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ERMUSR MISC MEMO 03-11-2008/i Elk River Municipal Utilities 13069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 March 5, 2008 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey John Dietz From: Bryan Adams Subject: Miscellaneous Issues Phone: 763.441.2020 Fax: 763.441.8099 Enclosed is the packet for the Tuesday, March 11, 2008, commission meeting at 4:00 p.m. To date, the electric and water usage is up 11.3% and 9.9% respectively above last year. Attached for your reference are copies of our summarized rate sheets for residential and commercial/industrial customers. Also attached is an article from Minnesota Rural Water titled Wellheadlines "Conflict Among Water Users". Do you recognize the second example of a metropolitan suburb? APPA's legislative rally in Washington D.C. was a success. Attached is a list of the congressional delegation we met with. Unfortunately our own Michelle Bachmann failed to show. Also included is the title sheet of the eight resolutions that .were approved. This list represents some of the large issues facing our industry. APPA's annual conference is June 21-25 in New Orleans. I would like to attend unless this Commission desires otherwise. I would also encourage this Commission to attend as well. On a final note, attached is the February 15, 2008 issue of "The Kipplinger Letter". This publication addresses some energy and human resources issues that should be of interest to you. Elk River Municipal Utilities 13069 Orono Parkway - PO Box 430 Elk River, MN 55330-0420 Electric Rates Basic Monthly Charges May-September Usage October-April Usage Off Peak Rates Energy Storage in KWh/Month Dual Fuel in KWh/Month Water Rates Basic Monthly Charge Senior Citizen Monthly Charge Cost per 1000 Gallons: 1st Step Rate 2nd Step Rate 3rd Step Rate Rate Step Definition: Residential Phone: 763.441.2020 Fax: 763.441.8099 Effective January 1, 2008 $7.50 $.10000/KWh $.08480/KWh Effective January 1, 2008 $.042 $.044 Effective January 1, 2008 $6.50 $5.50 (upon application) $1.50 $3.50 $4.00 First Step Rate = 0-9000 gallons per month Second Step Rate =Between 9000 gallons and 15,000 gallons per month Third Step Rate =Above 15,000 gallons per month Watering Restrictions • No sprinkling allowed from 10:00 a.m. to 6:00 p.m. • Those with even addresses may sprinkle before 10:00 a.m. and after 6:00 p.m. on the even days. • Those with odd numbered addresses can sprinkle before 10:00 a.m. and after 6:00 p.m. on the odd days. Sewer Rates April 1, 2007 April i, 2008 Based on Water Usage November-March Average Monthly Usage X If no history, a Flat Rate is Applied Minimum Rate $ 3.58 $18.75 $ 8.30 $ 3.72 $19.50 $ 8.63 Senior Citizens billed on actual usage and can be lower than minimum rate. (62 and over upon application). Elk River Municipal Utilities 13069 Orono Parkway - PO Box 430 Elk River, MN 55330-0420 Garbage Rates Two - 90 Gallon Containers 90 Gallon Container 60 Gallon Container 32 Gallon Container 32 Gallon Bi-Weekly Phone: 763.441.2020 Fax: 763.441.8099 Monthly Rates Effective March 1, 2008 $27.80 $16.83 $14.54 $13.01 $10.81 Recycling is same day as garbage pickup. Stickers for extra garbage can be purchased at the Utilities Office for $2.00 each. Extra recycling bins are available at the Utilities Office for $5.33. For recycling questions and concerns, please contact your garbage hauler, Allied Waste at 763-784-2104 or Randy's Sanitation at 763-972-3335. Where and How to Make Payments • Mail or hand deliver to our office. • Drop box option: - Utility entrance at City Hall Complex - across from the Post Office • Automatic payment is available upon request. We accept cash, checks or money orders, sorry, no credit cards at this time. Your check will be electronically processed upon receipt. There. is a $20 charge for all returned checks. This is in addition to any fee your bank may charge and the state allowed electronic processing fee. Billing Procedures and Policies Elk River Municipal Utilities will send a delinquency notice to the customer after the due date has expired and when payment in full has not been received. The notice will state that the bill is past due and services may be disconnected, as specified on the notice. If the bill is not paid or our office is not contacted to have satisfactory arrangements made, no further notice may be given. We may also hang a tag at the residence or place of business notifying you of possible disconnect due to nonpayment. There is a $20 handling charge if we have to hang this tag and it will be billed directly to your account. For residential, commercial or industrial customers who are disconnected for non-payment, a 2 month estimate utility bill deposit will be required before reconnection. There is a $50.00 disconnection/trip charge within the normal hours of 8:00 a.m. - 4:30 p.m. Monday -Friday. There is a reconnection charge after working hours of $100.00. No reconnects will be done after 8:00 p.m. ilk River ---, Municipal Utilities 13069 Orono Parkway - PO Box 430 Elk River, MN 55330-0440 Phone: 763.441.2020 r.iecirtc ttaies Effective January 1.2008 Non-Demand Customers (Demand in KW less than 50 KW) Basic Monthly Charge $16.00 May-September Usage $.09732/KWh October-April Usage $.07542/KWh Minimum Bill: Basic monthly charge plus $1.00/KVA/month of excess transformer capacity requested by customer. Power factor of 95% must be maintained or a penalty may be assessed. Demand Customers (Demand in KW greater than 50 KW) Basic Monthly Charge $50.00 Energy Charge $.04542/KWh May-September Demand Charge $14.98/KW October-April Demand Charge $10.60/KW Minimum Bill: Maximum billing demand during previous 12 months times 3% of the demand charge or the actual demand multiplied by the demand charge, whichever is greater plus $1.00/KVA/month of excess transformer capacity equested by customer. Power factor of 95% must be maintained or a penalty may be assessed. Water Rates Cost per 1000 Gallons: 1st Step Rate 2nd Step Rate 3rd Step Rate Winter Period Nov. 1 thru March 30 Basic Monthly Charges are as follows: Commercial 3/4" Commercial 1" Commercial 1-1 /4" Commercial 1-1/2" Commercial 2" Commercial 3" Commercial 4" Commercial 6" Commercial 8" Irrigation Effective January 1.2008 $1.50 $3.50 $4.00 Summer Period April 1 thru Oct. 30 $9.00 $10.00 $1 I.00 $12.00 $ 16.00 $35.00 $48.00 $70.00 $95.00 $17.00 First Step Rate of $1.50 per 1000 gallons = 0- l . l X previous year's average winter period monthly consumption. Second Step Rate of $3.50 per 1000 gallons =Between 1.1 X previous year's average winter period monthly ;onsumption to 1.1 X previous year's average winter monthly consumption + 40,000 gallons. Third Step Rate of $4.00 per 1000 gallons =Above 1.1 X previous year's average winter period monthly consumption + 40,000 gallons. For new customers, if a minimum of 3 winter months previous year's history is not available to establish the Step amount, the First Step rate shalt be utilized until a minimum 3 month history is established. F1k River ..~ Municip al Utilitie s 13069 Orono Parkway - PO Box 430 Elk River; MN 55330-0440 Watering Restrictions Phone: 763.441.2020 Fax: 763.441.8099 • No sprinkling allowed from 10:00 a.m. to 6:00 p.m. • Those with even addresses may sprinkle before 10 a.m. and after 6:00 p.m. on even days. • Those with odd numbered addresses can sprinkle before 10:00 a.m. and after 6:00 p.m. on the odd numbered days. Sewer Rates Based on Water Usage November -March Effective April 1, zoos Effective April 1, 2008 Average Monthly Usage X $ 3.58 $ 3.72 [f no history, a Flat Rate is Applied $18.75 $19.50 Apartment Rate Minimum Per Unit $14.27 $14.84 Minimum Charge $ 8.30 $ 8.63 [ndustrial and Commercial users with higher than average strength waste will be charged using a formula which is based on waste strength. Where and How to Make Payments • Mail or hand deliver to our office. • Drop box option: - Utility entrance at City Hall Complex - across from the Post Office • Automatic payment is available upon request. There is a $20 charge for all returned checks. Billing Procedures and Policies Elk River Municipal Utilities will send a delinquency notice to the customer after the duw date has expired and when payment in full has not been received. The notice will state that the bill is past due and services may be disconnected, as specified on the notice. If the bill is not paid or our office is not contacted to have satisfactory arrangements made, no further notice may be given. We may also hang a tag at the residence or place of business notifying you of possible disconnect due to nonpayment. There is a $20 handling charge if we have to hang this tag and it will be billed directly to your account. w For residential, commercial or industrial customers who are disconnected for non-payment, a 2 month estimate utility bill deposit will be required before reconnection. There is a reconnection charge after working hours of $100.00 for 1 phase and $350.00 for 3 phase. No reconnects will be done after 8:00 p.m. ~~~.~ ~D `"° Conflict Among Water Users have NPit1ia_r! MRWA Source Water Specialist C'onfliets bet~~een public eater suppliers in '~Iinnrsota are rx~t widespread. but do orcw~. x Hire ail iii~ci~ Iii rue S~aie arc ili~uCt irrilirn- dous pressure to supply Mauer I~x rapidl}~ growing urban development near the lar~~rr cities and metropolita^ areas. There have been instances ~~~here public water supple wells in a comnnmity had an impact on the j revenue ghat it ~~ill ereatc ti,r the ]oral water supplier. ~~~ncratu~ a ~urnmunitr-~~~idc hr~~h- icili iii'~~iii~iii~ luC ui .i.~i L;c vi ~7iiiii~i iiiiiiiiC~ for retiren,en[ of public utilize construction and infrasiructun: loans. piulip,n~ capaut~ of a~ la~u~t puhh~ and p„- vale wells. ~1unicipal ~irlls have also been known to ha~~ an adverse impact un other natural resources. like prntectcd fens. I,imiis placed upon the appropriatio^ of water from some aquifers have I~orcrd sc~°eral of~thr pub- lie water suppliers to look at other sources of supple for drinkin« ~~~ater. Some of the mc» ~c rapidly ~~ru~~ ink arras are luokinz at the deeper aquifers and the ~1ississippi River as sources. whist, "TYpica{ly, the m:,y play an important role in WatGr-USe COI~~iC~S future ~1c~isions thafi do occur are not (~~ de,cr~~,ir~e between public s~~nrrr „.,~~~,~ 1„ i- or,t,rs 1~x water 'water suppliers, bu# ' snpphrs. often involve private water users." "Ivpically, the ~~°atcr-use ronf7icts that do ecru, are not between puhlie water suppliers, but often invol~r pri~~,te eater users. As an example, the cost of sul>plving public drink- ing water for use as ir,i~ration on athletic fields has driven parks. schools colle~~es. and other puhlie rccrcation pro~~iiicrs to investigate drillin~~ their c~~~u ~~~ater supple ~~ell(sl. At Cirst glance. the rest oC a }?rig-ate ~~~ell is of~trn lix,kcd at ,~> a very practical ~yav tc~ supple needed ~~~uter feu irrigatioe. However. many water user, do not take into cousidrration the lar~~c in~cstmcnt oi~ public funds shat nearby utilities have. ah~caily spent to construe the infrasn~uctw~c ra{uirrii to supply their water. L)rilling that private well can he a cost-effective ~~av for the private user to supple their o~yn ~~,iter, but the loss ol~ 18 • Winter 200th ;lianv of these proposed large-capacity ~~'ells :zee located inside, ur near, the defined pru- tecUun area for a public water supp(v. "hwo recent examples can he used to help drsrrihr potential problems that r~u~ become conrcrns for the local utilit~~. In the first example. a private irrigation ~~cll ~~~us proposed [o supply water i~or the high uhoul athletic fields in a small northern ~~Iinnrsuta com- ,1,unity. School o f f i r i a l~ approached the utility ~~~ith a pro- posal to drill their own irrigation well. The uti(it~ expressed con- cerns to the school tPn,t this proposed well could see°ere ly impact both the quantity and quality of water supplied by the two shallow ~~-ells that puhlie water users depended upon in that community. Tt~,e Rlinnrsota Department of Health (\~1DH, ~ti~~ asked to take a look at possible impacts to the public ~ ater supple from high-capaci- ti pumping of the aquifer and existing a>n- ta~7~ination plumes that had perviously aficct- cd local water quality. After the yTDII expressed their concerns in a letter to the school hoard. the proposal was withdra~yn and the school routinues to utilize public drir,kin~r ~~~ater for irri~~a(ion purposes. The scrwrd example v~volves a metropolitan suburb and a similar proposal by the. public schools to supply [heir own water to irrigate several athletic facilities. 'hhe ~y~,ier utility expressed runrerns in a letter addressed ~u the '~~innesota Deparhnent of ;v'atural Resources (I)i~Rl, the state ages<:~° responsible for issuing per- mits to extract public resources t~~r lar~~e ~~°ater suE~- plies. 7~he leucr described three issues the public ~~~ater u~ilit~ had ~~ith the proposed pri~~ate ~~ells: loss of re~~enuc to pay for ~°atcr infrastructure alread~~ in place to supple the. school water needs potential ~~~ater-c~uantite impacts the Proposed school in~i~~ation wells ~~ould ha~~e on the cil~~~s ~Sin- ~~le-scxu-ce aquifer, and the fact that the City, utility had. alrr~~d~ in pace, state-appro~~ed plans to both protect the aquifer and. reduce the denruul upon Loral ~~°atcr resources. `I-he llNR issued a sta~cnient to the school intor~7~ine them that a request to appropriate public resources fur irri~~ation of ~>ehool athieti~ facilities ~~ould not be approved in light of the utilit~~~s expressed am- cerns. In this c~um~~lc. insulting negotiations het~scen the public ulilit~ and school oil~iciafs arri~~ed at a nnuuall~~ agreeable plan to utilize a combination of private and public eater supple wells for the desired irrigation. ~`~'hen poten~i;~1 a~nflirts arise beu~~een ~a~ater users. and the ass~iciatcd problems that can be placed upon local water resources, i~ is important shat all parties maintain open cumnnmications to address the issues and to an-i~~e at decisions that best utilize limited public resources. ,~. P, i .E 1e ~. I- ~ , r Traut Companies www.trautwells.com Phone 320-251-5090 '~ -X00-72~-5091 State Certified Water Testing Zab ~~ Municipal & IndccstriaZ Well Drilling Pzcmp Installation & Repair (~1ual Rotary Drilling) 24-hour emer~encv sea~y~ice o.•:~ ~_ .. 141 2Sth`Ave South, Waite MN 56387 ~~~~~cr ~o~~s • 19 ~iiv~ Minnesota Municipal Uti/ities Association Minnesota Congressional Delegation Meetings Wednesday, February 27, 2008 Room 2253 Rayburn House Office Building 11:45 pm Briefing by MMUA Staff 12:30 pm Congressman Tim Walz (D, 1St District) 2:00 pm Congressman Jim Ramstad (R, 3rd District) 2:30 pm Congressman Keith Ellison (D, 5th District) 3:00 pm Senator Norm Coleman (R) 3:30 pm Congressman Jim Oberstar (D, 8th District) 4:00 pm Congresswoman Michelle Bachmann (R, 6th District) 5:00 pm Senator Amy Klobuchar (D) 5:30 pm Congressman Collin Peterson (D, 7th District) (Note: this meeting could be held in a different location to accommodate Congressman Peterson's schedule) 3025 Harbor Lane North • Suite 400 • Plymouth, MN 55447-5142 • 763.551.1230 • 800.422.0119 (MN) • Fax 763.551.0459 • www.mmua.org • Agenda • Resolution 08-01: Urging Congressional and FERC Action to Resolve Problems in RTO Electricity Markets Sponsors: Northeast Public Power Association, Kennebunk Light and Power District, Burlington Electric Department, Pascoag Utility District, American Municipal Power -Ohio • Resolution 08-02: In Support of Preventing Manipulation in Carbon Markets Sponsors: Washington Public Utility Districts Association, Snohomish County Public Utility District, Northern California Power Agency • Resolution 08-03: Encouraging the Environmental Protection Agency to Act Prudently on Any Proposals to Regulate Greenhouse Gas Emissions Sponsor: JEA • Resolution 08-04: In Opposition to Federal Mandates on "Renewable" Transmission Lines Sponsors: Colorado River Energy Distributors Association, Irrigation and Electrical Districts' Association of Arizona, Missouri River Energy Services • Resolution 08-05: In Support of Federal Legislation to Create Financial Incentives for the Supply-Chain Development of Biomass Materials Used to Generate Electricity Sponsor: Cedar Falls Utilities • Resolution 08-06: Management of Vegetation Surrounding Transmission Lines Sponsor: Los Angeles Department of Water and Power • Resolution 08-07: In Support of Expanding Vocational Education Sponsor: Los Angeles Department of Water and Power • Resolution 08-08: In Support of Allowing FERC and NERC to Implement Flexible Standards to Protect the Bulk Power System from Cyber Attacks Sponsor: Minnesota Municipal Utilities Association • Resolution 08-09: Predatory Pricing on Cable Content Sponsors: Bristol Tennessee Essential Services, Jackson Energy Authority, Pulaski Electric System, Clarksville Department of Electricity, Electric Power Board of Chattanooga, Morristown Utility Commission, Tullahoma Utilities Board ^ ^ e i ~n er etter FORECASTS FOR MANAGEMENT DECISIONMAKING 1729 H St. NW, Washington, DC 20006-3938 • kiplingerbiz.com • Vol. 85, No. 7 Dear Client: Is the Consumer Age dead? Hardly. Americans won't suddenly lose their affection for new cars, fashion fads and techno-gizmos. ® But the age of superconsumption may be. ' And that spells change for the economy. Americans are tightening their belts. Consumer spending will gain about 1.7% a year in 2008 and 2009, after growing between 2.8% and 3.6% a year for the past five years. There's a whole slew of reasons: Job worries, with unemployment on the rise. Stingier lending, as credit card companies tighten their standards, reduce spending limits and ignore falling interest rates elsewhere in the face of their own rising delinquencies. Higher gas prices, siphoning about $91 billion from consumers' discretionary income this year. And most of all...declining home prices, effectively ending the use of home equity as a cash machine to support consumer spending. Washington, Feb. 15, 2008 j, I GDP ^yrcw*.h T Slowing to 1.5% in '08 Interest rates .~,.~ Prime rate at 5.5% by mid-'O8, ~ 10-year T-notes yielding 4% j Inflation Easing to 3% in '08 i .~Ob grOWth NEW i Slowing to 800,000 in '08 i ................ _............. _ _. _............... _.... ;Crude oil i Averaging around $85 this year i........_............_ .............................__ .._ I Housing sales Falling 10% in '08 ..._.._I__ ......................._.... ,._ ...._.__..... j Retail sales growth Slowing to 2% this year i ...................... _........, ....................... Trade deficit Easing to 4.7% of GDP in 'OS Complete economic.outlook at k ipiingerbiz.com/outlooks The result: A big hit to economic growth. From 1999 to 2007, the share of GDP coming from consumer spending barreled from 68% to 72%, far more than that of most other developed economies. In the U.K., consumers account for 66%...in Germany, 59%. In Canada and Japan...57%. A drop back to 68% in the U.S., as we expect over the next three years, amounts to lopping about half a trillion a year off economic activity. That's three times as much as the total stimulus this vear. And only about half of that stimulus will actually pump up the economy. A third of the taxpayer rebates will be saved or used to pay off debt. Business breaks won't spur more spending, they'll just add to profits. Contributions to GDP (in trillions) roaecnsr f^ 1~ business Spending - i f i,overnment Spending _ '04 'OS '06 '07 'OS Sources: Department of Commerce, Kiplinger Some industries will feel it more than others: Automakers, especially Detroit. Already skidding and now headed onto a more treacherous track, they'll find it tough to marshal the resources for new models...key to their turnaround plans. Their market share will deteriorate further and drag small suppliers down with them. Advertising firms. They're facing a buzz saw, with many customers...food, retail, airlines, financial services, etc...cutting spending. Retailers, especially specialty apparel stores. Some will be swallowed up...some, go belly-up. The Kiplinger letter (ISSN 1528-7130) is published weekly for $117rone year, $199Itwo years, $263lihree years SubSCllpti0n inquilie5: 800-544-0155 or subservices~a kiplingeccom by The Kiplinger Washington Editors, 1729 H St., NW, Washington, DC 20006-3938. EditOnel In101lr1ati0n: Tel., 202-887-6462; Fax, 202-778-6976; POSTMASTER: Send address changes to The Kiplinger Letter P.O. Box 3295, Harlan, IA 51593. E-mail, letters@kiplingeccom; or Web site, kiplingerbiz.com Development of a mammoth new offshore oil find in Brazil means that by 2015 or so, Brazil's production will top those of Kuwait, Nigeria, Venezuela and the United Arab Emirates. But the jump won't ease tight global supplies, only help offset declines elsewhere. Most of the oil will head to the U.S. The long trek via the Suez or Panama canals will make shipping it to Asian buyers too costly. Meanwhile, don't fret about threats of a Venezuelan oil embargo. President Hugo Chavez is using a tiff with ExxonMobil to whip up support for his government but knows diverting oil from the U.S. wouldn't work. Too few buyers are interested in his country's heavy sulfur-laden crude. Clean coal`! Never mind. That's the message from the Energy-Dept., which recently pulled the plug on its $1.8-billion FutureGen program, aimed at developing coal-fueled, emissions-free electricity plants. DOE says the technology to gasify coal and sequester the carbon dioxide is too iffy. Other efforts on storing CO2 underground are a decade away. Utilities will have to rely more on natural gas and nuclear power. That'll bump electricity rates up by about SO% within a decade. An ethanol flood is nearing. By next year, a slew of new plants will lift annual output to about 13 billion gallons. That's more than can be used as E85 in flexfuel vehicles on the road and as E10, the 10% ethanol-gasoline blend approved by EPA for conventional engines. Prices will plunge further, and profits will disappear for makers. Expect the feds to face pressure to speed up market development... building infrastructure and helping get ethanol into more of the country and/or letting blends with over 10% ethanol in them be used in all cars. Adding to ethanol producers' woes: Stubbornly high corn prices. '~ Farmers are likely to plant fewer corn acres this year than last, lured by superhigh soybean prices to switch some acres to that crop. And if that's not enough to keep commodity markets on edge this summer... Worries about drought persist. La Nina, the weather phenomenon spawned in the Pacific Ocean and signaling hot, dry days across the South, isn't easing. Plus the Midwest is overdue for a severe drought... one typically hits every 19 years. It's been 20 years since the last one. '~' Teed off at the iuicy tax break your town offered a Home Depot? Take a lesson from Phoenix-area businesses. They felt shafted by local governments' efforts to lure new employers with sales tax breaks, property tax exemptions and other incentives existing firms didn't get. When the competition among the area's towns and counties got too hot and the inducements too sweet, established local businesses blew a fuse. The Arizona legislature finally stepped in, calling a cease-fire in the bidding wars in the Phoenix area. Now there's a move afoot to expand the ban on such business tax breaks statewide later this year. In other states, there's talk of taking a similar path. Lawmakers in Colo., Ark., Mo., Ga. and N.C. are mulling moratoriums on breaks. Oops. Bush officials' plan to help U.S. cruise ships backfires. The administration hoped to hamper competition from foreign-flagged ships by changing customs rules to make them stop for 48 hours at a foreign port when traveling between U.S. ports. That would help two U.S.-flagged ships that cruise around Hawaii but wreak havoc on other lines. Also losers: U.S. cities that are home ports for the 97% of ships under foreign flags. Remember, your subscription includes The Kiplinger Letter online ' ~ When it comes to health care, whom will emplovers vote for? "None of the above." Businesses want new health legislation to help cut ever-rising costs and cover more of the uninsured. But... They're leery of McCain's tax approach, ending tax exclusions for employer-sponsored plans and substituting refundable tax credits to help individuals buy their own insurance. Employers fear that firms wanting to keep employer-sponsored coverage would be disadvantaged, and they'd rather build on the current system than undermine it. And they balk at Clinton's and Obama's play-or-pay proposals. Both would require big employers to offer coverage or pony up a fee to help subsidize insurance for workers who don't have a company plan. Employers' biggest gripe: None of the plans cuts costs much, and that's their primary goal for any major health care legislation. There are some portions of each plan that emplovers do like and want to work with: McCain's plan, for example, for small firms and the self-employed to buy insurance coverage through associations. Plus Clinton's plan to make everyone get insurance, expanding the pool and holding premium costs down for businesses and individuals alike. Employers will soon face new hiring rules aimed at immigrants. ~ Four months after a federal court threw out proposed regulations, the Department of Homeland Security is about to offer up a new version. Probably unchanged: Tough penalties for knowingly hiring illegals. The regs will still force employers to fire undocumented workers, whose Social Security numbers don't match up with government files. But firms and workers will get more time to resolve discrepancies between names and numbers...180 days. instead of the 90 proposed earlier. Big employer worries remain: The adequacy of Uncle Sam's database of SSNs and potential liability for hiring illegals, even if employers follow procedures. They want to know they're off the hook if they do. Ariz. will start enforcing its tough new employer sanctions law next month now that a court challenge to it has been turned aside. A business can lose its license for knowingly hiring illegals... for 10 days after one offense, permanently if the business does it again. There are already signs that manv immigrants are leaving Ariz. for other states, though that may also be due to widespread job losses. Federal officials are streamlining visa and green card procedures in an effort to clear a backlog and help employers get the help they need. Expect a few thousand more seasonal farmworkers this year, thanks to changes. H-2A visas will be issued faster and let workers stay in the country longer. Minimum wage requirements will also be loosened. Plus background check rules for green cards are bein~z eased. Cards won't be held up if the only thing missing is an FBI name check. Fingerprinting and criminal background checks will still be needed. Finally...a tightening of the Familv and Medical Leave Act in Labor Dept. regs that should be in place by year end: Every six months, employers can require recertification of the illness by a doctor, and they can contact docs directly to seek clarification if needed. But no cure for unscheduled intermittent leave...the biggest headache. ~ For instant online access and searchable archives, go to kiAlingerbiz.com/start ~ '~ ~~ Unions can expect another tough year at the bargaining table. Once again, health care and pensions will dominate the talks, with more employers aiming for deals like those agreed to last year by the United Auto Workers and the Detroit Three. They shifted costs for health care from the employer to retiree health trust accounts. West Coast port workers have a contract that runs out in July. With a third of U.S. imports moving through L.A. and Long Beach alone and shipping delays already likely because of new trucking regulations, the International Longshore and Warehouse Union has a strong hand to play. Telecom employees will fight for job security and health care when their union's contracts with Verizon and Qwest expire in August. Airline workers at Continental, American, Delta, Southwest and US Airways want raises, now that the airlines are back in the black. Supermarket employees...20O,0O0 of them...will confront chains in Tucson, Phoenix, Columbus, Ohio, Louisville, Ky., and Washington, D.C. Steelworkers at ArcelorMittal, Wheeling-Pittsburgh Steel, U.S. Steel and WCI Steel have multistate contracts that run out Aug. 31. And the Screen Actors Guild, whose contract with producers expires on June 30, wants more for work that's distributed over new media... the same issue that prompted film and television writers to strike. Resign yourself to even more game shows, reality TV and reruns. TV technical crews will suffer from the actors' contentious fight as well as from networks' plans to cut costs by eliminating pilot shows. Instead, producers will pitch ideas for new series directly to sponsors in one-on-one meetings, saving money but costing thousands of jobs. ~:~ Improving U.S. ties with India will pay off for defense firms. Lockheed Martin's $1-billion sale of military transport planes, the largest U.S. defense sale to India ever, may soon drop to second. India plans to buy 126 fighter jets, a contract worth roughly $10 billion, to replace its aging fleet. Lockheed Martin and Boeing are top contenders. But the clock is ticking on the big prize, a nuclear trade deal, owing largely to opposition by leftist allies of India's ruling coalition. If the pact isn't approved in both New Delhi and Washington by year end, and the Democratic candidate wins the White House, it's as good as dead. Sens. Clinton and Obama both want revisions that India would not accept. Another battle looms over China's investment in U.S. firms. A bid to take over IT security firm 3Com Corp. by Bain Capital and China's Huawei Technologies Co. is raising eyebrows. The deal is under review by a government committee, under strict rules imposed last year following other controversial foreign plays for U.S. firms. No matter how the committee rules this spring, Congress will squawk. Your very t ly, ~~ Feb. 15, 2008 THE INGER AS GTON DITORS P.S. Find out how China's changing political and economic climate will affect your business. To join us for an interactive audio conference on March 26, register at www.krm.com/kiplinger or call 800-775-7654. Copyright 2008. The Kiplinger Washington Editors, Inc. Duotation for political or commercial use is not permitted. Duplicating an entire issue for sharing with others, by any means, is illegal. Photocopying of individual items for internal use is permitted for registrants with the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923. For details, call 978-750-8400 or visit www.copyright.com.