4.7. SR 06-18-2012 - Laserfiche WebLink

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REQUEST FOR ACTION TO ITEM NUMBER Ma or and Ci Council 4.7 AGENDA SECTION MEETING DATE PREPARED BY Consent June 18, 2012 Troy Adams, P.E. - ERMU General Mana er ITEM DESCRIPTION REVIEWED By Central Minnesota Municipal Power Agency CAPX2020 Project Cal Portner, Ci Administrator Revenue Bonds Disclosure Acknowledgement Letter and REVIEWED BY Exhibit E to Bond Purchase Agreement ACTION REQUESTED Elk River Municipal Utilities (ERMU) requests City Council receive the executed Central Minnesota Municipal Power Agency CAPX2020 Project Revenue Bonds Disclosure Acknowledgement Letter and the executed Exhibit E to Bond Purchase Agreement. BACKGROUND/DISCUSSION In May 2006, the Utilities Commission authorized joining Midwest Municipal Transmission Group 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 Brooking-Twin Cities Transmission Project. This represents ERMU's direction to own instead of rent. This investment provides revenue to mitigate transmission costs and help to lower ERMU electric rates. In March 2011, the Utilities Commission and the City Council executed resolutions approving ERMU to increase their investment in the project with a maximum direct cost of $6,265,278 and a resulting $7,140,953 in maximum total debt supported. The initial bonding is being issued for this project. With the bonding there is a requirement to provide information on an ongoing basis. A Disclosure Acknowledgement Letter has been executed by authorized ERMU staff. The Official Statement for the CMMPA Brookings -Southeast Twin Cities Transmission Project Revenue Bonds, Series 2012 is referenced in the attached letter. This document is available for review upon request. Also, an Exhibit E to Bond Purchase Agreement has been executed by authorized ERMU and city staff. These are supporting documents not requiring Commission and Council motion for approval. These executed documents were received by the Utilities Commission at the June 12, 2012, regular Utilities Commission meeting. FINANCIAL IMPACT There is no additional financial impact beyond what was approved in March 2011 when the Commission and Council both adopted resolutions authorizing ERMU to participate in the Brookings Project through CMMPA for an amount not to exceed $7,140,953 without further action. ~9~fJE~EiI ~~1`° ,f"'~+Vif..