ERMUSR Resolution 03-08-2005RESOLUTION -
A RESOLUTION OF THE C1TY OF ELK RIVER
RESOLUTION APPROVING THE EXERCISE OF POWERS UNDER
i~~1INNESOTA STATUTES, CIIAPTER 453, RESPECTING A CERTAIN
ELECTRIC POWER GENERATION PROJECT
I3e It Resolved as Follows:
Recitals.
(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 addition of a certain electric power generation project (the "Project").
(b) The Project would consist of the addition and completion of an 800
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 $670,000.00.
(e) ~hhe 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 $670,000.00
from its Solid Waste Surcharge fund to the City for the purchase of the generators and
related equipment, with zero interest over a sixteen year repayment period.
(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) 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, the entering into the Agreements, and the issuance of the Note(s) in aid of
financing and completing the Project.
~. 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 Municipal Utilities
Commission, respectively, at duly called and regularly held meetings there on
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 day of March, 2005.
ELK RIVER MUNICIPAL
UTILITIES COMMISSION
By:
Jaynes Tralle
Its: President
A"]'TEST:
Bryan Adams
ELK RIVER CITY COUNCIL
Bv:
Stephanie Klinzing, Mayor
AT"PEST:
.loan Schmidt
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