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RESOLUTION 98 - 125 <br /> <br /> A RESOLUTION OF THE CITY OF ELK RIVER <br /> <br />RESOLUTION APPROVING THE EXERCISE OF POWERS UNDER <br />MINNESOTA STATUTES, CHAPTER 453, RESPECTING A CERTAIN <br />ELECTRIC POWER GENERATION PROJECT <br /> <br />Be It Resolved as Follows: <br /> <br />1. Rentals. <br /> <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 /> <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 /> <br />(c) The Project would be a peak load generator owned by the City. <br /> <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 /> <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 /> <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 /> <br /> <br />