5.3. ERMUSR 07-08-2003 Elk River
Municipal Utilities
322 King Avenue phone: 763.441.2020
Elk River,MN 55330 Fax 763-141.8099
June 25. 2003
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Takle
James Tralle
From: Bryan C. Adams
Subject: Additional Engine/Generator at Landfill
Staff is starting the process of investigating the possibility of adding a 4`h
engine/generator at our LFG facility. There will be enough gas to run the 4th engine in
about a year. It is also projected to take that long to secure the necessary air permits to
run the 4th engine.
Attached is a preliminary pro-forma reflecting the capital expense, operating expense,
and operating revenue associated with the 4th engine. This pro-forma assumes the same
terms and conditions as the existing facility. With an estimated capital expense of
$737,900, margins will be generated over a 20 year period of$937,705, which will more
than cover the initial investment with no interest. Preliminary discussion with Sherburne
County staff indicate a high interest to financing the 4`h engine/generator.
The big variable still remains the cost of the air permits. We have approximately $35,000
in air permit costs to be paid for the current facility. This is a disputed amount that Waste
Management and Elk River Municipal Utilities feels the other party is responsible for.
Instead of a legal battle, it may be more productive to pay for this cost with this facility
addition. The environmental assessment worksheet (EAS) for approximately $20,000,
will be required due to the addition of the 4th engine. Depending upon the EAS outcome,
an environmental impact study (EIS) at approximately $200,000, may be required.
Unfortunately, we have no control over the EIS. Minnesota Pollution Control Agency
(MPCA) determines the criteria and hires the consultants. We are required to pay all
associated costs and implement the recommendations.
The initial financial projections and public relation response is favorable for adding the
4th engine. If this commission desires to proceed with this proposed addition, I will
continue to firm up the numbers and initial assumptions.
a 41 b 5 5 a6 RRRRR"a $
R a aR A«aaaa�^i
R3@ a 4
3t t 5 g a! A'aa»aiag
a HE I z 4 R3 RRRR°°gR`s
iC e p p a! R« awRgal
ERE 8 r r H § :
» 3u o 5 5 ag »
1 aa . ! 8 E1 ERR: = - -
$ a 5 a: s'»
3a ° / S A! "
a
R Er. s 4 I' RA RRR: ' R
n R$R g i i EA REE: —
3¢ s p E AR saunaloi
R HE 3 -C. Ra HHEEREP
kt 6 g Al ""E(1$R1
n 8$F 8 i E EE EHEEPRIR
87 ° u u AA »»a»„R 3$
R � i R » I gS EERE °ggE I r§12 SZ a 5 a AA fw»NA!3i
,J ___. __ - _ __ __+--
8$ @ a a Er EEEEE° Fm 1
+� o �`. p A4 »A dS - ---- ---- ---
»» f
§$R = 3 31 R$ 11RR1°E11 ”
n 12 8 p q A3 &»»A02a2»
R §§r, 3 B 8 S0 §§§§ eio
3a ° r N AA ""„E!1;
k--
g HE ; M r Lr HH°EoRr"
:t e 5 5 AR x »3:30
$ §h 7 "s R° §RERg°s; §
r 30 ° q 5 AS » » °_ 3c »
h RE Y m m 3n 111EMPR^a
3¢ ° g 0 »R »„r °
E R
J_--
R$F 3 R $ §c RRRE1111! 1
R 3S ! g 5 »» »»a»»I 7t1
I E3a 4'g R Rw R;RED°rC
5195 1 r, ECHERSEE
=m a„arrs°sna
— — €€ _ L-.
F ill R - ampno- olp
off# 1 0.4
» .. »»_.
? a L s
_ e E !
yy .'s a i u , t6 e
C ¢ Sin S 1a ': E sill ! r g g§ „ i 5 GF m i A 5 !;SIJHhilluJIJiidizllI;p5 pY le LI €A 1 - IKo E c ell{ €i Sa = 4E g� u a e H - "s �. H IE&! ` ; N6 Edg as,cs 3 a uua 6 t'f Y,d uw`r p
w3 �� .5 �°- o° Diu