5.3. SR 07-18-1994
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1ft{ River
ITEM 5.3.
MEMORANDUM
TO: MAYOR AND CITY COUNCIL
FROM: BUILDING & ZONING ADMINISTRATOR
STEPHEN ROHLF
DATE, JULY15,1994~ ~Rrf
SUBJECT: GRANT REQUEST TO CONSTRUCT AN
ACTIVE GAS EXTRACTION SYSTEM
BY THE ELK RIVER LANDFILL
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The Elk River Landfill is requesting $70,000 from the City of Elk River and $170,000
from Sherburne County to construct an active gas extraction system. Due to public safety
concerns, it is likely that the Minnesota Pollution Control Agency, Sherburne County,
and the City of Elk River will all require the addition of an active gas extraction system at
the Landfill. Both the St. Cloud Times and the Elk River Star News had articles
regarding the Landfill's request, which are attached to this memo.
Besides removing an unsafe build-up of methane gas, there are two other possible
benefits from the active gas extraction system. One benefit is the gas extraction system
will actually pull volatile organic compounds from the groundwater; removing this
unwanted contaminant. The other possible benefit is the generation of energy from the
methane gas.
Action on this request was delayed until a financial analysis of the Landfill was
completed. The Landfill has asked that their financial situation be kept confidential.
Therefore, exact numbers will not be discussed. Dave Lucas, Sherburne County
Environmental Officer, and Lori Johnson and Stephen Rohlf from the City have reviewed
the Landfill's financial condition with the City's auditors. It was concluded that the
Landfill's cash flow is such that it is unlikely they would be able to construct the active
gas extraction system in 1994 with their own funds.
.
Because of the overriding public safety concerns, staff is recommending that the City
Council grant the Elk River Landfill funds to complete the active gas venting system in
1994. However, to ensure that the Landfill stays current with their surcharge payments to
the City and County, and to avoid situations that put them in a cash flow crunch in the
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
Elk River Landfill
Continued
Page 2
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future, staff is recommending that the following conditions be placed on approving the
grant;
1. That Elk River Landfill Inc. (the Landfill) is current and remains current with
surcharge payments prior to disbursement of funds for the active gas extraction
system.
2. That the costs of constructing the active gas extraction system is incurred before
the grant is disbursed to the Landfill.
3. That a mechanism, acceptable to staff, for the timely deposit of surcharge tax into
a fund is established.
4. That the Landfill does not make cash advances in the form of loans, grants, gifts,
contributions, etc., other than fees for actual services rendered to other companies
without prior approval by the City.
5. That ifthe Landfill is sold in the next three years, the City is reimbursed the grant
amount from the proceeds of the sale as follows:
1995- 100%, 1996- 75%, 1997- 50%, and 1998- 0%.
.
6.
That the grant money is disbursed in monthly payments over three years, where as
payments will cease if any of the above conditions are not met.
If the Council agrees with staffs recommendation, the City Attorney will draft a
contractual agreement authorizing the grant. Lori Johnson will send the results of the
financial analysis to the Council under separate cover.
cc: Amy Hadairis-MPCA
Gary Groen- Abdo, Abdo, and Eick
Dave Lucus- Sherburne County
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LANDFILL-COUNCIL
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~EaftY'''effort t()d~3Vlqi:..
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'metlilirie commen~l '.
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. One of th~ side effeCtS of putting biodegfadable
,material in landfills is tbatinethaDe ias: veiYl,..o
,.ammRhle ~~ explosive',,- is produced.; , '~~::
The Elk River Landfill is now at the pomt where
leaking gases have the potential to become a P\!,"~c. \~, .
safety hazard. The escaping gases pose no inuneQiatif;:., ., .
threat, but Sherburne County and the City of Elk. .'
River are taking action before they do, The twO~t
,joined to hire an auditor to determine if the l(l~~.t";:
operation has enough money to install a g8s colJ~'-
system at an estimated cost of $250,000, If the l~" .
doesn't have the money, the two governments w1D.' .,.. . ,
,
up the tab,
Collecting the gases in recovery weI1s should
pliminRte the potential public hazards. It also could .
have a side benefit - generating income which could
offset some of the costs of the collection system. .
.' Methane can be collected, compressed, cleaned and .
. sold for use generating electricity or as fuel for .
, heating. ,
Just how much gas the landfill will produce won't be
: know until recovery weI1s are installed. Generally,
landfills produce 40,000 to 32 million cubic feet of gas
. a day, depending on the size of the landfill and the
amount and decomposition rate of organic material.
The average is 2,5 million cubic feet a day,
Landfills are going to produce gas. It is only ,
,..-udent to act early to harness it for good, rather than I
-.ut for it to become a public safety problem. 1
The city and county deserve credit for working
together and acting early - two things too many
governmental units fail to do.
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