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03-21-2007 ECC MIN MEETING OF THE ELK RIVER ENERGY CITY COMMISSION HELD AT THE TWIN LAKES ELEMENTARY SCHOOL 10051 201st AVENUE,ELK RIVER,MN WEDNESDAY,MARCH 21,2007 Members Present Vance Zehringer,Ron Bratlie,Jeff Gongoll,Ed Stoutenburg IV, Mayor Stephanie Klinzing, Rachel Leonard,Todd Berreman,Steve Rohlf,Maureen Griffiths for Deb Walters,Sharon Kampa,Susie Overholser,Rob Powell,Bryan Adams, Members Absent Gary Connett Staff Present: Rebecca Haug,Nicki Blake-Bradley Others Present Joseph Pavicic,Liquid Renewable Fuels Bill Maertz,Elk River Parks and Recreation Dept. Jim Purtle,Feld and Company 225 S. 6th Street,Ste 4200,Mpls,MN 55402 jhpurtle(1ifeltl.com Jenny Tuttle,KKE Arne Engstrom,Sherburne County Commissioner Rob Grawey,Elk River Star News Meeting was called to order at 1:37 p.m.by Chair Vance Zehringer • 1. Consider March 21.2007 ECC Minutes Numerous changes need to be made to the minutes.Rebecca stated that Staff will make changes and bring them back to the commission at the next meeting.Chair Zehringer commented that the acronym should be CIP rather than SIP for the record. 2. Consider February 21.2007 ECC Agenda Additions to the agenda included an update on the new library and Rebecca requested an update on the City Council meeting that the Commission attended. 3. Presentation by Joe Pavicic Mr.Pavicic gave an overview of the history of oil consumption and discussed replacing oil with another item. He clarified that a barrel of oil is 42 gallons and is abbreviated"bbl"for"blue barrel". Mayor Klinzing arrived at 1:42 p.m. Commissioner Rohlf and Rob Powell arrived at 1:43 p.m. Biodiesel is the use of vegetable oil for engine fuels. It will work in any diesel engine,including cruise ships. Biodiesel is very commonly used in Europe... they have 20 years experience there. Commissioner Stoutenburg and Arne Engstrom arrived at 1:52 p.m. Mr.Pavicic stated that as of 2006,more than 500 military,municipal,and national fleets have incorporated biodiesel into their use.In MN,all diesel fuel has a minimum of 2%biodiesel. Energy City Commission Minutes Page 2 March 21,2007 IIIBiodiesel has incredible lubricity and can be made from any fresh or used vegetable oil(i.e. from restaurants). The used oil is taken by rail to a biodiesel plant,filtered,heated,and treated with methanol and a catalyst (typically NOH)which breaks the glucose bond.The glycerin is washed out,the biodiesel is "dried"and it's ready for market. Vehicles using biodiesel(B20)have gotten more than 50 miles per gallon(same mpg or better than petroleum based diesel fuel). It gets a more thorough burn.Biodiesel is the first fuel to meet Health Effects and Clean Air Act regulations.B20 reduces emissions by 70%. Biodiesel gels just like regular#2 diesel fuel in cold weather.It is managed the same as #2 at 20% (B20). Commissioner Overholser and Bob Grawey arrived at 2:00 p.m. Commissioner Rohlf questioned whether there are any issues at the gas pump with UL dispensers,etc.Mr. Pavicic responded that blends of 5%have no impact on cold flow and there are no problems with dispensing biodiesel at gasoline pumps. Biodiesel will clean out engines so if it is used in an engine that has run petroleum based diesel fuel,it will need to have the fuel filter changed within 1 —2 months.The really high percentage blends may eat rubber. Biodiesel had no benzene or aromatics,reduces greenhouse gas emissions,reduces particulate emissions,is nearly sulfur free,has a higher flash point than petro-based diesel fuel (150 degrees vs. 70 degrees),will not burn from a match flame unless the flame is held to the fuel (remove the match flame and it goes out),is non-toxic and non-hazardous,produces 3—7 times more energy,and no modifications are necessary to the engine or delivery systems.Biodiesel also gives 30%or better gas mileage. 1111 Commissioner Bratlie entered at 2:10 To produce biodiesel,the glycerin is broken off the oil by a chemical reaction.Ethanol is produced by fermentation.There are three billion gallons of waste grease annually... for an estimated$50 billion per year potential. Chair Zehringer stated that this may cause a moral question of food versus fuel.Mr.Pavicic stated the oil is a by-product. Mr.Purtle stated that 2008 will be a"big diesel year"and listed companies that produce diesel vehicles.He added that diesel vehides are holding their value very well and wondered if the City of Elk River is thinking of changing its fleet.Discussion followed regarding where biodiesel is available.No one present knew whether biodiesel is available in the area.Mr.Purtle stated that Moritz (sp?) on Twin Lakes is the only supplier in the area.Mr.Pavicic stated that the owner has to go to Iowa for his fuel... and does about 300,000 gallons per year. Commissioner Rohlf stated that the ECC would like to promote all viable alternative fuels.Discussion followed regarding ethanol vs.biodiesel. 4. Library Update Jenny Tuttle gave an update on the status of the library. She stated that the payback period is less than 20 • years.The City of Rik River didn't feel it was worth the cost to go for platinum LEED certification.Gold Energy City Commission Minutes Page 3 March 21,2007 • LEED certification is an option and she stated that they feel they are on track to meet that.The point scale for Gold is 39—51 and currently the library has 42 points. Commissioner Rohlf questioned whether there would be any points available for alternative transportation (i.e.River Rider).Tuttle stated that if there is a shuttle service,they could get points for that. Commissioner Leonard and Engstrom feel it is possible to have the River Rider add the library to its schedule since the YMCA will already be one of the stops.Tuttle stated that it has to meet the intent of LEED (she would need a graphic showing the route,etc.). Another way to get more points for the LEED certification would be to have green cleaning contracts. 5. Energy Expo Update Rebecca gave an update in memo format and discussed the details.There are currently seven sponsors. Speakers and moderators are set. Chair Zehringer stated that Ann Bancroft would be available now since her polar expedition had to be cancelled.It was stated that it's too late in the planning to have Ann attend. Senator Jungbauer wants to speak.Representative Hackbarth will be in session that day so will not be available to attend.Mayor Klinzing stated that there is some volatility regarding the topics and issues are controversial.She noted that Jungbauer called Councilman Motin and expressed disagreement with what the keynote speaker will be saying.Discussion followed regarding concerns about speakers against what the message of the Expo is. Commissioner Bratlie noted that the Expo is not a forum.Rebecca stated that Jungbauer would be given 5—10 minutes to speak before Paul Douglas.There won't be a lot of time available to him since other speakers will be presenting as well(i.e. County Commissioners,etc.). Commissioner Rohlf stated that he feels it will be awkward,but he doesn't want to stifle any ideas.Whether he agrees with Jungbauer or not,the Senator should be able to speak.Mayor Klinzing stated that Councilman Motin had expressed that he did not want Jungbauer there if he will be completely negative. A comment was made that it may be a poor political move on Jungbauer's part to speak negatively about global warming before the keynote address.Discussion followed regarding the timeline and whether there would be enough time for the Senator to speak.He would be able to fit into the hour before the keynote,but with the ribbon cutting and overview of Energy City taking up most of the time,he won't have much. MOTION BY MAYOR KLINZING TO ALLOW WHATEVER LEGISLATORS A .LEND TO HAVE FIVE MINUTES TO SPEAK.SECOND BY COMMISSIONER LEONARD.ALL IN FAVOR.MOTION CARRIED. 5. Proclamation update The bill has moved through the Senate and House subcommittees to the floor.Commissioners Bratlie,Zehringer, and Adams attended the subcommittee meeting and spoke late Monday night(8:15). Only a few questions were asked,but Commissioner Adams felt it was important that all three commissioners were present to answer the questions.The bill passed at the subcommittee level. Discussion followed regarding forming a subcommittee to determine what Energy City should be and can do. Rebecca questioned whether the people from the goals subcommittee want to be on this subcommittee. If a new ordinance is to be worked on,goals and costs will be necessary.Rebecca stated that she feels the ECC can still use the original goals but added that costs have to be calculated. Energy City Commission Minutes Page 4 March 21,2007 6. Other • Commissioner Rohlf thanked Sherburne County for the resolution concerning Energy City.Mayor Klinzing spoke of a partnership between Sherburne County and Energy City and asked what the County Commissioners would like to see. Commissioner Rohlf stated that Energy City will need to take a step beyond demonstrations and get the entire city involved.He added that the commission will need to brainstorm after the Expo. Commissioner Adams commented that changes to CIP fund handling(from revenue to percent savings)may affect demonstrations. County Commissioner Engstrom questioned the future budget of the city regarding whether changes will be made to the fleet(making it more fuel efficient).He asked the philosophical question"why wouldn't you want t0?" Commissioner Rohlf discussed putting the MN GREAT awards on the agenda for the City Council. 7. Schedule Next ECC Meeting and Identify Agenda Items The next ECC meeting will be held April 18th at the new Target Data Center. Commissioners will meet there.The entrance is off Waco Street(next stoplight west of Joplin off Hwy 10).The next Expo subcommittee meeting will be held April 4th at City Hall. 8. Adjournment Meeting was adjourned at 3:17 p.m. followed by a tour of the Twin Lakes Elementary School given by • ® Commissioner Bratlie. Respectfully submitted by, Nicki Blake-Bradley Environmental Technician •