ERMUSR MISC ITEMS 06-10-2003 Elk River
Municipal Utilities
322 King Avenue phone: 763.441.2020
Elk River,MN 55330 Fax:763.4418099
June 3, 2003
To: Elk River Municipal Utilities Commission
John Dietz
Jerry Takle
James Tralle
From: Bryan C. Adams
Subject: Miscellaneous Issues
Enclosed is the packet for the June 10, 2003, commission meeting at 4:00 p.m.
With the conclusion of the Minnesota State Legislative session, attached is Minnesota
Municipal Utilities Association's (MMUA's) Capital Tattler highlighting legislation that
effects utilities.
In light of this months discussions on Elk River's Comprehensive Plan. enclosed are the
following two articles for your reading enjoyment.
a) "Quarry Owners Hope to Raise Profile of Gravel" taken from May 5, 2003,
issue of St. Paul Pioneer Press.
b) "Ramsey Envisions Billion-Dollar Urban Village", taken from Star Tribune.
Corporate Technologies of Minneapolis and Fargo,North Dakota, is interested in placing
a communication antenna on the Jackson Street Water Tower. I have forwarded them the
attached contract that was developed earlier for another prospect. If this is acceptable to
Corporate Technologies, I will bring it to this commission for authorization to execute.
Minnesota Municipal Utilities Association is hosting it's annual summer meeting at
Breezy Point Resort on August 25-27, 2003. Attached is this years' agenda. My term of
MMUA President expires in August 2003, and I will be attending this meeting unless this
commission desires otherwise. I would also encourage this commission to attend as well.
On a final note, staff is starting the investigation of adding the 4`h engine/generator to the
LFG facility at the landfill. To date, this facility is performing very well and is exceeding
our operational and financial projections. The challenge of adding the next
engine/generator set will be to secure a major air emissions permit. This may be as costly
as adding the fourth engine.
Vol. 6, No. 18, May 30, 2003
The
MINI
Capitol
�
LLLLLLLLLLLL
Tattler
It's over!The Legislature has adjourned for the ses- annually by Xcel to the Prairie Island Indian Community for
sion, and it has approved the Prairie Island bill(HF 9, relocation purposes.
authored by Rep.Torrey Westrom,R-Elbow Lake). Of more interest to utilities,the law requires Xcel to
Gov.Tim Pawlenty is expected to sign the bill. transfer$16 million each year the plant is in operation to a
As with all omnibus energy bills of recent memory,this Renewable Development Account. Much of this money will go
bill has things to be happy about and items of concern.The gen- to provide renewable energy production incentives. It seems that
era! feeling is,however,that the bill,on balance, is good for municipal utilities would be among those eligible for these
municipal utilities. incentives—eligibility will be determined by the Department of
Commerce.
The bill modifies Conservation Improvement
Program reporting requirements for small municipal utilities. The legislation says it is a goal of the state to"move to
The law states,`The overview filed by a municipality with less hydrogen as an increasing source of energy for its electrical
than$2,500,000 in annual gross revenues from the retail sale of power,heating and transportation needs" Hydrogen is listed as a
electric service may consist of a letter from the governing board renewable fuel,as is mixed municipal solid waste or refuse-
of the municipal utility to the Department of Commerce provid- derived fuel from mixed municipal solid waste.
ing the amount of annual conservation spending required of that
municipality and certifying that the required amount has been The University of Minnesota comes out well,as Xcel
spent on conservation programs . . " is required to send 5 percent of its required spending amount to
The bill also allows a municipality to spend up to 50 the U of M Initiative for Renewable Energy and the
percent of its required spending to refurbish an existing district Environment.And,$10 million from the renewable development
heating or cooling system.That provision sunsets on July 1, account goes to this U of M Initiative to support basic and
2007. applied research and demonstration activities.
Of concern,the bill stipulates that service limiters may The bill builds on current requirements to make a good
not be used unless steps taken prior to disconnection under the faith effort to use renewable resources to provide 10 percent of
Cold Weather Rule are followed.This should force little the electric energy provided to retail customers by 2015.The
change in the way municipals use such Limiters. new bill puts some structure to that, ordering the MPUC"to
And,the bill forbids disconnections"when an excessive issue an order by June 1,2004"detailing the criteria and stan-
heat watch,heat advisory,or excessive heat warning issued by dards by which it will measure an electric utility's efforts to
the National Weather Service is in effect."MMUA will engage meet the renewable energy objectives. . .to determine whether
in further discussions with consumer advocates and regulators the utility is making the required good faith effort."(Electric
on this law to clarify certain concerns. utility is defined to include municipal power agencies,but not
municipal distribution utilities.)
Of course,most folks were focused on the provision And,in a proceeding we will no doubt need to be
that allows the unit 1 reactor at Prairie Island to operate until the involved in,the MPUC is directed to provide"a weighted scale
end of its current license in 2013 and unit 2 to operate until the of how energy produced by various eligible energy technologies
end of its current license in 2014. shall count toward a utility's objective."
Additional spent nuclear fuel storage in dry casks is This provision is balanced by language that the renew-
subject to approval of a certificate of need by the Minnesota able energy objective"is a requirement to the extent that the eli-
Public Utilities Commission.That decision will be subject to gible resources are the utility's least cost resource. . ."or unless
Legislative review. reliability is jeopardized.
The bill is chock full of studies,reports,and money Fallout from the 2001 omnibus energy bill is still keep-
being spent on this or that project,and increased renewable ener- ing MMUA and its members busy (witness the distribution relia-
gy requirements on "an electric utility that owns a nuclear gener- bility standards,etc.).The 2003 legislation could also have far-
ation facility." reaching impacts.Look for more on this from MMUA in the
For example,it orders the MPUC to approve a rate future.M for this publication,see you next session!
schedule that includes annual payments of up to$2.5 million
SITE AGREEMENT
This Site Agreement ("Agreement") is made as of this day of August, 2003, by and
between Elk River Municipal Utilities, a Minnesota municipal utility, ("ERMU"), whose
address is 322 King Avenue NW, Elk River, Minnesota 55330 and Corporate
Technologies, a Minnesota corporation (hereinafter, LESSEE), for the leasing of certain
property interests pursuant to the following terms:
1 . PROPERTY. The property interests hereby leased (collectively, the "Leased
Premises") and granted by ERMU include the following property:
Jackson Street Tower Site: Located on Jackson Street NW, Elk River, Minnesota.
Real property comprised of the existing stucco building, water tower ("Structure")
exterior space for attachment of , ( ) tall non-guyed
antennas, space required for cable runs to connect equipment and antennas, non-
exclusive easements required to run utility lines/cables, a non-exclusive easement
across ERMU property, (hereinafter defined) for access in or upon the ERMU's real
property ("ERMU's Property"). ERMU's property is legally described in Exhibit A
attached hereto, and the locations of the equipment and antennas on the Structure
are depicted in Exhibit B attached hereto.
2. TERM. The initial term of this agreement shall commence on September 1 , 2003,
and shall terminate on August 31 , 2014.
3. OPTION TERMS. LESSEE may extend the term of the Agreement for the additional
five (5) year option periods. Unless (a) ERMU delivers to LESSEE written notice of
non-renewal to LESSEE no later than ninety (90) days prior to the expiration of the
Initial Term or applicable Option Period, or (b) LESSEE gives ERMU written notice
of its intention not to extend at least ninety (90) days prior to the expiration of the
then-current term, the applicable Option Period shall be deemed effective.
4. RENT. The LESSEE shall pay ERMU first year rent of six thousand dollars
($6,000.00). ERMU will issue an invoice for each subsequent year's rent on or
about September 1 . The rental year shall run from September 1 to August 31 .
The rental amount may be adjusted annually based on the Consumer Price Index
for All Urban Customers (CPI-U); however, any annual increase in rent from the
previous year shall not exceed six percent (6%). Rent prorations shall be based on
the number of days in the calculation period. If this Agreement is terminated for
any reason other than LESSEE's default, any prepaid rents for the period after
termination shall be refunded to LESSEE (or credited against any termination fee
payable by LESSEE pursuant to Section 11 below).
5. USE. LESSEE may use the Leased Premises for the purpose of installing,
removing, replacing, maintaining, modifying, altering and operating its
communication fixtures and related equipment antennas, cables, accessories am
1
•
improvements (collectively, the "Communications Facility"). The manner in which
the Communications Facility may be attached to the Leased Premises shall be
documented in Exhibits A and B and any subsequent documents as needed, and is
subject to the prior approval by ERMU, such approval not to be unreasonably
withheld, conditioned, or delayed. Any proposed modifications or alterations to
the ERMU's structure that may affect its structural integrity shall be included in the
documentation provided by the LESSEE and shall include plans and drawings
signed by a professional structural engineer licensed in the State of Minnesota.
ERMU shall provide LESSEE with twenty-four (24) hour, seven (7) day a week year
round access to the Leased Premises. LESSEE will pay all personal property taxes
(if any) assessed against its Communications Facility. LESSEE will not allow any
mechanics' or materialmens' liens to be placed on the Leased Premises as a result
of its work on the Leased Premises.
6. DUE DILIGENCE. LESSEE, its agents and contractors, are hereby granted the right,
at its sole cost and expense, to enter upon ERMU's Property and conduct such
studies as LESSEE deems necessary to determine the Leased Premises' suitability
for the Communications Facility. These studies may include surveys, soil tests,
environmental evaluations, radio wave propagation measurements, field strength
tests and such other analyses and studies as LESSEE deems necessary or
desirable.
7. UTILITIES. The LESSEE shall operate its equipment on a separately metered
electrical circuit. LESSEE shall establish accounts for electrical, telephone, or other
utility services as needed and shall pay all costs associated with installation and
service.
8. REMOVAL OF COMMUNICATIONS FACILITY. All personal property, trade
fixtures, and improvements installed by LESSEE shall remain LESSEE's property
and shall be removed, at no cost to ERMU, by LESSEE within sixty (60) days of
the termination of this Agreement.
9. INSURANCE. LESSEE shall maintain commercial general liability insurance
acceptable to ERMU, insuring LESSEE against liability for personal injury, death or
damage to personal property arising out of use of the Leased Premises by LESSEE,
with combined single limits of One Million and No/100 Dollars ($1 ,000,000).
LESSEE shall also maintain fire and extended coverage insurance insuring LESSEE's
personal property for its full insurable value (subject to reasonable deductibles).
LESSEE shall list ERMU as an additional insured on the commercial general liability
policy to the extent allowed under paragraph 12 Indemnity, of this Agreement.
LESSEE shall provide a certificate of insurance prior to commencement of
operations.
10. CONDITION OF PROPERTY. ERMU represents that ERMU's Property is in "as is"
condition. If, in ERMU's judgment, ERMU's Property or Structure become
2
unusable for its water utility related purposes due to condition or other factors,
ERMU retains the right to cancel the Agreement with ninety (90) Days prior
written notice to the LESSEE, notwithstanding any provisions herein to the
contrary.
11 . TERMINATION. This Agreement may be terminated by LESSEE at anytime in its
sole discretion by giving written notice thereof to ERMU, which termination shall
not constitute a waiver of LESSEE's rights under the Default paragraph of this
Agreement. In the event this Agreement is terminated by LESSEE under this
Termination paragraph, LESSEE agrees to pay to ERMU six (6) months additional
rent as liquidated damages for early termination calculated from the date of
termination pursuant to this section.
12. INDEMNITY. ERMU and LESSEE each indemnify the other against, and hold the
other harmless from any and all costs (including reasonable attorneys' fees and
expenses) and claims, actions, damages, obligations, liabilities and liens which
arise out of (a) the breach of this Agreement by the indemnifying party; and (b) the
use and/or occupancy of the Leased Premises or ERMU's Property by such
indemnifying party. This indemnity shall not apply to any claims, actions,
damages, obligations, liabilities and liens arising from any negligence or intentional
misconduct of the indemnified party and shall survive the termination of this
Agreement.
13. HAZARDOUS SUBSTANCES. ERMU represents that ERMU has no knowledge of
any substance, chemical, or waste on ERMU's Property that is identified as
hazardous, toxic or dangerous in any applicable federal, state or local law or
regulation. ERMU shall hold LESSEE harmless from and indemnify LESSEE against
any damage, loss, expense, response costs, or liability, including consultant fees
and attorneys' fees resulting from the presence of hazardous substances on,
under or around ERMU's Property or resulting from hazardous substances being
generated, stored, disposed of, or transported to, on, under, or around ERMU's
Property as long as the hazardous substances were not generated, stored,
disposed of, or transported by LESSEE or its employees, agents or contractors.
14. LESSEE shall hold ERMU harmless from and indemnify ERMU against any damage,
loss, expense, response costs, or liability, including consultant fees and attorneys'
fees resulting from the presence of hazardous substances on, under or around
ERMU's Property or resulting from hazardous substances being generated, stored,
disposed of, or transported to, on, under, or around ERMU's Property provided that
the hazardous substances were generated, stored, disposed of, or transported by
LESSEE or its employees, agents or contractors.
1 5. CASUALTY. If any portion of ERMU's Property or the Communications Facility is
damaged by any casualty and such damage adversely affects LESSEE's use of the
Leased Premises, this Agreement shall terminate as of the date of the casualty if
3
LESSEE gives written notice of the same within thirty (30) days after LESSEE
receives notice of such casualty, and any prepaid rent shall be refunded to
LESSEE.
16. QUIET ENJOYMENT. LESSEE, upon performance of its obligations hereunder, shall
peaceably and quietly have, hold and enjoy the Leased Premises. ERMU shall not
cause or permit any use of ERMU's property that interferes with or impairs (a) the
integrity of the Communications Facility and/or the Structure to which it is
attached, or (b) the quality of the communication services being rendered by
LESSEE from the Leased Premises. LESSEE shall not cause or permit any use of
ERMU's Property that interferes with or impairs (a) the integrity of the ERMU's
Property and/or the Structure to which it is attached, or (b) the use of the
Structure for its water utility related purposes.
17. DEFAULT. Except as expressly limited hereby, ERMU and LESSEE shall each have
such remedies for the default of the other party hereto as may be provided at law
or equity following written notice of such default and failure to cure the same
within thirty (30) days.
18. INTERFERENCE. LESSEE's equipment shall be installed and operated in a manner,
which does not cause interference to existing equipment. Should any such
interference occur, LESSEE shall diligently pursue a cure to remove or satisfactorily
attenuate such interference. If such interference to the existing equipment cannot
be cured or satisfactorily attenuated, LESSEE agrees to immediately stop using its
equipment if so demanded in writing by ERMU. ERMU hereby covenants to use
reasonable effort to afford LESSEE similar protection from interference which may
be caused by the operations of subsequent additional users of ERMU's Property.
19. MISCELLANEOUS.
A. LESSEE and ERMU each acknowledge and represent that it is duly organized,
validly existing and in good standing and has all rights, power and authority to
enter into this Agreement and bind itself hereto through the party set forth as
signatory for the party below. LESSEE agrees to provide a signed and notarized
Acknowledgment of Authorized Signature as a part of this Agreement, indicating
that the person signing the Agreement is an officer of the corporation or is
authorized by the corporation to bind the corporation to this Agreement.
B. This Agreement supersedes all prior discussions and negotiations, and contains all
agreements and understandings between ERMU and LESSEE concerning the
Jackson Street Tower Site. This Agreement may only be amended in writing
signed by all parties. Exhibits referenced herein are incorporated into this
Agreement by reference.
4
C. The LESSEE shall comply with all federal, state, and local laws, ordinances, rules,
and regulations otherwise governing the placement operation, or maintenance of
its equipment.
E. The terms and conditions of this Agreement shall run with the land and shall
extend to and bind the heirs, personal representatives, successors and !assigns of
LESSEE; provided, however, that LESSEE may not assign this Agreement.
F. Notices shall be in writing and given by personal service or sent by United States
Mail, postage prepaid, certified or registered with return receipt requested or by
courier service to the address set forth beneath the signature of each party below.
G. This Agreement shall be construed in accordance with the laws of the State of
Minnesota.
H. If any term of this Agreement is found to be void or invalid, such invalidity shall
not affect the remaining terms of this Agreement, which shall continue in full force
and effect.
J. Either party will, at any time upon fifteen (15) days prior written notice from the
other, execute, acknowledge and deliver to the other a recordable Memorandum of
Lease. Either party may record this memorandum at any time, at its absolute
discretion.
20. MAINTENANCE, IMPROVEMENT EXPENSES. After initial installation, LESSEE shall
obtain written approval prior to undertaking any modification of its
communications facility, which approval shall not be unreasonably denied.
Notwithstanding the foregoing, LESSEE shall be allowed to replace and upgrade
any of its existing equipment upon fifteen (15) days prior written notice to ERMU,
as long as any such replacement or upgrade equipment does not exceed in size or
number LESSEE's then-existing equipment. All modifications to the Leased
Premises and all improvements made for LESSEE's benefit shall be at LESSEE's
expense and such improvements, including the Communications Facility and
equipment, shall be maintained in a good state of repair. LESSEE's antennas shall
at all times be painted, at LESSEE's expense, the same color as the Structure.
Ground located equipment shall be appropriately screened by a combination of
earth berms, screening fences and plantings/trees provided by LESSEE and
acceptable to ERMU. In the event ERMU's reasonable maintenance of ERMU's
Property affects areas involving the Leased Premises, LESSEE agrees to protect it's
equipment from such repairs at LESSEE's sole cost and expense.
21 . ARBITRATION. Any claim, controversy or dispute arising out of this Agreement
shall be settled by arbitration in accordance with the applicable rules of the
American Arbitration Association, and judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. The arbitration
5
shall be conducted in Sherburne County, Minnesota. There shall be no discovery
other than the exchange of information-nation provided to the arbitrator by the
parties. The arbitrator shall have the authority only to award compensatory
damages and shall not have authority to award punitive damages or other
non-compensatory damages; the parties hereby waive all rights to and claims for
monetary awards other than compensatory damages.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year
first above written.
ERMU LESSEE
Elk River Municipal Utilities Corporate Technologies
By: By:
Its: Commission Chair Its:
By:
Its: General Manager
STATE OF MINNESOTA
COUNTY OF SHERBURNE
The foregoing instrument was acknowledged before me this _ day of August,
2003, by , and
Commission Chair, and General Manager, respectively, of Elk River Municipal Utilities, a
Minnesota utility, on behalf of the corporation.
Notary Public
STATE OF MINNESOTA
COUNTY OF SHERBURNE
The foregoing instrument was acknowledged before me this _ day of August,
2003, by , the , of Corporate Technologies,
on behalf of the corporation.
Notary Public
6
SHAW IA'
iirivfl
MINNESOTA nuN/ciPAL ut/Lu/E$ASSOCIA noN
12805 Highway 55 • Suite 212 • Plymouth. MN 55441-3859 • 763.551.1230 • 800.422.0119)MN) • Fax 763.551.0459
May 21, 2003
2003 Annual Summer Meeting Packet
It's time to make your plans to attend MMUA's 71s`ANNUAL SUMMER MEETING which will be held
August 25-27, 2003 at the Breezy Point Resort in Breezy Point, Minnesota. We have made some changes
in the meeting format this year. The biggest change is that our meeting will be one day shorter than it has been in
the past. Another major change is that the golf and fishing will be held Monday afternoon before the start of the
meeting. You will now have an option of coming in early to play golf or fish or come later in the day and join us
for the evening BBQ.
Please take time to review this packet of information and materials. It contains everything you need to register with
MMUA and Breezy Point. Please take special note of all of the deadline dates. It is important to get your requests
sent in as soon as possible.
Below are a few pertinent notes and highlights pertaining to the different forms in this packet:
Delegate's Program
This year we will have programming all day Tuesday and Wednesday morning. Hopefully, many topics of interest
to you. Please see the agenda for details of the program. Also, watch for the MMUA Resource for further
formation and program updates.
MMUA Registration Form
Complete the Registration Form and return to the MMUA Office no later than August 8, 2003. This form contains
the registration for the meeting and/or the golf tournament.
Breezy Point's Reservation Form and Directions
Review the reservation form very carefully. The completed reservation form must be faxed or mailed to Breezy
Point. Prepayment is required by check or credit card. Breezy Point would like your reservation no later than July
24, 2003 to guarantee space with them. The resort will not guarantee accommodations after the July 24ih deadline.
Reservations are accepted on a first-come first-serve basis. MMUA cannot help you once the resort is sold out . . .
so don't delay in making your reservations!
Commuter Requests for Day Guests
If you plan to participate in the golf tournament but are not staying at Breezy Point Resort you will need to complete
a portion of Breezy Point's Reservation Form that pertains to paying the commuter rate for golf and dinner. If you
plan to drive in for the day for our meeting, you will need to order your meals from the Breezy Point Reservation
Form. If you don't want to eat with the group, you can simply purchase and eat the meals you want at the Breezy
Point Marina Dining Room.
Golf& Fishing Tournament information
The golf tournament will be held on Monday, August 25th and you must be pre-registered by August 8'" to play.
You can register yourself as an individual or as a team on the MMUA Registration Form. If you are not staying at
Breezy Point, you will also need to register with them for the tournament. Breezy Point will not allow walk-ins the
'ay of the tournament. Please refer to separate attachment for further information regarding the MMUA Golf
-ournament. We will also have our annual fishing contest on Monday, August 25th. Bring your own boat and
equipment or rent it from Breezy Point. Please see attached sheet for further information. Cash prizes will be
awarded at the BBQ for both activities.
Specific questions or concerns regarding the room accommodations, packages, golf or fishing, etc. at Breezy Point
should be directed to Bonnie at the MMUA Office at 1-800-422-0119 (MN only) or 763-551-1230.
Minnesota Municipal Utilities Association
71' Annual Summer Meeting
August 25-27, 2003
Breezy Point Resort - Breezy Point, MN
TENTATIVE PROGRAM
MONDAY, AUGUST 25
10:00-12:30 p.m. Board of Directors Meeting
11:00-1:30 p.m. Registration Desk Open for Golf& Fishing registration
1:30 p.m. Golf"Scramble" Tournament(Shot Gun Start)
1:00-6:00 p.m. Fishing Tournament
3:00-6:15 p.m. Registration Desk Open for Conference registration
5:00 p.m. Hotel Check-In Time
6:30-7:30 p.m. Welcome Reception
7:30-9:00 p.m. Out-door Bar-B-Que
TUESDAY, AUGUST 26
6:30-10:30 a.m. Breakfast served
8:00-5:00 p.m. Registration Desk Open
8:15 a.m. Welcome
8:30-9:15 a.m. ACT HAPPY! Live It LIP! And Laugh for the Health of It!
Dr. Dale L. Anderson, MD & Humorist
9:15-10:00 a.m. Hydrogen Economy
Robert Elbe, Professor, University of Minnesota
10:00-10:30 a.m. Refreshment Break
10:30-11:15 a.m. Impact of 2003 Regulatory& Legislative Actions on the Natural Gas Market
Bert Kalisch, V.P. Government Relations, American Public Gas Association
11:15-12:00 noon Federal Energy Bill
Dave Schryver, Government Relations Representative,APPA
12:00-1:15 p.m. Lunch
Speaker: Carol Molnau, Lieutenant Governor (invited)
(over)
Minnesota Municipal Utilities Association
71" Annual Summer Meeting
August 25-27, 2003
Breezy Point Resort - Breezy Point, MN
MMUA Registration Form
Conference Registration
Registration Fees:
$195.00 Advance registration fee on or before August 8ih
$230.00 Registration fee after August 8th and at the door
Register the Following Person(s) for the 2003 MMUA Annual Summer Meeting:
Name (as you'd like it on badge) Title Spouse's Name
Name of Utility/Company
ling address
City State Zip
REFUND: A full refund (minus a $25.00 processing fee) will be given on advance registrations if the MMUA office
is notified by 4:30 p.m. on August 15"'.
Enclosed/bill $ to cover Registrants at $195.00 each. (on or before August 8)
Enclosed/bill $ to cover Registrants at $230.00 each. (after August 8)
Bill Me Bill Utility/Company
Golf Registration
Please register the following as individuals or as a scramble team. Incomplete foursomes will be filled in:
Name/City/Co. Name/City/Co.
Name/City/Co. Name/City/Co.
I would like to play with:
Return by August 8, 2003 to: MMUA Office
12805 Hwy. 55, Suite 212
Plymouth, MN 55441-3880
or fax by August 8 to: 763-551-0459 4202
Quarr y owners hop e to raise profile of gravel
Supporters say new tax will make pits more attractive to suburbs that are rapidly sealing gravel want pretty malls and retail. They don't
reserves forever with houses and malls. give a damn about aggregate," said Peter
While it's almost unheard of for a bust- (Fischer, an owner of Fischer Sand and
BY BOB:SHAW So why does gravel gel treated like ness owner to favor higher taxes, many Aggregate in Apple Valley. -
Pioneer Press dirt? meta area quarry owners do.They say if The promise of lax income could
Supporters of a new tax on gravel want the money goes to host cities, it will pro- change(.hat
Minnesotans use more than 10 tons of to raise the profile of gravel, sand and mote more mining and help their industry, Suburban quarries are critical for con-
ic ayear,per person. rock taken front suburban quarries.They which suffers from an image problem. Gulling costs,because gravel is cheap only
It's an endangered natural resource, hope the lax—or voluntary"host fees"--• "ft's dirty and dusty. And (suburbs)
expected to be depleted locally in 17 years. will make gravel quarries more attractive don't give a damn about the jobs. They uItAV1Sh PIT'S,411
413 C MONDAY, MAY 5, 2003 LOCAL NEWS
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PHOTOS BY CRAIG BORCK,PIONEER PRESS
Dave Edmunds, manager of the materials division at Edward Kramer& Sons, a limestone mine in Burnsville, and other local
gravel miners support a proposed tax on gravel and aggregate.They say it will help promote more gravel mining in the Twin Cities.
Gravel pits
,,_„„„„„n„ a ,.ntak •,
_;r—: w n I��prwr
i,...5 , � fti ',4.‘,..-.7:..1“,:;♦ I {I t 1
when it.is close. A Ion of gravel not guile ; ti Y _ Jr ell .' t n gr ��pi
a halhlub full - often costs from $10 to$13 t ': ,, . , ` ' .,. , I /49
locally, but Fischer he said if he has to haul it k ir'iae k,.t �!`1 ra1.1 -r r i t f '
nun e than 25 miles the cost goes up 50 per t nj 5, ; r' ` rc k it ( °,,5 ar 4 - n le
pq ,
{v i i i t,f 1 G l t F g L g Yr � 1 r t
c.eu. In other r Ices,a '20 mile haul ran don t g,, , u � „ :(
�yy.�{ p@p l ��p ,r �,
tile the Lost Y.{I , !I{.S$,AI.E4t' >>l.t ...r� If !,,1,40,d/ 141.9 , i r i a al p�
"So, its Dot. so simple as saying we are . �, r �jYinne j *,,,: { , °' '`{ r""" ' 4, t ; t.
A
.lust going to Rive County to haul it up, said y. ,x, 1'..i..6.1.1:,,.,., I. ' 4.1r.
Rnrusville City Manager Craig Ebeling,who rf ' i f '
favors a in coil,per ton lax as good public 1 r T �. 11 tit .1 ' + 3 ■
policy u� " 11 ! r,. �_----_
"We are all consumers of aggregate," he The huge Kramer mine in Burnsville will be filled with water when all the rock has been
said, in our highways, basements and air- dug out.
ports.
Other aggregate costs, such as permits, build on top of the depleted areas. son said that although metro area suppliers
add to the price of gravel. "We have had Iverson said I hat's what happened in favor it, rural aggregate suppliers don't
• more price increases in the past 10 years many high profile shopping areas,including wan(. a new tax that primarily benefits sup
-
than in the an before that,"said Fischer. much of Apple Valley's downtown, South- pliers in the Twin Cities.
A gravel tax is a hot issue in Dakota dale center in Edina, and Maple Grove's If taxes can't be raised, said Knutson,
County, source of almost one-third of the Arbor lakes. voluntary "host fees" could be negotiated.
state's supply. '('here, primordial glaciers Allowing an area to be mined is alurost Several south-metro suppliers said they'd
dumped the crushed rock perfect for con- like a land trust, where valuable land is set support a host fee system or a tax increase
struction uses—in the right combination of aside for the 15-to 40,year life of a quarry. -- provided it is statewide and goes to the
sizes to fit together,rock by rock,to remain "'Phis is an interim use," said Iverson. host cities.
stable in such places as road lweds. "The community will get reimbursed, and David Edmunds, manager of the Inateri-
But those supplies are dwindling. Gravel will get the land back,in as good a shape as als division of Edward Kraemer & Sons in
in the northwest suburbs should run out by it was before,25 to 30 years later" Burnsville, said a fee or new taxes would
2008,and the southern metro gravel pits,by 'I'o woo the suburbs and increase sup- address a key objection to new gravel
2020. It's because Minnesota's consumption plies, Sen. Dave Knutson, It-Burnsville, mines. Ile recalled a Rosemount official,
is soaring to about 50 million tons a year,up _ __ _ _ when asked about allowing a gravel quarry
50 percent from the 1980s. - in that city in 1999,responding,"What's in it
When metro area supplies are spent, in Dakota County, primordial for us?"
said 'Todd Iverson, lobbyist with the Aggre- Steve Iledburg of Hedberg Aggregates,
gate and Ready Mix Association of Min- glacie1: s dumped the crushed whose family has been in the aggregate
Iesota, "'Then you are looking a1. Hauling it business locally for about 811 years, said
100 miles or more." rock pealed. for construction some form of payback was only fair,because
Said Fischer: "If you I.hink cousl.ruction host cities incur some costs for such things
costs are prohibitive now,just wait." Uses, such Cl s road beds. as road maintenance. g,.
The end of dirt-cheap gravel would mean "It actually would be good for industry,"
higher costs for everything from sidewalks said Fischer
to skyscrapers. But many suburbs are favors a 10-cent:per-ton aggregate tax. "Everyone focuses on the digital imfur-
paving over gravel supplies. "We put$1 billion into road construction, notion age. But if you don't have roads,
Iverson said, for example, that Woodbury and we have a bonding bill. We need aggre- sewer and water, if you don't have that old
had some of the best gravel in the state,but it gate," Knutson said. "This would allow the low-tech infrastructure,"he said, "you can't
was being forever sealed off by develop- development of a precious commodity." survive."
meths like Wedgewood and Dancing Waters. Knutson said his aggregate tax probably
It's better planning,said several land-use wouldn't pass this legislative session partly Bob Shaw can be reached at bshaw @pioneer
experts, to get the gravel out first, then because of a lack of industry support. Iver- press.cone or(651)228-5433.
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