02-22-2006 HUCM
Regular Meeting
February 22,2006
Members present: President Craig Lenz; Vice President Donald Walser; Secretary
David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General
Manager Michael Kumm; Attorney Marc Sebora.
President Lenz called the meeting to order at 3:00 pm.
Vice President Walser made a motion to approve the minutes of the January 25, 2006
Regular Meeting. Commissioner Cook seconded the motion and it passed unanimously.
Commissioner Cook made a motion to approve the minutes of the February 9, 2006
Closed Meeting. Commissioner Bordson seconded the motion and it passed
unanimously.
Manager Kumm discussed the accounts payable. Payment to the Department of
Transportation - Pipeline User Fee Assessment is an annual fee. Payment to the City of
Hutchinson for three water billings is because we have three locations. Payment to
Anderson Chemical- Boiler Lizard is a chemical for the engines.
Payment to Corvel Corporation is our new workers compensation carrier, through the
League of Minnesota Cities Insurance Trust. City of Hutchinson Human Resources
Department performed the evaluation and they have the same carrier.
Vice President Walser made a motion to ratify the payment of bills in the amount of
$4,238,212.43 (detailed listing in payable book). Commissioner Cook seconded the
motion and it passed unanimously.
Manager Kumm explained changes in the financial statements/budget year-to-date. We
have now implemented the rate stabilization fund for the fuel cost adjustment clause
and the rate stabilization fund for the power cost adjustment clause. The January billing
showed a FCAC of .99~, and the PCAC was zero. The February billing should be zero
for both gas and electric.
At the request of our auditors, we have added an entry for deferred energy cost - MISO.
Journal entries have been given to accounting. At the March meeting Manager Kumm
will walk through those journal entries to give the Board a better understanding of the
financial statements.
Manager Kumm will look into the medical insurance account and find out what the
adjustment figure is for and will report back to Secretary Wetterling. There are still more
claims for 2005 to be processed.
Commissioner Cook made a motion to approve the financial statements and budget
year-to-date. Secretary Wetterling seconded the motion and it passed unanimously.
Manager Kumm presented the Vision, Mission and Value Statements (section 1) of
Strategic Management Process for adoption. The Board feels some sections could be
shortened, while some sections could be lengthened. They would like to see a
paragraph on alternative/renewable energy. Manager Kumm will better define portions
of the report and present it at the March meeting for approval. Commissioner Cook
made a motion to table the adoption of the Vision, Mission and Value Statements
(section1) of Strategic Management Process. Commissioner Bordson seconded the
motion and it passed unanimously.
Manager Kumm presented the Leadership and Governance (section 2) of Strategic
Management Process. Surveys were conducted and calculated giving an assessment
on HUC leadership. Strategies have been developed and implemented to improve HUC
leadership. The Board made some suggestions that better defines certain portions of
the report. They felt this is a very good review and Manager Kumm did a great job
putting it all together.
Manager Kumm explained the MRES P-Membership Agreement. Commissioner Cook
made a motion to approve MRES P-Membership Agreement. Secretary Wetterling
seconded the motion and it passed unanimously.
Manage Kumm explained the Minneapolis Consulting Group (MCG) Software Services
Agreement - Addendum 1. This updates HUC's software services agreement for MCG's
lAM software since the discontinuation of services with Lighthouse Energy Trading.
Secretary Wetterling made a motion to approve Minneapolis Consulting Group Software
Services Agreement - Addendum 1. Vice President Walser seconded the motion and it
passed unanimously.
Requisitions:
A. #001629 for Gas Meters from Groebner & Associates, Inc. for $15,016.50
B. #001632 for Residential Meter Bars from Advance Engineering Corp for
$10,128.15
C. #001642 for 3 Phase Pad Switches from WESCO for $30,911.63
D. #001696 for 2006 Dodge Dakota Extended Cab for Operations Dept. from
Elk River Dodge for $18,661.00
E. #001697 for 2006 1500 Chevrolet Truck for the Technical Dept. from
Thane Hawkins Polar Chev for $18,196.00
F. #001705 for 50,000 ft. Conductor from Border States Electric for
$76,839.75
G. #001706 for 22,500 ft. Conductor from Border States Electric for
$81 ,712.13
H. #001707 for 10,000 ft. Conductor from Border States Electric for
$29,447.25
I. #001708 for Boiler Feed Pump Systems for Unit 8 from PFC Equipment,
Inc. for $19,917.63
Secretary Wetterling made a motion to approve requisitions A through I. Commissioner
Bordson seconded the motion and it passed unanimously.
Secretary Wetterling made a motion to close the meeting to discuss natural gas pipeline
litigation. Commissioner Cook seconded the motion and it passed unanimously.
Meeting closed at 4:20 p.m.
Commissioner Cook made a motion to move from closed meeting back to open
meeting. Vice President Walser seconded the motion and it passed unanimously. The
meeting was reopened at 5:18 p.m.
Manager Kumm presented the policy on Surplus Property Disposal. This policy will
rescind the only policy we have on excess property - the sale of used poles. This policy
is modeled after the City's Disposal of Excess Property policy. After discussion the
policy will be reworded to make it more clear and brought back to the Board at the
March meeting for approval. Secretary Wetterling made a motion to table the policy on
Surplus Property Disposal. Vice President Walser seconded the motion and it passed
unanimously.
The HUC Edition of the Information Technology Policy 2006 was developed by the
Information Technology Department and is modeled after the City IT policy. Changes
and/or additions have been presented and explained to employees who must sign
affidavit of receipt and return form to IT. Secretary Wetterling made a motion to approve
the HUC Edition of the Information Technology Policy 2006. Commissioner Bordson
seconded the motion and it passed unanimously.
Division Reports
None
Legal Update
None
Old Business
None
New Business
Commissioner Cook noted that the ad in the Hutchinson Leader for the customer
rebate program has a spelling error - the letter 'H' is left off on each occurrence
of HUC and Hutchinson.
Commissioner Cook inquired on the progress of hiring an engineering technician.
That position has been budgeted and it is in the organizational chart. Will check
on the progress of filling that position.
President Lenz conducted Manager Kumm's performance review and proposes a
stipend in monthly vehicle expense from $400 to $600 and a yearly salary
increase from $106,050 to $115,000.08 ($9,583.34 monthly.)
Secretary Wetterling made a motion to increase Manager Kumm's monthly
vehicle stipend from $400 to $600 and to increase his yearly salary from
$106,050 to $115,000.08 Commissioner Cook seconded the motion and it
passed unanimously.
President Lenz based the salary increase on a survey of the average annual
salary of general managers who multi-task and consideration was given to the
outstanding job Manager Kumm has performed.
Secretary Wetterling made a motion that Manager Kumm's increases be
retroactive from January 1, 2006. Commissioner Bordson seconded the motion
and it passed unanimously.
Vice President Walser made a motion to adjourn at 5:48 pm. Commissioner
Cook seconded the motion and it passed unanimously.
David Wetterling, Secretary
ATTEST
Craig Lenz, President
r3
Regular Meeting
February 22, 2006
Members present: President Craig Lenz; Vice President Donald Walser; Secretary
David Wetterling; Commissioner Steven Cook; Commissioner Dwight Bordson; General
Manager Michael Kumm; Attorney Marc Sebora.
President Lenz called the meeting to order at 3:00 pm.
Vice President Walser made a motion to approve the minutes of the January 25, 2006
Regular Meeting. Commissioner Cook seconded the motion and it passed unanimously.
Commissioner Cook made a motion to approve the minutes of the February 9, 2006
Closed Meeting. Commissioner Bordson seconded the motion and it passed
unanimously.
Manager Kumm discussed the accounts payable. Payment to the Department of
Transportation — Pipeline User Fee Assessment is an annual fee. Payment to the City of
Hutchinson for three water billings is because we have three locations. Payment to
Anderson Chemical — Boiler Lizard is a chemical for the engines.
Payment to Corvel Corporation is our new workers compensation carrier, through the
League of Minnesota Cities Insurance Trust. City of Hutchinson Human Resources
Department performed the evaluation and they have the same carrier.
Vice President Walser made a motion to ratify the payment of bills in the amount of
$4,238,212.43 (detailed listing in payable book). Commissioner Cook seconded the
motion and it passed unanimously.
Manager Kumm explained changes in the financial statements /budget year -to -date. We
have now implemented the rate stabilization fund for the fuel cost adjustment clause
and the rate stabilization fund for the power cost adjustment clause. The January billing
showed a FCAC of .99¢, and the PCAC was zero. The February billing should be zero
for both gas and electric.
At the request of our auditors, we have added an entry for deferred energy cost — MISO.
Journal entries have been given to accounting. At the March meeting Manager Kumm
will walk through those journal entries to give the Board a better understanding of the
financial statements.
Manager Kumm will look into the medical insurance account and find out what the
adjustment figure is for and will report back to Secretary Wetterling. There are still more
claims for 2005 to be processed.
14
Commissioner Cook made a motion to approve the financial statements and budget
year -to -date. Secretary Wetterling seconded the motion and it passed unanimously.
Manager Kumm presented the Vision, Mission and Value Statements (section 1) of
Strategic Management Process for adoption. The Board feels some sections could be
shortened, while some sections could be lengthened. They would like to see a
paragraph on alternative /renewable energy. Manager Kumm will better define portions
of the report and present it at the March meeting for approval. Commissioner Cook
made a motion to table the adoption of the Vision, Mission and Value Statements
(section1) of Strategic Management Process. Commissioner Bordson seconded the
motion and it passed unanimously.
Manager Kumm presented the Leadership and Governance (section 2) of Strategic
Management Process. Surveys were conducted and calculated giving an assessment
on HUC leadership. Strategies have been developed and implemented to improve HUC
leadership. The Board made some suggestions that better defines certain portions of
the report. They felt this is a very good review and Manager Kumm did a great job
putting it all together.
Manager Kumm explained the MRES P- Membership Agreement. Commissioner Cook
made a motion to approve MRES P- Membership Agreement. Secretary Wetterling
seconded the motion and it passed unanimously.
Manage Kumm explained the Minneapolis Consulting Group (MCG) Software Services
Agreement — Addendum 1. This updates HUC's software services agreement for MCG's
IAM software since the discontinuation of services with Lighthouse Energy Trading.
Secretary Wetterling made a motion to approve Minneapolis Consulting Group Software
Services Agreement — Addendum 1. Vice President Walser seconded the motion and it
passed unanimously.
Requisitions:
A. #001629 for Gas Meters from Groebner & Associates, Inc. for $15,016.50
B. #001632 for Residential Meter Bars from Advance Engineering Corp for
$10,128.15
C. #001642 for 3 Phase Pad Switches from WESCO for $30,911.63
D. #001696 for 2006 Dodge Dakota Extended Cab for Operations Dept. from
Elk River Dodge for $18,661.00
E. #001697 for 2006 1500 Chevrolet Truck for the Technical Dept. from
Thane Hawkins Polar Chev for $18,196.00
F. #001705 for 50,000 ft. Conductor from Border States Electric for
$76,839.75
G. #001706 for 22,500 ft. Conductor from Border States Electric for
$81,712.13
H. #001707 for 10,000 ft. Conductor from Border States Electric for
$29,447.25
l�
I. #001708 for Boiler Feed Pump Systems for Unit 8 from PFC Equipment,
Inc. for $19,917.63
Secretary Wetterling made a motion to approve requisitions A through I. Commissioner
Bordson seconded the motion and it passed unanimously.
Secretary Wetterling made a motion to close the meeting to discuss natural gas pipeline
litigation. Commissioner Cook seconded the motion and it passed unanimously.
Meeting closed at 4:20 p.m.
Commissioner Cook made a motion to move from closed meeting back to open
meeting. Vice President Walser seconded the motion and it passed unanimously. The
meeting was reopened at 5:18 p.m.
Manager Kumm presented the policy on Surplus Property Disposal. This policy will
rescind the only policy we have on excess property - the sale of used poles. This policy
is modeled after the City's Disposal of Excess Property policy. After discussion the
policy will be reworded to make it more clear and brought back to the Board at the
March meeting for approval. Secretary Wetterling made a motion to table the policy on
Surplus Property Disposal. Vice President Walser seconded the motion and it passed
unanimously.
The HUC Edition of the Information Technology Policy 2006 was developed by the
Information Technology Department and is modeled after the City IT policy. Changes
and /or additions have been presented and explained to employees who must sign
affidavit of receipt and return form to IT. Secretary Wetterling made a motion to approve
the HUC Edition of the Information Technology Policy 2006. Commissioner Bordson
seconded the motion and it passed unanimously.
Division Reports
None
Legal Update
None
Old Business
None
New Business
Commissioner Cook noted that the ad in the Hutchinson Leader for the customer
rebate program has a spelling error - the letter 'H' is left off on each occurrence
of HUC and Hutchinson.
Commissioner Cook inquired on the progress of hiring an engineering technician.
That position has been budgeted and it is in the organizational chart. Will check
on the progress of filling that position.
1(,�
President Lenz conducted Manager Kumm's performance review and proposes a
stipend in monthly vehicle expense from $400 to $600 and a yearly salary
increase from $106,050 to $115,000.08 ($9,583.34 monthly.)
Secretary Wetterling made a motion to increase Manager Kumm's monthly
vehicle stipend from $400 to $600 and to increase his yearly salary from
$106,050 to $115,000.08 Commissioner Cook seconded the motion and it
passed unanimously.
President Lenz based the salary increase on a survey of the average annual
salary of general managers who multi -task and consideration was given to the
outstanding job Manager Kumm has performed.
Secretary Wetterling made a motion that Manager Kumm's increases be
retroactive from January 1, 2006. Commissioner Bordson seconded the motion
and it passed unanimously.
Vice President Walser made a motion to adjourn at 5:48 pm. Commissioner
Cook seconded the motion and it passed unanimously.
x
DAvid.We erling, cretary
AGREEMENT ESTABLISHING THE
MISSOURI BASIN MUNICIPAL POWER AGENCY
DB /A MISSOURI RIVER ENERGY SERVICES
This Agreement, made this 1st day of June 1973, first amended as of September 6, 1994, and
amended again as of October 15, 1998, and again as of March 11, 2005, among the public
agencies whose names are subscribed hereto (hereinafter referred to as Members), acting
pursuant to the authority conferred upon them by the Iowa Legislature in an act entitled "An Act
to authorize joint exercise of governmental powers by public agencies," approved the Ordinance
(hereinafter referred to as the Authorizing Act),
Witnesseth:
ARTICLE 1. Purposes: Missouri Basin Municipal Power Agency Created and Trade Name
Adopted
The purposes of this Agreement are to enable the Members to make more efficient use of their
powers as public agencies, particularly in the purchase, generation, transmission, distribution,
sale and interchange of electric energy, the sale and distribution of natural gas, the provision of
energy and communication services and to cooperate in other ways of mutual advantage. To
effectuate these purposes, a separate entity is hereby created, to be known for official purposes as
the Missouri Basin Municipal Power Agency, and authorized to do business as Missouri River
Energy Services (hereinafter referred to as the Agency).
ARTICLE 2. Membership
(a) Public Agencies of Iowa. Any public agency of the State of Iowa (as defined in section 2
of the Authorizing Act), owning or operating facilities for the generation, transmission or
distribution of electric energy and which may also distribute natural gas or provide
communications services or both, may become a party to this Agreement and a Member
of the Agency by executing this Agreement or a counterpart and filing the same, together
with a certificate of authorization by its governing body, with the Board of Directors
referred to in Article 3 (hereinafter referred to as the Board), upon approval of its
qualifications by the Board.
(b) Public Agencies of Other States. Any public agency of another State meeting the
qualifications of the preceding paragraph, if empowered by the laws of that State, may
become a party to this Agreement, and a Member of the Agency, in like manner as a
public agency of the State of Iowa, upon approval of its qualifications by the Board.
(c) Representation. The governing body of each Member shall select one person who shall
represent that Member in the business of the Agency (hereinafter referred to as a
Representative). He or she shall file with the Board a certificate or resolution of the
governing body evidencing his or her appointment.
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(d) Votin . Each Member shall cast one vote. The vote of the Representative of a Member,
at an annual or special meeting, shall be deemed the act of the Member, except where this
agreement specifically requires action by the governing body of a Member.
(e) Meetings and Elections. The Members, through their Representatives designated as
provided in paragraph (c) of this Article, shall meet not less frequently than once each
calendar year. At the annual meeting, normally held in the spring of each year, the
Members shall elect Representatives to fill the positions of the Directors whose terms
have expired. The Chairman of the Board, or in his or her absence the most senior Vice -
Chairman, shall preside at the annual meeting of the Members, and at such special
meetings as he or she or a majority of the Board shall call. Calls for special meetings
shall state the place and time of meeting, on not less than ten days' written notice to the
Members' Representatives.
ARTICLE 3. Board of Directors
(a) Powers. The powers of the Agency shall be exercised by a Board in which shall be
vested all of the powers conferred on the Agency by this Agreement.
(b) Composition. The Board shall consist of thirteen Directors, who shall be elected by the
Members. Each state having Members in the Agency shall be represented on the Board
by at least one Director. Only Representatives of Members that have executed and are
taking service under a Power Sales Agreement (S -1) shall be eligible for election to the
Board. As long as the Agency consists of Members from more than two states, the Board
shall not consist of a majority of Directors from any one state. The Directors shall serve
without compensation, but their travel and incidental expenses shall be reimbursed. The
term of each Director shall be three years. Members of the Board shall be elected each
year to replace those Directors whose terms have expired.
At least four Members of the Board shall be elected each year, to replace those Directors
whose terms have expired. The Board shall elect, annually, one of its own members,
Chairman, Vice - Chairmen from each state represented in the Agency, and one Secretary
Treasurer. The vice - chairmen positions shall be numbered (First) through the number of
states as are represented by the Agency. The Vice - Chairman with the longest seniority
on the Board shall be the First Vice - Chairman and the remaining vice- chairmen positions
shall be assigned in order of decreasing seniority.
(c) By -Laws; Executive Committee; Management. The Board shall establish By -Laws for
the conduct of the Agency's business. In such By -Laws it may create an Executive
Committee and other committees. The By -Laws shall state the powers delegated by the
Board to the officers and to the committees. The Board, through By -Laws or resolution,
shall establish the office of Chief Executive Officer and such other offices as it deems
necessary for the conduct of the affairs of the Agency, and shall establish the duties and
compensation of such offices.
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ARTICLE 4. Powers of the Missouri Basin Municipal Power Agency
(a) Delegation of Powers to Agency. The Members severally delegate to the Agency, and
the Agency shall have and may exercise, the following powers, subject to the restrictions
stated in paragraph (b) of this Article:
(1) To generate, purchase, obtain by exchange, or otherwise acquire, electric power
and energy and to sell, exchange, transmit and deliver such power and energy for
the benefit of the Members; to establish rates and charges or other appropriate
pricing mechanisms for such service, to dispose of electric power and energy
which is surplus to the needs of the Members, by sale, exchange, or otherwise; to
sell electric power and energy services at retail to the extent permitted by state
law; to broker electric power and energy for the benefit of Members; and to
provide services related to the delivery of electric power and energy to or for the
benefit of individual Members.
(2) To purchase natural gas for purposes of resale or use in electric generation, to sell
and transport such natural gas and to sell such natural gas under terms and
conditions deemed appropriate for the benefit of the Members.
(3) To act as agent for the Members or any of them in the purchase or acquisition of
power and energy or natural gas for their account as principals, and delivery of
the same to them, and in the disposition of power and energy surplus to their
requirements, by sale or exchange, and in the disposition of natural gas through
brokering.
(4) To provide telecommunications services to or for the benefit of Members.
(5) To borrow money; to manage or control the purchase price paid for electric power
and energy consistent with the provisions of Iowa law; to make and issue bonds,
notes and other evidences of indebtedness, secured or unsecured, for moneys
borrowed or in payment for property acquired or for any of the other objects or
purposes of the Agency; to secure the payment of such bonds, notes, or other
evidences of indebtedness by mortgages, or deed or deeds of trust upon, or by the
pledge of or other lien upon, any or all of the property, revenues, rights,
privileges, or permits of the Agency, wheresoever situated, acquired, or to be
acquired; and to pay all such indebtedness in the manner stated in the instruments
evidencing the debt.
(6) To construct, purchase, lease as lessee, and in any other manner acquire, own,
hold, maintain, operate, sell, dispose of, lease as lessor, exchange, and mortgage
any real and personal property, or any interest therein, as may be necessary,
convenient, or appropriate to accomplish its purposes.
(7) To provide electric distribution service at retail to the extent consistent with
applicable law.
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(8) To have and to exercise the power of eminent domain to acquire private property
for its own use.
(9) To make all contracts, and take all other actions, necessary, convenient, or
appropriate to accomplish any and all of the foregoing purposes.
(b) Restrictions on Powers. The Agency shall be subject to the following restrictions:
(1) The Agency shall engage only in activities that are essentially public in character.
(2) The Agency shall not be operated for profit (except to the extent of retiring
indebtedness).
(3) The Agency's income shall not inure to any private person or corporation.
(4) Only political subdivisions of a State shall have any beneficial interest in the
Agency or its property, and if the Agency incurs indebtedness to acquire property,
full legal title to the property of the Agency with respect to which the
indebtedness is incurred shall vest in political subdivisions which are Members of
the Agency upon retirement of such indebtedness.
(5) If the Agency shall be dissolved, all assets of the Agency shall be distributed to
political subdivisions that are Members of the Agency, subject to Articles 5(e)
and 6(b) below.
(6) No Member of the Agency shall be individually liable upon any indebtedness
incurred by the Agency, nor liable for the indebtedness of any other Member, nor
liable for any amount for any purpose in excess of the assessments made against
that Member determined as provided in Article 5.
ARTICLE 5. Financing
(a) Not - For - Profit Basis. The Agency shall operate on a not - for -profit basis, and shall be
financed as provided in this Article.
(b) Operating Budget. The Board shall establish an annual operating budget on a fiscal year
basis that includes all estimated expenses, exclusive of principal and interest payments on
bonded debt, and all estimated sources of revenue. The Board shall establish assessments
against the Members, in a form to be established by the Board, to collect such amounts as
will, in the aggregate, be not less than the budgeted expenditures for the fiscal year, plus
adequate provisions for contingencies and reserves, after taking into account anticipated
net revenue to the Agency from the disposition of electric power and energy, natural gas,
telecommunications and other services. The assessments shall be paid at such times as
the By -Laws may provide.
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(c) Restriction on Incurring Indebtedness. The Board shall not obligate the Agency for the
payment of any indebtedness in excess of that budgeted for repayment out of current
revenues within one calendar year after it is incurred, unless the Board shall first submit
to the Members, at an annual or specially called meeting thereof, a proposal to incur such
indebtedness, and unless the same shall be approved by a majority of the Representatives
of Members present.
(d) Separate Budget for Debt Service. The Board shall establish a separate budget for the
payment of interest and principal of all debt in excess of that permitted by paragraph (b)
of this Article. It shall establish such rates and charges for electric power and energy,
natural gas, telecommunications or other services, establish such separate bank or other
accounts, and make such transfers of funds into those special accounts, and make such
disbursements out of such special accounts, as may be required in the indenture or other
instrument evidencing the debt.
(e) Asset Pools. All assets of the Agency, whether ownership interests in tangible or
intangible property, contract rights for services or other assets shall be considered to be
held for the benefit of all Members unless the asset was procured for the benefit of and
with the funds of a defined subgroup of less than all Members. In the latter situation,
such assets will be considered to be segregated into a separate "Asset Pool" which is to
be supported by, and, if appropriate, ultimately distributed to, the defined subgroup of
Members for whose benefit the asset was procured or maintained.
ARTICLE 6. Effective Date-, Duration, Withdrawal
(a) Effective Date. This agreement shall become effective when nine Members have
executed it pursuant to authorization by their respective governing bodies, and it shall
remain in effect until terminated in the manner provided in paragraph (b) of this Article.
(b) Termination. This agreement may be terminated by vote of a majority of the Members,
voting at a regular meeting or a meeting specifically for that purpose, but not until after
all debts of the Agency have been paid. Thereafter, the Board shall liquidate the business
of the Agency as expeditiously as possible and distribute the net proceeds from the
disposition of all assets not identified as part of an Asset Pool to all Members in the ratio
of their individual dues payments made during the term of their membership to the total
dues collected from all Members as of the date or termination. The net proceeds from the
liquidation of assets in Asset Pools shall be distributed only to the Members that had
participated in the program giving rise to the appropriate Asset Pool. Net proceeds
related to each pool would be distributed to participating Members in the ratio that the
total payments made by each of them for that pool bears to the sum of the total payments
made by all of them for that pool.
(c) Withdrawal. Any Member may withdraw from this agreement upon giving one year's
written notice to the Board, evidenced by resolution of its governing body, and payment
of all amounts in arrears in its assessments; Provided, that if the Agency, prior to giving
of such written notice, shall have incurred other indebtedness in conformity with Article
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5(c) which matures after the effective date of the notice of withdrawal, the withdrawal
shall not become effective until such indebtedness shall have been paid by the Agency,
or, in the alternative until the withdrawing Member shall have paid to the Agency its pro
rata portion thereof. The withdrawal of a Member will not affect the requirement that it
pay all outstanding obligations to the Agency. The withdrawing Member retains no
equity rights in the Agency or distributive rights to any of its tangible or intangible assets.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed as of
(month, day and year)
[SEAL]
[SEAL]
MISSOURI BASIN MUNICIPAL POWER AGENCY
d/b /a MISSOURI RIVER ENERGY SERVICES
Chairman of Missouri River Energy Services
ATTEST:
Secretary /Treasurer of Missouri River Energy Services
HUTCHINSON
MUNICIPAL UTILITIES
By
igna A rized Representative
I11
CRAIG LENZ
Printed Name of Authorized Representative
RESIDENT
Title of Authorized Representative
DAVID WETTERLING
Secretary
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MINNEAPOLIS CONSULTING GROUP, INC.
SOFTWARE SERVICES AGREEMENT - Addendum 1
I
I
Addendum Purpose: The sole purpose of this addendum is to update Hutchinson
Utility Commissions Software Services Agreement for MCG's IAM software to reflect
new terms resulting from Hutchinson's discontinuation of services with Lighthouse
Energy Trading. The existing contract outlines the following terms for prices
(section 20):
20. PRICES FOR SERVICES:
This Agreement establishes the following terms and prices between the parties:
a. IAM
Implementation: MCG will implement the system per the specifications in
Appendix A.1 for a total cost of $50,000.00. This amount is to be paid in
accordance with the following schedule:
$15,000.00 paid upon Acceptance by Customer.
$1944.44 per month for 18 months following Acceptance by
Customer.
IAM monthly service fee: $2,500.00 per month during any month in
which Customer is under a service contract with Lighthouse Energy
Trading, or unless terminated in accordance with Section 11 of this
Agreement. The monthly service fee for IAM during any month in which
Customer is not under a services contract with Lighthouse Energy
Trading is $9,000.00 per month.
�J
New Terms: The parties (Customer and MCG) agree that effective March 1St 2006,
the new terms and updated section 20 of the contract is to be the following:
20. PRICES FOR SERVICES:
This Agreement establishes the following terms and prices between the parties:
b. IAM
Implementation: MCG will implement the system per the specifications in
Appendix A.1 for a total cost of $50,000.00. This amount is to be paid in
accordance with the following schedule:
$15,000.00 paid upon Acceptance by Customer.
$1944.44 per month for 18 months following Acceptance by
Customer.
IAM monthly service fee: The applicable monthly IAM and Software and
Management Service fees are:
1. IAM Software Services: $2,800 per month.
2. Tag Agent Software Service: $250 per month.
3. IAM Management Fees: $3,900 per month
Total monthly fees: $6,950.
Agreement to Terms
By signing below, MCG and Customer agree to abide by the terms of this Addendum
effective March 1St 2006.
For Minneapolis Consulting Group: For Customer:
Name & Title
Date
Signature
CRAIG LENZ, PRESIDENT
Name & Title
FEBRUARY 22, 2006
Date
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