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12-16-2009 ECCMINMEETING OF THE ELK RIVER ENERGY CITY COMMISSION HELD AT ELK RIVER CITY HALL ELK RIVER, MN WEDNESDAY, DECEMBER 16, 2009 Members Present: Vance Zehringer, John Setala, Denny Chuba, Susie Overholser, Stephen Rohlf, Maureen Griffiths for Jeff Vassar, Bruce Sayler, Martin Gagliardi, Members Absent: Mayor Stephanie Klinzing, Scott Hagen, Kelly Chase for Todd Berreman, and Ron Touchette Staff Present: Rebecca Haug, Environmental Administrator Nicola (Nicki) Blake-Bradley, Environmental Technician Others Present: Jamie Minnelly, Student Annie Deckert, Economic Development Assistant The regular meeting of the Energy City Commission was called to order by Chair Zehringer at 1:44 p.m. 1. Consider December 16, 2009 ECC Agenda Two changes were requested regarding the agenda. Environmental Administrator Haug added the RFP (request for proposal) regarding the Department of Commerce, Energy Conservation Block Grant and Chair Zehringer requested the removal of item #8 Wind Power Update. MOTION BY COMMISSIONER CHUBA AND SECOND BY COMMISSIONER OVERHOLSER TO APPROVE THE AGENDA WITH CHANGES. ALL IN FAVOR. MOTION CARRIED. 2. Consider September 16, 2009 ECC Minutes No changes were requested regarding the minutes. MOTION BY COMMISSIONER CHUBA AND SECOND BY COMMISSIONER OVERHOLSER TO APPROVE THE MINUTES AS PRESENTED. ALL IN FAVOR. MOTION CARRIED. 3. Purpose of Energy City This item was held over from the last meeting. A question was broached regarding whether to talk about this item or not since the Mayor and City Administrator could not be present. A comment was made that the purpose of Energy City was originally government and industry working together to solve problems and a question was asked as to whether that will continue if company/demonstration site closures happen. Partners may choose to withdraw their memberships if there are closures. Economic Development Assistant Deckert stated that the EDA (Economic Development Authority) made a goal of promoting Elk River as Energy City. Commissioner Gagliardi stated that Resource Recovery Technologies (RRT) will likely not reopen if there is a closure. Environmental Administrator Haug commented upon Hennepin County's decision to back out of their contract with RRT being a factor in the situation regarding RRT's 1 future. Commissioner Gagliardi added that the landfill and RRT are not completely independent of each other but they are not completely dependant either. They have 180,000 tons of waste coming from Sherburne and Anoka Counties, but it won't be cost effective for them to continue if the landfill closes. If expenses increase, RRT cannot sustain itself. Environmental Administrator Haug questioned whether a work session meeting with the City Council might be in order. She will check whether the January (11t") agenda will have an opening. Another question was whether the mission statement of Energy City is still viable was asked. Discussion followed regarding operation of the methane to energy plant at the landfill. 4. Project Conserve Update The next meetings will be held on January 28t" and 30t" at City Hall. Environmental Administrator Haug and Chair Zehringer have figured out more on the water and electrical usage for the participants. Some have decreased and some have increased. The information is encouraging. They are working now on the winter heating season. Another article has been placed in the Star News. 5. 2010 Energy Expo Update The date has been set for February 27, 2010 from 11 - 3 at the Elk River High School. Will Steger (keynote) speaking at 11 a.m. in Zabee Theater for 1 '/ hours (including a question and answer period). Unfortunately, it's not looking good on the financial side. There are no sponsors (other than the City) and few exhibitors at this point. Budget wise, there is a shortage of at least $5,000 (after slashing approximately $15,000 from the budget). There will be no freebies and no grand prizes. Subcommittee members will assist with making calls to prospective exhibitors from the list put together by Staff. The script and mailing list will be sent out as soon as possible. Sponsors are sorely needed. Donations will also be accepted. The Expo may have to be cancelled if enough exhibitors and s~onsors are not found in time. The deadline for making the decision has been set for January 22" . Chair Zehringer stated that while $15,000 was slashed from the budget, he'd like to put some things back into the budget if funds could be raised above the necessary $5,000. Commissioner Rohlf commented on the difficulty to conduct ongoing events. If the Expo goes forward, several of the details that have been determined are that: • Early Childhood Family Education (ECFE) will be working with young children on make and take activities as well as other entertainment (perhaps a story telling "corner"), • Elk River Landfill will have a "Luscious Landfill" (edible) make and take demonstration, • Spectrum High School will have a booth and possibly demonstrate wind turbines, • A tax preparer will be on hand to discuss the energy credits available, and • Home Depot will demonstrate how to install programmable thermostats. If the Expo gets cancelled, the City may be out $6 - 7,000 from non-refundable deposits, etc. A comment was made that this year is more difficult, but it's not that people are not interested as much as situations that are out of anyone's control being a factor. 2 A suggestion was made to contact the Minnesota School of Business, and Ms. Deckert will contact the Economic Development Authority (EDA) regarding sponsorship. She may also have other potential contacts for sponsors. 6. Review ERMU Rebate Commercial & Residential Program -Vance Zehrinqer Chair Zehringer discussed what Elk River Municipal Utilities does for rebates. Considering that the utility must save 1.5% electrical usage in 2010 (which equates to 3 million kilowatt hours), his hope is that 500 households will be able to save 2,000 KWh/year. Discussion followed regarding commercial rebates that were issued for 2009. More than $70,000 worth of rebates were issued to commercial businesses this year. Most work is done regarding lighting retrofits. 7. Electric Cars -John Setala Commissioner Setala gave a brief presentation regarding conversion to electric from gas vehicles. He stated the controller is the key. Direct current (DC) is directly proportional to the battery pack, so you have to have a lot of batteries (80 - 100 volts). It's most practical to have a 48 volt DC motor connected to a controller ($3 - 4,000) which leads to a manual transmission and drive train: 48V DC Motor -controller -manual transmission -drive train. Ideally, one would have an alternating current (AC) motor connected to a controller. It is the most efficient and has the largest range but also has the highest cost ($10,000). The high cost is due to the complexity of the controller (because it has an inverter). The controller turns the engine on and off. Commissioner Gagliardi commented that golf carts have 48 volt batteries, so an inverter could be taken from there. Other systems such as air conditioning, heat, vacuums, in the vehicle are power systems so they would have to have their own power source (separately charged battery). A comment was made that electric heat sucks battery power FAST. Another comment was made that this doesn't sound practical. A response was that it is a hobby. A 4-H robotics team, advised by Steve Vrchota (a GRE employee), is looking at changing a minivan into an all electric vehicle. They will be giving a brief presentation at 3:00 p.m. (following the meeting). 8. Wind Power Update -Vance Zehrinqer Removed from discussion at Chair Zehringer's request. 9. Kellen Farm Resolution -Stephen Rohlf Commissioner Rohlf discussed a resolution supporting the bonding bill put forth by the Kelly Farm to remodel and enlarge the visitor center. Discussion regarding the safety of the site followed. MOTION BY COMMISSIONER ROHLF AND SECOND BY COMMISSIONER SETALA TO SIGN THE RESOLUTION SUPPORTING THE KELLY FARM. ALL IN FAVOR. MOTION CARRIED. 10. Other Environmental Administrator Haug discussed the Office of Energy Security, Energy Conservation Block Grant request for proposals. There are a lot of Energy City qualifiers like Project Conserve. A question was asked as to whether there is a cost to the city. Environmental Administrator Haug's time could be used as a match. There is no downside. The notice of intent to apply for grant funds is due January 15th with the final proposal due January 25tH The City could qualify for $150,000. $100,000 would need to be used toward direct savings (Ice Arena lighting retrofit, for example) and $50,000 would be used toward indirect savings such as programs. MOTION BY COMMISSIONER SETALA AND SECOND BY COMMISSIONER CHUBA TO APPLY FOR GRANT FUNDING EMPHASIZING PROJECT CONSERVE. ALL IN FAVOR. MOTION CARRIED. Chair Zehringer will assist Environmental Administrator Haug in putting together the amounts and paperwork. 11. Schedule Next ECC Meeting and Identify Agenda Items The next meeting will be held January 20th at City Hall in the Uppertown Conference Room. The expo subcommittee will meet on January 6th at 10:00 a.m. and on January 20th at 11:30 a.m. in the Uppertown Conference Room. 12. Adjournment The meeting was adjourned at 3:01 p.m. followed by a presentation from an area 4-H group concerning their project to convert a minivan to an electric vehicle. Minutes pare b is aBlake-Bradley. Tina Allard City Clerk G Vance Zehrin r Energy City ommiss' n Chair 4