HomeMy WebLinkAbout2024-11-15 EEC Meeting Packet
Meeting location:
Edina City Hall
Community Room
4801 W. 50th St.
Edina, MN
Energy & Environment Commission Meeting Agenda
Thursday, November 14, 2024
7:00 PM
Accessibility Support:
The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification,
an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting.
1. Call to Order
2. Roll Call
3. Approval of Meeting Agenda
4. Approval of Meeting Minutes
4.1. Minutes from September 12, 2024 Meeting
5. Special Recognitions and Presentations
6. Community Comment
During "Community Comment," the Board/Commission will invite residents to share
issues or concerns that are not scheduled for a future public hearing. Items that are on
tonight's agenda may not be addressed during Community Comment. Individuals must
limit their comments to three minutes. The Chair may limit the number of speakers on
the same issue in the interest of time and topic. Individuals should not expect the Chair or
Board/Commission Members to respond to their comments tonight. Instead, the
Board/Commission might refer the matter to staff for consideration at a future meeting.
7. Reports/Recommendations
7.1. Staff report on Time of Sale with Energy Disclosure
7.2. Tree Recognition Campaign
7.3. Parking Project Advisory Communication
7.4. Paved Area / Community Gardens Work Plan Item
Page 1 of 32
8. Chair and Member Comments
9. Staff Comments
10. Adjournment
Page 2 of 32
BOARD & COMMISSION
ITEM REPORT
Date: November 14, 2024 Item Activity: Action
Meeting: Energy & Environment Commission
Agenda Number: 4.1
Prepared By: Marisa Bayer, Sustainability Manager
Item Type: Minutes Department: Engineering
Item Title: Minutes from September 12, 2024 Meeting
Action Requested:
Approve minutes.
Information/Background:
Approve minutes from Sept. 12, 2024 meeting.
Supporting Documentation:
1. Sept 12 EEC Minutes
Page 3 of 32
MINUTES OF THE
ENERGY & ENVIRONMENT COMMISSION
REGULAR MEETING
7:00 PM THURSDAY, SEPTEMBER 12, 2024
Meeting location:
Edina City Hall
Community Room
4801 W. 50th St.
Edina, MN
1. Call to Order
Chair Lukens called the meeting to order at 7:00 p.m. then shared the procedure for
public hearing and community comment.
2. Roll Call
Answering roll call were Commissioners Lukens, Haugen, Walker, Bartholomew,
Tessman, Schima, Martinez-Salgado, and student Commissioners Langsweirdt and
Srivastav.
Absent was Commissioner Weber.
Commissioner Dakane arrived at 7:14 p.m.
3. Approval of Meeting Agenda
Schima made a motion, seconded by Martinez-Salgado, to Approve Meeting Agenda.
Motion Carried.
4. Approval of Meeting Minutes
4.1. Minutes from August 8, 2024 Meeting
Schima made a motion, seconded by Tessman, to Approve August 8, 2024 Meeting
Minutes. Motion Carried.
5. Special Recognitions and Presentations
6. Community Comment
No community comment was received.
7. Reports/Recommendations
7.1. 2025 Work Plan
Haugen made a motion, seconded by Bartholomew, to Approve 2025 Work Plan. Motion
Carried.
Page 4 of 32
EEC discussed their 2025 work plan and the draft plan provided in the packet. Decisions
were made to remove the item related to student commissioner-led projects and
incorporate engagement with schools into the ongoing initiatives work plan item.
7.2. Sun Current Letter Promoting Electric Vehicle Event
Haugen made a motion, seconded by Martinez-Salgado, to Approve the Draft Letter to
Submit to the Sun Current. Motion Carried. Commissioner Bartholomew abstained.
Commissioner Tessman introduced the draft letter explaining it will promote both the
Electric Vehicle Showcase Event and importance of the electric vehicles to achieving the
Climate Action Plan Goals.
7.3. EEC Social Media Takeover
Staff Liaison Bayer explained the social media takeover opportunity. EEC agreed it was a
valuable communications tool and student commissioners agreed to participate.
8.Chair and Member Comments
•Commissioners asked about the opportunity to distribute information at the
Annual Tree Sale about the Tree Recognition Program. Staff will follow up to
confirm.
•Commissioners asked for an update on the staff report to the EEC's TISH report.
Staff are collecting data and will bring forward their report when ready.
9.Staff Comments
•Staff Liaison Bayer reminded Commissioners of the media contact and
communications policies in the member handbook.
•GHG inventory is almost complete and staff expect to have a presentation to the
EEC at the October or November meeting.
10.Adjournment
Schima made a motion, seconded by Martinez Salgado, to Adjourn. Motion carried.
Meeting adjourned at 9:00 p.m.
Page 5 of 32
BOARD & COMMISSION
ITEM REPORT
Date: November 14, 2024 Item Activity: Discussion
Meeting: Energy & Environment Commission
Agenda Number: 7.1
Prepared By: Marisa Bayer, Sustainability Manager
Item Type: Report & Recommendation Department: Engineering
Item Title: Staff report on Time of Sale with Energy Disclosure
Action Requested:
None, discussion only.
Information/Background:
The Energy and Environment Commission (EEC) completed a “Time of Sale Energy Disclosure
Program Report” as part of their 2023 work plan, and approved the report at their February 8, 2024
meeting. The EEC report recommends the adoption of a time of sale policy that addresses health,
safety, and energy.
This staff report is a response to the EEC’s report and includes a summary of existing city policies,
Edina permit and housing stock data, and implementation considerations if the city were to move
forward with a time of sale policy. Sustainability Manager Marisa Bayer and Chief Building Official
Nate Borwege will review the report. The next step will be scheduling a City Council presentation
for the EEC and Staff.
Supporting Documentation:
1. Staff Report Draft, Time of Sale with Energy Disclosure
2. EEC Report, Time of Sale Energy Disclosure
Page 6 of 32
Date: November 12, 2024
To: Mayor and City Council
From: Marisa Bayer, Sustainability Manager
Nate Borwege, Chief Building Official
Chad Millner, Director of Engineering
Subject: Time of Sale Inspections and Energy Disclosure Policy
Staff Recommendation: Do not adopt a Time of Sale policy.
Information/Background
The Energy and Environment Commission (EEC) completed a “Time of Sale Energy Disclosure Program
Report” as part of their 2023 work plan, and approved the report at their February 8, 2024 meeting. A
TOS policy aligns with Edina’s Climate Action Plan Strategy BE 1-13, “Establish a performance
ratings/labeling program for all homes listed for sale or rent so that owners, tenants and prospective
buyers can make informed decisions about energy costs and carbon emissions. Rating program to
require Energy Audit/Energy Efficiency Program participation.”
This staff report is a response to the EEC’s report and includes a summary of existing policies, Edina
permit and housing stock data, and implementation considerations.
Time of Sale Inspections
Time of Sale (TOS), Point of Sale (POS) and Truth in Sale Housing (TISH) are local government policies
that require an inspection to be completed before a home can be listed or sold. The goal of these
policies is to ensure safety and quality of residential properties. These inspections are in addition to
private inspections typically completed during a real estate transaction at the discretion of a buyer.
These policies require inspection of the health and safety of a home as it relates to building code,
submission of the inspection report to city staff, and in most cases, require remediation of hazardous
issues before a home can be listed or sold. This differs from typical private home inspections where an
item flagged by the inspector is not required to be remediated by the local government agency.
Page 7 of 32
STAFF REPORT PAGE 2
Eleven metro cities require some sort of pre-sale inspection of the home. Robbinsdale, cited in the EEC
report, repealed their policy in 2024 due to diminishing value of the policy because of repeat
inspections of the same homes and a decrease in the number of hazards being identified. Columbia
Heights, not cited in the EEC report, adopted a TOS policy in 2024 to address unpermitted and
unlicensed work completed by “housing flippers” that create hazards for new homeowners and to
address sewer inflow and infiltration issues. Appendix 1 summarizes existing and repealed policies in the
metro area.
Energy Disclosure
Minneapolis and Bloomington include energy disclosure as a component of their policies. Energy
disclosure is an additional report that provides an “energy score” of the home’s energy efficiency, plus
improvements to increase a home’s score. Unlike health and safety hazards, cities cannot require
improvements to the mechanical equipment or building envelope.
Both cities worked with the Center for Energy and Environment (CEE) to update their existing time of
sale inspection policies to create energy disclosure criteria and inspection processes. CEE also
supported realtor engagement and evaluator training on the new criteria. Both cities currently contract
with CEE to generate energy disclosure reports in coordination with home evaluators, publish energy
scores and support policy education and outreach.
Policy Need
Staff collected permit, assessing and energy audit data to understand the quality of Edina’s housing stock
and what value a pre-sale inspection might add to identify potential health, safety and energy
improvements.
Permit & Assessing Data
Building Inspections gathered 2021–2023 permit data for single-family and town/twin homes to
understand the level of investment being made in Edina’s residential housing stock. There are 12,533
single-family and 1,005 town/twin homes in Edina. Permit data indicates that residents are actively
investing in their homes, including upgrades to items that would be evaluated in an energy disclosure
report (e.g., heating and cooling systems, building envelope). Although insulation only permits are low,
projects often upgrade insulation as part of a building permit, which is not tracked separately, or in
some cases, might upgrade insulation without permit approval.
Table 1. 2021-2023 Permit Data for Single-Family and Town/Twin Homes
Permit 2021 2022 2023 Total 3-year
Average
Demos 66 55 52 173 58
New Homes 68 62 57 187 62
Window/Door Replacements 475 378 350 1,203 401
Insulation Only 15 9 6 30 10
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STAFF REPORT PAGE 3
Permit 2021 2022 2023 Total 3-year
Average
Furnace/AC's 825 915 827 2,567 856
Boilers 20 12 23 55 18
Water Heaters 551 587 583 1,721 574
As part of the property valuation and market value determination process, assessors determine the
property’s “effective age,” which is a way to state the age of the property based on its current condition
rather than its actual age (i.e., year built). For assessing purposes, maintenance items like roofs and
HVAC systems do not change a property’s effective age. Assessing data complements the permit data by
illustrating that although the average year built for Edina’s single-family and town/twin-home housing is
closer to 1960s and 1970s respectively, the level of investment being made shows a newer, higher
quality and condition of Edina’s homes.
Table 2. Actual and Effective Age for Single-Family and Town/Twin Homes, All Homes
Property Type Average Actual
Age
Average Effective
Age
Average
Difference
Single-Family 1962 1991 27
Town/Twin Home 1977 1993 15
Energy Audit Data
The City of Edina partners with CEE, Xcel Energy and CenterPoint Energy’s home energy audit
program implementer, to provide discounted audits to residents who live in 1–4-unit homes. During a
home energy audit, energy experts inspect the home’s insulation, heating and cooling systems and
water heater to provide an energy savings plan report with recommended energy-saving upgrades and
associated rebates and incentives to help cover project costs. The cost for a home energy audit
includes advisor services to support project implementation.
In the past three years, 565 homes received a home energy audit with 73% of those visits resulting in at
least one recommendation to invest in their home’s energy efficiency (Table 3). The most common
recommendation is insulation and air sealing (Table 4). Permit data in Table 1 complements CEE’s audit
recommendation data by demonstrating that investments in these types of recommendations are being
made in Edina; however, the most common recommendation–insulation–doesn’t have the same level of
investment based on permit data alone.
Table 3. 2021-2023 Home Energy Audit Data
Audits 2021 2022 2023 Total 3-year
Average
Total Number of Audits 157 183 225 565 188
Audits Receiving Recommendations 94 144 173 411 137
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STAFF REPORT PAGE 4
Table 4. 2021-2023 Home Energy Audit Recommendations
Audit Recommendations 2021 2022 2023 Total 3-year
Average
Water Heater 35 53 71 159 53
Cooling System 41 60 50 151 50
Insulation and Air sealing 77 96 135 308 103
Heating System 31 50 43 124 41
Policy Development & Implementation Considerations
If City Council directs Staff to move forward with a TOS inspection policy, Staff time will be needed to
determine inspection evaluation and energy disclosure criteria, plus time to hire staff, create internal
processes and forms and make software improvements. In addition, Staff time for engagement with
realtors, brokers, home evaluators and other interested parties is recommended for policy education.
Scope
If City Council directs Staff to move forward with a TOS inspection policy, Staff recommend the
following when it comes to policy scope:
• Require inspection prior to closing (e.g., time of sale or point of sale inspection policy) to avoid
confusion or debate about what the definition of listing is or when a listing is effective.
• Applicable to single-family homes and town/twin homes with exceptions for planned
demolitions, new construction (first owner) and public transfers to stay consistent in its scope
with neighboring cities to reduce confusion.
• Include a provision that only items posing an immediate hazard to the occupants of the
structure are required to be repaired. Allow transfer of hazardous repairs to the buyer with
city approval, an escrow and timeline requirement to ensure repairs are completed.
• Inspection to evaluate health and safety hazards, with an energy disclosure inspection
component. The specific criteria to be evaluated would need to be determined during a policy
development process.
Budget and Staffing
Inspection implementation varies—some cities have dedicated inspectors on staff to complete the TOS
inspection, and others approve or license home evaluators and allow home sellers to choose from that
list with staff managing the licensing and documentation for the policy. There are approximately 670
single-family and town/twin home sales annually. Staffing will need to cover conducting or reviewing
inspections for a majority of those home sales dependent on policy structure.
Staff estimate that for in-house implementation, where staff inspect properties and issue certifications,
2 FTE are needed, costing approximately $205,573 to $258,474 annually, plus a one-time cost to
purchase inspection equipment (e.g., tools, ladders) and vehicles that are not currently budgeted. This
estimate is based on the number of property sales and providing timely inspections, staffing levels other
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STAFF REPORT PAGE 5
cities have when implementing internally, and the current capacity of Building Inspections. The staff
costs for doing inspections in-house could be recouped through an inspection fee, but a fee to fully
cover staffing costs might be higher than peer cities with similar policies and in-house implementation.
Supplemental staff time would be required from the Chief Building Official and Sustainability Manager to
oversee policy implementation and from central services staff for related software maintenance.
For a policy that requires third-party inspections, staff recommend that at least one FTE be hired to
manage implementation, license inspectors, educate the community and realtors, review inspection
reports, and issue certifications. These staff costs are estimated to be $102,670 to $129,237 annually,
which can be partially recouped through a licensing fee. This model would also require staff time to
create licensure criteria and processes. Supplemental staff time would be required from the Chief
Building Official and Sustainability Manager to oversee policy implementation and from central services
staff for related software maintenance.
Minnesota cities with energy disclosure (Minneapolis and Bloomington) have an annual professional
services agreement with CEE to implement the energy disclosure portion of their policy. This cost is
estimated to range from $15,000–$75,000 a year that is currently not budgeted. If a policy were
adopted that included energy disclosure, Staff recommend hiring CEE or other firm to provide similar
implementation services.
In addition to budget for staffing and energy disclosure consultant services, a to-be-determined cost will
need to be budgeted for software to collect documentation and track policy compliance.
Conclusion
Several peer cities have TOS, POS or TISH policies to ensure safety and quality of residential
properties, with two cities including energy disclosure to help potential buyers understand the energy
performance of a home. Based on Edina permit and assessing data, residents are actively investing in
their home’s safety and quality, and upgrading heating and cooling systems and the building envelope to
increase energy performance. In addition, Edina’s discounted home energy audit program has resulted
in more than 560 home energy audits in the past three years, giving homeowners insight into their
home’s energy use and an energy savings plan to make upgrades.
Based on the data available, Staff do not recommend adopting a TOS policy. To continue to prioritize
energy efficient investments, including building electrification and renewable energy, the City should:
• Continue its discounted home energy audit program, exploring ways to target outreach to
older housing stock and properties who haven’t upgraded their HVAC systems.
• Expand funding for its Community Climate Action Fund to support more residential efficiency
upgrades and home electrification projects.
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STAFF REPORT PAGE 6
Appendix 1: Summary of Minnesota City Time of Sale (TOS), Point of Sale (POS) and Truth in Sale Housing (TISH) Policies
The following data was collected by Staff from city websites and education materials.
City Type Scope Rating Energy
Disclosure
Remediation
Requirement
Remediation
Transferability Certification Exemptions Implementation Cost
Bloomington TOS
Single and two-
family dwellings,
condominiums,
townhouses and
mobile homes
Hazards Yes Hazards
Yes
Consent from city
required
Certificate of
Compliance
Multifamily,
demos, first
owner, public
transfer
In-house $250
Brooklyn
Park
Repealed 2013
Repealed due to perceived value of program and duplication with independent home inspections completed by buyers
Columbia
Heights TOS
Single, two-, and
three-family
dwellings,
condominiums,
townhouses,
and mobile
homes
Hazards Hazards
Yes
Consent from city
and cash escrow
from buyer
required
Certificate of
Property
Maintenance
Multifamily,
demos, first
owner, public
transfer
In-house
$160;
$25 for
additional
unit
Crystal Repealed 2015
Repealed due to perceived value of program and duplication with independent home inspections completed by buyers
Golden Valley POS
All properties
without I/I
Compliance
Certificate
Inflow and
infiltration
deficiencies
Deficiencies n/a Certificate of I/I
Compliance In-house
$250
residential
$750
commercial
Hopkins Repealed 2020
Repealed due to budget cuts, staff time to ensure compliance and avoid closing delays, and duplication with independent home inspections completed by buyers
Page 12 of 32
STAFF REPORT PAGE 7
City Type Scope Rating Energy
Disclosure
Remediation
Requirement
Remediation
Transferability Certification Exemptions Implementation Cost
Maplewood TISH
Single, two-, and
three-family
dwellings,
condominiums,
townhouses
At or
below
ordinance
standards
Ordinance
violations n/a Disclosure
report Mobile homes Licensed 3rd party
evaluators
Depends
on
evaluator;
$130
licensing
fee
Minneapolis TISH
Single-family
houses
Duplexes
Townhouses
First-time
condominium
conversions
Hazards Yes Hazards
Yes
Submit transfer
form to city and
complete repairs
within 90 days of
closing
Certificate of
Approval
Certificate of
Completion
(for
transferability)
Licensed 3rd party
evaluators
Depends
on
evaluator
Mounds View POS
All properties
without I/I
Compliance
Certificate-
Sewer line only
Inflow and
infiltration
deficiencies
Deficiencies n/a Certificate of I/I
Compliance 3rd party evaluators
$150 plus
evaluator
cost
New Hope POS
Single-family
homes,
condominiums,
townhomes,
cooperatives,
and apartment
buildings
Code
compliance Code violations
Yes
Consent from city
and cash escrow
from buyer
required
Certificate of
Property
Maintenance
In-house
$160 per
unit;
$20 for
each
additional
unit in MF
Richfield POS
Single family and
two-family
homes,
condominiums
Code
compliance
Code violations
for code year
built; immediate
hazards
Yes
Consent from city
and cash escrow
from buyer
required
Certificate of
Housing
Maintenance
In house $100-230
Robbinsdale Repealed 2024
Repealed due to costs, diminished need for program and repeat inspections due to property resales
Page 13 of 32
STAFF REPORT PAGE 8
City Type Scope Rating Energy
Disclosure
Remediation
Requirement
Remediation
Transferability Certification Exemptions Implementation Cost
Saint Paul TISH
Single family,
duplex,
condominium,
and townhomes
Hazards Disclosure only
SF must have
HWSD/A
n/a Disclosure
report
Immediate
family transfer,
first owner,
public transfer,
demos
Licensed 3rd party
evaluators
Depends
on
evaluator
St. Louis Park POS
Single family and
two-family
homes,
condominiums
Code
compliance Code violations
Yes
Consent from city
and cash escrow
from buyer
required
Certificate of
Property
Maintenance
In house $170-360
South St.
Paul TOS
Single family,
two-family, and
multiple-family
dwellings
Hazards Hazardous
Yes
Submit transfer
form to city and
complete repairs
within 30 days of
closing
Letter
Demos, first
owner, public
transfer,
transfer to
family
Licensed 3rd party
evaluators
Depends
on
evaluator
Page 14 of 32
Final Draft
1
Time of Sale Energy Disclosure Program Report
January 2024
Page 15 of 32
Final Draft
2
Table of Contents
1. Introduction 3
2. Background 3
3. Why Time of Sale of Housing Inspection? 4
4. Case Studies: Austin, Portland, Minneapolis, and Bloomington 6
5. Recommendations 8
6. Bibliography 11
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1. Introduction
Across the country, cities and states are increasingly adopting measures requiring disclosure of
the energy efficiency of residential properties prior to them being sold. In the Midwest, states
such as Kansas and South Dakota have adopted energy efficiency disclosure policies for new
construction and cities such as Minneapolis and Chicago have likewise adopted some form
energy efficiency disclosure requirements for residential home sales. The contours and
requirements of these policies vary, but the overarching goal of lowering energy costs, reducing
GHG emissions, and improving the health and safety of communities is a consistent theme
across all these measures. The City of Edina should consider adopting a similar policy to meet
the goals of both its Comprehensive Plan and Climate Action Plan.
2. Background
The state of Minnesota Statute 412.221 gives cities direct authority to protect public health and
safety, and to enact ordinance for fire prevention, allowing the establishment of health and
safety inspections (Minnesota Legislature, 2022). Additionally, under the state building code
Minn. Stat. 326b.121, cities can enact ordinance requiring homes to be kept in good conditions
or good repair. (Minnesota Legislature, 2022)
In 2020, the City Council of Edina formally adopted its decennial Comprehensive Plan (CP)
which, among other things, outlined a vision for Edina on issues related to both housing and
energy and the environment. The Comprehensive Plan noted that, in terms of housing,
“demographic changes are driving a demand for different housing types, including smaller units
which are more affordable, and have lower costs for maintenance, energy, and water” (CP, 4-
16). Relatedly, the Energy and Environment chapter found that Edina’s energy use per capita
was the highest in the region, second only to Bloomington which has already enacted a time of
sale disclosure requirement. As a result, the plan concluded that continued focus on improving
energy efficiency “will be critical to reducing emissions and keeping costs down” (CP, 8-4, 8-5)
(City of Edina, 2018)
Shortly after the adoption of the Comprehensive Plan, in 2021, the city of Edina published and
approved its Climate Action Plan (CAP). The plan set a Greenhouse gas (GHG) reduction goal
compatible with the Paris Agreement, targeting reductions in City operation and community
wide emissions of 45% below 2019 levels by 2030 and achieve net zero emissions by 2050 (Pale
Blue dot LLC, 2021).
To achieve those goals, the CAP identified 200 actions in an eight-section framework, including
Section 3 on buildings and energy. The plan proposed 8 strategies in this area, with a goal of
reducing total community wide GHG emissions by 40% over 2019 levels in the Building and
Energy sector (CAP, p3-6). In addition, section BE1 articulates a goal to “improve total
community wide residential, commercial, educational, and industrial building energy efficiency
by 15% for electricity and 15% for Natural Gas by 2030”, which includes action BE 1-13 to
“establish a performance rating/labeling program for all homes listed for sale or rent so that
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owners, tenants and prospective buyers can make informed decisions about energy cost and
carbon emissions.”
2.1. Housing in Edina:
In 2020, Edina had 23,862 housing Units, with 59% of those units built between 1950- 1979,
with median year structures built in 1968 (U.S. Census Bureau, 2020). Around 70.5% of the
housing stock is owner occupied, 62% being single family (56 % single-family detached and 7%
single-family attached or duplex) and 38% multifamily units (City of Edina, 2018).
For the most part, buildings in the city are in average to good conditions. However, sales
statistics demonstrates that in the last 6 years, between 2016-2021 around 14.5% of the houses
being sold have been demolished. See table 1.
Table 1. Houses sold and demolished, City of Edina.
Year Edina # of SF home sales Edina # SF demo
permits
% demo’d
2016 545 91 17%
2017 552 88 16%
2018 479 71 15%
2019 534 64 12%
2020 513 72 14%
2021 629 66 11%
Source: Edina’s city staff (assessing division and building department).
While Edina may see a relatively high rate of homes demolished, most of the existing housing
stock is over 40 years old, thus predating decades of energy efficient technologies and policies.
3. Why Time of Sale of Housing Inspection?
Information disclosure is key when you are making decisions, especially when that decision is to
invest on an asset as significant as a house. Key information related to health, safety and energy
consumption is paramount to homebuyers because it enables more informed decisions.
Inadequate information about a home’s energy inefficiency is widely understood as a market
failure (Jaffe, Newell, & Starvis, 2004). The lack of information about energy efficiency dis-
incentivizes potential seller investments in efficiency improvements for fear of not recovering
their investments, while shielding potential buyers about home characteristics that can lead to
substantial long-term savings (Cassidy, 2019). In the absent of a public policy intervention in the
form of a time of sale requirement, the market failure of inadequate information may continue
unabated and threaten the Edina’s ability to meet goals outlined in both the Comprehensive
Plan and Climate Action Plan.
The potential benefits of time of sale disclosure and housing inspection programs are
documented and likely why municipalities across the country are adopting similar policies
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(Myers, Puller, & West, 2019). Those benefits include, but are not limited to, increased
investment in energy efficiency by homeowners, reducing homeowner energy costs, making
housing more affordable1, reducing Greenhouse gas emissions, improving the health and safety
of residents, and increasing the value of residential property.
Adoption of a time of sale housing inspection would make Edina’s policies consistent with
neighboring municipalities. Several nearby cities mandate what is known as a Truth-in Sale of
housing (TISH) inspection which is focused on the risks to life and /or health the property might
have. These ordinances required every home seller to have a pre-inspection completed by a
licensed inspector before they list their property for sale. The TISH inspections are paid by
sellers and are different than the standard inspections performed for and paid by most buyers.
Depending on the cities, the inspection may vary but most include checking hazards related to
smoke detectors, railing, plumbing, electrical, etc. Currently, cities with TISH mandates include
Bloomington, Golden Valley, Maplewood, Minneapolis, New Hope, Richfield, Robbinsdale, Saint
Louis Park, Saint Paul, South Saint Paul.
Both Minneapolis and Bloomington have expanded their TISH inspection to include energy
disclosure in 2020 and 2022, respectively. By adding the energy component, homeowners have
a road map of improvements that can improve comfort, save energy, and cut costs.
3.1. Residential Disclosure Policy Options: Asset Rating v. Operation Rating
As the Center for Energy and Environment (CEE) mentioned in its report Transforming the
Market for Energy Efficiency in Minneapolis: Recommendation for Residential Energy Efficiency
Rating and Disclosure (CEE, 2018), “there are two basic methods to benchmark the efficiency of
homes: based on a home’s actual energy bills (operation) or based on a home’s physical assets
related to its energy performance (asset rating)”.
Based on the research of CEE, our analysis and interviews done with different cities, and lastly
our interest to include the Health and Safety components, we decided to focus on the asset-
based rating, which considers the home’s physical assets. This approach evaluates the level of
insulation as well as the efficiency of furnace and a/c, providing objective information on the
energy performance of the home, and its results can be used to compare to other homes. This
approach also provides actionable information on what can be done to improve the efficiency
of the home.
As previously noted, there are several cities in the Metropolitan Area of the Twin Cities that
have Truth-in Sale housing inspections, which focus on health and safety components. Two of
them, Bloomington and Minneapolis have also included the energy disclosure component as
part of its inspection. It is important to mentioned that in these two cities, the health and safety
1 “The average homeowner spends up to $2500 per year on energy bills. Energy efficiency upgrades can reduce
homeowner’s energy costs by 20-45%, while creating comfort, safety, and quality of life benefits.” CEE, 2018.
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remarks make on the inspection need to be address by the seller before selling the house, while
the energy component is only a disclosure component, and it doesn’t have to be addressed.
There are also other programs around the country that have focus solely on the energy
component like the ones established by Portland, Oregon and Austin, Texas.
4. Case Studies: Austin, Portland, Minneapolis, and Bloomington
Over the last several years, there has been an explosion in residential energy disclosure policies
being adopted by states and municipalities. Over ten states and 30 major cities have adopted
such policies in the last decade, not to mention smaller cities and municipalities. This section
explores in more details the four programs, analyzing their pros and cons to have a baseline of
information that can help tailor the type of program that will be more beneficial to the city of
Edina. Table 2, in page 10 is a resume of the four programs being evaluated.
4.1. Austin, Texas
Austin’s Energy Conservation Audit and Disclosure (ECAD) ordinance went into effect in June
2009 and was amended in 2011 to push the disclosure timing to at least 3 days before the close
of the option period, during which the prospective buyer may legally cancel their contract to
purchase the home penalty- free.
The program is managed by Austin Energy, the community owned utility of the city (Austin
Energy, 2023). The program applies to residential properties with four of fewer dwellings that
are sold within Austin city limits, which are 10 years or older, and are serviced by Austin Energy.
The energy audit report must be disclosed at time of sale remains valid for ten years. Home
sellers are exempt if they do not meet one or more of the conditions.
All audits are conducted by certified professional technicians who have been trained by Austin
Energy and are approved contractors for the program.
Although compliance is officially mandatory for all encompassed property sales, in practice, few
resources are dedicated to enforcement and compliance is incomplete – about 60% of targeted
homes comply. Noncompliance can result in financial penalties from $500-$2000, but penalties
for non-compliance have almost never been incurred, since it is not in the mission of Austin
Energy to track or enforce compliance.
The cost of inspection is around $100-$300, depending on the size of the house.
4.2. Portland, Oregon
Portland established its Home Energy Score Policy in 2016 through the adoption of its
ordinance on Residential Energy Performance Rating and Disclosure, as a results of its 2015
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Final Draft
7
Climate Action Plan, since residential buildings contributed to nearly half of the emissions from
buildings in the city (City of Portland, 2015).
The program requires that all single-family home sellers in the city obtain and disclose a Home
Energy Report estimating the energy-related use, associate cost, and cost-effective solution to
improve the home efficiency.
The policy has been in place since 2018, and in the year between passing of the ordinance and
the start of its implementation, city staff built a network of home energy assessors trained by
Earth Advantage, a non-profit, to perform the inspections. By doing so they made sure that this
new requirement didn’t generate any disruption in the house market.
Realtors were also trained regarding the new policy, and although they complained that the
new requirement could delay the process of selling the properties, once the ordinance passed,
they embrace it and are now the ones pushing the sellers to comply with it. The report must be
included in any listing or public advertising.
The cost for the city in a yearly basis is around 200,000 USD, which includes mainly wages of the
staff running the program, fees paid to Earth Advantage to train, manage and certify the
network of assessors (30,000-40,000 USD) and the low-income homeowners inspections, that
cost around 7,000 USD.
The assessors use the National Home Energy Score (HES) tool from DOE as their scoring tool
and data gets collected according to this process. The complete process, which includes
gathering the data, uploading the score in the mapping software and disclose the information
on the webpage takes less than a week.
The energy program doesn’t apply to renters of single-family house or multifamily. However,
they do need to comply with state requirements related to health and safety like having a gas
stove or furnace, and access to cooling.
Noncompliance can result in a financial penalty of $2000, but penalties for non-compliance
have almost never been incurred, since the sending of a warning have made homeowners
comply with the ordinance.
They current compliance rate is between 50-60% and they aiming to at least 80%.
4.3. Bloomington, MN
Bloomington established its Time-of-Sale Housing (TOS) evaluation more than 25 years ago, and
include the energy component in April 2022, through an amendment of their 1995 ordinance.
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Final Draft
8
The program requires that all dwelling, including single- family, accessory, two-family, multiple-
family and manufacture homes complies with the Time-of-sale evaluation before it offered for
sale. If the house will be torn down, no inspection is required.
When the policy started and only focused on health and safety, contractors licensed by the city
were the ones in charge of the inspections. However, since the energy component was included
and due to a high number of complaints, they switch to in-house inspection. By having
oversight of the program, they have control of the inspections and can make sure they are done
more effective and efficient. For the energy disclosure component, they use a software
developed by CEE, and include both a/c and water heater.
They city staff in charge of the program includes an office coordinator and 3 inspectors, which
have been train both by CenterPoint and the Center for Energy and Environment (CEE). In a
regular basis, inspectors will do checks on sales and look for the TOS, if one wasn’t done, they
will send email notifying violation of ordinance.
The cost of the inspection is of $255, which $5 going to CEE to support training and the rest to
the city.
4.4. Minneapolis, MN
Minneapolis is one of the Twin cities that mandated the Truth in Sale (TISH) inspection, but it
was until January 2020 that energy data started to be collected as part of this inspection
(Minneapolis, 2022).
Properties like single-family houses, duplex, townhouses, and first-time condominium
conversion requires the TISH evaluation before selling them.
The inspections are done by 3rd party evaluator, who have always been doing the home
inspections in the city. With the energy components added they are now required to go
through ongoing yearly training to maintain their credentials.
One of the main challenges they faced was the opposition from the realtors, but once the
program started, they have been supportive.
The compliance of the program is one of the highest of the 4 cities studied with 70-80%. This
since they monitor MLS and force owners to take down their listing if the disclosure has not
been conducted.
The cost of the inspection is between $200-300, depending on the evaluator used and the size
of the house.
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Final Draft
9
5. Recommendations
The Vision Edina strategic framework noted that community residents and stakeholders
“believe that Edina can take an active and ambitious internal and regional leadership role in
embedding environmental stewardship principles through actions” such as “smart building and
energy efficiency practices.” The Comprehensive Plan and the Climate Action Plan built on this
commitment to residents and stakeholders by committing to policies that improve the
affordability of housing in Edina by reducing the costs of energy and reduce Greenhouse gas
emissions by improving energy efficiency practices.
The cities studied showed that certified energy efficiency residential audits capitalized energy
efficiency and leads to residential investment in energy saving technologies. These programs
also show that energy improvements can be linked to existing rebate programs. In the case of
Minneapolis, 33% of all the rebated energy improvements completed in 2021 were done by
residence that had received an energy disclosure report (CEE, 2023).
Adoption of a time of sale initiative is a logical first step into fulfilling the vision of both the CP
and the CAP.
If a time of sale initiative is to be adopted by the City of Edina, the Energy and Environment
Commission recommends that:
● Health, Safety, and Energy: The Time of Sale Initiative developed by the city needs to
include both health & safety and energy components.
● Housing Types: Should include all single-family homes, duplex, and townhouses being
sold in the city.
● Inspections: Both inspections schemes, in-house or third party, could work for the city.
The decision will depend on human resources cost, that eventually could be cover by
part of the fee pay for the inspections.
● Criteria: Considering the median year of houses built in the city is 1968, and that this
initiative will only focus on houses being sold it should be complemented with the Home
Energy Squad Initiative, to help the city achieve their climate action goals.
● Financing: the energy efficiency improvements resulted of the inspections could be
linked to Edina’s Community Climate Action Fund that seeks to help residence complete
high-impact energy efficiency projects (City of Edina, 2023), or to other rebates
programs available through utilities or at the state level.
● Enforcement: Several of the cities reviewed do have enforcement policies, but in
practice there is little to no enforcement of the policy. Nevertheless, compliance is
relatively high, and seemingly getting higher as the programs are in place longer.
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Final Draft
10
Table 2. Residence disclosure policies studied.
Jurisdiction Name Enacted/
Effective
Component
s
Type of
homes
Trigger
Inspection Cost for the
city (yearly)
Cost
for
seller Sale Rent
Austin, TX Energy
Conservation
Audit &
Disclosure
(ECAD)
2009/
2011
Energy Properties with
four or fewer
dwellings
X 3rd party
inspection
NA $100-
300
Bloomington,
MN
Time-of-Sale
(TOS)
1995/
2022*
Health &
Safety,
Energy
Single- family,
accessory, two-
family, multiple-
family and
manufacture
homes
X In house
inspection
$435,000**
*
$250
Minneapolis,
MN
Truth in Sale
(TiSH)
1995/
2020**
Health &
Safety,
Energy
single-family
homes, duplex,
townhouses,
and first-time
condominium
X X 3rd party
inspection
NA $255
Portland, OR Home Energy
Score
2016/
2018
Energy Single-family
homes
X 3rd party
inspection
$200,000++ $200-
300
* In 2022 the included the energy component
** In 2020 they include the energy component
*** This is an estimate and includes 3.5 full- time inspectors, support from their sustainability coordinator and a fee paid to CEE per house inspected.
++ Include wage of staff running the program, payment to Earth Advantage and the inspections for low-income homeowners.
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11
6. Bibliography
Austin Energy. (2023, 12 01). ECAD Ordinance. Retrieved from Austin Energy:
https://austinenergy.com/energy-efficiency/ecad-ordinance/ecad-for-residential-
customers
Cassidy, A. (2019, July 13). How Does Mandatory Energy Efficency Disclosure Affect Housing
Prices? . Retrieved from SSRN: https://ssrn.com/abstract=3047417
CEE. (2023, 03). Time of Sale Energy Disclosure. Minneapolis, MN, USA.
CEE. (2018). Transforming the Market for Energy Efficiency in Minneapolis: Recommendations
for Residential Energy Efficiency Rating and Disclosure. Minneapolis: CEE.
City of Edina. (2018). 2040 Comprehensive Plan. Edina: City of Edina.
City of Edina. (2023). Community Climate Action Fund. Retrieved from
https://www.edinamn.gov/1929/Community-Climate-Action-Fund
City of Portland. (2015, 06). City of Portland. Retrieved from Climate Action Plan:
https://www.portland.gov/bps/climate-action/documents/2015-climate-action-
plan/download
Jaffe, A. B., Newell, R. G., & Starvis, R. N. (2004). Economics of Energy Efficiency. Encyclopedia
of Energy, 79-90.
Minneapolis. (2022, 02 25). City of Minnepaolis. Retrieved from Energy disclosure report:
https://www.minneapolismn.gov/resident-services/property-housing/buying-
selling/tish/energy-disclosure-report/.
Minnesota Legislature. (2022). Office of the Revisor of Satutes. Retrieved from
https://www.revisor.mn.gov/statutes/cite/326B.121.
Minnesota Legislature. (2022). Office of the Revisor of Statues. Retrieved from
https://www.revisor.mn.gov/statutes/cite/412.221
Myers, E., Puller, S., & West, a. J. (2019, October). Effects of Mandatory Energy Efficiency
Disclosure in Hosuing Markets. Retrieved from University of Chicago:
https://e2e.uchicago.edu/pdf/workingpapers/WP044.pdf
Pale Blue dot LLC. (2021). Climate Action Plan. Edina: City of Edina.
U.S. Census Bureau. (2020). United States Census Bureau. Retrieved from
https://data.census.gov/profile/Edina_city,_Minnesota?g=160XX00US2718188#housing
Page 25 of 32
BOARD & COMMISSION
ITEM REPORT
Date: November 14, 2024 Item Activity: Discussion
Meeting: Energy & Environment Commission
Agenda Number: 7.2
Prepared By: Marisa Bayer, Sustainability Manager
Item Type: Report & Recommendation Department: Engineering
Item Title: Tree Recognition Campaign
Action Requested:
Review Tree Recognition Campaign awards.
Information/Background:
Twenty-three nominations were received for the Tree Recognition Campaign. Work plan leads
Haugen and Martinez-Salgado reviewed the nominations and selected categories for recognition. The
EEC is being asked to review ahead of formal recognition at the November 19 City Council meeting.
Supporting Documentation:
1. 2024 Tree Recognition Campaign Awards
Page 26 of 32
2024 Tree Recognition Campaign Awardees
Award Tree Species Location
Best Bur Oak Bur Oak 4916 Arden Ave
Best White Oak White Oak 5412 York Ave
Best Coniferous Tree White Pine 5724 Code Avenue
Best City Tree Cottonwood Weber Park
Best Tree Story Crab Apple York Park
Biodiversity Award Ginkgo Arneson Acres Park
Fall Colors Award Maple 6608 Gleason Terrace
Climbing Tree Award Silver Maple Kojetin Park
Fullest Canopy Award Silver Maple 4917 Arden Avenue
Honorable Mention - Mature Tree Oak 4505 Oxford Ave
Honorable Mention - Mature Tree Bur Oak 5400 Park Place
Honorable Mention - Mature Tree Bur Oak 4609 Bruce Ave
Honorable Mention - Mature Tree But Oak 6126 Loch Moor Dr
Honorable Mention - Mature Tree Bur Oak W 70th and Cahil
Honorable Mention - Mature Tree White oak 4509 Oxford Ave
Honorable Mention - Mature Tree Oak 4716 Townes Rd
Honorable Mention - Mature Tree Sugar Maple 4509 Oxford Ave.
Honorable Mention - Mature Tree Unknown 6100 Kellogg Ave
Honorable Mention - Young Tree Swamp White Oak Weber Park
Honorable Mention - Young Tree Green Ash Edina Promenade
Honorable Mention - Young Tree Dawn Redwood Arneson Acres Park
Honorable Mention - Young Tree American Pawpaw 5717 Deville Dr
Honorable Mention - Young Tree Freeman Maple 5410 York Ave
Page 27 of 32
BOARD & COMMISSION
ITEM REPORT
Date: November 14, 2024 Item Activity: Discussion
Meeting: Energy & Environment Commission
Agenda Number: 7.3
Prepared By: Marisa Bayer, Sustainability Manager
Item Type: Report & Recommendation Department: Engineering
Item Title: Parking Project Advisory Communication
Action Requested:
Comment on draft Parking Project Advisory Communication.
Information/Background:
The Planning Commission's 2024 work plan included a project to consider the future of parking in
Edina and identify parking initiatives. EEC is being asked to "review and comment" on the Advisory
Communication as part of their 2024 work plan. EEC work plan leads Schima and Weber will collect
comments to submit to the Planning Commission work plan leads.
Supporting Documentation:
1. Draft Parking Project Advisory Communication
Page 28 of 32
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Date:
To:Mayor & City Council
From:Planning Commission
Subject:2024 Work Plan Initiative #4 - Parking
X
X
Approved Work
Plan Item:
Yes
No
Council Charge:
1: Study & Report
2: Review & Comment
3: Review & Recommend
4: Review & Decide
Action Requested:
The Planning Commission is asking the Council to review the results of its 2024 Parking inquiry, and
recommend that the commissions identified in the project roadmap include this work in their development
of future work plans.
Situation:
It has been widely reported that the United States has over 1 billion parking spaces and more square
footage of space dedicated to parking each car than to housing each person. Many cities have begun to
recognize parking as a constraint to the realization of vital transportation and land use objectives; crowding
out active transportation facilities and green space, and increasing the cost of development.
Background:
Edina’s vision for the future is documented in various approved planning documents. A review of the
Comprehensive Plan, the Climate Action Plan, and the Living Streets Plan reveals specific goals for reducing
Vehicle Miles Travelled (VMT), establishment of bike/ped facilities, supporting transit, enhancing green
space, and increasing affordable housing. Given our car-based development history and current land use
profile, Edina needs parking facilities to function. Given our transportation, climate, and land use goals,
however, the amount of space dedicated to parking needs to be carefully considered and balanced against
other priorities.
In 2021 the Council approved a new offstreet parking ordinance, updating code established in the 1970s.
Although the 2021 update was a meaningful step forward, it seems likely that further refinements may be
available that could help realize Edina’s vision for the future. And since offstreet parking is part of a parking
“ecosystem”—offstreet parking influences onstreet parking, and vice versa—it is appropriate to evaluate
parking interdependencies.
Page 29 of 32
City of Edina • 4801 W. 50th St. • Edina, MN 55424
In 2024 the Planning Commission, in collaboration with ETC and EEC, was asked to lead an evaluation of
the “future of parking in Edina to identify parking initiatives to pursue in the next 10- 15 years, in what
order, and what commissions/resources should be assigned to each.”
Assessment:
Our review of Edina vision documents revealed nine themes that are influenced by the parking ecosystem in
our city:
1. Reduce greenhouse gas emissions
2. Reduce VMT
3. Accelerate development of bike/ped facilities
4. Increase EV adoption
5. Increase tree planting
6. Reduce impermeable surfaces
7. Increase density
8. Increase transit ridership
9. Support affordable housing, especially near transit
Related to these themes, we have identified four parking-related projects that could help Edina realize its
vision:
1. Audit parking inventory
a. By commercial node
b. Identify offstreet and onstreet capacity and usage
c. Quantify surplus or shortage
d. Include bike/e-bike parking
e. Recommend policy options to increase efficient land use
2. Update offstreet parking ordinance
a. Informed by inventory
b. Strategically reduce or eliminate offstreet parking minimums (could be overlay)
c. Evaluate opportunities to reduce commercial minimums given environmental
changes (especially Office)
d. Evaluate affordable housing incentives
e. Update incentives near transit (scale of incentives, definition of “near”)
f. Evaluate incentives and trade-offs for active transportation facilities, green space
g. Evaluate regulation and incentives for shared parking by adjacent properties (public-
private or private-private)
h. Evaluate opportunities to reduce minimums where there is available public parking
nearby (could be dynamic regulation)
i. Update EV parking standards (state guidance on Commercial/MF expected in 2026)
j. Update bike/e-bike parking standards
k. Update surface parking standards (position on lot, shielding, pedestrian flow,
landscaping)
Page 30 of 32
City of Edina • 4801 W. 50th St. • Edina, MN 55424
3. Create onstreet parking plan with specific, measurable goals
a. Informed by inventory
b. Replace onstreet parking with bike/ped facilities, street trees/green spaces, transit
access, and other productive uses (especially where district parking is available like
50/France)
c. Evaluate one-side no parking on select streets in R zones to create bike facilities
d. Evaluate strategic use of one-way traffic to create space for bike facilities and
preserve parking
e. Evaluate drop-off zones for rideshare
f. Establish bike/e-bike parking standards in commercial nodes
g. Evaluate new parking pricing models, including Parking Benefit Districts (manage
demand, create revenue for bike/ped facilities, reduce emissions)
4. Create district parking plan
a. Informed by inventory
b. By commercial node
c. Enable reduction of onstreet capacity; create more space for bike/ped facilities
d. Avoid development of new offstreet capacity
Recommendations:
Year Project Commission(s)
2026 Audit parking inventory Planning, Transportation
2027 Create district parking plan Planning
2028 Update offstreet parking ordinance Planning
2028 Create onstreet parking plan Transportation, Energy & Environment
Implementation
2033 Audit parking inventory Planning, Transportation
2034 Update offstreet parking ordinance Planning
2034 Update onstreet parking plan Transportation, Energy & Environment
Implementation
Page 31 of 32
BOARD & COMMISSION
ITEM REPORT
Date: November 14, 2024 Item Activity: Discussion
Meeting: Energy & Environment Commission
Agenda Number: 7.4
Prepared By: Marisa Bayer, Sustainability Manager
Item Type: Report & Recommendation Department: Engineering
Item Title: Paved Area / Community Gardens Work Plan Item
Action Requested:
Discuss Paved Area / Community Garden work plan item.
Information/Background:
Work plan leads Weber and Martinez-Salgado will provide an update to the Paved Area / Community
Garden work plan item.
Supporting Documentation:
None
Page 32 of 32