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UTILITIES COMMISSION MEETING <br />TO:FROM: <br />ERMU Commission Theresa Slominski –General Manager <br />MEETING DATE: AGENDA ITEM NUMBER: <br />November 9, 2021 2.4 <br />SUBJECT: <br />Central Minnesota Municipal Power Agency Brookings-Twin Cities Project Refinance of 2012A <br />Revenue Bonds, Series 2021 –Certificate of Utility System Officer and Other City Official <br />ACTION REQUESTED: <br />Receive the revised executed CMMPA Brookings-Twin Cities Project Refinance of 2012A <br />RevenueBonds, Series 2021 – Certificate of Utility System Officer and Other City Official. <br />BACKGROUND: <br />In February 2007, ERMU entered into an agreement to participate through Central Minnesota <br />Municipal Power Agency (CMMPA) in the CAPX2020 Brooking-Twin Cities Transmission Project. <br />This allows ERMU to own, not rent, transmission assets. In 2012, CMMPA issued approximately <br />$34 million in bonds for the Brookings project. CMMPA is a 5% owner of the project, and ERMU <br />is 15.5% of CMMPA’s 5%. There are 16 entities like ERMU participating in the CMMPA 5%. The <br />original projection for our return on investment was approximately $124,000 annually over the <br />40 year project life. <br /> <br />DISCUSSION: <br />CMMPA has initiated the process to refinance the 2012A Bonds that funded the above <br />transmission project, in a Series 2021 Bond for approximately $18,235,000. Based on current <br />market conditions, CMMPA believes significant savings can be achieved. As a “Major <br />Participant,” we needed to execute a Certificate of Utility System Officer and Other City Official, <br />which was done September 9, 2021, and forwarded to CMMPA. In October we presented that <br />certificate for the commission to receive. CMMPA’s bond counsel has revised this certificate <br />with updated dates and removed the reference to Western Area Power Association that was <br />not applicable to us. <br /> <br />We are providing the revised certificate for the commission to receive at this month’s meeting <br />and have last month’s certificate for reference. <br /> <br />ATTACHMENTS: <br /> Certificate of Utility System Officer and Other City Official of City of Elk River 2021 Final <br /> Certificate of Utility System Officer and Other City Official of City of Elk River 2021 <br /> <br />______________________________________________________________________________ <br />Page 1 of 1 <br />42 <br />