2024-11-19 City Council Work Session Packet
CITY OF MENDOTA HEIGHTS
CITY COUNCIL WORK SESSION MEETING AGENDA
November 19, 2024 at 5:00 PM
Mendota Heights City Hall, 1101 Victoria Curve, Mendota Heights
1. Call to Order
2. Discussion
a. Partners in Energy - Energy Action Plan (Draft)
b. Cannabis Ordinance
c. City Hall - Police Station Visioning
3. Adjourn
Alternative formats or auxiliary aids are available to individuals with disabilities upon request.
Please contact City Hall at 651-452-1850 or by emailing cityhall@mendotaheightsmn.gov
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2.a
City Council Work Session Memo
MEETING DATE: November 19, 2024
TO: Mayor, City Council and City Administrator
FROM: Krista Spreiter, Natural Resources Coordinator
SUBJECT: Partners in Energy - Energy Action Plan (Draft)
ACTION REQUEST:
The City Council will hear a presentation of the Partners in Energy Energy Action Plan (draft)
from Xcel Energy's representative. The Council is asked to provide comments and feedback.
BACKGROUND:
Mendota Heights has been given the opportunity to participate in a collaboration with Xcel
Energy, as part of the Xcel Partners in Energy Program. Partners in Energy is a program
provided by Xcel Energy that assists communities to develop an energy plan and implement
that plan. Partners in Energy will provide tools and resources to support Mendota Heights'
unique energy needs, priorities, and vision to achieve the city's energy goals.
The collaboration between Xcel Energy and the city is a two-year commitment to develop and
implement this Energy Action Plan. The six-month planning stage has now concluded. The
planning stage involved five workshops facilitated by Xcel Energy's representative in which the
Energy Action Team (comprised of residents, local business owners, students, county and city
staff, and Natural Resources Commission members) worked to guide and develop the Energy
Action Plan. Through these workshops, the Energy Action Team established three goals for
Mendota Heights: increasing energy efficiency, decreasing energy costs, and avoiding
greenhouse gas emissions. If the plan is accepted by City Council, this stage will be followed
by an 18-month implementation stage in which the community is asked to take action within
four focus areas to achieve its goals:
•Residential Energy Efficiency
•Business & Municipal Energy Efficiency
•Renewable Energy
•Beneficial Electrification
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When completed, this plan will serve as a road map to help Mendota Heights save energy,
combat climate change, and increase cost savings.
ATTACHMENTS:
1.2024_11_11 PiE-MN-Mendota Heights Energy Action Plan
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DRAFT
An Energy Action Plan for
Mendota Heights
November 2024
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Mendota Heights Energy Action Plan i
ACKNOWLEDGEMENTS
Thank you to the following individuals who contributed many hours of service to developing this
Energy Action Plan.
NAME AFFILIATION
Alexis Ludwig-Vogen Mendota Heights Resident
Emily Smith Xcel Energy Employee & Mendota Heights Resident, Serving
as Resident
Jade Friedman Mendota Heights Resident, Two Rivers High School Student
Jodi Coyer Mendota Heights Local Business Owner
Kelly Torkelson Assistant City Administrator
Krista Spreiter Community Lead, Natural Resources Coordinator, City of
Mendota Heights
Lily Wollan Mendota Heights Resident, Two Rivers High School Student
Lisa Alfson Director of Community & Economic Development, Dakota
County
Lori Knosalla Natural Resources Commission Member; Sustainability
Committee
Patrick O'Leary Mendota Heights Resident
Rosemary Husbands Natural Resources Commission Member; Sustainability
Committee
Ryan Ruzek Public Works Director
Will Stein Natural Resources Commission Member; Sustainability
Committee
Utility Representatives and Facilitators
Adam Burr Account Manager, Xcel Energy
Ana De La Torre Partners in Energy Community Facilitator
Matthew Douglas-May Partners in Energy Community Facilitator
Michelle Frost Partners in Energy Community Facilitator
Paolo Speirn Partners in Energy Community Facilitator
Sofia Troutman Program Manager, Xcel Energy's Partners in Energy
The content of this plan is derived from a series of planning workshops hosted by Xcel Energy’s
Partners in Energy. Xcel Energy is the main electric and gas utility serving Mendota Heights.
Partners in Energy is a two-year collaboration to develop and implement a community’s energy
goals. For more information about the planning workshops, see Appendix A: Xcel Energy’s
Partners in Energy Planning Process.
This Energy Action Plan was funded by and developed in collaboration with Xcel Energy’s
Partners in Energy. Partners in Energy shall not be responsible for any content, analysis, or
results if Mendota Heights has made modifications to the plan.
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Mendota Heights Energy Action Plan ii
TABLE OF CONTENTS
Acknowledgements ...................................................................................................................... i
Executive Summary ................................................................................................................... 3
Introduction ................................................................................................................................ 5
About This Plan ...................................................................................................................... 5
Why an Energy Action Plan .................................................................................................... 5
Where We Are Now ................................................................................................................... 7
Community Demographics ..................................................................................................... 7
Energy Use and Savings ........................................................................................................ 8
Where We Are Going ................................................................................................................19
Energy Vision ........................................................................................................................19
Focus Areas ..........................................................................................................................19
Residential Energy Efficiency ............................................................................................20
Business & Municipal Energy Efficiency ............................................................................20
Renewable Energy ............................................................................................................20
Beneficial Electrification.....................................................................................................20
Goals ....................................................................................................................................21
Energy Action Plan Impact ....................................................................................................21
How We Are Going To Get There .............................................................................................24
Strategies Overview ..............................................................................................................24
Focus Area: Residential Energy Efficiency ............................................................................25
Focus Area: Business and Municipal Energy Efficiency ........................................................26
Focus Area: Renewable Energy ............................................................................................28
Focus Area: Beneficial Electrification ....................................................................................29
How We Stay On Course ..........................................................................................................31
Appendix A: Xcel Energy’s Partners in Energy Planning Process .............................................33
Appendix B: Baseline Energy Analysis ......................................................................................38
Appendix C: Methodology for Measuring Success ....................................................................45
Appendix D: Glossary of Terms ................................................................................................50
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EXECUTIVE SUMMARY
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Mendota Heights Energy Action Plan 5
INTRODUCTION
About This Plan
This Energy Action Plan is a roadmap to strategically guide Mendota Heights’ action in a
manner that supports the community goal to save $1.6 million for residents and businesses and
avoid 9,000 MTCO2e of greenhouse gas emissions by 2030 (that’s like removing over 2,100
gas-powered cars from the road for a single year!).
The goals and strategies outlined in this plan were developed collaboratively with a group of
stakeholders, referred to as the Energy Action Team, through five planning workshops
conducted between February and August 2024. The Energy Action Team included Mendota
Heights residents, Commission members and City staff (see Acknowledgements for full list of
participants). Team members coordinated throughout the process to share information and
identify potential opportunities for partnership during implementation. See Appendix A: Xcel
Energy’s Partners in Energy Planning ProcessAppendix A: Xcel Energy’s Partners in Energy
Planning Process for more information about the planning process and Xcel Energy Partners in
Energy.
Mendota Heights joined more than 30 other Minnesota and Wisconsin communities that have
developed Energy Action Plans through Xcel Energy’s Partners in Energy, an offering that
provides resources for community energy planning. Partners in Energy also supports 18 months
of plan implementation in the form of marketing and communications, data tracking and
analysis, program expertise, and project management.
Why an Energy Action Plan
The City of Mendota Heights and its residents are committed to building a resilient future.
Robust efforts are being made to create a more energy efficient and sustainable city — this
Energy Action Plan will help guide the community in achieving its goals.
Climate trends suggest that in the next 50 years, Mendota Heights will experience more severe
weather events, which are expected to have substantial impacts on public health. Climate-
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Mendota Heights Energy Action Plan 6
resilient communities can prevent the worst public health and economic impacts by adapting the
built environment and reducing greenhouse gas emissions.
To help reduce Mendota Height’s greenhouse gas emissions, the City prioritizes energy
efficiency. In the City’s 2040 Comprehensive Plan, Chapter 8, “Resilience,” addresses
renewable energy, the City’s emergency action plan and sustainability. This chapter was
initiated and created by community members with experience and knowledge of the subject
matter and was included at the residents’ recommendation. Many residents and community
members are already dedicated to the goal of sustainable energy within the city.
In 2021, Mendota Heights joined GreenStep Cities, the program to assist and encourage
sustainability in municipalities around Minnesota. Mendota Heights has achieved steps one, two
and three. Being part of this organization shows continued efforts to improve the sustainability of
Mendota Heights. The City also has a Natural Resources Management Plan (2022), which
incorporates information and implementation strategies in planning for climate change and
sustainability as it pertains to the city's natural resources.
Creating an Energy Action Plan will strategize the steps to greater energy efficiency,
significantly benefiting the environment. By focusing on reducing energy use in homes and
businesses, switching to renewable energy sources, or upgrading to more energy efficient
appliances, everyone can contribute to a more sustainable future! Additionally, making energy
efficient choices not only helps the planet but also saves money. These efforts will lead to
lasting advantages for both the community and the environment, making Mendota Heights an
even better place to live, work and play.
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Mendota Heights Energy Action Plan 7
WHERE WE ARE NOW
An integral part of the Partners in Energy planning process is reviewing historical energy data
that informs the community’s energy baseline. Xcel Energy provided data on energy use,
participation counts and utility energy conservation program savings for Mendota Heights, as
detailed in the following sections. See Appendix B: Baseline Energy Analysis for a
comprehensive picture of Mendota Heights’ baseline energy data.
Community Demographics
As of 2021, Mendota Heights’ population of almost 12,000 residents lived in approximately
4,900 housing units. With lower levels of diversity compared to the Twin Cities metro area, 7%
of residents speak a language other than English, 12% of residents identify as multiracial and
4% identify as Asian. A poverty rate of 3% and a median household income of $130,000 make
this a wealthier community compared to some peer cities. With 86% of housing built before
2000, most Mendota Heights residents live in housing stock with significant opportunity for
energy efficiency improvements given the lower energy efficiency standards and general wear
and tear on older buildings. Additionally, 18% of units in Mendota Heights are renter-occupied,
presenting unique opportunities for energy efficiency measures that target renter-occupied units.
Figure 1 displays the community demographic profile.
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Mendota Heights Energy Action Plan 8
Figure 1. Overview of Mendota Heights community demographics1
Energy Use and Savings
Premises
Xcel Energy provides electricity and natural gas to Mendota Heights residents and businesses.
In 2023, Mendota Heights consisted of 5,872 distinct utility premises, which are a unique
combination of service address and meter. For residential customers, this is the equivalent of an
individual house or dwelling unit in a multi-tenant building. For business customers, it is an
individual business, or for a larger business, a separately metered portion of the business’ load
at that address. Most Mendota Heights premises are residential, with a small number of
commercial and industrial premises and a smaller portion of municipal premises rounding out
the total (Figure 2).
1 Source: U.S. Census Bureau American Community Survey, 2022 five-year estimates
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Mendota Heights Energy Action Plan 9
Figure 2. Total premises by sector, 2023
Grid Energy Use
On average during the 2021–2023 baseline period, the Mendota Heights community consumed
128 million kWh of electricity and 9.1 million therms of natural gas across all sectors per year
(Figure 3). In order to compare energy use between electricity and natural gas consumption on
a common measure of energy savings potential, total energy consumption (below right) was
calculated using both electricity and natural gas consumption converted into British thermal
units (MMBTu). Although the commercial and industrial sector only makes up 13% of premises
in Mendota Heights, it accounts for over half of total energy consumption. Commercial and
industrial premises use significantly more energy on average per premise than residential
premises, a typical pattern for cities like Mendota Heights.
Figure 3. Average annual energy consumption by sector, 2020–2022
During the three-year baseline period (2021–2023), Mendota Heights’ overall electricity
consumption decreased slightly by almost 1%. Electricity consumption in the residential sector
decreased almost 3% during the three-year baseline, while commercial consumption increased
by 0.15% (Figure 4). Mendota Heights’ natural gas consumption increased by 2% overall the
esidential
4 . %
Commercial
and Industrial
. %
Municipal
0. %
esidential
3 .3%
Commercial
and Industrial
2.3%
Municipal
0.4%
esidential
3.0%
Commercial
and Industrial
4 .4%
Municipal
0. %
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Mendota Heights Energy Action Plan 10
baseline period, driven by a 6% increase in the commercial and industrial sector (Figure 5). At
the same time, the residential sector experienced a decrease of 1%. Total energy consumption
during the baseline period varied in each sector consistent with variation in weather. Hotter
summers (those with more cooling degree days) and colder winters (those with more heating
degree days) had higher energy consumption. For example, of the three years considered,
Mendota Heights’ natural gas consumption was at its highest level in 2022, which was also the
coldest year with the most heating degree days.
Figure 4. Electricity consumption by sector, 2021–2023
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Mendota Heights Energy Action Plan 11
Figure 5. Natural gas consumption by sector, 2021–2023
Energy Costs and Energy Burden
During an average year over the three-year baseline period, Mendota Heights spent an
estimated $25 million on fuel costs for both electricity and natural gas (Figure 6). Not quite half
of these costs were paid by residents, with total annual average fuel costs at $11 million. A
residential premise spent an average of $2,180 annually on electricity and natural gas. The
commercial sector averaged $13 million annually on fuel costs. While costs vary greatly for
commercial and industrial premises based on size and industry, on average these premises
spent more than $18,000 annually.
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Mendota Heights Energy Action Plan 12
Figure 6. Total average annual energy costs by sector, 2021–2023
Table 1. Average annual fuel costs by sector and fuel type, 2021–2023
Sector
Annual Electricity
Costs
Annual Natural
Gas Costs
Annual Cost per
Premise
Residential $6,761,896 $4,265,189 $2,180
Commercial & Industrial $9,663,943 $3,355,895 $18,150
Municipal $73,905 $44,011 $4,314
Total $16,499,744 $7,665,095
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Mendota Heights Energy Action Plan 13
Energy burden is the percentage of income that community members spend on energy. A high
energy burden is defined as spending greater than 6% of income on energy, while a severe
energy burden is greater than 10% of income.2 The group of Mendota Heights residents with the
greatest energy burden are those who own their homes and make 30% or less of the area
median income. This group spends up to 10% of their income on energy costs (Figure 7). The
household data in
Figure 8 show that 4% of Mendota Heights residents fall into this category. As a point of
reference, 55% of Mendota Heights residents are homeowners who make more than the area
median income, a group with a 1% energy burden.
2 APPRISE (Applied Public Policy Research Institute for Study and Evaluation). 2005. LIHEAP Energy
Burden Evaluation Study. Washington, DC: HHS (Department of Health and Human Services).
www.acf.hhs.gov/sites/default/files/ocs/comm_liheap_ energyburdenstudy_apprise.pdf.
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Mendota Heights Energy Action Plan 14
Figure 7. Energy burden by income and owner status3
Figure 8. Household count by income and owner status
3 Source: Department of Energy Low-Income Energy Affordability Data Tool.
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Mendota Heights Energy Action Plan 15
Greenhouse Gas Emissions
Greenhouse gas emissions are calculated for both electricity and natural gas consumption for
all sectors in Mendota Heights (Figure 9). Mendota Heights’ energy-related greenhouse gas
emissions in 2023 amounted to almost 79,000 metric tons of carbon dioxide equivalent
(MTCO2e). Mendota Heights’ residential sector accounts for 46% of energy-related greenhouse
gas emissions. Emissions have decreased by 4% between 2021 and 2023, with an increase in
only the municipal sector. Figure 10 breaks down the 2023 energy-related emissions by sector
and fuel type. The largest proportion of emissions (31%) comes from natural gas in the
residential sector, and in total, the residential sector generated 46% of Mendota Heights’
energy-related greenhouse emissions while the commercial sector generated 54% of the
emissions. Natural gas consumption made up the largest proportion of total emissions, adding
up to 59% of all energy-related emissions. The proportion of energy-related emissions from
natural gas is expected to increase over time as grid decarbonization results in cleaner
electricity.
Figure 9. Energy-related greenhouse gas emissions, 2021–2023
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Mendota Heights Energy Action Plan 16
Figure 10. Energy-related greenhouse gas emissions by sector and fuel type, 2023
Renewable Energy
Mendota Heights residents and businesses use subscription programs and on-site options to
support renewable energy (Table 2 and Table 3). In Mendota Heights, most renewable energy
support is in the residential sector, where 521 residents receive renewable energy through
subscription programs for a combined total of 3.6 million kWh. 86 residents have on-site solar
installations. Fewer commercial and industrial customers participate in renewable energy
offerings than residents, with 26 renewable energy program subscribers totaling 11.2 million
kWh and 16 on-site installations. Across both residential and business premises, the total
renewable energy subscribed is equivalent to almost 12% of total electricity consumption, which
is equivalent to taking 1,466 gas-powered cars off the road for a year4. The total excludes
generation from on-site solar because those installations are “behind the meter” – that is, on the
customer’s side of the utility meter. Overall, there is potential to increase renewable energy use
in Mendota Heights.
4 Source: EPA, https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
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Mendota Heights Energy Action Plan 17
Table 2. Xcel Energy subscription renewable energy program support, 2023
Residential Commercial &
Industrial Total Renewable*Connect® &
Renewable*Connect Flex®5
Subscriber Count 318 1 319
Total Annual Electricity Subscribed
(kWh) 1,327,967 1,672,376 3,000,343
Community Solar Gardens –
Solar*Rewards® Community
Subscriber Count 203 25 228
Total Annual Electricity Subscribed
(kWh) 2,276,067 9,499,458 11,775,525
Total Xcel Energy Subscription
Renewable Energy Support
Subscriber Count 521 26 547
Total Annual Electricity Subscribed
(kWh) 3,604,034 11,171,834 14,775,868
Percent of Sector Xcel Energy
Electricity Use 7.6% 14.0% 11.6%
Table 3. Xcel Energy on-site solar program support, 20236
On-site Solar – Solar*Rewards® and
Net-Metering Residential Commercial &
Industrial Total
Participant Count 86 16 102
Total Electricity Capacity (kW) 811 740 1551
5 The Windsource® program is now called Renewable*Connect Flex®
6 Source: Xcel Energy Community Energy Report for Mendota Heights, 2023
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Mendota Heights Energy Action Plan 18
Energy Efficiency Program Participation & Savings
Both residents and commercial and industrial premises participate in Xcel Energy’s efficiency
programs where they can receive rebates for upgrading equipment, arrange a building audit to
understand their efficiency opportunities or manage their demand through rate savings
programs. Participation in these programs results in energy savings for participants. Mendota
Heights’ residents and commercial and industrial premises saved an annual average of 1.7
million kWh and 93,000 therms during the baseline period by participating in Xcel Energy’s
efficiency programs (Table 4).
Table 4. Average annual program participation and energy savings, 2021–2023
Program Sector Average Annual
Participation
Average Electricity
Savings (kWh)
Average Natural Gas
Savings (therms)
Residential 629 141,093 46,512
Commercial &
Industrial
57 1,520,599 46,698
Total 686 1,661,692 93,210
Mendota Heights residents and businesses rely on a few key programs from Xcel Energy to
help them improve efficiency (Table 5 and Table 6). These tables are sorted by participants,
with the program at the top representing the largest number of participations. The Residential
Heating and Cooling rebate program, where residents receive rebates for upgrading to more
efficient equipment, had the most participants and results in the most savings, but programs like
Refrigerator Recycling, a recycling rebate program, and Home Energy Squad, a home energy
assessment with some equipment installation, also resulted in significant savings. In the
commercial and industrial sector, the Lighting Efficiency and Small Business Lighting programs
that offer audits and rebates for businesses to upgrade to more energy efficient lighting had the
most participants and highest savings. Energy Design Assistance and Energy Efficient Buildings
had lower participation but significant savings.
Table 5. Average annual participation in top residential programs, 2021–2023
Residential Program
Average
Annual
Participation
Average
Electricity
Savings (kWh)
Average Natural Gas
Savings (therms)
Residential Heating &
Cooling
268 80,551 37,174
Refrigerator Recycling 23 21,589 0
Home Energy Squad 23 20,008 781
Insulation Rebate 22 8,631 6,128
Efficient New Home
Construction
3 4,469 982
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Mendota Heights Energy Action Plan 19
Table 6. Average annual participation in top commercial and industrial programs, 2021–2023
Commercial Program
Average
Annual
Participation
Average Electricity
Savings (kWh)
Average Natural
Gas Savings
(therms)
Lighting Efficiency 18 482,954 0
Small Business Lighting 16 318,984 818
Energy Efficient Buildings 3 130,874 1,214
Energy Design Assistance 2 443,202 26,764
Fluid System Optimization 1 118,482 0
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Mendota Heights Energy Action Plan 20
WHERE WE ARE GOING
Energy Vision
During the planning process, the Energy Action Team created a vision statement for this Energy
Action Plan to guide the process and reflect the community’s intentions.
Focus Areas
To achieve the energy vision and community-wide commitment to energy stewardship, the
Energy Action Team identified the following focus areas to prioritize strategies and resources.
These focus areas were chosen to provide a holistic approach to energy stewardship, while
focusing efforts on specific sectors and audiences.
Vision
Mendota Heights is a leader in the transition to a clean energy
future. This plan guides the city, residents and businesses to
take action to increase energy efficiency and use renewable
resources to create a more resilient community.
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Mendota Heights Energy Action Plan 21
Residential Energy Efficiency
Residential Energy Efficiency will focus on encouraging residents conserve energy through
energy efficiency projects, behavior changes and Demand Side Management (DSM) program
participation (DSM programs are voluntary modification of consumer demand for energy through
various methods, including education and financial incentives. DSM aims to encourage
consumers to decrease energy consumption, especially during peak hours, or to shift time-of-
energy use to off-peak periods such as nighttime and weekend.) The residential sector consists
of living quarters for private households, such as single-family homes, duplexes, rentals, and
other housing units.
Business & Municipal Energy Efficiency
Business & Municipal Energy Efficiency will focus on helping businesses and municipal
buildings in Mendota Heights save energy by implementing energy efficient technologies,
weatherizing their buildings and participating in utility programs. The commercial and industrial
sector consists of service-providing facilities, schools, strip malls, office space, health care,
manufacturing and food processing facilities. The municipal sector includes buildings owned
and operated by the City of Mendota Heights like City Hall, fire stations, parks facilities and
others.
Renewable Energy
The Renewable Energy focus area includes options to use both wind and solar energy to power
homes and businesses in Mendota Heights. Renewable energy can be accessed through utility
subscription programs, community solar gardens or on-site solar.
Beneficial Electrification
Beneficial electrification (BE) is the replacement of direct fossil fuel use that results in either
lower costs, reduced emissions or more effective use of the power grid. In practice, this means
replacing fossil fuel-powered appliances like gas water heaters and HVAC equipment with more
efficient versions that run on electricity. This focus area involves helping residents, businesses
and the City to upgrade to efficient electric technologies and take advantage of available
incentives, resources and planning support.
Figure 11. Mendota Heights’ Focus Areas
Residential
Energy
Efficiency
Business &
Municipal
Energy
Efficiency
Renewable
Energy
Beneficial
Electrification
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Mendota Heights Energy Action Plan 22
Goals
The Energy Action Team set an overall goal during the planning process by deciding which
metrics were important to measure and communicate, reviewing the community’s energy
baseline data to discuss ambitions and feasibility, and constructing a timeline to achieve these
goals.
Community-wide Goal
We will measure our success against the community-wide goal, which will guide the actions of
this plan.
Achieving Mendota Heights’ goal will avoid greenhouse gas emissions equivalent to removing
over 2,100 gas-powered cars from the road for a year or the carbon sequestered by 10,500
acres of U.S. forests in one year.7
The total estimated greenhouse gas emissions avoided of 9,000 MTCO2e are calculated from
both energy efficiency and renewable energy program participation in Mendota Heights and grid
decarbonization by Xcel Energy. The cost savings of $1.6 million are calculated from the costs
avoided by participating in energy efficiency programs offered by Xcel Energy. The energy
savings equate to saving 1.7 million kWh in electricity and 93,000 therms in natural gas by
2030.
Energy Action Plan Impact
To visualize the energy savings from the goal, Figure 12 shows the business-as-usual scenario
with the goal impact. The business-as-usual scenario shows what would happen in Mendota
Heights if the city participation trends follow the same pattern as in years past. The navy-blue
wedge shows the impact the Energy Action Plan would have on total energy savings in the
7 U.S. Environmental Protection Agency Greenhouse Gas Equivalencies Calculator,
https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
Our Goal
By 2030, the Mendota Heights community will save an
estimated $1.6 million through energy efficiency projects and
avoid 9,000 MTCO2e of greenhouse gas emissions.
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Mendota Heights Energy Action Plan 23
community. As a result of energy savings, cost savings would also accrue — these are shown in
Figure 13 totaling $1.6 million by 2030. It is important to note that that these are the first-year
cost savings of the energy efficiency improvements, rather than lifetime savings. We cannot
guarantee what the energy savings will be in future years, but this calculation is the most
conservative and we would expect lifetime energy savings to outpace this goal
Figure 12. Energy savings from Energy Action Plan impact through 2030
Figure 13. Cost savings from Energy Action Plan impact by 2030
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Mendota Heights Energy Action Plan 24
Mendota Heights’ goals will also impact energy-related greenhouse gas emissions. The plan will
avoid an additional 26% of greenhouse gas emissions by the end of 2030 compared to
business-as-usual. Greenhouse gas emissions savings are due to both avoided emissions
attributable to participation in energy efficiency programs, as well as reduced emissions from
renewable energy participation. Figure 14 includes only renewable energy programs in which
the customer retains the Renewable Energy Credit (REC) and total kWh can be measured8 for
the purpose of greenhouse gas emissions accounting.
Figure 14. Greenhouse gas emissions savings from energy action plan impact by 2030
8 While some customers who install on-site solar retain the RECs, the data is not available to estimate the
total kWh due to behind-the-meter generation.
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Mendota Heights Energy Action Plan 25
HOW WE ARE GOING TO GET THERE
The following section outlines the implementation work plan, including focus areas, strategies
and tactics to help achieve Mendota Heights’ goals. These initiatives will be a collaboration
between the City of Mendota Heights and Partners in Energy, Xcel Energy and the Energy
Action Team. Each focus area has background information, three to four strategies and specific
tactics describing the actions we will take.
The Energy Action Team, composed of Mendota Heights residents, commission members and
City staff, developed these strategies by considering the unique strengths and abilities of the
Mendota Heights community. As a whole, these strategies are an effort to connect energy
efficiency, renewable energy and electrification to both save energy and reduce carbon
emissions. They offer points of access for businesses and residents at any point on their energy
action journey. Whether someone is considering energy efficiency for the first time or installing
your second bank of solar panels, this plan has something for Mendota Heights community
members.
Strategies
Residential Energy Efficiency
1.Create outreach campaign to promote residential energy efficiency programs, rebate
information and approved contractors.
2.Showcase local residential energy efficiency projects.
3.Explore sources of funding to support residential energy efficiency and renewable
projects.
Business & Municipal Energy Efficiency
4.Showcase business energy efficiency projects.
5.Partner with area businesses to promote progress to current and prospective Mendota
Heights businesses.
6.Explore a suite of energy efficiency practices for the City of Mendota Heights.
7.Direct business outreach with existing programs.
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Mendota Heights Energy Action Plan 26
Renewable Energy
8.Highlight Mendota Heights solar gardens to lead by example.
9.Explore residential and business funding opportunities for solar projects.
10.Share and educate about existing solar success stories.
Beneficial Electrification
11.Design and execute education and outreach campaign for existing electrification
opportunities.
12.Explore opportunities to connect residents, businesses and the City with funding for
electrification projects.
13.Explore feasibility of incorporating electrification into City practices.
14.Facilitate peer-to-peer learning from residents who have already implemented
electrification measures (EVs, heat pumps, etc.).
Focus Area: Residential Energy Efficiency
As a primarily residential community, Mendota Heights’ energy future is largely in the hands of
the people who live there. Resident team members voiced enthusiasm for taking action and
encouraging their neighbors and community to do the same. While there is already significant
participation in energy efficiency programs in Mendota Heights, there are opportunities for more
residents to save energy. As Table 7: Average annual program participation and energy
savings, 2021–2023Table 7 shows, there are an average of 629 participations per year in
energy efficiency programs, a tiny fraction of Mendota Heights’ overall population.
Table 7: Average annual program participation and energy savings, 2021–2023
Program Sector Average Annual
Participation
Average Electricity
Savings (kWh)
Average Natural Gas
Savings (therms)
Residential 629 141,093 46,512
Commercial &
Industrial 57 1,520,599 46,698
Total 685 1,661,692 93,210
Strategy 1: Create outreach campaign to promote residential energy efficiency programs,
rebate information and approved contractors.
The team noticed that Mendota Heights residents are not broadly aware of energy efficiency
programs, so they wanted to focus on promotion and outreach. This strategy uses a mixture of
pre-existing and new channels to share information on some programs the team felt would be
most useful to the community.
Tactics
1A: Promote energy efficiency via sustainability programs, City social media, neighborhood
groups and the Mendota Heights Natural Resources Commission.
1B: Add energy efficiency information to City website.
1C: Table at Mendota Heights events.
1D: Promote refrigerator recycling as a quick win first step for energy efficiency.
1E: Promote energy assessments as a first step to increasing energy efficiency.
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Mendota Heights Energy Action Plan 27
Strategy 2: Showcase local residential energy efficiency projects.
This plan contains many strategies that highlight existing projects to inspire others. This strategy
leverages the energy efficiency projects that residents have already undertaken, like Home
Energy Squad visits, refrigerator recycling, insulation upgrades and more.
Tactics
2A: Identify residents and businesses that have implemented energy efficiency projects.
2B: Call for citizen-submitted content on energy wins from residents.
2C: Work with neighborhood groups.
Strategy 3: Explore sources of funding to support residential energy efficiency and
renewable projects.
This strategy recognizes that there are currently significant funding opportunities for energy
projects. This strategy leverages the work done on the Energy Action Plan to demonstrate
Mendota Heights’ commitment to energy action, which could be used to win funding.
Tactics
3A: Attend webinars and other resource-sharing opportunities.
3B: Research federal, state and other grant and loan opportunities for these projects.
Focus Area: Business and Municipal Energy Efficiency
There are two main reasons the Energy Action Team adopted this focus area. First, institutions
like businesses and municipalities play a significant role in saving energy in Mendota Heights.
The Energy Action Team noticed that the average business participation in energy saving
programs resulted in large energy savings compared to residential participation. Second, City
staff and team members wanted the City to lead by example. Specifying how the City can help
save energy is part of that theme.
Strategy 4: Showcase business energy efficiency projects.
Like many strategies in the plan, this one seeks to highlight existing projects in the Mendota
Heights community to inspire community members to take action. The strategy also leverages
businesses interest in self-promotion, creating an opportunity for them to be recognized for their
energy saving measures.
Tactics
4A: Call for business-submitted content detailing these projects (e.g., a business owner does
a video or social media walkthrough of their business or is interviewed about their
experience).
4B: Incorporate this content into a business outreach campaign.
Strategy 5: Partner with area businesses to promote progress to current and prospective
Mendota Heights businesses.
This strategy is part of the overall outreach approach to leverage existing connections and
relationships.
Tactics
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Mendota Heights Energy Action Plan 28
5A: Reach out to businesses by tabling at City events where business community will be
present, phone and email to share information about Energy Action Plan and business-related
programs.
5B: Identify businesses with existing sustainability policies.
Strategy 6: Explore a suite of energy efficiency practices for the City of Mendota Heights.
As part of its lead-by-example approach, Mendota Heights will examine multiple energy-saving
programs for City operations. These are non-binding considerations but could lead to both
avoided greenhouse gas emissions and avoided costs. The recent Geothermal Planning Grant
Program from the Department of Commerce could be an early implementation opportunity for
this strategy.
Tactics
6A: Explore a City LED light retrofit.
6B: Consider energy audits for City buildings.
Strategy 7: Conduct direct business outreach with existing communication channels.
This strategy aims to use the existing connections and communications channels that the City
already has with its businesses, incorporating energy efficiency outreach into them. Utilizing
these existing channels presents a low-hanging-fruit opportunity for outreach.
Tactic
7A: Promote business energy efficiency projects to businesses with which City has existing
relationships.
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Mendota Heights Energy Action Plan 29
Focus Area: Renewable Energy
As part of the overall goal of avoiding 9,000 MTCO2e of greenhouse gas emissions, Mendota
Heights will share opportunities for switching to renewable energy. The City of Mendota Heights
is leading by example by subscribing 15 of its premises to community solar gardens. In addition,
residents and businesses are already participating in renewable energy programs, with over 547
subscribers to renewable energy programs in 2023. There is ample room for growth of these
programs in Mendota Heights and encouraging participation in them will be the cornerstone of
this focus area.
Table 8: Xcel Energy subscription renewable energy program support, 2023
Residential Commercial &
Industrial Total Renewable*Connect® &
Renewable*Connect Flex®9
Subscriber Count 318 1 319
Total Annual Electricity Subscribed
(kWh) 1,327,967 1,672,376 3,000,343
Community Solar Gardens –
Solar*Rewards® Community
Subscriber Count 203 25 228
Total Annual Electricity Subscribed
(kWh) 2,276,067 9,499,458 11,775,525
Total Xcel Energy Subscription
Renewable Energy Support
Subscriber Count 521 26 547
Total Annual Electricity Subscribed
(kWh) 3,604,034 11,171,834 14,775,868
Percent of Sector Xcel Energy
Electricity Use 7.6% 14.0% 11.6%
Strategy 8: Highlight Mendota Heights community solar gardens to lead by example.
Mendota Heights would like to inspire other institutions to support renewable energy by
communicating the success of their community solar garden subscriptions.
Tactics
8A: Share information about community solar gardens in City social media, Sustainable
Solutions and newsletters.
8B: Share information about on- and off-site solar options for residents and businesses.
9 The Windsource® program is now called Renewable*Connect Flex®.
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Mendota Heights Energy Action Plan 30
Strategy 9: Explore residential and business funding opportunities for solar projects.
The team identified knowledge of and funding for solar projects as a significant barrier for
Mendota Heights community members. This strategy addresses that barrier by gathering and
sharing information.
Tactics
9A: Identify active solar installers in Mendota Heights.
9B: Research funding opportunities and publish in outreach campaign.
9C: Explore specific sites in Mendota Heights that would be suitable for solar installation.
Strategy 10: Share and educate about existing solar success stories.
Mendota Heights residents and businesses are already getting energy from solar. This strategy
leverages existing success stories to inspire residents and businesses to consider making their
own move to renewable energy.
Tactics
10A: Request citizen-submitted content on solar projects in Mendota Heights.
10B: Roll this content into City newsletter, social media and other promotions.
Focus Area: Beneficial Electrification
Beneficial electrification is the process of switching from fossil fuel energy sources to electric
energy sources, while maintaining current levels of greenhouse gas emissions or reducing
them. Two examples are switching from an internal combustion vehicle to an electric vehicle or
from a natural gas boiler to an air source heat pump, and in both cases getting the electricity
from renewable sources.
The Energy Action Team identified beneficial electrification as a key component of their
community’s energy future. This focus area dovetails with the renewable energy and energy
efficiency focus areas. As Mendota Heights becomes more energy efficient and sources its
energy from renewables, and as Xcel Energy sources more and more of the electrical grid’s
energy from renewable sources, powering appliances with electricity will become the easiest
way to avoid carbon emissions.
Strategy 11: Design and execute education and outreach campaigns for existing
electrification opportunities.
Team members noted that most Mendota Heights community members don’t know much about
electrification and the important role it will play in transitioning to a low-carbon future. This
campaign will focus on education, bringing Mendota Heights residents and businesses up to
speed on how electrification can improve their lives and reduce carbon emissions. It will
emphasize measures like heat pumps, electric water heaters, lawn care equipment and other
electrification measures. It can also work in tandem with the outreach strategies for energy
efficiency and renewable energy.
Tactics
11A: Promote electric lawncare equipment as quick-win electrification measure.
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Mendota Heights Energy Action Plan 31
11B: Connect with neighborhood groups and HOAs to educate and share resources about
electrification. 11C: Meet residents and businesses where they are on their electrification journey.
Strategy 12: Explore opportunities to connect residents, businesses and the City with
funding for electrification projects.
There are significant funding opportunities from the Inflation Reduction Act, the ECO Act, Xcel
Energy and other sources to fund electrification projects. This strategy gives the City a path to
explore these opportunities and connect them to potential projects in Mendota Heights.
Tactics
12A: Research electrification funding opportunities. 12B: Attend webinars and other resource-sharing opportunities. 12C: Incorporate learnings into outreach and education campaign.
Strategy 13: Explore feasibility of incorporating electrification into City practices.
As part of its lead by example ethos, Mendota Heights staff felt it was important to consider how
the City itself might implement electrification in its operations. This strategy offers a set of non-
binding opportunities for staff to do so and opens the door for other electrification paths as staff
see fit.
Tactics
13A: Explore adding EV chargers to municipal buildings and/or public spaces.
13B: Evaluate City fleet for conversion to EVs.
13C: Consider updating City permitting process and development review to include
information on electrification options.
13D: Explore group buy of electrification infrastructure.
Strategy 14: Facilitate peer-to-peer learning from residents who have already
implemented electrification measures (EVs, heat pumps, etc.).
The team included members who had already begun their electrification journey with heat
pumps and electric vehicles. This strategy leverages those and similar experiences in the
Mendota Heights community, relying on resident pride and community members to share
knowledge. This strategy can also fit with similar resident-driven content in the energy efficiency
and renewable strategies.
Tactics
14A: Use City social media to identify residents and businesses who have already installed
electrification measures.
14B: Facilitate sharing these community members’ experiences with electrification in outreach
campaigns.
14C: Consider hosting a workshop for these community members to share their experiences.
14D: Recruit residents who have already installed electrification measures.
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Mendota Heights Energy Action Plan 32
HOW WE STAY ON COURSE
This Energy Action Plan is a living document that is cyclical in nature (Figure 15). Goals and
strategies will be assessed and refined as needed based on data and community staff capacity.
Figure 15: Cycle of Implementation, Measurement and Reporting and Strategy Development
It will be important to evaluate and update strategies throughout implementation to reflect
advancements in technology and new offerings from government entities and Xcel Energy.
Throughout the planning process, we worked to build relationships between City staff and Xcel
Energy staff that will foster the collaboration and cooperation required to successfully navigate
the changing energy landscape.
Project Management and Tracking Progress
Partners in Energy will host regular project management check-in calls with staff to ensure we
stay on course to achieve our strategies.
Partners in Energy will provide biannual progress reports with metrics of success and overall
progress toward goals for Xcel Energy rebates and programs. These reports will be available
publicly and shared with both the community and Energy Action Team. If available, ad hoc
Energy Action
Plan
Implementation
Measurement &
Reporting
Strategy
Development &
Refinement
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Mendota Heights Energy Action Plan 33
participation reports for specific Xcel Energy programs can be provided to measure the success
of campaigns and to determine if we need to change course.
It will be important to let the wider community know how things are progressing and to recognize
the collaborative efforts of those involved in achieving the plan targets. At critical milestones,
Mendota Heights will publish updates on progress, share successes and congratulate participants
and partners.
Energy Action Team Commitment
The Energy Action Team formed to create this plan has contributed an immense amount of time
and effort to this plan. Each member is committed to remaining updated throughout the
implementation period and supporting the plan as they have the capacity and enthusiasm.
Some possible areas of support are:
•Telling their friends, neighbors and networks about the plan.
•Sharing their experiences implementing energy efficiency, renewable energy and
electrification projects with the City and other Mendota Heights residents.
•Choosing a specific strategy from the plan and championing it in their community.
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Mendota Heights Energy Action Plan 34
APPENDIX A: X L R Y’S PAR RS I
ENERGY PLANNING PROCESS
Ab X ’ P
Xcel Energy is an electric and natural gas utility that provides the energy that powers millions of
homes and businesses across eight western and midwestern states. Each community Xcel
Energy serves has its own unique priorities and vision for its energy future. The energy
landscape is dynamically changing with communities leading the way in setting energy and
sustainability goals. To continue to innovatively support their communities, Xcel Energy
launched Partners in Energy in the summer of 2014 as a collaborative resource with tailored
services to complement each community’s vision. The program offerings include support to
develop an energy action plan, tools to help implement the plan and deliver results, and
resources designed to help each community stay informed and achieve their outlined goals.
Partners in Energy Process for Success Resources from Xcel Energy for Implementation
Project
Management
Communication
Assistance and
Resources
Tracking and
Measurement
Celebration
and
Recognition of
Successes
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Mendota Heights Energy Action Plan 35
Plan Development Process
The content of this plan is derived from a series of planning workshops held in the community
with a planning team committed to representing local energy priorities and implementing plan
strategies. The engagement process included a series of five in-person workshops from
February 2024 through August 2024, as well as multiple surveys between workshops.
Figure 16. Mendota Heights Energy Action Team members
Workshop 1: What should Mendota Heights’ energy future look like?
February 2024
The Energy Action Team got to know each other and learned about the Partners in Energy
Process. The team brainstormed what victory would look like if this plan was successful and
used those ideas to create a vision statement for the plan. The team also discussed priorities in
the community that could be possible focus areas, leaning toward using audiences as the focus
areas.
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Mendota Heights Energy Action Plan 36
Figure 17. Team members getting to know each other through a gallery walk activity
Workshop 2: Using energy data to focus our efforts and achieve our vision.
March 2024
The Energy Action Team learned about Mendota Heights baseline energy use through energy
consumption and program participation data. With the baseline data in mind, the team finalized
energy vision for Mendota Heights and confirmed focus areas of residential energy efficiency,
business and municipal energy efficiency, renewable energy, and beneficial electrification. The
team also discussed goal metrics, timeline and ambition level to formulate the community-wide
goal.
Workshop 3: How will we measure success?
May 2024
The team learned about Xcel Energy programs and how historical participation could be used to
model their goals. With knowledge of the programs, the team decided on a bottom-up approach
to model the Mendota Heights community-wide goal and solidified their decision to measure the
goal with energy savings, cost savings and greenhouse gas emissions avoided by 2030.
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Mendota Heights Energy Action Plan 37
Figure 18. Team members deciding goal ambition level
Workshop 4: What are we going to do?
June 2024
Team members worked together in small groups to generate strategy ideas for each focus area
from their unique perspectives and knowledge of Mendota Heights. The team decided how
ambitious they wanted to be with their goal by reviewing two scenarios. The team chose to set a
goal between ambitious and aspirational.
Workshop 5: How are we going to do the work?
August 2024
The team learned about the elements of the Energy Action Plan and the process for providing
feedback, along with reviewing the support that accompanies the plan’s implementation for 8
months. Facilitators shared draft strategies and tactics for each focus area for the team to
review. They prioritized strategies depending on their impact and feasibility and provided more
details on the resources and assets available to make these strategies successful. The team
closed out the workshop and planning process by reflecting on what they had achieved and
sharing what they were taking with them.
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Mendota Heights Energy Action Plan 38
Figure 19. Team members adding tactics and champions to strategies
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Mendota Heights Energy Action Plan 39
APPENDIX B: BASELINE ENERGY ANALYSIS
Data was provided by Xcel Energy for all Mendota Heights premises for 2021–2023. Xcel
Energy provides electric and natural gas service to the community. The data helped the Energy
Action Team understand Mendota Heights’ energy use and opportunities for energy
conservation and renewable energy. Data included in this section establishes a baseline against
which progress toward goals will be compared in the future.
Electricity and Natural Gas Premises
Most Mendota Heights premises are residential. Of the 5,876 distinct premises in Mendota
Heights in 2023, 87% (5,112) are residential, 12.6% (736) are commercial and industrial, and
the remaining 0.5% are municipal buildings (28).
Table 9. Premise counts by sector, 2021–2023
Sector 2021 2022 2023 Average
Residential 5,027 5,042 5,105 5,058
Commercial & Industrial 711 717 724 717
Municipal 27 27 28 27
Total 5,765 5,786 5,857 5,803
Electricity and Natural Gas Consumption and Trends by Sector
On average, the Mendota Heights community consumes 128 million kWh of electricity and 9.1
million therms of natural gas across all sectors per year. Total energy consumption increased by
1.2% over the baseline period, which can be attributed to an increase of 2.3% in natural gas
consumption and small 1% decrease in electricity consumption.
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Mendota Heights Energy Action Plan 40
Table 10. Annual energy consumption by sector and fuel type, 2021–2023
Fuel Type Sector 2021 2022 2023 Average
Electricity
(kWh)
Residential 48,692,561 47,009,242 47,304,869 47,668,891
Commercial &
Industrial
79,029,681 80,895,932 79,150,168 79,691,927
Municipal 542,668 547,664 567,533 552,622
Total 128,264,910 128,452,838 127,022,570 127,913,439
Natural
Gas
(therm)
Residential 4,610,240 5,287,054 4,559,143 4,818,812
Commercial &
Industrial
3,913,468 4,581,676 4,156,238 4,217,127
Municipal 44,565 60,468 51,799 52,277
Total 8,568,273 9,929,198 8,767,180 9,088,217
Total
(MMBtu)
Residential 627,163 689,101 617,319 644,527
Commercial &
Industrial
660,996 734,185 685,684 693,622
Municipal 6,308 7,915 7,116 7,113
Total 1,294,467 1,431,201 1,310,119 1,345,262
Total energy consumption during the baseline period varied in each sector consistent with
variation in weather. Hotter summers (those with more cooling degree days) and colder winters
(those with more heating degree days) had higher energy consumption. For example, of the
three years considered, Mendota Heights’ natural gas consumption was at its highest level in
2022, which was also the coldest year with the most heating degree days.
Table 11. Cooling degree and heating degree days, 2021–2023
2021 2022 2023
Cooling Degree Days 1,184 1,049 1,232
Heating Degree Days 6,731 7,849 6,565
Greenhouse Gas Emissions and Trends
Mendota Heights’ overall energy-related greenhouse gas emissions decreased from 2021–2023
by 4.1%. To calculate Mendota Heights’ energy-related emissions, an “emissions factor” is
used. This emissions factor describes the amount of CO2 emitted per unit of energy (Table 13).
Specifically, the certified emissions factors from Xcel Energy’s Upper Midwest Fuel Mix and a
standard emissions factor for natural gas emissions were used. As Xcel Energy completes third-
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Mendota Heights Energy Action Plan 41
party verification, the emissions factors used during the planning process to estimate
greenhouse gas emissions may change slightly.
Table 12. Energy-related greenhouse gas emissions in MTCO2e, 2021–2023
Fuel Type Sector 2021 2022 2023 Average
Electricity Residential 13,937 13,050 12,016 13,001
Commercial & Industrial 22,620 22,457 20,105 21,727
Municipal 155 152 144 151
Total 36,712 35,659 32,266 34,879
Natural
Gas
Residential 24,467 28,059 24,196 25,574
Commercial & Industrial 20,769 24,315 22,058 22,381
Municipal 237 321 275 277
Total 45,473 52,695 46,528 48,232
Total Residential 38,404 41,109 36,212 38,575
Commercial & Industrial 43,389 46,772 42,163 44,108
Municipal 392 473 419 428
Total 82,185 88,354 78,794 83,111
Table 13. Emissions factors used to calculate energy-related greenhouse gas emissions, 2021–
202310
Fuel Type 2021 2022 2023
Electricity Emissions Factor (lbs/MWh) 631 612 560
Natural Gas Emissions Factor (MTCO2e/Dth) 0.05307 0.05307 0.05307
Energy Costs
In total, Mendota Heights premises spent an annual average of $24.2 million on energy during
the baseline period. Mendota Heights residential premises made up not quite half of that
spending ($11 million or 46%), while commercial and industrial premises made up most of the
other half. A small fraction of the spending was from municipal premises. Residential premises
spent an annual average of $2,180 per premise on fuel costs. Commercial premises spent
much more per premise on energy, with an annual average of $18,150 per premise.
10 Xcel Energy 2022. Carbon Dioxide Emission Intensities.
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Mendota Heights Energy Action Plan 42
Table 14. Annual energy costs by sector and fuel type, 2021–2023
Fuel Type Sector 2021 2022 2023 Average Average
Annual
Cost Per
Premise
Electricity Residential $6,307,345 $6,796,021 $7,182,322 $6,761,896 $1,337
Commercial &
Industrial
$8,606,590 $10,233,476 $10,151,763 $9,663,943 $13,472
Municipal $66,273 $76,558 $78,885 $73,905 $2,704
Total $14,980,208 $17,106,055 $17,412,970 $16,499,744
Natural
Gas
Residential $3,252,283 $5,485,768 $4,057,517 $4,265,189 $843
Commercial &
Industrial
$2,294,262 $4,329,030 $3,444,392 $3,355,895 $4,678
Municipal $24,811 $58,538 $48,684 $44,011 $1,610
Total $5,571,356 $9,873,336 $7,550,593 $7,665,095
Total Residential $9,559,628 $12,281,789 $11,239,839 $11,027,085 $2,180
Commercial &
Industrial
$10,900,852 $14,562,506 $13,596,155 $13,019,838 $18,150
Municipal $91,084 $135,096 $127,569 $117,916 $4,314
Total $20,551,564 $26,979,391 $24,963,563 $24,164,839
Energy Burden
Energy burden is the percentage of income that residents spend on energy. Mendota Heights
residents who own their homes and make 30% or less of the median area income spend up to
10% of their income on energy costs. This group comprises 192 households, 4% of the total
households in the city. Notably, energy burden is higher across almost every income group for
homeowners than renters.
Table 15. Energy burden by unit occupancy and median income11
Energy Burden Household Count
Percent of Area
Median Income Own Rent Own Rent
0–30% 10% 5% 192 140
30–60% 4% 2% 339 311
11 Source: Department of Energy Low-Income Energy Affordability Data Tool
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Mendota Heights Energy Action Plan 43
60–80% 3% 2% 192 166
80–100% 3% 1% 289 158
100%+ 1% 0% 2,592 125
Total 2% 2% 3,604 900
Program Participation and Savings
Mendota Heights already has a significant number of participants in energy efficiency programs
from Xcel Energy, resulting in energy savings for residents and commercial customers. While
fewer commercial and industrial premises participated during the baseline period, their
participation resulted in larger savings per premise. In total, participation in these commercial
programs saved an annual average of 141,093 kWh and 46,512 therms, while participation in
residential programs saved an annual average of 1,520,599 kWh and 46,698 therms.
Table 16. Annual residential sector efficiency program participation and savings, 2021–2023
Residential Sector
Programs
2021 2022 2023
Count Savings
(kWh)
Savings
(therms)
Count Savings
(kWh)
Savings
(therms)
Count Savings
(kWh)
Savings
(therms)
Efficient New Home
Construction
3 6,269 1,381 1 1,390 294 4 5,748 1,271
Home Energy Audit 11 - - 31 - - 41 - -
Home Energy
Savings Program
0 0 0 1 0 17 2 635 0
Home Energy Squad 13 9,343 402 28 24,584 1,012 28 26,097 928
HomeSmart 33 - - 48 - - 47 - -
Insulation Rebate 31 4,666 9,546 15 1,320 3,276 21 19,908 5,561
Low-Income Home
Energy Squad
2 1,047 76 1 1,256 47 4 4,979 312
Refrigerator
Recycling
22 19,534 - 34 34,882 -- 13 10,351 -
Residential Heating &
Cooling
301 101,289 30,280 251 69,205 39,933 252 71,159 41,310
Residential Saver's
Switch
13 20 - 235 255 - 33 38 -
Smart Thermostat 92 4,536 2,495 94 1,474 550 180 2,962 165
Whole Home
Efficiency
0 0 0 1 333 679 0 0 0
Total 521 146,704 44,180 740 134,699 45,808 625 141,877 49,547
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Mendota Heights Energy Action Plan 44
Table 17. Annual commercial/industrial sector efficiency program participation and savings,
2020–2022
Commercial
Sector Programs 2020 2021 2022
Count
Savings
(kWh)
Savings
(therms) Count
Savings
(kWh)
Savings
(therms) Count
Savings
(kWh)
Savings
(therms)
Business Energy
Assessments
0 - - 0 - - 1 - -
Efficiency
Controls
1 1 0 0 0 0 0 0 0
Electric Rate
Savings
4 -14,248 - 0 0 - 5 -64 -
Energy Design
Assistance
5 1,329,605 80,293 0 0 0 0 0 0
Energy Efficient
Buildings
5 286,852 0 0 0 0 3 105,769 3,643
Fluid System
Optimization
0 0 - 0 0 - 3 355,446 -
Foodservice
Equipment
1 0 4,732 2 0 11,869 1 0 2,724
HVAC+R
Efficiency
12 43,189 13,840 4 393 5,903 12 30,773 14,110
Lighting
Efficiency
17 459,339 - 21 888,141 - 15 101,381 -
Multi-Family
Building
Efficiency
0 0 0 0 0 0 2 18,239 527
Saver's Switch
for Business
0 0 - 1 1 - 4 28 -
Small Business
Lighting
13 214,997 1,080 15 207,615 1,373 20 534,340 0
Turn Key
Services
1 - - 2 - - 0 - -
Total 59 2,319,735 99,945 45 1,096,150 19,145 66 1,145,912 21,004
Renewable Energy Support
There is support for renewable energy in Mendota Heights with 521 residential premises and 26
commercial/industrial premises (15 of which are owned by the City of Mendota Heights itself)
subscribing to Xcel Energy renewable programs. These premises respectively receive a total of
3.6 million kWh and 11.2 kWh of their electricity from renewable sources. Furthermore, 86
residential premises and 16 commercial premises have on-site solar generation.
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Mendota Heights Energy Action Plan 45
Table 18. Xcel Energy subscription renewable energy program support, 2023
Residential Commercial & Industrial Renewable*Connect® & Renewable*Connect
Flex®12
Subscriber Count 318 1
Total Annual Electricity Subscribed (kWh) 1,327,967 1,672,376
Community Solar Gardens – Solar*Rewards®
Community
Subscriber Count 203 25
Total Annual Electricity Subscribed (kWh) 2,276,067 9,499,458
Total Xcel Energy Subscription Renewable
Energy Support
Subscriber Count 521 26
Total Annual Electricity Subscribed (kWh) 3,604,034 11,171,834
Percent of Sector Xcel Energy Electricity Use 7.6% 14.0%
Table 19. Xcel Energy on-site solar program support, 202313
Residential Commercial & Industrial On-site Solar – Solar*Rewards® and Net-Metering
Participant Count 86 16
Total Electricity Capacity (kW) 811 740
12 The Windsource® program is now called Renewable*Connect Flex®.
13 Source: Xcel Energy Community Energy Report for Mendota Heights, 2023
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Mendota Heights Energy Action Plan 46
APPENDIX C: METHODOLOGY FOR
MEASURING SUCCESS
As part of implementation support, Partners in Energy will provide biannual progress reports for
Xcel Energy participation and savings data for Mendota Heights. All goals will be measured
against Mendota Heights’ three-year baseline of 2021–2023 data unless otherwise noted.
The following section defines the three-year baseline against which progress is measured,
including Xcel Energy program(s) included in the baseline.
Community-Wide Goal
This goal assumes a business-as-usual (BAU) savings scenarios based on the three-year
baseline. The community-wide goal will be measured comparing cumulative greenhouse gas
emissions, estimated dollars saved and energy savings equivalencies for electricity and natural
gas savings for all sectors between 2025 and 2030 against the estimated BAU value for the
same time period. This goal includes current and future Xcel Energy efficiency programs and
measures the first-year savings data the utility provides.
Our Goal
By 2030, the Mendota Heights community will save an
estimated $1.6 million through energy efficiency projects and
avoid 9,000 MTCO2e of greenhouse gas emissions.
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Mendota Heights Energy Action Plan 47
Table 20. Cumulative savings for Mendota Heights' goals
BAU, 2025–2030 Goal, 2025–2030
Natural Gas Savings (therms) 559,566 797,707
Electricity Savings (kWh) 9,988,390 12,467,545
Greenhouse Gas Emissions Savings
(MTCO2e) 7,079 8,947
Cost Savings $ 1,257,143 $ 1,638,741
To calculate energy savings, Partners in Energy will analyze data provided by Xcel Energy that
summarizes the energy savings by program participant.
To calculate greenhouse gas emissions, Partners in Energy will use preliminary and certified
emissions factors from Xcel Energy’s Upper Midwest Fuel Mix. Partners in Energy will use
energy savings by sector and fuel type to calculate estimated dollars saved in the community.
To meet Mendota Heights’ goal, the community will need to save more electricity and natural
gas annually than the BAU scenario. Table 21 below identifies the annual energy savings
targets needed to stay on track to meet the goal.
Table 21. Annual energy savings targets
BAU Annual Target
Through 2030
Natural Gas Savings (therms) 93,261 132,951
Electricity Savings (kWh) 1,664,732 2,077,924
Cost Savings $209,524 $273,123
Focus Area Goals
Residential Energy Efficiency Goals
•Save 1,173,465 kWh and 409,960 therms by 2030 (230 kWh and 80 therms per
premise)
•Save 2,348 MTCO2e of greenhouse gas emissions by 2030 (.46 MTCO2e per premise
•Save $427,773 in residential energy costs by 2030 ($84 per premise)
This goal will be measured by comparing actual program participation against the BAU
scenario. Progress will be measured from January 2025 through December 2030. Table 22
identifies annual program participation targets for select programs to meet this goal. These
targets are based on select Xcel Energy programs. If Xcel Energy offers new residential
efficiency rebate programs, they will be included in this calculation at the discretion of the
Mendota Heights team and Partners in Energy.
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Mendota Heights Energy Action Plan 48
Table 22. Residential energy efficiency focus area annual and cumulative participation targets
by program
BAU Annual
Participation
Annual Target
Cumulative
Target,
2025–2030
Xcel Energy Programs Total 586 756 4,537
Home Energy Audit 28 42 249
Home Energy Squad 23 35 207
Insulation Rebate 22 34 201
Residential Heating & Cooling 268 402 2,412
Other programs 245 245 1,468
Business & Municipal Energy Efficiency Goals
• Save 11,294,080 kWh and 387,747 therms by 2030
• Save 3,716 MTCO2e of greenhouse gas emissions by 2030
• Save $1,210,968 in business energy costs by 2030
This goal will be measured by comparing actual program participation against the BAU
scenario. Progress will be measured from January 2025 through December 2030. Table 23
identifies annual program participation targets for select programs to meet this goal. These
targets are based on select Xcel Energy programs. If Xcel Energy offers new commercial and
industrial efficiency rebate programs, they will be included in this calculation at the discretion of
the Mendota Heights team and Partners in Energy.
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Mendota Heights Energy Action Plan 49
Table 23. Business energy efficiency focus area annual and cumulative participation targets by
program
BAU Annual
Participation Annual Target
Cumulative
Target,
2025–2030
Xcel Energy Programs Total 62 82 461
Business Energy Assessments 0 1 6
Energy Design Assistance 2 3 15
HVAC +R Efficiency Rollup 9 14 81
Lighting Efficiency14 18 27 133
Multi-Family Building Efficiency15 1 1 6
Small Business Lighting16 16 24 120
Other programs 17 17 100
Renewable Energy Goals
•Utilize 94 million kWh of renewable energy through Solar*Rewards Community,
Renewable*Connect® and Renewable*Connect Flex® from 2025–2030.
•Avoid 2,883 MTCO2e of greenhouse gas emissions through Renewable*Connect® and
Renewable*Connect Flex® from 2025–2030.
•Increase renewable energy program participation by 3% annually, reaching 693
residents and 47 businesses from 2025–2030. Here, we make the assumption that all
participants who subscribed to a renewable energy program prior to 2025 will continue to
subscribe.
This goal will measure program participation by sector in Xcel Energy’s renewable energy
programs. Xcel Energy offers two programs, Renewable*Connect Flex® and
Renewable*Connect®, in which customers retain the Renewable Energy Credit (REC)
meaning they can be counted toward the goal. Residents can subscribe to community solar
gardens, Solar*Rewards Community, in which Xcel Energy retains the REC, so this is not
counted toward the goal. Finally, there are two programs for on-site solar, Solar*Rewards
and Net Metering. In the latter, the customer retains the REC, but due to data limitations, we
cannot estimate the kWh subscription or emissions savings from these programs. Table 24
identifies the total participation targets for the renewable energy programs.
14 Modeled participation for Lighting Efficiency declines from 27 to 18 in 2027 to account for market
saturation.
15 Average annual baseline participation for Multi-Family Business Efficiency was 2/3, meaning that there
were two participations in three years, between 2021 and 2023. It is rounded to 1 in the table for the BAU
annual participation, but in the model it is projected to increase to 1 for each year.
16 Modeled participation for Small Business Lighting declines from 2 4 to 16 in 2027 to account for market
saturation.
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Mendota Heights Energy Action Plan 50
Table 24. Renewable energy focus area participation targets by sector
Program Sector BAU
Participation 2030 Goal
Xcel Energy Programs Total Total 629 740
Renewable*Connect Flex® and
Renewable*Connect®
Residential 318 375
Commercial 1 1
Solar*Rewards Community Residential 211 249
Commercial 25 27
On-site Solar Residential 58 68
Commercial 16 19
Beneficial Electrification Goal
•10 participants annually in Xcel Energy’s efficient fuel switching programs
Beginning in 2024, Xcel Energy offered rebates for replacing natural gas equipment with an
electric option as part of their Efficient Fuel Switching programs. These rebates are for
equipment such as an air source heat pump heating system and a heat pump water heater.
Because the program is new, Mendota Heights baseline data is not yet available to determine
an appropriate goal level for beneficial electrification participation. Thus, the decision was made
to start with the goal of 10 participants annually. As more data becomes available, the Mendota
Heights team and Partners in Energy can revisit this goal to determine whether it needs to be
adjusted.
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Mendota Heights Energy Action Plan 51
APPENDIX D: GLOSSARY OF TERMS
4 x 50: Xcel Energy’s privacy rule, which requires all data summary statistics to contain at least
four premises, with no single premise responsible for more than 50% of the total. Following
these rules, if a premise(s) is responsible for more than 50% of the total for that data set, it
is/they are removed from the summary.
Beneficial electrification (BE) is the replacement of direct fossil fuel use that results in either
lower costs, reduced emissions, or more effective use of the power grid.
British Thermal Unit (BTU): The amount of heat needed to raise one pound of water at
maximum density through one degree Fahrenheit.
Carbon-free: Carbon-free refers to sources of energy that will not emit additional carbon
dioxide into the air. Wind, solar and nuclear energy are all carbon free sources but only wind
and solar are renewable.
Carbon-neutral: Carbon-neutral, also described as “net zero”, could include carbon-free
sources but is broader and refers to energy that removes or avoids as much carbon dioxide as
is released over a set period of time. Carbon-neutral is sometimes used to describe a site that
produces an excess amount of electricity from a renewable energy source, such as solar,
compared to what it consumes. That excess energy is put back into the grid in an amount that
offsets the carbon dioxide produced from the electricity it draws from the grid when it is not
producing renewable energy.
Community Data Mapping: A baseline analysis of energy data in a geospatial (map) format
across the community.
Decatherm (Dth): Quantity of energy that is equivalent to ten therms.
Demand Side Management (DSM): Modification of consumer demand for energy through
various methods, including education and financial incentives. DSM aims to encourage
consumers to decrease energy consumption, especially during peak hours, or to shift time-of-
energy use to off-peak periods such as nighttime and weekend.
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Mendota Heights Energy Action Plan 52
Direct Installation: Free energy-saving equipment installed by Xcel Energy or other
organization, for program participants, that produces immediate energy savings.
Energy Conservation and Optimization Programs (ECO): Portfolio of approved utility energy
efficiency and demand management programs. Minnesota electric utilities have a goal of saving
1.5% of their total energy sales each year via customer conservation efforts. Minnesota natural
gas utilities have a goal of saving 0.5% of their total energy sales each year via customer
conservation efforts. ECO programs help Minnesota households and businesses use electricity
and natural gas more efficiently, lessening the need for new utility infrastructure. The Minnesota
Department of Commerce, Division of Energy Resources (DER) oversees ECO to ensure that
ratepayer dollars are used effectively in achieving those goals and that energy savings are
reported as accurately as possible.
Energy Burden: Percentage of gross household income spent on energy costs.
Energy Reduction: The result of behavior changes that cause less energy to be used. For
example, setting the thermostat to a lower temperature reduces the energy used in your home
during the winter. Since energy reductions can be easily reversed, they are not accounted for
when calculating changes in energy usage.
Energy Savings: Comes from a permanent change that results in using less energy to achieve
the same results. A new furnace uses X% less energy to keep your home at the same
temperature (all things being equal), resulting in energy savings of X%. For accounting
purposes, energy savings are only counted in the year the new equipment is installed.
Greenhouse Gases (GHG): Gases in the atmosphere that absorb and emit radiation and
significantly contribute to climate change. The primary greenhouse gases in the earth's
atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone.
Grid Decarbonization: The current planned reduction in the carbon intensity of electricity
provided by electric utilities through the addition of low- or no-carbon energy sources to the
electricity grid.
Kilowatt-hour (kWh): A unit of electricity consumption.
Million British Thermal Units (MMBtu): A unit of energy consumption that allows electricity
and natural gas consumption to be combined.
Metric Tons of Carbon Dioxide Equivalent (MTCO2e): A unit of measure for greenhouse gas
emissions. The unit "CO2e" represents an amount of a greenhouse gas whose atmospheric
impact has been standardized to that of one unit mass of carbon dioxide (CO2), based on the
global warming potential (GWP) of the gas.
Megawatt (MW): A unit of electric power equal to 1 million watts.
Premise: A unique combination of service address and meter. For residential customers, this is
the equivalent of an individual house or dwelling unit in a multi-tenant building. For business
customers, it is an individual business, or for a larger business, a separately-metered portion of
the business’s load at that address.
Renewable Energy Certificate (REC): For every megawatt-hour of clean, renewable electricity
generation, a renewable energy certificate (REC) is created. A REC embodies all of the
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Mendota Heights Energy Action Plan 53
environmental attributes of the generation and can be tracked and traded separately from the
underlying electricity. Also known as a Renewable Energy Credit.
Resilience: The ability to prepare for and adapt to changing conditions and withstand and
recover rapidly from disruptions. Resilience includes the ability to withstand and recover from
deliberate attacks, accidents, or naturally occurring threats or incidents.
Recommissioning: An energy efficiency service focused on identifying ways that existing
building systems can be tuned up to run as efficiently as possible.
Solar Garden: Shared solar array with grid-connected subscribers who receive bill credits for
their subscriptions.
Solar Photovoltaic (PV): Solar cells/panels that convert sunlight into electricity (convert light, or
photons, into electricity, or voltage).
Subscription: An agreement to purchase a certain amount of something in regular intervals.
Therm (thm or therm): A unit of natural gas consumption.
Trade Partner: Trade Partners, also known as Trade Allies or Business Trade Partners, are
vendors and contractors who work with business and residential customers servicing, installing,
and providing consulting services regarding the equipment associated with utility rebate
programs. Their support for utility programs can range from providing equipment and assisting
with rebate paperwork, to receiving rebates for equipment sold.
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_____________________________________________________City Council Work Session Memo
MEETING DATE: November 19, 2024
TO:Mayor, City Council and City Administrator
FROM: Sarah Madden, Community
Development Manager
SUBJECT: Continued Cannabis Ordinance Discussion
ACTION REQUEST:
No formal action is required. Staff is seeking further direction from the City Council on the Cannabis
Ordinance.
BACKGROUND:
The Minnesota Legislature enacted new State Law at the end of the 2023 legislative session, amended in 2024,
that legalizes the possession, use, manufacturing, and sale of certain cannabis products within the State. The
Law also establishes the Office of Cannabis Management (OCM) to oversee the implementation and regulation
of the adult-use cannabis market, the medical cannabis market, and the consumer hemp industry. The statute
limited the regulations a city can place on the use, sale and production of cannabis and cannabis products. In
mid-June, the OCM released “A Guide for Local Governments on Adult-Use Cannabis”, which includes a model
ordinance used as a basis for the proposed draft of Mendota Heights’ Cannabis Business Ordinance.
The new law limits a City’s ability to regulate cannabis and hemp businesses. In the areas of the statute where
local governments are permitted to incorporate regulations of cannabis businesses, the scope of that
regulation is restrictive and highly specific.
The City Council was provided a copy of the OCM’s guide for local governments as part of the October 15th
City Council work session agenda packet, and the Council held a discussion over the topic and model
ordinance standards at the October 30th City Council regular meeting.
Title 3: Business and License Regulations – Registration Ordinance and Regulatory Standards
As the City Council is aware, local governments have the authority to adopt a registration ordinance requiring a
cannabis microbusiness, cannabis mezzobusiness, cannabis retailer, medical cannabis combination business, or
lower-potency hemp edible retailer with a license from OCM to initially and annually register with the city. To
obtain a registration from the city, the ordinance may require: payment of a fee (half of the license fee
established by Statute 342.11 up to $500 initially and $1000 annually), compliance with the requirements of
Minn. Stat. Ch. 342, and to be current on all property taxes and assessments. If a city adopts a registration
ordinance, the city may limit the number of licensed cannabis retailers, cannabis mezzobusinesses and cannabis
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2.b
microbusinesses to no fewer than one registration for every 12,500 residents. This is based on the Minnesota
State Demographer numbers. Staff had recommended that the City Council adopt a registration ordinance in
line with the OCM’s model ordinance. This registration is not a licensing function of the City. Licensing of
cannabis businesses will be conducted by the OCM. Once the administrative rules are in effect, currently
anticipated mid-2025, licensing of cannabis businesses will commence.
A draft ordinance has been prepared which is consistent with the OCM model ordinance which was discussed
at the October 30th meeting. It is included as an attachment to this report. In this draft ordinance, the
registration, administration, buffer standards, and public event regulations have all been placed into Title 3:
Business and License Regulations. As currently proposed, the only amendments to the Zoning Title (Title 12)
will be updates to the use chart.
The State Law allows Mendota Heights to prohibit a cannabis business within 1,000 feet of a school or 500 feet
of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors,
including playgrounds and athletic fields. The City may also impose a prohibition on a cannabis business within
500 feet of another cannabis business. These are the maximum specified buffers, a lessor or no buffer is also
allowed. Based on the discussion on October 30th, the proposed draft imposes the maximum buffers.
The City will need to decide what registration fee, if any, it will charge. Staff recommends imposing the
maximum fee amount given the uncertainty of staff work associated with the registration. Fees can be adjusted
in the future once there is more familiarity with the process. The table below shows the maximum amount for
an initial registration fee and renewal registration fee for retail businesses and includes the amount the state
charges for a license, for reference.
Business Initial Renewal
Cannabis Retailer City (optional) - $500; State - $2,500 City (Optional) - $1,000; State - $5,000
Lower Potency Hemp Retailer City (Optional) $125; State - $250 City (Optional) - $125; State - $250
Medical Cannabis Combination
Business
City (Optional) - $500; State - $20,000 City (Optional) - $1,000; State - $70,000
Cannabis Mezzobusiness City (Optional) - $500; State - $5,000 City (Optional) - $1,000; State - $10,000
Cannabis Microbusiness City (Optional) - $0; State - $0 City (Optional) - $1,000; State - $2,000
One performance standard discussed at the October 30th meeting is the hours of operation for cannabis
retailers. The State Law establishes that retail sales are prohibited between 2:00 a.m. and 8:00 a.m. Monday
through Saturday and between 2:00 a.m. and 10:00 a.m. on Sunday. The City may prohibit retail sales of
cannabis between 9:00 p.m. and 2:00 a.m. the following day and/or between 8:00 a.m. and 10:00 a.m. Monday
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through Saturday. In other words, the most restrictive hours of sales could be 10:00 a.m. to 9:00 p.m. Monday
through Sunday. For comparison, Off-sale Liquor sales are allowed on Sundays, between 11:00 a.m. and 6:00
p.m.; Monday-Saturday, from 8:00 a.m. to 10:00 p.m.; and not on Thanksgiving or Christmas Day; and only
between 8:00 a.m. and 8:00 p.m. on Christmas Eve. The City should decide the allowable hours of cannabis
retail sales. It was directed at the October 30th meeting that the hours of operation be consistent with liquor or
tobacco sales. This has been reflected in the draft ordinance.
One area where the City may institute regulations for cannabis businesses is in the context of a temporary
cannabis event. A temporary cannabis event is a gathering organized by a licensed cannabis event organizer
that may last for no more than four days. The process for these event should generally follow the normal
process for handling similar events, but the City could choose to require additional standards for temporary
cannabis events, such as prohibiting on-site consumption, limiting the hours or the events, etc. In general, the
City only conducts a permitting process for special events when they are conducted within parks. Consumption
of cannabis is prohibited within parks, in addition to all forms of smoking. This ordinance is already in effect.
The model ordinance provisions for temporary cannabis events have been included in the proposed draft, with
some performance standards imposed, such as a setback from Residentially zoned property and a prohibition
on on-site consumption. If the City follows this model ordinance, an additional event permit application will
need to be created.
Title 12: Zoning Ordinance – Use Chart
The state law creates license types which will be issued by the OCM. The City should incorporate the land uses
into their current zoning to accommodate the language of the state law. The City may not prohibit the
establishment or operation of a licensed cannabis business. There will be 13 license types, however they can be
generalized into the following categories:
• Retail Sales – Sales of cannabis and cannabis products directly to consumers.
• Cultivation – The planting, growing, harvesting, drying, curing, grading, or trimming of cannabis plants,
cannabis flower, hemp plants, or hemp plant parts.
• Wholesale – Purchases from a business growing or manufacturing cannabis or cannabis products and sells to
a cannabis business engaged in retail.
• Manufacturing – Turns raw, dried cannabis and cannabis parts into other types of cannabis products, e.g.
edibles or topicals.
• Testing - Obtains and tests immature cannabis plants and seedlings, cannabis, cannabis products, and hemp
products.
• Transportation – Transports products from one license type to another.
• Delivery – Transports products to the end consumer.
• Events – A business that organizes temporary events (lasting no longer than four days).
Note: Certain license types enable multiple activity types, for example, Micro and Mezzo businesses may include
cultivation, manufacturing, and/or retail sales.
The City must decide which zones cannabis and hemp businesses will be allowed to operate in. This was
discussed at the October 30th meeting. The staff recommendation is to allow cannabis-based retail businesses
to be allowed in similar zoning categories as those of tobacco sales or liquor stores. The City Council discussed
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the option of allowing cannabis retailers to be a listed use in business and commercial zoning districts, but to
omit the use within the Mixed Use zoning district. This is an option available to the City and can be revised if
the Council would like to make that determination. As currently drafted, the proposed ordinance would allow
retail-based cannabis businesses within all commercial zoning districts, including Mixed Use, as a Conditional
Use.
Use Type Cannabis Business Type Proposed Zoning District
Warehouse or Manufacturing •Cannabis microbusiness
•Cannabis mezzobusiness
•Cannabis cultivator
•Cannabis manufacturer
•Cannabis wholesaler
•Cannabis testing facility
•Lower-Potency Hemp
Edible Manufacturer
•I – Industrial as a
Conditional Use
Retail •Cannabis retailer
•Lower-potency hemp
edible retailer
•B-1 General Business, B-2
Neighborhood Business,
MU-Mixed Use; as a
Conditional Use
•B-1 General business, B-2
Neighborhood Business,
MU-Mixed Use; as
Permitted Use
The City Council will hear a brief presentation on the proposed ordinance at the November 19th Work Session.
Staff is seeking direction on any suggested revisions to the ordinance as presented. The Planning Commission
will hold a public hearing at their November 26th regular meeting on the zoning use chart portion of the
drafted ordinance. Following the public hearing, the City Council will be presented the ordinance again at their
December 3rd regular meeting.
ATTACHMENTS:
1. Proposed Cannabis Ordinance, dated 11/14/24
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CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
ORDINANCE NO. 596
AMENDING TITLE 3: BUSINESS AND LICENSE REGULATIONS AND TITLE 12: ZONING
TO REGULATE CANNABIS BUSINESSES
The City Council of the City of Mendota Heights does ordain:
Section 1. City Code Title 3 – BUSINESS AND LICENSE REGULATIONS is hereby amended to add
Chapter 8: CANNABIS REGISTRATION as follows:
3-8-1: PURPOSE AND SCOPE:
The purpose of this ordinance is to implement the provisions of Minnesota Statutes, Chapter 342, which
authorizes the City of Mendota Heights to protect the public health, safety, and welfare of Mendota
Heights residents by regulating cannabis businesses within the legal boundaries of Mendota Heights.
3-8-2: DEFINTIONS
Unless otherwise noted in this section, words and phrases contained in Minn. Stat. 342.01 and the rules
promulgated pursuant to any of these acts, shall have the same meanings in this ordinance.
CANNABIS BUSINESS: A business licensed by the Office of Cannabis Management (OCM) as defined
by Minnesota Statute 342.01 Subd. 14.
CANNABIS CULTIVATION or CULTIVATE CANNABIS: Growing cannabis plants from seed or
immature plant to mature plant, harvest cannabis flower from mature plant, package and label immature
plants and seedlings and cannabis flower for sale to other cannabis businesses, transport cannabis flower
to a cannabis manufacturer located on the same premises, and perform other actions approved by the
OCM.
CANNABIS CULTIVATOR: A cannabis business licensed to cultivate cannabis and packages cannabis
for sale to another cannabis business.
CANNABIS EVENT: A temporary cannabis event lasting no more than four days operating pursuant to
Minnesota Statute 342.39.
CANNABIS MANUFACTURER: A cannabis business that makes cannabis and/or hemp concentrate,
manufactures artificially derived cannabinoids, adult-use cannabis products, lower-potency hemp edibles,
and/or hemp-derived consumer products, and sells cannabis concentrate, hemp concentrate, artificially
derived cannabinoids, cannabis products, lower-potency hemp edibles, hemp-derived consumer products
to other cannabis businesses pursuant to Minnesota Statute Section 342.31.
CANNABIS MEZZOBUSINESS: A cannabis business that grows cannabis plants from seed or immature
plant to mature plant, harvests the cannabis flower from a mature plant, makes cannabis and/or hemp
concentrate, manufactures artificially derived cannabinoids, adult-use cannabis products, lower-potency
hemp edibles, and/or hemp-derived consumer products, and sells immature cannabis plants and seedlings,
adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived
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consumer products, and other products authorized by law to other cannabis businesses and to consumers
pursuant to Minnesota Statute Section 342.29.
CANNABIS MICROBUSINESS: A cannabis business that grows cannabis plants from seed or immature
plant to mature plant, harvests the cannabis flower from a mature plant, makes cannabis and/or hemp
concentrate, manufactures artificially derived cannabinoids, adult-use cannabis products, lower-potency
hemp edibles, and/or hemp-derived consumer products, and sells immature cannabis plants and seedlings,
adult-use cannabis flower, adult-use cannabis products, lower-potency hemp edibles, hemp-derived
consumer products, and other products authorized by law to other cannabis businesses and to consumers,
including on-site consumption, pursuant to Minnesota Statute Section 342.28.
CANNABIS RETAIL BUSINESSES: A retail location and the retail location(s) of a mezzobusinesses
with a retail operations endorsement, microbusinesses with a retail operations endorsement, medical
combination businesses operating a retail location, and lower-potency hemp edible retailers.
CANNABIS RETAILER: Any person, partnership, firm, corporation, or association, foreign or domestic,
selling cannabis product to a consumer and not for the purpose of resale in any form.
CANNABIS TESTING FACILITY: A cannabis business that obtains and tests immature cannabis plants
and seedlings, cannabis flower, cannabis products, hemp plant parts, hemp concentrate, artificially
derived cannabinoids, lower-potency hemp edibles, and hemp-derived consumer products from cannabis
microbusinesses, cannabis mezzobusinesses, cannabis cultivators, cannabis manufacturers, cannabis
wholesalers, lower-potency hemp edible manufacturers, and industrial hemp growers pursuant to
Minnesota Statute Section 342.37.
CANNABIS WHOLESALER: A cannabis business that sells immature cannabis plants and seedlings,
cannabis flower, cannabis products, lower-potency hemp edibles, and hemp-derived consumer products to
cannabis microbusinesses, cannabis mezzobusinesses, cannabis manufacturers, and cannabis retailers
pursuant to Minnesota Statute Section 342.33.
DAYCARE: A location licensed with the Minnesota Department of Human Services to provide the care
of a child in a residence outside the child's own home for gain or otherwise, on a regular basis, for any
part of a 24-hour day.
LOWER-POTENCY HEMP EDIBLE MANUFACTURER: A business that manufactures and packages
lower-potency hemp edibles for consumer sale, and/or sells hemp concentrate and lower-potency hemp
edibles to other cannabis businesses and hemp businesses.
LOWER-POTENCY HEMP EDIBLE RETAILER: A business that sells lower-potency hemp edibles to
customers.
OFFICE OF CANNABIS MANAGEMENT: Minnesota Office of Cannabis Management, referred to as
“OCM” in this ordinance.
PLACE OF PUBLIC ACCOMMODATION: A business, accommodation, refreshment, entertainment,
recreation, or transportation facility of any kind, whether licensed or not, whose goods, services, facilities,
privileges, advantages or accommodations are extended, offered, sold, or otherwise made available to the
public.
PRELIMINARY LICENSE APPROVAL: OCM pre-approval for a cannabis business license for
applicants who qualify under Minn. Stat. 342.17.
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PUBLIC PLACE: A public park or trail, public street or sidewalk; any enclosed, indoor area used by the
general public, including, but not limited to, restaurants; bars; any other food or liquor establishment;
hospitals; nursing homes; auditoriums; arenas; gyms; meeting rooms; common areas of rental apartment
buildings, and other places of public accommodation.
RESIDENTIAL TREATMENT FACILITY: As defined under Minn. Stat. 245.462 subd. 23.
RETAIL REGISTRATION: An approved registration issued by the (insert local here) to a state licensed
cannabis retail business.
SCHOOL: A public school as defined under Minn. Stat. 120A.05 or a nonpublic school that must meet
the reporting requirements under Minn. Stat. 120A.24.
STATE LICENSE: An approved license issued by the State of Minnesota’s Office of Cannabis
Management to a cannabis retail business.
3-8-3: ADMINISTRATION
The City Administrator or their designee is responsible for the administration and enforcement of this
ordinance. Any violation of the provisions of this ordinance or failure to comply with any of its
requirements constitutes a misdemeanor and is punishable as defined by law. Violations of this ordinance
can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance.
3-8-4: REGISTRATION OF A CANNABIS BUSINESS
A. Consent to registering of Cannabis Businesses
1. No individual or entity may operate a state-licensed cannabis retail business within Mendota
Heights without first registering with the City of Mendota Heights.
2. Any state-licensed cannabis retail business that sells to a customer or patient without valid
retail registration shall incur a civil penalty of (up to $2,000) for each violation.
3. Notwithstanding the foregoing provisions, the state shall not issue a license to any
cannabis business to operate in Indian country, as defined in United States Code, title 18,
section 1151, of a Minnesota Tribal government without the consent of the Tribal
government.
B. Compliance Checks Prior to Retail Registration
1. Prior to issuance of a cannabis retail business registration, Mendota Heights (shall/shall not)
conduct a preliminary compliance check to ensure compliance with local ordinances.
2. Pursuant to Minn. Stat. 342, within 30 days of receiving a copy of a state license application
from OCM, the City of Mendota Heights shall certify on a form provided by OCM whether a
proposed cannabis retail business complies with local zoning ordinances and, if applicable,
whether the proposed business complies with the state fire code and building code.
C. Registration and Application Procedure
1. Fees
a) The City of Mendota Heights shall not charge an application fee.
b) A registration fee, as established in the City of Mendota Height’s fee schedule, shall
be charged to applicants depending on the type of retail business license applied for.
c) An initial registration fee shall not exceed $500 or half the amount of an initial state
license fee under Minn. Stat. 342.11, whichever is less. The initial registration fee
shall include the initial retail registration fee and the first annual renewal fee.
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d) Any renewal retail registration fee imposed by the City shall be charged at the time of
the second renewal and each subsequent renewal thereafter.
e) A renewal retail registration fee shall not exceed $1,000 or half the amount of a
renewal state license fee under Minn. Stat. 342.11, whichever is less.
f) A medical combination business operating an adult-use retail location may only be
charged a single registration fee, not to exceed the lesser of a single retail registration
fee, defined under this section, of the adult-use retail business.
2. Application Submittal
The City shall issue a retail registration to a state-licensed cannabis retail business that
adheres to the requirements of Minn. Stat. 342.22
a) An applicant for a retail registration shall fill out an application form, as provided by
the City. Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
iii. The address and parcel ID for the property which the retail registration is
sought;
iv. Certification that the applicant complies with the requirements of local
ordinances established pursuant to Minn. Stat. 342.13.
b) The applicant shall include with the form:
i. the registration fee as required in [Section 2.3.1];
ii. a copy of a valid state license or written notice of OCM license preapproval;
c) Once an application is considered complete, the City Administrator or their designee
shall inform the applicant as such, process the application fees, and forward the
application to the City Clerk for approval or denial.
d) The application fee shall be non-refundable once processed.
3. Application Approval
a) A state-licensed cannabis retail business application shall not be approved if the
cannabis retail business would exceed the maximum number of registered cannabis
retail businesses permitted under Section 3-8-4(F)1 of this ordinance.
b) A state-licensed cannabis retail business application shall not be approved or renewed
if the applicant is unable to meet the requirements of this ordinance.
c) A state-licensed cannabis retail business application that meets the requirements of
this ordinance shall be approved.
4. Annual Compliance Checks
a) The City shall complete at minimum one compliance check per calendar year of
every cannabis business to assess if the business meets age verification requirements,
as required under [Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24] and this
ordinance.
b) The City shall conduct at minimum one unannounced age verification compliance
check at least once per calendar year.
c) Age verification compliance checks shall involve persons at least 17 years of age but
under the age of 21 who, with the prior written consent of a parent or guardian if the
person is under the age of 18, attempt to purchase adult-use cannabis flower, adult-
use cannabis products, lower-potency hemp edibles, or hemp-derived consumer
products under the direct supervision of a law enforcement officer or an employee of
the local unit of government.
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d) Any failures under this section must be reported to the Office of Cannabis
Management.
5. Location Change
A state-licensed cannabis retail business shall be required to submit a new application for registration
under Section 2.3.2 if it seeks to move to a new location still within the legal boundaries of the City of
Mendota Heights.
Or;
If a state-licensed cannabis retail business seeks to move to a new location still within the legal
boundaries of Mendota Heights, it shall notify the City of the proposed location change, and submit
necessary information to meet all the criteria in this paragraph.
D. Renewal of Registration
1. Renewal Process
a) The City shall renew an annual registration of a state-licensed cannabis retail business at
the same time OCM renews the cannabis retail business’ license.
b) A state-licensed cannabis retail business shall apply to renew registration on a form
established by the City.
c) A cannabis retail registration issued under this ordinance shall not be transferred.
2. Renewal Fees
a) The (insert local here) may charge a renewal fee for the registration starting at the second
renewal, as established in (insert local here)’s fee schedule.
3. Renewal Application
a) The application for renewal of a retail registration shall include, but is not limited to
i. Items required under Section 3-8-4(C)2 of this Ordinance.
E. Suspension of Registration
1. When Suspension is Warranted
a) The City of Mendota Heights may suspend a cannabis retail business’s registration if it
violates the ordinance of the City or poses an immediate threat to the health or safety of
the public. The City shall immediately notify the cannabis retail business in writing the
grounds for the suspension.
2. Notification to OCM
a) The City shall immediately notify the OCM in writing the grounds for the suspension.
OCM will provide the City and cannabis business retailer a response to the complaint
within seven calendar days and perform any necessary inspections within 30 calendar
days.
3. Length of Suspension
a) The suspension of a cannabis retail business registration may be for up to 30 calendar
days, unless OCM suspends the license for a longer period. The business may not make
sales to customers if their registration is suspended.
4. Civil Penalties
a) Subject to Minn. Stat. 342.22, subd. 5(e) the City may impose a civil penalty, as specified
in the City of Mendota Heights’s Fee Schedule, for registration violations, not to exceed
$2,000.
F. Limiting of Registrations
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1. The City shall limit the number of cannabis retail businesses to no fewer than one registration
for every 12,500 residents within the City of Mendota Heights. The City shall limit the
number of cannabis retail businesses to one (1).
3-8-5: REQUIREMENTS FOR A CANNABIS BUSINESS
A. Minimum Buffer Requirements
1. No cannabis business shall be located or operated within 500 feet of an existing lawful
cannabis business.
2. No cannabis business shall be located or operated within 500 feet of an existing daycare,
residential treatment facility, or an attraction within a public park that is regularly used by
minors, including a playground or athletic field.
3. No cannabis business shall be located or operated within 1000 feet of a school.
4. Pursuant to Minn. Stat. 462.357 subd. 1e, nothing in Section 3-8-5(A) shall prohibit an active
cannabis business or a cannabis business seeking registration from continuing operation at the
same site if a daycare, residential treatment facility, attraction within a public park that is
regularly used by minors, or school moves within the minimum buffer zone.
B. Zoning and Land Use
1. A cannabis business licensed or endorsed by the OCM may be permitted as a use on a
property within the City of Mendota Heights in accordance with Title 12: Zoning, Chapter 3:
Allowed Uses, Table 12-3B-1.1 Table of Uses
C. Hours of Operation
1. Cannabis businesses are limited to retail sale of cannabis, cannabis flower, cannabis products,
lower-potency hemp edibles, or hemp-derived consumer products between the hours of 8:00
a.m. and 10:00 p.m. on Monday-Saturday; and between the hours of 10:00 a.m. and 9:00 p.m.
on Sundays.
3-8-6 TEMPORARY CANNABIS EVENTS
A. License or Permit Required for Temporary Cannabis Events
1. License Required: A license or permit is required to be issued and approved by the City prior
to holding a Temporary Cannabis Event.
2. Registration and Application Procedure: A registration fee, as established in the City’s fee
schedule, shall be charged to applicants for Temporary Cannabis Events.
3. Application Submittal and Review: The City shall require an application for Temporary
Cannabis Events.
a) An applicant for a retail registration shall fill out an application form, as provided by the
City. Said form shall include, but is not limited to:
i. Full name of the property owner and applicant;
ii. Address, email address, and telephone number of the applicant;
b) The applicant shall include with the form:
i. The application fee as required in Section 3-8-6(A)2;
ii. A copy of the OCM cannabis event license application, submitted pursuant to
342.39 subd. 2.
c) The application shall be submitted to the City Administrator or their designee for review.
If the designee determines that a submitted application is incomplete, they shall return the
application to the applicant with the notice of deficiencies.
d) Once an application is considered complete, the designee shall inform the applicant as
such, process the application fees, and forward the application to the (insert
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staff/department, or elected body that will approve or deny the request) for approval or
denial.
e) The application fee shall be non-refundable once processed.
f) The application for a license for a Temporary Cannabis Event shall meet the following
standards:
i. Outdoor consumption or use of cannabis at or on the property of a temporary
cannabis event is prohibited.
ii. The setback from any property line of any residential use or residential zoned
property shall be no less than 350 feet.
iii. The event may last no longer than four (4) days (96 hours)
iv. The event shall operate in accordance with all applicable requirements for
temporary cannabis events under Minn. Stat., Chapter 342.
g) A request for a Temporary Cannabis Event that meets the requirements of this Section
shall be approved.
h) A request for a Temporary Cannabis Event that does not meet the requirements of this
Section shall be denied. The City shall notify the applicant of the standards not met and
basis for denial
3-8-7: SEVERABILITY
In the event that a court of competent jurisdiction adjudges any part of this chapter to be invalid, such
judgement shall not affect any other provision of this chapter not specifically included within the
judgement.
Section 2. City Code Title 3 – ZONING is hereby amended to modify Chapter 3: ALLOWED USES ,
Table 12-3B-1.1 Table of Uses as follows:
COMMERCIAL/BUSINESS USES
Land Use RE R-1 R-2 R-3 MU B-1 B-2 I Use Specific Section
Cannabis Retailer CUP CUP CUP 3-8-1
Lower-potency hemp
edible retailer
P P P 3-8-1
INDUSTRIAL, TRANSPORTATION & UTILITY USES
Land Use RE R-1 R-2 R-3 MU B-1 B-2 I Use Specific Section
Cannabis microbusiness,
cannabis mezzobusiness,
cannabis cultivator,
cannabis manufacturer,
cannabis wholesaler,
cannabis testing facility,
lower-potency hemp
edible manufacturer
CUP 3-8-1
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2.c
City Council Work Session Memo
MEETING DATE: November 19, 2024
TO: Mayor, City Council and City Administrator
FROM: Cheryl Jacobson, City Administrator
SUBJECT: City Hall - Police Station Visioning
ACTION REQUEST:
As we begin the initial planning stages for the design and construction of a new City Hall and
Police Station, it is essential that we align this project with a clear vision that reflects the
community’s needs and values. To ensure that the final design and functionality meet the
expectations of the Council and residents, Chief McCarthy and I are requesting your input on
what key elements you believe should be incorporated into a municipal campus.
The City Council will be asked to share their vision for a future Police Department/City Hall
building. The intent of the discussion is to hear the council's high-level ideas or concepts for
a future municipal campus, that includes the police station and city hall in one building.
BACKGROUND:
Key Considerations for Input:
1.Community Accessibility and Engagement:
How should the new facilities foster community interaction and accessibility? What
features should be considered to ensure inclusivity and ease of use for all residents?
2.Sustainability and Environmental Responsibility:
Are there specific sustainability initiatives (e.g., LEED certification, solar panels, green
spaces, EV charging) that the Council would like to prioritize in this project?
3.Safety and Security:
What are the critical security features and modern technologies that should be included
to support the safety of staff, the city council and the public?
4.Space and Functionality:
What are your thoughts on the layout and space allocation for city services, public
meeting rooms, or additional amenities (e.g., community spaces, training rooms, shared
use areas, a single story or two story building)?
5.Future Growth and Adaptability:
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How should we plan for potential future expansions or changes in services that may
require flexibility in the building’s design?
6.Budget and Cost Efficiency:
Are there specific budgetary priorities or cost-saving measures the city council would
recommend as we develop our project plan?
ATTACHMENTS:
None
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