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'~~j <br />Elk River <br />Municipal Utilities <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />October 2, 2006 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />John Dietz <br />Jim Tralle <br />From: Bryan Adams <br />Subject: New Data Center Facility <br />phone: 763.441.2020 <br />Fax: 763.441.8099 <br />The discussions with United Health Group (UHG) continue to move forward. The plan is to <br />close on the property in January 2007, start construction in March 2007 with completion in <br />June 2008. They will start taking power for testing in January 2008. Attached is the following <br />information for your review: <br />1) Initial proposed service agreement. Their attorney's are reviewing and must be <br />completed by November 1, 2006. <br />2) Drawing of UHG feeder and substation proposed location. Estimated costs of <br />feeder and substation are $950,000 and $2,130,000 respectively. <br />3) Notice to bidders fora 69 kv transformer for the new substation to serve this facility. <br />Projected 50 week delivery period. <br />4) Memo to Parks & Recreation Commission addressing the feeder route through <br />Camp Cozy. <br />5) Projected performance for this project using projected 2007 retail & wholesale rates. <br />We are also meeting with GRE to coordinate the transmission capacity issues. <br />