5.6 ERMUSR 11-12-2019 Elk Riv*----
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Troy Adams, P.E.—General Manager
MEETING DATE: AGENDA ITEM NUMBER:
November 12, 2019 5.6
SUBJECT:
Minnesota Municipal Power Agency Alternate Representative Appointment
ACTION REQUESTED:
Appoint by Resolution No. 19-8 an Alternate Representative to the Minnesota Municipal Power
Agency Board.
BACKGROUND:
On October 1, 2018, ERMU began receiving wholesale power from the Minnesota Municipal
Power Agency(MMPA). Including ERMU, the agency has twelve member-owners all of which
are Minnesota municipals. ERMU officially became the twelfth member community in 2013, at
which time ERMU gained representation on the MMPA board of directors.The governance
structure of the agency allows for one representative and one alternate representative from
each member community.
Each member has the right to choose the best make up of their agency representation.The
ERMU commission, through adoption of a resolution, appointed by names the following
representation:
• ERMU's MMPA Board Representative:Troy Adams—General Manager
• ERMU's MMPA Board Alternate Representative: Al Nadeau —Commissioner
The decision to appoint a manager and a commissioner was intentional to incorporate both
ERMU operational and governance perspectives in MMPA planning and decision making.This
philosophy was affirmed through policy in 2017 when the commission adopted Commission
Policy G.4k Minnesota Municipal Power Agency Relationship, Representation, and Governance.
This policy is attached for reference.
The appointments are in effect until formal action through resolution adoption would be taken
by the ERMU commission to change the appointments.The representative and alternate
representative are required to execute confidentiality agreements with the agency.
DISCUSSION:
In September, 2019, Commissioner Nadeau informed the commission of his desire to stepdown
from the appointment as MMPA Board Alternate Representative effective January 1, 2020.
To appoint a new alternate representative,the commission needs to pass a resolution naming
the replacement for Commissioner Nadeau.The resolution is attached.
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The appointment comes with responsibilities. The role and responsibilities of an MMPA board
member require presence, both through regularly attending meetings and through
engagement. It is expected that board members are prepared and informed. It is expected that
board members provide governance through policy direction considering short and long term
goals. It is expected that the board hold each other and management accountable to clearly
communicate expectations and deliver results. And it is expected that in addition to
representing the communities they come from, board members shall make decision for the
greater good of the long term substantiality and viability of the agency.
The time commitment includes monthly meetings, typically running approximately three to
four hours, occurring on the last Tuesday of the month at the Shakopee Public Utilities offices.
Annually, one of those meeting is held in Faribault, MN, at the MMPA generation facility.
Additionally, every July MMPA holds an annual dinner meeting hosted in a member community.
The board will need to appoint through resolution a new alternate representative to the MMPA
Board of Directors.
ATTACHMENTS:
• Resolution No. 19-8 Appointing an Alternate Representative to the MMPA Board
• ERMU Policy—G.4k—MMPA Relationship, Representation, and Governance —for
reference only
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RESOLUTION No. 19-8
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION OF BOARD OF COMMISSIONERS OF ELK RIVER MUNICIPAL UTILITIES
APPOINTING TO THE POSITION OF ALTERNATE
REPRESENTATIVE TO THE MINNESOTA MUNICIPAL POWER AGENCY BOARD.
WHEREAS, Elk River Municipal Utilities is a member of the Minnesota Municipal Power
Agency, and;
WHEREAS, as a member of the Minnesota Municipal Power Agency Board, Elk River
Municipal Utilities is allowed to have a representative and alternate representative
appointed to the Board of Directors, and;
WHEREAS, the Elk River Municipal Utilities adopted a policy that the General Manager
would serve in the function of the representative to this Board, and whereas this policy
also set out that a Utilities Commissioner would serve in the capacity of alternate to this
Board, and;
WHEREAS, with the announcement that the current initial alternate representative,
Commissioner Al Nadeau, will be stepping down in his role, a replacement
Commissioner needs to be formally appointed by the Board of Commissioners to serve
in the function of alternate to the Minnesota Municipal Power Agency Board,
NOW,THEREFORE BE IT RESOLVED that the Board of Commissioners hereby appoint
to serve as the Elk River Municipal Utilities alternate to the
Minnesota Municipal Power Agency Board effective January 1, 2020.
This Resolution Passed and Adopted this 12th day of November, 2019.
John J. Dietz, Chair
Troy Adams, P.E., General Manager
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Elk River
Municipal Utilities COMMISSION POLICY
Section: Category:
Governance Delegation to Management Policies
Policy Reference: Policy Title:
Minnesota Municipal Power Agency
G.4k Relationship, Representation, and
Governance
PURPOSE:
With this policy,the Commission sets forth its expectations for the General Manager
concerning the relationship between Elk River Municipal Utilities (ERMU) and the Minnesota
Municipal Power Agency (MMPA). By ERMU accepting the provisions of the Agency
Agreement and By-Laws of MMPA through Resolution 13-5, and as parties to a full-
requirements Power Sales Agreement and Membership Agreement, ERMU and MMPA have
long-term obligations to each other with respect to wholesale power supply and delivery in
which MMPA is the service provider and ERMU is the member. As parties to these
agreements, ERMU represents the interests of its electric customers and the City of Elk River
as one of MMPA's Member communities. ERMU also participates in the governance of
MMPA through its representation on MMPA's Board of Directors.
POLICY:
The ERMU General Manager shall be ERMU's representative on the MMPA Board of
Directors and a Commissioner shall serve as the alternate representative. The General
Manager shall ensure that ERMU's contractual and working relationships with MMPA are
handled in a collegial manner and with diligent attention to ERMU's best interests when
ERMU is acting as an MMPA customer, and to balance the best interests of MMPA when
ERMU is acting as an MMPA member. The General Manager shall make every reasonable
effort to prevent the relationship between ERMU and MMPA from becoming contentious or
unproductive.
Consistent with this general statement,the General Manager shall:
1. Support MMPA by providing the staff time and other resources that may be reasonably
requested by MMPA in connection with its services to and ongoing business relationship
with ERMU as a customer.
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ERMU Commission Policy—G.4k MMPA Relationship,Representation, and Governance
2. Make available to MMPA the leadership, staff support, and other resources of ERMU as
determined necessary to support ERMU's interests as a member-owner while also
ensuring that such support to MMPA does not jeopardize ERMU's own needs and
interests independent of MMPA.
3. Communicate routinely about MMPA and its relationship with ERMU to the Board,
employees, customers, and other stakeholders.
POLICY HISTORY:
Adopted September 12, 2017
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