6.3 ERMUSR 02-10-2004 - Laserfiche WebLink

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Elk River Municipal Utilities 322 King Avenue phone: 763.441.2020 Elk River,MN 55330 Fax:763.441.8099 January 22, 2004 To: Elk River Municipal Utilities Commission John Dietz Jerry Takle James Tralle From: Bryan Adams Subject: Service Territory Acquisition The 2004 electric department contains a$400,000 allocation for service territory acquisitions. This $400,000 is broken down into two components of which approximately $100,000 is compensation for future sales and $300,000 for new territory. In 2004, we are proposing to acquire area 23 which is shown on the attached Demarcation line map. Area 23 contains approximately 94 customers at an approximate acquisition cost of$290,000. Staff recommends authorization be given to acquire area 23. In the process of working out the details acquiring area 23, it became evident it would be in the best interest of ERMU and Connexus if we traded approximately 90 acres of land as shown on the attached map. This would save ERMU from building additional line to the north of Brook Road while Connexus will not have to maintain a small addition in the middle of our area. Connexus required the traded area be approved by February 1, 2004 to proceed with the 2004 acquisition of area 23. President of the Commission, John Dietz, authorized execution of the trade document. This trade should also be acknowledged by this commission. Also attached is a proposed 133 unit development titled "Woodland Hills". This development lays in both service territory areas 8 & 22. Staff is also proposing we purchase enough of area 22 to encompass the area in "Woodland Hills". There should be little if any up front costs due to this being bear ground. We can then construct and serve the entire development.