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6.0. SR 11-09-1998ELK RIVER MUNICIPAL UTILITIES Item ~6 322 King Avenue Elk River, Minnesota 55330 Phone (612) 441-2020 Fax (612) 441-8099 Octot ;r28, 1998 To: Elk River City Council & Elk River Municipal Utilities Commission Hank Duitsman, Mayor George Zabee Daryl Thompson John Dietz Larry Farber Jim Tralle Roger Holmgren From: Bryan C. Adams Subject: Proposed Gas Turbine Project A joint Elk River City Council/Elk River Municipal Utilities Commission meeting is scheduled for Monday November 9, 1998 at approximately 7:00 p.m. at City Hall to discuss this proposed project. Steve Shurts of UPA, Jim O'Meara of Briggs & Morgan, and David MacGillivray of Springsted will be present at this meeting to present and answer questions on their portion of this project. Enclosed is the following information for your review: 1) UPA Letter of Intent for Peaking Facility dated August 17, 1998. 2) Proposed site plan for this peaking facility. 3) Letter from Minnegasco dated September 28, 1998. 4) Letter to Sherburne County Assessor dated July 30, 1998 with site map and his response dated July 31, 1998. 5) Letter dated October 7, 1998 from Springsted. 6) Letter dated October 8, 1998 from Briggs & Morgan. 7) Required Resolution drafted by Briggs & Morgan. A project of this nature makes extremely good sense, along with solving some of staffs' concerns for the Elk River Municipal Utilities (ERMU), although the project cost continues to rise and is approaching $20,000,000. Elk River Municipal Utilities owns the necessary land for this project which is directly adjacent to our West Substation complex. The necessary Northern Natural Gas transmission pipeline and UPA's 69 Kv electric transmission line are both directly adjacent to this property, which is critical to a project of this type. As staff has stated earlier, there is little question that we will experience an electric transmission/generation failure due to wholesale wheeling and/or lack of adequately sized transmission/generation facilities. Appropriately sized electric generation on our system solves ~his issue. This proposed project gives ERMU the opportunity to resolve our 10 year rolling all requirements power purchase contract with AEC/UPA. This proposed project will allow us to make a small margin on the order of approximately $250,000/year, (shared savings from Property Tax deletion). This will go a long way in helping to reduce our electric rates. The pros and cons for this type of project are as follows: PROS 1) Secure source of Power in case of system failure 2) Opportunity for $250,000 ± annual margin 3) Opportunity to resolve AEC/UPA Power Contract 4) Good cooperative effort between Coop and Municipal 5) No added personnel required CONS 1) Large debt ($15,000,000 +) 2) ERMU responsible if UPA defaults (minimal risk) 3) Long term Contract of 20 to 30 years. Bond market will ultimately dictate if this is prudent. From staffs' perspective this appears to be a win-win situation for both ERMU and UPA support continuing this project. August 17, 1998 United Power Association P.O. Box 800 o Elk River, MN 55330-0800 · (612) 441-3121 Bryan C. Adams, P.E. General Manager Elk River Municipal Utilities 322 King Avenue Elk River, MN 55330 Subject: Letter on Intent for Peaking Facility Dear Mr. Adams: This is intended to serve as a non-binding letter of intent between Elk River Municipal Utilities (City) and United Power Association (UPA) outlining our general agreement to jointly develop and operate a combustion turbine for peaking and reliability purposes within the City of Elk River. For agreement purposes, we are assuming that one gas turbine would be constructed which would have a firm capacity of approximately 35 to 45 megawatts. The estimated total construction cost is roughly $15 million. It is understood that the precise capacity, design and cost would be determined through the design development phase. The City has identified a site that it owns adjacent to the Elk River Municipal Substation near Proctor Road for location of this peaking plant. Based on these assumptions, the following outlines the key elements of the agreement: The City would be responsible for financing, owning and insuring the turbines and other related facilities. UPA would agree to enter into a guaranteed capacity purchase agreement based on annual payments as set forth in Exhibit A. The annual capacity purchase payments shall be made in equal monthly installments with the first payment due 30 days following successful acceptance testing of the unit. The City and UPA would jointly develop the design and specifications for the turbine facility and related elements, with each party having the right to review and approve the final plans. A Touchstone EnergyTM Partner F,T, ~! W,T, I W,T, UPA 69KV LINE m-- n~ 46~. M,N, t 165' ~-~ DISTRIBUTION LINE A Division of Houston Industries September 28, 1998 Mr. Bryan Adams General Manager Elk River Municipal Utilities 322 King Avenue Elk River, MN 55330 Re: Peaking Turbine Plant Dear Bryan: This letter is intended to confirm our ability and interest in serving your proposed combustion turbine. Minnegasco will be able to deliver 625MCF of natural gas to your 50 mW turbine at a minimum of 400 psig during the summer, (non heating months). This assumes a heat rate of 12,500 Btu per kW. During the heating season, depending on Northern Natural Gas infrastructure, 350 psig should be available, down to approximately 0 F outside temperature. Further temperature models may be developed if necessary, and will be dependent upon several factors. There are two possible options for providing service to this project, to either pay upfront or through a negotiated contract for delivery services. OPTION 1 CONTRIBUTION UPFRONT The required contribution to install the tap, meter set, and all piping/controls is $350,000.00 OPTION 2 DELIVERY SERVICE AGREEMENT If it is your desire to reduce the capital cost of this project, we may enter into a contract that will require a certain usage or payment or combination of the two, to provide a return to Minnegasco. If this option is your preferred method, we will need to discuss a mutually beneficial structure and timeframe. Once this investment is satisfied, we will work with you to creatively price our delivery service to make this turbine attractive to the market. When you are using gas at this facility, you may either transport your own gas, or take our sales service supply. Minnegasco's sales service supply should reduce supply cost, as our sales service typically s~gn,,,c,~m,y u~, ....... "~' with no u ..... ,,,g or rese.'~'atic, n fees, or nc.m/nation.-o~qu..';-o~m.n,~ *ts. We appreciate the opportunity to work with you on this project, please let me know when you need additional information. Sincerely yours, ~" Jim Radford Energy Sales C.C. Boyden Kneen, Minnegasco 800 LaSalle Avenue P.O. Box 59038 Minneapolis, MN 55459-0038 1998 ELK RIVER MUNICIPAL UTILITIES 322 King Avenue Elk River, Minnesota 55330 Phone (612) 441-2020 Fax (612) 441-8099 Mr. Ty Bischoff Sherbume County ~r Sherbume County Courthouse 13880 Hwy 10 PO Box 320 Elk River, MN 55330 Dear Mr. Bischoff~ The Elk River area has experienced and will continue to experience large growth. The ongoing developments with restructuring the electric industry has complicated the supply side of the electric industry. The two factors of fast growth and industry restructuring has raised some concerns about Elk River Municipal Utilities ability to provide this area with reliability and adequate electric: power and energy. To solve this concern, Elk River Municipal Utilities is exploring the installation of a gas turbine electric generation facility in Elk River. This facility would supplement our existing diesel generating facility on Main Street across from the Elk River dam. The proposed facility would be constructed at the location shown on the attached map. Necessary electric transmission facilities and gas transmission pipe line for fuel are akeady directly adjacent to this property. The property is already owned by Elk River Municipal Utilities. The cost of equipment for this facility including gas turbine, electric substation, alternate fuel storage facility, etc. is approximately $15,000,000 and would be owned by Elk River Municipal Utilities. Initial cost along with ongoing operating and maintenance costs are a large concern. Because this would be owned by the Elk River Municipal Utilities, we assume this facility would be exempt fi.om property taxes. To finalize our financial modeling of this proposed project, would you confirm in writing the tax exempt status assumption of this project at your earliest convenience. /"'"-~t regards, ,-, .? , lgryan C. A~ P.E. ~ne~ ~~ cc: File F:l'lc I1 ,,JUNI~ F:~lc PARK July 31, 1998 Bryan C Adams General Manager Elk River Municipal Utilities 322 King Ave Elk River, Mn 55330 Sherb ASSESSOR TYRUS L. BISCHOFF, S.A.M.A. Bryan, I have received your letter of inquiry concerning the installation of a gas fired generating facility to be built in Elk River and owned by Elk River Municipal Utilities. I believe the proposed facility at this time would be exempt from property taxes based on the scenario you have presented to me. Sin~ ~ T. L. Bischot~ Sherbume County Assessor S.A.M.A. P.O. Box 320 13880 Highway 10 Elk River, MN 55330 241-2880 ~ 1-800.438-0577 ~ Fax: 241-2875 85 E. SEVENTH PLACE SUITE 100 SAINT PAUL, MN 55101-2143 612-223-3000 FAX: 612-223-3002 October 7, 1998 SPRINGSTED Public Finance Advisors Mr. Bryan Adams, General Manager Elk River Municipal Utilities 322 King Avenue Elk River, MN 55330 Re: Proposed Gas Turbine Project Dear Mr. A, dams~.' ~,r -~ ~ You have asked us to comment on the potential linkage of a proposed taxable electdc revenue bond issue of approximately $15.0 million with the City's general obligation credit rating as well as the need to levy property taxes for debt service. It is our understanding that the Utility intends to negotiate a contract with one or more regional cooperative generation utilities First, we would like to address the property tax question. These are revenue bonds of the utility, with no pledge of general obligation property taxing powers. The City will not be obligated to levy property taxes for these bonds. The disclosure statement to investors will clearly state this condition. The revenue bond structure allows the City/Utility flexibility in responding to debt service shortfalls. Yet, as revenue bonds of the Utility, if there were a problem in meeting debt service payments, and lacking contractual remedies, the Utility would need to set user rates at the necessary levels. For this particular issue the secudty for the bondholders and the City/Utility lies in the contract terms with the cooperatives. Secondly, this revenue bond has no direct linkage with the City's general obligation credit rating. In the event of default of the revenue bond, there may be an indirect impact. One of the basic client rating criteda is the management area, which covers the strength and rigorousness of the elected and professional officials. A contract that does not anticipate default scenarios and rigorously insulates the City/Utility would have an adverse effect on the general obligation rating, particularly given a financial default. As is described herein, the City/Utility can have reasonable assurances of very Iow probabilities for adverse impacts, if the contract with the cooperatives is well structured and due diligence is completed on the financial strength of the cooperatives. As part of this financing, we will be investigating the use of bond insurance, which would substantially reduce any potential adverse impacts. SAINT PAUL. MN MINNEAPOLIS, MN · BROOKFIELD, WI OVERLAND PARK, KS ' WASHINGTON, DC IOWA CITY, IA AND 2200 FIRST NATIONAL BANK BUILDING 332 MINNESOTA STREET SAINT PAUL, MINNESOTA 5510! TELEPHONE (612) 923-6600 FACSIMILE (61:2) 223-6450 ~ ~OFESSIONAL ASSOCIATION October 8, 1998 WRITER'S DIRECT DIAL (651) 223-6420 WRITER'S E-MAIL VIA TELECOPY & U.S. MAII, Bryan C. Adams, P.E. General Manager Elk River Municipal Utilities 322 King Avenue Elk River, Minnesota 55330 Re: Proposed ERMU/UPA Gas Turbine Project Dear Bryan: You've asked me to confirm in writing some of the preliminary opinions I've expressed to you by phone on this. The proposal is that United Power Association (UPA) and the Elk River Municipal Utilities (ERMU), through joint and cooperative action and contractual arrangements yet to be developed, would acquire a $15,000,000 gas turbine electric generator (35-45mw) which would be owned by ERMU/City of Elk River and sited on its property with convenient natural gas and transmission grid access. I am in receipt of a draft letter of intent prepared by UPA, dated August 5, 1998, outlining other aspects of the proposed arrangement. UPA would be the agent for the acquisition of this project and would provide most of the services and costs regarding its installation and operation. This peak load generator would operate on a handful of occasions throughout any given year, as demand requires. The benefits to ERMU include greatly enhanced capacity against the growing electricity needs of the City and the uncertainties of national electricity capacity as a whole. The project would be financed by ERMU/City issuance of electric utility revenue bonds; however, these bonds would not be payable from the general revenues of ERMU but solely from the revenues derived by ERMU from its contract with UPA, and quite possibly a security interest in and/or mortgage on the project. In other words, the primary security for payment of these revenue bonds would be the creditworthiness of UPA and of its contractual promises to ERMU to pay the debt service on the bonds. Based on this structure, we believe the interest on these bonds would not be tax-exempt. 988880.1 MINNEAPOLIS OFFICE · IDS CENTER · WW~.BRIGGS.COM MEMBER -- LEX MUNDI, A GLOBAL ASSOCIATION OF INDEPENDENT LAW FIRMS BRIGGS ,~, MORGAN Bryan Adams October $, 1998 Page 3 includes the "generation, production, transmission, purchase, sale, exchange, or interchange of electric energy or any interest therein or capacity thereof." In turn, Section 453.54, Subdivision 2, authorizes a municipal power agency (and an individual city acting pursuant to the resolution described above) to undertake one or more projects within or outside of the state, to acquire any interest in or any right to capacity of a project and to act as agent, or to designate one or more other "persons" (such as, here, UPA) participating in a project to act as its agent, in connection with the planning, acquisition, construction, reconstruction, operation, repair, extension, or improvement of a project. The word "person" is broadly defined in Section 453.52, Subdivision 9, to include any "private corporation, firm, partnership, [or] cooperative association .... " In regard to your proposed agreement with UPA and the question of public bidding, I note that Section 453.54, Subdivision 15, provides that a municipal power agency (or, again, a city acting under the above-described resolution) "may contract with any person, within or outside the state, for the construction of any project or for the sale, with or without advertising for bids, or transmission of electric energy generated by any project, or for any interest therein or any right to capacity thereof, on such terms and for such a period of time as its board of directors determines." Section 453.59 also appears to exempt these project costs from any public bidding requirements. Beyond that, even though the revenue bond proceeds would in a technical sense be public funds, the sole source of payment of those bonds would be the private funds provided by UPA under the contract. Regarding property taxes or payments in lieu of property taxes, in the case of a true municipal power agency, Section 453.54, Subdivision 20, does require payments in lieu of taxes in the same amount and manner as would be paid as if the property were held by private persons. I assume this provision is aimed at putting public consortiums and private electric companies on the same property tax footing, thereby avoiding competitive cost disadvantage. I also interpret this as overriding the rule which would otherwise apply, which is that the property of a tree municipal power agency (being a public body) would not be subject to property taxation. However, the rule is different for a city acting individually under this law, as Section 453.58, Subdivision 4, expressly exempts an individual city from the provisions of that Subdivision 20 and also provides, usefully here, that the sale or distribution of electric energy to private persons "shall not cause a project to be treated as not used exclusively for a public purpose." We understand that your County Assessor has preliminarily concurred on this point. Section 453.55 authorizes the type of bonding here envisioned and specifically authorizes a pledge of the revenues derived solely from the individual project being financed as well as a 988880.1 FROM BRIGGS & MORGAN BRIGGS ]VI[ORGAN (WED) ll. 04'98 10'12/ST. ID'Il/NO. 3561732868 P 2/5 3,32 MINNESOTA STREET SAINT PAUL. MINNESOTA 5filOI TELEPHONE [612) 27..3-6600 FACSIMILE (612} 223-~45o .(OFESSIONAL Af. SOCLatTION November 4, 1998 wRiTER'S DIRECT DIAL (65 I) 223-6420 WRITER'S E-MAIL VIA TELECOPY & U.S. MAIL Lori Johnson City Finance Director Elk River City Hall 3065 Orono Parkway P.O. Box 490 Elk River, Minnesota 55330-0490 Bryan C. Adams, P.E. General Manager Elk River Municipal Utilities 322 King Avenue Elk River, Minnesota 55330 Dear Lori and Bryan: Please find enclosed a resolution for the November 9 meetings of the City Council and the Elk River Municipal Utilities Commission. I would like this resolution to be adopted by separate action of each of those governing bodies. I am plarming to attend the meetings, which I understand begin at approximately 6:45 p.m.. As I have mentioned in previous correspondence, Chapter 453 of the Minnesota Statutes provides a number of powers and privileges which are useful in structuring and completing this envisioned project, as I understand it. The adoption of this resolution is not a commitment to the project. That would come only with the execution of a duly approved agreement. Please note that, if adopted by both the Council and the Commission, you will need to publish the resolution as soon as possible once in the City's official newspapec. In that regard, Minnesota Statutes, Section 453.58, Subdivision 2, provides: "No action may be brought and no defense may be interposed in an action brought more than 30 days aPter publication of the resolution, placing at issue the validity of any provision of the resolution or the power of the city to make any contract or to issue any bond, note, or other obligation authorized thereby." 99637]. MINNEAPOLIS OFFICE · IDS CENTER · WWXI(.BRIGGS.COM 'MEMBER -- LEK MUNDI, A GLOBAL ASSocIATION OF INDEPENDENT LAW FIRMS RESOLUTION 98 - A RESOLUTION OF THE CITY OF ELK RIVER RESOLUTION APPROVING THE EXERCISE OF POWERS UNDER MINNESOTA STATUTES, CHAPTER 453, RESPECTING A CERTAIN ELECTRIC POWER GENERATION PROJECT Be It Resolved as Follows: 1. Recitals. (a) The City of Elk River, Minnesota, in cooperation and conjunction with the Elk River Municipal Utilities Commission (collectively, the "City"), proposes to enter into contract(s) with United Power Association, its successors and/or other persons (collectively, "UPA") to facilitate the completion of a certain electric power generation project (the "Project"). (b) The Project would consist of the construction and completion of a 35 to 50 megawatt gas turbine electric generator in the City. The cost of the Project is currently estimated to be $18,000,000. (c) The Project would be a peak load generator owned by the City. (d) It is proposed that UPA, in consultation with the City, would act as the City's agent for the planning, permitting, acquisition, completion, and operation of the Project, subject to certain rights of the City to operate the Project when not used by UPA. The Project, as a peak load generator, is expected to be operational only on occasions throughout any given year when demand for additional electric energy so requires. The City expects to benefit from the Project by enhancing its capacity against the growing electricity needs of the City and against uncertainty of national electric capacity as a whole. (e) The City and UPA would enter into joint and cooperative agreement(s) (collectively, the "Agreement") specifying the respective rights and obhgations of the City and UPA. (f) The City would issue revenue or similar bonds or notes (the "Bonds") to finance the Project. These Bonds would be payable from revenues derived from UPA under the Agreement and may be secured by a mortgage or other suitable security interest in the Project. The Bonds would not be a general or moral obhgation of the City, would not be secured by any of the City's existing municipal electric utility assets, and would not be payable from or a lien against the rates and charges imposed by the City on its municipal electric customers. 2. Authorization. It is hereby resolved and determined pursuant to Minnesota Statutes, Section 453.58, that the City may exercise such powers and enjoy such privileges provided in Minnesota Statutes, Chapter 453, as may be desirable or necessary in connection with the City's participation in the Project, as generally described hereinabove, including without limitation the designation of UPA as agent of the City, the entering into the Agreement, and the issuance of the Bonds in aid of financing and completing the Project. 3. Approval and Publication. This Resolution has been duly adopted by the City Council of the City of Elk River, Minnesota, and by the Elk River Municipal Utilities Commission, respectively, at duly called and regularly held meetings thereof on November 9, 1998, and shall be published once in the official newspaper of the City as soon as conveniently possible pursuant to Minnesota Statutes, Section 453.58, Subdivision 2. This Resolution in itself is not intended and shall not be interpreted as a commitment of the City to the Project, which shall be contingent upon the execution of the mutually acceptable Agreement. Passed and adopted by the City Council and the Elk River Municipal Utilities Commission of the City of Elk River this 9th day of November, 1998. ELK RIVER MUNICIPAL UTILITIES COMMISSION ATTEST: George Zabee, President ELK RIVER CITY COUNCIL ATTEST: Henry A. Duitsman, Mayor Sandra Peine, City Clerk THE ELK RIVER AREA CITIZENS LEAGUE October 26, 1998 To: City Council Members Enclosed is a copy of the most recent report of the Elk River Area Citizens League · -entitled Grassroots Participation: A Work In Progress, Sherburne County, Minnesota. The study has been formally presented to the Sherburne County Board Of Commissioners, and they are in the process of implementing the recommendations. This report is also being forwarded to elected officials of the cities in the County to keep you informed of initiatives on the county level, and some of the recommendations may also be applicable to cities. If you would like more copies, or if you would like a presentation on this study by a Citizens League member, please contact Rita Johnson at (612)'t41-4547. Sincerely, Bob Minton GRASSROOTS PARTICIPATION: A WORK IN PROGRESS SHERBURNE COUNTY, MINNESOTA An Elk River Area Citizens League Report August, 1998 INTRODUCTION The mission of the Elk River Area Citizens League is to foster a more informed public, resulting in better decision-making for area residents. The League's purpose is to research topics and sponsor public forums that have social, political or economic concern to the greater Elk River community. League members are residents of Sherbume County. The League's commitment to local government, its effectiveness, and the strength and character it gives a community, led members to select the Sherburne County committee structure as an important study topic. Citizen participation in local government is the basis for "grass-roots" democracy at its best. With this in mind, the League set out to evaluate the County committee structure as a significant way to encourage citizen participation, and to provide citizens with an opportunity to learn about, and learn how to, impact local decision-making. Records for Sherburne County indicate that our county employs a significant number of committees for a variety of projects and issues. The purpose of this study is to discover how these committees contribute to the overall quality of county government, and how effective they are at involving citizens in the "grass roots" process. This study will also outline how committees are formed, monitored and evaluated in terms of achievement of purpose. Method of Study The League employed several different techniques to collect information used in completing analysis, identifying key issues and trends, and finally arriving at conclusions and recommendations. Interviews were conducted with the County Administrator, David Loch. The list of County committees was acquired and each committee was categorized as to purpose and membership. Committees were then sent a written survey to learn more about how they came to exist, how they operate, and how members are recruited. Interviews were conducted with various committee members, chairs and also with several County Commissioners. Six other counties were contacted to learn how they conduct their committee process. In several cases, written procedures and guidelines were collected from other counties. The data collected was evaluated for characteristics displayed in common, key issues, and weighed against the purposes of this study. The study presents the Key Findings, Analysis, and finally, Recommendations for change which the League believes will improve the level of citizen participation, the overall effectiveness of committees, and perhaps the basic quality of the local government process itself in Sherburne County. Additional benefits we may realize include a) broader participation in county committees, which may encourage more citizens to consider running for local offices, and b) a greater understanding of the governmental process, which may encourage more citizens to vote. The Citizens League wishes to thank those committee members, county employees and Commissioners who contributed to this study. The League also wishes to thank the Three Rivers Foundation for the award of a grant of funds for printing costs. KEY FINDINGS 1. The County. list of committees are not all committees of the County The Sherburne County Committee List contains information on 68 committees, but "committee list" turns out to be somewhat of a misnomer. Instead, the list appears to contain a broader group of committees or meetings of organizations with county commissioner assignments, and for which county commissioners and other citizens are authorized to receive payments from Sherburne County for attendance. In addition to County committees, the list includes - joint powers governing boards, where Sherburne County cooperates with other units of government for specific purposes, such as the Sherburne/Benton Board of Health Services - state and regional organizations of which the County is a member, such as the Minnesota Association Of Counties - some private not-for-profit organizations, where one or more of the Commissioners is a member of the board of directors, such as Options, Inc. or TRI-CAP, Inc. - some internal management committees, such as the Personnel Committee or the Vending Committee - the councils, governing boards and committees or political subdivisions, mostly cities and townships, where Commissioners may be asked to participate, and - the Fair Board, which does not have County Commissioner membership. When all of the above are subtracted from the list, it appears that Sherburne County has about 24 committees, and of these, the following ~ invite the participation of citizens or other professional individuals who are not considered part of the County personnel: Board Of Adjustment Child Protection Team Children's Mental Health Coordination Council Developmental Disabilities Advisory Committee Extension Committee Interagency Early Intervention Committee Parks, Trails and Open Space Committee Planning Advisory Committee Sherburne Co Alcohol/Drug Advisory Committee Sherburne Co Child Abuse & Neglect Prevention Council Sherburne Co Economic Development Alliance Sherburne Co Mental Health Advisory Council Sherburne Co Tree Board Transit Committee Waste Management Advisory Board Water Plan Advisory Committee These committees along with the eight committees listed under 2., which do not currently include citizen participation, will be referred to as the County Committees. For purposes of this study, the Policy-Ways and Means Committee of the Board of Commissioners will be categorized as an internal management committee. In addition, the six following regional committees also involve citizen participation from this County as well as from other units of government, for a total of 22 committees with citizen participation: Central MN Mental Health Board Extension Mississippi Corridor Cluster Committee Great River Regional Library Private Industry Council Sherburne/Benton Advisory Committee To Joint Board Of Health Sherburne/Benton Board Of Health Services 2. Eight of the County_ committees consist of some or ali of the Commissioners and/or County. personnel. Four of the County committees consist of all the County Commissioners acting in a different capacity as the Board of Health, the Housing and Redevelopment Authority (HRA), the Noxious Weed Control Appeal Committee and the Ditch Authority. This practice is in contrast to some of the surrounding counties. In Washington, Dakota and Isanti Counties, for example, citizens are appointed to serve on both Housing and Redevelopment Authorities and the Noxious Weed Control Appeal Committees. In addition, two committees consist of some of the Commissioners: the Emergency Management Plan Of Sherburne County, consisting of 4 Commissioners, and the Public Defender Board, consisting of 2 Commissioners. The Child Placement Administrative Review Committee members are all staff, and the Committee On Corrections consists of nine County staff and one Minnesota Department Of Corrections staff. 3. Each County_ Commissioner is appointed to a rather large number of committee and organizational meetings. Each of the County Commissioners is appointed to an average of approximately 20 committees or organizations, in addition to the meetings of political subdivisions within each Commissioner District. For each meeting attended, the Commissioners may receive a per diem payment, but not more than one per diem each day. Some of the committees were classified by the Citizens League as internal management committees, consisting mostly of staff or other County personnel. 4. For most committees, there appears to be no public advertising to attract new members t$ fill vacancies. Whereas all appointments to County committees are ultimately made by the County Board of Commissioners, the responses to many of our questionnaires would seem to indicate that being able to get on a committee depends on whom you know. Members of the Planning Advisory Commission are recommended by Township Boards, and the Interagency Early Intervention Committee has members appointed by participating agencies and asks parents to volunteer. Most other County committees appear to rely on current committee members or staff seeking volunteers to fill vacancies. Some committees seek members with specific professional skills or who hold certain positions in other organizations. The County seems to lag behind other units of government and other counties in this regard. Those governments advertise widely and effectively so that interested individuals may apply, any required qualifications are listed, and criteria for selection are utilized. 5. The length of terms on the County. committees vary. from one year to no limit. Most of the County committees have no limit to the length of time members can serve on a committee, but there are some exceptions. The Board of Adjustments stipulates two three-year terms as the limit, the Planning Commission has three-year terms, but the number of terms to be served is vague as two or three, and the County Extension limit is one year for the youth representative and three years for adults. Most other respondents to our questionnaires indicated that there was no limit or it was up to the individual member. 6. Establishing goals and conducting evaluations are not a formalized process on most County. committees. When it came to the questions on establishing goals and conducting evaluations, some respondents to the League's questionnaires did not give an answer, and other responses were vague. The purpose of some committees is to react to requests from citizens, and formulating goals may seem to be beyond their mission. The County ExtensiOn Committee indicated that it has a public evaluation of committee activities at the last meeting of the year, but no other County committee cited a formalized process for evaluation. 7. There is some variance among County. Committees in per diem payments for attendance. The payment or the value of per diem stipends is beyond the scope of this study, but there appears to be a lack of consistency inper diem payments. The payment for attendance for most of the County committees is $30 for citizens, but there are a few at $15 and others with no payment. 8. There are some differences between the committee structure of Sherburne County and the committee structure of some of the surrounding counties In comparing Sherburne County committees with several surrounding counties, we found more similarities than anticipated. Sherburne County does use citizens for 16 significant committees, similar to Dakota's use of 13 citizen advisory committees with commissioners and staff. Theper diem range is comparable for most ($30 - $55) with the exception of the $15 paid to those in Sherburne County's Alcohol/Drug Advisory Committee. Notable differences include the degree to which citizens are on committees by commissioner appointment as opposed to satisfactory qualifications as reflected on applications. Dakota County's application for selection includes questions on whether applicants are fi-om organized labor or special interest committees, or from a large small or minority business in selecting for the committee for the work force council. Other such specific questions are raised for other committees. In Sherburne County, there is no uniform application process. Sometimes, the only questions asked are: "Would you consider serving on the (blank) committee?", and "Can you make the meetings?" According to the County Administrator, in asking a citizen to serve, the Board of County Commissioners undoubtedly explains the mission or committee charge and would select those individuals with some knowledge of the committee's agenda. Also in this County, announcements of vacancies are published in the newspapers for the Park, Trail, and Open Space Committee, but not for the other standing committees. Announcements were also published for membership on the temporary Cox Property Committee. Other counties also offer a definite member orientation with a staffliaison. Members are made well acquainted with the committee's mission, responsibilities, expectations and means for communication. Finally, accolades go to Dakota County for the most meaningful efforts to encourage citizen participation on committees. It makes available the clearest, most useful picture in print. It spells out the full picture of their county's committee work: the application, citizen advisory membership policies, open appointments policy, as well as the list of the citizen advisory committees with number of citizens/district and contact. ANALYSIS Sherburne County obviously needs a large number of committees, because of the complicated nature of county government. It is not the purpose of this study to comment on the structure or mandates of county government. Those issues have been studied by other organizations, including some major studies by the Citizens League of the twin cities area. The purpose of this study is to explore how the current committees contribute to the overall quality of government in our local county, and it will focus on what the Citizens League considers the 24 County committees and the 6 regional committees with citizen participation. The responsibilities of county government, and of the county commissioners as its governing body, is extremely varied and serious, and the position of county commissioner is much more powerful than most people realize. In the Citizens League opinion, therefore, the quality of county government will depend partially on how involved and interested residents become in this level of government. 1. Current practices leave the impression that citizen participation in County. decision making is not taken very. seriously, Usually, there are two good reasons for involving a number of people in a decision making process: 1) to affect the quality of decisions, and 2) once decisions are made, to affect the breadth and depth of acceptance of the decisions. With the current practices of attracting membership, the lack of goals and evaluations, and the number of committees with the exclusive membership of Commissioners and other County personnel, it would be very advantageous for the County to give some serious attention to the benefits of a broader citizen participation. The impression is all too clear that certain mandated committees might legislate citizen participation, but that there will be a minimal effort to enforce it. A good citizen participation program might necessitate several courses of action. First of all, a list of authentic County committees, with citizen participation, could be maintained, and the separate Sherburne County Committee List could be renamed to better reflect its purpose. This would avoid the impression that the County has almost 70 committees. Secondly, the County might review the appropriate kinds of committees it should have to fit its structure and mandates, which is beyond the purpose of this report. This may involve the restructuring or elimination of some committees, or the absorption of mandated committees into broader purpose committees, and the creation of some new committees. Thirdly, the County could develop some consistent policies on applications and selection of members, payments for attendance, terms and term limits, and evaluation. The policies could also include a precise clarification of roles of the committee chairs, members and staff, and procedures for meetings, public heatings and reporting. Not the least of these policies should deal with volunteer recognition. The manuals produced by Washington and Dakota Counties might serve as good examples for citizen participation policies. Finally, the County could broaden its efforts to include the participation of citizens in a wide variety of decisions. This could include the committees where membership now consists of only the County Commissioners and/or other County personnel. Most importantly, the program would require a conviction and demonstration on the part of elected officials and other county personnel that citizen participation will enhance the quality of government in Sherburne County. With this attitude, participation in a committee structure would be strongly encouraged, the input from committees would be highly regarded, and there would be no question that citizen participation would be taken seriously. 2. The County_ Commissioners have been involved in many committees which may be labeled as micro-management. When Sherburne County was smaller in population, micro-management may have been possible without causing publicly noticeable damage to the Commissioners' proper role of policy making and future planning. As the County increases in population, however, it is time for the Commissioners to adjust and think in terms of future growth. In the League's opinion, one of the most important functions of a county board of commissioner is to plan for the future, and to make policy decisions that affect that future. It is always easier, of course, to delve into narrower administrative issues, and to put off' or avoid completely the broader planning issues. But the danger of micro-management is a preoccupation with, and a reaction to, time consuming issues which can easily be managed on other levels, instead of overall proactive policy formation. Other counties have noted also that meetings of the board of county commissioners can be much shorter when much of the preliminary work is accomplished on other levels. It may be time, therefore, for the County Commissioners to reconsider its membership on those committees which can be categorized as purely internal management committees. If good staff have been retained, confidence can be placed in their ability to make recommendations which then can be judged by the Board of Commissioners. The danger of micro-management also provides another reason for the Commissioners to reconsider its involvement in the eight committees without current citizen participation. RECOMMENDATIONS In order to help assure that citizen participation can contribute to the quality of county government, the Citizens League makes the following recommendations. 1. Develop a manual for citizen participation in county, committees This will include the following: a. Develop a separate list of the County committees. The County should develop two separate lists: 1) the authentic County committees and other regional committees with the participation of Sherbume County residents, and 2) the list of committees, organizations and meetings with county commissioner assignments This list should carry a different title which more accurately describes its purpose. The recommended manual would pertain to the first group of committees. b. Develop some consistent policies on: 1) the aggressive advertising and recruitment of new members, and the application and selection process 2) clear mission statements or charges for those committees where it has not been already enacted by legislation on other levels 3) the clarification of roles of the chairs and members, and the staff 4) the procedures for meetings, public hearings and reporting 5) the payments for attendance 6) evaluations based on previously formulated goals 7) volunteer recognition. The manuals produced by Washington or Dakota Counties could be used as a starting point, but this County could make many improvements to those models, and in turn be a model for other counties. 2. Review the appropriate kinds of committees for the County. It may seem logical for the County to first review the appropriate kinds of committees it should have to fulfill its mandates and fit its structure before it develops a manual. However, this could be a lengthy process, and is the topic of another major study. The Citizen League recommends that such a study be initiated, and once a manual is developed, it can be adjusted for any new committee structure. 3. County. Commissioners should remove themselves from membership on as many Committees as possible, and devote themselves to broader policy issues. For purely internal management committees, confidence should be placed in the ability and competence of other County personnel to accomplish the purposes of the committees. The appointment of residents to other committees will give meaningful work and advisory decision-making responsibilities to other citizens, and allow the County Commissioners to allocate more time to their primary responsibilities. Much of the time saving, however, will depend on effective written reports by personnel who staff the committees, so that issues are clear and oral reports can be abbreviated. 4. Committees or o~anizations that receive County. funds should be required report to the County. on the use of those funds, The Fair Board, for example, and any other organizations that receive allocations of County funds, should issue annual reports on the use of the allocation and the effectiveness of their program. 5. Information on the County. committee structure and the opportunities for citizen participation should be publicized on the Internet. Since the Internet is becoming more and more popular, a County web site should feature information on the committee structure of the County, including the opportunities for membership and the policies governing the operations of the committees. Provisions should even be made for applications through the web site, and the electronic transfer of completed applications to the County. 10. APPENDIX CITIZEN LEAGUE COUNTY COMMITTEE STUDY DATA Class h Membership - County Commissioners Only(22 Committees) AMC-Environmental Affairs Committee: Association of Minnesota Counties Board of Health: required Central MN Council on Aging: non-profit agency Central MN Initiative Fund Central MN Mental Health Foundation Delegates: mandated Community Youth Task Force Emergency Management Plan of Sherburne County: required Governor's Region 3 Coordinating Board Great River Round Table Housing and Redevelopment Authority Mille Lacs Band Treaty Joint Powers Task Force Northstar Corridor Development Authority: Noxious Weed Control Appeal Committee: mandated OK House Board of Directors. Options Board of Directors Public Defender Board: mandated Region 7W MnDOT Transportation Policy Committee Regional Rail Authority Secure Juvenile Detention Facility-Anoka Tri-County Action Program(TRI-CAP): non-profit agency Tri-County Solid Waste Commission. Note: Committees in this classification tend to provide over-sight to projects which Sherburne County paaners with other counties. Class 1I: Membership - County Commissioners/Staff(17 Committees) Association of Minnesota County Delegates Benefits Advisory Committee: makes recommendations to Cty Bd Central MN Emergency Medical Services Council: required - reports to MN EMS Regulatory Bd. Department Head Committee Ditch Authority: report to property owners and various government agencies Elk River Watershed Association/Board: Joint Powers Finance Committee: makes recommendations to Cty Bd Financial Long Range Planning/Capital Improvement Committee: reports to Cty Administrator Information Services/GIS Committee: makes recommendations to Cry Bd Intergovernmental Relations Committee: Law Library: mandated Negotiation Committee: makes recommendations to Cty Bd Personnel Committee: makes recommendations to Cty Bd A - 1 Policy-Ways and Means Committee: makes recommendations to Cty Bd Purchasing and Building Committee: makes recommendations to Cry Board. RDF Advisory Board: joint powers St Cloud Area Economic Development Partnership: non profit agency/report to Cty Bd St Cloud Area Wide Planning Organization: non-profit agency Note: A few committees in this classification involve joint powers or common jurisdiction with other partners which usually are adjoining counties. The majority in this classification deal with personnel, strategic planning, finances, purchasing or other general administrative matters which the full County Board has delegated to committees for study and recommendations. Class III: Membership - County Staff Only(9 Committees) Association of Minnesota Counties-General Government Policy Committee Child Placement Administrative Review Committee ~ Counties Information Systems/Board Peer Group Committee Safety Committee St Cloud/HaverffSherb Area Airport Zoning Board Sherburne County Committee on Corrections Tri-County Major Crime Investigation Unit Vending Committee Note: with the exception of the Airport Zoning Board which is probably a joint power arrangement, these committees tend to be related to general administration housekeeping tasks, personnel matters, or specific to the performance of a specific cty. department Class IV: Membership- Citizens/County Representation(Commissiouers and/or staf0(18 Committees) Board of Adjustment: appeal process for Cty Zoning -required-autonomous Central MN Mental Health Board: non-profit agency Extension Committee: required, reports to Cty Bd. Extension Mississippi Corridor Cluster Committee Great River Regional Library: mandated Interagency Early Intervention Committee: mandated -report to MN Dept of Children, Families, and Learning. Parks, Trails and Open Space Committee: reports to Cty Bd Planning Advisory Committee: required, reports to Cty Bd. Private Industry. Council Sherburne Co Child Abuse and Neglect Prevention Council: reports to Cry Bd Sherburne Co Economic Development Alliance - reports to Cry Bd Sherburne Mental Health Advisory Council: required - Sherburne Co Tree Board - reports to Cty Bd Sherburne,q3enton Advisory Committee to Joint Board of Health: required - reports to joint health board g_ - 2 Sherburne/Benton Board of Health Services: required Transit Committee Waste Management Adviso~ Board: reports to Cty Bd Water Plan Advisory Committee: mandated. Report to Cty Bd and Soil/Water District Bd of Supervisors -also State Bd of Water/Soil Resources Note: each committee listed above has at least one citizen member. They tend to be created to provide citizen input for a specific area of county responsibility such as health, transit, waste management, economic development, parks and recreation, etc. At least half require citizen participation. Class V: Membership - County Representation/Professionals(5 Committees) Child Protection Team Children's Mental Health Coordination Council Developmental Disabilities Advisory Committee - reports to Cty Bd Sherburne Alcohol/Drug Advisory Committee Sherburne County Committee on Corrections - reports to Cty Administrator Note: each of the above committees is composed exclusively of a combination of county professional staff plus professional staff from relevant agencies. Class VI: Membership - Citizens Only(l Committee) Fair Board Note: this committee is unique in that it is comprised of citizens only, receives $20000 annually in county funding, but does not seem to be accountable to the County Board in how it handles the funds. g. - 3 APPENDIX B Open Appointments Application for Dakota County Citizen Advisory Committees/Commissions/Boards _~1; ApPlicant Information Applicant Name: Last Name First Name M.I. Mr. Q Mrs. Home Address: Ms. Street MN Commissioner District: Telephone: city State Zip County of Residence (Leave blank if you do not know the number of your commissioner district.) Home [Part 2:?Committee Selection I Indicate below the name of the committee(s) for which you are seeking preference (1 being your first choice). [~ Child Abuse Prevention Council [~ Child Care Advisory Committee [~ Communib/Corrections Advisory Board [~ Extension Committee [~ Housing & Redevelopment Authority Board [~ Human Services Advisory Committee Q Library Board [~ Noxious Weed Control Program Appeal Committee IPart 3: Your Rights as a Subject of Data/Applicant Declaration Business appointment. If more than one, number them according to Q Parks and Recreation Advisory Committee Q Planning Commission Shoreland Zoning Board of Adjustment Q Solid Waste Management Advisory Committee [~ Special Board of Equalization Q Workforce Council Other: Minnesota Statutes Ch. 13 on data pdvacy requires that you be informed that the following information which you are asked to provide in this application is considered pdvate data: home telephone number, business/financial interest, status as recipient of human services. This means it is available only to you and county officials who have a bona fide need for it. This data will be used to 1) contact you regarding your applic3tion or 2) determine your eligibility for appointment. Furnishing your home telephone number, business/financial interest information, and status as recipient of human services is voluntary. Failure to provide the information requested in Parts 5-10 of this application may result in denial of eligibility. All information you supply on this application, with the exception of that which is private data as indicated above, will become public if you are appointed to serve on a Dakota Coum'y citizen advisory committee. ereby declare that I have read the statement 'Your dghts as a subject of data' regarding the Minnesota Government Data Practices (Minnesota Statutes Ch. 13). Signature of Applicant Page I Date B - 1 Please continue... I Part 4:::i: Statement..of Qualification Business/Employer: Business Address: Street City County State 7ip Job Title: Current Responsibilities:, Previous Work Experience: Vocational/Educational Background: Community Service: Interests: Please continue... Page ~Parf 5; CommunityCorrecfionS Advisory Board APpliCants Only..:. I Minnesota Statutes Section 401.08, Subdivision I requires that the board 'shall be representative of law enforcement, prosecution, the Judiciary, education, corrections, ethnic minorities, the social services, and the lay citizen.' Which do you repreeer~t? (Check all that apply.) [3 Citizen [3 Corrections [3 Education [3 Social Services [3 Ethnic Minorities [3 Prosecution [3 Judiciary [3 Law Enforcement Part 6: Human Services Advisory Committee Applicants Only: Minnesota Statutes Section 402.03, requiring appointment of a human services advisory committee, requires that the committee consist of representatives of persons receiving human services from Dakota County. providers or employees of providers of human services in Dakota County, a member of the health adv~-~c, ry committee, a member of the Community Corrections Advisory Board, and citizens of Dakota County. In lieu of appointing a health advisory committee pursuant to Minnesota Statutes Section 145A. 10, subdivision 10(b), Dakota County includes representatives of health care providers in Dakota County on the Human Services Advisory Committee. Which do you represent? (Check all that apply.) [3 Persons receiving human services from Dakota County (does not require status as current recipient of human services) [3 Providers or employees'of providers of human services in Dakota County [3 Community Corrections Advisory Board [3 Citizens of Dakota County [3 Health care providers in Dakota County IPart 7: Parks and Recreation Advisory Committee Applicants Only In accordance with County Ordinance No. 120, through which the Parks and Recreation Advisory Committee was established, anyone owning land within or adiacent to a county park or having other 5nandal interests in such land, shall not be eligible to serve on the Parks and Recreation Advisory Committee. Do you own land within or adjacent to a County Park or have other financial interests in such land? Yes [3 No 2. Anyone already holding an elective city, county, state or federal office shall also not be eligible to serve in a regular voting position on the Parks and Recreation Advisory Committee. Do you currently hold an elective city, county, state or federal office? 0 Yes 0 No Rarks and Recreation Advisory Committee meetings are occasionally scheduled to be held on weekday afternoons at 4:00 p.m. to allow for daylight tours of county r~ecreational facilities throughout the year. Will you be able to attend meetings at this time? Yes 0 No IPart 8: Planning Commission Applicants Only J Minnesota Statutes Section 394.30, Subdivision 1, the statutory authority under which the Dakota County Planning Commission has been created, requires that: 'No voting member of the commission shall have received, during the two years prior to appointment, any substantial portion of income from business operations involving the development of land within the county for urban or urban related purposes.' During the last two years, have you received any substantial portion of your income from business operations involving the development ol~ land within Dakota County for urban or urban related purposes? Q Yes O No Please continue... Page 3 B - 3 [Part 9::: Solid waste. Management:Advis°ryC°mmittee OnlY~:.: ~ Minnesota Statutes Section 473,803, subdivision 4, requiring appointment of a solid waste management advisory committee, requires that the committee consist of citizen representatives, representatives from towns and cities within the countT, representatives from private waste management firms, and residents from towns or cities with landfills (i.e., Bumsville and Inver Grove Heights). Which do you represent? (Check all that apply.) 0 Citizen Q Town or city in Dakota Count7 [3 Private waste management firm O Resident of Bumsville or Inver Grove Heights part ;t 0: :Workforce coUncil:APPlicantS::Onlyl.i~:: '] 29 U.S.C. § 1512(C)(1)(A) requires that private sector representatives on the Council shall be selected from among indiv{duals nominated by general purpose business organizations. 'Such nominations, and the individuals selected from such nominations, shall reasonably represent .the industrial and demographic composition of the business community. Whenever possible, at least one- half.., shall be representatives of small business, including minodty business.' Private sector applications must be accompanied by a letter of supporl, from a general purpose business organization (e.g. Chamber of Commerce). Public sector applications must be accompanied by a letter of support from the parent agency. For fur[her information on the Workforce Council, please call the Jobs & Training Program Administrator at 438-8347. Nominating Agency: Which do you represent: (Check all that apply.) Pdvate Sector/Small Business Private Sector/Large Business (>500 employees) Pdvate Sector/Minority Business Organized Labor Ccmmunity-Based Crganizations Educational Agencies Vocational Rehabilitation Agendes Public Assistance Agencies Economic Development Agencies Public Employment Service Page o:\openappt~96appl Thank You/ B - 4 More about the Citizens League.... The Elk River Area Citizens League was founded in 1987 by The 2001 Committee, Inc. The mission of the Citizens League is to foster a more informed public, resulting in better choices and decision making for area residents. The Citizens League is a non-partisan, non-sectarian and not-for-profit organization. Membership in the League is open to all area citizens who support its mission. As a research and discussion entity, the Citizens League brings together a group of individuals from a variety of backgrounds and interests. These diverse perspectives represent our strength. Within the arena of League activities, however, political and/or professional allegiances are set aside, and the commonality of our grassroots citizenship guides our efforts. Each year the Citizens League selects a study topic. Members who are interested in the topic participate in research and discussion of the issue. When the study is completed, the League publishes a report which is available to the public. The Citizens League also sponsors Candidate Forums in order to help citizens learn about political candidates and their positions on various issues. These meetings are held during election years and are open to all area citizens. Through these activities, the Elk River Area Citizens League fulfills its mission to foster a more informed public, which is the very foundation of a healthy democracy. For membership information, contact: Rita Johnson Mary Eberley Bob Minton Chair 441-4547 Vice-Chair 441-8870 241-9104 Citizen League members who prepared this report Paul Ammerman Mary Eberley Don Heinzman Nancy Gongoll Rita Johnson Rachel Leonard Louise Kuester John Kuester Mary Jo Minton Bob Minton Shelly Sherper Don Sherper The Elk River Area Citizens League wishes to express its appreciation to the Three Rivers Foundation for providing financial support for this study.