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<br />Elk River -...- <br />Municipal Utilities <br />13069 Orono Parkway <br />Elk River, MN 55330 <br /> <br /> <br />phone: 763.441.2020 <br />Fax: 763.441.8099 <br /> <br />March 28, 2005 <br /> <br />To: Elk River City Council <br /> <br />From: Bryan Adams f) A f <br />General Manager, Elk River Municipal Utilities ~.. <br /> <br />Subject: <br /> <br />4th Engine at Elk River Landfill <br /> <br />The landfill gas to electric generation facility at the Elk River Landfill was constructed in <br />2002. At that time, this facility was constructed with accommodations for four <br />engine/generators. Three engine/generators were installed initially and the 4th <br />engine/generator installed when sufficient landfill gas became available. Sufficient <br />landfill gas is now present to support the 4th engine/generator. <br /> <br />There are four contractual parties involved to ensure the successful operation of this <br />facility and they are as follows. <br />Elk River Municipal Utilities - owners <br />Elk River Landfill- Operate and maintain the facility, supply landfill gas <br />as fuel, and provide land easement for the facility. <br />Sherburne County - Furnish financing at 0% interest. <br />Great River Energy - Purchase the energy out from this facility. <br /> <br />These agreements have worked well to date. This facility has exceeded the financial and <br />operational objectives during the first 2 years of operation. In 2004, the Environmental <br />Learning Center was utilized to host approximately 70 tours/presentation of the <br />landfilllLFG facility. This exposure provides a very positive light for Elk River. <br /> <br />Attached is a copy of a letter dated February 18, 2005 to the 4 contractual parties <br />involved with this facility asking for interest in installing the 4th engine/generator. All 4 <br />parties have executed the memorandum of intent. The necessary contracts have been <br />initiated to secure the necessary air permit for the facility expansion. Sherburne County <br />staff has asked ifthe City desires to participate financially in the 4th engine/generator <br />instead of Sherburne County financing the entire amount. <br />