6.1. SR 09-12-2011Item # 6.1.
MEMORANDUM
ver
TO: Mayor and City Council
FROM: Rebecca Haug, Environmental Administrator
DATE: September 12, 201 I
SUBJECT: Joint Meeting with Energy City Commission
The Energy City Commission would like to discuss the positive impact Energy City has had
on Elk River. A few commissioners would like to speak about the commitments their
companies have made to Energy City. Also, a few local business representatives would like
to discuss the impact Energy City has had on some of their business decisions.
N:\Public Bodies\City Council\Council RCA\Agenda Packet\09-12-2011\ECC Memo.docx
ELKRIVER
EN=RGYCITY
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V~/ r O~~~N~RATING iH6 POWER pF EFFICIENT & PENEW~~E ~~~~
Mr. Mayor and Members of the City Council,
Thank you for engaging the Energy City Commission in your review of city funded programs. We are
grateful for the opportunity to participate in this important conversation. Please accept this letter as an
executive summary of the value proposition Energy City offers to the City, residents, and businesses of
Elk River.
Two questions cut to the heart of the matter. First,. what positive impact has Energy City had on Elk
River? Second, what does Energy City cost?
First, the positive impacts. Elk River was designated Energy City in 1996 with the intention of being a
venue for energy related organizations to showcase new ideas. One benefit to Elk River for playing host
to years of energy demonstrations is the occasional adoption of an innovative technology or practice. In
fact, Elk River has adopted a number of innovations over the years including the conversion in the late
1990s of city traffic lights from incandescent to LED bulbs, the opening of the Landfill Gas Electric
Generating Plant and the construction of the LEED certified Twin Lakes Elementary to name a few.
These projects and others have resulted in significant benefit to the city, its residents, and its businesses,
in the form of lower maintenance and repair costs, reduced energy consumption, cost avoidance, and
the payment of incentives.
Energy City as a hub of energy technology has also helped Elk River successfully apply for energy and
environment related grants. Since 2008 Elk River has been awarded over $300,000 in grants for projects
including the ice arena lighting retrofit ($87,065), the organics recycling program ($120,453), the
Woodland Trails Lighting Project ($69,365), and Project Conserve ($50,000).
Notably, Energy City has also emphasized public outreach and education. Perhaps the most visible
example has been Project Conserve which began in 2009 as an effort to encourage Elk River residents to
save energy and money right at home. To date, 340 signed on to participate in Phases I and II and 182
more homes and businesses have already signed on to participate in Phase III. Energy City has also
partnered with the Elk River Economic Development Authority, providing speakers to a number of
business education events.
Second, the cost to Elk River for beine Enerev Citv. In 2012, Energy City is scheduled for a budget of
$50,300. The largest single expense is $36,300 in staff time, however it should be noted that those
expense dollars would not necessarily be cut out of the city budget by the elimination of Energy City.
The second largest expense in the Energy City budget. is the $5,000 allocated for Project Conserve. The
remaining $9,000 would be used for the annual Energy Expo, seminars and travel expenses,
maintenance of the Energy City website, and other miscellaneous expenses. Energy City Commissioners
serve Elk River without compensation.
At its heart, Energy City is a brand. It is a commitment to focus on energy innovation under the belief
that leadership in this arena makes Elk River a great place to live and do business. As a result Elk River
has been recognized on the state, national and international levels, receiving a number of awards and
hosting foreign tour groups from as far away as China and Brazil. To be sure, any city can pursue energy
innovation, but there can be only one Energy City.
Again, thank you for the opportunity to participate in this important conversation. We hope you will
continue to engage us as you move forward with your review of Energy City.
Sincerely,
Elk River Energy City Commission