4.6. SR 05-20-2013 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 4.6 AGENDA SECTION MEETING DATE PREPARED BY Consent May 20, 2013 Troy Adams,P.E. — ERMU General Manager ITEM DESCRIPTION REVIEWED By Resolution Concurring in Resolution No. 13-5 of the Elk River Cal Portner, City Administrator Municipal Utilities Approving Membership in the Minnesota REVIEWED BY Municipal Power Agency ACTION REQUESTED Elk River Municipal Utilities (ERMU) requests City Council support the decision of the Utilities Commission by the adoption of the attached resolution concurring in ERMU Resolution No. 13-5. DISCUSSION Currently ERMU receives wholesale power from Great River Energy (GRE) through an "all requirements"purchase power agreement with Connexus Energy, one of GRE's 28 member electric cooperatives. In September 2008, Connexus exercised their right to terminate that contract. The provisions of the contract require a ten year notice, effectively establishing the purchase power agreement to end in September 2018. Since that date ERMU has diligently explored options for a future power supply which included negotiating an extension of the current contract. The criteria established for ERMU's wholesale power supplier analysis consisted of the following: competitive rates,local control with the ability to have a say in our future, stability and position for reduced risk associated with regulation including potential"carbon tax," communication and sharing of information, and advocacy and"safety in numbers" associated with partnering with utilities that have "like interests." As a result of ERMU's five year analysis, the Utilities Commission has determined that Minnesota Municipal Power Agency (MMPA) is clearly the best fit for ERMU's power supply and would best serve our community as we move forward into the future. On May 14, 2013,what is now a historic day for ERMU and our community,the Utilities Commission unanimously adopted a resolution requesting membership in MMPA, an agency created by Minnesota Statute with membership consisting of PUBLIC POWER municipal utilities serving the following communities:Anoka,Arlington,Brownton,Buffalo, Chaska, East Grand Forks,Le Sueur,North St. Paul, Olivia, Shakopee, and Winthrop. Through that resolution, the Utilities Commission requests the support of the City Council of the City of Elk River through a concurring resolution. FINANCIAL IMPACT Adoption of this resolution does not have a financial impact on the City of Elk River. P O W E R E D BY NaA f RE]