09/11/2012 - Energy and Environment Advisory Commission
AGENDA
ENERGY AND ENVIRONMENT ADVISORY COMMISSION
TUESDAY, SEPTEMBER 11, 2012
7:00 P.M.
CITY COUNCIL CHAMBERS
I. CALL TO ORDER AND PLEDGE OF ALLEGIANCE
II. ADOPTION OF AGENDA
III. APPROVAL OF MINUTES OF AUGUST 13, 2012 WORKSHOP
IV. VISITORS TO BE HEARD
V. PRESENTATION – WINTER STREET MAINTENANCE/STREET
SWEEPING
VI. OLD BUSINESS
VII. NEW BUSINESS
A.Subcommittee Organization to Meet the 2012/13 Goals
VIII. SUBCOMMITTEE UPDATES
A. Ordinances Related to Renewable Energy
B. PACE/Funding for Renewable Energy and Energy Efficiency
IX. STAFF/COMMISSIONER REPORT
A.Incorporating Sustainability Education at Home and Leisure Show
B.Compost/Recycling Project at ECC and Market Fest
X. ROUNDTABLE
XI. ADJOURNMENT
TO: THE ENERGY AND ENVIRONMENT ADVISORY COMMISSION (EEAC)
FROM: JULI SEYDELL JOHNSON, DIRECTOR OF PARKS AND RECREATION
DATE: SEPTEMBER 7, 2012
SUBJECT: ENERGY AND ENVIRONMENT ADVISORY COMMISSION MEETING
SEPTEMBER 11, 2012
A meeting of the Energy and Environment Advisory Commission (EEAC) will take place on Tuesday,
7:00 p.m.
September 11 at in the City Council Chambers. To ensure that a quorum is present, please contact
Juli Seydell Johnson at 651-675-5006 or jsjohnson@cityofeagan.com if you are unable to attend this
meeting.
I. PLEDGE OF ALLEGIANCE AND ROLL CALL
II. ADOPTION OF THE AGENDA
The agenda, as presented or modified, is in order for adoption by the Commission.
III. APPROVAL OF MINUTES
The minutes of the August 13, 2012 EEAC workshop are enclosed on pages 3-5 . These minutes,
pending any modifications, are in order for adoption by the Commission.
IV. VISITORS TO BE HEARD
The Eagan City Council and its Commissions set aside up to ten minutes at the beginning of public
meetings to permit visitors to address items of interest that are not addressed on the regular agenda.
Items that will take more than ten minutes or that require specific action can be scheduled for a
future meeting agenda.
V. PRESENTATION
The Commission requested informational presentations covering several areas of interest during
their goal setting meeting in August. In response to that request the first presentation will be from a
representative of the Public Works Department who will
winter streets maintenance and street sweeping operation.
VI. OLD BUSINESS
There are no Old Business items that require action by the Advisory Commission at this time.
VII. NEW BUSINESS
Following the workshop with the City Council the Advisory Commission may wish to discuss how
best to proceed with the recommendations or modifications made for the 2012/13 work plan and
goals. The Commission may wish to consider whether the existing subcommittees can meet those
goals or discuss the formation of different subcommittees to complete the tasks identified.
VIII. SUBCOMMITTEE UPDATES
1.City Ordinances Related to Renewable Energy (Amir, Jon, Mike)
- Included on pages 6-19
are the recommended revisions to the model ordinance based on the feedback from the August
13 workshop and a subsequent subcommittee meeting. A verbal update will also be provided.
2.PACE Funding for Renewable Energy and Energy Efficiency (Ross,)
Included on pages
20-22is the information that was included for the August 13 workshop discussion. The
subcommittee would like re-visit these recommendations should the City Council direct the
EEAC to proceed with this goal as presented or modified.
IX. STAFF/COMMISSIONER REPORT
Based on feedback from the August 13 workshop discussion staff will provide an overview of
ways in which sustainable education can be incorporated into the 2013 Home and Leisure Show.
Staff will provide a brief overview of the organics waste pilot program at ECC and Market Fest.
The Commission is reminded that there will be an educational session hosted by the EPA and
MnTAP at the ECC on September 12 from 8 a.m. noon. The purpose of this session is to
provide information to various event centers on how to implement a composting program by
X. ROUNDTABLE
The Roundtable is scheduled as an opportunity for Commissioners to ask questions, make requests
for future agenda items, or provide informative updates to the Commission pertaining to energy and
environment initiatives.
XI. ADJOURNMENT
/s/Juli Seydell Johnson
Director of Parks and Recreation
MEETING NOTES OF THE
EAGAN ENERGY AND ENVIRONMENT ADVISORY COMMISSION
WORKSHOP
AUGUST 13, 2012
A workshop of the Eagan Energy and Environment Advisory Commission was held on
Monday, August 13 at 7:00 p.m. Those present were Amir Nadav, Jeff LeClair, Jon Drucker,
Kari Palmer, Michael Wisniewski, Ross Bintner and Tim Harder. Staff present were Juli Seydell
Johnson, Director of Parks and Recreation and Cherryl Mesko, Superintendent of Operations.
AGENDA
Item VI-Subcommittee Updates was switched with item V-Develop Work Plan. Member
Palmer moved, Member Nadav seconded with all present members voting in favor to approve
the agenda as modified.
MEETING NOTES OF JUNE 12, 2012 WORKSHOP
Member Palmer moved, Member Bintner seconded with all present members voting in
favor to approve the June 12, 2012 workshop meeting notes as presented.
SUBCOMMITTEE UPDATES
Member Bintner provided an overview of the report and discussion from the PACE
subcommittee meetings since the last meeting. Members on the subcommittee are Bintner,
Nadav and Harder.
In an effort to make this program available to Eagan businesses, since it is not yet
available to residential properties, the subcommittee wanted to advance this initiative as part of
the 2012-13 goals for Council consideration. There was discussion about the role that the EEAC
would have in this initiative and it was determined that communication would be its key role.
Member Nadav provided an overview of the report and discussion from the Ordinance
Review subcommittee meetings since the last meeting. Members Nadav, Wisniewski and
Drucker all serve on this subcommittee.
Member Nadav provided background information to frame the subcommitteework to
date, highlighting the meeting with multiple City staff on July 16 to solicit feedback on the
landscaping and maintenance of vegetation model ordinance. The written feedback is nearly
complete and will be combined to help provide information that can help with future review.
A question was raised about the underlying purpose of ordinance changes. It was opined
that this would be a way to simplify the process for residents and to find a more consolidated
way to educate and communicate the information that residents need when approaching
landscaping projects that may impact their yard and/or city boulevard. The subcommittee wanted
to advance this initiative as part of the 2012-13 goals for Council consideration. There was
discussion about the role that the EEAC would have in this initiative and it was determined that
policy exploration and communication would be its key role.
WORK PLAN
After much discussion the following was developed as the proposed 2012-13 Work Plan
for the EEAC that would be forwarded to the City Council for review and direction:
2012-13 ENERGY AND ENVIRONMENT ADVISORY COMMISSION
VALUE STATEMENTS AND GOALS
The Energy and Environment Advisory Commission (EEAC) is proposing to maintain the
following value statements adopted in July of 2010 to guide the commission:
1. Recommend initiatives to the City of Eagan and its constituents to reduce waste and
2. Recommend initiatives to the City of Eagan and its constituents to protect the water, air
and soils in our City while enhancing the quality of life.
3. Recommend initiatives to the City of Eagan and its constituents which support renewal of
City of Eagan facilities, infrastructure, land use policies, and efforts that will promote
long range energy usage and resource sustainability.
4. Recommend initiatives to the City of Eagan and its constituents on ways to partner with
existing energy and environmental resources and stakeholders in order to collect and
disseminate information to empower the public.
2012-13 PROPOSED EEAC INITIATIVES
Initiative 1
. Continue to investigate ways in which the GreenSteps Cities program can be
enhanced and expanded through policy exploration and use Green Steps methodology to create
and communicate outreach and educational opportunities for the community. The work would be
focused on the following:
A. Review of City Ordinances/Procedures and recommend changes tothe City of Eagan and its
constituents to support best practices for renewable energy including landscaping, solar,
wind turbines, etc.
B. Recommend program/procedure to the City of Eagan that would provide opportunities for
businesses to participate in a Property Assessed Clean Energy Program (PACE).
C. Review public works water utility investments and water conservation ordinances and
recommend changes or initiatives to the City of Eagan and its constituents to support
GreenSteps best practices. Consider participating in the Water Sense Program to help
educate residents and businesses on ways to save water.
D. Study and recommend actions within the City to increase active living infrastructure.
Conduct a joint meeting with the Advisory Parks Commission to discuss initiatives that
align with the Complete Street initiative.
E. Recommend measures to the City of Eagan and its constituents to consider eliminating the
use of coal tar sealers through prohibition of its use within the city and educational efforts to
promote alternatives.
F. Recommend initiatives to the City of Eagan and its constituents to encourage waste
reduction cost savings that would allow for the publication of the existing tiered rate
schedules designed to encourage reduction, re-usage and recycling thatlicensed waste
haulers annually file with the city clerk, and the possibility of using a uniform reporting
form.
Goal 2
. Increase public awareness of the GreenSteps Cities efforts and programs through the use
of City publications, City website, social media, City events such as Showcase Eagan and the
Home & Leisure show, and other communication opportunities that would be available and
approved by the City of Eagan.
Several other items were identified as important considerations during the work plan discussion
and were put into different categories. Many of the items are educational in nature and are intended to be
scheduled as presentations at future EEAC meetings.
Speakers/presenters for future EEAC meeting:
Winter street maintenance (green alternatives to salt) and street sweeping process.
o
Rain gardens update on practical applications and how this is evolving.
o
Monitoring and controlling emission from diesel generators how are we addressing?
o
Greening of City fleet what is new, how are changes working, are there new initiatives?
o
Public education of sustainability initiatives.
o
Update composting pilot study.
o
Compost bins and rain barrels what is an affordable option for residents?
o
Home and Garden Show green theme
Staff will work on some options to see if there is a way to encourage green vendors and
o
presenters to participate in the 2013 Home Show. If not enough interest there may be a
more concerted effort to focus on re-branding the 2014 event.
Parking lot for future discussion:
Ordinances or regulations pertaining to wood burning and wood heaters.
o
EEAC members will be sent a draft copy of the proposed work plan and then provide feedback to
Director Johnson with any changes to make sure the work plan is correctly represented. Once the work
plan has been finalized it will be prepared for a joint meeting with the City Council on September 11.
Commission Members will then be able to articulate the intent of each goal or clarify any questions the
Council may have.
ADJOURNMENT
After further brief discussion, Member Harder moved, Member Palmer seconded with all
members voting in favor to adjourn the meeting. The meeting was adjourned at 8:45 p.m.
______________________________ _______________________________
Date Secretary
Update for August 13, 2012 EEAC Workshop
PACE Subcommittee Report
The PACE subcommittee met on July 16 to review work completed to date and develop
recommendations for Energy & Environment Advisory Commission (EEAC) consideration. The
PACE subcommittee looks forward to discussing the recommendations below at the Aug. 13
EEAC meeting.
COUNCIL ACTION REQUESTED:
Authorize and direct city staff to develop and launch an initial phase Property Assessed Clean
Energy Program (PACE) following MN Statue 216C.436.
INFORMATION/BACKGROUND:
In an effort to advance the city’s energy efficiency, sustainability and economic development
goals, the Eagan Energy & Environment Advisory Commission (EEAC) recommends that the
Eagan City Council authorize staff to develop and execute a PACE program that secures
financing for energy efficiency and renewable energy projects via voluntary property tax special
assessments.
There are eleven program requirements under the state statute, including:
Establishing financing terms that do not exceed the useful life of the project or 20 years,
whichever comes first. The assessment amount cannot exceed the lesser of 10% of the
assessed property value or the actual cost of installing the energy improvements. The
established interest rate must cover the cost of program administration. The borrowers’
ability to pay and the status of the borrower’s current mortgage payments must be
verified.
Completing an energy audit or feasibility study, as well as an inspection and performance
verification of at least 10% of the energy improvements.
Disclosing to borrowers the risks involved in borrowing, including risk of foreclosure if
taxes are not paid.
In the fall of 2011, the City of Edina became the first in the state to launch a PACE program. The
city’s November 16 Council Connection newsletter notes,
“The program provides private funding through a special assessment conduit that is
secured by the property itself, not the borrower. Special assessment revenue bonds issued
by the City through this conduit are secured by the property. According to legal counsel,
these special assessment bonds do not count against the City's legal debt limit.”
By setting up a PACE program, the City acts as an intermediary by issuing and selling bonds and
collecting loan repayments through special property tax assessments. The City then forwards tax
payments to a specific lending institution or a lending pool. The assumption is that lending
institutions will be interested in these loans because they have first lien on the property, and
therefore are at a low risk of default.
The City will issue revenue bonds which will be purchased by a lending institution provided by
the applicant, or made available through a lender pool. The City will charge an upfront fee and
an interest rate spread on the bonds to reimburse itself for the costs of administering the program.
The EEAC recommends that a modest fixed amount be dedicated for program development to
defer the cost of initial application through the program. The entire amount of loan principal,
plus fees and capitalized interest should be added to the overall voluntary special assessment
against the property.
The viability of first liens remains in question for housing due to developments at the federal
level. The Federal Housing Financing Agency (FHFA) has “urged state and local governments to
reconsider these programs and continues to call for a pause in such programs so (first lien)
concerns can be addressed” (FHFA Press Release 7/6/2010). There is proposed legislation in the
U.S. House of Representatives that would remedy the issue (HR 2599). Commercial programs
would not be subject to the FHFA guidance so the EEAC recommends PACE only apply to
commercial and industrial properties and multifamily housing not subject to FHFA oversight.
Single-family and other residential homes should be excluded from the program at this time.
The EEAC recommends that the City administer the program through the Community
Development department. All normal building permit processes and fees will apply to resulting
projects.
INITIAL PHASE DETAILS
Due to pending federal legislation and potential efforts at the state level to facilitate local
program implementation, the EEAC recommends that the City of Eagan begin by launching an
initial phase. This will place the City of Eagan in a leadership position, allow it to gain the
experience needed to better understand barriers to energy finance in the local market, and
prepare it to inform and benefit from potential future initiatives at the state and federal level.
The EEAC proposes that the City of Eagan set a goal to launch the pilot phase by February 1,
2013. The pilot phase shall include:
1.
Details finalized before the launch date:
Program materials including a summary and eligibility guidelines
o
Application materials including a petition for voluntary special assessments
o
Administrative guidelines clarifying the approval process and whether/when
o
applications should be approved administratively or by the City Council
Program fees and financing details
o
A program name
o
2.
A letter sent to local banks informing them of the voluntary opportunity to participate in a
lender pool, with potential for an informational event depending on interest and staff
capacity
3.
Outreach to businesses via the chamber of commerce, local media, Eagan Business News,
and city social media
4.
A presence on the city website with program details, application materials, fees and
financing details including information on local lenders that have opted into a lender pool
The city website presence should also list information on electric and gas utility
o
rebates and financing available to businesses andresidents in Eagan and note
where to find information on tax credits available for energy efficiency and clean
energy projects financeable through this program. The state statute requires
coordination and cooperation with utility conservation programs.
5.
A city staff member designated to serve as the program administrator
6.
Coordination with Dakota County, the Metropolitan Energy Policy Coalition (comprised
of commissioners from Twin Cities area counties), other local governments, and the State
Department of Commerce
7.
Recommendations for modifications based on program experience or efforts by other
cities, counties and the state, including the possibility of participating in a regionally-
aggregated program or a third-party administered program