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07-958Council File # 6 � — G � � Green Sheet # 3044216 RESOLUTION .�, � Presented PAUL, MINNESOTA � 1 WHEREAS, Eureka Recycling, a Materials Recovery Facility, which serves as a recycling facility 2 for St. Paul and the surrounding metro area is in the process of financing an optical glass sorter, 3 which is to be instalied at their recycling facility, and 4 5 WHEREAS, this optical glass sorter is only one of two such pieces of equipment installed 6 nationwide in a Materials Recovery Facility, and 7 10 11 12 13 14 15 16 17 WHEREAS, this new glass processing equipment will increase the value of the city's glass stream, thus lowering processing costs $25,000 per year, and increasing the city's revenue sharing from the Eureka Recycling contract, and BE IT RESOLVED, that by the Council's authorization to enter into an intercreditor agreement between the City and Ramsey County, it will subordinate any city security interest in processing equipment to be purchased and installed by Eureka Recycling for glass processing. This agreement will allow Eureka Recycling to utilize a loan from the Ramsey County Recycling Market Development Fund to proceed with this purchase. Requested by DepaRment oE � � � • � �i� ; {�'f,/1/'�/7/l��! Form By: Form By: Form By: Adoption Certified by Coun il Secretary BY= / na ' Approve o • Date ` � `/ d� By: � � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � 6� -�5 $ �epartmeM/officeleouncil: Date Indiated: pyy -r�nti�woacs 20-SEP-07 Green Sheet NO: 3044216 CoMact Person & Phone: Rick Person 266-6122 Must Be on Council Agenda by (Date): 03-0CT-07 Doc. Type: RESOLUTION E-Dacument Required: Y DocumeM Contact: Larry Michalitsch CoMaM Phane: 266-6065 ue�wrwKw xuawrmscm nmwvva�c I � 0 � blicWorks _ DeoarlmentA«omtant G�l _/li Assign 1 blicWorks De entDirecmr ,,t '� Number 2 tyAaorner (StrAttornev �l� For Routing 3 � nancialServices Director �� °� 0� Ofdet 4 or's0ffice Ma or �fovu$50000 5 ,Cooncil C7tv Couneil 6 � blic Works PubGc Worlcs Total # of Signalure Pages _(Cfip All Lxaiions for Signature) Council authorization to enter into an intercreditor agreement between the City and Ramsey County subordinating any ciry security interest in processing equipment to be purchased and installed by Eureka Recycling for glass processing, urilizing a loan from the Ramsey Counry Recycling Mazket Development Fund. itlaTions: Approve (A) or R Planning Commission CIB Committee Civil Service Commission 1. Has this persoNfirm ever worked under a contract for this department? Yes No 2. Has this person/firm ever been a city employee? Yes No 3. Does this persoNfirm possess a skill not nortnally possessed by any current city empioyee? Yes No Facplain all yes answers on separate sheet and attaeh to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Eureka's new optical sorting line is being financed with loans from MPCA ($100,000) and RacnSey County ($500,000) one of only two such systems in the U.S. installed at a Materiais Recovery Facility. The technology opfically idenfifies and sorts clear giass from colored glass using air jet classification, along with removing contaminants, then air classifies brown from green glass in a second pass through the system. AdvanWges If Approved: The new glass processing equipment wIll increase tl�e value of the ciry's glass stream, lower processing costs $25,000 per year, and increase the city's revenue shaze from the Eureka contract. Disadvantages If ApproveA: Nane Disadvantages If Not Approved: Eureka would not be able to proceed with this project. Transaction: Funding Source: Financial Information: (Explain) i�s p• •' CostlRevenue Budgeted: Activity Number: September 27, 2007 4:10 PM Page 1 e�-�sg INTERCREDITOR AGREEMENT The Neighborhood Recycling Corporarion d/b/a Eureka Recycling THIS AGREEMENT ("AgreemenY') is made effecrive as of the day of September, 2007, by and between RAMSEY COITNTY, a political subdivision of the State of Minnesota (the "Lender") and CITY OF ST. PAUL, a Minnesota municipal corporation (the "Creditor"). RECITALS (1) The Lender may make a loan to The Neighborhood Recycling Corparation d/b/a Eureka Recycling (the `Borrower") secured by the property described on Exhibit A attached hereto and the proceeds hereof, as that term is defined in the Uniform Commercial Code (collectively, the "Collateral"); and (2) The Lender is unwilling to make such a loan unless the Lender has perfected first security interests in the Collateral. Accordingly, the Lender and the Creditor agree as follows: Incomoration of Recitals. The above recitals are incorporated herein by reference and made a part hereof. 2. Order of Prioritv. The Lender shall have a security interest in the Collateral. The Creditor subordinates any present or future security interest or any other security interest it may have in the Collateral to the present or future security interest of the Lender in the Collateral. The Creditor shall not, at any rime, assert any security interest in any of the Collateral having parity with or priority over the security interest of the Lender in the Collateral. 3. Additional Indebtedness. No provision of this Agreement shall prevent the Lender from extending, modifying or increasing, as applicable, its lending to the Borrower, all of which extensions of credit shall be secured by a security interest in the Collateral hauing priority over the Creditor's security interest therein. 4. Third Parties Unaffected. This Agreement is solely far the benefit of the Lender and the Creditor. There are no other parties who are intended to be benefited hereby. 5. Form of Obli�ations and Time of Perfection Irrelevant. This Agreement shall remain in full force and effect, notwithstanding that the Lender or the Creditor terminates or modifies by agreement ar otherwise any of thear C� - �i5� respective agreements with the Borrower. The subordination by the Creditor contained herein is effective irrespecrive of: (a) T'he time or order of acquisition, attachment or perfecrion of any security interests or other interests of the Creditor in the Collateral; (b) The time or order of filing of financing statements by the Creditor; or (c) The failure to give notice or timely notice of the acquisition or expected acquisirion of purchase money or other priority with respect to any security interests or other interest. 6. BindinQ Effect. This Agreement shall be binding upon and inure to the benefit of the Creditor and the Lender and their respective successors and assigns. Further, this Agreement shall be binding upon the parties so long as either has unpaid obligarions from the Borrower, which are secured by the Collateral. 7. Governin� Law. This Agreement shall be governed by and conshued in accordance with the laws of the State of Minnesota. 8. Severabilitv. Should any part of this Agreement be deemed invalid or unenforceable as contrary to applicable law, the parties agree that such provision shall automatically be deemed to be reformed to be consistent with applicable law. 9. Counter�arts. This Agreement may be executed in any nuxnber of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, when taken together, shall constitute one and tke same instrument. 10. No Commitment to Lend. This Agreement does not imply a commitment by the Lender to lend or extend credit to the Borrower. 11. Waiver of Jurv Trial. The parties waive any right to trial by jury in any action or proceeding based upon or pertaining to this Agreement. 2 o� -°tsg IN WITNESS WHEREOF, the parties hereto have executed this Agreement, the day and year first above written. CIT'Y OF SAINT PAUL: Bruce Beese, Public Works Director Office of Financial Services Director Approved as to form: RAMSEY COIINTY: By: David Twa, Ramsey County Manager Assistant City Attorney C� - °is3 EXHIBIT A - COLLATERAL Cnstomer No. Descripfion Cost Vender Equipment No. GL —1 Disc screen $29,063 Lovegreen GL — 2 Fines Incline $16,775 Lovegreen Conv. GL — 3 270 Accum $12,923 Lovegreen ho er GL — 4 GSl Feed Conv $18,030 Lovegreen GL — 5 Platform GSl $22,000 Lovegreen GL — 6 Glass Sort 1 $163,200 MSS GL — 7 GS2 Feed Conv $33,207 Lovegreen GL — 8 Platform GS2 $22,000 Lovegreen GL — 9 Glass Sort 2 $133,500 MSS GL —10 GSl Discharge Included in Lovegreen Chute Platform GS1 GL —11 GSI Discharge Included in Lovegreen Chute Platform GS2 GL —12 Glass Crusher $39,390 Lovegreen GL —13 Control Panel $13,685 Industrial Electric TOTAL $503,7'73 � �, , �