4.4. SR 08-17-1998 - Laserfiche WebLink

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City of Elk River Peaking Project Page 2 o UPA would be designated by the City as its agent for the actual construction. The City would be responsible to reimburse UPA upon receipt of invoice for all project costs incurred. UPA at its expense would be responsible for and provide operations and maintenance, fuel, electric transmission service and accreditation through MAPP. 6. UPA at its expense would be responsible for providing dispatch services. The City reserves the right to use the turbine as emergency backup if the transmission system or substation is down. Further, the City would have the right to utilize the turbine when not in use by UPA. For hours utilized by the City, the City would be responsible for fuel and any transmission payments, if any, and its proportionate share of operation and maintenance costs. It is anticipated by the parties that, since the facility will be owned by the City, no property taxes would occur. If property tax laws change, the City would be responsible for all property taxes for the term of the lease. 10. It is anticipated that the facility will be operational on or before May 1, 2000. 11. UPA will take the lead in obtaining all required permits and the City will assist from a "lobbying" perspective or supporting role. Based on these general terms and conditions, the next step would be to proceed in the development of a full lease agreement. This agreement is intended to be a non-binding letter of intent that will be used by the parties as the basis of a formal agreement. Further it is understood that the final agreement will require the approvals of the UPA board of directors along with the Elk River Utilities Commission and the Elk River City Council. Elk River Municipal Utilities United Power Association Bryan Adams General Manager Tony Rude General Manager & Executive VP Enclosure: Exhibit A- Lease Payment Computation (later)