Discussion:
The city solicited qualification proposals from firms to manage the day-to-day operations of the electric utility should the referendum pass. The city received three responses: The Minnesota Municipal Power Agency (MMPA); Minnesota Valley Electric Cooperative (MVEC); and Xcel Energy.
The respondents would manage existing employees and supplement as necessary with their own management team. Proposers would also provide assistance for electrical load design services for existing and new customers. The proposers would also evaluate the infrastructure of the utility and report back to Council on any necessary improvements or issues identified. The contract would be negotiated for a two year period and then Council would decide what recommended changes should or could be implemented. During the two year period, rates would remain as they are today subject to any increases that are already in place with power purchase agreements that the utility currently has negotiated.
Long term issues to be reviewed include the need for additional substations or relocations and any other infrastructure or operational issues that are identified by the respondents.