5.2. ERMUSR 03-08-2005 - Laserfiche WebLink

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~/ Elk River -~-~ Municipal Utilities i 3069 Orono Parkway F,lk River, NIN 55330 February l8, 2005 Deb Walters Elk River Landfill 22460 Hwy 169 NW Elk River, MN 55330 Subject: 4`~' F,ngine,'Generator at Elk River Landfill Dear Deb; phone: 763.441.2020 Fax: 763.941.8099 We have been informally discussing adding a 4`~' engine/generator at the LFG facility. understand that there is adequate gas to operate a fourth unit from now to the end of the contracts in 2022. Now is a good time to decide if we desire to move ahead with the fourth unit. "hhe enclosed spreadsheet is the financial analysis which I prepared based on a project cost of $6(1,000.00 spread over 20 years. The current contract expires in 2022 or approximately 16 years from now. The additional fourth unit appears to cash flow over a I6-year term. I believe the existing agreements need to be addressed as follows: a) Grant of Easement between Elk River Municipal Utilities and Elk River Landfill, Inc. with term vv°hen electric generating facility ceases commercial operation. Addition of a 4`~' unit will have no effect on this agreement. b) Gas Purchase contract between Elk River h~Iunicipal Utilities and Elk River Landfill with existing term of I6 years and a fixed price. Review fixed gas pricing. c) Service Agreement between Elk River Municipal Utilities and Elk River Landfill with existing term of 16 years and varying pricing over 16 years for 3 writs. Section 2.1 1 Clean Air Permit will need revising to reflect who is paying for facility air permit revisions and section 6. I . Compensation will need to be adjusted by 4/3 to reflect addition of the 4`~ unit. Exhibit B should be revised to reflect the 4`~' w1it. d) Promissory Note between Elk River Municipal Utilities and Sherburne County revised to rei7ect the required additional loan amounts.