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RESOLUTION 98 - 125 <br /> A RESOLUTION OF THE CITY OF ELK RIVER <br /> RESOLUTION APPROVING THE EXERCISE OF POWERS UNDER <br /> MINNESOTA STATUTES, CHAPTER 453, RESPECTING A CERTAIN <br /> ELECTRIC POWER GENERATION PROJECT <br /> Be It Resolved as Follows: <br /> 1. Recitals. <br /> (a) The City of Elk River, Minnesota, in cooperation and <br /> conjunction with the Elk River Municipal Utilities Commission (collectively, <br /> the "City"), proposes to enter into contract(s) with United Power Association, <br /> its successors and/or other persons (collectively, "UPA") to facilitate the <br /> completion of a certain electric power generation project (the "Project"). <br /> (b) The Project would consist of the construction and completion of <br /> a 35 to 50 megawatt gas turbine electric generator in the City. The cost of <br /> the Project is currently estimated to be $18,000,000. <br /> (c ) The Project would be a peak load generator owned by the City. <br /> (d) It is proposed that UPA, in consultation with the City, would act <br /> as the City's agent for the planning, permitting, acquisition, completion, and <br /> operation of the Project, subject to certain rights of the City to operate the <br /> Project when not used by UPA. The Project, as a peak load generator, is <br /> expected to be operational only on occasions throughout any given year when <br /> demand for additional electric energy so requires. The City expects to benefit <br /> from the Project by enhancing its capacity against the growing electricity <br /> needs of the City and against uncertainty of national electric capacity as a <br /> whole. <br /> (e) The City and UPA would enter into joint and cooperative <br /> agreement(s) (collectively, the "Agreement") specifying the respective rights <br /> and obligations of the City and UPA. <br /> (f) The City would issue revenue or similar bonds or notes (the <br /> "Bonds") to finance the Project. These Bonds would be payable from <br /> revenues derived from UPA under the Agreement and may be secured by a <br /> mortgage or other suitable security interest in the Project. The Bonds would <br /> not be a general or moral obligation of the City, would not be secured by any <br /> of the City's existing municipal electric utility assets, and would not be <br />