Fredericktown’s City Council held a special meeting, Friday August 1, 2008.

The sole item on the meeting agenda was “Updates from the Electric Ad Hoc Committee.”

Alderman Mark Tripp attempted to report on the most recent activity of the committee, but he revealed almost no information. He said committee members Alderman Sie Merriman, Attorney Kim Moore, Phil Page, Tom Steska, and Ken Pierce traveled to “an undisclosed location” and had some discussions concerning the City of Fredericktown getting out of its contract with the Missouri Public Energy Pool (MoPEP). The sale of the City’s electric utility hinges on being released from its MoPEP obligations. Tripp did not provide any details.

Moore said the City would have to move fast, and these dealings could “potentially obligate the City to some money.”

The cost of a new member joining MoPEP is $140,000, whether or not Fredericktown participates in those costs. No one in attendance was certain of the amount of money it would cost Fredericktown to get out of its MoPEP contract. The best estimate was somewhere between $75,000 and $350,000. Moore did say “there are no guarantees in any of this” and the “money won’t be recoverable.”

Pierce said he felt this would be a good deal for the City. He passed out a letter to the alderman where MMC administrator Rodney Gross stated the sale of the electric utility would save MMC $100,000 per year.

Page also discussed the cost benefit of negotiating with the city interested in taking Fredericktown’s place in MoPEP. He said the council should not be intimidated by this number, and it would be worth it in the long run.

Darrell Bell, one of a half dozen citizens in attendance at the meeting, voiced his displeasure with the council’s lack of transparency. He said he came to this open meeting hoping to hear some details about the City’s dealings with MoPEP and the sale of the Fredericktown Electric Utility to Black River.

Moore explained that revealing any details would hinder the City’s ability to negotiate with other entities.

When the council was asked if it would be accurate to report the City is considering spending somewhere between one dollar and $400,000 with no guarantee that the expenditure will ensure the City’s release from its MoPEP contract, Ward I Alderman Brandon Hale responded: “That sounds about right.”

The Ad Hoc Committee and the council then went into closed session to discuss the details of the matter. In closed session, a motion was made by Alderman Paul Fritch, seconded by Tripp, to offer earnest money to the city interested in taking Fredericktown’s place in (MoPEP). The motion carried, 6-0. A second motion was made by Tripp and seconded by Fritch to initiate a letter of intent to the city interested in taking Fredericktown’s place in (MoPEP). This motion also carried, 6-0.