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5.4 EMRUSR 10-11-2022
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5.4 EMRUSR 10-11-2022
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10/12/2022 2:40:52 PM
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City Government
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ERMUSR
date
10/11/2022
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UTILITIES COMMISSION MEETING <br />TO:FROM: <br />ERMU Commission Theresa Slominski - GeneralManager <br />MEETING DATE: AGENDA ITEM NUMBER: <br />October 11, 20225.4 <br />SUBJECT: <br />Landfill Amendment <br />ACTION REQUESTED: <br />Approve the Second Amendment to the Service Agreement between Elk River Landfill and Elk <br />River Municipal Utilities <br />DISCUSSION: <br />The Landfill Gas Plant has been operating since 2002 when Elk River Municipal Utilities (ERMU) <br />and Elk River Landfill (ERL) entered into an agreement to convert the methane gas from the <br />landfill into energy. This agreement was amended in 2006 with the addition of a fourth engine. <br />The agreement expires October 31, 2022,and we have been working over the last two years to <br />determine the next steps. <br /> <br />After much negotiation, Minnesota Municipal Power Agency is entering into a new agreement <br />with ERL to take the methane gas and convert it to renewable natural gas. This means that the <br />ERL will cease to operate the engines. Under the original agreement, ERMU would need to <br />remove all the equipment, tear down the building, and return the site to its original buildable <br />state. ERL has agreed to purchase the equipment from ERMU for $45,000 and take the site as <br />is. This agreement is documented in the attached Second Amendment. Additionally, there are <br />some outstanding credits due ERMU for cost sharing in 2021 that are noted in the amendment. <br />The amendment has been reviewed by ERMU’s legal counsel. <br /> <br />ERL and ERMU have worked well together over the twenty-year term of this agreementand has <br />benefited the community with local generation, educational opportunities, and reduced gas <br />flaring in this partnership. Sherburne County played a significant role in this venture by <br />providing an interest free loan, and so did Great River Energy in purchasing the energy output. <br />The staff liaison for this project, Tom Sagstetter, has provided countless hours and personal <br />energy in ensuring the success of the project during its operation and in this final stage of the <br />sale. Staff recommends the Commission approve the attached Second Amendment to Service <br />Agreement. <br /> <br />ATTACHMENTS: <br /> Second Amendment to Service Agreement <br />______________________________________________________________________________ <br />Page 1 of 1 <br />78 <br /> <br />
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