Minutes of the regular meeting of the Water, Light, Power and Building Commission of the City of East Grand Forks, Minnesota held October 19, 2004 at 5:00 P.M.

Present: Gregoire, Quirk, Ogden, Vetter

Absent : None

It was moved by Commissioner Quirk second by Commissioner Vetter that the minutes of the previous meeting of October 5, 2004 be approved as read.

Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None

The following bills and payroll were recommended for approval:

CHECK #          VENDOR                       DESCRIPTION                   AMOUNT

26299     Rene Rodriguez               Reimbursement                    $ 23.00

26300     MMPA                         Energy/demand                     241,113.35

26301     Donald J Mack                Overpay final bill                48.90

26302     Brett DeMars                 Overpay final bill                65.59

26303     Michael Anderson             Overpay final bill                128.80

26304     AmericInn                    Training & school                 262.36

26305     Ameripride Linen/Apparel     Contracted services               164.14

26306     American Chemical Society    Dues                              144.00

26307     Bobcat of Grand Forks        Equipment                         720.56

26308     Border States Electric       Inventory                         5,366.18

26309     Dan Boyce                    Expenses                          566.17

26310     City of EGF                  Transfer; paper                   228,612.24

26311     City of Fargo                Water tests                       60.00

26312     Commissioner of Revenue      Sales; use; grbg surchrg          33,460.00

26313     Community Bank/RRV           Sep ACH charges                   42.84

26314     DPC Industries               Wtr treat chemicals               1,058.90

26315     Dakota Supply Group          Inventory                         4,025.66

26316     Diamond Cleaning Supply      Supplies                          42.49

26317     Eagle Electric               Maintenance                       719.50

26318     Ethanol Products             Wtr treat chemicals               1,669.89

26319     Exponent                     Advertising; publishing           1,276.74

26320     Fargo Water Equip            Inventory; supplies               1,226.14

26321     Fert-L-Lawn                  Contracted services               878.09

26322     FM Forklift                  Maintenance                       121.78

26323     The Forum                    Miscellaneous                     15.18

26324     Gaffaney’s                    Supplies                          77.43

26325     Galstad Jensen & McCann      Sep legal fees                    1,471.50

26326     Gopher State One Call        Sep locates                       204.70

26327     GF Fire Equip Co             Supplies                          9.59

26328     GF Herald                    Miscellaneous                     33.12

26329     GF Utility Billing           Water tests                       200.00

26330     GF Welding                   Supplies                          60.37

26331     Graymont Western Canada      Wtr treat chemicals               2,034.26

26332     Hardware Hank                Supplies                          116.90

26333     Hawkins Inc                  Wtr treat chemicals               3,504.39

26334     Johnson Iron & Machine       Repair                            80.00

26335     KBM Inc                      Professional fees                 8,113.04

26336     Leighton Broadcasting        Advertising                       440.00

26337     Locators & Supplies          Supplies                          81.93

26338     Lumber Mart                  Supplies                          36.09

26339     M & W Services Inc           Oct meter reads                   1,695.65

26340     McDonald’s                    CIP billing                       3,058.91

26341     MeritCare Medical Group      Physicals                         3,953.00

26342     MMUA                         Travel & school                   230.00

26343     MN Section AWWA              Training                          585.00

26344     Nalco Company                Wtr treat chemicals               2,656.18

26345     Northern Water Works         Supplies                          851.23

26346     Ornamental Iron              Repair                            55.00

26347     Pioneer Press                Miscellaneous                     300.80

26348     Qwest                        Communications                    1,037.14

26349     Radix Corporation            Maintenance                       130.00

26350     Reliance Telephone           Repairs                           384.00

26351     Sam’s Club                    Computer supplies                 782.14

26352     Service Bureau               Sep collection fees               47.08

26353     Spiegel & McDiarmid          Professional fees                 225.00

26354     Solomon Corporation          Repairs                           505.00

26355     Sun Dot Communications       Communications                    201.91

26356     TigerDirect                  Computers                         5,230.00

26357     Tony Dorn Inc                Service agreements                22.74

26358     Tri-Valley                   CIP billing                       14,808.29

26359     USLink/TDS Metrocom          Communications                    40.15

26360     Valley Truck Parts           Repair                            262.81

26361     Verizon Wireless             Communications                    6.78

26362     Basin Electric Power         Current                           95,697.52

26363     Water & Light                Utilities                         741.33

26364     X-cel Energy                 Facilities/distribution           5,059.99

          Payroll                      Total cost                        56,100.76

                                                                          $ 732,944.23

It was moved by Commissioner Quirk second by Commissioner Ogden that the bills and payroll be allowed as recommended and the Secretary issue checks for the same.

Voting Aye: Gregoire, Quirk, Ogden

Voting Nay: Vetter

Commissioner Ogden, supported by Commissioner Vetter, introduced the following resolution:


A RESOLUTION REQUESTING MEMBERSHIP IN THE MINNESOTA MUNICIPAL POWER AGENCY, ACCEPTING THE PROVISIONS OF THE AGENCY AGREEMENT AND BY-LAWS OF THE MINNESOTA MUNICIPAL POWER AGENCY, APPOINTING A REPRESENTATIVE TO THE AGENCY AND REQUESTING THE CONCURRENCE OF THE CITY COUNCIL.

NOW THEREFORE BE IT RESOLVED BY THE WATER, LIGHT, POWER AND BUILDING COMMISSION OF AND FOR THE CITY OF EAST GRAND FORKS:


           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, Winthrop and Shakopee and they each purchase wholesale power, transmission and other electric utility services from the Agency.


           C. The City of East Grand Forks is authorized by City Charter, City Ordinance and Minnesota Statute, to engage in the local distribution and sale of electric power and energy. The Water, Light, Power and Building Commission of and for the City of East Grand Forks is authorized and empowered by law to regulate rates and charges for the distribution of electric energy within the City of East Grand Forks and to make arrangements for power and energy supply.


           D. The Water, Light, Power and Building Commission of and for the City of East Grand Forks (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, plan, financial position, generating and purchase of 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 East Grand Forks. Therefore, the Commission has selected the Agency to provide its long term power supply needs 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 1999, that the governance of the Agency is in the hands of other Minnesota municipal electric utilities and that the City of East Grand Forks 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 has examined 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 of the Resolution the Agency Bylaws include the Bylaws of the Agency as originally adopted and as since amended by the Agency Directors and Representatives through the date of the adoption of this Resolution.


           H. Pursuant to the Agency Statute, the concurrence of the City Council of the City of East Grand Forks is required as a precondition to the effectiveness of the Commission’s adoption of the Agency Agreement as provided in the Resolution.


           I. The Agency Statute and the Agency Agreement provide that cities which are members of municipal power agencies are not liable for the obligations of the municipal power agency.


           Section 2. The participation of the City of East Grand Forks, 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 East Grand Forks, Minnesota and the Secretary or any other officer of the Commission is hereby authorized and directed to certify the adoption of the 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 East Grand Forks as a member of the Agency:


     Representative: Dan Boyce         Address: PO Box 322

                                                   East Grand Forks, MN 56721


     Alternate

     Representative: Scott Gravseth    Address: Same as above


The Representative or, in the absence of the Representative, the Alternate Representative, shall exercise all of the rights, duties and powers of the City of East Grand Forks as a member of the Agency for and on behalf of the City of East Grand Forks in accordance with the provisions of the Agency Statute, the Agency Agreement and the Bylaws of the Agency until a successor is appointed by the Commission.


           Section 5. The Chairman of the Commission or any other officer of the Commission is authorized and directed to affix to the Agency Agreement a certified copy of this Resolution for submission to the Secretary of State of Minnesota in accordance with the Agency Statute.


           Section 6. The Chairman of the Commission or any other officer of the Commission is authorized and directed to deliver this Resolution to the City Council of the City of East Grand Forks and to request the concurrence of the City Council in the Resolution.

           This Resolution is adopted by the Water, Light, Power and Building Commission of and for the City of East Grand Forks on October 19, 2004.



Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None

It was moved by Commissioner Quirk second by Commissioner Ogden to approve the MMPA New Member Agreement and authorize the president to sign it.

Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None

It was moved by Commissioner Vetter second by Commissioner Quirk to approve the MMPA Power Sales Agreement and authorize the president to sign it.

Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None

It was moved by Commissioner Ogden second by Commissioner Quirk to approve the 2005 chemical bid specifications, advertise for bids, and set the bid opening for 10:00 a.m. on November 23, 2004.

Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None

It was moved by Commissioner Ogden second by Commissioner Quirk to approve the change order for the 2003 Phase 3 Dike Service to L6/L8 increasing the contract by $8,943.90 and changing the completion date to October 31, 2005.

Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None

It was moved by Commissioner Quirk second by Commissioner Ogden to approve the change order for the 2004 Miscellaneous Contract changing the completion date to October 31, 2005.

Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None

It was moved by Commissioner Quirk second by Commissioner Ogden to authorize the president to sign the certificate of substantial completion from North-Holt Electric, Inc. for the 2002 Miscellaneous Distribution Construction contract.

Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None

It was moved by Commissioner Quirk second by Commissioner Vetter that the meeting be adjourned to October 26 at 7:00 p.m. for Teamster negotiations, and then to the regular meeting on November 2, 2004 at 5:00 P.M.

Voting Aye: Gregoire, Quirk, Ogden, Vetter

Voting Nay: None



                                                     Bonnie Abel

                                                     Sec'y