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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Administration Februa 20, 2007 <br />Item Description <br />Consider Resolution Approving Elk River Municipal Utilities' <br />Participation in Development of Brookings-Twin Cities <br />Transmission Pro' ect <br /> <br /> <br />Administrator <br /> <br />Introduction <br />Elk River Municipal Utilities (ERMU) is considering entering into an agreement with Central Minnesota <br />Municipal Power Agency (CMMP A) to participate in the development of the Brookings- Twin Cities <br />Transmission Project. ERMU must have City approval to enter into the agreement before CMMP A will <br />allow ERMU to participate. <br /> <br />Discussion <br />At its February 20 meeting, ERMU is considering entering into the CMMP A agreement. ERMU can't <br />own real property in its name, but because this is not considered real property, ERMU is allowed to own <br />the transmission line. Therefore, ERMU may enter into this agreement directly as long as the City <br />Council authorizes ERMU to do so. ERMU will then be responsible for all future action required for the <br />project including action required to continue to the next phase of development of the project. Since <br />ERMU will be party to the agreement with CMMP A, the risks and benefits of participating will be <br />ERMU's. <br /> <br />The attached memo from Bryan Adams explains the project and reasons why ERMU is considering <br />participating in this project. Mr. Adams and Jerry Tackle, President of the ERMU Commission, will be at <br />the meeting to relate the action taken at the Commission's meeting and to answer questions from the <br />Council. <br /> <br />Financial Impact <br />ERMU will be responsible the financial risks for this project. ERMU will be required to adjust electric <br />rates if needed to provide funds for the project. <br /> <br />Attachments <br />· Resolution Approving Elk River Municipal Utilities' Participation in the Development of the <br />Brookings-Twin Cities Transmission Project <br />· Memo from Bryan Adams, ERMU General Manager regarding MMTG Membership and CapX <br />2020 Investment including the CMMP A Brookings- Twin Cities Project Development Agreement <br /> <br />Action Requested <br />The Council is asked to consider the Resolution Approving Elk River Municipal Utilities' Participation in <br />the Development of the Brookings- Twin Cities Transmission Project <br /> <br />s: \ Council\Lori \2007\ ERMU CAPX.doc <br />