility just southwest of the public works facility. This keeps the public drop site for yard waste and oil together in one location; furthermore, it will offer added security to the oil drop site. With the exception of a new location, the only service change the public will notice is an `at your honor' money collection box that will be affixed to the station.. This collection box is intended to collect money from people for the disposal of oil filters, oil containers, and anti-freeze. The city will retain this money to cover the cost of providing the dumpster at the station. Currently, this expense comes directly from the streets division operating budget. Staff recommends approval of the attached agreement. Upon approval, ESOC will construct the new station and deliver it to the site. FINANCIAL IMPACT There axe no financial commitments fox entering into the agreement with ESOC. ESOC retains the ownership of the station equipment. The agreement states that ESOC will fully maintain the station with limited monitoring from city staff. ATTACHMENTS ^ Equipment Lease Agreement ^ East Side Oil Company Equipment and Services Brochure Action Motion by Second by Vote Follow Up East Side Oil Company Equipment Lease Agreement This equipment lease agreement is made this day of , in the year of 20_ between East Side Oil Company, (ESOC) of St. Cloud, Minnesota and (Lessee) of .Minnesota. 1. Lease of the Equipment. ESOC leases to Lessee, for installation and use upon the premises located at ,now occupied by Lessee, the equipment set forth below: Permanent ID/Serial # stamped on tank is 1-1990 Gallon double wall UL tank $16,235.75 - Signage $1,417.86 - Vents and Gages $ 279.70 - Cover & assembly parts $ 2,300 Note: This is replacement value if equipment were to be damaged, lost or stolen: $20,233.31 Rent. Lessee need not pay rent for the equipment so long as Lessee continues to recycle oil with ESOC. 3. Disclaimer of Warranties. ESOC hereby expressly disclaims any warranties or representations, express or implied of merchantability or fitness for a particular purpose. 4. Repair and Maintenance. At its expense, Lessor shall maintain the equipment in good working order and repair. 5. Title to the Equipment. Title to the equipment shall at all times remain in ESOC. The equipment is and shall remain personal property, in espective of its use or manner of attachment to realty and Lessee agrees that it will not permit the equipment to be permanently attached to the realty without ESOC's prior written consent. 6. Liens; Assignments; Claims. Lessee shall: • Keep the equipment free and clear of all liens, encumbrances and security interests and shall not remove it from the premises described in paragraph 1 of this lease agreement or do or permit anything to be done which might operate to prejudice ESOC's title; • Not transfer, deliver or sublet the equipment to any other person or corporation without prior written consent of ESOC; • Not assign any rights hereunder to any other person or corporation without prior written consent of ESOC; • Comply with all laws, ordinances and regulations applicable to the equipment and the use thereof; and • Indemnify and save ESOC harmless from all claims, suits and liabilities of every character whatsoever arising from the operation and use of the equipment. 7. Interstitial Space. Lessee will monitor the interstitial space reading; keep proper documentation in accordance with the Minnesota Statues and the Minnesota Pollution Control Agency. A copy of such readings must be faxed or mailed to ESOC on a monthly basis. 8. Inspection. Lessee shall permit ESOC's agents to enter upon lessee's premises to inspect the equipment at all reasonable times. 9. Term and Termination. a. The term of the lease shall commence immediately and shall continue on effect until either party gives 30 days notice of termination to the other party, unless terminated pursuant to sub-paragraph (b) of the paragraph 9.ESOC at its sole option, terminate this lease agreement, effective immediately upon the occurrence of one or more of the following events: • Lessee breaches any of its covenants in this lease agreement; • Insolvency or bankruptcy of the Lessee; • The making by Lessee of any assignment for the benefit of creditors; • Appointment of a trustee or receiver for Lessee or for a substantial part of its property, with or without its consent; or • Institution by or against Lessee of bankruptcy, reorganization, arrangement or insolvency proceeding of which Lessee is the subject. b. Upon the termination of this lease agreement, Lessee shall immediately allow pick up of the equipment with all parts and attachments thereto ESOC. If Lessee should fail to allow pick up of the equipment upon termination of this lease, ESOC shall have the right to enter upon the property of Lessee at any time and remove the equipment therefrom and without liability for trespass or damage in connection thereof. 10. Entire Agreement. This lease agreement constitutes the entire agreement of the parties. Lessee acknowledges that no representations or warranties have been made by ESOC except as set forth herein. No modifications of this lease agreement shall be binding upon the parties unless in writing and signed by the parties to be charged. 11. Construction. This lease agreement shall be construed in accordance with the laws of the State of Minnesota. Lessor: East Side Oil Company By: Lessee: Date: Date: (Signature) EAST SIDE OIL COMPANIES RECYCLING DIVISION 320-252-9711 SELF SERVICE FULL SERVICE Used Oil Used Filters Used Antifreeze Spent Sorbents www.eastsideoilcompanies.com '_ I~ J ~~ J 1 .' Services There are many used oil col- lectors operating today; yet few are true full service recy- clers. East Side Oil Companies Recycling Division offers a complete line of petroleum and petroleum related recycling services second to none. tally important that all of the material your operation gener- atesare legally loaded, trans- ported and recycled properly. With our trained team of ex- perienced staff along with a fleet of unique equipment, your decision will be easy to make and one you' 11 be happy with each time you call for service. Whether it is full- service or self-service, just by recycling your used oil with us you've helped keep your com- munities environment clean. By doing this you also support future funding for additional public drop site locations. With the strict government regulations of today, it is vi- Full Services Our Service: We vacuum you tank com- pletely dry each and every time it is serviced, assuring you that the heavy metal sludge and water is being re- moved preventing corrosion on the bottom of your tank. Their Service: Other recyclers only go deep enough into you tank taking only the oil and leaving behind the expensive disposal of the heavy metal sludge. However, even more importantly, they are also leaving a layer of water that lies on the bottom of every storage tank. This water will eventually promote corrosion in you tank from the inside. Self Services . Used Oil The Minnesota Pollution of drinking water. Not to by constructing a number of Used Oil Filters Control agency believes that mention the countless num- public used oil drop sites Used Antifreeze 600,000 to 2,000,000 gal- ber of used oil filters seep- that never close. These sites . Spent Sorbenas Ions of used oil is illegally ing oil in our landfills. are currently operating in . Oil/water Mix dumped in Minnesota each East Side Oil Companies many counties in Central Gas/water Mix year. And just one of those Recycling Division has Minnesota with more to gallons can contaminate as made a huge commitment in come. Oxy phase gasoline much as 1,000,000 gallons solving this public problem Tank Bottoms • Sludge, etc. 24 H~~ D~o~ Site Locations ;. a ouote East St. Cloud / Aitkin /Alexandria /Anoka /Barrows /Baxter Used Oil -Free Becker /Belgrade / Brainerd /Brooklyn Park / Browerville F i 1 t e rs - S0. s o Buffalo /Clear Lake /Cold Spring /Crosby / Crosslake Antifreeze - $1 f g a Crow Wing County /Detroit Lakes /Eagle Bend /Emily /Garrison Granite Falls /Grant County / Holdingford /Isle /Kimball Litchfield /Long Prairie / Melrose /Mission Township /Montevideo New York Mills / Nisswa / Onamia / Paynesville / Pequot Lakes Pine City /Princeton /Rice /Santiago / Sauk Centre / Sebeka St. Joseph / Wadena /Walker / Willmar / Zimmerman PLEAS E RECYCLE 1 City of Clear Lake Above Ground Public Site Located at 7684 1st Avenue North Clear Lake, MN (Near City Hall) Grand Opening Date July 8th, 2009 EAST ~E 593 COMPANI Used Oil Recycling Division 625 SE Lincoln Avenue St. Cloud, MN 56304 Phone: 320-252-9711 Fax:320-252-0653 Toll Free: 888-252-6983 Web: eastsideoilcompanies.com ES Drippy says "Do the -- right thing Recycle your used oil and filters properly." Our above ground tanks are a doubled walled and are UL Listed. The outer perimeter has been reinforce with additional steel for added tank protection. They have a 1,990 gallon capacity and are equipped with a primary and secondary emergency venting system. There are two easy to read gauges, one is for checking the level of used oil in the tank while the other is used to monitor the interstitial space. The interstitial space testing is conducted monthly to assure there are no leaks in the tank. 1 of 2 emergency vents Gauge for monitoring interstitial space. Easy Access All public sites are designed for easy access and have user friendly directions for disposal. The tank is 7' . 5" in width and 16' S" in length. Public sites are at tail gate height. This assists people to have control while they are pouring. Used oil is poured into a large receptacle with custom made drainage posts. Filters are contained in a 55 gallon drum with a swing lid. The swing lid assures that the barrel will continue to be covered. Antifreeze is poured into a 55 gallon drum with attached funnel. Where does it go? ~1 U r~ U Oil Filters Oil Filter Processing Machine . The "Kruncher" will process six 55 gallon barrels of used oil filters per hour. . The crushing process removes 99.5% of all remaining oil. . We recover approximately 12 gallons of used oil per barrel. . The "Kruncher" turns out a 4x4x7 inch brick, weighing approxi- mately 121bs. . The filter bricks are then shipped to the steel mills, where they are smelted into new steel. Used Oil The used oil is collected and batched in one of our nine 50,000 gallon double-walled u un- derground tanks. Then it is filtered to remove de- bris and solids. A sam- ple of the used oil is then sent to the lab to be tested for such things as heavy metals, chlorinates and PCB's among other carcinogenic substances. Once favorable results are returned from the lab, the used oil is loaded in 7500 gallon transport truck quantities and re-used as an industrial burner fuel (mainly for heating Hot Mix for our roads). The oil that may have been in your vehicle has now completed the full circle in the Resource Recovery System. The greatest reward of all is that out environment was kept clean. v~, a EAST ' SIDE ~~~ OIL COMPANIES Used Oil Recycling Division 625 Lincoln Avenue SE St. Cloud, MN 56304 Phone: (320) 252-9711 Fax: (320) 252-0653 www.eastsideoilcompanies.com Lohts 1-2-3 Irrterieek.wkl 4,000 GALLON DOUBLE WALL. USED OIL TANK IMPORTANT NOTICE: The Minr-esota Pollution Control Apeocy requires that this used oI1 tank be bested roach month for leaks. TMs bast ks marrdabory and a copy ol. the leak best rgdlnq must be fared bo East Skie OU Company try ttte Sbh d asch march for perrnanertt f W~p- (gK taminaEed ktstruction sliest for procedure for dok~q leak bestj YEAR 2 ~ 0 9 MONTH DATE LEAK TEST PRINTED NAME S NATURE JANUARY 1 -01 -0~1 OK John Doe FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER FOR EAST SIDE OIL COMPANIES USED OIL RECYCLING DMSION USE ONLY END OF YEAR: ANOD READING (REQUIRED EVERY 3 YEARS) CORROSION DETECTION READING EAST SIDE OIL COMPANY REPRESENTATNE SIGNATURE DATE ~~ ~~~ East Side Oil Companies provides all public sites with the following: *1990 gallon UL Double Wall above ground tank. * Gage to read used oil levels. * Gage to read the interstitial space. *Cash box *55 gallon drums with lids and graphics for used filters & antifreeze. *Signs explaining proper recycling procedures. Our partnerships are very important to us. We encourage our partners to call us with any concerns so we can work together and remedy any situation. ~~ ~~ Each Public Site Partner Is Responsible For The Following: *Designating a person to check interstitial space monthly and fax data to ESOC. (320)252-0653 *Calling for service when oil tank is 1/2 full and or filter & antifreeze drums need to be emptied. *Provide a lock for the cash box and empty. *General upkeep of site. You are providing a much needed community service. People know how important these public sites are to our environment and tend to be very careful when recycling their used oil etc, however accidents can happen. In the case of a sizable spill ESOC will assist in the clean up. Minor spills and tidiness are the responsibility of the recycling partner.