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4.6. SR 05-20-2013 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] ATTACHMENTS • Proposed Resolution of the City Council of the City of Elk River Concurring in Resolution No. 13-5 of the Elk River Municipal Utilities Commission Approving Membership in the Minnesota Municipal Power Agency • Resolution No. 13-5 of the Elk River Municipal Utilities Commission Requesting Membership in Minnesota Municipal Power Agency,dated May 14, 2013 • Agency Agreement—Minnesota Municipal Power Agency, dated May 11, 1992 Action Motion by Second by Vote Follow Up City of Elk River City Council RESOLUTION No. 13 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ELK RIVER CONCURRING IN RESOLUTION NO. 13-5 OF THE ELK RIVER MUNICIPAL UTILITIES COMMISSION APPROVING MEMBERSHIP IN THE MINNESOTA MUNICIPAL POWER AGENCY NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Elk River, Minnesota: Section 1. It has hereby found, determined and declared: A. The Board of Commissioners of Elk River Municipal Utilities ("ERMU")has determined that it is in the best interests of the electric ratepayers who are customers of ERMU to become a Member of the Minnesota Municipal Power Agency (the "Agency"), a municipal power agency organized in 1992 under and pursuant to Chapter 453 of Minnesota Statutes (the "Agency Statute") and to enter into a long term arrangement for the purchase of power and energy from the Agency. B. The Agency Statute requires the Commission to authorize and approve the adoption and execution of the Agency Agreement in order to become a member of the Agency, and also requires the concurrence of the City Council as a precondition to the effectiveness of the adoption of the Agency Agreement as provided in the Commission Resolution. C. The Commission has submitted to the City Council its Resolution No. 13-5 dated May 14, 2013 (the "Commission Resolution")which, among other things, does agree to the provisions of and authorize the execution of the Agency Agreement and requests the City Council to concur in its action as set forth in the Commission Resolution(together with the Agency Agreement attached hereto). The terms "Agency Agreement" and"Bylaws of the Agency"have the meaning set forth in the Commission Resolution. D. The Council has reviewed the Commission Resolution and the Agency Agreement and has made such inquiries of the Commission as deemed necessary and appropriate on the subject and relies upon the expertise and judgment of the Commission with respect to the City's long term arrangements for the supply of power and energy as it is so charged by Minnesota Statutes, section 412.361. E. The Agency Statute and the Agency Agreement provide that cities which are members of municipal power agencies are not liable for the obligations of the municipal power agency. Section 2. The City Council does hereby concur in the Commission Resolution including, but not by way of limitation, the approval and authorization of the City of Elk River by and through ERMU to become a member of the Agency, the agreement to the provisions of and the authorization to execute the Agency Agreement, the agreement to the provisions of the Agency's Bylaws and the Commission's appointment of the initial Representative and initial Alternate Representative to the Agency. Section 3. The City Clerk is hereby authorized and directed to affix to the Agency Agreement a certified copy of this Resolution for submission to the Secretary of State of Minnesota in accordance with the Agency Statute. Adopted by the City Council of the City of Elk River, this 3rd day of June, 2013. John J. Dietz,Mayor ATTEST: Tina Allard, City Clerk 3 i RESOLUTION No. 13-5 I BOARD OF COMMISSIONERS { ELK RIVER MUNICIPAL UTILITIES A RESOLUTION REQUESTING MEMBERSHIP IN THE MINNESOTA MUNIICPAL POWER AGENCY, ACCEPTING THE PROVISIONS OF THE AGENCY AGREEMENT AND BY-LAWS OF THE MINNESOTA MUNICIPAL POWER AGENCY, APPOINTING A REPRESENTATIVE TO THE AGENCY AND REQUESTING THE CONCURRENCE OF THE CITY COUNCIL NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of Elk River Municipal Utilities: Section 1. It is hereby found, determined and declared that: A. The Minnesota Municipal Power Agency (the "Agency") was created and declared effective by the Minnesota Secretary of State on May 19, 1992, as authorized and provided in Minnesota Statutes, Chapter 453 (the "Agency Statute") B. The following Minnesota cities are the present members (the "Members") of the Agency: Anoka, Arlington, Brownton, Buffalo, Chaska, East Grand Forks, Le Sueur, North St. Paul, Olivia, Shakopee, and Winthrop, and they each purchase wholesale power, transmission and other utility services from the Agency. C. Elk River Municipal Utilities ("ERMU") is authorized by Minnesota Statutes, sections 412.321 through 421.391 to engage in the local distribution and sale of electric power and energy. Pursuant to Minnesota Statutes, section 412.361, the Elk River Municipal Utilities Commission is authorized and empowered by law to regulate rates and charges for the distribution of electric energy within Elk River Municipal Utilities' territory and to make arrangements for power and energy supply. D. The Elk River Municipal Utilities Commission (the "Commission") has determined that it will need a new source of power supply within the proximate future, did conduct an investigation and survey of available, alternative power suppliers, and with the aid of outside experts determined to further examine and to enter into negotiations with the Agency. E. The Commission has concluded a course of due diligence examinations upon the history, plans, financial position, generating and purchase power resources, material agreements and other relevant matters and has concluded that the Agency is likely to provide a reliable and reasonably priced supply of power and energy to meet the needs of ERMU. I Therefore, the Commission has selected the Agency to provide its long term power I supply needs commencing in 2018 and to apply now for membership in the Agency. i F. The Commission finds further assurance and support for its selection in that governance of the Agency is in the hands of other Minnesota municipal electric utilities and that j ERMU, by the Commission, will have the right and authority to actively participate in the management and direction of the Agency. G. The Agency has provided to the Commission a copy of the Agency Agreement by and among the Members of the Agency and of the Agency Bylaws (each attached hereto). The Commission has examined the Agency Agreement and the Bylaws to the extent deemed necessary and appropriate by the Commission. For all purposes of this Resolution, the Agency Agreement includes the Agency Agreement filed with the Minnesota Secretary of State on May 19, 1992 and the amendments thereto as approved by Agency Representatives' Resolutions numbered 1993-1 (adopted March 3, 1993) and 2004-1 (adopted January 27, 2004). For all purposes of this Resolution the Agency Bylaws include the Bylaws of the Agency as originally adopted and as since amended by the Agency Directors and Representatives through the date of the adoption of this Resolution. H. Pursuant to the Agency Statute, the concurrence of the City Council of the City of Elk River is required as a precondition to the effectiveness of the Commission's adoption of the Agency Agreement as provided in this Resolution. I. The Agency Statute and the Agency Agreement provide that cities which are members of municipal power agencies are not liable for the obligations of the municipal power agency. Section 2. The participation of the City of Elk River by and through ERMU as a member in the Agency is hereby approved and authorized. Section 3. The Commission agrees to the provisions of the Agency Agreement and the Bylaws of the Agency and the Chairman or any other officer of the Commission is hereby authorized and directed to execute the Agency Agreement for and on behalf of and as the deed of Elk River Municipal Utilities, and the General Manager or any officer of the Commission is hereby authorized and directed to certify the adoption of this Resolution. Section 4. In accordance with the Agency Act and the Agency Agreement, the following persons are hereby appointed as the initial representative and initial alternate representative of Elk River Municipal Utilities as a member of the Agency: Representative: 1 Troy Adams, P.E., General Manager 13069 Orono Parkway P. O. Box 430 Elk River, MN 55330-0430 Alternate Representative: Allen Nadeau, Vice Chair 13069 Orono Parkway P. O. Box 430 Elk River, MN 55330-0430 The Representative or, in the absence of the Representative, the Alternative Representative, shall exercise all of the rights, duties and powers of Elk River Municipal Utilities as a member of the Agency for and on behalf of ERMU in accordance with the provisions of the Agency Statute, the Agency Agreement and the Bylaws of the Agency until a successor is appointed by the Commission. Section 5. The Chairman of the Commission or any other officer of the Commission is authorized and directed to affix to the Agency Agreement a certified copy of this resolution for submission to the Secretary of State of Minnesota in accordance with the Agency Statute. Section 6. The Chairman of the Commission or any other officer of the Commission is authorized and directed to deliver this Resolution to the City Council of the City of Elk River and to request the concurrence of the City Council in this i Resolution. 1 j This Resolution is adopted by the Elk River Municipal Utilities Commission on May 14, 2013. J hn Petz, C it Troy Adams, P.E., General Manager I AGENCY AGREE,KENT MINNESOTA MUNICIPAL POWER AGENCY This AGENCY AGREEMENT, dated as of May 11 , 1992 , the een and OF among the CITY OF ARLINGTON , the CITY OF gRQWt`TC7N , the CITY OF NORTH ST. PAUL, the CITY CHASNA, the CITY OF LE SUZUR, OF QI�IVI% and the CITY OF WINTHROP , all cities arganizec3 and existing under the "Cities" ) ,laws of the State danM�`and5a11 Minnesota cities referred A to collectively as the Agreement in accordance with its becoming parties to this Agency g terms after the date hereof 1as the e I'M collectively 'h) 'the Cities being herein collectively referred to W I T N E S S E T H WHEREAS, Minnesota Statutes , Section 453whichhtermh includes ed to as the inclusive ( herein referred any amendnt thereof ► permits any two or maze cities which are m'= organized and existing under the laws of the State of Minnesota r a city charter adopted pursuant thereto ) and which are ta authorized by such law's or charter to engage in zhG local to establish and create distribution and sale of electric energy , a municipal power agency ( referred to herein as an "Agency►" , which term has the same meaning herein as the term "municipal pck"=r �.... agency" as defined in the Act) by the execution of an agency the Acm) aut-horizc-d by the agreemen 4 ( as such term defined such term is de f fined in the resolu Lion of the governing Act and herein referred to s a wit"Commission" )the Secret arya of cS 4a a and the filing thereof for Minnesota ; and WHEREAS, the Act pr that an Agency shall have certain rights and powers enumerated herein, all of which the C"-'es desire to exercise through the formation of an Agency ; and WHEREAS , each of the a or b its it authorized cha either by the adopted pursuant of the Sra Le of Minnese Y of the to engage in the local distxibur_ion and sale of el€�ctYic energy ; and WHEREAS, the Commission of each of the Cities has authorized and approved this Agency Agreement by resolution duly adopted ( a ai each Such e solution tieing attached to th'= copy certified cagy State as hereof which has been filed with the 5ecre4ary o� reauiced by the Act and ichhCitininewhichdthe Commission�issnot Resolution ") and , as to each y general control Of the body charged by law or is charter with the g t l affairs he City' s governmenta , the city council ( as su ch term is defined in the Act ) or other body oVernmental affars laf each oaf with the general control of its g o recment and the Cities has approved and concurred in this Ag..ncy Ag the Commission Resolution of that City relating thereto pursuant to resolution duly adopted (a certified copy of each such resolution being attached to the copy hereof which has been f fled with the Secretary of state Council as Resolution" ) ;ir yand e Act and herein referred to as a "City WEEREAS, each of the Cities desires to become he e member of the below-mentioned Agency pursuant to the Act by this Agency Agreement . NOW THEREFORE, each of the Cities (and each of the Minnesota cities becoming a Member of the below-mentioned Agency after the date hereof ) does handy inove ons iderationee of a hen coven ntsat and of the foregoing agreements of the others , as follows : Section I . Creation and Put ose: The below-mentioned Agency is created and incorporated as a municipal corporation and a political subdivision of the State of Minnesota under and pursuant to the provisions of the Act, to exercise thereunder a part of the soVereign powers of said 5t-ate, in the acquisition , construction and financing of facilities for the generation and transmission of electric energy or interests in such facilities or rights ro part or all of the capacity thereof , in order to secure an powers adand qua-7-in economical and reliablE supply of electric �granted to an furtherance thereof , to exercise all of the Po �~ Agency by the Act . Section 2 . Name . The name of the Agency created by this Agency Agreement shall be the "Minnesota Municipal power Agency " ( and is herein referred to as the "Municipal power Agency" ) . Section 3 . Initial Members . Each of the Cities represents and warrants all of the other Members and to the Municipal power Agency that: (A) It is a city duly organized and existing under the laws of the State of Minnesota or under a city charger duly adopted p�arsuanf to the Constitution and laws of the S-ate of Minnesota . (p,) It is authorized by such laws or charter to engage and is now engaged in the local distribution and sale of electric energy . (C ) The Commissn Resolu-,..ion ha repes been duly and validly adopted and has not been am ( C ) The City Council Resolution has been duly and validly adopted and has not been amended or repealed . (E ) The name of the City, its Commission n and its Co nCil, and the dates of adoption of its commission - Council Resolution are as indicated below: - 2 - -- Authorized by Concurred in by ' Commission C-ity Council C City of Arlington * 5-4-92 City of Brownton * 4-27-92 city of Chaska 4-22-92 City of Le Sueur * 4-29 -92 City of North St . Paul 5-11-92 City of Olivia * 4-20-92 City of Winthrop * 5-4-92 *City Council is the "governing body" of the City. (F) It consents to the filing of this Agency Agreement and its C�.ty Council Resolu-"ion and its Commission Resolution, of any , with the Secretary of State of Minnesota, and requests that a certificate of incorporation of Secretary eofmutatepal Power Agency be s issued and record y Section 4 . Initial Representatives. The name and addresses of the persons initially appointed by the Commission Resolutions and the City Council Resolutions to act as the representative preferred to herein a5 the " Initial Representative " ) of each of the Cities, respectively , in the exercise of their powers as members, are as follows : Initial Representatives Address City City of Arlington Arden Kreft Arlington , MN 55307 City of Brown-Lon Curtis Carrigan 52B 2nonSt. So, ePolBox 238 City of Chaska Dave Pokorney One city Hall Plaza 1962 City of Le Sueur Mervin Hentges 228S No . m ain t stree City c North Ron Schuler 2526 East 7th Ave. Sr-. Paul North St. Paul , MN 55109 3 - City of Olivia Don Decker 305 East Oak Olivia, MN 55277 City of Winthrop Louis Melius 305 forth Main Street Winthrop, MN 55396- section S . Selection and Term of Representatives . Each Representative (which term includes the initial Representative of each member and any successor thereto at the time acting as Representative ) shall serve as the Representative of such City until another Representative shall be appointed by a Commission Resolution of such City and filed for record with the Board of Directors . Each member shall be represented by one (1 ) Representative . In case a Representative shall resign or shall be incapable of acting as such Representative due to death, illness or any Other cause, the member shall select a successor Representative by a CoirLmission Resolution filed for record with the Board of Directors , but nothing herein contained shall prohibit the Municipal power Agency from exercising any of its powers during such vacancy and until such successor Representative _ is selected. Any member may , by Commission Resolution filed for record With the Board of Directors , designate an alternative Representative who shall have and be entitled to exercise all rights of the Representative of that Member in the event of the death, absence , disabilitlF or resignation of the Representative . The Representative of each Member shall cast the number of votes assigned to that Member in accordance with the formula set forth in section 9 (C ) hereof . Each Representative of a city becoming a Member of the Municipal power Agency after the date hereof pursuant to Section 9 ( ;k) hereof , and each successor to such Representative, shall be selected and shall act as such Representative in accordance with the provisions of this Section 5 . Each vote or votes of a Representative , at an annual or special meeting, shall be the vote or votes as, for and on behalf of the member which he or she represents, and such vote or votes shall be deemed conclusively to constitute the vOte or votes of the respective cities as members of the Municipal power Agency for all purposes of the Act, this Agency Agreement and the Bylaws . 4 T section 6 . Initial Board of Directors . The Initial Representatives shall be and shall constitute the initial board of directors ( herein referred to as the "Board of Directors" and each member of said Board of Directors is herein referred to as a "Director" ) of the Municipal Power Agency until the first meetings of the Board of Directors and Representatives , at which time the terms of the initial Board of Directors shall expire and the new Board of Directors , selected in accordance with Section 9 (E) hereof , shall take office. Section 7 . Registered office. The address of the registered office of the Municipal Power Agency is One City Hall Plaza, Chaska , MN 55338-1962 . The location of the registered office of the Municipal Power Agency may be changed by the Board of Directors upon the filing of a certificate of change of location with the Secretary of State of Minnesota, as provided in Minnesota Statutes, Section 453 . 53 ( 5 ) . Section 8 . Members Not Liable . Neither the cities which are members of the Municipal Power Agency nor the Represen4atiE-es shall be liable for any of the obligations of she Municipal Power Agency . Section 9 . Other Provisions . The information set forth in Sections 1 through 8 , inclusive , of this Agency Agreement is the information required by Section 3 , Subdivision 1 , Paragraphs (1 ) through (8 ) , inclusive , of the Act . In addition , Paragraph ( 9) thereof states that an agency agreement may also include any other provision for regulating the business of an Agency or the conduct of its affairs which may be agreed by the member cities , consistent with the Act. . In addition to the provisions set forth in sections 1 through 8 , inclusive, of this Agency Agreement , each of the Cities ( and each of the {cities becoming a Member of the Municipal Power Agency after the date hereof ) does hereby agree as follows : ( A) Additional !embers . Any city organized and existing under the laws of the s`"ate of Minnesota or a ciry charter adopted Pursuant thereto , and authorized by or pursuant to such laws or charter to engage in the local distribution and sale of electric energy , may become a party to this Agency Agreement and a Member of the Municipal Power Agency upon the following conditions : ( 1 ) The city shall file with the Board of Directors a certified copy of a Commission Resolution and , if the city is one in which the Commission is not. the body charged by law with the general control of the city' s governmental affairs , a City Council : Resolution whereby the city ( i ) agrees to the provisions of this Agency Agreement and the Bylaws, ( ii ) requests to become a member of the Municipal Power Agency , and ( iii ) appoints an initial Representative. ` - 5 - ( 2) No such city shall became a Member of the Municipal Power Agency until ( A) its admission is approved at an annual or special meeting of the Representative by the affirmative vote of (is -thirds of all Re re flf then exist' Members i 111111,1111111 each casting one vote , and (ii ) two-thirds o e total votes cast by the Representatives, in accordance with the weighted voting formula described in Section 9 (c ) of this Agency Agreement , and (B ) such city deposits with the Board of Directors or agrees to deposit with the Board of Directors an amount equal to a share of the costs and expenses incurred by, the Municipal Power Agency and payable from assessments prior to the date of admission of such city as a Member of the Municipal Power Agency, as determined by the vote of a majority of the Representatives of than existing Members, each casting one vote. ( 3 ) The Board of Directors shall, by resolution determine whether admission is approved by the required majorities of the determines , s al ' e gerri� Representatives , and , if it sa ,esolutian and_ the co ies of solution an Cit Cou esolution with the secretary of State . ( 4 ) Upon such filing, the city shall become a Member of the Municipal Power Agency for all purposes of the Act , this Agency Agreement and the Bylaws , and shall have the same righ-s , duties and obligations hereunder as the Cities constituting the initial members. Any Member may withdraw from the Municipal Power Agency upon the allowing condition ; : (i ) the Member or its Representative shall have filed with the Board of Directors and the Secretary of s Late a certified copy of a Commission Resolution and , if the city is one in which the Commission is not the body charged by law with the general control of the city' s governmental affairs, a certified copy of a City Council Resolution expressing its desire to so withdraw, ( ii ) if the Municipal Power Agency ,, prior to the filing of such Commission Resolution and City Council Resolution , shall have incurred any obligation payable from assessments in accordance with section 9 ( 1 ) hereof which obligation matures after the date of such filing , the withdrawing Member shall have paid , or made arrangements satisfactory to the Board of Directors to pay , to the Municipal Power Agency its pro rata par-ion of such obligation , determined in accordance with Section 9 ( I ) hereof , and ( iii ) if any obligations of the Municipal Power Agency shall be outstanding at the tame , no Member shall be permitted to withdraw from the Municipal. Power Agency , if such withdrawal would reduce the number of Members remaining in the Municipal Power Agency to less than two ( 2 ) . Upon compliance with the above provision, the wi-hdraw ing city shall no longer be considered a Member of the municipal Power Agency for any reason or purpose under this Agency Agreement or the Bylaws. The withdrawal of a Member from the Municipal Power Agency shall not affect any obligations under any contras- between the withdrawing Member and the Municipal Power Agency . - 6 - } Nothing contained in this Agency Agreement or in the Bylaws shall be construed to prohibit any Member from W executing one or more other agency agreements with other cities for the purpose of forming other Agencies under the Act Or ( ii ) exercising the powers of an Agency as provided in Minnesota Statutes , Section 453 . 58 . Nothing con ru d to prohibit the YMunicipal n power Agency Bylaws. shall be cans P from oining an organization or association composed of other Agencies created pursuant to the Act . Any Member which has either defaulted under arises act wiih the Municipal Power Agency ar failed to pay elled from the accordance with Section ( an annual, orayspeci 1 pmeeting of the Municipal Power Agency at Representatives by the affirmative vote of (a) a majority Of all Representatives ( including embe }theeachr cas t ng v one Representatives a of the defaulting M majority of t cast by such Representa"fives , in he fatal votes accordance with the weihtd voLThe expulsianevfrabMemberSfroma�he 9 (C ) of this Agency Agreement. Municipal Power Agency shall not affect any obligations under any contract between the expelled Member and the Municipal poWeL Agency nor its ❑bligation Lo pay any moneys previously assessed against such expelled Member . (B ) Matters Requiring Members ' Avordval . Na ahEi Municipal of the fallowing matters shaJ.l. be underraken by Power Agency except pursuant to cresol_ u��_ adopted b the Bohm of Di ect and a ved b the Re resentarives , provided such approval of the Representatives may be given by a resolution adopted by the Representatives which is general in scope and continuous in nature and a delegate to the Board of Directors Or the power to take an and all action reasanabl necessary c3es�ra e t e of t e resolution: ( 1 ) The issuance of bonds or notes of the Municipal Power Agency . ( 2) The execution by the Municipal PvwEr Agency o any contrac" payable primarily from assessments , when such con-racL by its terms will nor expir= prior to the end of the Fiscal Year in which it is executed . ( 3 ) The incurrence by the municipal Power Agency of any financial obligation in excess ofthat which is budgeted for the Fiscal Year in which it is incurred . ( 4 ) The adoption and amendment of an annual operating budget , if such budget requires the assessment Of expenses to Members , as provided in Section 9 ( 1 ) of --his Agency Agreemenr.. ( 5 ) The ad .ission or expulsion of Members , as provided in Section 9 ( A) of this Agency Agreement.ent. ( ) The amendment to or termination of this Agency Agreement, as provided in sections 9 (L) and 3 ( M) of this Agency Agreement . ( 7) The adoption and amendment of the Bylaws , as provided in Section 9 (L ) of this Agency Agreement, (8 ) The election , removal and compensation of Directors , as provided in Section 9 ( E) of this Agency Agreement. Each of the matters set forth above shall require the approval of the majority of the votes cast by the Representatives in accordance with the weighted voting formula described in Section 9 (c) hereof , except as to those matters for which rather provisions of this Agency Agreement require a greater percentage , or which specify that in substitution thereof or in addition thereto , such matters shall be decided by the Representatives Each casting one vote. The Board of Directors and the Representatives shall take any and required under any contract or all action which may be agreernznt to which the Municipal Power Agency is bound , including any bond resolution , trust indenture or similar financing agreement ; but nothing contained in this section shall be construed to mean that any Member or Representive is liable for ta any of the obligations of the Municipal Power Agency . Except as otherwise expressly povided f the this Agency Agreement , each action at any meeting of Representatives shall be taken by a majority of the votes cast on the question by the Representatives present , each exercising a number of votes allocated to the Member he or she represents as follow*s (referred to herein as a "weighted vote") : (1 ) one vote ; plus ( 2) one additional vote for each full 5 , 000 megawatt hours of electric energy purchased from the Agency by the member during such Member ' s most recent fiscal year ; plus ( 3 ) if the votes allocated to ant= Member pursuant to clay ses (1 } , and ( Z) would equal or exceed -the total number of votes catEd to all other Members , its allocation of VotcS shall othb a} 1(} less than those allocated to all r reduced to one vote Members . The allocation of votes to each member shall be made in accordance with the formula Outlined above as soon as practicable after the beginning of each the Municipal E allocation b sea shall made by the secretary Of P al Pok� Agency cer��ificate of the Commission or Representative. of the Member , and t such allocation shall be verified by the Board of Directors . Each such allocation shall remain effective until such time as a new allocation is made for the next Fiscal Year . f D) Meetinc�_s_, Initial meetings of the Representatives and of the Boar�Directors shall be held upon the call of the Directors , after notice , for the purpose of determining the votes of Representatives as provided in section 9 (C ) hereof , adopting Bylaws, electing Directors and officers, adopting an initial operating budget for the remainder of the Fiscal Year , and transacting any other business that may come before the meetings . The Bylaws shall be proposed by the Board of Directors and shall become effective when approved by resolution adopted by the affirmative votF of 4i ) two-thirds of the Representatives , each casting one vote , and ( ii ) two-thirds of the votes cast by the Representatives in accordance with the weighted voting formula set forth in Section 9 (C) hereof . Thereafter, the Representatives shall hold an annual meeting at a time and place provided in the Bylaws or in a resolution adopted by the Representatives , at which any business may be transacted , and special meetings upon such call and notice and at such times and places as may be provided by or pursuant to the Bylaws or in a resolution adopted by the Representatives. (E) Board of Directors . The powers of the Municipal P owe z Agency shall be exercised by the Board of Directors in which shall be vested all of the powers conferred on the Municipal Power Agency by the Act and this Agency Agreement other than those powers described in Section 9 (H ) hereof which shall require the approval of the Representatives . The initial Hoard of Directors is set forth in Section 5 hereof . only Representatives shall be eligible for election to the Board of Directors. Compensation for Directors shall be set by the Representatives . Directors shall discharge their duties in good faith , and with that diligence and care which an ordinary prudent person in a like posi-ion would exercise under similar circumstances . Actions by . Board of Directors may be taken upon the vote of a ma j on r. y of the Directors present and voting at any meeting at which a quorum is present. Directors shall not cast "weighted votes " and each Director shall cast but one voce . Until the first meetings of the Board of Direct Until ors and Rep7E5en':azIves , the lni vial Representi?.�� 1«c Shill cons Ll ttl the Board of Directors . At such ini,-ial meeting of the REpresenr.a-4ivEs , the new Directors shall be selected as provided below, and , at the time Of selec4ion of such new Directors , the terms of office of the Initial. Representatives as Directors shall cease and such new Directors shall take office . If the Municipal poker Agency has seven members or less , the Board of Directors Shall consist of the Representatives from each of the members . If the Municipal power Agency has more than seven members , the Board of Directors shall consist of seven7) Directors , appoinr.ed or elected as follows : (1 ) The Representatives of the three members which have the csreatest rsumber of votes alioca=.-ed to them pursuant to Section 9 - 5 (C ) hereof shall automatically be Directors unless and until such ] time as another Member is allocated a greater number of votes than any one of the three such Directors , at which time the Representative of such Member shall automatically 'replace such Director on the Board of Directors . The other four Directors shall be elected as provided in subsection ( 2) hereof . ( 2) Four of the Directors shall be elected by the Representatives . All Representatives, other than those entitled automatically to be Directors, shall be entitled to vote for such Directors . Weighted voting shall not apply to the election of Directors and in such election each such Representative shall be entitled to the same vote or votes as all other Representatives. one of the elected Directors shall have a term of one (1 ) year; one of the elected Directors shall have a term of two ( 2) years ; and two of the elected Directors shall have a term of three ( 3 ) years, provided that such terms shall expire at the annual meeting of the Representatives in the year in which the term is to expire . Directors ) shall be elected at the annual meeting of the Representatives in each year to replace that Director (s ) whose term has expired , and each Director subsequently elected shall have a term of three ( 3 ) years . Any Director whose term has expired but who has not been replaced by another Director shall cantinue as such Director until so replaced . If the term of a Representative who is also a Director should expire or should such Representative resign or become incapable of acting for any reason , the successor to such Representative, appointed by the Member in accordance with section 5 hereof , shall assume the vacancy on the Board of Directors created thereby . Any Representative who has been elected to the Board of Directors in accordance with subsection ( 2) above , and who , during the term thereof , shall be entitled to automatic representation on the Board of Directors , pursuant to subsection ( 1 ) hereof , shall remain a Director , and the vacancy caused by the automatic resignation of the other Director shall be filled by a Representative elected as provided in subsection ( 2 ) above, whose term shall expire on the date on which the term of the Director previously elected would have expired . The Board of Direc-tors shall elect , annually , from their number , a Chairman, a vice-Chairman , a secretary and a Treasurer. Directors who have been elected may be reproved for cause at a special meeting of the Representatives called for that purpose by the of firrnative vote of ( i ) two-thirds of the Representatives , each casting one vote , anc ( ii ) two-thirds of the votes cast by the Representatives in accordance with the weighted voting formula - 10 - described in Section 9 (C ) hereof . Any director elected pursuant 1 to subsection ( 2) above and removed for cause shall be replaced by a Representative elected provided hall expires eon xthe date bone whi h the term of such new Der actor the removed Director ' s to tione one t the Board of Directors is entitled to automatic p resenta pursuant to subsection ( 1 ) above elected and as pro moved idedf in subsect onl (1) replaced by a Representative above , who shall remain a Director until the Member selects a successor Representative to replace such removed Director, at which time such successor Representative shall replace such new Director.. Meetings of the Bo of the Bylaws , shall be held in accordance with the provisions (P) Hv�laws. The Board of Directors shall recommend and the Representatives shall adapt Bylaws for the conduct cif the affairs of the Municipal Power Agency. The Bylaws shall state the powers delegated to the Chairman , vice-Chairman , Secretary and Treasurer .by The Bylaws may establish the office ' of. Preside scar}�foero the an employee and such other offices as it ,�and conduct, of the affairs resolution e may pest. bush Agency ,c d�aLies and Board of Directors y compensation of such offices . y Bylaws , resolution ( G) poems. Unless restricted b the B 1ar►s , y adopted by a majority of the votes cast by the Representatives or by contract, the Municipal Power Agency may exercise any and all of the powers , rights and privileges granted to Agencies under the Act. ( H ) Restrictions on Powers . The Municipal Power Agency shall be subject to the following restrictions : ( i ) it shall engage only in activities which are permitted by the Act ; ( ii ) its income shall not inure to any private persons or corporations ; ( iii ) if the Municipal Power Agency: shall be dihall v be of ter payment of all indebtedness, all of its asset_ distributed to its Members ; and ( iv ) no Member shall be individually liable for any indebtedness incurred by the Municipal Power Agency nor for the indebtedness of any other Member , nor liable for any purpose in excess of the assessments made against that Member , determined as provided in Section i ( I ) . _ ( I ) Annual Budoet , Assessments . The Board of Directors shall prepare an annual operating budget for each Fiscal year . The operating budget shall include estimated expenditures for the Fiscal Year less anticipated revenue to be derived from the Municipal power Agency ' s properties, operations and contracts during such Fiscal Year not otherwise appropriated to debt of the Municipal Power Agency. The estimated expenditures shall include the expenses to be incurred in the operation and administration of the Municipal Power Agency , including the salaries of employees and the payment of compensation for architectural , engineering , legal , fiscal and similar services ( unless such compensation comes within the confines of clause (iv ) below) ) , and amounts for contingencies and reserves 'but shall not include (i ) the principal of , redemption premium or interest on bonds or notes of the Municipal Power Agency or any of its Members under any contract for the generation , transmission, distribution , purchase , sale or other disposition of energy , ( iii ) the operation and maintenance costs relating to any real or personal property owned or leased by the Municipal Power Agency or in which it may have an interest for the generation, transmission , distribution , purchase , sale or other disposition of energy, or ( iv) any other costs , expenses or debts of the Municipal Power Agency which are generally paid from anticipated revenue of the Municipal Power Agency , whether or not so paid . The annual operating budget may but need nor include any moneys due and owed by the Municipal Power Agency to any third party . Estimated revenue shall include any and all moneys to be derived by the Municipal Power Agency from any source which is in excess of that required to pay those items set forth in clauses and ( iv) above. The Board of Directors shall submit the proposed annual operating budget and proposed schedule of rates , together with a proposed schedule of assessment payment dates , to the Representatives at the annual meeting or at a special meeting called for that purpose . The annual operating budget may be adopted by a majority of the votes cast by the Representatives , Each casting one vote , and a majority of the votes cast by the Representatives in accordance with the weighted voting formula set forth in Section 9 ( C) hereof , at such meeting, including any adjourned 5es4ion thereof . Upon approval of the annual operating budgcr , the net amoun4 of es-Limated expenditures therein in excess of the estimated revenues therein shall be deemed assessed agains= ,he members . The amount assessed agains t each Nerrber shall be in the same proportion as the 'Member ' s weighted vote bears to the aggregate amount of weighted votes capable of being cas�L- by all Members . Upon the approval of the annual Operating budget by the Representatives, the amount assessed against each Member shall become an obligation of the Member, enforceable , except as Otherwise provided in this Section 9 , as a contract right of the Municipal Power Agency . Such assessments shall be paid in accordance with the schedule prepared by the Board of Directors and submitted to the Representatives for their approval with the 12 - annual operating budget. Any Member voting against the proposed annual operating budget and which does not wish to be assessed , must withdraw from the Municipal Power Agency within sixty (64) days of the date of adoption of the annual operating budget by the Representatives , in accordance with the procedure set forth in Section 9 (A) of this Agency Agreement. Any such withdrawing Member shall not be liable for the assessment previously made, but shall be liable for the amounts , if any , calculated in accordance with Section 9 ( A) . If any member withdraws from the Municipal Power Agency within sixty ( 60) days of the adoption of the annual operating budget, the Board of Directors shall propose another annual operating budget which shall be approved and assessed as set forth above. Any amendment to the annual operating budget shall be proposed by the Board of Directors and approved by the Representatives in the same manner as the adoption o` the annual operating budget. No person or Member shall have any right or cause of action against any Member not" promptly paying any part of all of its assessment, but such right or cause of action shall be vested solely in, and may be exercised only by , the Municipal Power Agency , which may enforce the same as a contract right against the non-paying Member . Before exercising any such rights, the Municipal Power Agency shall serve notice of such non--payment wish the Representative or the Commission of the non-paying Member , which notice shall state the amount of the unpaid assessment , and demand payment therefor. If such Member has not paid the deficiency in full within thirty ( 30 ) days from the date such notice was served , the Municipal Power Agency may take any enforcement action deemed appropriate by the Board cf Directors . subject to the provisions of any contract by which the Municipal Power Agency is bound to the contrary, members shall be reimbursed for assessments paid from excess revenues of the Municipal Power Agency in the manner prescribed by the Board of Directors. Any ? ember which fails to pay when due its assessments , and any member which bzeaches any contract with the Municipal Power Agency , may be excluded from membership in the Municipal Poker Agency as provided in Section 9 ( A) of 'this Agency Agreemen-�. such excluded Member shall continue to be liable for the unpaid assessments or for its obligawions under the contract with the Municipal Power Agency. (J ) Quoru rn. A quorum for a meeting of the Representatives is ( i ) a majority of the total number of Representatives , and ( ii ) that number of RepzesenLa Ives which may , by Weighred voting , ca$r a majority of the aggregate amount of votes capable of being case by all Representatives . - 13 - A quorum for a meeting of the Board of Directors is a majority of the Directors. Fxcept where otherwise specifically stated in this Agency Agreement or in the Bylaws, any action which requires the affirmative vote of a percentage of Representatives or Directors or a percentage of votes cast by the Representatives shall be construed to be that percentage of Representatives or Directors present and voting or that percentage of votes capable eof being cast by such Representatives present and voting at which a quorum is present, and not that percentage of all Representatives or DireCtoTS or that percentage of all votes capable of being cast by all Representatives . (N ) Fiscal Year . unless otherwise provided in the Bylaws or in a resolution adopted by the Board of Directors , the Fiscal Year of the Municipal Power Agency shall commence January l and end December 31 . (L ) Amendments to this Accent A reement and S •laws . This AoencY Agreement may only be amended at a regular or special meeting of the Representatives for which notice stating the purpose shall be given to each Representative and any such amendment shall only became effective when ( a ) apProved by wo thirds of all of the Representatives , each casting one voce , a apProved by two-thirds of the total number of votes capable of being cast by all of the Representatives, in accordance with the weighted voting formula described in section 94C ) hereof , 4c ) approved and concurred in by commission Resolutions and City Council Resolutions of two-thirds of all of the Members , and (d ) when such amendment , together with certified copes of such Commission Resolutions and such City Council. Resolutions are filed with the secretary of State . The Bylaws may only be adopted and amended by ta) the affirmative Vote of two-thirds of the Representatives present and the affirmative vole of two-thirds of the total voting, and ( b) voting, at amount of votes cast by the Representatives in weighted g, an annual or special meeting . (N,) Terrr^ination . This Agency Agreement may be terminated by (a ) the vote of t� o�thirds of all Representatives , each ca5tinf one nave, and ' b) the vote of t►�o-thirds of the fatal amount of the votes cast by the Represencazives in weighted voting at a regular meeting or a meeting specially called for that purpose, but not un4il after all debts of the Municipal two thirds �afhthe been paid : and only Leon the approval of same by members , as evidenced by Commission Resolutions and City Council Resolutions filed with the Board of Directors . Thereafter , the Board of Directors shall liquidate the b•-,siness of the municipal. Power Agency as expeditiously as possible. , distribute the net - 14 - proceeds to the Members in the ratio that the total assessments made against each of them bears to the sum of the total assessments made against 811 of them, and file notice of such termination, together with such Commission Resolutions and City Council Resolutions, with the Secretary of State. IN AND WHEREOF, THE CITY OF ARLINGTON, the CITY OF BROWNTON, the CITY OF CHASKA, the CITY OF LE SUEUR, the CITY OF NORTH ST. PAUL, the CITY OF OLIVIA, and the CITY OF WINTHROP have each caused this AGENCY AGREEMENT to be executed and attested by a duly authorized officer, have each caused to be attached here- to the certified Resolution of its governing body, (as such term is defined in the Act) and the certified Resolution of its city council {or other body which is charged by law or its charter with the general control of such city' s goy- is affairs) , aril have caused this AGENCY AGREEMENT to be filed with the Secretary of State of Minnesota requesting therefrom a Certificate of Incorpor- ation, all as of the day and year first written above. CITY OF ARLINGTON By Arden Kre t, M, yor and Representativ ' (Seal ) Attest: S 41J [ By Ar en ru je city Clerk/Treasurer CITY OF BROWN TON By _ Carl W ter ( SEAL ) By i.lmember Curtis Carrigan, Co c Attest : Representative By. L�UL ,clC hia Lindeman city Clerk 16 - CITY OF CHA By • Rvb rt P . RQe ke Ma o B t f' y Dave Pakarneyr R resentat�ve ( SEAL ) Attest: , /r P 17 - CITY OF LE 5UEUR By Jo King, Mayor By 4Z4�- Merin Hentges , Representative ( SEAL) Attest Kathleen M. 3ohannsen City Clerk f 1^ j _ is CITY OF NORTH ST. PAUL r, By r William Sa aberg , Mad r By r-r� Ran Schuler, Representative (SEAL) Attest: B Robert Gatti . City r,anager 3 -19- CI OF OLIVIA By ohn Stumpf By r Dan Deckers Rigresentative ( SEAL ) Attest= Sy Donald W. �red�rick City Administrator S CITY OF WINTHROP Y Louis Me Ius Mayor ( SEAL ) Attest '- By h u k it Y r Samuel s 21 - 99,'25/2000 07:44 6125752770 CITY OF ANOKA FINANC PAGE 01 RESOLUTION ND. 1992 " 24 .. CITY OF AN[7RA, MINNESOTA � RESOLUTION AUTHORIZING THE EXECUTION OF AN AGENCY AGREEMENT FORMING AND AUTHOR-TZING MEMBERSHIP IN A MUNICIPAL POWER AGENCY AND APPOINTING REPRESENTATIVES TO THE AGENCY WHEREAS, Minnesota Statutes, Section 453.51 through 453.62 , inclusive (herein referred to as the rAct") permits "y two or more cities which are organized and existing under the Laws of the State of Minnesota (or a city charter adopted pursuant thereto) and which are authorized by such laws or charter to engage in the local distribution and sale of electric energy, to establish and create a municipal poorer agency as a separate political subdivision and L-' municipal corporation of the State of Minnesota (referred to herein as a "Municipal Power Agency") by the execution of an agency agreement attached hereto as Exhibit A authorized by the governing body of each city, and the filing thereof for record with the Secretary of State of Minnesota; and WHEREAS, certain representatives and officials of the City of Axicka, have attended meetings, participated in discussions and been involved in the preparation of the Agency Agreement, one or more or all of which will also execute the Agency Agreement and became a Member of the Municipal Power Agency; and Post-It'° brand faxtran,5mittsi memo 7M 4-fPsgee ► 1 5/11/92 To f srom I CD. } Co. Dept Phone n MMPA-00449 Fax A Fax 11 SEP 26 10E 15;16 6125?62770 PAGE.01 09125/2000 07;44 6125762770 CITY OF ANOKA FINANC PAGE 02 Resolution No. 1992-24 Page Two 4 )34 WHEREAS, the Act provides that the Municipal Dower Agency shall have certain rights and powers a$ enumerated therein, all of which the City of Anoka desires to exercise by farthing and participating in a Municipal Power Agency; and WHEREAS, the Act and the Agency Agreement state that Members cf such Municipal Power Agency shall have no pecuniary liability as such Members, except as enumerated in Section 9 (1) of such Agency Agreement relating to assessments ; and WHEREAS, the city of Anoka is authorized by the laws of the State of Minnesota and its City Charter to distribute and sell electric energy: and WHEREAS, this body is the xc,ity Council" of the City of Anoka and is also the oGoverning Body'f with respect to the city of Anoka., Minnesota, within the pneaning of the Act; and WHEREAS, the council has reviewed a proposed form of Agency Agreement, between and among the City of Anoka and one or more Minnesota c3tiem 45 referred to in such Agency Agreement which creates and establishes the Municipal Power Agency. Now, THEREFORE, IT 1S HEREBY RESOLVED by the Council of the city of Anoka: I . The participation of the City of Anoka in the creation and formation of the Municipal Power MMPA-00450 SEP 26 '00 15: 16 6125762??0 PAGE.02 09/25I2800 07:44 6125762770 CITY ❑F ANOKA FINANC PAGE 93 Page Three '{{y'y ■ Agency is hereby approved, ratified and Confirmed �--' and the Membership of the City of Anoka in the Municipal Power Agency is hereby authorized and approved. 2, The Agency Agreement is hereby approved and the Mayor and clerk of the City 'of-'Anoka, Minnesota, are hereby authorized and directed to execute the Agency Agreement, contingent on revisions in the agreement, in form approved by the City Attorney. Said approval shah, be evidenced by the signature of the city Attorney approving the foxes of the agreement. 3 . The initial Agency Agreement may be joined in by any one or more of the following Minnesota cities: Chaska, North St. Paul, Le Sueur, East Grand Forks, Olivia, Fairfax, Winthrop, Anoka,, Hrownton, Shakopee, Ada, BuTfAIQ, Madelia, Kenyon, Arlington and Melrose. 4 . The following persons are hereby appointed as Representative and Alternate Representative of the City as a Mer,ber of the Municipal. Power Agency: Repregentaij.Ve Address John Weaver 1532 So. Ferry, Anoka 55303 A teYnate Representative Address David Kopecky 1803 Tenth Avenue, Anoka 55303 3 5/11/92 MMPA-00451 SEP 26 100 15.17 5125762??0 FRGE.03 9912512000 07; 44 6125762770 CITY OF ANCKA FaNANC 04 Resoluti On No. 1992-24 Page Four 493f;i The Representative shall exercise all of the rightse duties and powers of tho City of Anoka as a Member of the Municipal Power Agency until a successor Representative shall be selected. 5, The City Clerk is hereby authorized and directed to affix to the Agency Agreement a certified copY Of this Resolution for submission to the secretary of statc of Minnesota in accordance with the Act. This Resolution is adopted by the Anoka City Councils can May 11 f 19 9 2 . Pck 91-, ah, Peter M. Heberg, M yor AT'k'ES�' 1' Mark Nagel, C ty Manager 4 5/11/92 MMPA-00452 61257627?0 PRGE.04 qPP P6 on 15= 17 Nothing contained in this Agency Agreement or in the Bylaws shall be construed to prohibit any Member from (i ) executing one or more other agency agreements with other cities for the purpose of forming other Agencies under the Act or ( ii ) exercising the pow€,rs of an Agency as provided in Minnesota Statutes , Section 453 . 58 . Nothing contained in this Agency Agreement or in the Bylaws shall be construed to prohibit the Municipal Dower Agency from joining an organization or association composed of other Agencies created pursuant to the Act . Any Member which has either defaulted under a contract with the Municipal power Agency ax failed to pay its assessments in accordance with Section 9 (I ) hereof, may be expelled from the. Municipal power Agency at an annual or special meeting of the Representatives by the affirmative vote of (a ) a majority of all ftepresentat.ives ( including the Representative or Representatives of the defaulting Member) , each casting one vote , and ( b) a majority of the total, votes cast by such Representatives, ire accordance with the weighted voting formula described in Section 9 (C) of this Agency Agreement . The expulsion of a Member from the Municipal Power Agency shall not affect any obligations under any contract between the expelled member and the Municipal power Agency rDr its obligation tv pay any moneys previously assessed against such expelled NMemb?r . (g ) Matters Re ofrin Members ' A rnVa3 . No action on any of the following matters shall be undertaken by the Municipal power Agency except pursuant to d resolution adopted by the Board of Directors and approved by the Representatives, provided that such approval of thO Representatives may be given by a resolution adopted by the Representatives which is general in scope and continuous in nature and may delegate to the board of directors the power to take: any and all action reasonably necessary or desirable to accomplish the purpose of the Tesolution: (1 ) The issuance of bonds or notes of the Municipal Power Agency . (2) The execution by the Municipal Power Agency of any contract payable primarily from assessments, when such contract by its terms will not expire prior to the end of the Fiscal 'Year in which it is executed . (3 ) The incurrence by the Municipal Power Agency of any financial obligation in excess of that which is budgeted for the Fiscal Year in which it is incurred . ( 4) The adoption and amendment of an annual operating budget , �-�-at�ak- ��- -raq�iras- --a�aesatraent- �~ expen3e�---� X ambews, as provided in Section 9 ( r) of this ]agency Agreement. Oft ( 5 ) The admission or expulsion of Members , as provided in section 9 ( A) of this Agency Agreement, MMPA-00453 allocation is made for the next Fiscal Year . (p) Hearin s. Initial meetings of the Representatives and of the Board of Di-rectprS shall be held upon the call of the Directors, after notice , for the purpose of determining the votes of R+epresfntat ives as provided in Section '9 (C ) hereof , adopting Bylaws, electing Directors and officers, adopting an initial operating budget for the remainder of the Fiscal Year, and transacting any other business that may come before the meetings. The Bylaws shall be proposed by the Board of Director$ and shall become effective when approved by resolution adopted by the affirmative vote of (i ) two-thirds of the Representatives, each casting one vote, and ( ii ) two-thirds of the votes cast by the Representatives in accordance with the weighted voting formula set forth in Section 9 (C) hereof . Thereafter, the Representatives shall hold an annual meeting at a time and place provided in the Bylaw's or in a resolution adopted by the Representatives► at which any business may be transacted, and special meetings upon such call and notice and at such times and places as may be provided by or pursuant to the Bylaws or in a resolution adopted by the Representa'!.fives. (B) Board of Directors . The powers of the Municipal PawFr Agency shall be exercised by the Board of Directors in which shall be vested -all of the. powers conferred on the municipal Power Agency by the Act and this Agency Agreement other than those Powers described in Section 9 (B ) hereof which shall require the approval of the Representatives . The initial Hoard of Directors is set forth in Section 6 hereof . Only Representatives shall be eligible for election to the Board of Directors . compensation for Directors shall be Set by the Representatives. Directors shall discharge their duties in good faith , and with that diligence and care which an ordinary prudent - person in a like position would exercise under similar circumstances. Actions by the Board of Directors may be taken upon the vote of a majority of the Directors present and voting at any meeting at which a quorum is present. Directors shall not cast. "weighted votes" and each Director shall cast but one Vote , Until the first meetings of the Board of Directors and Representatives, the Initial Representatives shall constitute the ¢ Board of Directors . At such initial meeting of the Representatives, the new Directors shall be selected as provided, below, and , at the time of selection of such new Directors , the terms of office of the Initial Representatives as Directors shall cease and such new Directors shall take office. If the Municipal Power Agency has seem a._«i.ght members or less, the Board of Directors shall consist of the Representatives from each of the members. If the Municipal Power Agency has more than seven ee ight members, the Board of Directors shall consist of seven ( 7 ) ' Directors, appointed or elected as followst 1 (1 ) The Representatives of the three members which have the greatest number of votes allocated to them pursuant to section g MMPA-04454 proceeds to the 14embers in the ratio that the total power and energy purchased from tha A9±ncy. ty each of them bears to the sum of the total Power and enerSy purchased from the Agency _.ty assessments- made-vVtrilrst all of them, and f e riot Cz of such termination, together with such Commission Resolutions and City Council Resolutions* with the Secretary of State , IN AND WHEREOF, THE CITY OF ARLINGTON, the CITY OF BROWNTON, the CITY OF CHASKA" the CITY OF LE SUEUR, the CITY OF NORTH ST. PAUL, the CITY OF OLIVIA, and the CITY OF WINTHROP have each caused this AGENCY AGREEMENT to be executed and attested by a duly authorized officer, have each caused to be attached here- to the certified Resolution of its governing body, (as such term is defined in the Act) and the certified Resolution of its City Council (or other body which Is charged by law or its charter with the general. control of such city's gov- ernmental affairs) , and have caused this AGENCY AGREEMENT to be filed with the Secretary of State of Minnesota requesting therefrom a Certificate of Incorpor- ation, all as of the day and year first written above. SCITY OF ARLINGTON By ad� r en Kre t, M yor an Representativ (seal ) Attest. By PM -8ruEjeff City Clerk/Treasurer MMPA-00455 09126/2900 05:55 5125752770 [;11Y L]F ANUKA FINANC PAGE 01 Post-It"brand fax transmittal memo 7671 00pages, Tal T. From cry. L��+S-qr:sr 4""K— MINNESOTA co. 192-5 MUNICIPAL POWER AGENCY (THE '"AGENCY"I RESOLUTION OF THE HOARD OF DIRECTORS OF THE AGENCY WHEREAS, the City of Anoka, Minnesota has filed with the Board of Directors of the Agency a certified copy of a resolution of its City Council , wherein the City of Anoka has: ( 1) agreed to the provisions of the Agency Agreement including the obligation to pay assessments, dated as of May 11, 1992 , by and between the member cities of the Agency, as filed for record with the Secretary of State of the State of Minnesota on the 19th day of May, 1992 (the "Agency Agreement") and the By-Laws of the Agency, (2) requested to become a member of the Agency, and (3) appcinted an initial Representative to the ,Agency, all upon the terms provided for in the Agency Agreement; (`~ WHEREAS , the Representatives of the Agency have by their resolution determined to approve the admission of the City of Anoka as a member of the ,Agency; and WHEREAS, the Agency Agreement requires that the Board of directors mare certain determinations with respect thereto, NOW THEREFORE, BE IT RESOLVED, and determined by the €lirectors of the Agency in accordance with Section 9 (A) (3) of the Agency Agreement: The resolution of the Representatives of the Agency approving the admission of the City of Anoka as a member of the Agency was approved by said representatives at a special meeting thereof held can the same date as the adoption of this resolution and the afer'e-said Representatives' resolution was adapted by the affirmative vote of (1) two- thirds (2/3 ) of all of the Representatives of the present ruember cities of the Agency, each casting one vote and of (2) two-thirds (2/3) of the total votes cast by the Representatives of the present member cities of the Agency, each casting their weighted vote in accordance with the weighted voting formula described in section 9 (C) of the Agency Agreement . MMPA-00456 5EP 27 '20 13:32 5125762770 FAGS.01 X512612 1 8 X5; 56 61157621IY] UJ I Y UF° WNUKA FiNANG F A(a6 02 The officers of the Agency are hereby authorized and directed to forthwith file Certified copies of thin resolution of the Directors, the aforesaid resolution of the Representatives of the Agency and the resolution of the City Council of Anoka with the Secretary of State of the State of Minnesota. Adopted this 02e9 day of , 1992 . V- 4 Chairman ATTEST —®r-)I�L Secretary MMPA-00457 5EP 27 'Oe 13;32 6125762770 PAGE-02 �91ZF�l2b�3� d�; 5b a���ratrr� L:i I Y Ut FANLJKW r iNANU t'Alat YUd STATE OF MINNESOTA ] Ss COUNTY OF RAMSEY } 1 , Ron Schuler , do hereby certify that T am the custodian of the records of the Minnesota Municipal power Agency, and that the attached -resolution is a true and correct copy of the resolution presented to and adapted by the Minnesota Municipal power Agency on May 20 , 1992, as disclosed by the records of the Agency in my possession- ! / t: R a LHOW'plll Mi a over Agency dr ca-wm Egon 70 =& r STATE OF MINNESOTA 06PARTMENT OF STATE, FILED M411 ADO tatgq ilJeJ'+�"a0-fYJ 4 i MMPA-00458 SSP 27 100 13::33 6125762770 FR3E.03