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HomeMy WebLinkAbout15.F.4. Approving SPUC Membership in the MN Municipal Power Agency-Res. No. 6016 IS: ~ ~ CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: SPUC Authorization - MMP A Agreement DATE: February 11, 2004 INTRODUCTION: The Council is asked to concur with the application of the Shakopee Public Utilities to join the Minnesota Municipal Power Agency (MMP A). BACKGROUND: Shakopee Public Utilities has investigated wholesale suppliers of electrical service to provide for a future electrical supply needs. Currently, the majority of SPUC' s power is purchased from the NSP grid. However, SPUC has negotiated with MMP A, a consortium of eleven cities, to join with them in buying wholesale power. It is anticipated that by 2009, almost all of SPUC' s regular electrical power supply could come from the MMP A. Shakopee would be the twelfth member of the MMP A, and would become the largest community served, at least in terms of population. The three other large members of the MMP A are Chaska, Anoka, and North St. Paul. Shakopee Public Utilities Commission met on February 11 th to approve action to submit the application to join the MMP A. SPUC has requested that the City Council now concur with their application; the governing body ofthe member community is required by State law to approve application submitted. BUDGET IMP ACT: There is no direct impact on the City's budget. There is no liability financially to the City if there is a shortfall in MMP A funding; that is the responsibility of the Agency as a whole. The advantage to Shakopee residents and businesses is that they could be assured of wholesale power at competitive rates. RECOMMENDATION: I recommend that the City authorize SPUC to make application to join the MMP A. ACTION REQUIRED: If the Council concurs, it should, by motion, adopt the following resolution: RESOLUTION NO. 6016 A RESOLUTION OF THE CITY OF THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA CONCURRING IN RESOLULTION NO. 754 OF THE SHAKOPEE PUBLIC UTILITES COMMISSION APPROVING MEMBERSHIP IN THE MINNESOTA MUNICIPAL POWER AGENCY lM~t;/J1 Mark McNeill City Administrator MM:th ~_."--_._"".,-"",-"--,_._-_._,-_.,,,,,~-'''-''..-..~ -_._-~....._.. _.._...._.....~---_..._...... -----_._-~~--_._-_..._----_......... .. RESOLUTION NO. 6016 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA CONCURRING IN RESOLUTION NO. 754 OF THE SHAKOPEE PUBLIC UTILITIES COMMISSION APPROVING MEMBERSHIP IN THE MINNESOTA MUNICIPAL POWER AGENCY NOW THEREFORE BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota: Section 1. It is hereby found, detennined and declared : A. The Public Utilities Commission of the City of Shako pee (the "Commission") has detennined that it is in the best interests of the City and the electric ratepayers who are customers of the Commission 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 MilU1esota Statutes (the "Agency Statute") and 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. 754, dated Febmary 11, 2004 (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, sectionl.G. 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 tenn 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 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 Mhmesota in accordance with the Agency Statute. Adopted in adjourned regular session of the City Council of the City of Shakopee, held this 17th day of February, 2004. Mayor of the City of Shakopee ATTEST: City Clerk CERTIFICATION State ofMim1esota ) Scott County ) City of Shakopee ) I hereby certify that the attached Resolution No. 6016 is a true and correct copy of a resolution presented to and adopted by the Council of the City of Shakopee, Minnesota at a duly called meeting held on the _ day of , 2004 and that the same has not been rescinded or amended and is in full force and effect. Date: ,2004 City Clerk 155535-a SHAKOPEE PUBLIC UTILITIES COMMISSION Resolution No. 754 A RESOLUTION REQUESTING MEMBERSIDP IN THE MINNESOTA MUNICIP ALPOWER 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 PUBLIC UTILITIES COMMISSION OF THE CITY OF SHAKOPEE : 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, Chaska,Le Sueur, North St. Paul, Olivia and Winthrop and they each purchase wholesale power, transmission and other electric utility services from the Agency. C. The City of Shako pee is authorized by Minnesota Statutes, sections 412.321 through 412.391 to engage in the local distribution and sale of electric power and energy. Pursuant to Minnesota Statutes, section 412.361, the Shakopee Public Utilities Commission is authorized and empowered by law to regulate .rates and charges for the distribution of electric energy within the City of Shako pee and to make arrangements for power and energy supply. D. The Shakopee Public 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 the City of Shakopee. Therefore, the Commission has selected the Agency to provide its long term power supply needs commencing in 2006 and to apply now for membership in the Agency. F. The Commission finds further assurance and support for its selection in that the Agency has provided a substantial amount of the City's power and energy requirements under contract with the Agency since 1995, that the governance of the Agency is in the hands of other Minnesota municipal electric utilities and that the City of Shakopee by its 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) and 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 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 ofthis Resolution the Agency Bylaws include the Bylaws ofthe 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 Shakopee is required as a precondition to the effectiveness of the Commission's adoption of the Agency Agreement as provided in this Resolution. 1. 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 Shakopee, Minnesota 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 the City of Shako pee, Minnesota and the Secretary or any other officer of the Commission is herby 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 the City of Shakopee as a member of the Agency: Representative: Address: Louis Van Hout 1030 E. 4th Ave. Shakopee MN 55379 Alternative Representative: Address: Joan Lynch 1030 E. 4th Ave. Shakopee MN 55379 The Representative or, in the absence of the Representative, the Alternative Representative, shall exercise all of the rights, duties and powers of the City of Shakopee as a member of the Agency for and on behalf of the City of Shako pee 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. Se-ction 5. The Chairman of the Commission or any othet officer of the Commission is authorized and directed to affix to the Agency Agreement a certified copy ofthis resolution for submission to the Secretary of State of Minnesota in accordance with the Agency Statute. Section 6. The Chairman ofthe Commission or any other officer of the Commission is authorized and directed to deliver this Resolution to the City Council of the City of Shakopee and to request the concurrence of the City Council in this Resolution. This Resolution is adopted by the Shakopee Public Utilities Commission on February 11, 2004. ffi4J4i(( / Mark Miller ~ Commission President Attest: . If" I CERTIFICATION STATE OF MINNESOTA ) COUNTY OF SCOTT ) CITY OF SHAKOPEE ) I herby certify that the attached Resolution No. 754 is a true and correct copy of the Resolution presented to and adopted by the Shakopee Public Utilities Commission at a duly called meeting held on the 11th day of February, 2004 and that the same has not been rescinded or amended and is in :full force and effect. .- .J w1, I-oE:J '"'P secre~ :j Shakopee Public Utilities Commission (SEAL) 155532-a "------ BYLAWS OF THE MINNESOTA MUNICIPAL POWER AGENCY The Bylaws are adoptedt upon recommendation of the Board of Directors by the Representatives of the Minnesota Municipal Power Agency, a separate municipal corporation and political subdivision of the State of Minnesota created and established pu'Csuant to Minnesota Statutes, Section 453.51 through 453.62, inclusive, and an Agency Agreement, dated as of , 19 , between and among the Cities the'Cein listed and any and all other Minnesota cities becoming a party to such agency Agreement pursuant to its terms afte'C the date the'Ceof, which Agency Agreement lS on file with the Secretary of State of Minnesota in Book of Incorporations on page . All t!2rms used herein shall have the same meaning as defined in such Agency Agreement. ARTICLE I - ~BERSHIP : The Members and Representatives of the Municipal Power Agency and the limitations, conditions, restrictions, rights, privileges, duties and obligations pertaining to membership are set forth in the Agency Agreement. ARTICLE II - MEETINGS OF REPRESENTATIVES ( Section I. Annual meeting. There shall be annual meeting I : an \ of the Representatives on the of each yea r, at such place as shall be designated in the notice of meeting. Section 2. Special Meetings. Special meetings of the Representatives shall be called by the Secretary upon a written request si g ne d by two ( 2 ) Directors, or upon the written petitiQn of not less than one-third of the Representatives or upon the written petition of the Representatives who are capable of casting not less. than one-third of the votes in accordance- with the wei ghted voting formula set forth ln Section 9(C) of the Agency Agr~€ment, which request or petition shall be delivered to . the Secretary. Section 3 . Time and Place of Meetings. All meetings of RepLE2sentati ves shall be-held at a suitable time and place to be selected by the person or persons at whose direction the meeting is called, or, with . respect to an annual meeting, at the time and place selected by the Board of Directors. Section 4. Notice of Meetings. A written ...." of each nOLlce meeting of Representatives, containing the place, date and hour, /" and the purpose or purposes for which. it is to be held, shall be- given by the Sec-retary or, in the case of death, absence, ir;capacity, or -refusal of fhe Secretary, by any other officer, to each Represen~ative by leaving such notice with such Representati ve or his or her designee or at his or her residence or usual place of business or by mailing it. post.age prepaid and addressed to each Representative at his or her address of residence or usual place of business as it appears in the records of the Municipal Power Agency. In case of special mee~ihgs, such notice shall be given at leas~ ~en lID) but not more than sixty (60) days before such meet.ing. In case of t.he annual meet.ing, such not.ice shall be given at.. least. t.wo (2) . days before such meet.ing. Section 5. Waiver of Notice. Any Representative ~ay waive, by writing, any notice of a meeting required to be given by these Bylaws. The'attendance at a meeting shall constitute a waiver of not.ice t.O such meet- ing by such RepresenT.at.i ve, . except where such attendance shall be for the express purpose of objecting that any such meeting has .been lawfully called and convened. Section 6. Quorum. The quorum at a meeting of the Represent.at.i ves is set fort.h in Sect.ion 9 (J) of the Agency Agreement. Representatives shall be deemed present if represented by written proxy. Section 7. Voting. Each Representative shall cast the / number of vot.es assigned t.o it in accordance wit.h t.he Agency ( { Agreement, either in person or by w~itten proxy. " Sect.ion 8. ' Representatives. Represent.at.i ves shall represent. t.he ~ Members in accordance wit.h t.he provisions of t.he Agency Areement.. In any case in which a Represent.at.i ve is unable to att.end a meeting, t.he Represent.ati ve may (a) designate anot.her Represent.ative to cast his or her proxy, or (b) submit to the Secretary his or her proxy. The proxy shall be executed on such form as may be preset ibed by t.he Board of Direct.ors and all requirements relating to the submission, execution and filing of proxies shall be prescribed by t.he Board of Direct.ors. In any ca se in which- a Represent.at.i ve 1.S unabl e t.o at.t.end a meeting, t.he Member may be represent.ed by an al t.er-nate representat.i ve, as provided in t.he Agency Agreement. Section 9. Open Meeting. In accord~nce with Minnesota Statutes, Section 471.705, all meetings of the Power Agency shall be open to the public, and all records of the Municipal Power Agency shall be made available for inspection by the public to an extent. required t.o c6nform t.O t.he requirement.s of said Section 471.705 or any successor statute. i ~ - 2 - ARTICLE III - DIRECTORS Sect.ion 1. General Powers. Except. as expressly set. fort.h in t.be Agency Agreement., t.he powers of t.he Municipal Power Agency shall be exercised by the Board of Direct.ors. The Board of Direct.ors shall have power t.O adopt rules and regulat.ions, not. inconsistent with t.he Agency Agreement, these Bylaws, or t.he Act, for t.he management. , administ.ration and regulat.ion of t.he business affairs of t.he Municipal Power Agency. Section 2. Election and Tenure. The names of t.he initial Board of Direct.ors is set. f ort.h in t.he Agency Agreement. The Direct.or s, if and when appointed or e 1 ect.ed , shall be appoint.ed or el ect.ed and shall have t.he respective terms set. fort_h in t.he Agency Agreement. ;-1- Sect ion 3. Compensation and Expenses. Compensa t.i on of Directors shall be set by t.he majority of vot.es cast. by t.he Represent.at.i ves in accordance with the"weighted voting formula set. forth in Sect.ion 9(C) of the Agency Agreement. Sect i:>n 4. AccountinG and Audits. The Board of Direct.ors shall est.ablish and maint.a in 3.D appropriate accounting system. Unless ot.herwise det.ermined by the ma jor i t.y of votes cast by / Represent.at.i ves in accordance with the weighted voting formula set. i forth in section 9(C) of the Agericy Agreement, a complete audit by \ a cert.ified public account.ant. or a firm of cert.ified public accountant.s licensed t.o practice l.n t.he St.at.e of Minnesot.a shall be made of the Municipal Power Agency's account.s, books and financial condi t.ions after t.he close of each fiscal year, and a report. t.hereof shall be submitted t.o t.he Represent.at.i ves at. t.he next'annual meeting. ~ . Section 5. VotiI)q. Each Director shall cast one vot.e and, except. where ot.herwise specifically set forth in t.he Agency Agreement. or these Bylaws" all quest.ions shall be decided by majorit.y vote. Section 6. Seal. The Board of Directors may adopt. and al t.er the seal of the Municipal Power Agency. Section 7. Automat ic Direct.or s, Ties in Weight.ed Vot.e. In t.he event t.hat. t.here exist.s a t.ie among t.he members wit.h t.he greatest number of weighted vot.es allocat.ed to- t.hem pursuant. t.o Sect.ion 9(C) of t.he Agency Agreement. , for purposes of t.he .' select.ion and ret.ention of Members automat.ically represent.ed on the Board of Direct.ors, t.he Member or Members which have sold ( except. for resale) the greatest. quant.i t.y of elect.ric energy in t.he prior fiscal year shall prevail. The d et.erminat.ion of t.he aforesaid energy sales shall be based upon t.he most. recent. t - 3 - ce rtificate of power sales, made by_the members pursuant to the Agency Agreement and filed and of record with the Board of Directors of the Municipal Power Agency at the time said tie occurs. ARTICLE IV -MEETINGS OF DIRECTORS Section l. Regular Meetinqs. A regular meeting of the Boa r d of Directors shall be held in conjunction with the annual meeting of the Representatives. Unless otherwise determined by the BoaTd of DirectoTs, the Board of DiTectoTs shall meet once each month at a date and time, and upon such notice as shall be established by the BoaTd of DirectoTs as the TegulaT monthly meeting. Unless otherwise dete-rmined by the Boar d of Di'tectors,. all regular meetings shall be held at the -registered off ice of the Municipal Powe-r Agency. In accordance with Section 9(E) of the Agency Agreement, and when -the Municipal Power Agency has more than seven Members, four directors are elected by the Representatives at the first meeting, one of such Directors to have a term of one yea-r, one to have a term of two years and two to... have a term of three yea rs . Thereafter, at:. the annual ..... of the Representatives in each meel-~ng year, that DirectoT(s) whose term has expired shall be replaced by ( a newly elected Director(s). For all purposes of the Agency Ag1:eement and these Bylaws, each of the Directors elected at. the \ first meeting of the Representatives, in acco'!: dance with Section 9 (E) (2) of the Agency Agreement shall have a term expiring at the annual meeting of the Representatives in the year in which his or her term expires. Section 2. Special Meetings. Special meetings of the Board of Directors may be called . by the Chairman or by any two Directors, pursuant to which the Secretary or the President shall ,.. give written or oral notice of the time, place and purpose of such meeting to each Director not less than twenty-four hours prior thereto. All special meetings of the Directors shall b€ held at a suitable place and time to be select~d by the person or persons at WhOSE direction the meeting is called. Section 3. Waiver or Notice. Any DirectoT may waive, by wr it in g , a!1Y. noti ce of a -meeting required to be given by th e se Bylaws or by resolution of the Board of DirEctors. The attendance at a meeting shall constitute a waiver of notice of such meeting by such Director, except where such attendance shall be for the exprE S5 purpose of objecting that any such meeting has been lawfully called and convened. - 4 - Sect ion 4 . Adjourned Meetings. Not hing contained in t.hese Bylaws shall be deemed t-o prohibi t_ t_he adjournings without recessing, of a meet_ing of Represent.at.i ves or Direct_ors, and the cont.inuat.ion of such meeting at a later time, without notice ot.her t_han such notice as shall be announced .upon the adjourning of the meeting. Sect_ion 5. Execut_i ve Commit_tee. The Chairman, Vice-Chairman and President. shall const.i t.ut_e the executive commit_tee of t_he Board of Direct.ors. The ex ecut.i ve commi t.t.ee shall exercise such powers of t_he Board of Direct_ors as t_he Board of Directors may by resolution delegate to it, including responsibilit.y for t-he general direction and management_ of t-he Agency when t.he Board of Direct_ors is not. in session. ARTICLE V - OFFICERS Sect.ion l. Number. The officers of t_he Municipal Power Agency shall be a Chairman, Vice-Chairman, Secret.ary and Treasurer, all of whom shall be Directors. The Board of Direct_ors may elect. such other officers as t_hey deem appropriate from time to time. Such ot_h er officers need not. be a Represent.ati ve or a Director. In addition, t.he President, al t-hough not a Direct.or, ( ,. shall be deemed t.o be an officer of the Municipal Power Agency. i i 'I Election and Tenure. At. t.he first \ Sect.ion 2. meeting of t_he BOard of Direct_ors, it. shall el ect_ t.he officers ( other t_han t_he President. i who shall be employed as provided in Sect-ion 4 (E) hereof} of the Muni cipal Power Agency, who shall serve until their successors are elect_ed at the next annual meeting. Officers shall t.hereaft_er be el ect_ed annually for one--:year t.erms. A vacancy in any office shall be filled by t.he Board of Directors for the unexpired portion of t.he term. Sec:::t.ion 3. Removal of Officers. Officers may be removed by t.he affirmat.ive vot.e of a ma jorit.y of t.he Board of Direct.ors for cause or whenever in t.he JUDgment. of t_he Board of Direct.ors t.he best. int.erest.s of t_he Municipal Power Agency will be served t.hereby. Sect.ion 4. Duties of Officers. , (A) The Chalnnan: ( a ) shall preside at. all meetings of t.he Represent:a- tives and t.he Board of Direct.ors and, unless such dut.ies are assigned by the Board of Directors to the President, shall be r.he principal execut.i ve officer of t.he Municipal Power Agency; , - 5 - - (b) may sign any deeds, mortgages, indentures, deeds of trust, notes, bonds, contracts or other instruments authorized by the Board of Directors to be executed, except in cases in which the signing and execution thereof shall be expressly delegat.ed by t.he Board of Direct.ors or by the Represent.ati ves or by these Bylaws to t.he President or to some ot.her officer, Direct.or, Representat.i ve or agent. of t.he Municipal Power Agency, . or shall be required by law t.O be otherwise signed or executed; and (c) shall in general perform all duties incident to the office of Chairman and such other duties as may be prescribed to him or her by the Board of Directors. (B) The Vice-Chairman: In the absence of the Chairman, or in the event of his or her inability or refusal t.o act., t.he Vice-Chairman shall perform the duties of the Chairman, and when so acting shall have all the powers of and be subject t.O all rest.rictions upon. the Chairman. The Vice-Chairman Shall also perform such other .duties as from time to time may be assigned to him or her by the Board of Directo~s. f "(C) The Secretary: The Secretary shall: \. (a) keep the minut.es oft.he meet.ings of t.he Representatives and of the Board of Directors in one or more -. books provided for t.hat purpose; (b) see t.hat all notices are duly given in accordance with the Agency Agreement, or these Bylaws or as required by law; . {c} be custodian of the Municipal Power Agency records and of t.he seal, if any, of the Municipal Power Agency and affix the seal of t.he Municipal Power Agency t.o documents, and attest to same or to another signature, the execution of which on behalf of the Municipal Power Agency under its seal is duly authorized in accordance with the provisions of these Bylaws; (d) keep a regist.er of t.he names and addresses of all Represent.at.i ves; (e) have general charge of the records of the Municipal Power Agency; (n keep on file at. allt.imes a complete copy of t.he Agency Agreement. and Bylaws of the Municipal Power Agency - 6 - "- ------ . -.. containing all amendments thereto (which copy sha 11 always be open ~o ~he inspection of any Representative); and (g) in general perform all the duties incident t.o t.he office of Secret.ary and such ot.her dut.ies as from t.ime t.o time may be assigned to him or her by the Board of Directors. (D) The Treasurer: The Treasurer: ( a) unless such dut.ies are assigned by t.he Board of Directors to another person, shall have charge and custody of and be responsible for all fun d 5 and securi t.ies of t.he Municipal Power Agency; (b) unless such duties are assigned by T.he Boa rd of Directors r.o anot.her person or unl!:?5s ot.herwise provided by cont.ract to which t.he Municipal Power. Agency is a part.y, shall be responsible for the receipt of and t.he issuance of receipt.s for all moneys due and payable t.o t.he Municipal Power Agency and for the deposit. of all such moneys in t.he name of t.he Municipal Power Agency In such bank or banks or , other financial institution as shall be selected by the Board of Directors; and (c) in general perform all duties incident t.o t.he office ( ; of Treasurer and such ot.her dut.ies as from time to t.imemay be assigned t.o him or her by the Board of Direct.ors. (E) The Presid ent.. The Board of Direct.ors may appoint. a President. who may be an employee of any Member. The President shall perform such duties as t.he Board of Directors may. require of him or her, shall have such aut.horit.y as the Board of Direct.ors may vest in him or her and shall be paid such compensat.ion as t.he Board of Direct.ors shall det.ermine. The President may hire ot.her persons t.o be employees of t.he Municipal Power Agency with t.he approval of t.he Board of Directors. The President. shall be deemed to be an officer of t.he Municipal Power Agency, alt.hough he or she need not be a Director or Represent.ative. The Board of Directors may assign to the President the duties of t.he principal executive officer of the Municipal Power Agency_ Sect.ion 5. Surety Bonds. The Board of Directors shall require t.he Treasurer and any ot_her officer or employee of t.he Municipal Power Agency charged with responsibility for the custody of any of it.s funds or property t.o give bonds for the fai t.hful discharge of their duties, in such form and cont.aining such t.erms and conditions and wit.h such. suret.y or suret.ies as t.he Board of Directors shall determine. The Municipal Power Agency shall pay for the bonds required of a.ny of its officers or agents. ( \ - 7 - -~------ -- Sect.i on {). Compensation. The duties, t-erms of employment, and compensation of all officers, agent.s, and employees of t.he Municipal Power Agency shall be fixed by the Board of Directors. Sect.ion 7. Agent.;;. The Board of Directors may employ or retain legal counsel, engineering, archit.ectural, financial and other professional personnel or firms in furtherance of the purposes and powers of the Municipal Power Agency. ARTICLE VI - NON-PROFIT OPERATION Section 1. Non~Profit Operation. The Municipal Power Agency shall operat_e on a non-profi t_ basis except as provided in t.he Agency Agreement, and shall 'be financed as provided ~n r.he Agency Agreement. . ARTICLE VII - CONTRACTS AND FINANCIAL TRANSACTIONS Section 1. Contracts. Subject to the Agency Agreement and these Bylaws, the Board of Directors may authorize anyone or more of its officers or agent.s t.o enter into any contract. or execut.e and deliver any inst-rument. in t_he name and on behalf of thE:! Municipal Power Agency. . Section 2. Commercial Instrument_s. All checks, draft.s, or ! . ~ ot_her orders for t.he payment of money, not_es, bonds or ot.her . evidence of indebtedness shall be signed by anyone Or mOre officers, agents, Or employees, and in such manner, as the Board of Directors may authorize. Section .3. Bank Deposits. Unless otherwise provided by contract: by which t_he Municipal Power Agency is bound, all funds of the Municipal Power Agency shall be deposited to the credit of the Municipal Power Agency in such bank or banks or other financial institutions as the Board of Directors may select. ARTICLE VIII - AMENDMENTS The Agency Agreement. and these Bylaws may be amended in accordance with t.he provisions of t_he Agency Agreernent_. ( f \ - 8 - _. -~ MINNESOTA MUNICIPAL POWER AGENCY ,/ AMENDMENT TO BYLAWS The Board of Directors of Minnesota Municipal Power Agency hereby adopts the fOllowing Amendment to Section 9 of the Agency Bylaws, pursuant to the affirmative vote of more than two-thirds Of the Representatives present and voting and the affirmative vote of more than two-thirds of the total amount of votes cast by the Representatives present and voting in ,weighted voting, at a special meeting held in Minneapolis, Minnesota on March 27, 2001. The Amendment is as follows: Section 9 of the Bylaws, which currently states: "Section 9 Open Meeting. In accordance with the Minnesota Statutes, ~ 471.705, ali meetings ot'the Power Agency shall be open to the public and all records of the Municipal Power Agency shall be made available for inspection by the public to an extent required to conform to the requirements of said ~ 471.705 or any success or statute." is hereby deleted and revoked in its entirety, and replaced with the following provision: "Section 9. Pursuant to Minnesota law, all meetings of the Minnesota Municipal ... Power Agency and all meetings of its Board of Directors shall be closed to the public and shall be open only to members of the Board of Directors, their i ) designated alternates, sUch other representatives of member cities as may be \ permitted by the Board of Directors to attend such meetings, and such advisors, consultants and attorneys as may be permitted by the Board of Directors to attend such meetings. Provided, however, that upon motion duly made and apprOved by the BOard of Directors, the Board may from time to time, open meetings, or portibri$ of meetings to the public, The records and information of the Agency shall be private and confidential." I hereby certify that the above amendment was approved by a vote of more than two- ,. thirds of the Representatives present and voting and by more than two-thirds of the total amount of votes cast by the Representatives in weighted and unweighted voting at a spedaf meeting, held pursuant to proper notice, on March 27, 2001 at 10:00 a.m. in Minneapolis, Minnesota. . ""Ir ~ J f!9:tS{)R9~ Doc# 1379065\1 . .....~..... ." ". .............,......'...'..,............ ....,. ........."..,..'......"......... ......',.........,."."...,. ....,... . .':4. '. '. ~ MPA-8 5'\3t8 of MinneSOta '. "1"f"r-7 .j..J.., SECRETARY OF STATE To All To Whom These Presents Shall Come, Greetings: Whereas, a Municipal Power Agency. Agreement and a certified copy .of the Resolutions have been filed for record in the Office of the Secretary of State, on the nineteenth day of May, 1992 , .. for the incorporation of: .. Minnesota Municipal Power Agency under and in accordance with the provisions of Sectio~ 3, Subdivision 2 of Chapter 313, Laws of Minnesota. for 1976, as amended; ; Now. Therefore, I, Joan Anderson Growe, Secretary of State of the State of Minnesota. by virtue of t~e powers and duties vested in. me by law, do hereby certify that, effective May 19, 1992, . corporate existence commenced for the above named Municipal Power Agency as a political subdivision of the state and a municipal . . corporation. -----. --_.- ;, Witness my official signature ~ubscribed and the Great Seal ' . of the State of Minnesota affixed ,. this nineteenth day of May in the year one thousand nine hundred and ninety-two. ~~ Secretary of State. ... ...." .'.'; :.,.. ".' ~.:-. ,'r." ....... \.. ." .. .. ".-';, . '" . ..', '... '. "', '";' "..;....,- . . . . .... "'," ',/., -,', .....;. :'.' "'. . . . . ../ / ;l~ { '. ()., 3~:;8 ~..;u ""Y\ AGENCY AGREEMENT MINNESOTA MUNICIPAL POWER AGENCY .This AGENCY AGREEMENT, dated as of May 11, 1992, between and among 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, all cities orgC'nized and existing unde~ the laws of the state of Minnesota (he~ei ~efe~~ed to co+lectively as the "Cities"), and any and all Minnesv'a cities becomirig pa~tie9 to thi.s Agency Ag~eement in accordance with its terms afte~ the date he~eof (said cities togethe~ with the Cities . being he~ein collec:tively ~efe~~ed to as the "Membe~s "), \ WITNESSETH . WHEREAS, Minnesota Statutes, Section 453.51 th~ough 453.62, inclusive (herein ~efel:'l:'ed to as the "Act", which tenn includes any ame~droent thel:'eof), pe~mits any two .o~ more cities which are o:rganized and existing unde't' the laws of the State o.f Minnesota (Ol:' a city. charter adopted pursuant thereto) and which are authorized by such. laws or chartel:' to engage in the local distribution and sale of elect~ic energy, to establish and create a municipal powe~ agency (refe't''t'ed to' hel:'ein as an n Agency",. which te-rm has the same meaning herein as. the. te~m "municipat powe~ agt-~ncy" as defined in the Act) by the execution of an agen.cy .. , ag't'eement (as such te-rm is defined in the Act.) auti.ori zed by the ~. i l:'esolution of the governing body (as such tenn is defined in the " Act and hel:'ein l:'eferl:'ed to as a "Commission") of each city, and the filing thereof. for recol:'d with the Secretary of State of Minnesota; and WHEREAS, the Act pl:'ovides that an Agency shall have certain ~ights. and powers. enumerated herein, .all of which the cities desire to exe~cise through the fo~mation of an Ag~ncy; and WHEREAS, each of the Cities is authorized either by the laws of the state of Minnesota Ol:' by its city chal:'ter adopted pursuant thel:'eto to engage in the local distribution and sale of electric . energy; and C') WHEREAS, the Commission of each of the Cities has authorized .~ and approved this Agency Agree~ent by l:'esolution duly adopted ~a C\l certified copy of each such l:'esolution being attached .to l.",e copy C"') hereof which has been filed with the Secl:'etal:'Y of Scate as {~ requir.ed by the Act and is herein 't'efen:ed to as a "Commission R.esolution") and, as to each city in which the Commission is not ; the body chal:'ged by law Ol:' is chal:'te't' with the general contl:'ol of the City's gove't'nmental affail:'s, the city council (as such term is defined in. the Act). ot' otlier body cha't'ged by law. or its chartel:' with the gr?:1r:>r.al contt'ol of its governmental affail:'s of each of the Cities h.~ appt'oved and concu~t'ed in this Agency Agreement and the Commission Resolution of that City r.elating thet'eto pursuant .... . . . ... . . .-.. ..... .. ....- .... -.. .. ...... ... .. .. ...... ~.... .. ... .... . .... . ....... ... ........ . ..... ,~.. . . 3959 .. . -.. i j I to ~eso1ution duly adopted (a ce~tified copy of each such -c-esolution being attached to the copy he"C'eof which has been filed ^ with the Sec~eta~y of state as. "C'equi~ed . by the Act Nnd he-r:ein -c-efe"C'red to as a "City Council Resolution"); and WHEREAS, each of the Cities desi~es to become .a membe"C' of the below-mentioned Agency pu"C'suant to the Act by the execution of this Agency Ag~eement. NOW THEREFORE, each of the cities (and each of the Minnesota cities becoming a Membe"C' of the below-mentioned Agency after the date he"C'eof) does he"C'eby covenant and ag-c-ee, each in conside~ation of the fo"C'egoing .and in conside"C'ation of the covenants and ag"C'eements of the othe"C's, as follows: Section 1. Creation alld Pu"C'pose. The below-mentioned Agency is c"C"eated and incorp'o~ated as a municipal co~po~ation and a political subdivision of the state Of Minnesota unde"C' and pu"C'suant to the p"C'ovisions of the Act, to exe"C'cise the"C'eunde~a paLt of the . sovereign powet"s of said state, in the acquisition, const~uct~on and financing of facilities fo"C' the genet"ation and t"C'ansmission of electric ene"C'gy ot" inte~ests in such facilities 0"C' "C'ights to pa~t o~ all of the capacity the~eof, in o~de~. to secu~e an adequate, economical and .~eliaDle supply of elect"C'ic energy, and in _', fu~the"C'ance the"C'eof, to exet"cise. all of the powe1:s g"C'anted to an () Ag6?tl'l"!Y by tl?e Act. - Section 2. Name. The name of the .Agenc:::y c~eated by this Agency Ag~eement shall be the "~innesot~. Municipal Powe~ Agency" ,~ (and is he"C'ein "C"efe~:r:ed to as the "Municipal Powe"C" Agency"). Section 3. Initial Members. Each of the cities "C"ep~esents and wa~~ants.to all of the othe~ Membe"C's and to the Municipal Powe~ Agency that: (A) It is a city duly o~ganized and existing under the laws of the State of Minnesota o~ unde~ a city. cha~te~ duly adopted pursuant to the Constitution and laws of the State of Minnesota. I (B) It is authodzed by such lat"S ot" charte!' to engage aha is now engaged in the local dist~ibution and sale of elect~ic ene~gy. (C) The Commission Resolution has been duly and validly adopted and has not been amended O"C' "C'epealed. (D) The City Council Resolution has been duly and validly adopted and has not been amenced o-r "C'epealed. (E) The name of the City, its Commission and its Council, and the date.s of adoption of its Commission Resolution and .City Council Resolution are as indicated below: - 2 - . . , , ;,/ .... . -I.~ 3~f;O J . Authorized by Concur't"ed in. by city Commission City Council City of Arlington Jr 5-4-92 . City of Brownton * 4-27-92 - . .. .. city of Chaska * 4-22-92 City of Le Sueur * 4-29-92 City. of NOLth st. Paul * 5-11-92 .. Ci ty of Olivia * 4-20-92 City of winth't"op * 5-4-92 ., *City Coun.cil is the "goveLning 'body" of the. City. (F) It consents to the filing of this Agency AgLeement and its city Council Resolution and. its Commission Resolution, if any, with the sec't"eta't"y of state of Minnesota, and. 't'equests that a _,.._..:~:__.a-^ -~ .: ~""^,""___'!"'t+-"; """.... ...+' +-"-1'0 u...."'~ "''';'1'''''\.':\1 n........,,....... ~ ,..,.n_ _.... "-^ ",,;;. I.. '-..L'&'.. ""'.... '-'- "'... ...._v "'l;:''''''' - ..........,.. .....~ -...- ."~.'--"'r-- ...-..-... ""''=',-'-'-:Z ""~ ,- issued and 't.eco't"ded by the Sec't'eta't'y of state. \, section 4. Initial Rep't"esentatives. . The name and addresses of the pe''t'sons in~tially appointed ,by the, Commi~sion Resolutions . and the City Council Resolutions to act as the 't"ep-cesentative (referred to he't'ein as . the "Initial Representative" ) of each of the Cities, respectively, in the exercise of thei't" powe't"s as members, are as follows: Initial , City Representatives Add't'ess City of Arlington Acden Kreft PO Box 466 Arlington, MN 5'5307 City of Bl:'ownton Curtis Cal:'rigan 528 2nd St. So, PO Box 238 Brownton, MN 55312 City of Chaska Dave Poko1:"ney One City Hall Plaza Chaska, MN 55318-1962 City of Le Sueur Me't"vin Hentges 228 No. Main Street Le Sueur, MN 56058 City of N01:"th Ron Schule't" 2526 East 7th Ave. St. Paul N01:"th st. Paul, MN 55109 - 3 - to , ... ... . ._ 3~f)1 ~:: , City of Olivia Don Decker 305 East Oak . Olivia,MN 56277 City of Winth~op Louis Melius 305 North Main street Winthrop, MN 55396 Section 5. Selection and Term of Representati ves. Each RepLesentative (which term includes the Initial Representative of each member and. any su.ccessO'l: thereto at the time acting as Representative) shall sel:"ve as the Representative of such City until another Representative shall be appointed by a Conunission Resolution of such City and filed for record with the Board of Di recto't:s. Each member shall be represented by one (l) Representative. In case a Representative shall resign .or shall be incapable or acting as such Repl:"esentative due to death, illn~ss or any other. cause, the Membel:" shall select a successor Repl:"esentative by a Commission Reso1tl't:ion filed fo'!::' 'record with the Board oi Dil:"ectol:"s, but nothing hel:"ein contained shall prohibit the Municipal Power Agency fl:"om exel:"cising any of its powers during .such vacancy and until such successor Repl:"esentative (" '; is selected. " Any membel:" may, by Commissiol) Resolution filed for l:"ecord with the Boa't"d of Dil:"ectol:"s, designate an alte-rnative Repl:"esentative who shall have and be entitled to exel:"cise all rights of the Repl:"esentative of that Membel:" in the event of the death, absence, disability or resignation ~f. the Representative. The Repl:"esentative of each Member shall .cast the numbel:" of votes assigned to that Membel:" in accordance with the formula set fOl:"th . in section 9 (e) hel:"eof. Each Representative of a city becoming a Membel:" of the Municipal. Powet" Agency after the date hereof pursuant to Section 9{A) he-reof, and each successor to such Representative, shall be selected and sh::J.II act as . such Rep1:esEmtative in acco1:da,nce with the. provisions of +-.his section 5. Each vote ot" votes of a Representative, at an annu.al or special meeting., shall be the vote ot" votes as, fOl:" and on behalf of the membet" which he ot" she represents, and such vote or votes shall be deemed conclusively to constitute the vote or votes of. the l:"espective cities as members of the Municipal Powet" Agency f01: all pU1:poses. of the Act, this Agency Ag1:eement and the Bylaws. - 4 - . . - . . . . . . . . ,","- ,............ , . . -- .. 3~()Z --. ... - '. , . Section 6. Initial Boa"Cd of Pi rectc"C s . The Initial Rep"Cesentatives shall ce and shall cJnstitute the initial boat."d of dit."ectot."s (het."ein refet."t."ed to as the "Board of Dit."ectors" and each rnembet." of said Boat."d of Dit."ectoLs is het."l.~in t."e fet."t~ed to as a "Director") of the Municipal Power Agency until the first meetings of the Boat."d of Directot."s and Representatives, at which time the terms of the ini tial Board of Directot."s shall expire and the new Board of Dit."ecto"Cs, seiected in accordance with Section 9(E) he-recf, shall take office. r Section 7. Reqistet."ed.Office. The addr:e.ss of the "Cegiste-red office of the Municipal Powet." Agency is One City Hall Plaza, Chaska, MN 55318-1962. The location of the "CegisteLed office of the Municipal Powet" Agency may be changed by the Board . of Directors upon the filing of a certificate of change of location with the Sect"etci:r:y of State of Minnesota, as provided in Minnesota Statutes, Section 453.53 (5). Section a. Members Not Liable. Neithet." the cities which are Membe-rs of the Municipal powet A~Tency nor the Representatives shall be liable for any of the obligations of the Municipa.l Power Agency. .. section 9. Other Provisions. The information set forth in sections 1. th't'ough 8, inclusive, of this Agency Agreement is the '--, information l:egui't'ed by Section 3, Subdivision 1, Paragraphs (1 ) through (8) , inclusive, of the Act. In addition, Pa't'ag't'aph ( 9) thereof states that an agency agreement -may also include any other p't'ovision for 't'egulating the business of an Agency ot' the conduct of its affai't's which may be agreed by the membe-.: citi,es, - consistent with the Act. In addition to the provisions set forth in Sections 1 througp 8, inclusive, of this Agency Agt'eement, each of the ci ties (and each of thp. ci ties becoming a Membe't' of the Municipal Powe't' Agency after the date he't'eof) does he~eby. ag-.:ee as follows; ( A) Additional Membe't"s. . Any city organi zed and existing under the laws of the state of Minnesota or a city cha't"te't" adopted pursuant thereto, and .authorized by or put'suant to such laws o't" charter to engage in the local distribution and sale of electric ene't"gy, may become a pat'ty to this Agency Agreement and a Hember of the Municipal Power Agency upon the following conditions: (1) The city shall file with the Boa't"d. of Di rector.s a certified copy of a Commission R~solution and, if the city is one in which the Commission is not th~ body charged by law with the general control of the citY'5 gove~nmental affairs, a City Council Resolution whereby the city (1.) an:ree5 to the p't"ovisions of this Agency Agreement and the Bylaws, (ii ) -r:-equests +:0 bGcome a member of the Municipal Powe"'C Agency, ann ( . .. \ appoints an initial ~~~, Repr.esentative. - 5 - ... ..........,......... .......'.... f i f f.. .I / -- 39f;3 -..\ .- I . r (2) No such city shall become a Membe-c of the Municipal Power Agency until (A) its admission is approved at an annual or special meeting of the Rep-cesentative by the a~fi-cmative vote .of (i) two-thirds of all Representatives of then existing Members, each casting one vote, and (ii) two-thi"Cds of the total votes cast by the Representatives, in accordance with the weighted vot;ng fo-cmula described in Section 9 (C) of t.his Agency Agreement, and (B) such city deposits with the Board of Directors or agrees to deposit with the Board of uirectors an amount equal to a share of the costs and expenses incur-ced by the MuniciFal Power Agency and payable from assessments prior to the date of admission of such city as a Membe"C of the Municipal Power Agency, as detennined by the vote of a' majority of the Representatives of then existing Membe-cs, each casting one vote. (3) The Board of Directo-cs shall by "Cesolution detennine whether admission is approved by the required majorities of the Pep"Cesentatives, and, if it so detennines, shall file certified : cc.~ies of its resolution and the Commission Resolution and. the Cit? Council Resolution with the Secretary of State. i4} Upon such filing, the city shall become a Member of the Municipal Po~e~ Agency fcr all purposes of the Act, this Agency ACjreemer.t and 'the Bylaws, and shall have the same rights, duties and obligations hereunder as the Cities constituting the initial membe-cs~ . ( , \ Any ~em~er may withdraw from the Municipal power Agency up~n the, following conditions: (i) the Merobe"C or its Rep-cesentative shall have filed with the Board of Directors and the Secreta"Cy of 'State a certified copy of a Commission Resolution and, if the city is one in which tl~eCommission is not the body charged by law with the general control of the city's governmental affai"Cs; a certified copy of a Ci~y Council Resolution expressing its desire to so withd"Caw, {ii} if the Municipal Power' AgencYi pdo"C to the filing of such Commission Resolution and City Council Resolution, shall have incu"C-ced any obligation payable f"Com assessments in accordance with section 9(1) he"Ceof which obligation matu~es afte"C the'date of such filing, the withdrawing Membe-c shall have paid., or made a"CrangemEmts satisfactory tu the Board of Di"Cecto"Cs to pay, to the Municipal Power Agency its. pLo l:ata pOLtion of such obligation, .dete"Cminedin accordance with section 9(l) hereof, and ( iii) if any obligations of the Municipal ~ower Agency shall be outstanding at the time, no Membe-c shall be permitted .to withd"Caw from the Municipal Powet' Agency, if such withdrawal would reduce the numbe, of Membe"Cs remaining in the Municipal Power Agency to less than two (2). Upon compliance with the above p"Covision, the wit hdrawing c~. shall no longe"C be conside-ced. a Memb~r of the Municipal Power Age..,;: fOL any t'eason 01:' purpose. unde-c tnis Agency Agreement o-c the Bylaws. The wi thd"Cawal of a Memoe"C f"Com the Municipal Powe-c Agency shall not affect any obligations unaer any contt'act between the withdrawing Member and the Municipal PoweT Agency. - 6 - n.........__.. ......-r'.._.........,-,._, ..,......"..,..,....'..:.r...."..... "....,.."......_,_........", ......,.....,;.:.;_.. ...,....."..;'-,...,...,. ,_,., ...,..,n"..._.,.__.".:" _,_."'.",_.__"". .......,.... "',.'"''t'P''.'''',..,,''''~ ........,.;...."...... ..... .._.>....,....."...,.-,-,-.._.. ,.,._..,-.;.,,,.. u.......,.._. ."...........-.... ........,... - .- I I 11fll- '" , ':_HJLt- , Nothing contained in this Agency Ag~eement o~ in the Bylaws shall be const~ued to prohibit any Member f~om (i) execUting one or moxe othe~ agency ag~eements with other cities fo~ the purpose ._ of fonning other Agencies under the Act o~ (ii) exercising the powe~s of an Agency as provided in Minnesota Statutes, Section 453.58. Nothing contained in this Agency Agreement o~ in the Bylaws shall be construed to p~ohibit the Municipal Power Agency from joining an organization or association composed of othe-c Agencies created pursuant to the Act. Any Member which has either defaulted unde-c a contract with the Municipal Power Agency or failed to pay its assessments in acco-cdance with Secti9n 9 (I) hereof, may be expelled from the Municipal Power Agency at an annual or special meeting of the Rep-resentatives by the. affi-cmative vote of ,( a) a majority of all Representatives (including the Rep~esentative or Rep~esentatives : of the defaulting Member), each casting one vote; and (b) a majority of the total votes cast by such Rep-resentatlves, in ,. acco-cdance with the weighted voting fonmula described in Section 9(C) of this Agency Agreement. The expulsion of a Member from the Municipal powe-c Agency shall not. affect any obligations unde-c any cont~act between the expelled Member and the Municipal Powe-r Agency no-c its obligation to pay any moneys previously assessed against such expelled Member. > - (B) Matters. Requiring Membe-cs' App-coval. No action .on any (, i of the following matters shall be unde-rtaken by the Municipal Powe-c Agency except pursuant to a -cesolution adopted by-the Boa-cd of Directors and approved by the Representatives, p-covided that such app-coval of the Representatives may be given by a resolution adopted by the Representatives whi.ch is gene-cal in scope and continuous in nature and may delegate to the Board. of oi -cectors the power to take any and all action reasonably necessary or desi-cable to accomplish the purpose of the -cesolution: (1 ) The issuance of bonds or notes. of the Municipal Power Agency. (2) The executi~n by the 1-1unicipal Power. Agency of any cont~act payable primarily from assessments, when such contract by its terms .will not expi _.> prior to the end of the Fiscal Year in which it is executed. (3) The incurrence by the Municipal Power Agency of arty financial obligation in excess of that which is budgeted for the Fiscal Year in which it is incuLLed. (4) _ The. adoption and amendment of an annual operating budget, if such budget requires thE? assessment. of exper.sE?s to Members, as provided in Section 9{I) of this Agency Agreement. (5) The admission 01: E?xpulsion of Membe1:s, as p1:ovided in Section 9(A) of this Agency Agreement. - 7 - . h. ...." _.'."V.".'" " .. """"'_"".. .. ...'.... ...,,_._........,. "'''. ............".... "........ _""'_'~','"'.'''''..''' .,.....,,'.... ...,...."..,..... '."'" ..... ..,............. .'......., . ..... ..,.;.. '. .,. .... ..,'" .'. ......:....../,.".........".,.,...."..."...../ , ,.. . ".,. .... .. '. -'.'.' ... , ._, .13f;5' ; ) { 6 } The amendment to OT: teT:mination. of this Agency .AgT:eement, as p'Lovided in Sections 9 (L) and 9 ( M) of this Agency Ag'l:eement. (7) The adoption and amendment of the Bylaws, as p"Covided in Section 9(L) of this Agency Ag'l:eement. (8) The election, removal and compensation of Di'l:ecto'l:s, as p'Lovided in Section 9(E) of this Agency Agreement. Each of the matters set forth above shall ~equire the aPP'l:oval of the majo'Lity of the votes cast by the Rep'l:esentatives ip_ accordance with the weighted voting fo"Cmula desc"Cibed in section 9 (C) he'Leof, except as to those matters for which other p"Covisions of this Agency Ag"Ceement require a greater pe'Lcentage, or which specify that in substitution thereof. Or in addition thereto, such matte"Cs shall be decided by the Representatives each : casting one vote. The Board of Directors and the Rep~esentatives shall take any and all action which may be required under any contract Or ag'Leement to which the M~.icipal Powe'L Agency is bound, including any bond resolution, trust indenture 0'1: simi1a'l: financing agreement ~ but nothing contained in this section shall be construed to mean that any Member Or Representative is liable fo'L /'.. any of the obligations of the Municipal Power Agency. I . \ . (C) Vot.ing. Except as othe'CWise expressly povided in this Agency Agreement, ~ach action at any meeting of the Representatives shall be taken by a majority of the votes cast on the ques'j:ion by the Repre.sentatives present, each exercisi!lg a number of votes allocated to the Membe'L he 0'1: she represents. as follows (referred to herein as a "weighted vote"): (1) one vote; plus (2) . one additional vote for each tull 5 ~OOO megawatt hours of electric ene"Cgy pu"Cchased f"Com the Agency by the Membe"C du"Cing such Member's most "Cecent fiscal year; plus (3) if the '\Tt,.cesallocated to any Membe"C purs.u? ..t to clauses (1 ) , and ( 2) would equal or exceed the total numbe"C of 'votes allocated to all ot.her Members, its allocat.ion of votes shall be reduced to one vcite. less than those allocated to all othe.-c Members. The allocaticn of votes to. each membe-c shall be made in acco-cdance with the fo-cmula outlined above as soon as p-cacticable afte-c the beginning of each Fiscal Yea-c. The allocation shall be . made by the Secreta-cy of the Municipal .powe-c Agency based upon a ce~tificate of the Commission or Rep~esentative of the Member., and such ~116cation shall be verified by the Boa-cd of Dir.ecto-cs. Each such allocation shall r.emain p.ffective until such time: as a new - 8 - ._.....,_......... .... .... ...... ..,....,." ,:..._..... .......,..__ '," ... ......... ......". "..... .._.._..,.....'". .'_'" _'. ..... . ....... . ". ..,. _ .............. ...., '", ....,... '. ",. .,...,.....,...,_.__",.,......,.....,....", n. ..,'.... .... ".'_,."" -. ~C.l('f' .J.":J. , } allocation is made for the next Fiscal Year. (D) Meetings. Initial meetings of the Representatives and of the Board of Directors 'shall be held upon the call of the Directors, after notice, for the pu~pose of determining the votes of Representatives as provided in Section 9 (C) hereof, adopting Bylaws, electing Directors and officers, adopting an initi~ operating budget fo'!: the remainder of the Fiscr,~, Yea'!:, ana transacting any other business that may come befo~e~he meetings.'~ The Bylaws shall be proposed by the Board of Directors and shall '-" become effective when approved by iesolution adopted by the ''', affi rmati ve vote of ( i ) two-thirds of the Representati ves, each ~. casting one vote, and (ii ) two-thi1:ds of the votes cast by the " Repiesentatives in acco~dance 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 o~ in a resolution adopted by the Rep'!:esentatives, at which any ,business may be trans.acted, and special meeti1~.gs upon such call and notic:e and at such times and places as may be provided by or pu'!:suant ';:0 the Bylaws or in a resolution adopt.?d by the Re.presentativ.~s . (E) Boa"cd of Di.ectoL's. The powers qf. the Municipal. PoweL' Agency shall be exercised by the BoaL'd of DiLectors in which shall be vested all of the powers conferred on the Municipal pO'ft'er \ Agency by the Act and this Agency Agreement other than those. I powers described in Section 9 (B) he'reof which shall require the approval of the Representa"cJves.. The initial Board of Directors is set forth in Section 6 h'~;reof. Only Representatives shall be eligible fOL election to the Board of Directors. Compens.ation for Di recto'!:"s shall be set by the Representati vee. Di r.ecl:o"Cs shall discharge their duties in good f~ith, and with that diligence and care which an ordinary prudent pe.r.son in a like position would exercise under similar circumstances. Actions by the BOC:ird of DirectoLs may be taken upon the vote of a majority of the Directo'!:s present and voting at any meeting at which a quo~um is present. Di'!:ectors shall not cast ."weighted votes" and each Director shall cast but one vote. until the first meeti ngs of the Boa ro of Directors and Representatives, the Initial Representatives shall constitute th~ Board . of Directors. At such initial meeting of the Representatives, the new Di '!:ec'tors shall be selected as provided below, and, at the time of selection of such new Directors, t~e terms of office of the Initial Representatives as Directors shall cease and such new Directors shall take office. If the Municipal power 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 membe<s, the Board of Directors shaIJ1 consist of. seven (7) .Dir.ectors, appointed 0< elected as follows: (1) The Representatives of the three membe<s which have the gr.eatest number. of votes allocated to them rursuanr. to Section - 9 - ...,..,....,....,.. ......"..-.. ........,......,_..." .......,.., ........., ..,.,...,-,.,..,...... ....-.... ....,......,....... .....-......,..".,........,. ....' ,......... ""'...' f ' .. . I 1 , ! ! t 1 ! ~ ..' a~{;7 9(C} hereof shall automati~ally bp. n~rectors unless a~d until such time as another Member is allocated a greatet" number of votes than anyone of the th"l:ee stich Dlrectors, at which time the Representative of such Membe'C sr-al1 eUi':omatically -cep1ace such Dire.ctor on the. Board of I)irectoT.s. 'Ii.e other fou"I: Di't"ectors shall be elected as provided in subseci-..i.oL (2) hereof. (2) Four of the . Dir",~ctors. shall be elected by the Representatives. All Representativ€:s, o'H.er. than thos~ em:itled automaticaliy to be Di"l:ectors, shall be entitled to vot~ for such Directors. Weighted voting shall nn+_ .3.:"lPl.Y to the l?:lecticn of Di rectors and in such election t:a.ch ST'.ch Rl::.:presei1tatlv.~ s.hall be entitled to the same vote o~ VOTes as aJ 1 utnet' Rept'I;$:;..:ltl:!.tives. One of the elected Di"l:ec'tot's shan havA' a i.:~~tm of one (':) year; one 'of the elected Directors shall hav~ a tp.~ of two ;2} years; and two of the elected Di.recto'l:s shall ha~Te a te"l:m of three (3) years, pr.ovided that such terms shall e~pi~~ at the annual meeting of the Rep"l:esentati ves in the yea 1: in whi:::h the t.e t"n, is to expire. Director(s} shall be elected at the annual meeting of the Representatives in each yea 1:' to "I:eplc; ~e ~ha i: ni rector (s) whose tenn has expired, and each Di recto'!: subs~~quertly elected shall have a te~ of thLwe (3) years. Any Di1:ecto'!: whose term has expi .ed but who has not been 'l:ep1aced by another' Dh:ecto't' shall continue as such Directo'C until (i so replaced. If the term of a Representative who is also a DiLector should expire or should such .Representlltive resign OL become iLcapable of acting, for. any reason, the suc~essor to such Representative, appointed by the Member in accordance wit~ Sec~ion 5 hereof, shall assume the vacancy on the BoaLd of Directors CLeated thereby. Any Representative who has been elected to the Board of Di'l:ectors in accordance with subsection (2) above, and who, dULing the tenm thereof, shall be entitled to automatic Lepresenta~ion on the SoaLd of Direct0Ts, pursuant .to subsection {I} hereof, shall Lemain a Director, and the vacancy... caused by the, automatic resignation of the other DiLecto't shall be filled by a RepLesentative elected as provided in subsection (2) above, whose term shall expire on the date on which the te.m (1<- the Directo't previously elected would have expired. The Board of D1 Tectors shall elect, annual.l v , ~t'om thei L number, a Chairman, a Vice-Chairman, a secretary and a Tc~asurer. Di'Lectors who j',ave been e.lected may be removed fa>:" lse a~. a '. special meeting of the Representatives called for that ~u'tpose by the affirmative vote of (i) two-thi-rds of the Rep.ese:ntativps, E~ach casting one vote, and (ii) two-thit"ds of the votes cast by the Representatives in accordance with the weighted voting formula - 10 - ....._,,~ __. .'_n._ ., . '" ." '...,.... ..................._... ,...'." .__.......__._..,._ n.,,,..__n ... ...._.,...~ hu"'__,''-u",''~.'''_'~'__'''''''''' ~"'_'_"""_' . ._.._.,..,....,.~^.....~...,,__ ...... "".._.... ... ........._..,.._....y...._....._....... ...... ....,. ......... '. ~.)<}'" t.:. 'j..J" F) described in Section 9(C) hereof. Any Director elected pursuant to subsection (2) above and removed for cause shall be 't'eplaced by a Rep't'esentative elected as provided in :;ubsection(2) above, and the tenn of such new Director shall' expi re on the date on which the removed Director's term would havp. expired. Any Directol:' who is entitled to automatic representation on the Boal:'d ot Dil:'ectol:'s pU1:suant to subsection (1) above and is l:'emoved fol:' cause shall be. 't'eplaced by a Rep't'esentative elected as p't'ovid~d in subsec~ion (1) above, who shall remain a Di't'ectot" until the Member selects a sUCcessol:' Representative to 't'eplace such t"emoved Dit"ectol:', at which time such successol:' Rept"esentati ve shall replace such new Directot". Meetings of the Board of Directors shall be held in accordance ~ith.the pt"ovisions of the Bylaws. (F) Bylaws. The Boal:'d of Di't'ecto't's shall 't'ecommend and the Repl:'esentatives shall adopt Bylaws fo't' the conduct of the affairs of the Munici~al powet Agency. The Bylaws shall state the powers delegated to .the Chair.man, Vice-Chairman,. Secretat"y and Treasurer. The Bylaws may establish the office of .P't'e~ident to be filled by an employee ~d sucb othe't' offices as it deems necessary for the conduct of the affai rs of the Muni cipal . Power Agency, and the Board of Directors by '!:"esolutionmay e.stablish the duties -and compensation of such offices. (e . , , (G) Powers. Unless rest~icted by the Bylaws, by resolution adopted by a majority of the votes cast by the Rep~esentatives or by contract, the Municipal Power Agency may exe~cise any and all of the powers, rights and p'!:"ivilages granted to Agencies undel:' the Act. (H} Rest't'ictions on Powers. The Municipal Power Agency shall be subjec~ to the following restrictions: (i) it shall engage only in activities which are pe't'mitted by the Act; (ii) its intome sh~ll not in: ~2 to any private persons or corporations; (iii) if the Municipal Power Agency shall be dissolved after payment of all indebtedness, all of its assets shall be distributed to its Members; and (iv.) no Member shall be indi\iidually liable for any indebtedness incurred by the Municipal PrJ~"er Agency n01: fo'!:" the indebtedness of any other Membe'C", nor liable for any purpose .in excess of the assessments made against that Member, determined as provided in Section i ( I ). - - 11 - . "_'." ,....~ _." ... . ..., ....,..,..,~'... .' ...,...... _,' .. ." ,.... ,... .._.^.. .......,..... ',,", '.... ."" ,.._.....~"... ....._..__.,...'.'.M..... _ .. '. ," _.._',... .. '"""" ~ "_.' "., _,~,~... ."" ..... . '., ..,""...,...... _,0." '~>'.m" . . .. ...."... ,,,...'_....~.~. _.....,.._............. ......" "." _,,".."." , . , (I) Annual Budqet; Assessments. The Boa'l:d of sha;l.1 p'l:epa-re an annual operating budget for each Fiscal Yei:::.::.:'. ... The ope!'ating budget shall include estimated expenditu!'es fo'l: ~.::>.. ....... .. ',. Fiscal Year less anticipated revenue to be de-cived from {:';::<:.':?/~... Municipal Powe-c Agency's p-coperties, operations. and contra{i'~';' .<. ... during such Fiscal Year not othe'l:wise app'l"op-ciated to debt of { . ,',c..;:':" Municipal Powe'l: Agency. The e!Stimated expenditu'l:es shall inch;:...::.,. the expenses to be incu-cred in the ope'l:ation and administ-cationi;;;S<(:.:!::<.. the Municipal Po",er Agency,. including the sala'l:ies of employ~'}~;t' '~: .. and the payment of compensation fo!' a'l:chitectu'l:al, enginee't'ii::::':;'~; ..'., . .. .' .legal, fiscal and simila-c services (unless such compensation coe;';:.;, . witt-in the confines of clause (iv) below)) , and amounts ;:..'X" ,',; >>. contingencies and rese'l:ves but shall not. include (i) the p't'incip'ai'.m i...".".;. , .. . of, Ledemp'~ion premium Ot' inte't'esc: on bonds 0'1:' notes of the Municipal Power Agency or any of its Members under any contract fo-r the gene'l:'ation, t~.ansmission, distribution, purchase, sale o't' othe't disposition of energy, (ill) the operation and maintenance costs 'l:elating to any real or personal p'l:operty owned or leased by the Municipal Power Agency o't' in which it may have an 1nterest fo'l: the generation, transmission, dist'l:ibution, purchase, sale or othe't' disposition of ene'l:gy, o't' (iv) any othe'l: costs, expenses ot:' debts of the Municipal power Agency which are generally paid f'l:om anticipated 't'evenue of the Municipal Powe'l: Agency, whethe't' o't' not so paid. The annual ope-cating budget may but need not include any ( i moneys due and owed by the Municipal Powe'l: Agency to any.,thi-rd , party. Estimated revenue shall include any and all moneys to be \ derived by the Municipal Powe'l: Agency from ~ny source which is in excess of that -cequired to pay those items set forth in clauses (i), (ii), (iii), and (iv) above. The Boa'l:d of Directo't's sha:l ,submit the p'l:oposed annual ope'l:ating budget and p't'oposed schedule of 'l:ates, together with a proposed schedule of assessment payment dates, to the Re'presentatives at the annual meeting O'l: at a special meeting called fo'l: that pu-cpose. The annual operating budget may be adupted by a majo'l:ity of the. votes cast by the Rep't'esentatives, each casting one vote, and a ma jor i t Y of the votes cast by the Representatives in acco't'dance with the weighted voting fOLrnula set forth in Section 9(C) he-ceof, at such meeting, including any ac!journedsession thereof. Upon apP'l:oval of the ann~al ope-cai:ing budget, the net amount of estimated expenditu't'es the'C'ein in excess of the estimated -cevenues therein shall be deemed assessed against the Members. The amount assessed against each Member shall be in the same p't'opo'l:tion as the Member I s weighted vote bea-rs to the aggregate amount of weighted votes capable of being cast by all Members. Upon the approval of the annual operating budget by the Rep-resentatives, the amount assessed against each Membe't' shall berome 'an obligation of the Membe-r, enfo-rceable, except as otherwise p-rovided in this Section 9, as a cont'C'act -right af the Municipal Power Agency. Such assessments shall be paid in accordance with the schedule p-repared by the Boa~1 0f ci'C'ecto-rs and submitted to the Represent-ati yes fo-r the! r app-roval with the - 12 - . .._. ._. _. ". ....._~ ...~.,. . ..., '....,.. .;_. ~ ........., ':..... '. ,.,.. . .. .........._ . ..,.. .. .\. ... ... '. . .' ','"'. ".' ......". ._", _'.' . . ... ,.. " .. . . .u.. .0 . .3~70 annual ope~ating budget. Any Member voti~g against the proposed annual operating budget and which does not wish to be assessed, must withd-raw f-rom the Municipal Power Agency. within sixty (60) days of the date of adoption of the annual ope-ra~ing budget by the Rep-resentatives, in acco-rdance with the p-rocedu-re set fo-rth in section 9 (A) of this Agency Ag-reement. Any such withd~awing Membe-r shal~ not be ~iable fo-r the assessment p-reviously made, but shall be liable fo-r the amounts, if any, calculated in acco-rdance with Section 9{A). If any membe-r withd-raws f~om the Municipal powe-r Agency within sixty (60) days of the adoption of the annual ope-rating budget, the Boa-rd of Di-recto-rs shall p-ropose anothe~ annual ope-rating budget which sha11 be appLoved ~nd assessed as set fo-rth above. Any amendment to the annual ope-rating budget shall be proposed by the Boa-rd of Di -recto-rs and app-roved by the Representatives in the same manneL as the adoption of the annual ope-rating budget. No pe~son o-r Membe-r shall have any -right o-r cause of action against any Membe-r not promptly paying any pa-rt of all of its assessment, but such right o-r cause of action shall be vested solely in, and may be exercised only by, the Municipal Power Agency, which may enfo~ce the same as a contLact right against the ~. non-paying Membe-r. BefoLe exe-rcising any such -rights, the , Municipal Powe-r Agency shall se-rve notice of.such .non-payment with the Representati ve oo-r the Commission of the non-paying Member, which notice shall state the amount of the unpaid assessment, and demand payment therefor. If such Membe-r has not paid the deficiency in full within thi-rty (30) days f-rom the date such - notice 'was .se-rved, the .Municipal powe-r Agency may take any enfo-rcement action deemed app-rop-riate by the Boa-rdof Di-rectors. Subject to the ?-rcvisions of any cont-ract by which the Municipal powe-r ~gency is bound to the cont~ary, membe-rs shall be -reimbu-rsed for assessments paid from excess Levenues of the Municipal power Agency in the mnnne'!." prescribed by the Boa-rd of DiLecto-rs. .. Any Membe-r which faD s to pay when due its assessments, and any Member which bLeaches any contract with the Municipal Power Agency, may be excluded f-rom membership in the Municipal Power Agency as p-rovided in Bection 9(P of this Agency Agreement. Such excluded Member shall continue to be liable for the unpaid assessments or fo-c its obligations unde-c the cont-cact with the Municipal Power Agency. (J) Quorum. A quo-rum for a meet ing of the Representatives is (i) a majority of the total number of Rep-cesentatives, and (ii) that numbe-r of Representatives which may, by weightE'.dvoting, cast a major.ity of the agg-cegate amount of votes capable of beir.g cast by all Repr.esentatives. - 13 - .. .-.' , .... .......---........,.'.,... t.. '.. . .... ;j~:f71. . A quo~um fOL a meeting of the BoaLd of Directors is a majority of the Ditectors. Except where otherwise specifically. stated in this Agency Agreement. or in the Bylaws, any action which 't"equi't"es .the affi-rmative vote of E:. percentage of Rep't"esentatives o't" Directors o't" a percentage of votes cast by the Representatives shall be construed to be that pe'l:centage of. Representatives OL Di'l:ectors pi:'esent and voting. o't" that pe'l:centage of votes capable of being cast by such Rep'l:esentati ves p'l:esent and voting at a meeting at which a quorum is p'l:asent, and no~ ~ha~ pe~centage of a11 .Rep'l:esentatives at' Di'l:ecto:cs 0'1: that - percentage of all votes capable of being cast by all Representatives. (K) Fiscal Year. Unless otherwise provided in the Bylaws or in a 'l:esolution adopted by the Boa-rd of Di't"ecto'l:s, the. Fiscal Yea-r of the Municipal Power Agency shall commence January I and end December 31. (L) Amendments to this Agency Agreement and Bylaws. This Agency. Ag't"eement may only be amended at a t'egulat'. or special meeting of the Rep't"esentatives for which notice stating the pUt'p~se shall be given to each. Representative and any such /. ') amendment shall only become effective when (a) approved by two~ ( ) thirds of all of the Repres~ntatives, each casting one vote, (b) app'l:oved by . two-thirds of the total numbet' of votes capable of being cast y all of the Representatives, in accordance with the weighted votingfonnu1a desct'ibed in Section 9(C) he'l:eof, (c) approved and concUl:red in by Commission Resolutions and City Council Resel utions of two-thi'l:ds of all of the Membet's,. and (d) when such amendment, together with ce't"tified copies of such Commission Resolutions and such City Council Resolutions a'l:e filed with the Secretary of State. The Bylaws may only be adopted and amended by (a) the affi'l:mative vote of two-thi'l:ds of the Representatives present and .voting, and (b) the affirmative vote of two-thirds .of the total .- amount of votes cast by the Representatives in weighted voting, at an annual or special meeting. (1-1) Termination. This .Agency Ag'l:eement may'be teTminated by (a) the "Tote of tWb-thi Tds of all RepTesentati ves, each casting one vote, and (b) the vote of two-thirds of the total amount of t~e votes cast by the RepTesentatives in weighted voting at a regular meeting or a meeting specially called for that pUTpose, ... but not until afteT all debts. of the Municipal Power Agency have been paid; and only upon the appLoval of same by two-thi-C:QS of the membe'Cs, as evidenced by Commission Resolutions and City Council Resolutions filed with the Boa."("d of Directors. Thereafter, the BoaTd of Directors shall liquidate the business of the Municipal PoweL Agency as expeditiously as possible, distribute the net - 14 - .. .-- . ...... .. ....~.... .. ... ..... ..-.. .. ..-, .. -".. . - '. . . - .. . t.: '7. ;1972 proceeds to the Members in the ratio that the total assessments made against each of them bears to the ~um of the total assessments made against all 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; (~s 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 s~ch city's gov- ernmental affairs), and have caused this AGENCY AGREEMENT to be filed with the Secretary of State o~ Minnesota requesting therefrom a Certificate of Incorpor- ation, all as of the day and year first written above. , } (Sea 1) Attest:~~ ~ . By 'V ~ . Ar en ru je . City Clerk/Treasurer : . -15- ...... . \'t . ...~ ...... .... . ." .. ,..- ./ -.. . .. ~l/I4 ~ ., ~ J.am Sa erg, Ma r p ~ By trf'\ -{ Ron Schuler, Representative (SEAL) Attest~y ilt; Mt: .. .' : Robert Gatti, City Manager BY~.~~ ohn Stumpf, May . '.. i , i BY~~ Don Decker, RepTesentative j I ( SEAL) j . . ~ ~ Attest: ,. Byfr~J~~ ~ , I. ; i Donald W. tede-cick I City Administ~ato~ \ ~ By ~..y~~ Louis Me ~us, Mayot (SEAL) Attest: By i , ./ '" " ,. \ . . . . " CITY OF BROWN TON ( SEAL ) Attest: By ~~~~~~ C . tnia. Lindeman City Clerk . , By ( SEAL) < : , . . ; i ! , .,oj ,CITY OF LE SUEUR ..' BY~7' " , Jo King, Mayor . B..~'~ Y . .. Mervin Hentge~, Representat~ve ( SEAL ) : Attest: , By~~ 1,,",'.Qo~ t ( Kathleen M. Johannsen i City Clerk. ~JtIt- ,~ w~ ~am Sa erg, Ma r () j?J~'1 By K'n. Ron Schuler, Representative (SEAL) Attest: /J / ",........... .... ,"" '" . . ". co /Jo lee n~ / \. f\ \ \\ 1993 - 1 8f>l;lt - .::096 \' K1:HNE80'1'A MUNICIPAL POWER AGENCY (THE "AGENCY") ~u::S~t.tJTION OF THE REPRESENTATIVES OF THE AGENCY WHEREAS 1 the Board of Directors has recommended three ..amendments to the Agency Agre.ement 1 and WHEREAS, .the.representatives of the Agency have discussed ~nd studied the proposed amendmen~s to the Agency Agreement 'and .are collectivelY of the opinion that the proposed changes .to the Agency Agreement.are necessary and appropriate and will ~acilitate the goal of the Agency to provide economic and reliQbl~ power to its members. NOW THEREFOitESl: IT RESOLVED by the Representatives of the Minnesota Municipal Power Agency: . 1. That the Agency Agreement be amend~d by changing Sections 9 (B), 9 (E) and 9 (M) to read as follows.: !: ) '\:' Section 9(B) of the Agency Agreement is he1!eby amended to yead as follows: (B) Mattel's .ReQ1.!irinQ Mertlbe-rs t Approval. No action on any of the following matters shal i be ullde!"ta~en by the Municioal Power:. Agency except pUl!suant' to a reso' ution adopted by the Bo"ard of Directors and approved by the Representatives, provided that such app-rpva1 of the Representatives may be given byaresolution adopted by th~ R.epre~e.ntatives .which is genera.' . in scope and .. cont.imious in natUl!e .and may del~gate to the -Board of Directors the power to tak,e any and a" ~.cti'on reas'onab1 y necessary or desirable~to accomplish ~he purpose of the resoiution: . (l) The issu~nce of bonds or not:e~ of tr~ ~hl!'lici?a: f'OwE::t' Agpn~y. . (2) The execution by the. Municipa' Power Agency of any contract payabl e primari'y fronl assessments, when such contract by it~ te~ms wi'1 not expire p~~or to the end of the Fisca' Year in which it is executed. (3) The incurrence by the Municipa 1 Power Agency of any financi-=ll obligation ~n excess o.f that which is budgeted for the ~isca' Year~in which.it is incurred. (4) The adoption and amendment of an annua' operating budg~t, ~~__~~e~~~--~e~~~~e~-~-a~~e~~men~-~-e~pen~e~-~ Me~ee~6T as provi~ed in Sec~ion 9(1) of this Agency Agreeme~t. .,. u "...... .:J099 (5) The admission or expul sion of Membe!'s, as provided in Section 9(A) of this Agency Agreement. ( 6.> The amendment to or tet-minat-ion of this Agency Ag~eement, as provided in Sections 9(L) and 9(M) of this Agency Agreement. (7) The adoption and amendment of the Bylaws, as provided in Sectiqn 9(L) of this Agency Agreemept.. (8) The election, r~moval and compensation of Directors, as provided in Section 9(E) of this Agency .Agreement. Each of the. matters set forth above shal1 'require the approval of the majority of the votes cast by the Representatives in accordance.with the weighted voting formula described in Section 9 (e) hereof, except as to those -.matters. fo'r which othe'r . provis.ions of this AgOency Ag.reement 'require a greater percentage, or which specify that in substit~tion thereof or in addition the-r:eto, such matters shall be decided. by the Representat~ves each casting one vote. - ) The Board of Directors and ~he .Repre~entatives shall take any and ~"acti~n which may be ~~quired under any" contract or agreement to which the Municipal Power Agency is bound, including any bond resol ution,. trust indentut:e or simi1 ar financing ag~eement~ .but nothipg contained in this section shail be eonst~ued to mean tha~ ariy Member br Representative is liable for a~y of the "obligations of the Municipal Power Agency. section geE) of the .Ag~ncy Agreement is her~by amanded to ~ead as fo 1 lows: .. . tEl Board of. Directo't's.. The powets of the Municipal Power Agency shall be exe~cised by the Bocrd of birectors in which shall be vested a11 of the powers confer"t'ed on the Municipal Powel: Agency by the ..Act and "this ~g~ncy Agreement other than those .powers desc!'ibed. in Section 9(B} hereof which sha"_ require the approva' Lf the ~~pre~enta~ives. ~he i~itia' Board of Directors is set forth ilj S~ction. 6 hereof.. Only Representatives shall be e1igib1e for election fo the Boa"t'd of birectors. Compen~ation for Di !'ectors sha" b.e set by the R~presentati ves. Di rectors .shal' . dis.charge their duties in good fait.h, 'and with that di 1 igence and" ca i"E: which an. ot'dinary prud ent person in a , ike position wou'd exercise under si.mi' at' ci rcumstances. Actions Oy the Board of Oi rectors may be taken upon the vote of a majo.~ity of the oi rectors pres.ent a.nd voting at any: meeting" at which a quorum is present. Directors shall. hbt cast. "~eighted votes" and. each Di~ector sha" cast but one vote. ". -'..' .." ". ...'.;.,...... '. "....,... "..... ..... ....,.... -- j 3100 Unti' the first mee~ings of the Board of Directors and Rep1!'esentatives, the Initia' Repl'esentatives sha" 'constitute the Board of Di1!'ectol's. At such initia' meeting of the _ Rep1!'esentati ves, the new Di 1!'ectors sha" be se' ected as provided below, and, at the ti.me of se'ection.of such new Directors, the terms of office of the Initia' Representatives as Di1!'ectors shall cease and such new Directors sha" take office. If the Municipal Powe~ Agency has ~ eight members or 1 ess, the Boat'd of Directot's sha.11 . con.sist .of th.e. Repres.entatives from each of the membel's. If.the Municipal Power Agency has more than S.VQ~ eight membe1!'s, the Boar~ of Directors shall consist of seven (7) Directors, appointed or ele7ted as fol'ows: (1) The Representatives of the thr~~ m~rnbers which have the greatest number of votes al'ocated to them pursuant to Section 9(e.) he1!'eof sha" automatica"y be Dire.ctot"s unless arid until such time,as another Member is allocated a greater number of votes than anyone of the three such Directo1!'s, at which time the Rep1te.sentative of such Member shal' automatically replace such Di rector on the Boa1td of . Di rectors. The. other .four Directors i i sha 11 be e1 ected as provided in subsection <.2) hereof. \, .. .' . (2) F.our of the Diiectors shall be el ected by the Repres.~ntatives,.. .An . Representatives, other than those entit' ed automatically to be Di1!'ectors, shal' be entitled.to vote for such Di rectol's. ~eighted . voting sha" not app' y to the el ection of Directors and in. such e' ection .each such Repr.esentative sha' 1 be entitled. to the same vote or vo~es a~ a" other Representatives. One of the elected Dir~ctors sha" have a ter~ of one (1) year; one of . the'..e'e.cted Directo'l:s shan .have a tenn of two (2) years: and two of the e' ected Pi'rectors shan have a term of thre.e (3) .. yeat's, pl!"ovided that such terms.. shal.' expire at the annual meeting of the Representatives in the year in which the term is to expire. Dire~tor(s) .sha" be ~'acted at. the annual meeting of the Representativ'es in each year to repl a-::e that ni rector (s) whose term has expired, ana each Director subseq\;ent.1y elected sha" have a term of three (3) years. Any Di rectOl!" whose. term.. has' expired but who has not been replaced by another Director sha" contin~E as such Director until so replaced. .. If the term of a Representative who is also a uirector should expire or should such Representative resign o~ become incapable of acting for any reason, the successor to su~h Representative, appointed by the Member in ac~ora~nce with Section 5 hereof, shall assum: the vacancy on the Board of Directors created thereby. . """"":,;,:,". ',";T;'.l:;~""' '.. .:....1.1...; 1:'.:"":'-"'.';7;WO;.:".:,,:."', ;',1"1;'."'., '"11'r~'IW;;:;; ;.",,:';':' ':..1.....1"..; ,W;;":;,,I:,;"":I"I'!:':~ ',~:':'-~':,:,:;~,:!:;';:';ri"i.\-i ..,.."':','1 .,...,....;~,.;;:'.,.:';;':'.;;'TI"I:I"I..;:.. .......:~ ','1,' . , .. . ,','; ;""',",";',::r':~!'.:':-:~ ,.'T;:r:.,:'.;'....i;;.;,~.,,:;,':'r..:'''~:,;n::..''';o:;;T,':1;,;;;"~.;'~';"" .,:',:;Z,,:':,", :;;\;1,';,'''';';;;;';,.. ....., . n' . - _.':: .~.-:;;;':. ~.:: '. ':' , . ...... , 1 :1101- \ Any Repres.entative who has been e'ected to the Board c: , Directol:"s in accordance with subsection (2), ahove, and who, d\Jrinq the tel:"m thereof, sha" be entitled to automatic rep~esentation on the Board of, Directors, .pu:-suant to subsection (l) hereof, shal' remain a Directot', arid the vacancy caused by the automatic resignation, of the otherD1rector shall be fi,ied by a Rep~esentative elected as provided in subsection (2) above, whose te'rrn sha' '\ exp; t'e on the date on which the te:~m of the Director previously elected would have expired. The. Boa'rd of Directors shai, el ect, annual' y, from thei r number, a Chairman, a Vice-Chairman, a Sec'retary and a Treasurer. Ci'rectors who have :been e'ected may be removed for C3use at a special meeting of the . Represen.tatives ca"ed for that purpose by the aff i rmati ve vote c.f (i j t.wo-thi rds of the Rep'resent:ati ves, each casting one vote. and (ii) two-.i:hirdsof the votes cast by the Rep'resentatives in accordance with the weighted voting formula described in Section 9{C) hereof. Any Director el ected pursuant to subsection (2) above and removed for cause sha" be ~eplaced by. ' a Representative elected as provided in subsection (2) above, and the term of such new Director shall expire on the date on which the 'removed Di,recto'r's te'rm. would have expired. Any Di"n?~ctor w.ho is ~ntitled to autom~tic representation on the Board of. Di'rectors pursuant to subsection (l) ab0ve .and. is. removed for ~ause sha.' 1 be " . rep'aced.by a Repres~ntative ~lected as.provided in subsection (1) ~ / above, who sha)1 remain a Director until 'the Member selects a . succ~ssor Representative.: toq. repl ~ce. such. removed Director, at which time such. successor Re.presentati,ve. shan.. 'rep' ace such new. Director. .Meetings of the Board of Directors shall be he'd .in accordance with the provisions .of the BY'aws. Section 9{H) .of the 'Agency Agreement is hereby amended to read as fon ows. .CM) Termination. This Agency Agr.eement may be terminated by (a) the vote of two-thircis of a". Representatives,. each casting one vote, and (.b) t.he .vote of two-thirds of t,he total amount of the votes cast by the Repres~nt~tives .in weighted voting at a regular meeting or a meeting specia"y. caned for that purpose, but not lInti 1 af tet' a l' .dehts of the Municipa' Powe-:- Agency have been paid: and 0nly upon the approval of same by two-thirds of the m€:rr:bers, as evidence.d by Commission Resol utions and City Counci 1 Reso1ptions filed .with the Board 'of Dit'ectors. Thereafter, the Board of Directors shal' 'iquidate the business of ,thE. Municipa' Power Agency as expeditious'y as possible, distribute.the net proceeds to the Members in .the ratio that the tota' power and en2rgy purchased from the Agency by each of them ~~ -.,.~a~Fl5-&-.e.a~-~f--t'fl.em'" be"1r::; to the sum of the tota' power and energy plHchased f rom the Ag~ncy by a~5e~~PP1el'l'e!' - mod~- ~-nst all of them, and file notice of such termination, together with such commission R2so~ution::. and City Cqunci' Resolutions, with the secr~tary of Stat~. ...-... .... - ..._....~ -.": . - ~.;.:..".,'". . .... _.~;.;'~:'.~..:.~....:.~. :-,::-; : .......-::.~;-': . ~':'... ..-...... .... ::""'.' ..... . ... __', . :':'.-;' ;_.....". .... .~:.._".,:_ .. n. ...-.... ".",~."..... -.:....... . .. ': 'r :. . ,,-;'. ~';"~'.' .... .....- .. - a1.02 2. That each Member 'be provided with a proposed resolution of appr~val and concurrence to be adopted by the Member's city council. 3. .That this resolution, together with the concurring resolutions of the City.Councils of Members be filed with the Secretary of state of the state of Minnesota. FOR ADOPTION: Anoka." Arlin~ton. Chas~. Le Sut..om'. ~. St. PaUl. . . Olivia, lfu1throti. . (BrOOtoil absent) . AGAINST' ADOPTION: ~one . .. . Adopted and passed this 3rd , 1993. - ATI'F'.ST : ( (Z~,~di '1.' 1 , f~~l.v~~.& 'L___ _ _ . Secretary 2004 - 1 MINNESOTA MUNICIPAL POWER AGENCY (THE "AGENCY") RESOLUTION OF THE REPRESENTATIVES OF THE AGENCY WHEREAS, the Board of Directors has recommended two amendments to the Agency Agreement, and WHEREAS, The Representatives of the Agency have discussed and studied the proposed amendments to the Agency Agreement and are collectively of the opinion that the proposed changes to the Agency Agreement are necessary and appropriate and will facilitate the goal of the Agency to provide economic and reliable power to its members. NOW THEREFORE BE IT RESOLVED by the Representatives of the Minnesota Municipal Power Agency: 1. That the Agency Agreement be amended by changing Sections 9(A)(2) and 9(E) to read as follows: Section 9(A)(2) of the Agency Agreement is hereby amended to read as follows: 9(A)(2). No such city shall become 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 (i) two- thirds of all Representatives of then existing Members, each casting one vote, and (ii) two-thirds of the 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 a New Member Fee in an amount equal to 3 sh3re of the costs 3nd expenses incurred by the Municip31 Pm.ver Agency 3nd p3Y3ble from 3ssessments prior to the d3te of 3d mission of such city 3S 3 Member of the Municip31 Pmver ^gency, 3S determined by the vote of a majority of the Representatives of then existing Members, each casting one vote. Section 9(E) (as amended) of the Agency Agreement is hereby amended to read as follows: (E) Board of Directors. The powers of the Municipal Power 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 Board of Directors is set forth in Section 6 hereof. Only Doc# 1843258\1 Representatives shall be eligible for election to serve on 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 ofthe 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 tho Municip31 PO'Ner Agency h3s eight members or J.e.ss, The Board of Directors shall consist of the Representatives from each of the members. If the Municipal PovlOr j\,gency h3s more than eight members, the Board of Directors shall consist of seven (7) Directors, 3ppointed or elected as f{)lIows: (1 ) The Representatives of the three members which h3ve the greatest number of votes 3110c3ted to them pursuant to Section 9 (C) hereof shall automatically be Directors unless and until such time 3S another Member is alloc3ted 3 gre3ter number of votes than anyone of the three such Directors, 3t 'Nhich time the Representative of such Member shall automatic311y replace such Director on the Board of Directors. The other four Directors sh311 be elected as provided in subsection (2) hereof. (2) Four of the Directors shall be elected by the Represent3tives. 1\11 Representatives, other than those entitled 3utomatically to be Directors shall be entitled to vote for such Directors. 'Neighted voting shall not 3pply to the election of Directors and in such election each such Represent3tive shall be entitled to the S3me vote or votes as 311 other Representatives. One of the elected Directors sh311 h3ve 3 term of one (1) ye3r; one of the elected Directors sh311 h3ve a term of two (2) ye3rs; and two of the elected Directors shall have a term of three (3) years; provided th3t 2 Doc# 1843258\1 such torms sh311 expiro 3t tho 3nnu31 meeting of the Roprosentltives in the Y03r in which tho torm is to expire. Director(s) sh311 be elected 3t the 3nnu31 mooting of the Reprosentatives in e3ch ye3r to repl3co th3t Diroctor(s) '/lhose torm h3S oxpirod, 3nd e3ch Director subsoquently eloctod sh311 h3'lO 3 term of throe (3) ye3rs. Any Diroctor 'Nhose torms h3s expired but who h3s not boen repl3cod by 3nother Director sh311 continue 3S such Director until so repl3ced. If the term of a Representative who is 31so 3 Director should expire or should such Represent3tive 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 Reprosent3tive who h3s been olected to the B03rd of Directors in 3ccordance with subsection (2) 3bo'Je, 3nd \Nho, during tho term thereof, sh311 be entitled to automatic reprosont3tion on the B03rd of Diroctors, pursu3nt to subsection (1) horeof, sh311 rom3in 3 Director, 3nd the 'Jac3ncy c3used by the autom3tic resign3tion of tho other Diroctor shall bo filled by 3 Ropresontativo olected 3S providod in subsoction (2) 3bove, whose torm sh311 expire on tho date on which tho term of tho Diroctor previously olocted 'Nould h3vo expired. The Board of Directors shall elect, annually, from their number, a Chairman, a Vice-Chairman, a Secretary, and a Treasurer. Directors who h3ve beon elocted may be removed for cause at a special meeting of the Representatives called for that purpose 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 described in Section 9(C) hereof. Any Director elected pursu3nt to subsection (2) 3bove 3nd removed for causo sh311 be replaced by 3 Roprosont3tivo olocted 3S providod in subsection (2) 3bove, and the torm of such new Director shall oxpire on the d3te on 'Nhich the removod Director's term would h3vo expired. Any Director 'Nho is entitled to 3utom3tic representation on tho B03rd of Directors pursu3nt to subsection (1) 3bove 3nd is romovod 3 Doc# 1843258\1 for couse sholl be ropl3ced by 0 Representoti'Je elected os provided in subsection (1) obove, who sholl remoin a Director until the Member selects 0 successor Reprosentotive to repl3ce such removed Diroctor, ot which time such successor Representotive sholl roplace such new Director. Meetings of the Board of Directors shall be held in accordance with the provisions of the Bylaws. 2. That each Member be provided with a proposed resolution of approval and concurrence to be adopted by the Member's City Council. 3. That this resolution, together with the concurring resolutions of City Councils of Members, be filed with the Secretary of State of the State of Minnesota. FOR ADOPTION: Anoka, Arlington, Brownton, Chaska, Le Sueur, North Saint Paul, Winthrop AGAINST ADOPTION: None NOT PRESENT: Olivia Adopted and passed this 27th day of January, 2004. Chairman ATTEST: Secretary 4 Doc# 1843258\1