4.5. SR 06-04-2001 - Laserfiche WebLink

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ElkBdver Municipal Utilities 322 King Avenue Elk River, MN 55330 To: Elk River City Council Stephanie Klinzing John Dietz Louise Kuester Dan Yveite Paul Motin From: Bryan C. Adams Item ~ 4.5. phone: 763.441.2020 Fax: 763.441.8099 Subject: Proposed LFG Project The Elk River Municipal Utilities (ERMU) in partnership with Sherbume County (SC) and Waste Management (WM) are proposing to expand the Landfill Gas (LFG) to electrical energy project at the Elk River Landfill. The expansion entails removing the existing 550 Kw generation unit and installing 3 - 800 Kw generation units with provisions to install a 4th unit in the future. This project also included a building with an education center for tours and group presentations about landfills and LFG to energy technologies. The current business arrangement for this project is as follows: ERMU would own this facility thus preselwing the ability to receive Dept. of Energy annual credits, SC would loan the money for this project (Estimated to be $2,350,000), and WM would operate and maintain this facility. The operation and maintenance expense, along with the principal repayment would be financed with the sale of electricity produced by the facility. Life of the project is 20 years. The security for SC's loan is the physical assets of the LFG to electric generation facility with no obligation to the City of Elk River or ERMU. Enclosed is the following information for your review: 1) Letter of Intent between ERMU and WM. 2) Letter of Intent between ERMU and SC 3) Resolution Approving the Exercise of Powers Under Minnesota Statues, Chapter 453, Respecting a Certain Electric Power Generation Project. The above referenced resolution was adopted by the ERMU Commission on April 10, 200l. The City Council should also adopt this resolution so this project can move forward. This resolution is very similar to resolution #98-125, which is attached, for another project that did not come to fruition.