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Elk River <br />Municipal <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />February 28, 2005 <br />To: Elk River Municipal Utilities Commission <br />Terry Takle <br />Jim Tralle <br />John Dietz <br />From: Bryan Adams <br />Subject: LFG - 4`~' IJngine <br />phone: 763.441.2020 <br />Fax: 763.491.8099 <br />We have discussed on a number of occasions the addition of a 4`~' engine at the Elk River <br />Landfill LFG facility. Attached is a copy of a letter sent to Clk River Landfill, Sherburne <br />County and Great River Energy with a memorandum of intent. The three companies <br />mentioned above and ourselves all have intertwining agreements to make this project a <br />success. The attached letter explains the necessary contract revision, schedule, cash flow, <br />and construction costs. I have a verbal approval on the memorandum of intent fi°om the <br />three parties, but am still awaiting written conformation. <br />The two large variables in this project is the cost of the 4 engine/generator due to the <br />recent steel price increases and the total cost of the air permit. My desire is to receive <br />authorization to proceed with the air permitting process. Once we have a good indication <br />of air permit requirements, we can purchase the engine/generator and installation. <br />Staff recommends the following. <br />a) Authorization to execute Memorandum of Intent. <br />b) Adopt attached resolution referring to chapter 453. This allows us to proceed <br />with the project and not utilize public bidding requirements. <br />c) After all 4 parties have executed the memorandum of intent, start the process <br />of securing the necessary air permits at an estimated cost of $20,000. This will <br />be initiated by ERMU with Elk River Landfill being signature to the actual air <br />permit and Barr Engineering will be the consulting engineer for securing the <br />air permit. <br />ities <br />