4.2. SR 09-12-2011 - Laserfiche WebLink

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REQUEST FOR ACTION TO ITEM NUMBER Ci Council 4.2. AGENDA SECTION MEETING DATE PREPARED BY Consent Se tember 12, 2011 Tro Adams, P.E. - Utilities Director ITEM DESCRIPTION REVIEWED By ~ Request for Execution of Confirmation of Adjustments to ty ~; Robert Thistle, Interim Ci Election Shares Under the CAPS Brookings -Twin Cities Administrator Development Project Agreements REVIEWED BY ACTION REQUESTED Elk River Municipal Utilities requests City Council approval and execution of the Confirmation of Adjustments to Election Shares Under the CAPZ Brookings -Twin Cities Development Project Agreement Attachment A. BACKGROUND/DISCUSSION In May 2006, the Utilities Commission authorized joining Midwest Municipal Transmission Group (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 CAP~2020 Brookings-Twin Cities Transmission Project. In March 2011, the Commission and Council both approved Resolutions authorizing the Utilities' participating in the Brookings Project through CMMPA for an amount not to exceed $7,140,953 without further action. Delano Municipal Utilities (Delano), a participant in the CAP12020 Brookings project through CMMPA, has recently requested to be released from the project contract. Six of the participants investing in this project through CMMPA, including ERMU, have expressed interest in acquiring Delano's share. A Transfer Agreement for Delano's share was approved by City Council on July 11, 2011. The Transfer Agreement was approved by the Utilities Commission on June 14, 2011 and a resolution of the Utilities Commission authorizing the Transfer Agreement was approved by the Utilities Commission on July 12, 2011. On August 1, the City Council adopted a resolution approving the Transfer Agreement. With the increase in CMMPA's level of participation in the Brookings Project increasing from 2.2% to 3.6% and subsequent authorization by Elk River to approve increasing their election shares with CMMPA's increase, and Elk River's addition in participation level through the transfer of election share from Delano, the Development Project Agreement Attachment A needs to be adjusted to reflect these changes. 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.