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have been established to allow ERMU staff to file for refunds for replacement equipment <br /> purchases. <br /> 5. ERMU will provide an update on the insurance claim in process with the League of MN Cities. <br /> • ERMU has received a letter from Motion Dynamics. The letter has been passed along to <br /> the League of MN Cities. The engine failure was a result of a main bearing that supports <br /> the crank shaft rotating in place which caused an oil port blockage. The blocked oil port <br /> restricted lubricant from getting to the crank shaft and connecting rods. This caused the <br /> engine to fail. ERMU is working with WM staff to determine costs associated with the <br /> failure and what was done as part of routine maintenance. <br /> 6. ERMU and WM will explore the options on the sale/assignment of the LFGP. <br /> • This is a complex discussion based on the number of agreements involved in the <br /> partnership. There are five documents that need to be considered; Operation and <br /> Maintenance Agreement,Electric Purchase Power Agreement,Landfill Gas Purchase <br /> Agreement, Sherburne County Financing and Promissory Note, and the easement with <br /> Waste Management for the land the facility is sited on. <br /> 7. ERMU will provide a new summary of financials incorporating actual costs for Engine#4 repair <br /> and landfill gas (MMBtu)cost relief. <br /> • The financials are positive by a small margin at this point,but not all costs for the Engine <br /> #4 rebuild have been determined. The insurance claim has not been determined but <br /> Motion Dynamics has provided a letter that has been passed along to the MN League of <br /> Cities. There will be further discussion about the claim in the months to come. <br /> 8. WM will research quality control and quality of Cat/Zeigler replacement parts. <br /> • WM is working with their supplier to find more information on quality control and <br /> testing of replacement parts. <br /> 9. WM will work on warranty or good faith compensation for the failure of Engine#4. <br /> • Engine#4 failed at approximately 19,000 hours of operation. Based on the time from <br /> service there is no warranty on the parts.The warranty with Motion Dynamics is 6 <br /> months(4,380 hours). <br /> ACTION REQUESTED: <br /> No action is required at this time. ERMU staff will provide updates as information is gathered and <br /> different options are considered. <br /> 'POWERED IT <br /> El <br /> Page 2 of 2 NATURE <br /> Reliable Public <br /> Power Proffer POWERED T O SERV E <br /> 54 <br />