Loading...
10/11/2022 - City Council Regular SPECIAL CITY COUNCIL MEETING TUESDAY OCTOBER 11, 2022 5:30 P.M. EAGAN ROOM – EAGAN MUNICIPAL CENTER AGENDA I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD III. JOINT MEETING WITH ENERGY & ENVIRONMENT ADVISORY COMMISSION (EEAC) A. SUSTAINABILITY PLAN UPDATE B. PROPOSED 2023 WORK PLAN IV. 2023 CIP PRESENTATION AND CAPITAL LEVY REVIEW V. OTHER BUSINESS VI. ADJOURNMENT Agenda Information Memo October 11, 2022 Eagan Special City Council Meeting III.Joint Meeting with Energy and Environment Advisory Commission Direction for Consideration: This is an informational presentation and joint meeting with the members of the Energy and Environment Advisory Commission and no specific action is required. In the first half of the meeting, Councilmembers and Commissioners will discuss sustainability as a key initiative across the city. Following this discussion, the Energy and Environment Advisory Commission seeks input on proposed 2022 – 2023 goals and direction for future research. Facts: ➢The Energy and Environment Advisory Commission (EEAC) meets annually with the City Council to have dialogue that is important for their advisory work. ➢For part of the joint meeting, Assistant City Administrator Sarah Alig will present a summary of the strategic planning process and notes from a workshop with sustainability experts in Eagan. Councilmembers and Commissioners will be asked to discuss their values, expectations, and assumptions around sustainability in Eagan. ➢For another part of the joint meeting, Director Pimental, Assistant Director Flewellen and Commissioners will present findings on past goals from 2021 – 2022, as well as proposed goals for the EEAC during 2022-2023. ➢The two goals from 2021 – 2022; Outreach and Education and City electric vehicle use and charging infrastructure conditions. ➢Similar to previous years, the proposed goals focus on sustainability efforts that could benefit the environmental impact of city residents and commercial businesses. ➢The EEAC is proposing three goals that they feel will be attainable to provide sufficient research and solutions for future consideration. 1)Proposed Goal #1 – Education and Outreach: Update, organize and gather content related to energy, environment and sustainability to enhance the user experience on the City website. 2)Proposed Goal #2 - Research potential new partnerships from within the city of Eagan, Dakota County, Minnesota and Midwest/Great Lakes region to enhance information sharing through our website, guest speakers and outreach opportunities. 3)Proposed Goal #3 - Research potential renaming of the Commission and redevelopment of Commission Mission Statement. Attachments: (3) III – 1 Sustainable Future for Eagan Presentation III – 2 Education and Outreach Summary III – 3 EV Summary Ensuring a Sustainable Future for Eagan Energy and Environment Commission City Council AGENDA Context Process and Timeline State of Sustainability Workshop Summary Community Values Discussion 3 94% approval rating 93% Natural Environment is a priority Process and Timeline Foundation Vision ObstaclesStrategic Priorities Year One Action Plan •“State of Sustainability Workshop” (Technical Expertise)September •Final two franchise agreements •Joint Council –EEAC Meeting (Community Values)October •Vision WorkshopNovember •Strategic Priorities Workshop •Finalize Sustainability Coordinator Position DescriptionDecember •Franchise Fee Agreements •Recruit Sustainability CoordinatorJanuary •Finalize First Year Work Plan / Detailed Program BudgetFebruary State of Sustainability Workshop Notes THANK YOU!Jackson Becker – Dakota Valley Recycling Sue Bast –Retired Burnsville Sustainability Coordinator Stacy Miller – Minneapolis Sustainability, Dakota Electric Board of Directors Sara Patrick –Electric Utility Regulator / EEAC Val Jackson –Co-chair of Friends of Eagan Core Greenway Stefnee Trzpuc – Architecture and Design Operations Leader Dione DeMartelaere – DLR Architect / APRC Don Vasatka –EEAC Jack Conrad –Co-chair of Friends of Eagan Core Greenway, Director at Thompson Reuters Cassidy Carlisle – Dakota Valley Recycling Stacy Fleenor –Building Energy Management Software Portfolio Leader, Board of Wilderness in the City group Peter Dugan –EEAC Ian Ziese –3M, Citizens Climate Lobby volunteer/ EEAC Dan Robicheaux – Planner in Electric Utility / EEAC They brainstormed a list of emerging issues, trends, patterns, and ideas we need to pay attention to as we work to ensure a sustainable future for Eagan. HORIZON EMERGING CREST TROUGH UNDERTOW HORIZON •Digital twins and virtual modeling •Inflation reduction act and IGRA act – retrofitting homes for efficiency •Downcycling awareness and impact (requirement to purchase products with recycled content) •real zero vs. net zero •Block chain (highly energy intensive but potentially useful tool) •Light pollution awareness •Distributed energy resources (DER) •Microgrid –to explore idea •Single use products •Population shifts due to rising sea levels •Increased wildfires will affect us •Water security (local threats and western consumption) •Tree preservation (EAB, zone migration) •Salt / freshwater time bomb •Managed migration and growth (specifically climate related) •Public health impacts of climate change esp. pest borne diseases i.e. ticks and amoebas •Patagonia’s $3B donation •Land Back and indigenous leadership •Electric airplanes EMERGING •Energy storage (batteries or excess solar) •onsite generation of DERs •plastic bag, Styrofoam etc regulation and/or bans •curbside composting •net zero goals for companies •Food waste awareness and changes •Low maint natural open spaces in cities •Electric lawnmowers •Electrification of industries, not just vehicles, like healthcare •EV infrastructure •Labor shortage i.e. haulers for waster programs. Organized wasted collection •Sustainable city and neighborhood developments •AI and predicting energy consumption, modeling •Digital twins •Consumerism around small business support re: social and environmental justice •Adaptation, walkability and density •Electric bikes –think about world beyond cars •Building degasification (laws for new construction) •Energy storage and electrification •Permaculture, locavorism, community gardens •Being water wise –xeriscaping, no water lawns •Transportation options, densification –ways to move that aren’t automobiles •Frequent, intense severe weather –drought and storms CREST / ESTABLISHED •high capacity, LRT, A-line BRT •energystar, led –building electrification, •renewable energy contracts •composting facilities, available •tree planting + tree awareness •Vegetative barriers along roads •Community gardens •Digitizing documents and other paper •Curbside organics and organized hauling (aspirational!) •Ionization systems and HVAC •Single stream recycling + steady education on how to •Use of renewable energy •HVAC efficiency •Curbside recycling and zero waste initiatives •Creating a climate action plan •Sustainability management with use of metrics, ex: performance in greensteps program •Greenhouse gas inventories –corporate sustainability initiatives •MUST involve / empower diverse participants and youth in climate change solutions (i.e. climate generation) •Water conservation –ban on new irrigation systems? Water reuse on city sites? •Community gardens TROUGH / OUTGOING •coal power •building occupants uninterested in certification process but interested in high performance •Public opinion that climate change doesn’t exist •gas as primary fuel for cars, internal combustion engines •large vehicles •Incandescent bulbs •Car centric development •Restrictive zoning (SFH) •Not being flexible / agile to apply for funding UNDERTOW •assuming electric vehicles are the panacea •older buildings which are chronic wasters of energy •mindset of ‘it’s how we have always done it’ •consumerism and convenience factor •economics –some people will lose jobs or fear changes •Eagan city ban against outdoor textile collection containers •Existing garbage enclosure requirements for businesses in Eagan •Competing priorities •Overfocus on growth •Overdevelopment •Political instability –changing of the guard at federal and other levels •Vetocracy •Assumptions that old patterns will hold •Institutional sluggishness (need agile institutions / governance to nimbly handle these challenges and opportunities) •Demolition / redevelopment waste Building Efficiency Transportation Food & Waste Development Water Open Spaces / Land Electrification Crisis response Innovation DISCUSSION Community Values, Assumptions, and Expectations What local values do you associate with sustainability? What strengths does Eagan bring to this key initiative? What concerns you about sustainability in Eagan? Why is sustainability important in Eagan? SUSTAINABLE FUTURE FOR EAGAN Operational feasibility Technical expertise Community values Memo To: City Council and Mayor Maguire From: Education and Outreach Subcommittee (Rebecca Oldenburg, Dan Robicheaux, Seth Swanlund) Date: March 23, 2022 Subject: Education and Outreach Final Report The Energy and Environment Advisory Commission (EEAC) continued to see the public benefit in Education and Outreach to the residents and business community of Eagan and purposed to continue the goal in 2021-2022. Rather than focus on attending in person events, the subcommittee focused on the City of Eagan website and distribution of materials through a variety of avenues. The purposed goal to the Mayor and City Council was as follows:  Outreach topics for information distribution: Radon Education, Available Solar programs, Alternative Lawn Care machinery items  Website Organization and Improvements: Organics Compost Drop-sites, available solar programs, How Storm Water effects residents and rain garden best practices. The subcommittee connected with the City of Eagan Communications Department to revise city webpages on radon, solar, yard equipment, organics composing and stormwater. The overall goal was to create efficiencies within those pages, revise pages to use plain language, simplify navigation and enhance the user experience. The Communications Department worked with the subcommittee to complete those goals and created www.cityofeagan.com/green to be the “home page” for all items surrounding energy, environment and sustainability. Memo To: City Council and Mayor Maguire From: Electric Vehicle Subcommittee (Ian Ziese, Daniel Ferber, Sudarshan Sood) Date: March 23, 2022 Subject: Electric Vehicle Final Report The Energy and Environment Advisory Commission (EEAC) last proposed an electric vehicle (EV) related committee as part of the 2019-20 session. Public support continues to grow along with the number and variety of models offered by manufacturers. As the clock continues to tick on addressing the climate crisis, the commission felt it was appropriate to once again tackle electric vehicles as part of the 2021- 2022 session. The subcommittee took a variety of steps to research and form recommendations for council. We met with noted local EV expert Jukka Kukkonen (Consultant at Fresh Energy, founder of Shift2Electric) regarding industry trends, interviewed Ben Rabe of Fresh Energy regarding building policy, and spoke with Jody McDevitt of Energy Management Solutions regarding their no-cost charging station program. We also met with Fleet and Facilities Manager for the City of Plymouth Amy Hanson regarding their recent partnership with Energy Management Solutions. Finally, we read articles, reached out to staff in other cities, and researched actions being taken by other cities locally and nationally. Our recommendations came into focus as a result of these efforts. They are as follows: 1. Recommend the city works with a company like Energy Management Solutions to increase the density and availability of charging infrastructure within the city 2. Recommend the city consider adopting EV-friendly building ordinances for single family and more importantly multi-family housing 3. Recommend the city create goals and a plan to begin switching the fleet to EVs. Page 2 Details regarding these recommendations are provided below. Increased Charging Infrastructure One key method for cities to support EV adoption is through expanded availability of Electric Vehicle Service Equipment (EVSE), colloquially referred to as “charging stations”. “Range anxiety”, or the worry about having enough electric range to arrive at a given destination, can be alleviated through the pervasive ubiquity of these stations. Although the bulk of charging is done at home, widespread availability of public charging stations clearly signal to current and prospective EV buyers that they will always possess options to recharge. Through joint and parallel meetings, the EEAC and Eagan City Council explored charging stations deployment plans. As part of that investigation, we met with Amy Hanson from the City of Plymouth as well as Jody McDevitt of Energy Management Solution. Jody and Amy were both able to answer the commission's questions to our satisfaction. We were encouraged by Energy Management Services offerings, as long as we do not enter into an exclusive partnership. It is worth noting that experts such as Jukka Kukkonen question the longer term value of public level 2 charging, as well as considering whether the city should take on additional responsibilities for deployment of high quality services such as these or defer them to the private sector. Although there is certainly an argument to be made for keeping profitable endeavors public, the city lacks the economies of scale and the risk tolerance required for this project to undertake it on its own. As such, the commission endorses engaging with a low or no-cost provider such as Energy Management Solutions to expand the availability of charging stations within the city. Adopt EV-friendly Building Ordinances The world has only a few years remaining to make dramatic changes to our GHG emissions in order to mitigate the worst impacts of climate change. Buildings by their very nature are built for the long-term. We’d expect any new construction today to last many decades, if not longer. Similarly, we know that almost any retrofitting done to existing buildings is more expensive by several orders than new construction. Jukka Kukkonen cited a 4-5x cost difference in making a single or multi-family home EV- ready, while our research indicated anywhere from a 2.5-4x difference. Given the heightened cost of retrofits and the inescapable march towards electrification paired with renewable energy to reduce net GHG emissions, we recommend the city adopt EV-friendly building ordinances and policies. The city should consider enacting ordinances that require new single and multi-family construction to provide “EV-Ready” and “EV-Capable” (see appendix) parking spaces. Per section R401.4 of the 2021 IECC residential energy code: Page 3 “For each dwelling unit, provide at least one EV-Ready Space1. The branch circuit shall be identified as ‘EV-Ready’ in the service panel or subpanel directory, and the termination location shall be marked as “‘EV-Ready.’ Exception: EV-Ready Spaces are not required where no parking spaces are provided. Additionally, Jukka Kukkonen recommended 25% “EV-ready” parking in multifamily homes, essentially making each EVSE reachable by all four vehicles in a quadrant. Conversely, the IECC residential energy code recommended: “EVSE-Installed, EV-Ready Spaces and EV-Capable Spaces shall be provided in accordance with Table R401.4.3. EV-Ready Spaces that terminate with an installed Level 2 EVSE shall count as spaces under the EV-Ready Space requirements Where the calculation of percent served results in a fractional parking space, it shall round up to the next whole number.” In summary, given the dramatic reduction in cost during new construction compared to a subsequent retrofit and the foreseeable need to retrofit in the next few years, the commission recommends adopting ordinances similar to above for all new construction in Eagan. Create EV-Ready Fleet Policy Fleet electrification continues to be a primary way for cities to reduce their greenhouse gas (GHG) emissions. Eagan has taken several steps in this direction since the commission last adopted an EV- related goal. Notably, the city leased a plug-in hybrid electric vehicle (PHEV) Mitsubishi Outlander, then expanded the program to lease additional Outlanders in subsequent years. These vehicles are saving the city money while reducing GHG emissions, and recent price volatility in oil and gas further illuminates the wisdom in making the switch to electric. 1 See Appendix B for an explanation of the terms Page 4 While these were important first steps, the EV market is continuing to rapidly change with more variety and heavier duty vehicles coming to market over the next few years. Although the city maintains a large number of heavy duty vehicles in its fleet which may not have direct EV counterparts today, the passenger vehicles the city utilizes remain a ripe target. In addition, the city needs to be forward looking in setting its fleet management goals. As such, the committee recommends that the city adopt a fleet procurement policy that prefers high fuel economy, low emissions options, including electric vehicles. This policy should include specific targets for reductions in gas-powered fleet vehicles, such as setting overall goals for fleet composition (e.g. “50% of the fleet should be electric by 2026”), or policies stating preferences for electric vehicles (e.g. “all passenger new vehicles should be electric”). SMART (Specific, Measurable, Achievable, Relevant, and Time-Bound) policies like these provide clear and unambiguous guidance towards meeting the objectives of the city. Page 5 Appendix EV-Ready Space The following definition was added to Section R202 of the 2021 IECC residential energy code and Section C202 of the 2021 IECC commercial energy code. A designated parking space which is provided with one 40-ampere, 208/240-volt dedicated branch circuit for future dedicated Level 2 EVSE servicing EVs. The circuit shall terminate in a suitable termination point such as a receptacle, junction box, or an EVSE, and be located in close proximity to the proposed location of the EV parking spaces. The circuit shall have no other outlets. The service panel shall include an over-current protective device and provide sufficient capacity and space to accommodate the circuit and over-current protective device and be located in close proximity to the proposed location of the EV parking spaces. Electric Vehicle Supply Equipment (EVSE) The conductors, including the ungrounded, grounded and equipment grounding conductors, and the EV connectors, attachment plugs, and all other fittings, devices, power outlets, or apparatuses installed specifically for the purpose of transferring energy between the premises wiring and the EV. EV-Capable Space A dedicated parking space which is provided with electrical panel capacity and space to support a minimum 40-ampere, 208/240-volt branch circuit for each EV parking space, and the installation of raceways, both underground and surface mounted, to support the EVSE. Agenda Information Memo  October 11, 2022 Special City Council Meeting  IV. 2023‐2027 Capital Improvement Plan and Levy Review Direction for Consideration   Staff will provide an update on the 2023‐2027 Capital Improvement Plan (CIP) and provide a proposed  use of funding sources for the Facilities, Equipment and Parks projects.    Facts  The City has a variety of Capital Funds that account for capital purchases that include infrastructure improvements, vehicle and fleet equipment, technology and furniture and fixture purchases. The City’s Capital Funds are primarily funded by Tax levy. The City has multiple phases of CIP development: o Phase 1 – Public Works CIP o Phase 2 – Parks Development CIP o Phase 3 – Facilities and Equipment CIP 2022 is the second year of the two‐year budget process where staff is preparing the 2023‐2027 CIP with additional long‐term analysis that has identified short and long‐term funding needs for the Parks Development CIP and the Facilities and Equipment CIP. Staff presented a Long‐term Review of Capital Funding for Phase 2 and Phase 3 of the CIP at the September 8, 2022 Finance Committee meeting. Minutes and recommendations from the Finance Committee meeting were distributed to the City Council. Recommendations included using $3.1 million of General Fund and Eagan Community Center Fund balance to provide short‐term funding for the Parks Development and the Equipment Revolving Fund and incrementally increasing the City’s tax levy to provide long‐term financial sustainability in the future.  Tax levy increases would be as follows: o 2024 ‐ $ 650,000 o 2025 ‐ $ 400,000 o 2026 ‐ $ 250,000 The Finance Committee also requested a Finance Committee meeting be held next Fall to review the financial health of the funds and to continue evaluating the level of short and long‐term funding. Policy Questions for Consideration:  1.) Is the Council supportive of the use of fund balance to fund the short‐term needs of the  Equipment Revolving and Parks Development Funds?  $2.5 million of General Fund Balance $620,000 Eagan Community Center Fund balance 2.) Is the Council supportive of the tax levy increases in the Equipment Revolving and Parks  Development Fund to provide cash needs, fund depreciation and inflationary increases?  Attachments:  IV‐1. Long‐term Review of the Capital Funds presentation  10/6/2022 1 Long-term Review of Capital Funds Special City Council Meeting October 11, 2022 • 2nd year of the 2-year budget process • Primary goals: • Provide adequate funding for capital asset purchases • Planning for Long-term financial stability Long-term capital Funding Goals 1 2 10/6/2022 2 • Funds • Equipment Revolving Fund (ERF) • Facilities Renewal and Replacement (R&R) • Fire Apparatus Fund • Parks Development Fund • Predominately Funded by Tax Levy • History of using Fund balance out of the General Fund Long-term capital Funding Goals Capital Funds - Tax Levy History City has General Fund reserves in excess of its target range Financial consultant cautions against the use of too much reserves in an uncertain economy 3 4 10/6/2022 3 Capital Funds - Tax Levy History Long-term Capital Funding – Equipment Revolving Fund 5 6 10/6/2022 4 Long-term Capital Funding – Equipment Revolving Fund Long-term Capital Funding – Equipment Revolving Fund 7 8 10/6/2022 5 Long-term Capital Funding – Facilities R&R Long-term Capital Funding – Facilities R&R 9 10 10/6/2022 6 Long-term Capital Funding – Facilities R&R ECC Fund Balance - Roof replacement $220K 200K 200k Long-term Capital Funding – Fire Apparatus 11 12 10/6/2022 7 Long-term Capital Funding – Fire Apparatus $1 Million of ARPA Funds Long-term Capital Funding – Park Facilities 13 14 10/6/2022 8 Long-term Capital Funding – Parks Facilities Long-term Capital Funding – Parks Facilities $1 million transfer General Fund balance Tax levy Increase $250,000 for 2024 and 2026 15 16 10/6/2022 9 Results: • $2.5 million of General Fund reserves would be transferred • $620,000 of ECC Fund reserves would be used • Provides adequate cash for the short-term capital needs • General Fund balance is estimated to be at 52% as of the year ended 12/31/2022 if no additional surplus for the year Long-term Capital Fund - Results Results: • Tax Levy increases for the capital funds (fund depreciation and inflation and short-term needs) * Estimate is based assumptions with current baseline of budget and does not include the hiring of personnel or additional increases due to service level changes. (COLA and inflationary assumptions are included) Long-term Capital Fund - Results 17 18 10/6/2022 10 1. Is the City Council supportive of the use of fund balance to fund the short – term needs of the Equipment Revolving and Parks Development Funds? • $2.5 Million General Fund Balance • $620,000 Eagan Community Center 2. Is the City Council supportive of the tax levy increases in the Equipment Revolving and Parks Development Fund to provide cash needs, fund depreciation and inflationary increases? • 2024 - $650,000 • 2025 - $400,000 • 2026 - $250,000 Policy Questions 19