05-10-2016 ERMU MIN - Laserfiche WebLink

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they are better able to handle any questions or comments they receive from community members. 5.4 Well#3 Recondition Presentation Eric Volk presented a power point presentation of the Well #3 reconditioning project. The project began February 1, and was completed by April 15, 2016. The project involved pulling and replacing the well,replacing old pipes, sandblasting and painting the filter, installing new glass block windows, painting the floor, and replacement of all chemical lines and conduits. The reconditioning will help to extend the life of the well and filter for many years to come. 5.6 Landfill Gas Plant Engine Repair and Plant Operational Cost Update Tom Sagstetter gave an update on the Landfill Gas Plant engine repair. ERMU has experienced two catastrophic failures in the last 3 years; one in 2013, and the second in March 2016. The landfill gas plant received the repaired engine#4 on April 25th and was up and running at full production on April 26th. We have yet to receive the final invoice for the repair and are still waiting to find out if it will be covered under any type of warranty. As previously reported to the Commission,the cost is estimated to be around $112,000 for the repair. ERMU staff has also been in contact with the League of Minnesota Cities regarding the insurance policy for third party coverage for equipment breakdowns at the landfill gas plant to determine if that will be an option. Tom explained that the operational expenses of the plant have been an area of concern in recent years due to drastic increases in maintenance costs above and beyond those covered under the maintenance contract with Waste Management(WM). Tom informed the commission that WM is in the process of implementing new standard maintenance schedules that will involve installing new pistons rings and main bearings on a regular scheduled basis. The drastic changes with the new maintenance schedule will result in significant increases in parts and labor costs, and under the current operating structure of the plant and the contracts associated with it ERMU would be solely responsible for the incremental charges. There was discussion. Currently ERMU staff is evaluating historical and future projections of costs and revenue to determine the next steps. Tom shared that there has been communication with WM and Sherburne County about the drastically increasing costs, relatively flat revenue, and the viability of the facility. In an effort to increase the viability of the landfill gas to electric plant, ERMU staff has been exploring several options. Tom went over the different options in detail. There was further discussion. Moving forward, staff will continue to provide updates as information is gathered and options are considered. Page 5 Regular Meeting of the Elk River Municipal Utilities Commission May 10,2016