01-031 RES RESOLUTIONo~_- 31
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. Becitals.
(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 Sherburne County, Minnesota (the "County") and Waste Management,
Inc., its successor, assigns and/or other persons (collectively "WM") 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 2.4
kilowatt hour landfill gas-to-energy electric generator located in the City at the Elk. River
Landfill. The cost of the Project is currently estimated to be $2,350,000.00.
(c) The Project will be a base load generator owned by the City.
(d) It is proposed that WM, in conjunction with the City, would plan, complete
and operate the Project. The Project is expected to be operational on a full-time basis
to provide electric energy to the customers of the City. 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) It is proposed that the County loan the sum of approximately
$2,350,000.00 from its Solid Waste Surcharge fund to the City for the purchase of the
generators and related equipment, with zero interest over a twenty-year repayment
period anticipating one-third of the loan forgivable upon twenty years of successful
operation.
(f) The City, the County and WM would enter into agreements (collectively,
the "Agreements") specifying the respective rights and obligation of the City, the
County and WM.
(g) The City would issue a note(s) to finance the Project. These Notes would
be payable from revenues derived from the operation of the Project and would be
secured by a mortgage or other suitable security interest in the Project. The Note(s)
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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. &J, Lt~. 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, the entering into the Agreements, and the issuance of the
Note(s) in aid of financing and completing the Project.
3. A_D0roval and Publication. This Resolution has been duly adopted by the City
Council of the City of Elk River, Minnesota, and by the Elk River Municipal Utilities
Commission, respectively, at duly called and regularly held meetings there on
~13~ ~ , 20~/ , 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 if 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 Agreements.
Passed and adopted by the City Council and the Elk River Municipal Utilities
Commission of the City of Elk River this I ~ day of April, 2001.
, ST:
Br~a~n Adams
S'andra Peine
ELK RIVER MUN~IPAL
UTILITIES C~ISSION
Its: President
ELK RIVER CITY COUNCIL
nie or