5.4 EMRUSR 10-11-2022UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Theresa Slominski - GeneralManager
MEETING DATE: AGENDA ITEM NUMBER:
October 11, 20225.4
SUBJECT:
Landfill Amendment
ACTION REQUESTED:
Approve the Second Amendment to the Service Agreement between Elk River Landfill and Elk
River Municipal Utilities
DISCUSSION:
The Landfill Gas Plant has been operating since 2002 when Elk River Municipal Utilities (ERMU)
and Elk River Landfill (ERL) entered into an agreement to convert the methane gas from the
landfill into energy. This agreement was amended in 2006 with the addition of a fourth engine.
The agreement expires October 31, 2022,and we have been working over the last two years to
determine the next steps.
After much negotiation, Minnesota Municipal Power Agency is entering into a new agreement
with ERL to take the methane gas and convert it to renewable natural gas. This means that the
ERL will cease to operate the engines. Under the original agreement, ERMU would need to
remove all the equipment, tear down the building, and return the site to its original buildable
state. ERL has agreed to purchase the equipment from ERMU for $45,000 and take the site as
is. This agreement is documented in the attached Second Amendment. Additionally, there are
some outstanding credits due ERMU for cost sharing in 2021 that are noted in the amendment.
The amendment has been reviewed by ERMU’s legal counsel.
ERL and ERMU have worked well together over the twenty-year term of this agreementand has
benefited the community with local generation, educational opportunities, and reduced gas
flaring in this partnership. Sherburne County played a significant role in this venture by
providing an interest free loan, and so did Great River Energy in purchasing the energy output.
The staff liaison for this project, Tom Sagstetter, has provided countless hours and personal
energy in ensuring the success of the project during its operation and in this final stage of the
sale. Staff recommends the Commission approve the attached Second Amendment to Service
Agreement.
ATTACHMENTS:
Second Amendment to Service Agreement
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