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<br /> <br />GREAT RIVER <br />ENE R G ye <br /> <br />17845 East Highway 10 . P.O. Box 800 . Elk River, Minnesota 55330-0800 · 763-441-3121 · Fax 763-241-2366 <br /> <br />February 1, 2007 <br /> <br />Ms. Lori Johnson <br />Administrator <br />City of Elk River <br />13065 Orono Parkway <br />Elk River, MN 55330 <br /> <br />,::;:: ':) <br />'1......[; C j.~ <br /><., <br /> <br />Dear Lori: <br /> <br />Re: Proposed Elk River Peaking Facility <br />Draft Host Agreement and Resolution of Support <br /> <br />Based on our conversations over the last several weeks, I have drafted the attached documents <br />f()ryour review. The form of these documents is very similar to what was used for our Itasca <br />County peaking project which is now completing construction. <br /> <br />With regard to the host agreement, I have attempted to capture the understanding we reached <br />with you during our January 22 meeting. Also, I understand that discussions have occurred <br />between Terry Maurer, the city's engineer, and GRE's Mike Rnley regarding the land for the <br />wastewater treatment expansion. I am hopeful that those discussions can continue with the end <br />result satisfying the city's need to expand its wastewater treatment facility and GRE's need to <br />support its growing system. <br /> <br />With regard to the request voiced by Bryan Adams at our January 26 meeting, we are <br />proposing an additional form of in-lieu payment to the dty based on the actual generation from <br />the peaking facility. We wOl,Jld be happy to discuss this in more detail with you or Bryan. <br /> <br />I look forward to working with you and the City Council on the attached items. GRE plans to <br />attend the February 20 council meeting to present information on the project and answer any <br />questions. Please call me at 763-241-2264 to discuss further preparations for that meeting. <br /> <br />Sincerely, <br /> <br /> <br />Manager, Genet'1ation Project Development <br /> <br />c: Bryan Adams, Terry Maurer <br /> <br />A Touchstone Energl Cooperative ~t-)t( <br />- <br />