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HomeMy WebLinkAbout2024-02-08 EEC Meeting PacketAgenda Energy and Environment Commission City Of Edina, Minnesota City Hall - Community Room Meeting will take place in person. Masks are optional. Thursday, February 8, 2024 7:00 PM I.Call To Order II.Roll Call III.Approval Of Meeting Agenda IV.Approval Of Meeting Minutes A.Minutes: Energy and Environment Commission January 11, 2024 V.Community Comment During "Community Comment," the Board/Commission will invite residents to share relevant issues or concerns. 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. Generally speaking, items that are elsewhere on tonight's agenda may not be addressed during Community Comment. 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 sta% for consideration at a future meeting. VI.Reports/Recommendations A.HRRC CAP HS:4-3 Report Presentation B.Review Sta- Report on Commercial Tree Protection Ordinance C.Approve Time of Sale Energy Disclosure Program Report VII.Chair And Member Comments VIII.Sta- Comments A.Discuss Green Business Recognition Program / Sta- Tasks B.Tree Recognition Campaign C.Sustainability Manager Hire Update IX.Adjournment 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 ampli6cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: February 8, 2024 Agenda Item #: IV.A. To:Energy and Environment Commission Item Type: Minutes From:Chad A. Millner, P.E., Director of Engineering Item Activity: Subject:Minutes: Energy and Environment Commission January 11, 2024 Action CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve EEC meeting minutes, January 11, 2024. INTRODUCTION: ATTACHMENTS: Description Minutes: Energy and Environment Commission January 11, 2024 Agenda Energy and Environment Commission City Of Edina, Minnesota City Hall - Community Room Meeting will take place in person. Masks are optional. Thursday, January 11, 2024 7:00 PM I.Call To Order Chair Martinez called the meeting to order at 7:01pm. II.Roll Call Answering roll call were Chair Martinez, Vice Chair Lukens, Commisioners Haugen, Weber, Tessman, Schima, and Student Commissioners Pugh and Langsweirdt. Absent: Commissioner Lanzas Late: Commissioner Dakane III.Approval Of Meeting Agenda Motion by Cory Lukens to Motion. Seconded by Tom Tessman. Motion Carried. IV.Approval Of Meeting Minutes Approved with following change, change “Heritage Tree …” to “Tree Recognition Campaign”. Motion by John Haugen to Motion. Seconded by Cory Lukens. Motion Carried. A.Minutes: Energy and Environment Commission December 14, 2023 V.Community Comment No community comment was received. During "Community Comment," the Board/Commission will invite residents to share relevant issues or concerns. 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. Generally speaking, items that are elsewhere on tonight's agenda may not be addressed during Community Comment. 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. VI.Reports/Recommendations A.Draft Time of Sale Energy Disclosure Program Report Chair Martinez presented ideas for the draft report on Time of Sale Energy Disclosure. Dakane entered the meeting at 7:17 pm. VII.Chair And Member Comments Green Business Outreach Program - Liaison Millner shared marketing flyers. Lukens asked how much staff is going to manage this program. Millner to research and report back. Millner to send electronic flyers to Lukens Climate Action Plan (CAP) year in review – group discussed CAP action requiring City Manager to present the yearly CAP update to EEC. Millner to discuss with City Manager. VIII.Staff Comments 1. 2024 Workplan. City Manager allowed addition of Tree Recognition Campaign back into 2024 workplan from 2023. 2. Liaison Millner provided a hiring update on the Sustainability Manager. 3 Finalist interviews next week. 3. GBOP Flyers – Discussed earlier 4. 2024 Workplan Plan item #2 Study Paved areas conversion opportunity to green space or community garden. PARC wanted to know who the lead is. Group decided it is Member Weber. A.Approved 2024 Work Plan IX.Adjournment The EEC meeting adjourned at 8:25 PM. Motion by John Haugen to Motion. Seconded by Stephen Schima. Motion Carried. T he 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 72 hours in advance of the meeting. Date: February 8, 2024 Agenda Item #: VI.A. To:Energy and Environment Commission Item Type: Report and Recommendation From:Chad A. Millner, P.E., Director of Engineering Item Activity: Subject:HRRC CAP HS:4-3 Report Presentation Action CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Review and comment on the HRRC Report. INTRODUCTION: CAP HS: 4-3: Evaluate community organizations, networks, and connections serving those who require special attention, such as people who are elderly, homebound, isolated, living with disabilities, or those likely to be in need of financial assistance, during or after extreme weather events (e.g., heat, cold, and heavy precipitation). ATTACHMENTS: Description HRRC CAP HS:4-3 Report Presentation HRRC Report to EEC HRRC Approval: 1/23/2024 1 | Page EDINA HUMAN RIGHTS AND RELATIONS COMMISSION (HRRC) REPORT TO THE EDINA ENERGY AND ENVIRONMENT COMMISSION 2023 HRRC WORKPLAN INITIATIVE #5 HRRC Report to EEC HRRC Approval: 1/23/2024 2 | Page Human Rights and Relations Commission Report to the Energy and Environment Commission – 2/8/2024 Introduction The City of Edina Energy and Environment Commission (EEC) requested that the City of Edina Human Rights and Relations Commission (HRRC) “evaluate community organizations, networks, and connections serving those who require special attention, such as people who are elderly, homebound, isolated, living with disabilities, or those likely to be in need of financial assistance, during or after extreme weather events (e.g., heat, cold, and heavy precipitation). EEC will review and comment on the approved report.” To complete its analysis and report, the HRRC identified and evaluated how the vulnerable populations specified in the 2021 “Edina Climate Vulnerability Assessment” created to support Edina’s Climate Action Plan are being served by the city. This report provides the HRRC’s assessment and proposed next steps for the EEC’s consideration and action. Executive Summary of HRRC Work and Findings The HRRC assessment reveals that although local groups are working to support vulnerable populations that climate change impacts, substantial gaps exist. This report suggests actions the city could take to mitigate the effects of climate change on these vulnerable populations including, but not limited to: supporting access to affordable, supportive housing; amplifying the messages of non-profit organizations serving vulnerable populations; enhancing community local support to mobilize neighbors; and developing partnerships between local and national non-profits. To complete our assessment, the HRRC working committee completed the work summarized below. First, we identified organizations and connections in Edina relevant for serving the specified vulnerable populations. Second, we created a survey instrument for those groups to complete. Third, we contacted the specified groups and received responses from nine of the 15 we contacted. For those groups we did not hear from directly, we were able to gain insight from public information, Finally, we analyzed the responses and share that information in this report. HRRC Report to EEC HRRC Approval: 1/23/2024 3 | Page In summary, we identified four key gaps – lack of affordable housing, economic challenges triggering the lack of ability to pay for utilities and warm clothing, isolation, and lack of awareness of the nonprofits working to help. We suggest the following actions to address those gaps: create additional access to affordable and supportive housing; provide additional support for the nonprofit organizations working to support the vulnerable people; catalyze local initiatives to provide “hands-on” acts of kindness; develop new financial models to support keeping seniors in their own homes; and activate new partnerships such as with Mercy Closet. Summary of Our Research Who did we interview? Of the 15 organizations we contacted, most of whom are integrally tied to either the at- risk senior or youth populations in the community, nine organizations responded directly to us, either through our survey or by phone interview. Furthermore, the City of Edina works directly with several organizations that were among the 15 we targeted. These organizations receive funding from Edina’s Human Services Task Force (HSTF). Therefore, to collect as much information as possible, and to better understand general facts about Edina’s vulnerable populations, a fair amount of relevant information was brought to our attention vis a vis published web site data, annual reports and other public domain information and printed material. Through these efforts, we were able to formulate general answers about climate vulnerability for this report. Following are the organizations that we contacted to gather, interpret, and report information for this climate vulnerability report. The first nine organizations answered our survey or spoke to us in one-on-one interviews: Edina Resource Center- Survey Edina Senior Center - Survey Community Action Partnership of Hennepin County - Survey VEAP - Survey; public domain information Help at Your Door - One-on-one Interview Normandale Center for Healing and Wholeness- Survey; public domain information Senior Community Services - One-on-one interview Mosque- Al Amaan center - One-on-one interview Beacon Interfaith - One-on-one interview The following are the organizations to which we sent the survey but did not receive a direct reply. Of these organizations, Oasis for Youth, Cornerstone Advocacy Services, HRRC Report to EEC HRRC Approval: 1/23/2024 4 | Page Edina Police Department and Edina Libraries indirectly provided information for this report via published material and public domain information: Oasis for Youth - Website; published information Cornerstone Advocacy Services - Website; published information Edina Libraries Edina Bloomington Public Health Bridge for Youth Edina Police Department Other resources we sited for this report are: Senior Linkage Line Senior Blue Book (.com) What questions did we ask? We asked six questions of our respondents (which included the footnote to further define vulnerable populations) in a Google Survey including a question for their consent to participate in the survey. The five remaining questions are as follows: I. Does the group support vulnerable populations under stress due to climate change- heat or cold or storms? II. If yes, how is that support and/or assistance provided? What is provided? III. If no, why is that support not offered? IV. What are gaps you see in serving under-resourced* populations? V. What ideas do you and your organization have for filling those gaps? *By definition, and as stated in the Climate Action Plan, community members who are most vulnerable include: People of Color, At-Risk Workers, Food Insecure Individuals, Individuals Without Vehicle Access, Children Under 5, Elders 65 +, Individuals with Disabilities, and Individuals in Economic Distress. The HRRC report is particularly concerned with economically distressed individuals among senior citizens and families with young children, as these are the groups most frequently identified in Edina. What did we learn? All the respondents, as well as organizations we researched, stated that they support in some way vulnerable populations, and offer assistance in climate-related events. While some organizations are more directly involved in supporting individuals who are put at risk during climate events, some of the organizations indirectly support that call either by HRRC Report to EEC HRRC Approval: 1/23/2024 5 | Page virtue of the mission, or because it is a natural follow-on to the existing and active work they do. None of the organizations indicated that they do not or would not provide assistance to vulnerable populations in weather events, or in general. How do the groups provide support and what is provided? Respondents to the survey, and those to whom we spoke directly, described the kinds of services they provide in the context of how to assist people in need, specifically, in the face of climate-related events. For the most part, the services provided do not veer too far from what the organizations do on a regular basis. However, for a few of the organizations, such as Cornerstone and Oasis for Youth, their central missions are dedicated to the idea of providing legal assistance or jobs, respectively. Thus, their services, while providing much-needed assistance to vulnerable populations, do not function directly as a response to a natural disaster or climate-related event. Meanwhile, we observed that there was a synergy among many of the organizations in terms of directly and indirectly providing support in the face of a climate event. We learned among those organizations we spoke with that some are in the position of referring individuals in need to those organizations that are equipped to provide hands- on, tangible assistance with a range of needs from financial support and at-home assistance to food pantries and sheltering. The Edina Resource Center, Edina Senior Center and Mosque Al-Amaan Center, for example, stated that they are able to support families and seniors in need by matching them with organizations and resources to assist them. In doing so, they refer those individuals to organizations like Beacon Interfaith, VEAP, Senior Community Services (SCS), Help at Your Door and Community Action Partnership of Hennepin County (CAP-HC). Beacon Interfaith, which works closely with Oasis for Youth, said that a portion of their supportive housing programs are there to serve populations experiencing homelessness directly, particularly in crises around seasonal, climate-related events. Likewise, organizations like VEAP, SCS and Help at Your Door provide mobilized volunteer support and caregiver education to assist people—and families- in need and are particularly aware of needs during weather events. In terms of financial assistance and case management, VEAP provides support and financial assistance in addition to volunteer-driven food support, and CAP-HC directly assists lower income households with assistance to pay electricity, heat, and water bills, and provides emergency repair or replacement of broken heating systems. What is HRRC Report to EEC HRRC Approval: 1/23/2024 6 | Page more, organizations like VEAP and Help at Your Door are particularly effective through their hands-on assistance during climate events, such as offering mobile food pantries, snow removal services or emergency needs, such as tree removal. Other organizations, including the Edina Libraries, simply provide a place to be when it is hot or cold outside. The Edina Police Department has worked to help the unhoused find resources and has identified a growing number of unhoused elderly women in our community. What are the gaps? In terms of gaps, respondents across the board said that lack of affordable housing was the most significant issue faced by vulnerable populations. Some of the respondents deal directly with homelessness and stated that they are continually seeking ways to provide shelter and dignified housing to people who experience unsheltered homelessness directly. Furthermore, they noted that in keeping with the idea of safe sheltering, there is also a lack of emergency shelter resources. Respondents described new concepts of sheltering that are being tested and executed in Minneapolis and in Hopkins, for example, that provide private and safe spaces for homeless families and individuals, but, according to respondents, the homeless population continues to grow, in part, because there is not enough affordable and supportive housing. Within this are other significant challenges such as mental illness and even culturally specific barriers in terms of certain patterns of living that groups require. For many of these people providing even an “on-ramp into housing” is an important need. For those in their homes, there persists a range of economic challenges, among them lack of the ability to pay energy bills and to purchase warm clothing; lack of childcare; lack of transportation; and, in general, a lack of financial resources for energy assistance and utility bills. In keeping with this, the affordable housing challenge also looms largely—and is a growing problem — for seniors who struggle to stay in their homes, where, in theory, they are protected from suffering during a climate event. Nonetheless, they are not only faced with the financial strain of trying to remain in their homes, but also, they face day-to-day matters that are equally challenging for them, such as paying for and shopping for food, maintaining utilities, medical access, and ensuring that they are safe. For seniors threatened by home insecurity, there is, moreover, the emotional and psychological matter of isolation and becoming less connected to the community, to HRRC Report to EEC HRRC Approval: 1/23/2024 7 | Page friends, even to a single person, which is something several of the respondents address as part of their mission. Whether it is cultivating bonds and connections with seniors or assisting them with shopping, doctors’ appointments and, in severe winter weather, snow removal, respondents said that it is important to help build social networks for seniors living alone, and that this community outreach effort is the most plausible at the “neighborhood-based” level. Simply put, according to respondents, there is a growing community of seniors that need assistance and require human contact and support. The point was made time and again that it is less expensive to keep someone in his/her house than relocating a family, or, in this case, relocating seniors to new housing. Even affordable housing, according to the respondents, is too expensive for most seniors not to mention the emotional and physical challenge of moving and uprooting someone from his/her longtime home. Finally, organizations themselves said that they see a need for better exposure and awareness of their mission and their services. Add to that the fact that many of these organizations are faced with a shortage of workers and are struggling in a competitive market to attract good staff, be they social workers, program directors, case managers or day-to-day employees. All these challenges, if managed and overcome, would allow existing organizations to be better equipped to protect and support at-risk populations during weather-related events and crises, as well as on a regular basis. Suggested Next Steps/Insights/Conclusion Whether it is due to a climate-related event or not, the persistent challenges in caring for populations at risk are by and large the same ones that have existed for some time. All the respondents, being well-aware of the day-to-day challenges facing vulnerable populations, said that access to affordable and supportive housing is the most significant problem when it comes to serving under-resourced populations. Creating new models for affordable housing for families and for seniors, an ongoing mandate at every level of government, remains a priority. Because at-risk populations and the threat of homelessness continue to rise, non-profit organizations that support vulnerable groups must work harder than ever to remain viable. In addition to private financial support, local, state and federal governments must incorporate into their budget planning more support aimed at those organizations that are wholly dedicated to helping youth, families and seniors in need. In doing so, these organizations are not only able to hire and retain a diverse, professional workforce and expand operations, but also, they are able to communicate their message, mission, and HRRC Report to EEC HRRC Approval: 1/23/2024 8 | Page resources to the thousands of people in need who are unaware of services available to them. Respondents described their work and first-hand experience with vulnerable populations as a phenomenon, ultimately, that happens at the local level. One remedy for addressing the distress associated with weather events and climate challenges is to enhance community involvement and support, quite literally, from neighbors. The “localization” of issues confronting at-risk people is in part an educational campaign, while also a hands-on campaign to invite people of all ages to proactively immerse themselves in programs and in understanding the weight of “simple acts of kindness” that can help change outcomes for those near them who are suffering, and at-risk. In keeping with the idea of safe and affordable housing, respondents encouraged “out of the box” ideas associated with allowing seniors to stay in the homes they own rather than live with the potential threat of being unable to keep up with mortgage payments. In addition to conceiving of the new ideas to create affordable housing, respondents suggested helping families, and seniors especially, navigate existing property entitlements and benefits. Moreover, advocating for new methods —a type of finance reform — in support of keeping people in their homes was not out of the question. This would be, for example, looking at the creation of some kind of mortgage deferment or forbearance that is a viable program at the local, state or federal level. If possible, the reformed financial protection could be the product of a robust public/private partnership that is another option beyond the reverse mortgage, and one that guarantees stability for a long-time homeowner in his/her last years of life. Partnerships are also a key concept going forward. One idea involves partnerships between local and national non-profits whose combined resources could be used to support multiple missions at the local and national level, such as, for example, a partnership with Mercy Closet that could generate funding and awareness through high- profile donation drives or fundraising campaigns. Other ideas involve strategic public/private partnerships that directly benefit non-profit missions across the board, from hunger and financial assistance to mental health and homelessness, so that non- profit organizations that work on behalf of vulnerable populations are in a position of enhancing and improving existing programs and able to reach a wider audience of people in need while effectively raising awareness on a national scale. In doing so, these new solutions provide the flexibility and capability of always caring for at-risk populations, in the face of climate change and weather events as well as on a daily basis. Date: February 8, 2024 Agenda Item #: VI.B. To:Energy and Environment Commission Item Type: Report and Recommendation From:Chad A. Millner, P.E., Director of Engineering Item Activity: Subject:Review Staff Report on Commercial Tree Protection Ordinance Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Review Staff Report on Commercial Tree Protection Ordinance INTRODUCTION: Review Staff Report on Commercial Tree Protection Ordinance and determine next steps with EEC. ATTACHMENTS: Description Staff Report on Commercial Tree Protection Ordinance January 26, 2024 Mayor and City Council Luther Overholt, City Forester; Laura Beres, Assistant City Forester; Addison Lewis, Community Development Coordinator; Cary Teague, Community Development Director; Chad Millner, Director of Engineering Commercial Tree Ordinance Information / Background: The Energy and Environment Commission’s (EEC) 2023 work plan included the directive to “assess Edina’s Commercial Tree Ordinance by comparing to similar ordinances adopted in relevant cities; determine if changes should be made.” The Council charge was a Charge 3 (Review and Recommend). Attached is the EEC’s Advisory Communication, in which the EEC recommends that Council “direct staff to draft a Commercial Tree Protection ordinance aligned with the revised Residential tree protection ordinance implemented in 2022.” City Code Assessment The term “residential tree protection ordinance" refers to City Code Section 10-82, which was adopted by Council in 2022 following the recommendation of the EEC and is applied to single- and two-family homes only. Edina’s “commercial tree ordinance” refers to Section 36-1438, which applies to all other properties besides single- and two-family homes, with exceptions for public parks and golf courses. The impetus for Section 10-82 was the high volume of residential redevelopments, which often resulted in removal of many mature trees with minimal replacement. With the adoption of Section 10-82, the City now has much stronger protections and replacement requirements for existing trees on single- and two-family properties. Unlike for commercial properties, there is not a requirement for a minimum number of trees for single- and two-family home properties. The goal of Section 10-82 is to preserve existing trees, whereas the goal of Section 36-1438 is to ensure a minimum number of trees per property. STAFF REPORT Page 2 Although Section 36-1438 does not have the same protections for existing trees, commercial properties are required to have one overstory tree for every 40 feet of perimeter of the property. Any preserved trees are credited towards this requirement. Since many commercial properties do not have a high number of mature trees relative to their size, it is staff’s observation that redevelopment usually results in an improvement with respect to trees when applying the requirements of 36-1438. Additionally, staff do not receive as many complaints about tree loss on commercial property as was the case for residential redevelopments prior to the adoption of Section 10-82. This is likely because prior to Section 10-82, most residential redevelopments had very few trees replaced, whereas commercial redevelopment under Section 36-1438 often results in more trees being planted than existed before. Therefore, it is staff’s opinion that Section 36-1438 generally works well for commercial redevelopment projects. It should be noted that there are inconsistencies between the two codes sections. These can be corrected with some minor updates. Below is a table comparing the two sections: Sec. 10-82 Sec. 36-1438 Applicability Single- and two-family homes All properties except for single dwelling unit or double dwelling unit lots, public parks, playgrounds and athletic facilities, and public and private golf courses, except that clubhouses, parking areas and other structures accessory to the golf courses shall comply. Requires a minimum number of trees per property No Yes, not less than the perimeter of the lot or tract as measured in feet divided by 40. Requires preservation of existing trees or replacement Yes No, but existing trees are counted towards the minimum number required if they are preserved. Financial guarantee Yes, 110% of the estimated value, held for 36 months. Review by certified arborist required for release of escrow. Yes, 150-200% of the estimated value, held for two growing seasons, unless the property has an irrigation system in which case only one growing season. Tree protection fencing required for preserved trees Yes No STAFF REPORT Page 3 Acceptable trees Hennepin County's recommended tree list American Nurseryman's Association Tree size requirements Varies by lot size Varies by height of building Measurement of deciduous trees Diameter measured at four and six- tenths feet. Diameter measured at six inches above the ground EEC Recommendations / Staff Response EEC Recommendation Staff Response 1) Adding existing trees to “protected” and “heritage” status at the same size & height requirements as in Sec. 10-82. Agreed as noted below. 2) Requirement that a commercial project replace what it removes according to the schedules in Sec. 10-82. Agreed as noted below. 3) Fees in lieu of replacement according to the fee schedule in Sec. 10-82. Agreed as noted below. 4) Removal of the “credit for existing trees” Sec. 36-1438 (the current landscaping requirements for Commercial projects). This would be redundant with the proposed additions. Disagree. Staff feels it is not redundant and goes towards the 1 tree for every 40-ft of property perimeter. 5) EEC also recommends that the ordinance reflects additions along the following areas: a. Xeriscaping – encourage the planting of species that are drought resistant. b. Climate-adaptive – encourage the planting of species that are likely to thrive as our climate changes, as defined by the University of Minnesota Extension. Noted but not a specific change to City Code. STAFF REPORT Page 4 Staff believes the EEC’s recommendations could be incorporated and would likely not be a significant burden to most commercial property owners. In cases where many mature trees require removal to accommodate redevelopment, the proposed changes could be a significant burden and ultimately decided by the City Council. Currently the planning department manages requirements related to Sec. 36-1438. This code requires an existing tree inventory, a tree and landscaping plan, and an escrow. If the council directs staff to update the code to include protection and installation requirements like the residential tree ordinance, the planning department would continue to manage it. Below is a table comparing the two code sections with suggested changes: Sec. 10-82 Sec. 36-1438 Applicability Single- and two-family homes All properties except for single dwelling unit or double dwelling unit lots, public parks, playgrounds and athletic facilities, and public and private golf courses, except that clubhouses, parking areas and other structures accessory to the golf courses shall comply. Requires a minimum number of trees per property No Yes, not less than the perimeter of the lot or tract as measured in feet divided by 40. Requires preservation of existing trees or replacement Yes No, Yes but existing trees are counted towards the minimum number required if they are preserved. Financial guarantee Yes, 110% of the estimated value, held for 36 months. Review by certified arborist required for release of escrow. Yes, 150-200% of the estimated value, held for two growing seasons, unless the property has an irrigation system in which case only one growing season. Tree protection fencing required for preserved trees Yes No Yes Acceptable trees Hennepin County's recommended tree or approved by City Forester American Nurseryman's Association Hennepin County’s recommended tree list or approved by City Forester STAFF REPORT Page 5 Tree size requirements Varies by lot size Varies by species by building height Measurement of deciduous trees Diameter measured at four and six- tenths feet. Diameter measured at six inches above the ground Diameter measured at four and six-tenths feet. Recommendation Staff recommends the following. 1. Amend Section 10-82 to clarify what types of properties and projects it applies to. Section 10-82 was intended to apply to residential (single- and two-family home) projects only but the ordinance does not state this. Correction of this issue is strongly recommended by the City Attorney. 2. Amend Section 10-82 and 36-1438 as needed to address minor inconsistencies between the two sections. This will improve ease of use for staff and result in more consistent outcomes. 3. Amend Section 36-1438 to apply tree protection requirements to commercial redevelopment projects. As mentioned, it is the staff’s opinion that Section 36-1438 generally works well for commercial redevelopment projects; however, the recommendations could also be easily incorporated. Date: February 8, 2024 Agenda Item #: VI.C. To:Energy and Environment Commission Item Type: Report and Recommendation From:Chad A. Millner, P.E., Director of Engineering Item Activity: Subject:Approve Time of Sale Energy Disclosure Program Report Action CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Approve Time of Sale Energy Disclosure Program Report INTRODUCTION: The working group has finished the report and is seeking approval from the Commission. ATTACHMENTS: Description Time of Sale Energy Disclosure Program Report Final Draft 1 Time of Sale Energy Disclosure Program Report January 2024 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 Final Draft 3 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 Final Draft 4 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 Final Draft 5 (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. Final Draft 6 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 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. 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. 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. 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. Final Draft 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 Date: February 8, 2024 Agenda Item #: VIII.A. To:Energy and Environment Commission Item Type: Other From:Chad A. Millner, P.E., Director of Engineering Item Activity: Subject:Discuss Green Business Recognition Program / Staff Tasks Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Discuss Green Business Recognition Program / Staff Tasks INTRODUCTION: Date: February 8, 2024 Agenda Item #: VIII.B. To:Energy and Environment Commission Item Type: Other From:Chad A. Millner, P.E., Director of Engineering Item Activity: Subject:Tree Recognition Campaign Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Discuss Tree Recognition Campaign. INTRODUCTION: Staff to share similar HPC program of Century Homes https://www.edinamn.gov/2026/Century-Homes. And share staff availability for this workplan item. Date: February 8, 2024 Agenda Item #: VIII.C. To:Energy and Environment Commission Item Type: From:Chad A. Millner, P.E., Director of Engineering Item Activity: Subject:Sustainability Manager Hire Update Information CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: Provide a Sustainability Manager Hire Update INTRODUCTION: