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<br />Page 4 <br />Regular meeting of the Elk River Municipal Utilities Commission <br />June 12,2007 <br /> <br />be spread over 2 years. It is hopeful this can be funded with cash reserves, depending on <br />WAC fees collected in 2007. If this can not be done, MCMU bonds can be utilized in 2008. <br /> <br />James Tralle moved to proceed with construction of Well #9. Jerry Gumphrey seconded the <br />motion. Motion carried 3-0. <br /> <br />5.6 LFG Update <br />Last year we experienced premature head and valve failure on the engines at the landfill. <br />The failure was thought to be a result of high hydrogen sulfide from sheet rock in the landfill. <br />Further testing by Waste Management has confirmed our thoughts but the hydrogen sulfide <br />concentration is much higher than anticipated. Waste Management is now pursuing isolating <br />the effected wells with an alternate piping system and installing a candlestick flare for those <br />wells only. This modification requires a revision to the air permit by MPCA, which may take <br />some time. <br />fu a related issue, Waste Management has installed additional gas wells and has enough <br />gas to supply two more engines. Our initial intent was to expand the landfill gas electric <br />generation facility when the landfill expands. Waste Management is not hopeful that the <br />landfill will be expanded. The cost of the land to the south is far above what Waste <br />Management desires to pay. <br /> <br />Jerry Gumphrey moved to pursue the possibility of adding two more engines. James Tralle <br />seconded the motion. Motion carried 3-0. <br /> <br />6.1 Review Vehicle Purchases <br />Our current vehicle replacement policy is to trade in vehicles (line trucks and pick-up <br />trucks) at 10,000 hours of operation or 10 years. Our other construction equipment, cable <br />plows, tractor backhoe, front end loader, etc. may be kept over 10 years because of <br />intermittent use. Our 1998 Freightliner with a Holan 42 aerial bucket is approaching 10 years <br />old and is due to be replaced. Delivery for a new electric line truck is approximately nine <br />months. Estimated cost for a replacement line truck is in the $130,000 range. Staff is <br />currently securing bids and will present a bid tabulation with recommendations at the July <br />commission meeting. <br /> <br />6.2 Review Residential Electric Connection Fees <br />A developer of a new addition in Otsego feels our connect fees are too high. Our connect <br />fees are as follows: <br /> <br />Developer Cost - With City Water & Sewer <br />Developer Cost - Without City Water & Sewer <br />Builder Cost <br /> <br />$420/living unit <br />$520/living unit <br />$800/living unit <br />