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SPECIAL MEETING ~~ THE E~~ RIVER CITY C~UNI~ <br />AND ELF RIVER MUNICIPAL UTILITIES <br />HELD AT ELF RIVER CITY HALL <br />C N DAY, J U N E 29, 2449 <br />Members Present; Mayor l~linzing, Councilmembers Zerwas, Matin, westgaard, and <br />Gumphrey, ERMU Commissioners Thompson and Dietz <br />Members Absent: None <br />Staff Present; City Administrator Lori Johnson and City Clerk Tina Allard <br />ERMU Staff; Director of Qperations Troy Adams, office Manager/Finance Director <br />Theresa Slominsld., and Special Projects Consultant Vance Zehringer <br />1. Call Meeting To order <br />Pursuant to due call anal notice thereof, the joint meeting was called to order at 5;32 p.m. by <br />the Council and by Elk River Municipal Utilities ~ERMU}. <br />2. Electric Utili Long-Range Planning <br />Mr. Adams presented his staff report which outlined various power supply options for the <br />city to consider along with the pros and cons of each option. He further discussed the <br />benefits of a municipally owned utility. <br />Tlae following general discussion took place; <br />Sc~enaria #2 (participation in Bid Stone ,~.~ ~vith a~vnerfhip in other pea~in~ plane <br />Item # 7. <br />Mr. Adams stated approximately 2.7¢ of the rate to customers, beginning in 2015, would be <br />fixed i.n order to pay down the bond debt over a 30 year period. Ike stated the other 50°/v of <br />the rate would cover fuel, operation and maintenance, and transmission costs which would <br />fluctuate depending on market conditions. <br />Mr. Zehringer stated the city is currently paying over G¢ a kilowatt hour on a wholesale basis <br />and Big Stone II is projecting a 5.3¢ ldlowatt hour in 201$, He stated half the rate would be <br />fixed. <br />Mayor I~linzing questioned what the ~2.G million is to be used for and who would by paying <br />this amount at the financial close. <br />Mr. Adams stated the 2.G million would be the city's share of the cost for all the studies and <br />permitting that must be completed for the Big Stone II project. He stated Elk River <br />Municipal Utilities would be making payments of about X51,000 per month and then would <br />have the option to roll tlae loan into construction bonding. He stated amore research would <br />be needed to determine the best option for obtaining funding for this loan. <br />Ms. Johnson stated X51,000 per month would need to be paid for 10 months until tlae <br />financial close. She stated there would be X8,000 in accumulated interest on the ~2.G million <br />loan and $41,000 that the city will not get back because it would be for ongoing legal and <br />development expenses. She stated Elk River Municipal Utilities staff was considering <br />