Cook County commissioners listened intently as Mark Spurr discussed the cost savings and other benefits the county would receive if it chooses to purchase hot water heat from the proposed biomass district heating service.
Spurr, who is the president of FVB Energy Inc. along with George Wilkes, president of the Cook County Local Energy Project (CCLEP); Paul Nelson, District Heating Task Force co-chair; and Grand Marais Mayor Jay Arrowsmith DeCoux, made the pitch to the county board on May 19.
The county is the first of 18 potential customers to get a look at a proposed contract. Spurr said the goal is to have 18 contracts signed by the end of June 2015.
Of the total demand for heat, 82 percent is currently targeted to public or publicly supported buildings: Cook County North Shore Hospital and Care Center and the Sawtooth Mountain Clinic, the Cook County Community YMCA, schools, churches, county and city buildings and publicly assisted apartment buildings.
But, as Spurr noted, “The system is designed so that more customers can be added in the future, which should lessen the cost to each participant.”
Among the benefits mentioned, the district heating service provides convenience and flexibility for customers because it eliminates the cost, time and hassle associated with operating and maintaining boiler facilities. It also eliminates future capital investment for replacing aging equipment or installing new equipment to serve expansion. Plus, insurance costs can be reduced if on-site fuel combustion is eliminated.
The ultimate economic benefit, noted Spurr, is that biomass district heating can provide stabilization and long-term reduction of heating costs. While he said he didn’t have a crystal ball to peer into future fuel oil/propane costs, Spurr said the ultimate economic benefits of the system depend upon those prices, and they have gone up 7.5 percent (fuel oil) and 5.6 percent annually for the last 20 years, while the heating district proposed a cap at 4.5 percent per year, but less would be charged if warranted.
County Board Chair Heidi Doo-Kirk asked if the price had risen from $9 million to bring the service to Grand Marais. Spurr replied that it had, and the new cost was estimated to be $13.5 million, much of that due to the installation of pipes in the ground to carry the heat to the buildings. Commissioner Garry Gamble asked about the pollutants that come from the stack of a biomass facility, comparing the danger to coal that is burned and particulate emitted from Taconite Harbor Energy Center in Schroeder.
Spurr replied, “You can’t be serious?”
Gamble said yes, he was concerned about the health of people living near the biomass plant.
Doo-Kirk asked County Attorney Molly Hicken to look over the contract and bring it back to the board for its June 9 meeting where the board will vote on the proposal.
In other business
. Planning and Zoning Director Tim Nelson came before the board with a request to form a Septic Advisory Committee. The committee, said Nelson, would review problems as they arise and take recommendation back to the board for consideration. The board agreed unanimously to Nelson’s request.
Serving on the committee will be two commissioners, Heidi Doo-Kirk and Frank Moe; planning commission members Jerry Hiniker and Charles Laboda; septic contractors Scott Robinson and Jedidiah Smith; Biz Clark of the Cook County Coalition of Lake Associations; Realtor Kim Wolff; citizen at large John Schloot; county Environmental Health Officer Mitch Everson and Planning Director Tim Nelson.
. County Attorney Molly Hicken presented the final county administrator contract to the board for a motion of approval. Hicken said Jay Cadwell had given notice at his job the night before and was waiting for the contract to be approved so he could make an offer on a house.
The board approved the contract at $85,000 per year plus benefits and Cadwell will try to be at his new desk by July 1.
. Upon the county highway department’s recommendation, low bidder Enviro Tech Services, Inc. was awarded the job of supplying the county with 180,000 gallons of liquid calcium chloride at a cost of $163,440.
. The board approved three special event permits after first being signed off by the sheriff’s department and county highway department.
Special event permits were awarded to Tofte 4th of July celebration, the Grand Marais Arts Festival and the Lutsen 99er bike race. Coordinators from each event will work with the sheriff’s department and the highway department on roads that either need to be closed or supervised during the events.
. Lutsen Supervisor Andrew Beavers came before the board asking for support in his attempt to annex several properties that are in the Lutsen fire district, but not the township itself. If successful residents on the Cascade Beach Road and most of Deer Yard Lake would be included in Lutsen Township.
Beavers said he had several requests from people living in those areas asking to be annexed, so he was willing to go the extra mile required to get the needed 20 signatures from legal voters, but only if the county would give its blessing. He said he had a full-time job and a naughty puppy that was keeping him very busy, so any extra work had to count for something.
County Attorney Hicken told Beavers he first needed to get the signatures—and she suggested he get more than 20—then take them to the Lutsen Town board for its okay and then come to the county board for ratification of the annexation.
The board concurred with Hicken and Beavers said he would begin the process.
Want to know more?
. A complete copy of county board meeting minutes may be obtained by calling the County Auditor-Treasurer at (218) 387-3640 or by visiting the county website at www.co.cook.mn.us.
. County board meetings can also be viewed online at www.boreal.TV.
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