6.3 ERMUSR 02-10-2004 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.
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