4.3. ERMUSR 05-10-2011 - Laserfiche WebLink

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Elk River Municipal Utilities 1306) Orono Parkway • P.O. Box 430 ELk River, MN 55330-0430 UTILITIES COMMISSION MEETING Phone: 763.441.2020 Fax: 763.441.8099 TO: FROM: Elk River Municipal Utilities Commission Troy Adams, P.E. -Director of Operations John Dietz, Chair Daryl Thompson, Vice Chair Al Nadeau, Trustee MEETING DATE: AGENDA ITEM NUMBER: Ma 10, 2011 4.3 SUBJECT: CAPX2020 Brookings Project and CMMPA Transmission and Owners Services and Asset Assignment A reement BACKGROUND: 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 Central Minnesota Municipal Power Agency (CMMPA) in the CAPX2020 Brookings-Twin Cities Transmission Project. In March 2011, [he 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. DISCUSSION: Attached is the CMMPA Transmission Owner Services and Asset Assignment Agreement. This agreement is an "umbrella" agreement with CMMPA for 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 drafring 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 Commission will need to approve a resolution authorizing the agreement The City Council will also need to approve the agreement and resolution authorizing the agreement. This is similar to the requirements for the project agreement. The Utilities' and City's legal counsel will need to provide an opinion letter for both agreements. Counsel is working on these opinion letters. ACTION REQUESTED: Staff recommends Commission action [o approve a resolution authorizing the Transmission and Owners Services and Asset Assignment Agreement and approve the execution of that agreement Staff recommends the Commission approve submitting an action request to the Council to approve a resolution authorizing the Transmission and Owners Services and Asset Assignment Agreement and approve the execution of that agreement.