98-125 RES RESOLUTION 98 - 125
A RESOLUTION OF THE CITY OF ELK RIVER
RESOLUTION APPROVING THE EXERCISE OF POWERS UNDER
MINNESOTA STATUTES, CHAPTER 453, RESPECTING A CERTAIN
ELECTRIC POWER GENERATION PROJECT
Be It Resolved as Follows:
1. Rentals.
(a) The City of Elk River, Minnesota, in cooperation and
conjunction with the Elk River Municipal Utilities Commission (collectively,
the "City"), proposes to enter into contract(s) with United Power Association,
its successors and]or other persons (collectively, "UPA") to facilitate the
completion of a certain electric power generation project (the "Project").
(b) The Project would consist of the construction and completion of
a 35 to 50 megawatt gas turbine electric generator in the City. The cost of
the Project is currently estimated to be $18,000,000.
(c) The Project would be a peak load generator owned by the City.
(d) It is proposed that UPA, in consultation with the City, would act
as the City's agent for the planning, permitting, acquisition, completion, and
operation of the Project, subject to certain rights of the City to operate the
Project when not used by UPA. The Project, as a peak load generator, is
expected to be operational only on occasions throughout any given year when
demand for additional electric energy so requires. The City expects to benefit
from the Project by enhancing its capacity against the growing electricity
needs of the City and against uncertainty of national electric capacity as a
whole.
(e) The City and UPA would enter into joint and cooperative
agreement(s) (collectively, the "Agreement") specifying the respective rights
and obligations of the City and UPA.
(f) The City would issue revenue or similar bonds or notes (the
"Bonds") to finance the Project. These Bonds would be payable from
revenues derived from UPA under the Agreement and may be secured by a
mortgage or other suitable security interest in the Project. The Bonds would
not be a general or moral obligation of the City, would not be secured by any
of the City's existing municipal electric utility assets, and would not be
payable from or a lien against the rates and charges imposed by the City on
its municipal electric customers.
2. Authorization. It is hereby resolved and determined pursuant to
Minnesota Statutes, Section 453.58, that the City may exercise such powers
and enjoy such privileges provided in Minnesota Statutes, Chapter 453, as
may be desirable or necessary in connection with the City's participation in
the Project, as generally described hereinabove, including without limitation
the designation of UPA as agent of the City, the entering into the Agreement,
and the issuance of the Bonds in aid of financing and completing the Project.
3. Approval and Publication. This Resolution has been duly adopted by
the City Council of the City of Elk River, Minnesota, and by the Elk River
Municip al Utilities Commission, respectively, at duly called and regularly
held meetings thereof on November 9, 1998, and shall be published once in
the official newspaper of the City as soon as conveniently possible pursuant
to Minnesota Statutes, Section 453.58, Subdivision 2. This Resolution in
itself is not intended and shall not be interpreted as a commitment of the
City to the Project, which shall be contingent upon the execution of the
mutually acceptable Agreement.
Passed and adopted by the City Council and the Elk River Municipal
Utilities Commission of the City of Elk River this 9th day of November, 1998.
ATTEf~T:
Sandra Peine, City Clerk
ELK RJ rER MUNICIPAL
U IES COMMISSION
eorge D resident
ELK RIVER CITY COUNCIL
~enry~k. Dui~sman, Mayor --