City votes to join Michigan Public Power Agency
ESCANABA — The Escanaba City Council voted Thursday to join the Michigan Public Power Agency (MPPA) as an associate member, a move the city hopes will open up cost-saving opportunities.
“MPPA, as a joint action agency, the whole idea is different municipalities join together and with that scale you can get better pricing on things whether its an actual generation project or its professional services,” City Manager Jim McNeil told the council Thursday.
Escanaba has previously used MPPA services, but changes encouraged by the agency’s legal council meant that those seeking to join in on MPPA projects must now be full or associate members. The membership does not force the city to use MPPA services if, for example, a service can be obtained cheaper elsewhere, but membership gives the city more options than it would have otherwise.
The primary reason the city is pursuing MPPA membership now is that the agency is in the process of developing a group quote for administration of municipal energy waste reduction programs. Starting next year, these programs will be required by law, and the city is hopeful that joining in on the project could be beneficial for the city.
Joining as an associate member will cost the city $1,180 per year. The city will not have the voting power reserved for full members, but will not have the higher membership bill that comes with full membership.
“We’re really, at this point, paying for as service. If we want to get into something bigger, we would look at full membership,” said McNeil.
In other business the council:
— Approved entering a three-year contract for auditing with Clark Schaefer Hackett. The decision shifts the city’s auditing to a new company but is expected to come with significant cost savings.
— Approved hiring USIC of Indianapolis, Ind. for utility locating and marking for the city’s water department. There was money in the budget for the hire, but it was not specifically allocated for marking activities.
— Approved purchasing water distribution inventory materials for a cost not to exceed $225,000. Which vendors will supply the materials has not yet been determined — not all quotes have been received by the city — but the $225,000 was already included in the water department’s budget for material purchases.
— Held the fifth and final public hearing on the city’s 2025-2026 fiscal year budget. There was no public participation.