12-10-2018 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, November 26, 2018 7:00 o'clock p.m. reformed or it could cost Minnesota taxpayers between $800 to $900 million. Osmek stated in order for that to be completed on time, it needs to be addressed in the very immediate future. Also included in the bill were two bills relating to energy. One bill was to help the Prairie Island Native Indian community to become carbon free by providing them with renewable development account money. The bill also set a cap on the amount of money the residents have to pay for waste at the Prairie Island plant. That amount is now approaching $30 million every single year but that has now been reduced and capped. Another portion of the bill dealt with the Renewable Development Account, which dealt with the Benson turkey manure burning plant. The plant was actually trucking in turkey manure from Alabama and other places in order to run that plant to create energy. The cost of that energy was significantly higher than any other energy source in the state. The plant has been shut down and the state is projecting a savings of $600 to $800 over the next ten years. Some new legislative action that will be considered in 2019 is regarding distracted driving. The MN Legislature is going to clarify some definitions in the state statute regarding criminal vehicular manslaughter. If a distracted driver kills someone, that person will be given a prison sentence. Walsh asked what Senator Osmek sees the Republican Party accomplishing this coming year. Osmek stated he hopes to keep the budget at the cost of the CIP or at the rate of inflation. Over the past few years, the budget has been expanding at more than double the rate of inflation, and the taxpayers cannot afford to keep that up. Osmek noted there is money in the budget for Highway 12 but that additional money is needed for infrastructure. The Legislature also needs to deal with community solar gardens, which is part of a statute created in 2013 to help people who wanted to be part of the green energy movement. Community solar gardens are increasingly becoming very expensive for the taxpayer. Currently power generated from solar gardens costs between $130 to $140 per megawatt hour. Utility grade solar is between $40 and $50 a megawatt hour. Fossil fuel and natural gas is about $7 to $8 a megawatt hour. Osmek noted taxpayers are paying the differential. A portion of the rates is the amount of money they are paying for the land. Currently farmers are getting $1000 a year per acre to rent their land out. Farm land that is sold goes for between $4,000 to $5,000 an acre. Osmek stated the statute was intended for consumers to be able to join the green revolution but a large percent are larger businesses or government institutions, which is not what is was created for. Crosby noted there is talk about a gas tax increase and asked what the tax is currently. Osmek indicated it is eitherl8 or 23 cents a gallon for the state and that what is being proposed is between a nickel and a dime. Osmek noted the Highway Distribution Fund over the next seven to ten years is going to exceed inflation by 90 percent and that the state is going to receive even more money because the fees and car tabs continue to escalate. Crosby stated the tab fee in Minnesota is exceptionally high and it is taxed on an annual basis. Crosby stated his understanding is that those dollars are supposed to go to infrastructure. Page 2 of 6