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12-21-2011 ECC MIN MEETING MINUTES OF THE ELK RIVER ENERGY CITY COMMISSION HELD AT ELK RIVER CITY HALL • ELK RIVER, MN WEDNESDAY, DECEMBER 21, 2011 Members Present: John Setala, Ryan Setterholm, Tim Steinbeck, Scott Hagen, Vance Zehringer, and Tim Rybak Members Absent: Ron Touchette, Councilman Matt Westgaard, Stephen Rohlf, Dennis Chuba, and Bruce Sayler Staff Present: Rebecca Haug, Environmental Administrator Nicki Blake-Bradley, Environmental Technician Clay Wilfahrt, Economic Development Assistant Annie Deckert, Economic Development Director Others Present: John Anderson, Faribault Foods Dave Zimmerman, Faribault Foods Jennifer Athman, Salk Middle School Kelly Prusak, Salk Middle School 1. Call Meeting to Order Chair Zehringer called the meeting to order at 8:32 a.m. and welcomed representatives from Faribault Foods and Salk Middle School to the meeting. Introductions of the commissioners • followed. 2. Consider December 21, 2011 ECC Agenda MOTION BY COMMISSIONER SETTERHOLM AND SECOND BY COMMISSIONER STEINBECK TO APPROVE THE AGENDA AS SUBMITTED. ALL IN FAVOR. MOTION CARRIED. 3. Consider November 16, 2011 Minutes MOTION BY COMMSSIONER AND SECOND BY COMMISSIONER TO APPROVE THE November 16, 2011 MINUTES WITH NO CHANGES. ALL IN FAVOR. MOTION CARRIED. 4. Faribault Foods High Five Award Presentation John Anderson and Dave Zimmerman of Faribault Foods were present to receive the Triple High Five award their company earned in 2011 for earning more than 30 points on the High Five program. Prior to presenting the Triple High Five award to the gentlemen, Chair Zehringer discussed the projects that Faribault Foods has implemented through grants, rebates, or suggestions from Elk River Municipal Utilities. Faribault Foods has received rebates totaling $35,000 for the upgrades and changes they have made. All together, the changes have had a net savings of 500,000 kilowatt hours and will save Faribault Foods approximately $50,000 per year. • An additional change that Faribault Foods plans to implement at their company for additional energy savings is installing fluid coolers on the roof to use cold winter air rather than electricity for cooling in the plant. Page 2 Energy City Commission Minutes December 21,2011 5. Salk Middle School Presentation Ms. Kelly Prusak (curriculum coordinator for Salk Middle School) was present with Ms. Jennif Athman (Principal, Salk Middle School) to discuss the STEM (science, technology, engineerin , mathematics) program at the 6 — 8th grade Magnate School. Ms. Prusak did a power point presentation highlighting each of the aspects. She invited the Energy City Commissioners to be involved in Salk's "Engineering Week" scheduled for February 21 — 24th. This is the school's fifth year as a STEM magnate and started as a result of a grant for desegregating the Osseo school district. Students come from communities as far south and west as Rockford and Buffalo. The bus rides can be up to an hour long, but Ms. Athman jokes that "the ride is worth it". There will be a Science Fair from January 10 — 12th that people can volunteer to be judges for as well. The judging times are two hour blocks and all interested people are invited to participate. Commissioner Steinbeck expressed interest on the part of Great River Energy. Ms. Deckert commented that she could put Salk administrators in contact with other manufacturers. Ms. Prusak thanked everyone and stated "Anything hands on, the kids LOVE". 6. Business and Energy Expo Discussion The decision has been made to tentatively merge the Energy Expo with the Business Expo for a one year trial period to "see how it goes". It will now be called the Business and Energy Expo. The expo will be held on March 25th from 10 a.m. — 2 p.m. instead of Saturday, March 10t . There will be an "Energy Alley" in the gymnasium. The Chamber of Commerce is looking to the commission for assistance with advertising and assistance with permits (for example, signs on City property). There will be different back drop curtains for the Energy Alley and possibly an archway with LED lights. Because the Energy Alley area will be limited in size (two aisles with a central opening to facilitate movement between the aisles), there will be an application process to be able to get into the Alley. Each booth must be manned. ECFE (Early Childhood Family Education) will continue to have children's activities in the Community Room. The Community Education Adventure Club will participate once again but it hasn't been determined where their exhibits will be located yet. Chair Zehringer questioned fees, especially regarding non-profits ($155 Chamber cost vs. $25 Energy Expo cost). Discussion followed that there were only 5 — 6 non-profits last year. Another meeting will be held following the New Year to figure out details. Chair Zehringer expressed concern over losing our identity. 7. Project Conserve Phase Ill Update Chair Zehringer reported there are approximately 50 audits scheduled, most of which are Level 2 (with blower door and infrared tests). They have been finding typical maintenance issues such as not having windows latched. Many homes have less insulation than preferred in the attic. 14 inches (R-38) but auditors are seeing a few with 6 — 8 inches. Some settling may have occurred, but additional insulation is a recommendation as a result. The audits have been scheduled out into February. An intern will be starting on January 9th. Her name is Rachel King and she will be working primarily on the organics program but will also help with the energy portion of Project Conserve. • She will be working through the end of April. Page 3 Energy City Commission Minutes December 21,2011 Ms. Deckert questioned whether any of the downtown businesses are involved in Project • Conserve. Chair Zehringer commented that there are a couple of businesses interested but there is no certification program for commercial audits so the auditors are not "official" commercial auditors. Discussion followed regarding differences between residential and commercial audits. Different equipment is necessary for commercial audits. Commissioner Setterholm shared that commercial audits through Centerpoint Energy are done by engineers. Downtown businesses may receive an energy "walk through" versus "audit". 8. Photovoltaic Discussion — Scott Hagen Commissioner Hagen discussed a concept with micro-inverters that monitor energy consumption and production regarding solar (photovoltaic) systems. He stated that there is direct current (DC) at the panel and alternating current (AC) output at the inverter. The output is then sent directly to the electrical grid. The set up Commissioner Hagen discussed involves one micro-inverter per 60 cell panel which essentially makes each panel its own array so that they can operate at optimum efficiency. He explained that with a central or string inverter, the array is only as efficient as its weakest panel so if one panel is functioning at less than 100% (for example if a leaf falls on the panel), they all function to that new, lower level (rather than only the panel with the issue being at lower efficiency). Currently there is only one known Enphase micro-inverter grid-tied system to Elk River Municipal Utilities in Elk River (north of town). Discussion followed regarding companies that are working on • AC arrays, load factors, and future costs of electricity due to old coal plants being closed. Panel costs as well as inverter costs are coming down. Commissioner Hagen commented that passive systems do help conserve energy. On the wholesale side, cost is below two dollars per watt. It was commented that the cheapest rates seen for installed (central inverter) systems is $7/watt. Further discussion followed regarding system sizes. China is planning a 2-gigawatt solar photovoltaic system. The largest in the United States is in Arcadia, Florida (25 Megawatts). Commissioner Hagen answered questions regarding the micro-inverter approach. He stated that each one syncs to the grid system and they are powered by the generated DC voltage, but require AC voltage present to function (booting up at 24 volts DC, then warming up and starting) so if the electricity goes out, the inverters de-energize and go dormant. The micro-inverters are purely grid- tie and do not lend themselves to a battery storage system like the DC central inverter projects. Micro-inverters cost between $130 - 150 each and are warranted to 20 — 25 years. A comment was made that rebates artificially keep the costs high but do help keep the industry going. Elk River Dave Raymond installed a 4 KW system for $45,000 (with rebates). A comment was made that on a 4 KW system, a person would not want to have an electric stove, water heater, or dryer. • 9. Other No other topics were discussed. Page 4 Energy City Commission Minutes December 21,2011 10. Schedule Next ECC Meeting and Identify Agenda Items The next meeting will be held January 18, 2012 at the Elk River City Hall in the Upper Town 0 Conference Room from 8:30 a.m. — noon. Because of the change in length of time, this will be a special meeting so no items will be able to be added to the agenda. Items for the agenda include: • Approval of December 21, 2011 Minutes • Business Series Update/Energy City Business of the Year • SWOT Analysis Elections for officers will be held in February. 11. Adjournment MOTION BY COMMISSIONER SETTERHOLM AND SECOND BY COMMISSIONER SETALA TO ADJOURN THE MEETING. ALL IN FAVOR. MOTION CARRIED. The meeting was adjourned at 9:58 a.m. Minutes p epared by Nicki Blake-Bradley ..._---..--- j..-----/- Tina Allard City Clerk • 4r,,,, _,/,_ _ _, Vance Zehrin• '-r Energy City ' ommis 'on Chair Ill