ERMUSR MISC 04-05-2007Elk River
Municip al Utilitie s
13069 Orono Parkway
Elk River, MN 55330
April 5, 2007
To: Elk River Municipal Utilities Commission
Jerry Takle
Jerry Gumphrey
Jim Tralle
From: Bryan Adams
Subject: Miscellaneous Issues
phone: 763.441.2020
Fax: 763.441.8099
Enclosed is the packet for Tuesday, April 10, 2007 commission meeting at 3:30 p.m.
Please note the time change to accommodate a commissioner's schedule.
As you are aware, GRE is in the permitting stage of constructing a 150 MW gas turbine
at their Elk River facility. GRE is asking the City for some tax relief on this project. The
City asked in return for some land from GRE for a waste water plant expansion and
payment in lieu of taxes. We also put our "oar in the water" and asked for help to recover
our transmission cost increase from the CAPX 2020 projects. They did agree to pay us
$.20/MWH not to exceed $35,000/yr. for a five year term. Not as much as we had hoped
but better than nothing.
There are two articles included that address the states desire to conserve. The first is
GRE's newsletter addressing the 25% renewable by 2025. The other article from the
Minneapolis Tribune addressed decreasing electric consumption by 1.5%/yr. and 24%
decrease in COZ emissions of 2025.
MMUA is becoming increasing concerned about COZ emission legislation. Attached is
their legislative alert and proposed resolution that should be considered by this
commission. In regard to the issue of global warming, included is a book titled
"Unstoppable Global Warming Every 1500 years" authored by S. Fred Singer and Dennis
T. Avery. This book looks at global warming from a scientific perspective and they
conclude it is a cycle event that occurs at an approximate 1500 year interval. COZ
emission has little to do with global warming. This book is worth your time reading.
Attached is an article from Minnesota Rural Water addressing "Water Operator
Succession Planning." 40% of the water and waste water operators will be eligible for
retirement in the next five years.
As the Elk River Municipal Utilities continues to grow, it is becoming evident we need to
tighten up our inventory control systems. As materials escalate in price, we are
experiencing more theft problems. Also due to longer delivery times, we need to keep
more inventories on hand. In the near future, we will be revising some internal
procedures to better keep track of material. We will also need more building storage.
Attached, is a letter dated March 30, 2007 and a proposed addition to our operation
center. We are trying to secure the cities perspective and conditions if we elect to build at
the plant site at a future date.
On a final note, APPA's National Conference is June 23-27, 2007 in San Antonio, Texas.
Attached is the brochure. I would like to attend unless this commission desires
otherwise. I would also encourage this commission to attend.
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Legislative Alert!
Apri13, 2007 -Page 1 of 2
H.F. 375, the Minnesota Global Warming Mitigation Act, has passed two committees of
the Minnesota House and is taking dead aim at killing all new fossil-fired baseload
generation additions and its supporting transmission. That will cause MMUA
members' power costs to increase dramatically. Although the Minnesota Senate has
not yet started debate over the bill, S.F. 192 is almost identical to H.F. 375 and would
also intend to kill BSP II if passed.
It is time for your voices to be heard by your senators and representatives and the
leadership in the Minnesota legislature. Please do this in several ways:
1. Have your Utility Commission and/or City Council pass the enclosed
resolution. Send the signed resolution to your legislators and the legislative
leadership.
2. Send letters to your legislators from each individual member of your
commission and council urging a thoughtful approach to this legislation and
stressing your community's need for a balance approach to future energy needs,
including renewables, energy conservation and needed baseload facilities.
3. Ask your commercial and industrial customers to also write letters to your
legislators and the Minnesota legislative leadership.
4. Appeal to all your customers for letters of support to be sent to your legislators
and the legislative leadership.
It would be most effective if the resolution and all letters are sent to arrive the week
of Apri19`h. While we know of some rural legislators that are supportive of new
generation and a more thoughtful and balanced climate change bill, they are being
flooded with cards and letters supporting efforts to adopt extreme climate change
legislation that would kill such projects. We must give them the support they need to
oppose this legislation in its present form.
It is important that you ACT NOW to generate the show of public support needed to
defeat this legislation and protect the balanced approach to base load and renewable
generation being taken by municipal and other utilities. Legislators will be back in their
home districts over the Easter break and will be getting hit hard by our opponents. We
must give our legislators the other side of the story.
~iiv~~
This alert provides other materials for your use including a:
• model resolution for your city council/governing board's use
• list of key talking points to be used as you see fit
• sample letter requesting customer support
• sample letter to legislators
Please send a cony of whatever you do to MMUA so we can track the results of this
effort.
Thanks.
Greg Oxley
MMUA Government Relations Director
Work #: 763 746-0708
Cell #: 612 963-1869
E-mail: gtoxley@mmua.org
RESOLUTION IN SUPPORT OF BALANCED
CLIMATE CHANGE LEGISLATION
WHEREAS the Minnesota State Legislature recently passed Renewable Energy Standard
(RES) legislation requiring 25% of utility companies generation portfolio to be produced
by renewable generation by the year 2025, and
WHEREAS the RES legislation would reduce the amount of additional C02 being
emitted into the environment by Minnesota utilities, and
WHEREAS the legislature is now considering major climate change legislation that
could have significant impacts on achieving the recently adopted RES as well as on the
ability of Minnesota utilities to meet the growing needs of the citizens of the State of
Minnesota as well as neighboring states, and
WHEREAS legislators are urged to consider the result of significantly more expensive
power due to climate change legislation and the impact that would have on economic
development throughout rural Minnesota, and
WHEREAS the climate change legislation being considered could also compromise the
reliability of the transmission grid in Minnesota and surrounding region to reliably
deliver the additional electricity needed by Minnesota consumers, and
WHEREAS any climate change legislation adopted by the State of Minnesota needs to
consider the proper balance between reducing C02 emissions and meeting the growing
energy needs of the citizens of the State of Minnesota to ensure the continued health and
vitality of the Minnesota economy, and
WHEREAS the currently proposed legislation only targets the utility sector and ignores
the more significant C02 emissions from other sectors of the economy,
NOW, THEREFORE, BE IT RESOLVED that urges the Minnesota
Legislature to develop climate change legislation that will broadly consider the C02
emissions of all segments of the economy rather than only select segments of the
economy, and
BE IT FURTHER RESOLVED that the legislature is urged to consider the technological
feasibility of legislation being considered as well as the ability to meet the growing
energy needs of the citizens of Minnesota under any climate change legislation being
considered, and
BE IT FURTHER RESOLVED that supports a deliberative approach
to the passage of climate change legislation by the State of Minnesota involving an in
depth study of the economic, technological and environmental elements to be considered
in any such legislation, and
BE IT FURTHER RESOLVED that such a study be carried out in an environment that
recognizes the adopted goals of the Minnesota RES but does not prohibit the electric
utility segment from meeting the needs of the growing Minnesota economy.
TALKING POINTS REGARDING THE PROPOSED
MINNESOTA GLOBAL WARMING MITIGATION ACT
We need a combination of conservation, energy efficiency, renewable and base
load generation, including coal, to solve the global warming problem while
preserving the region's and nation's economy.
2. Wind alone can not meet the electrical needs of the region as was experienced on
February 5`h of this year when there was no wind resource available on one of the
coldest days of the year.
3. The presently proposed legislation would kill the construction of needed future
baseload power plants that are crucial to the future of your community.
4. Prohibiting construction of future baseload power plants and other fossil fuel
generation plants will dramatically increase the cost of electricity to your
community and drive up your electric rates to our customers.
Prohibiting construction of new baseload power plants will also compromise the
reliability of your electric supply and discourage economic development crucial to
your community.
6. Neither the state nor the Minnesota legislature has adequately studied the global
warming bill's impact on your community, the region or the state. Further study
should be carried out before passage of any such legislation and consideration of
compatibility with federal climate change legislation expected within the next few
years.
7. New baseload generation is needed to meet the growing demands of your
customers. Wind generation is only available at best 40% of the time.
04/05/2007 09:38 12186855272 MN RURAL WATER PAGE 02
Operator Succession Planning 101
By Cindy Cook, MDH Certification Officer
"Estimates show that 40% of the water and wastewater utility workforce will be eligible
to retire in the next five years." American Water Works Association Journal, September
2006
The time has come for communities to implement a succession plan to provide for
replacement operators. City officials need to have a plan that includes provisions for a
decent salary and benefits in order to attract an operator in a highly competitive job
market. It's essential to have a solid technical and financial operator succession plan for
the future, not a temporary plan such as contracting with a nearby town or paying some-
one afew bucks cash to stop by a couple times per month. Replacing the fu1L-time
qualified operator with apart-time or unqualified one is an irresponsible action.
Some local officials have been Ialown to try to get their in-law, cousin, or some other
dubious relative that's not qualified for the job, certified. MDH gets calls from mayors,
council members, or clerks almost every day asking what they should do now that the
local operator has retired. Most of them don't realize that Water and Wastewater operation
is an advanced profession that requires necessary skill, thorough training, and on-the job
experience. continued on page 7
Operator Succession Planning 101 (continued from ~overPaBe)
i his is how the conversation usually goes:
~) We tell them no, their newly hired, inexperienced, part-time operator cannot take the exam; 2) T ey tell us
how two people on staff is too expensive, the city couldn't afford to have the previous operator trai the new
person prior to retirement; 3) We tell them they have 90 days to come up with an appropriately cert fied opera-
tor or face a potential fine. up to $10,000 (now that's expensive); 4) Silence; 5) We let them know eir options,
such as contracting or hiring an appropriately certified operator; 6) And if their corriznuzuty wants t contract
with a certified operator, that person has tv visit the system several times per week, the city still has to have a
local operator in training, and we require a copy of the contract to verify the terms, all within 90 da s; 7) At
that point, zrtost communities quickly realize the value of a water professional that has necessary s ' 1, thor-
ough training, and on-the job experience.
A solid succession plan requires that a community hire and train someone at least a ycaz or two (or ore) in
advance; send operators to training courses (most of them are free); and pay them well enough tog the nec-
essary skills, knowledge, and abilities for the job.
Not only is having a certified operator important in making sure drinking water is safe, it's the law. f your
employer balks at getting you the staff you need to get work done, or doesn't have a succession pl in place,
let theca know what the legal consequences could be if they haven't made arrangements for a replae meat
operator. Now is the time to start succession planning, before it's too late!
Information regarding operator certif cation requirements can be found at www.health state mn u,~ o
www.pca.state n_uc, or www.mrwa.com, and water operator salaries at www.lmnc.o~ (for cnembe cities),
~* www.awwa o (for purchase; AWWA members receive reduced rate).
THIS TECFITTICAL,ti99!$tANCE T[MPS
Page 7
Elk River
Municipal Utilities
13069 Orono Parkway
F.lk River, MN 55330
March 30, 2007
To: Jeremy Barnhart
From: Bryan Adams
Subject: Proposed Addition to Storage Building
1705 Main Street Facility
phone: 763.441.2020
Fax: 763.441.8099
The electric industry including the Elk River Municipal Utilities is experiencing
increasing inventory issues due to the raw material costs of steel, copper, aluminum etc.
Theft is becoming a huge issue and long lead times for material are becoming the norm.
The Elk River Municipal Utilities will need to do a better job of fencing our storage areas
and secure more enclosed areas to house valuable inventory.
To accomplish the needed increase in enclosed areas, we are proposing a 40' x 90'
addition to our steel framed, metal skinned garage building. The attached aerial drawing
reflects our current facility layout at our operation center at 1705 Main St. This aerial
drawing shows the proposed inventory building and a future garage/office addition. We
desire to move forward with the proposed addition and request to start the planning
process to allow this to happen.
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TOBACCO CESSATION REIMBURSEMENT
FOR CITY OF ELK RIVER & ELK RIVER MUNICIPAL UTILITIES EMPLOYEES
Although there are many free resources available to help people stop using tobacco, we
recognize the benefits of tobacco cessation and wish to help employees accomplish this goal.
Using funds received from the BlueCross BlueShield tobacco settlement, employees who
choose to quit using tobacco may be reimbursed up to $100.00 for tobacco cessation aids.
These aids include nicotine replacement therapy lie: patches, gum, lozenges), prescription co-
pays, fees for hypnosis or acupuncture, and fees for group or individual classes through an
approved program. (Classes must be approved for reimbursement prior to enrolling.)
Over-the-counter nicotine replacement therapies are covered by the City's and Utilities'
prescription drug plans with a written prescription from your doctor. Call your doctor to get a
prescription, take the prescription to your pharmacy, and all you'll pay is the co-pay. You can
be reimbursed for the co-pay out of the $100 that is available to you through the tobacco
cessation reimbursement program. (Paying only the co-pay instead of the full cost of over-the-
counter items will make the $100 available to you to go further...)
Additionally, the City's and Utilities' health plans offer free support to members. Call Blue Print
for Health Stop Smoking Program at 1-888-662-2583.
Good luck and great success!
To receive reimbursement you must bean employee of the City of Elk River or Elk River
Municipal Utilities, complete this reimbursement form, attach your receipts, and submit your
request to:
City of Elk River employees: Lauren Wipper, Human Resource Representative
Elk River Municipal Utilities employees: Theresa Slominski, Finance Director
Prior Approval for Group or Individual Class:
Lauren wipper or Theresa Slominski Signature Date
Name:
Address:
Tobacco Cessation Aid Purchas
Amount of Reimbursement Requested:
I acknowledge and agree that all items included in this reimbursement request will be/were
used by me for the purpose of tobacco cessation.
Employee Signature
Date