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REQUEST FOR ACTION <br />TO ITEM NUMBER <br />Ci Council 3.4. <br />AGENDA SECTION MEETING DATE PREPARED BY <br />Consent Au st 1, 2011 Tro Adams, P.E. - Utilities Director <br />ITEM DESCRIPTION REVIEWED By <br />Request for a Resolution of the City of Elk River Authorizing the <br />Transfer Agreement for the Delano Municipal Utilities' CAPX2020 REVIEWED BY <br />Brookings-Twin Cities Transmission Project Share <br />ACTION REQUESTED <br />Per the request of Central Minnesota Municipal Power Agency (CMMPA) legal counsel, Elk River Municipal <br />Utilities requests the City Council to approve a resolution authorizing the execution of a Transfer Agreement for <br />the Delano Municipal Utilities' CAPX2020 Brookings-Twin Cities Transmission Project share. <br />BACKGROUND/DISCUSSION <br />In May 2006, the Utilities Commission authorized joining Midwest Municipal Transmission Group (NIMTG) to <br />explore the potential to obtain ownership in the transmission system. In February 2007, ERMU entered into an <br />agreement to participate through CMMPA in the CAPX2020 Brookings-Twin Cities Transmission Project. In <br />March 2011, the Commission and Council both approved Resolutions authorizing the Utilities' participating in the <br />Brookings Project through CMMPA for an amount not to exceed $7,140,953 without further action. The ERMU <br />current share is approximately $4,961,495. <br />Delano Municipal Utilities (Delano), a participant in the CAPX2020 Brookings project through CMMPA, has <br />recently requested to be released from the project contract. Six of the participants investing in this project through <br />CMMPA, including ERMU, have expressed interest in acquiring Delano's share. A Transfer Agreement for <br />Delano's share was approved by City Council on July 11, 2011. The Transfer Agreement was approved by the <br />Utilities Commission on June 14, 2011 and a resolution of the Utilities Commission authorizing the Transfer <br />Agreement was approved by the Utilities Commission on July 12, 2011. <br />FINANCIAL IMPACT <br />There is no additional financial impact beyond what had been approved in March 2011 when the Commission and <br />Council both adopted resolutions authorizing the Utilities participating in the Brookings Project through CMMPA <br />for an amount not to exceed $7,140,953 without further action. <br />ATTACHMENTS <br />^ Delano CAPX2020 Project Share Transfer Agreement previously approved July 11, 2011 <br />^ Proposed Resolution of the City of Elk River Authorizing the Transfer Agreement <br />Action Motion by Second by Vote <br />Follow Up <br />