3.4. SR 05-16-2011 - Laserfiche WebLink

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• REQUEST FOR ACTION TO ITEM NUMBER Ci Council ,3.4. AGENDA SECTION MEETING DATE PREPARED BY Consent May 16, 2011 Troy Adams, P.E. - ERMU Director of O erations ITEM DESCRIPTION REVIEWED By CAPX2020 Brooking-Twin Cities Transmission Project and Central Minnesota Municipal Power Agency's Transmission and REVIEWED BY Owners Services and Assets Assignment Agreement ACTION REQUESTED The Utilities Commission requests the City Council to approve the execution of a Transmission and Owners Services and Asset Assignment Agreement with Central Minnesota Municipal Power Agency (CMMPA) and also adopt a resolution authorizing the agreement. BACKGROUND/DISCUSSION In May 2006, the Utilities Commission authorized joining MMTG to explore the potential to obtain ownership in the transmission system. In February 2007, ERMU entered into an agreement to participate through CMMPA in the CAPX2020 Brooking-Twin Cities Transmission Project. This represents "ERMU's direction to own instead of rent and the intent of this investment is to provide revenue to mitigate transmission costs and help to lower ERMU electric rates. In March 2011, the Commission and Council both adopted resolutions authorizing the Utilities participating in the Brookings Project through CMMPA for an amount not to exceed $7,140,953 without further action. Attached is the CMMPA Transmission Owner Services and Asset Assignment Agreement. This agreement is an "umbrella" agreement with CMMPA fox which project agreements, like the Brookings Project, would fall under. This agreement authorizes CMMPA to manage ERMU's ownership in this project in aggregate with the other CMMPA Brookings Project participants. Utilities staff and legal counsel were involved in the process of the drafting of this agreement with CMMPA and the other participants. Approval of this agreement was implied by Commission and Council when approving the participation of the Brookings Project. In addition to this agreement, the Council will need to adopt a resolution authorizing the agreement. The Utilities Commission approved the agreement and adopted a resolution authorizing the agreement on May 10, 2011. The Utilities' and City's legal counsel will need to provide an opinion letter fox both agreements. Counsel is working on these opinion letters. FINANCIAL IMPACT There is no additional financial impact beyond what had been approved in March 2011 when the Commission and Council both adopted resolutions authorizing the Utilities participating in the Brookings Project through CMMPA for an amount not to exceed $7,140,953 without further action.