HomeMy WebLinkAbout5.c. 1990 Recycling Grant Application - � � �`-'�I � c�o aox 5,0
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�����a,�� ROSEMnUNT. MINNESOTA 5506€S
1/C 812--423-44t1
Agenda Item 5c.
TO: MAYOR, CITY �QUNCIL, CITY ADMINISTRATDR
FROM: QE�1N JpMNSQN, DIRECTOR OF COMMUN[TY DEVELOPMENT
DATEc DECEMBER 15, I989
SUBJ: DECEMBER 19, 1989 AG�NDA ITEM Sc.
RECYCLING GBANT APPLICATiUN
Attached are copies of an agreement, between the City af Ros+emount and
Knutson Rnbbish Service Inc, and an appl�cation to the Metropolitan Council
for a capital assistance grant. This item has been discussed previously and
the Council directed staff to pursue the project.
The agreernent between the City and Knutson accomplishes two things: it
authorizes the City to act as the Project Sponsor and it requires Knutson to
provide the required matehing funds. The purpose of the grant is ta assist
�n the acquisition of equi�menl, necessary to aperate a material recovery
facility. Knutson Rubbish Service praposes to construct an approxirnate
i�,O�tT �quare fo�t building t� house the recycling equipment, Total cost of
the facility, inciuding equi�ment is reearly $950,OQ�.
The grant provides a maximum of $150,000 �or capital expenditures and
requires an eqt�al match of "local funds." Knutson has identified total
capital expenditures of $308,18Q, whieh requires Knutson to provide $15$,180
in funding.
Finatly, a resolution is attached, which approves the agreement and
agptication and aut6orizes the necessary signatures thereon. Representatives
from Knutson Rubbish Service will be at the meeting to answer any
yuestions that may remain. The appticatian deadline t� Met Cauncil is
December 29, 1989.
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CITY OF RUSPMQtTNT °
RESOLUTIl7N Nf1. 1989 -
A RESOLUTION AUTHORIZTNt3 �PPLICATIQN TO TH�
METROPOLITAN CUUNCTL FOR A FISCAL YLAR 1989
GAFITAL ASSISTANCE t�RANT
WHEREAs, Knutson Rubbish Service, Inc. , a solid waste and recycli,ng
business located in the City of Rosemount, has requested the City
to aet as project spdnsor for a Cap3.tal Assistance Grant from th�
Metropolitan Council Landfill Abatement Fund.
BE IT BESOLVED by the City Council of tk�e City of Rosemount as
follows:
I. The City of Rosemount will act as projeat sponsor and submit
application to the Metropolitan Cauncil for a capital
assistance grant from the Fiscal Year 1959 Landfill Rba�.ement
Fund.
2 . The City Council approves the Ma�erial Recovery Facility
Agreement and autharizes the necessary signatures th�ereon.
ADOPTED by the City Council a� the City of Rosemount this day
of December, 1989.
Rollan Hoke, Mayor
ATTEST:
Stephan �ilk
City Administrator/Clerk
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��../'l� f) 2875-14bTH 5T. W.
�+ /� RQSEMpl1NT. MIlVNESQTA 55068
�cT��IJ�-�� 612--423-94ti
pgenda Item 7a.
��
TO: MAYOR, CITY COUNCIL, C1TY ADMIN[STRATOR 1''�� �
FR4M: DEAN JOHNSON, DIR�C'�'OR QF CUMMUNITY DEVELOPMENT �'�� � �
��
DATE: NOVEMBER 17, 19$9 �
Sl.►BJ: NnVEMBER 21, 19R9 AGEN1)A ITEM 7a,
KNUTSON RU$$iSH SERVICE, ING, RECYGLING GRANT
The City has been approached by Knutson Rubbish Service, Inc. (KRSI) to cansider
sponsorship of a recycling grant applicatian to the Metropolitan Council. The purpose of
the grant is to snbsidize the aequisition of equipment, neeessary to khe operaCion of a
private Materials Recovery Facility(MRF). The rote c�f the"local spcxnsor" is to act as the
:�ctu�il grantee c�f the prc�gram and assume awnership o( the cqi�i�meni far a sninimurrt
threc-year period. The grant prograrn covers a ma�cimum request pf $3(�},t�0, �r 5U
percent. ?he local sponsor is required to match the grant amaunt from Met CounciL
We have received a legal opinion that the City has no authority to provide the money for
a locat match, even if it were a loan to a third party, such as KRSi. The City and KRSt
cpuld enter inta an agre�menk, however,whereby KI�SI would �rovide the reqttired t'undin�
and the City wouId act as the locat sponsor. 'I"he City would stilt own the equipment for
three years, as required by the grant pro�ram. The City wauld likely reiinqui�h its interest
in the equipment to KRSI at Ehe end oI the �rant period.
As �art of the grant program initiative, KRSI proposes to construet a new recycling faeility
in Rosemount. The MRF, consisting of approximately 15,OQ0 square feet in area, woutd
be built salely and specifically for recycling purposes. Future plans inctude the construe[ion
of a separate facility for the cornpany's waste hauling aetivities.
KRSI is currently negotiating the purchase of praperty atong 16�th Street, adjacent to AAA
Atita Satvage. The Flanning Commission briefly discussed the potential use of this site, ak
the November 14, 1989 Regular Meeting, anci gave conceptuat apprc�val to the land use.
The Rasemount HRA briefly discussed the patential of the project and future devetopment
in the area. The eoncept for t�increment �nancing is being pursued, with respect ta ihe
feasibitity of extending public water to the area for Gre suppression systems.
Enclosed are capies af a letter from Larry Knutson, draft a�plication ta Met Gouacil and
aci�itional supporting inl'ormation. The materials are intendec! to introduce this matter ta
the Council. There is no request for aetion at this time. Representatiz�es fram KRSI will
t�e at the meeting to discuss this in further detail. If the Council is interested in pursuing
thc urc�ject, we'il have to act farrnally privr tc� the Decemt�er 29th a�plication deadline.
While there are a number of questions to be answered and details to be worked out, the
initiative is an exeicing one, Both KRSI and the City ba�e an opportunity to continue the
, pursuit of demonstrated commitrnents to waste reduction objectives.
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t�SETROPOLITRN LANI}F�LL ABATEMEI�T FUND
CAPITAL ASSI3TANCE tiRIW'T
PRQFOSAL CQVEA SHEET
FY89
1 . Name of Fro�eet Sponsor: Ci�,v,,, �f ,�osem�un -
Ma111ng address s P 0 Box 51� 2875 14�th Street 4dest _,,,�,_„_,_
2. IRS Tax-Exempt Numbert �
3• Pro�e�t direct�r/Qontact persan z�amet
Titl.e s Fhones
_.
Addresst
4. Authorized Official nataet
Title: Phanet
�.�
Addresss
5. Third Party information, when applieablet
a) Name: Knutson Rubbish Services Inc, _
b) Addresss 15 0 ippen a e venue
__..,.._.,_._.�.... — '
R semount MN 5506� _
e) Author�;zed representatives �^ Larru Kn�t on • —
Titles Pre •�,dent� Phones --
_ —
d) Minnesota Tax ID numbert
b. PROPQSAL SUt�IARY ,
Briefly summarize the ma3or benefits and goals assoeiated with the pro,�ect.
The goal of the project is to develQp a.material recpuery facility
(MRF) capable of proeessing source-separated and comingied recyclables
fram corrr�nnercial, industrial and residential waste generators.
Major benefits of the facility wi11 include the capability to �ra-
cess a wider variety of materials than presently processed at existing MRFs •
and an increase in eorr�ercial recycling quantities due to the flexi�il-
ity inherent in the plant design.
�, j�n
7. Amount of Grant Req�e�st ---�-�*-- —"""'
Amoun� of Looal Cash Matah , � 1�R iRt�
Amount aP Other Costs �,-��� ���
TOTAL PROJECT COST � Q�'�-a8�
t � .
' CAPITAL ASSISTkN6E GRANT PAO(3RAM
" PROJEGT SPONSOR�S CERTIFICATION
BE IT CERTIFIEA THAT
t) will act as the sponsor
pra,�eot 3pon�or
and grantee for the landP111 abatea�ent Capit�tl Assistance grant to be ac�nduQted
by: 2) • �
when applieable, implen�entin8 t ird party and authorized representative)
. during the period from 3) . � • �
es imat�d start date-aoquis�.tion
through 4) ' '
estimated ead date-three yeara from ac4uisitiats date
5) .
Name and titie of authorized offioial
is hereby authari�ed to submit a grant propoaal and request #wnding Por thia
pro�ect to the Metrapolitan Caunei,l and. to execute suah agreements and prepare •
documents as nee�ssary to accep� #Unds and implement the pro,�eat on behalf of
the Pro�eet Sponsor.
This certificat�.on eertifies the followings
1 . The Pro�eot Spcnsor is an eligible appli�ant for the Capital Assistanee
Grant Program. . . ,
2. xhe pro�ect will further the goals of the Metropolitan Council's S„ol,id
Waste Management DeveloAment t3uide/Fa1iQY Plan._
3• The pro�eot is in aonfortoance with the apDroved So11d Waste M�naE�mer�t
Master Plan for the eounty in which the pro�eot will occur.
4. The Pro�ect Sponsor agrees to Qomp1Y with all applieable �aWs relatix�g to
nandiserimination and afP3rmative aation.
5. The Pro�ect•SpQnsor will provide ail loeal and state permits, lieenses and
authorizatlons neoessary Por the pro�eot•
6. The Pro�eet Sponsar 3s ourrent in all ta�c obligations to laoal, state or
� federal governtaents.
7. Acknowledgmsnt will be made far the Counail Por its grant assistanae an all
promational materials� reports and publieations reiating to the Dro�eet durin8
the grant period.
8. The Pro�eat Sponsor will pravide a12 docu�caentation and reports required by
the Couneil during the gran� period.
9• The proposal is eomplete and all lnformatian prov�.ded in the proposak is
true and aecurate. :
I HEREBY CERTIFY THIS GERTIFICATIONt 6) p��� �����2� $�p�Qv$¢)
7) ""'.'".'t n�t���
(Signature of Authorized 4fficial -
g� ,.�.�..., _..._..__
tSignature af Pro�eat Direatar/Contaat Person Date
9? .
tSignature of authorized tttird party representativ� ���t���
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SECTION A. INFQRMATION ASOU7 THE PR4JfCT SPONSOR
1. Describe the Gapital AssistanGe Grant pro�ect spansor. For example,
is the project sponsar more than ane Metropolitan Caunty and w�at is
the total population affected?
RESPONSE
Ramsev. Washinatan and Oakota County(ies)
Rosemount, R�ple Vallev. Burnsville� Eaaan,
Inver Grove Heiqhtsx �akeville. Mendt�ta Hei�hts
and White Bear Lake, Municipa1ity(fes}
214�,031 Popul at i on
The project sponsor is the City of Rasemount. Loeated in Dakota Caun-
ty, the City has b�en� home to Knutson Rubbish Servfce, Inc. for over
11 years. With a current population of approximately 7,500, Rose-
mount has grown nearly 400R�a over the last 3U years.
Recyclables eollection in the City is provided by Knutson, while resi-
dential and co�ercial waste colleetion is left t4 the chaice of each
. individual business.
While the City of Rosemount is the sponsor, the propQsed project wiil
impaet residents and businesses in a number of communities in Dakota `
County as well as a portion af Ramsey County. The total affeeted pap-
ulation wili be appr4ximately 17,OOQ hauseholds and 1,OQ0 commercfal
waste generators throughout the same region.
2. Describe how the project sponsor will administer and manage the proj-
ect and who will be responsible for preparing written financial and
progress reports. .
RESP4NSE
Written reports shaT1 be prepared by Knutson staff and submitt�d to
the City Administrator for review. The City shall be able to include
additional commentary before submission to the Metropolitan Council .
s �
� SECTION B. IN�ORMATipN ABOUT THE THIRD FARTY
- 1 . Describe the business, nonprofit organization, public institution vr
solid waste managemer�t district, which has applied to the aboue for
project spansorship. Provide "sufficient de�ail on the nature of the
third party's primary mission and purpose, how long in operation, etc.
RESPONSE
Knutson RubbisM Service, Inc. has operated in the Metropo1itan area
for 27 years. During this time Knutson has provided waste and recy-
clable eollection seruices ta residential , commercial and institu-
tional clientele.
In addition, Knutson has retained CRS, Inc. to provide technical and
professional serviees in the deveiopment and implementation of the
MRF. Since its establishment in 1975, GRS has specialized in the
recovery of resoe�rces fram wastes. The eompany's philosophy toward
alternatives to land disposal have remained unchanged. Rather than
emphasizing one salution versus another, members of CRS have main-
tained the highest level af objectivi�y in seeking and prQposing the
best alternative, or combination of alternatives, far �ts clients.
Members of the company have been participating in projects involuiag
material reeovery and integration of various sub-systems in waste
management since the 1950's.
' CRS has conducted more than three hundred prajects in the field of
waste management since its founding. This experience provides their
personnei w�th a breadth of understanding that w��l enable CRS to
provide a thorough and well-thougbt-out design and implementation.
A project of particular relevance to the proposed wark is one current-
ly being canducted by CRS for Swift County, Minnesota. The three
phase project involves: 1) conduct of a �reljminary engineer design
and feasibility study; 2) preparation of a grant application ta the
Office of Waste Management; and 3) final design and man.agement of the
construction and operativn of the facility. Funding Mas b�en granted
and CRS is proceeding with final design and impl�mentation of a curb-
side collection program, recycling/composting facility, household haz-
ardous waste drop-off center, and an environmental monitoring program.
2. Describe the business, nonprofit organizativn, pabtic institutian or
sfllid waste management district's past and ongc�ing experience in 1and-
fill abatement or closely rela�ted activities.
RESPUNSE _
Knutson has five years experience with fall leaf callections, and one
and one-half years of spring and summer grass collections in the City
of 4Jhite Bear Lake. In addition, Knatson has provided one and e�ne-
half years of grass and leaf coltections in cities within Dakota
County.
` � �
� Knutson has four years af cardbaard reeycling experience and hauis
over 900 tons of cardboard per year. In addition, Knutson collect�d
over 2,300 to�ns of residential recyelables during FY 1989.
Knutson provides week1y curbside recycling collec�ion for homeowners
and businesses in all of its services areas, operates two drop-off
centers, on� in Rosemount and one in White Bear Lake, and has par-
ticipated in several household hazardous waste programs.
3. Describe the business, nonprofit organization, public insti�ation vr
salid waste management distri�t's administratiue and ma»agement exper-
ience in supervising staff, managing contracts �nd in preparing writ-
ten financlal an�! progress reports,
RESPONSE
Knutson staff manage 45 employees and has had a contract with the
Gity of White Bear lake since July 1, 1984. Since implementation of
this contract, Knutson has prepared monthly progress reports. Knut-
� son has also completed three successful grant pro�ects during FY�7
with the Metropolitan Cauncfl .
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� SEGTION C. INFO�MATIQN ABOUT THE PROJECT
1. Summarize the Capital Assistance Pro�ect, including type and number
of landfill abatement machinery or equipment to be purchased, approxi-
mate purchase and acquisition dates, potet�tial abatement result�,
creatian of new markets or expansian of' existing markets and other
information pertinent to the project. A marketing plan should also
be attache�. .
RESPONSE
Knutson proposes to construct and aperate a Material Recovery Facil -
ity (MRF) in the C�ty of Rosemaunt. The MRF would initially accept
commerciai and residential recyclables coilected by Knutsan from
existing routes. Facility capacity wi11 be 40 tons per day (TPD) ,
with potential far expansion.
The proposed abatement project wilfi have a positive impact upon both
commereial and residential reeycling in the Twin Cities Metropo1itan
Area (TCMA) . SpeeificaTly, the praposed faci1ity wilt :
� allow Knutson to expand the types of materials currently eQllect-
ed from residential cust�mers;
� allow Knutson to significantly expand commercial recycling ser-
vices tv include different materiais and new customers;
• provide greater recyclable collectian flexibility, since the pro-
posed MRF wi11 be able to accept comfng1ed recyclable loads and
loads containing nonrecyclable residue;
• reduce the waiting period at the weigh scale us�d by Dakata Ca�n-
ty for recyclables �data coTlectian; and
• increase flexibility in the TCMA recyclittg system.
The praposed MRF wi11 increase tfie incentive for Knutson ta expand re-
eycling since the facility wi17 be tailored directfiy to the needs af
its clientele and will provide Knutson with a cost-effective and inte- '
grated recycling system where avoided 1andfill callection ahd dispos-
al casts can be directly realized,
MRF Description
The proposed MRF is designed to accommodate both comingled and
source separated recyclables from commercia] , residential and
institutional waste generation sectors. The MRF is also designed
for the delivery of recyclables ,by end-dump and sid�-dump collec-
tion vehicles as well as from conventional packer trucks. Based
upon preliminary design �stimates, the facility will have an en-
elosed area af I7,100 ft . A facility layout is included as
Figure 1.
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landfi]l abatement equipment to be purchased is indicat�d in Ta-
ble 1. The equipment has been selected based upon the follvwing
parameters: materia]s to be processed; expected throughput; and
market specifications. Each of these parameters are diseussed in
greater detail later in this section. A compilation of price
quotes and technical specificatians received to date is included
as Appendix B.
Recyclable Collection Im�acts .
Througfi construction af a MRF, knutson wi11 be able to m�dify and
expand the recyclable collection servjce� offered to its clien-
tele.
TMe proposed MRf will accommodate both source-separated and co-
mingled recyclables. As community recycling programs mature,
individual cities may wish to increase participation ar reduce
scavenging. Comingled collection can accommodate each of these
concerns.
Cor�mercial recyclable collection will also be enhanced thr4ugM
the comingled aiternative. Knutson has performed visual waste
surveys of all commercial custamers. As a result, Knutson has
targeted numerous clients that generate mainly recyclable waste.
While certain custamers have already initiated source separation
programs, many addit�onal customers wiil be able to recycie with
a minimum of separation onee ths MRF is c�n-line sjnce some resi-
due wi11 be aceeptable. �
The proposed MRF wi11 also allaw Knutson to increase the number
of material types collected from commereial and resident�al cus- "
tomers. Plastics, tin cans and a wide variety oF pap�r grades
that are either currently not accepted at the Dakota County fa-
cility or are not economically feasible to collect at present
wi11 be aceepted at the proposed MRF.
Landfill Abatement Impacts
The propased project will divert apprQximately 5,500 TPY of recy-
clables fram landfiil disposal or incineration. Tab1e 2 presents
a quantitative breakdown (by material� of Knutson's existing recy-
� cling programs and an estimate of the future recycling system.
Markets Creation and Expansion
The proposed MRF wi11 allow Knutson to create and expand market
alternatives over thase presently available �hrough Caunty pra-
grams. Unique markets have afiready been identified fc�r many
materials including PVG films, tin cans, mixed and white ledger,
computer printouts, mixed low-grade paper and different mixes of
recyclable plastics. There will be a significant incentive far
Knutson to cont#nue to identify new markets to further abate land-
fi11 disposal and hence, mitiga�e costs ta TCMA waste generators.
. ! �
. Tabie 1. Knutson landfill Abatement �qu�pment �ist
Equipment Item Processed Materials
Harizontal Baler ' Paper, Corrugated, Plasttc Films
Can Densifier Metal Containers
' Glass Crusher Glass Containers"
Plastics Granulator Plastic conta�ners
Shredder & Newspaper
Mechanical Baler
Sorting Conveyor Paper, Cantainers
Rlastics Collection Plastics
Containers
Bobcat Unprocessed Recyclab1es, Residue
Forklift Processed Recyelables '
Containers All Materials
' � �
,
Current and Projected �andfiili
� Abaternent (TQnsiYear}
flECYGIABLES COLIECTE FUTURE GOI.LEG'�tON
KNUTSON MRF SepE 1988-Aug 1989 . PrOjeCted
` MATERIAL RESIDENTIAL CQMMERCiA RESIQENTIAL C4MMERCtAL
� •• PAPER •
Newspaper 1,281 0 2�165 Q
Corrugated 0 57'S 50 2,440
Hi h Grade 0 25 0 125
. ..:.., ., . ; ..
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�`�P.�R�TC�:.C�A.l��." �.r .. : ;:.,. , ' ' ..�
C,� , g.. .6 0
PLAST/GS
HDPE 4 0 135 a
PET � 0 25 �
l.D PE 0 0 Q 0
PVC 0 0 0 240 '
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�(:�"a�T�G�:�'QTA�h�'�• � ^ �
' METALS 4S � '
Bi-Metal UBC 30 �
• Aluminum UBC 2S Q 45 �
� Tin Cans 0 0 ''225 fl�'
.
. . 4
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Other ...:... � ,��: ' ���
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�`:QTAk:�VI ET�1L.���.�'� n ,. . '' �Q>;
�' G;.1'p►.S.�a..����s..�' � ���14Q 2,495
•, . .. .,..
.� '. . GRANU TOTAL 1,628 682
;; _
.:. . .. .__ . .. . _ .: .....,_ � ..�..__....�. $. - -----.-•
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� Knutson is also warking with the City of Rosemvunt and private
newspaper publishers �n the TCMA tv develop an old newspaper reey�
cling agreement with FSC in Alsip, Illinois. FSC wi11 accept old ,
newspr�nt in quantities equal to a co�un#tm�nt tt� purchas� a simi-
lar quantity of new recycled content� material .
Whi1e the counties and the Metropolitan Cauncil work with large
publishers such as the Star Tribune and the Pioneer Press, Knut-
son has an incentive to include smal�er companies in a reeycled
stock program. This type of market expansion will provide flexi-
bility and stability in the TCMA recycling system while expanding
the use of recycled-content materials.
A detailed market analysis is included as Appendix C.
Pro.iect ScheduTe
2. After the minimum three year period usage of the machinery or equip-
ment for landfill abatement activities, is continaatian of the proj-
' ect anticipated?
RESPONSE
The 1andfill abatement equipment is antic�pated to be used fQr at .
least seven years. 7he proposed MRF w�11 operate far at fieast l5
years.
3. Where will tfie project activities occur? Provide as much detail as
possible, including the names of counties or municipalities in �he
Metropolitan Area that wi11 be directly affected by the cap�tal pur-
chase.
RESPONSE
The facility will be lacated in Rosemount, Minnesota on land already
owned by Knutson near 160th Street and 8iscayne Avenue. A surveyor`s
deed of the property is included as Figure 2.
4. What is the approximate date of acquisition of the machinery or equjp-
ment? Capital Assistance Grants witl be manitored for three years
from acquisition date.
RESPONSE
Equipment wi11 be purchased in March or Apri1 , 1990. A complete praj-
ect schedule is shown in Figure 3.
5. What are the anticipated or projected landfill abatement results from
the purchase of the machinery or equipment? These results should be
measurable and inciuded on th� annual report form.
a) Materiais to be abated: See Table 2.
b} Generatars tG be served: Approximately 1,000 c�mmercial custom-
ers and 25,000 residents in Dakota, Ramsey and Washington Caunties.
DescripCic� I�CtenL-ion:
Marie Jensen � � . � �
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�'�' 14750 80UTH RQBERT TRAtI. ROSEMQUNT,MINNESOT�1650l1a Qf2/42��f7N •
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Figure 3, Pro,�ect ScMedu?e
Task Nov Dec Jan Feb Mar Apr May Jun Jut Aug 5ep Oct
S Final Design 0---�-]
2 Investme�t Doctnnent Q---------___�
3 Final Bid Specs 0--------------J
4 Met Council Grant App 0-----*------�
5 Procurer�nt 0----------] l
6 Ganstruction Manag�nent Q------------------------]
7 Operator Training 0----)
� �
C. INFORMATION ABOUT TH� PROJECT (continuedj
6. What are the ma�or goals af the pro�ect?
RESPONSE -
The major goals of the proposed pro3ect are as follows:
o To cons�ruct a MRf that includes the equipment listed in Table I,
and utilize the facility to incr�ase recyeling quantities frvm
Z,300 TPY to over 5,5�0 TPY (1509'o increase) .
o Expand the ]ist of recyclable materials colleeted from six to at
least ten {see Table 2}.
o Increase commercial recycling quantities through comingled collec-
tion and processing.
a Reduce the dispasal cost through recycling by 30 to 74 $/ton re-
cycled.
1. Each pra�eet sponsor will be required to camplete and submit a writ-
ten annua1 report and final narrative report. A form will be provi�#-
ed far the annual report. It will address achievement of goal�s as
listed in question #6. How wiil the project sponsor measure progress -
in meeting the stated goals? What records or other methods witl be
developed and �sed to support and document the results of th� prapos-
ed pro�ect? What types of ongoing evaluation wi11 be used to deter-
mine the success of the project?
RESPONSE
All materials deiivered to the MRF will be weighed and data will be
recorded in a computer database along with the materiai source. Pro-
cessed recyclables and residue shall also be weighed and recorded be-
fore l�eaving the site. �
Knutson will also maintain separate financia3 records for the MRF so
that economic performance of the facility can a7so be measured in
terms of capital costs, operating costs and throughpat.
' ' � �
8. Capital Assistance Grant Work Program
ACTIUiTY�TgSK P�S�,NjP05�TI0N �QM�P ET�OPi TIME
. Fina1 Faciiity CRS Deeember T5, 1989
Design
Capital Acquisition Knutson Management, February l, I990 -
CRS
MPCA Solid Waste Permit CRS April 1, 1990
General Contraetor- Knutson Management, Apri1 1, I990
Construction Agreement CRS
Equipment Procurement CRS Apri1 1, 1990
Construction Management CRS September 1, 1994
Operator Training CRS Qctober l, 199U
Commerc�al Account Knutsan Management Octaber 1, 1990
Ad,justment
Facility Operation Knutson Recycling Ongoing
Manager
Financial Management Knutson Financial Ongoing
Officer
. , � �
C. INFQRMATI4N ABOUT THE PROJECT (continued)
9. Will the Capital Assistance project require the approval of any 1oca1
or state permits or licenses, preparation of an Envirflnmental Assess-
ment or Impact Statement, or ather eondltions which must be met in
order to eanduct the pro3ect? If yes, describe wha� has or wi'll be
done to obtain the necessary approvals for the project.
,
RESPflNSE
Minnesota Pollutian Control Ageney solid waste permit and City of
� Rosemount building permit are the two ma�or approvals needed.
10. How will the Capital Assistance Pro�ect be publicized?
RESPONSE
The project will be publicized through facility tours, inserts includ-
ed in customer invo�ces and througfi the medfa.
11 . List •the employees, staff positians or consultants that will be re-
sponsible for completion of the pro�ect wark program. R�sumes or
position descriptions af key individuals shau1d be attached. .
RESPONSf
Resumes and position descri'ptians of key individuais are included as
ApPEndix C.
12. Deseribe the role of any board members, cornmitt+�es, or volunteers
that will be involved in conducting the projeet or providing aver-
sight.
RESPUNSf
Knutson will be responsible far the development of reports outlining
the project status. These reports shall be submitted ta the C�ty af
Rosemount and Dakota County for their review priar to submission to
the Met Council .
' ' ' � �
SECTION D. INFORMA3ION ABOUT PROJECT fINRNCES
1 . Itemize the Capital Assistance Grant Pro�ect budget. A1] pro�ect spon-
sars are required to t�se the budget format provided below, The budget
must show how the grant funds and eash match will be used for the pur-
chase of landfill abatement machinery or equipment.
Total Project Local Match Capital Assistance
Bud4et Item Co�t Cash Grant
fquipment Purchase $218,080 $113,130 $IQ4,950
Maehinery Purchase 90,100 45,Q50 15,050
(Roiling Stock)
Freight Included Above
Applicable Taxes Included Above
SUBTOTAL �308,180 $158,1$0 150,000
The following costs are not eligible for grant ar match funds, but ,are part
of the total pro,�ect costs: -
Salaries/fringes
Contracted Labor �125,040
Travel Expenses
Printing �
Equip/Mach.
Rent/Lease ,
Other project Costs ' .
(Faci�ity Procurement) �509,300
SUBTOTAL �634,300
TOTAL $942,480 �158,180 �154,000
Anticipated Pro�ect Revenues, if any ,�,171.40Q - 5335=OOQ/vr
, � .
2. Itemized Project Costs .
Bud9et �tem .A,.�.��
See Attacfied Pages
�
� •
3. Cash Matching Funds
ource Amoun .S..�a�3.s_
City of Rosemount 3150,004 Negotiation ,
4. Project costs not covered by the Capital Assistance Grant.
S�yrce Amount Stat s
Pr�vate Investment $642,480 Ne�otiation
5. Explain how the Capital Assistance Pro�ect will be continued beyond
tMe grant period. What sources of funds will the pro�ect sponsor use
for continuation of the landfill abatement activities?
RESPONSE
It is expeeted that the facility will operate for a minimum of 15
years. Operating funds will be patd by recyclabie revenues and
avoided landf311 d#sposal costs.
6. Explain fiow the Capital Assistance Grant will enable the pro,�ect
activities to occur,, or if they would not otherwise be possible.
RESPONSE ,
The Capital Assistance Gran� will allow Knutson to significantly ex-
pand commercial recycling and the number of materiais aceepted. it
is estimated that the grant will save appraximately S5/ton in oper-
ating costs. This savings will allaw Knutson to process and -recycle
marginal materials that would otherwise nat be accepted.
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SITE WORK 63Q00 SITE WORK 63000
WEIGH SCALE 60000 WE1GH SCALE 60000
STRUCTURES 275700 STRUCTURES 275700
UTILITIES 102604 UTIUTlES 1026Q0
MISC 8040 MISC 8400
ENGINEERING 125000 ENGINEERiNG 12500fl
TC}TA�CIViSTRUG.> <: . `63430Q ,.,. 63430t�; ; ;83394 ,1:4 8Q;
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PROCESS EflMT 218080 44795 7.95 PROCESS EflMT 21808D 44795 7.95
ROl�1NG EQMT 90100 18507 3.28 ROLLING EQMT 9010fl 18507 3.28
TtOTAt�EQU[PMENT: ;. ;; 308°180 ;.. ..:63302 ; .#1.23.< TOi"AE.EQCJtPME1VT. 30818Q
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UPERATIC3NS OPERATI4NS
LABOR 1 Q5000 18.63 LABC?R 105000 18.63
OVERHEAD 42000 7.45 OVERHEAD 42flQ0 7.45
MAINTENANCE 5635 1.00 MAINTENANCE 5635 1.00
UTILlT1ES 715t� 1.27 UTiL1T1ES 7150 1.27
FUEL 3i 20 4.55 FUEL 3120 0.55
INSURANCE 8000 1.42 INSURANCE 8000 1.42 ,
7`(?T,�l.:C�PEf�AT101VS... .. ; '; ; ;�170:905 ;;$�f�33: �OT�L::f.?PEflATtt'�1VS ;: ; .. .. .: .. .. ;: �170.9t35 '<. ..�3�;
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NET CtJST PROFI'T� $145.$86 $25.89 NET COST{PROFII� ($18,389) $3.26j
AYOiDE1��iSPOSAL Ct'?�T . . . ': .:::;($2$1;750) .. {$5�:00�: A�/OlE�E[�'QISPf�aAL:C?OST ;::. ..... :: 1�56�,500� ; �1�QQ}:
TOTAL C4ST(PR�FIn {$135,864) ($27.11), TiDTAL CCC),ST(PROF17) (�5$1.�) �t03.28)
. , � �
KNUTSON MRF/ESTIMAT�D CAPITA� Ct)STS
COST ITERA QUANTITY UNITS $fUNi7 TOTAL CQST
SITE WORK
Site Preparatian 20,OQ4 #t2 $2,40 $40,Q00
RoadwaYs 7,500 ft2 $2.00 $15,40�
Off-Site Utilities 1 rass $0
Landscaping 1 gross $0
Fenein9, 80Q If $10.QU $8�Q04
�ITESU.BtOTAt�:....... ::........ : . .......: . ` .....:::. . ......:: ..... .$�3,���;<:
W�1GH SCALE:.:: .......< '; ; . ..1. ': tti��: �y /}/�
...... , �.t..... . . � . ':. . :��4Jy�4V>'> . . .
FACILITY
Concrete Work 16.500 tt2 $8.00 $49�500
Structural 17,1Q0 ft2 $12.04 $2Q5,2t30
Electricat 17,10Q ft2 $3.QQ 551,3iK?
Plumbin 17,100 ft2 $1.5Q $25,650
HVAC 17,10Q fi2 $1.50 $25,650
Personnei Facilities 6Q0 ft2 $35.UQ $21,000
FAGILI`IY SU�TC3TA�.... ......:::. .... .. ..��7���Ut�.;<
PRQCESS EQUIP�VIENT CAPACITY
Horizontal Baler 4 TPH $7Q,000
Bedding Shred& Bale 3 TPH $35,000
Can Densifier 2 TPH $25,000
Plastics Granulatar 1 TPH $25,000
Glass Crusher 2 TPH $5,Q00
Sorting Conveyor 8 TPH $18,040
Containers gcoss �1 Q,OQO
Instailation 10 % $18,8Q0
Sales Tax 6 �lo �11,2$0
P�OC�SS'SU�TOTaL:. ........ :..' : .. .:. ..��:fi$t�8{�:.
ROLLING STOCK
Forklift 1 gross $35,000
Bobcat 1 gross $5�,040
Sales Tax 6 Qlo � $5,100
F�QLLING;SUBTO'�AL..' ........ .`. ' ' ' ���►a 0t�;
MISCELLANEOUS EQUIPMENT
Repair Equipment 1 gross �5,000
Administrative Equipment 1 gross $3,OU0
Misc su��ra�n�.....::. . ; " .....::��,���;:
�NGiN�ERING.:: .... ; ><
. . ross. ;. ....`.:.. .. �1;2a,�Q�':'
CAPITAt COST TpTAL ' �9d2,480
• !
FIRST YEAR C)PERATt4NS
COST ITEM QUANTIT UN17S $/UNIT TOTAL CUST $/TON
LA���.. .< ' ' . � .. ..:..� :::... ........ '' . . :: . ....:
.,:.. ..
fRONT END LOADER OPERATOR 1 emp. 22000 22000 $3.90 `'
LAB4RERS 4 emp. i5QC10 60000 $10.85
FOREMAN t emp. 23000 23000 $4.Q8
SU�T4TA�. ...:::. ......... ....:;:... � „�m .: ..:: :...... ..: . ......:1�5�+�,0 :>.�1$.6�::
OVERH�AQ. °I�t7�.LA;�O��.::: ....... :. ...�a:..: :.::.....�C� :': .....:.::�4���� �7.45 :
MAfN�"ENt�NG.�:.. ... . ....5�3.��. 7'ON..: : ........:�.t��::;...� . .,::...5!���a:. >.. ::�1�q�..:
U71:�iTi��; ; ;.... : . ' ... .. . ::.. . .:::... .......:. :;:;. .........
... ,:.. . . .. .:. .. ..... :.. ......... . .
PROCESS EQMT 104 MWM � 50 52Q0 $Q,92
IIGHTING 62 MW/H 50 6Q0 $O.i1
HEATING 12 month 100 1200 $0.2i
WATER • 78 MGaI 0.95 ZO $0.01
SEWAGE 78 MGat 1.05 80 $4.01
SU�Tt�TAL.. .:...; ' ... ..:�:,.71�t�. .:�i ��':::
FU�L .......:. '` ....:.' ..... ..4160 :��II(?�1.. ..... .. ':1�.75:. 'i :::: �12�.. ;$�55.';
INSURAIVC� . .:::..... .:. . ;' ......� .. ..::: :.... ... : ...::'...,...$t�0�. .. $i..�� ;
TOTAt OPERATIONS 170905 $30.33
� . . . . . � . � 4
EXPECTED REVENUE RANGE OF PROPOSED PR4JECT
LC?W HIGH I.OW HIGH
MATERIAL TPD TPY $lTON $/1'ON $/YEAR $/YEAR
PAPE#�: ;::...... .... �..: ,..;... .:.:..
_. . . ,:.... .. . ... . _...... ... .. .... :.:. ..... . . ... _.
News 8.3 2165 �10 ' $40 $21,650 �86��00
Corrugated 7.9 2050 $15 �30 $30,750 $61,SOfl
High Grade 0 5 125 �60 �18fl $7,500 �22,500
RCASTI�S .: .:.. . .: : :' ` ' ;
,,... ;: ... ;:. . . . ,::.. .. ., : . .. .
_ .. , <� . .... .::... . ..�� �
HDPE : 0,5 135 $18Q �350 $24,300 $47,250
PET 0 1 25 $100 �120 $2,500 $3,t� '
PVC 0.9 240 �0 �100 $0 $24,OQ0
L�PE 0.0 0 $t? $60 $0 �0
fi�E�4��v ; ,::: .. ;:::. ;.:.. . . ;.: . =:. 2 2, :;...570;.. . . . < �47 ;..... <.. .�47 ...:�2C.79Q::: $Zfs,79Q::
i�kET1�LS ;> . ;>. ; : ; . ;
_.:; . :. ...,. ;, ,: _ _.
Aluminum __ 0.2 50 $1,0�0 $1,40Q $SO,Q40 $70,Q00
Bi-Meia1 0.2 50 $52 $142 $2,800 $7,140
Tin Cans 4.9 225 $25 �50 $5,625 $11,250
TOTAi. 21.7 5635 �30.47 �63.$8 $171,715 �9,990
�
� I�E��:-14-1�+8� 11�ti;7 FROM �r(�MFBELL, �rrnTT �. FIJCH�. TO a�352�� P.�3
� � � •
l�,ATBRIAL RSt�VLRX FACILI�'X AaRE$MENT
;'i
AGREEMENT made �h3,s day o� , 19 , by '�
and between the CTTY 4F RO�FM+�UNT, a Minn�sota municipal �
carporation {��Ci�y") , and KNUTSQN RUBBISH SERVICES, INC, ,
{"Knutson") .
1. Ba�kgruuxtQ. Knut�on, with 3.ts pri.n�ipa�. p7.ace of
busine�� i:n Ro�er�ount, i� i.n �he ru}abi�h hauli.r�g a�� z�cycl�nq
busin+�ss. Knutsan is seeking a eapital assistance grant f�om the
Metropolit�n Co�inc�.l t4 canstruct a material recov�ry facility.
ICnutsr�n ha►s r�sques��d that th� City be �he pro�eet ��ansor in
accordance with t'�� Metropali.�:an Landfill Abatemtnt Fund Capital :
Assistar�ce Grant ��ogr$m guidelines.
2. tirttnfi Appiioation. Kt�utson and �he City sha17. aPP1Y for
a grant fram the Metropoli�an Council substant3.�13y in the form
attarhed taereto �s �xhibit "A". The Ci.ty shall be the pro��e�
sponsc�r for the gra»t.
3. ]?ur�hasse of Equi�ament. If the grant i� approved,
Knu�son sshall purc:hase tha equi.pm�nt i3.st�d on Ta�ble 1 of th�
grant applfeagion ("equ3.gm�nt'!) . Tca the ext�nt that th� gr�z��
does not cav�r th+� cost of acc�uui��.tfon o� a21 th� equipmen�,
Knu�tson shal�. pay ihe eost, The City shall be th� owner of the
equipment.
4* Lease. Cvmmencing with the purchase of th�+ e+qu:�pment,
the C�ty �ha11 3.ease the equipmer�t to Knu�.�an for a three (3}
year t�rm. Kn�tt�s�n �hail �.er�se �he equipm�nt "AS It�t4 and wfthvuC
r12/15/89
� DE!_-1��-i'�+^'� :i:l��,J FPQM i_Ht°iFBELL� Sr��fT `;: FIJ�:HS T��t ������t3 F.G_��3
. , � .
any express or implied warran�tie� from th� Ci�y. The le�se
paymen� shall be $1.Q4 per year. Auring the �erm o� the l�as�,
Itnutsc�n ag�rees s
A� The c�quipment sha1.1 be used exclusively for the
purpos�a �e� �'�rth i» th� grant application.
� � . . � � � � .� . . . . . .. . �..j
B. Th� �qui:pment s�all r�ot be removed from the
cozparate iimits vf the City.
C. Na l�.ens or sncunEbrances �hall b� allQw�d to atta�h
ta th� equip�ent.
D. The equipm�nt shail b� kept in goad r�pair and
working order.
E. Kr►utc�on sha13 ob�ain and keep in full force and
effect durir�g the term of the lease, a�t its �o2e c�st, t�he .
following: �
1} Znsuranc� again�t loss by ftre, lightn�.ng, and
risk customarily covered by $tanc�ard earvez�ge
enclar�ement, tagett�er with a vand�l i.sm �nd ma3 icious
mf�chief endor�emer►t, al l in an amc�unt of r�c�t less than
the full repla�em�nt cc�s� of the equi��aent �nd building
where the equf.pment �s lo�ated.
. 2) Comprehens i.ve general publ#.c l iabi�.ity insura�nc�
cvvering �he legal liability o� �ir.uts�,n a4a�.n�t clafm�
€or bod3.iy injury, death and pr�perty damz�ge accurr3.ng
Qn, in ar about t�e prap�rty whexe the equ�.pm�ent is
located fn the follaw�.ng �mounts:
�i) Qne t�iZl�.on a►nd ao/io� {�a,,aoa,000.oo�
Doll�r� �ar in�ury or death of one pe�son;
�nd
(ii3 Two Mi11iQn a�nd QtJ/3.00 E$�,Qoo,oQo.00�
TioZlars for injury or d�ath to more than ane
person; and
(ii.ij Five Hundred Thcusand ancl 40/lOt� L�ol3.ars
{$500,a4t1,00� for da�age ta the pre�3.s��.
(iv) �'wo MiZlion and 04jioo ($2,000, 000.00)
umbrell.a cc�verage o� cramprehensive ge�neral
liability.
Such insuranc+� pQZicies shali �e w��.tten an farms and with
insuranc� eornpanies satisfactory to Ci�y, shall name as the
insured naxti�s Knutsan and the City as thei.r inter�sts m�y
_2-
I�E�:-1�-1q8'� 11�59 �PCU�1 CAP�1FPE�L� �;�,::�?TT ;3� F1J�H� TO 4<_;52@� P.��
. � •
i
appear. A31 pol.i�ies shall �pecifically provide that the
City sha21 receive thirty {3+D} days priar written no�ice
before cancellati4n cf any such policies.
Zn the ev�nt of ma�erfal default by Knutson as fio a»y of its
c�bligativns h�reunder, the Ci�y may, a� is option, res�ind the
lease and rec3,aim khe equipment, �nd thereafter Knutsor� �1�a11 not
hav� the right ta purchase the equa.pment, Knut�san, however, shall .
be given a� Ieast thirty (30) days �dvance w�itten rratice during
whi�h period Knutson may cure the default.
S. Puraha�a. At the end of the lease term, the �ity shall
convey title to KnutsQn far $1.�Q.
6. �old ga�rmlass. Knutson shall hold th� City and its
officers, employees, and �q�nt� h�rmle�ss gro� cl�im� made for
d,amages sustain�d or co�ts incurred resulting fram tMe �ity
entering in�o this Aqr+��ment and �e�s3.ng the equipmer�� �o ,
Knutson. Knutson shali indemni�y the City r�nc3 its o€ficerst
emplay�es, and ag�nts for all costs, damage�, a�r expenses wk�ich
the City may pay or incur in con�equence af su�h elai�+s,
includinq attorney�� fee�.
7 . Contiaqenc�. Hefor� pr�ceedinq with canstructian Qf the
Mafier,ial Resource Recovery Faciliky, Knutson mv�t obt�in a1.1
necessary land i�ae approvala �nd the I ik�: from the Cit�* and other
permitting agencies.
8. Termina�t�.�an. If the grant cQntempl�ted by this
Agreement is not received on o� before June 3, 1990, th�.s
Agreement shall be void.
,.3..
DE�=-1�-1989 11�4@ FRC1M �:At•1PBELL e S�.:G1TT e� Fi�rHa T�7 de 35'%?b73 F.Qb
� . � .
9. Noti.assr. Required notice� to Knutscn sha�.l be in
writing, and shall be either hand de2ivered to Knu�son� its
�mploy�ees or �gents�, or mailed �a� Knutson by regis��red ma�l at
th� �otlewitng addr�s�t 15120 Chipp�ndale Avenue, Rc�s�mount,
Minnesota 55068. Notices tQ �he City shall be in wri��,�g and •
sha�ll be eith�r hand �eliver�d tc� the City Adm�.nfstratorj
Clerk, or mailed to the City by registered mail in care of the
City Aclmfni�tratorfClerk at the following address; 2875 - 14.5th
Street West, P.4. Box 510, Rasemount, MinnesQta 55Qb8.
CITY aF RQSEMQUNT ,
BY;
Rallan HQke, Mayar
ANQ
Stept��rt J l.k,
Adminf.strator/elerk
KNUTSC�N RUBBIS:H SERV2CE�, IAIC.
BY:
Its Pres dent ,.
STATE OF MINNESOTA )
( ss.
COUMTY OF DAKOTA j
Th� foregain� it�strument was acknowI.edged befare me this
day of , 1989, by Ro7.lan Hoke, Mayc�z, a�nd
by Stephan Jil.k, Actm n�.�tratQrfClerk, 4f the City af Ro�e�nount, a
Minnesota munici.p�l corporati.Qn, on b�half of the carporat�ion and
pursuant to authority granted by i.ts City Cr�une�.i.
NC►TARY PUF�I,�IC
.,.�_
.�.,_
, L�EC.-1�-1'�89 11��� FR�tYI CAt•1PREL�, SGG�TT �'< FUCHS TCi 42'�203 P.9?
. � �
";
STATE OF MINNE�flTA j
t ss. ;
COUNTY OF ) y
�
The foreqoinq instrument was acknowledged be€ore me this
day af , 1989, by .
the of Knutson Rubbi�h Servi ces, Inc. , otn its �
behalf. .
, ,,
}.,
NOT.ARY PUBLIG ,
-5-