5.2. ERMUSR 04-17-2008
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Elk River
Municipal Utilities
13069 Orono Parkway • PO. Box 430
Elk River, MN 55330-0430
March 2 ] , 2008
To: Jerry Takle
President of Elk River Municipal Utilities Commission
From: Bryan Adams
General Manager. ~ ~
Subject: Jackson Street Water Tower
Phone: 763.441.2020
Fax: 763.441.8099
This memo is in response to your requests for more information on the Jackson Street Water
Tower. At our March 2008 Elk River Municipal Utilities Commission meeting, we discussed the
future of this tower. We either need to paint this structure or remove it. The estimated cost to
remove this tower is in the $35,000 range. The estimated cost of repainting is in the $55,000 to
$60,000 range and will need to be spent on a 10 to 12 year interval. Also by removing this tower
and pump house, this lot can be redeveloped.
Enclosed is the following information for your review.
1) Picture of this 100,000 gallon water tower.
2) Aerial view of Jackson Water Tower area.
This tower was constructed in 1920 by Minneapolis Steel and Machinery Company and was the
beginnings of Elk River's Municipal water system. This tower and the "Cretex" water tower,
which was demolished in 2002, have not been in use since approximately 1986. When the water
tower on Freeport Ave. was constructed in 1985, the Jackson Ave. and Cretex towers became
obsolete due to their height. In 1997, municipal well #1 which is at the base of the Jackson Ave.
"T'ower was properly abandoned.
In 2002, Utility staff proposed the Jackson Ave. Tower be demolished. It was decided at that
time to market this to~,~~er as a place to attach telecommunication antennas. These marketing
effi~rts have not been successful due to the towers' location and not being tall enough.
There is nothing unique about this structure. Still in rural America in the small communities,
many of these tov~~ers are still in use. Due to the smaller capacity and limited height, these
structures often do not meet today's fire flow and pressure needs for larger or growing
communities.
Sherburne County, MN
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Finally, the long term hope in the Senate is to garner the 60 votes necessary on the old, comprehensive, $18
billion bill that pounds the oil and gas guys but still does not include the proper CREB language. This is wishful
+hinking for Democrats, who hope to move a tax bill to the floor before Memorial Day recess.
dUCLEAR
A new tax bill obviously offers an opportunity for public power to include the nuclear PTC language, despite
some major hurdles. APPA and LPPC are working together on this issue, including an upcoming meeting with
NEI (the coops are also invited).
CLIMATE
The Senate still leads in this category: yesterday Majority Leader Reid told supporters of Lieberman-Warner
that floor time is now being reserved for the first week in June, despite the absence of the magical 60 votes.
However, Sens. Lieberman and Boxer are now suggesting they have 45 hard votes, and a possible 15,
depending on how the floor debate proceeds. Large questions still loom:
• Is floor time on this controversial issue worth the political risk for the Democrats, especially in this volatile
election year?
• At crunch time, can the Dems get close to 60 votes?
• Can the Dems overcome the large number of amendments that will surely come (200, 100, or even 50 serious
amendments)?
• With the downturn in the economy, and possible waning of climate as a priority issue, is this the time to bring up
the leading Senate bill?
• Does the Senate look silly if the House is taking a more measured, inclusive approach to their legislation?
In addition, supporters of moving a bill still are unhappy with Chairman Boxer's floor strategy -she stated
she'd pull the bill if "bad things" started happening on the floor. Not a very cooperative thing to say. Finally,
the environmental community seriously wanting floor debate, let alone a bill, is still an open question.
The House, meanwhile, proceeds - as the House moves to developing its legislation Rick Boucher's
abcommittee has announced a climate hearing next week that will look at possible changes to the Clean Air
Act as a way to tackle ghg emissions.
FARM BILL
Two steps forward, one step back. With another deadline of April 18looming-possibly the last extension
granted-key negotiators are still haggling over final numbers/cost, and pay-fors. This is now an open, ugly,
and divisive process, with lots of finger pointing. Bottom line: the Senate wants an additional $10 billion over
the baseline, including a tax package full of special treatment projects, to go for conservation and disaster
programs; the House has finally caved to the $10 billion but doesn't want to give on a new tax title - no extra
goodies. And Ways and Means Chairman Charlie Rangel remains resolute on his priority -nutrition programs.
If the deadline is not met two weeks from now there is serious consideration to extending the current farm bill
for one year -admitting, like for so many other issues, getting through the elections and getting to a new
Congress is a real option.
Michael Nolan
MJN Consulting LLC
202.359.4496
__
Going green? See the top 12 foods to eat organic.
Adams, Bryan
From: michael nolan [mjnolan4827@hotmail.com]
Sent: Friday, April 04, 2008 12:17 PM
To: Jack Kegel; acrowser@rea-alp.com; dvoss@ci.anoka.mn.us; jerrym@austinutilities.com; Bill
Black; theoldsalt29@msn.com; Joseph.steffel@cityofbuffalomn.org;
rhs@schulteassociates.com; lorift@utplus.com; david.niles@dahlen-berg.com;
cpunt@lakesnet.net; dboyce@ci.east-grand-forks.mn.us; Adams, Bryan; Greg T. Oxley;
jimk@hpuc.com; Hutchinson -Mike Kum; Marshall-Brad Roos; dmc@mcgrannshea.com;
Mike Nitchals; bschwandt@mpsutility.com; bjagusch@cityofmora.com;
dbirgen@mrenergy.com; billy@mrenergy.com; MRES--Joe Sullivan; tomh@mrenergy.com;
dalene@mncable.net; NMPA-Darryl Tveitbakk; Owatonna -Steve Shurts; Ikoshire@rpu.org;
Shakopee-LouVanHout (E-mail); Iw.johnston@smmpa.org; ra.hayward@smmpa.org; Steve
Downer; Susan Coe; crude@citytrf.net; Iheitke@ci.willmar.mn.us
Subject: Congress is back: The next few weeks
They're back. After atwo-week recess both chambers are back in session, scrambling to finish their priorities
over the next 8 weeks, after which they get their next recess come Memorial Day. After that it's all an open
question, since the legislative calendar is shortened in this election year.
Big ticket issues that will receive attention during April and May include the housing and mortgage bills
currently on respective floors; defense authorization; appropriations bill, including another supplemental; food
safety; and the budget resolution. Energy topics include a tax package, climate change, high oil prices, and a
major farm bill that could impact energy.
Two major energy-related hearings this week are dealing with dramatically high oil and gasoline prices. The
House Select Committee on Energy Independence and Global Warming heard testimony Tuesday from the five
major oil companies: Democrats, led by Chairman Ed Markey, bashed the industry execs and blamed them for
not doing e enough to stop climate change; not doing enough to support renewables; and opposing the energy
tax package that Congress has been unable to pass. Today the Senate took testimony from a several economists
about the role speculators play in the oil and gasoline markets.
TAX
The House has repeatedly passed an energy tax package, but the Senate has not (recall CREBs--Clean
Renewable Energy Bonds--is in the tax package). Now, atwo-track process has started in the Senate - a short
term fix and a long term fix. Today legislation is being introduced to try to break the logjam: Sens. Cantwell
(D-WA) and Ensign (R-NV) are introducing a new "slimmed down" tax bill (the Clean Energy Tax Stimulus
Act) that essentially would grant short, one year extensions to the renewable production tax credits everyone
needs -including public power. CREBs is part of this package; the bill calls for a one year extension, with an
additional $400 million, plus the "definitional" fix -the money would be split three ways (us, coops, and other
governmental bodies). This is still not perfect (the House language remains preferable) but is a step in the right
direction.
While this skinny bill is creative and bipartisan (including Sens. Klobuchar and Domenici) it still faces a major
hurdle: it's not paid for. It avoids the controversial "pay fors" in earlier bills (stripping the oil and gas industries
of several current tax credits), but also doesn't pay for itself, and the House will clearly object. The bill's
estimated cost is roughly $6-6.5 billion.
The bill is a help for CREBs, but only represents half a loaf. To that end, APPA, signed jointly by LPPC, is
sending a letter to all Senate offices urging support for our fixes to the CREBs program. This is warranted and
necessary: while helpful, the Senate has never gotten it right and needs to recede to the better House language,
if conference ever occurs. At this point most believe a tax package will pass this year ,but we will be lucky to
get only the temporary fixes included in the new bill.
Headed to Europe later this year, undeterred by the soaring euro?
A_t least your flight options should be improved. On March 30,
the Open Skies pact between the U.S. and the European Union takes effect,
letting airlines fly from any U.S. city to any in the EU, and vice versa.
Lots of convenient new routes and additional fli hts are coming,
especially to London's Heathrow: From Atlanta, Raleigh, N.C., NYC,
Detroit, Minneapolis-St. Paul, Dallas, Houston, Denver, L.A. and Seattle.
Increased competition will bring lower fares, but not soon.
Strong demand combined with high oil prices spell high rates through 2008.
The flagging economy means more Americans vacationing on the cheap
than in the past. Most will still take time off, leaving home for a while.
But more will seek bargain condo rentals and cook some of their own meals,
rather than enjoying hotel stays and dining in restaurants every day.
A surge in foreign visitors will help ease some of the pain.
Skyrocketing oil prices aren't the only energy worry.
Too little storage capacity for natural gas is a growing concern
as well. The industry's ability to bank natural gas in spring and summer
to meet heavier winter needs is limited to about 3.6 trillion cubic feet,
the amount in storage last Oct. But use keeps climbing. By April, supplies
will be at least 20% below normal, despite average winter temperatures.
Developing new storage...tanks or natural caverns is tough,
with both a high price tag and a series of regulatory hurdles to navigate.
One Fla. company is testing the waters, though. It plans a storage tank
with a capacity of 8 billion cubic feet. If OK'd, others will follow.
Could the U.S. end up relying on Russia for its nuclear power?
It may be. Russian uranium ore, refined in the U.S. to make fuel,
will account for 20% of U.S. needs by 2020. But Russia also provides half
of the U.S. nuclear power industry's supply of enriched uranium fuel.
Capped by law at 50% now, Russia's share will grow gradually through 2020,
when the restriction ends. The U.S. lacks the ore to be self-sufficient.
The silly season has arrived early in Congress this year.
' Exhibit No. 1: The budget debate. It's a whole lot of talk
and a great deal of staff work for nothing that will really matter.
Congressional leaders know it, but you won't get any of them to admit it.
It's all posturing for the campaigns, with votes arranged
to get candidates on record regarding tax cuts, oil drilling in Alaska,
barring pork, etc. The goal is mostly to embarrass one side or the other,
creating fodder for ads that take votes out of context for partisan gain.
In the end, there'll be no spending pacts, except for defense.
Look instead for temporary funding, with tough decisions delayed
until 2009, when a new president and a new Congress will be in charge.
Yours very tr y,
/~.
March 14, 2008 THE K INGER ASH GTON ITORS
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Drop in wind power leads
to grid emergency in Texas
A dramatic drop in wind power in Texas was the apparent cause of a
three-hour emergency on the state's grid in late February.
The Electric Reliability Council of Texas said it carried out the sec-
ond stage of its emergency grid procedures the evening of Tuesday,
Feb. 26 after a major loss of wind generation. Wind production, which
had been running at 1,700 MW, plummeted to as low as 300 MW
that evening, right before the emergency procedures were activated,
ERGOT said.
ERGOT dropped 1,100 MW of load within 10 minutes by cutting
power to interruptible customers.
Terry Hadley, a spokesman for the Texas Public Utility Commission,
said it was the most serious event on the state's grid since Texas expe-
rienced rolling blackouts in April 2006. He said PUC staff have begun
an inquiry.
Preliminary reports "indicate the frequency decline was caused by
a combination of events, including a drop in wind energy production
at the same time the evening electricity load was increasing, accompa-
nied by multiple power providers falling below their scheduled energy
production," ERGOT said. ^