ERMUSR Resolution 04-12-2005 - Laserfiche WebLink

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RESOLUTION A RESOLUTION OI-' "TIIE C1TY OE ELK RIVER RESOLUTION APPRO~~ING TIIE EXERCISE OF PO«'ERS UNDER ~~1INN'ESOTA STATUTES, CHAP"hER d53, RF.SPh;CTING A CL~,RTAIN ELECTRIC PO~'1~EI2 GENERA"TION PROJECT' 13c It Resol~cd as Follo~~~.e: Recitals. (a) The City of Llk River, Minnesota, in cooperation and conjw~ction with the h;k River Municipal Utilities Commission (collectivel~~, the "City') proposes to enter into contract(s) ~~ith Sherburne Count~~, ~9innesota (the "Count}~") and \~'aste y1a~~agement, Inc.. its successor, assigns and-or other persons (collecti~~ely `'~~'?~1") to iac~litate the addition of a certain electric po~~~er generation project (the "Project")_ (b) The Project ~~ouid consist of the addition and completion of an Ii00 kilowatt hour landfill gas-to-energy electric generator located in the City at the hIk Riper Landfill. TLe cost of the Project is currently estimated to be 5670,000.00. (c) The Project ~~~ill be a base load generator owned by the Cite. (d) It is proposed that y~'rt1, in conjunction ~~~ith the City, would plan. complete and operate the Project. The Project is expected to be operational on a full-time E;asis to provide electric energy to the customers of the City. ~1 he Cite expects to benefit from the Project by enhancing its capacity against the gro~~~ing e!ectne~ty needs of the City and against uncertainty of national electric capacity as a whole. (~) Ii is proposed tl;at the County loan the sum of approximately 5670,000.00 from its Solid ~'~~aste Surcharge fund to the City for the purchase of the generators and related equipment, ~~~ith zero interest over a sixteen ~-ear rcpa}~ment period- (f) The City, the County and ~>v'M r~~ould enter into agreements (collectively, the "Agreements") specifying the respective rights and obligation of the Ci(y, the County and Vv'iti1. (g) The City v.~ould issue a note(s) to finance the Project. These Notes would be payable from revenues derived Irom the operation of the Project and ~~'ould be secured b~~ a mortgage or other suitable security interest in the Project. The Note(s) ~~ould not be a general or moral obligation of the City, ~~~ould not be secured by any of the City's existing municipal electric utility assets, and ~~~ould not be pa~~able from or a lien against the rates and charges imposed by the City on its municipal electric customers.