ERMUSR Resolution 04-12-2005RESOLUTION
A RESOLUTION OI-' "TIIE C1TY OE ELK RIVER
RESOLUTION APPRO~~ING TIIE EXERCISE OF PO«'ERS UNDER
~~1INN'ESOTA STATUTES, CHAP"hER d53, RF.SPh;CTING A CL~,RTAIN
ELECTRIC PO~'1~EI2 GENERA"TION PROJECT'
13c It Resol~cd as Follo~~~.e:
Recitals.
(a) The City of Llk River, Minnesota, in cooperation and conjw~ction with the
h;k River Municipal Utilities Commission (collectivel~~, the "City') proposes to enter
into contract(s) ~~ith Sherburne Count~~, ~9innesota (the "Count}~") and \~'aste
y1a~~agement, Inc.. its successor, assigns and-or other persons (collecti~~ely `'~~'?~1") to
iac~litate the addition of a certain electric po~~~er generation project (the "Project")_
(b) The Project ~~ouid consist of the addition and completion of an Ii00
kilowatt hour landfill gas-to-energy electric generator located in the City at the hIk Riper
Landfill. TLe cost of the Project is currently estimated to be 5670,000.00.
(c) The Project ~~~ill be a base load generator owned by the Cite.
(d) It is proposed that y~'rt1, in conjunction ~~~ith the City, would plan.
complete and operate the Project. The Project is expected to be operational on a full-time
E;asis to provide electric energy to the customers of the City. ~1 he Cite expects to benefit
from the Project by enhancing its capacity against the gro~~~ing e!ectne~ty needs of the
City and against uncertainty of national electric capacity as a whole.
(~) Ii is proposed tl;at the County loan the sum of approximately 5670,000.00
from its Solid ~'~~aste Surcharge fund to the City for the purchase of the generators and
related equipment, ~~~ith zero interest over a sixteen ~-ear rcpa}~ment period-
(f) The City, the County and ~>v'M r~~ould enter into agreements (collectively,
the "Agreements") specifying the respective rights and obligation of the Ci(y, the County
and Vv'iti1.
(g) The City v.~ould issue a note(s) to finance the Project. These Notes would
be payable from revenues derived Irom the operation of the Project and ~~'ould be secured
b~~ a mortgage or other suitable security interest in the Project. The Note(s) ~~ould not be
a general or moral obligation of the City, ~~~ould not be secured by any of the City's
existing municipal electric utility assets, and ~~~ould not be pa~~able from or a lien against
the rates and charges imposed by the City on its municipal electric customers.
Au_thorization_ ]t is hereby resolved and determined pursuant to Minnesota
Statutes, Section 4>3_Sb. that the City ma~~ exercise sucl~r po~~ers and enjoy such
privileges provided in 1vlinnesota Statutes, Chapter 453, as may be desirable or necessary
in connection with the City's participation in the Project; as generally described
hereinabove, the enterine 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 ot~ Elk Rives 1v~9innesota; and by the 1_lk River It~9unicipal Utilities
Comi~~ission, respectively, at duly called and regularly held meetings there on
_ , 20 _. end shall be published once in the official newspaper o1~
::~e Cit~,~ as soon as conveniently possible pursuant to ~'v'Iinnesota Statutes, Section 43.58,
Subdivision 2. This Resolution in itself if not intended and shall not be interpreted as a
commitment of the City to the I'roiect, ~~~hich shall be contingent upon t11e execution of
the mutually acceptable Agreei~~ents.
Passed and adopted b.' the City Council and the Elk Ri~cr [~lunieipal Utilities
Con~nlission of the Cite of~Llk Ricer this _ day of i'~1arch, 2005.
ELK RIVER MUNICIPAL
Uh1LITIES C01v1'~11SSION
A rTEST
I3r~~an Adams
-a"1~"I LS.I_
Joan Schmidt _-- -- - - -
B_~ _
James hralle
Iis: Pr~sidc:nt
ELK RIVER CITY COUNCIL
Stephanie Klinzing, 1v'Ia~~or