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Page 3 Regulaz meeting of the Elk River Municipal Utilities Commission December 14, 2010 are superior and they should be getting raises based on the work that they do. Because of the economic situations he recommends a 1.5% raise. Jerry Gumphrey moved to adopt the Storm Pay policy contingent upon legal review. Daryl Thompson seconded the motion. Motion carried 3-0. Daryl Thompson moved to approve a 1.5% raise increase effective January 1, 2011. Jerry Gumphrey seconded the motion. Motion carried 2-1. John Dietz voted nay. 4.3 Update on the Midwest Municipal Transmission Group and the CAPX2020 Brookings/ Twin Cities Transmission Project In May 2006, ERMU authorized joining Midwest Municipal Transmission Group (MMTG) to explore the potential to obtain ownership in the transmission system. In Febivary 2007, ERMU entered into an agreement to participate through Central Minnesota Municipal Power Agency (CMMPA) in the CAPX2020 Brookings -Twin Cities Transmission Project. Through MMTG, ERMU is currently receiving approximately $4,500 revenue as return on investment in existing ERMU substation equipment. Steve Thompson, CEO of CMMPA, provided project updates and options, financial implications for ERMU, along with the project timeline and critical dates. John Dietz directed staffto meet with Lori Johnson to go over the financial options and make a recommendation at a future meeting. 5.1 Review Municipal Utility Benchmarkine Analysis In May 2010, Grand Rapids Public Utilities Commission (GRPUC), in cooperation with the City of Grand Rapids, hired Collaboration Unlimited, a management consulting firm which specializes in public utilities, to perform an organization and performance analysis. ERMU assisted with the study by participating in a survey to establish quantitative benchmazking for the performance and efficiencies of their utilities. Collaboration Unlimited collected data from 18 Minnesota municipal utilities of which 13 provided electric and 17 provided water utility services. The survey population included lazge and small cities with utilities of geographical diversity. ERMU received a report highlighting its position compared to the benchmazking. Overall, ERMU is doing more with less while continuing to "provide safe, reliable, cost effective and quality long term electric and water utility service". Consensus of the Commission was this report was a credit to ERMU employees.