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5.4. ERMUSR 07-11-2006/j Elk River Municip al Utilitie s 13069 Orono Parkway Elk River, MN 55330 July 5, 2006 To: Elk River Municipal Utilities Commission Jerry Takle John Dietz James Tralle From: Bryan Adams, P.E. Subject: LFG Engine Maintenance phone: 763.441.2020 Fax: 763.441.8099 The Elk River Municipal Utilities owns a landfill gas to electric generation facility at the Elk River Landfill. The installation of the 4`" engine/generator was completed on 6-29- 06. The commercial operation date for the 4`~' engine is 7-1-06. This is the good news. The bad news is the other three engines are consuming excessive quantities of oil, which are causing the heads to fail. The Elk River Landfill has tried a number of different solutions but to no avail. They are recommending the piston rings be replaced on these engines at an approximate cost of $65,000. This repair should get us to the scheduled over haul in 18 months. Because this is the lowest cost option, staff recommends this repair be completed. This is an unbudgeted expense.