INFORMATION #3 08-07-2006 - Laserfiche WebLink

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Page 3 Regular Ineeting of tIle Elk River Municipal Utilities Cormnission July 11, 2006 5.4 Consider LFG'En2ine Maintenance The Elk River Municipal Utilities owns a landfill gas to electric generation facility at the Elk River LaIldfill. The installation of the 4th engine/generator was completed on 6-29-06. The commercial operation date for the 4th engine is 7-1-06. The other three engines are conslll1li11g excessive quantities of oil, which are causing the heads to fail. The Elk River Landfill has tried a number of differellt solutions but to no avail. Elk River Landfill and Utility staff are reconnnellding the piston rings be replaced on these engines at an approximate cost of$65,000. Tile repair should get us to the scheduled overhaul in 18 months. Because this is the lowest cost option, staff recommends this repair be completed. Motion by James Tralle to approve the repair of the three engines at the LFG plant. John Dietz seconded the illotion. Motion carried 3-0. 5.5 Revie\v & ConsiderPropertv Purchase At the March 14, 2006, Elk River Municipal Utilities Corrnnissionmeeting, the possible sale of tile Briggs property was discussed. This property lies directly east of our power plant alld contains 6.28 acres with about 40% being in the flood zone. The appraised value oftrus property is $288,000. To secure room for future facility expansion at our operation center, staff reconunends this property be purchased. . City planning department is concerned as this is viewed as a residential area. They would prefer the facility be moved elsewhere to a more suitable location. There will also be much resistculce to allow some tree removal to Inake roonl for future facilities. Another complicating factor is finances. The Elk River Municipal Utilities is very strapped for cash this year. This purchase may possibly incorporate delayed payment or a stepped pa)'lnel1t structure. JOIUl Dietz asked staff to check on the possibility of the sale price being lower thall the appraisal price. Motion by James Tralle to approve the purchase of the Briggs property. Jolm Dietz seconded the motiol1. Motiol1 carried 3-0. 6.1 Revie\v & Consider 2006 Write-ofrs The list of accoUllts sent to collection and added to the yearly write-offs were reviewed. This will be dOlle three tunes a year instead Ollce at the elld of the year. The currellt write-off totals through April 2006 were $22,441.88. Motion by James Tralle to approve the write-offs through April 2006. John Dietz seconded the nlotioll. Motion carries 3-0.