3.0 ERMUSR 08-22-2006 - Laserfiche WebLink

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Page 3 Regular meeting of the Elk River Municipal Utilities Commission July 11, 2006 5.4 Consider LFG Engine Maintenance The Elk River Municipal Utilities owns a landfill gas to electric generation facility at the Elk River Landfill. The installation of the 4`'' engine/generator was completed on 6-29-06. The commercial operation date for the 4`" engine is 7-1-06. The other three engines are consuming excessive quantities of oil, which are causing the heads to fail. The Elk River Landfill has tried a number of different solutions but to no avail. Elk River Landfill and Utility staff are recommending the piston rings be replaced on these engines at an approximate cost of $65,000. The 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 motion. Motion carried 3-0. 5.5 Review & Consider Property Purchase At the March 14, 2006, Elk River Municipal Utilities Commission meeting, the possible sale of the Briggs property was discussed. This property lies directly east of our power plant and contains 6.28 acres with about 40% being in the flood zone. The appraised value of this property is $288,000. To secure room for future facility expansion at our operation center, staff recommends 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 resistance to allow some tree removal to make room 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 payment structure. John Dietz asked staff to check on the possibility of the sale price being lower than the appraisal price. Motion by James Tralle to approve the purchase of the Briggs property. John Dietz seconded the motion. Motion carried 3-0. 6.1 Review & Consider 2006 Write-off s The list of accounts sent to collection and added to the yearly write-offs were reviewed. This will be done three times a year instead once at the end of the year. The current write-off totals through Apri12006 were $22,441.88. Motion by James Tralle to approve the write-offs through April 2006. John Dietz seconded the motion. Motion carries 3-0.