So that's after this.

Okay, thanks.

Good afternoon.

Welcome to the regular meeting of the Climate and Infrastructure Committee for November 13, 2025.

I'm Katie Cashman, chair of this committee.

Before we convene our meeting, we have a presentation of an honorary resolution.

Our resolution today recognizes the city staff and the contractors who worked on the design

and construction of hennepin avenue south in uptown which just reopened so i'll invite

council members who are excited about this new street and our public work staff to join me

to present this resolution

All right.

Welcome.

Welcome everyone.

So our resolution today recognizes city staff and contractors that worked on the design and construction of Hennepin Avenue South.

Whereas the Minneapolis Public Works Department is being recognized for the incredible work they have done over the past seven years to plan and construct the new Hennepin Avenue corridor.

And whereas through years of robust community engagement, the public works collaborated to find a design that would meet the needs of as many community members as possible, as well as reduce the high rates of deadly crashes on the street.

And whereas over 100 people who work for the city were part of making this redesign possible, and each one deserves our gratitude today.

And whereas in order to ensure reliable and continuous delivery of high quality safe drinking water and public fire protection, staff from the Division of Water Treatment and Distribution Services relocated 21 hydrants at improved pedestrian crossings and transit stops, replaced 25 lead service lines within the project limits, closely managed the water main relocations and improvements necessary to accommodate electrical infrastructure and stormwater improvements at 15

intersections, rebuilt 20 original 1880s vintage brick maintenance holes to protect the integrity

of the new roadway, and replaced nine water main isolation valves.

And whereas in order to create a safe, equitable, efficient transportation corridor for all travel

modes, the reconstruction of Hennepin Avenue included a narrower roadway that will promote

slower speeds and shorter pedestrian crossings, two new signalized pedestrian crossings, a two-way

off-street bike facility to promote bike accessibility and safety, dynamic transit

priority lanes, BRT stations, and transit signal priority along the corridor. Dynamic or dedicated

left-turn lanes and a better managed system with fewer conflict points to promote safety,

10 fully rebuilt traffic signals with ADA compliant ramps and accessible pedestrian push buttons,

and 100 new street lights plus festoon decorative lighting.

And whereas in order to keep our surface water as clean as possible and reduce flooding following rain events,

surface waters and sewers and project staff installed 11 bioswells, 26 stormwater planter boxes,

23 tree trenches, 10 infiltration box culverts, approximately 1.2 miles of stormwater pipe,

and a small ramp leaving the tree trenches to let wildlife go in and out.

Whereas to improve the experience of rolling, walking, biking, and riding transit on Hennepin

Avenue, the project includes wider sidewalks with enhanced landscaping placed with increased

separation from vehicle traffic, shortened crossing distances at crosswalks, and a raised

median to allow for easier crossing. 1.11 miles of protected bikeway, improving connections to the

all ages and ability bikeway network, including 26th and 28th Street, Bryant Avenue, Franklin

Avenue, and the Midtown Greenway, making bicycling through one of the busiest areas in Minneapolis

safer for residents on their way to the lakes shopping, dining out, going to a show, or passing

through. Creating a roadway that highlights the Metro E line which will be

open in a couple weeks here. A $64 million investment in fast frequent

transit that will increase bus trips available to and from uptown by 20 to 30

percent. Supporting the city's mode shift goal to three out of every five trips

taken by walking, biking, or transit. And whereas Hennepin Avenue is home to

to hundreds of locally owned businesses

that make Uptown the unique neighborhood

it is in our city.

And whereas Prince once wrote of Uptown,

now where I come from,

we don't let society tell us how it's supposed to be.

Our clothes, our hair, we don't care.

It's all about being there.

Everyone's going Uptown, that's where I wanna be.

Further emphasizing the magic and importance

of Hennepin Avenue as a cultural hub

for creativity and expression.

And whereas we love Hennepin Avenue

and we're grateful that it's back and open

and ready for the public to enjoy to the fullest.

Now therefore be it resolved that the mayor

and city council do hereby recognize November 13th, 2025

as Hennepin Avenue day in Minneapolis.

So thank you everyone.

When I found out that there were over a hundred city staff

that were involved in this project from a start to finish,

I was really blown away.

So wanted to take an opportunity to congratulate you,

celebrate you and just thank you for making such a huge generally

generational investment in safety and sustainability for not only at the

uptown area but the entire city so thank you so much for being here today

Kathleen or anyone would you like to make a couple remarks Adam maybe

thank you councilmember Don Elwood the director of transportation engineering

design I'm going to face the team first off thank you personally and

professionally since 2018 you've been working on this project that's a long

time and I remember what we were working on coming out of 2018 and you you kept

working through this project good times and bad times now we've reached the point

and thank you for this resolution it celebrates a major milestone a major

accomplishment for all of you that have worked on this project I know looking

ahead some of us are going to miss miss going out day to day working on the

construction project but at the same time looking ahead what a great corridor

this has turned out to be it's beautiful it functions better it looks nice and

it's really a transformative for this entire for this entire city so thank you

so much for the work that you did I wish you all the best of luck working with me

in the future on the next big project because I'm looking forward to them as

well so thank you again personally and professionally for all the work you do

all right with that Molly will come up and grab a quick photo just go ahead and

get between these black lines here if so we might need to do two rows so

everyone can fit in between the two black lines here

All right, say hi to me.

Thank you.

Congrats.

All right, so before we call the meeting to order, I want to offer a friendly reminder

to all members, staff, and the public

that these meetings are broadcast live

to enable greater public participation.

These broadcasts include real-time captioning

to increase the accessibility of our proceedings,

so we ask all speakers to moderate the speed

and the clarity of their comments.

Thank you so much.

At this time, I'll ask the clerk to call the roll

to verify a quorum.

Councilmember Rainville?

Present.

Vita?

Present.

Osman?

Is absent.

chavez president vice chair koski president chair cashman present we have five present let the

record reflect we have a quorum and for members of the public if you're here for the public hearing

please make sure to sign up with clerk michael and all committee members we will be using speaker

management today so we'll start with our consent agenda items one through four item one is

authorizing subordinate funding agreement with the Met Council for local

work design and costs associated with the blue line extension project.

Item two is a resolution amending the 2025 capital improvement appropriation

resolution to authorize the closure and appropriation adjustments for capital

projects and programs. Item three is authorizing a cooperative agreement with

hennepin county for the cedar avenue reconstruction project item four is authorizing a utility easement

agreement with the park board for storm sewer and storm water basins in the columbia golf course

item five is authorizing a joint powers agreement with the park board related to parkway paving

repair and construction item six is a resolution updating the electric vehicle charging rates

as part of the ev spot network pilot project and incorporating these fees in the parking and

mobility fee schedule colleagues is there any discussion or items that you would like to pull

for further discussion

Seeing none, I'll move approval of all items.

All those in favor, say aye.

Aye.

Those opposed, say nay.

Any abstentions?

The motion carries.

So our next items are the public hearings.

So our first public hearing is related to the First Avenue South reconstruction project,

and I'll invite staff to briefly speak to this before we open the public hearing.

Good afternoon, Chair and members of the committee.

My name is Mohamed Omar.

I am an engineer with the Transportation, Engineering, and Design Division of Public Works.

Today I am here presenting for the public hearing

for First Avenue Reconstruction City Project 2347.

The proposed project will reconstruct approximately

one half mile of First Avenue South

between Grant Street and Franklin Avenue.

The project is a reconstruction project

involving the entire right of way

and will include new sidewalks,

ADA compliant pedestrian ramps behind the curb,

bicycle accommodations, new pavement, curb and gutter,

and utility improvements.

The project will also include signal improvements

and new signage, pavement markings,

and stormwater management infrastructure.

The total anticipated project cost is $11,540,000.

The total reconstruction assessment is $637,767.

That is based on the 2026 uniform assessment rates

and the influence area method.

The rates are as follow, $3.20 per square foot

for non-residential properties,

$1.12 per square foot for residential properties.

These assessments are payable over a 20-year period.

The rest of the funding sources are municipal state aid,

value capture, and storm sewer funds.

The city staff has conducted numerous outreach activities

throughout the planning and design of this project.

A virtual pre-assessment meeting to provide an overview

of the project, discuss planned improvements, and answer any questions related to the assessment

method and process was held on November 6th.

Today Public Works is asking City Council to pass resolution ordering the work to proceed

adopting the special assessments, authorizing sale of the assessment bonds, and removal

of areaways in conflict with the project.

That concludes my presentation.

I will stand by for questions.

Great.

Thank you for the presentation.

I'll now proceed to open the public hearing and uh clerk Michael is correct all of these are for a

different item correct correct madam chair there are no members of the public signed up for the

first avenue public hearing is anyone here to speak on the first avenue reconstruction project

seeing none I will close the public hearing and ask if there's anyone who would like to speak on

item council member osman also welcome and will note your attendance for the record as well yes

thank you yeah thank you i i do have a question i know this a project has been have been for a

while and the streets had been wrecked like it was really uh difficult for folks to go through

cars i did submit uh email to uh director tim section uh what is the condition right now has

Has it been, is it still the same?

Because there was a construction that was undone.

That was just making it unsafe for folks to get around.

I do have pictures that I share with the director.

Just wondering, what is the status of this area right now?

Yeah, I'm not sure if the part south of Franklin is already completed.

I think it looks great, but I'm not sure if it's fully done yet.

I'm talking about Franklin.

You're talking north, the new section.

First Avenue, Franklin, all the way to Grant.

That area, there was, during the summer, the entire summer,

there was construction was happening there,

and it was like unfinished work, let's just say that.

That was residents were complaining about.

Yeah.

Good afternoon, Chair Cashman, Councilman Osman.

Oli Marisimer, Principal Professional Engineer

in Transportation Engineering and Design.

I think I believe that what you're referring to councilman Osman was the

City Water Department was out doing lead service line replacements earlier this

year north of Franklin I think that's what we're talking about and I think

that that work has been done it's been in the it has been restored out there

and there was there were some barricades out when they were doing that

work and that sort of stuff sound like it lasted for for a while yeah for a

long time I do want to ask you about the the parking has there been any parking

that has been removed from that area during this winter time it does get a

little bit of narrow I know right now cars are parking somewhere in the middle

of the road but well the bikes are going on this side of it so what does that

look like yeah chair Cashman councilmember Osmond I believe that there

There's been no changes in the current parking situation

out there.

I believe that probably during the construction

of the water work, there was some temporary parking

that was disrupted to accommodate that work.

Okay, yeah, no, great.

I moved this item for approval,

but I do wanna say that I think it's a result

to be a relief to see the work being done there.

Thank you so much.

All right, with the motion for approval by Council Member Osmond, all those in favor say aye.

Aye.

Aye.

Those opposed, say nay.

Any abstentions?

That motion carries.

Okay, thank you.

Yeah, this is.

All right.

Our next public hearing is on the Cedar Avenue Reconstruction Project,

and we'll invite staff for a brief presentation before the public hearing.

Good afternoon, Chair Cashman and members of the committee.

My name is Spencer Everett.

I'm an engineer with the Transportation, Engineering, and Design Division of Public Works.

Today I'm here presenting for the public hearing for the Cedar Avenue Reconstruction Project,

City Project number 2370.

The county-led project consists of reconstructing three-quarters of a mile of Cedar Avenue

between 24th Street East and Lake Street East.

Elements to be included as a part of the project include full removal of the existing roadway, new sidewalks, a bicycle facility, ADA-compliant pedestrian ramps, boulevards, new pavement, curb and gutter, street lighting, signal upgrades, medians, green stormwater infrastructure, and utility improvements.

The project will also include new signage and new pavement markings.

The total anticipated project cost is $17,596,038, with approximately $4,250,000 being the city's portion.

The total street reconstruction assessment is $828,170.32.

This was calculated based on the 2026 uniform assessment rates and the influence area method.

This method outlines $3.20 per square foot for non-residential properties and $1.12 per square foot for residential properties.

These assessments are payable over a 20-year period.

The rest of the local funding comes from approximately $3,360,752 in net debt bonds.

city and county staff have conducted numerous outreach activities throughout the planning and

design of the project a virtual informational meeting to provide an overview of the project

discuss planned improvements and answer any questions related to the assessment method

and process was held on november 10th 2025 with zero attendees today public works is asking the

city council to pass resolutions ordering the work to proceed adopting the special assessments

authorizing sale of assessment bonds,

and authorizing abandonment and removal of areaways

in conflict with the project.

That concludes my presentation,

and I will stand by for questions.

Thank you.

All right.

Thank you for the presentation.

I'm going to proceed to open the public hearing

and check if anyone signed up.

I believe we don't have anyone signed up

for this public hearing.

Is there anyone here who wishes to speak

on this Cedar Avenue reconstruction?

Seeing none, I will close the public hearing and ask if there are any committee members

who have any questions or comments on this project.

With that, I will move approval.

All those in favor say aye.

Aye.

Those opposed say nay.

Any abstentions?

That motion carries.

Thank you.

And our next public hearing is on Lowry Avenue Northeast Reconstruction Project.

So welcome staff to begin the presentation.

Good afternoon, Chair and members of the committee.

My name is Alabel Mahari.

I am a senior project engineer with the Transportation Engineering and Design Division of Public Works.

Can you please move a little closer to the microphone?

Thank you.

Today, I'm here to present the Lowry Avenue Phase II Reconstruction Project,

City Project Number 2361, CPV074.

The proposed county-led project will reconstruct 0.74 miles of Lowry Avenue between Marshall

Street Northeast and Washington Street Northeast.

The work includes full removal of the existing roadway, new ADA pedestrian ramps, sidewalks,

facility, new pavement, new carbon cover, wider boulevard, street lightings, and utility

improvements. It will also include new signage and pavement markings. The total anticipated

project cost is $14,388,153.16, with the city cost participation estimated at $2,421,000.

The total street reconstruction assessment is $871,039.23.

This is based on the 2026 uniform assessment rates.

The rates are $3.20 per square foot

for non-residential properties

and $1.12 per square foot for residential properties.

These assessments are payable over a 20-year period.

The rest of the funding sources are net debt bonds.

The city and county staff have conducted numerous community outreach during planning

and design of the project.

A virtual pre-assessment meeting was held on November 5th to provide an overview of

the project, discuss plan improvements and answer any questions about the assessment

method and process.

Today Public Works asking the City Council to pass resolution, ordering the work to proceed,

adopting the special assessments and authorizing the sale of the assessment funds and authorizing

the abandonment and removal of the area was in conflict with the project.

That concludes my presentation.

I will stand by for any questions.

MS.

Thank you for the presentation.

We will now open the public hearing on this item.

Is there anyone who has signed up?

Madam Chair, there are no members of the public signed up for this.

MS.

anyone here who wants to speak on the Lowry Avenue Northeast Phase II

reconstruction? Please come forward.

Please state your name and you have two minutes. My name is Abdi Fatah Abdi.

When I am speaking on behalf of a number of the organization center, I want to thank you

for the opportunity to speak in today.

Our organization has been deeply affected by the recent construction between the Marshall

Street and the Washington.

The costs associated with this project have placed a heavy financial burden on us.

One that simply cannot afford at this time.

We are a small number of us dedicated for serving our community providing essential

programs and serving that make a real difference in the people to live.

Because of that, I am respectfully asking the Council to consider waiving the construction

and totaling more than $70,000.

Your support will help us continue to work and we do every day to uplift and support

our neighbors.

Thank you so much for the time you serve.

We really consider to look at the burden of the construction to evaluate, to reduce or

waive for the number of organizations.

It is really considered that we close when the construction starts January.

It simply means that the center will be closed.

On top of that, the construction costs us almost close to $100,000.

As we see in this documentation that we receive from the mail.

So we just wanted to acknowledge you that the center is already have difficulties.

On top of that, that we see that it is not improvement that the value of the house, no

one owned it.

Thank you for your testimony. If you have additional comments, you can submit them in writing to the clerks as well.

Okay, thank you.

Is there anyone else here to speak on this item?

Seeing none, I will close the public hearing and first recognize Council Member Rainville.

Thank you. So in response to the last speaker, is there someone from staff that could explain?

I have two issues, but could someone explain how these costs can be mitigated?

Because they can go on the tax bill, right?

And be yearly.

They're not due all at once.

Good afternoon, Chair Cashman, members of the committee.

My name is Paul Keating.

I'm a management analyst in the Transportation Engineering Design Division of Public Works.

The special assessments will be collected through the taxes

over a 20-year period with interest set by the finance department.

The only option for deferment would be available to non-residential,

I mean for residential properties.

There is no option for non-residential properties.

Thank you. Appreciate that.

And then the second question I have is,

do we have a timeline for when construction will start and be finished?

I thought I heard January.

Is that when it's going to start in the winter?

Chair Cashman, Council Member Rainville, I'm Kelly Augusto.

I'm a senior professional engineer with Hennepin County,

working on the design of Lowery Avenue Phase 2.

And our construction timeline is that we're staging it over the course of two construction seasons.

The first portion will begin in 2026, about April or May, weather dependent between 4th and Washington Street.

And the next stage of construction will be in 2027 between Marshall and 3rd.

Thank you.

Thank you.

Next I'll recognize Councilmember Osmond.

Just to follow up the last comments for our speaker,

I know that it will be 20 years,

but is it 70,000 that he's talking about

the entire block or is it just the

building that he's referring to?

I'd have to review the individual parcels that were included.

It may be multiple parcels.

I would need to consult with our assessment roles

to answer that specifically.

Yeah, I can see how difficult it could be for a nonprofit to pay $70,000.

It doesn't matter how much you extend it with interest.

That is a little challenging for organizations that are trying to survive,

and especially when you bring this kind of magnitude

constructions in the area, businesses close

and businesses lose customers.

So I can see why that's difficult for those individuals.

So the total amount is $871,000.

I believe that's correct.

Okay, okay.

Councilman Osman, would you like to note this question

for the administrator to follow up?

Yeah, it would be helpful to know if one building is responsible $70,000 of construction.

Okay.

We'll note that for the clerk to follow up on so that we can better understand the amount that the speaker in the public hearing was referring to.

Chair Cashman, if I may, the uniform assessment rate and the influence area method is how all of these assessments are calculated.

So however large the parcel is, is going to determine how substantial the special assessment is.

So it's going to be uniform throughout the city, throughout every reconstruction project that we do.

And you also did say that residents have some kind of way of, but not the non-residential or commercial or residential?

That's correct, Councilmember Osmond.

There's a deferment option for residential properties that are homesteaded with other certain specific criteria, but for non-residential parcels, there is no deferment process.

Thank you.

I have one more question as well, either for you or for the project staff from Hennepin County.

Just looking at the map of construction, there's a section just east of the river and then over to Washington,

but there's a gap in between University

and 4th Street Northeast.

Did that work already get done in phase one?

And that's why it's not included here in phase two?

Chair Cashman, committee members,

Kelly Augusto with Hennepin County.

The reason for the gap in the county project

around the University Avenue intersection

is that a portion of that is included

in MnDOT's University Avenue project,

including a block on Lowry Avenue east and west

of the University Avenue intersection.

Okay, and when is that project, that MnDOT project,

set to be under construction?

Set to start in 2027 and also be staged

over likely multiple construction seasons.

So county staff and city staff and MnDOT staff

are all coordinating these projects together

to understand how they can be staged.

Yep, okay, thank you.

Yeah, I understand it's a lot for Northeast.

Many, many projects that will be happening

at the same time in this area,

and it's really important to the council

that the work group gets stood up for the city, county,

and state to work together on staging

to minimize the impacts to the extent possible

to the residents and businesses.

Is there anyone else who wishes to speak on this item?

All right, I will move approval.

All those in favor say aye.

Aye.

Those opposed say nay.

Any abstentions?

That motion carries.

So now we are moving on to our last item,

our public hearing on gas and electric franchise fee

ordinances.

And I just want to note that we have, I think,

over 50 people signed up.

And so normally we would have a two minute clock,

but because we don't have enough time with that many people

signed up, we're going to reduce the amount to 60 seconds.

So one minute for each speaker.

It will be too difficult for, I think it's over 50

at this point, and we appreciate you being here.

And so the other option too is if your comments do go over

that you'll be more than welcome to submit them

in writing to the clerk to be included

in entirety in the public record.

So thank you for your accommodation on that.

So as we are getting settled in here, I will invite Luke Hollenkamp and Jocelyn Bremer

to begin the presentation before we open the public hearing.

Welcome.

Not sure if we can hear you.

Okay.

I'm working now.

Great.

Chair Cashman, members of the C&I Committee, my name is Jocelyn Bremer and I am a Senior

Assistant Attorney with the City Attorney's Office.

I along with City staff are presenting today at Chair Cashman's request on Council Members

Cashman, Koskys and Chugtys collectively the author and Council Members proposed Franchise

Fee Ordinance Amendments.

First, I'd like to begin with a brief background and overview of the utility franchise agreements

to set the stage for the Franchise Fee Ordinance Amendments.

The city has legal authority under Minnesota Statute 216B.36

to enter into franchise agreements with its utility providers.

This statute also permits the city to charge franchise fees to raise revenue,

defray municipal costs as a result of utility operations, or both.

These franchise fees are considered pass-through costs

as the utilities pass the cost of the franchise fees to their customers.

As you may recall, earlier this year, the City adopted two new utility franchise agreements,

which have been codified in ordinance.

Appendix C-1 is the City's gas franchise agreement with its gas provider, CenterPoint

Energy, and Appendix D-1 is the City's electric franchise agreement with its electricity provider,

XL Energy.

In Minneapolis, the franchise fees are set forth in separate ordinances from the franchise

agreement ordinances.

Appendix C-2 is the City's gas franchise fee ordinance with the Centerpoint Energy,

and Appendix D-2 is the City's electric franchise fee ordinance with XL Energy.

These are the ordinances that the authorizing, authoring Council members are proposing to

amend.

From 2019 to 2023, the franchise fees generated approximately $28 to $38 million annually.

As a reminder, the amount generated by franchise fees varies from year to year because the

City has traditionally set the value of the franchise fees as a percentage of gross revenues

the utilities receive from customer consumption.

The City last amended the electric and gas franchise fee ordinances to increase the franchise

fees in the fall of 2023. The increase was estimated to generate approximately $8 to

$10 million annually, again based on the percentage of gross revenues the utilities received from

customer consumption. The City dedicated this increased revenue to the Climate Legacy Initiative,

which supports the City's Climate Equity Plan. More information about those programs is linked

in the presentation, which is uploaded to the legislative files on these proposed franchise

fee amendments on the City's legislative website, LIMS.

This fall, the authoring Council members proposed to amend the current existing electric and

gas franchise fee ordinances.

The proposed changes include updating the references in the current fee ordinances to

align with the new 2025 franchise agreement ordinances, including new rate classes to

align with the customer categories the utilities submit in their rate books to the Minnesota

Public Utilities Commission.

Should be noted that many other Minnesota cities also use the customer categories outlined

in the utility rate books, so this change will bring the city into closer alignment

with many of its peers on this issue.

The proposed changes also include increasing the utility franchise fees across the new

customer categories, which sustainability we'll discuss in the next few slides.

This increase is estimated to bring in an additional $5 million annually based on 2024

data, and it is staff's understanding that the authoring council members intend for this

additional revenue to also be dedicated to the Climate Legacy Initiative and its related

programming.

Finally, because the franchise fee ordinances are subject to approval by the Minnesota Public

Utilities Commission, the proposed amendment set the effective date for the new rates and

customer categories at 90 days after publication of the approved ordinances.

I will now turn this presentation over to Luke Hollenkamp to discuss the proposed franchise

fee rate increases.

Luke Hollenkamp, Sustainability Program Manager

My name is Luke Hollenkamp.

I am a Sustainability Program Manager in the Health Department.

I want to first give an overview of what are the proposed changes as proposed by the Council

Members.

So this is a table that shows the proposed and then the current franchise fee rates in

the category of the gas utility.

On the left-hand side you'll see the energy customer types.

These are the rate classes that Jocelyn just mentioned.

I will note that we, in our previous franchise agreements

and in our previous ordinance,

had listed just three customer classes,

which actually captured all of these categories within them.

So now, as Jocelyn mentioned,

due to the new franchise agreements,

we can differentiate between these customer classes.

And also, the customer classes, generally,

as you look at the screen, go in descending order

by the smallest energy users, such as residential and top,

down to the largest commercial and industrial

energy users at the bottom, who not only use often

the most energy, but they often have the most

energy expertise in house.

So the franchise fees in the residential category

for gas are proposed by the council authors

to go from 6% to 7%, a 1% increase.

And then for the categories of commercial

and industrial A and B, those rates would increase

by half a percent, up to 8.25.

And then for the categories of commercial industrial C,

and then commercial industrial dual fuel A and B,

those rates would, are proposed to increase to 8.75%.

And then finally, again, the, in general,

largest and most sophisticated energy users

are in the commercial industrial large volume firm

and dual fuel category.

They would see under the proposed ordinance,

a rate increase of 1% up to 9.5%.

On the electricity side, there are a few fewer customer classes.

However, again, this used to have just three customer classes in our old ordinance.

Now due to the new franchise agreements, we are able to differentiate further, just like on the gas utility.

And again, in descending order, generally then you will have an increase in electricity usage

from the least amount of electricity consumption

in the residential customers

up to the largest commercial and industrial customers,

whether at primary or higher voltage or secondary voltage.

The proposed increases by the authors

is to raise the residential rates

from 5.25% to 5.5%, a 0.25% increase,

and then a half percent increase

on the small commercial industrial non-demand customers,

up to 7.25%.

Roughly equivalent to is the increase

to small commercial industrial demand,

which would go up to 7.25%.

And here's where I want to stop and explain why that 0.26%.

In the case of the billing systems used by XL Energy,

they are not able to provide the level of granular detail.

We're looking from a revenue reporting standpoint,

when rates are set at an equivalent level across categories.

So we've differentiated them just slightly here

to be able to receive more granular revenue reporting.

And then finally, those largest commercial and industrial customers,

whether primary or higher voltage or secondary voltage,

would under the proposed ordinance by the consul authors

see a roughly 1% increase to 7.75% and 7.76%.

And another note here is that there are a few more customer classes

for municipal pumping and public street lighting,

and those classes are not shown here

because the council authors have proposed that those remain unchanged.

This is a slide that some of you may remember

from previous franchise fee increases,

So we want to present this today with an update to the information provided to show the estimated impact for the council author proposed increases.

So total energy costs here for an average residential customer in 2024 are $1,753.

I will note that this is actually a decrease from the slide that you've previously seen, where that was in 2022, $2,037.

The reason for that decrease is multiple factors, but primarily amongst them was 2024 was a warmer year,

so there was less heating demand for residential customers, and thus their bills were lower,

as well as gas prices in 2024, which fluctuate due to market conditions, were cheaper than they were in 2022.

So that explains that decrease over time.

That also highlights, I think, the variability of energy prices year over year as well.

And then compared against those 2024 total energy costs for a typical average household,

the franchise fees as proposed by the council authors

would impact bills by an increase of approximately $10 a year.

And then borrowing from some information

that Deputy Commissioner Patrick Hanlon

provided to this committee about a month ago,

there are a number of city programs,

particularly green cost share,

which help residents reduce energy costs.

And the franchise fees,

which go into the Climate Legacy Initiative,

or I should say the incremental fees of recent years that go into that initiative,

help fund the green cost share program.

And as an example, a project that is a weatherization project with some air sealing included

in a typical household, as shown by green cost share numbers that we've collected,

saves roughly $225 a year per household.

And a more comprehensive project that green cost share sometimes funds,

which includes also HVAC replacement and upgrades as well,

in addition to this weatherization, can save upwards of $550 a year annually.

And again, these numbers are all based upon 2024 values

and 2024 weather and 2024 energy prices.

So these all may fluctuate a bit.

They already have fluctuated a bit in 2025,

and going into the future, they may fluctuate as well.

But if all were to remain constant, these are the expected impacts that we would see.

And next, I will turn it back over to Jocelyn Bremer.

Thank you, Chair Cashman, members of the CNI Committee.

This final slide contains additional legislative links on limbs to related presentations and files regarding the utility franchise agreements

and the utility franchise fees,

as well as links to the Climate Legacy Initiative

and recent implementation updates on that program.

These links are intended to provide supplementary materials

in case there is any need for additional background information

that is missing from this presentation.

We will now stand for questions.

Thank you.

All right, thanks.

Thank you so much for the presentation.

I think we will have the public hearing first

and hear from community

and then have the opportunity to ask questions.

so please stick around all right um thank you and like i said we have over 50 people signed up so

we do have to reduce the amount of time for each person but we are so grateful that you're all here

and going to proceed to open the public hearing now so our first speaker is suzanne murphy from

war 12 and xcel energy hello chair cashman and council members my name is suzanne murphy and i

I am the Community Relations Manager for Xcel Energy in Minneapolis.

We enjoy collaborating with the city in many ways, including the Clean Energy Partnership,

where for over the last 10 years, we have worked together in support of the city's climate equity plan.

In 2003, we were supportive of the city's franchise fees proposal.

After five months of collaboration with city staff, meeting every two weeks to look at data and understand the city's goals,

We asked the city at that time to right size the increase so that it would not have to be regularly reopened.

This year, nobody has reached out for so much as a conversation.

We're disappointed in the insufficient process and engagement to understand the impact to businesses and residents.

The city receives about $29 million in electric franchise fees alone.

It is a staggering amount of money, significantly more than any other city in the state and should be more than sufficient to meet your needs.

We do not support this ordinance and ask you not to vote in favor.

Thank you.

All right.

Our next speaker is Stephen Smith from Ward 9.

Hi, my name is Stephen Smith, and I live in Ward 9.

Everyone has a right to a clean environment, including everyone's children and grandchildren.

More funding for climate equity program is necessary to reach our climate energy goals,

making life better for everyone in Minneapolis.

Until the early 70s, when you drove up to Minneapolis from outstate, you saw a haze over the city.

But national legislation and local legislation, mainly the Clean Air Act of 1970, we fixed that problem.

We made that haze go away.

40 years ago the ozone layer above the atmosphere that prevents harmful wavelengths of ultraviolet light from reaching us was found to be thinning and threatening increases in cancers, blindness, cataracts.

America led a successful campaign, led the whole world to solve this problem.

And in spite of having a conservative Ronald Reagan as a president.

Thank you for your remarks.

so the one minute is up so your additional comments you can submit in writing over at the

clerks to make sure they're in the record thank you yeah you can bring them over to the clerk

all right next we are going to ask marsha mays from the terrell mays garden terrell mays sorry

we just gonna go together because i'm on the list too but i just want to introduce her

Marsha Mays, she came all the way up here.

Y'all, it's not easy to come up here,

especially the way you guys have the building

and the overflows and stuff.

Next time, please don't put this at the end

because everybody don't got it like that.

Privileges to come down here

and be down here for three, four hours.

You let your staff sit in here.

Anyway, my name is Roxanne.

This is Marsha Mays.

I'm one of the oldest standing Green Zone members

since its inception.

So I just want to say this money is supportive

to our community,

and I'm getting tired of a narrative going around that poor Northsiders,

we won't be able to afford this increase if we put, you know,

increase the franchise fees.

We need to increase the franchise fees.

This work has been helpful.

It has supported our community.

We built the first solar mosque, Massjet, on the Northside on Lindale.

So we put solar on top.

We got like a battery so that if, you know, if the lights go out, that there will still be about 13 hours that the center could use to feed people and do all sorts of things with.

So this money is helpful.

I'm going to pass it on to Marsha.

Okay.

Terrell's garden has been the ultimate for the last 17 years.

It does have solar panel lights on it.

It nourishes.

It feeds that community, too.

It also has trees now, fruit trees.

We do need to raise those fees.

Listen, Excel kills us pockets.

They raise their fees on us.

Why we can't raise those fees on them?

And they're a monopoly.

They got it, y'all.

They got it.

All right.

Love y'all.

Have a good day.

All right, next we will welcome Christian Korob from Ward 12.

Good afternoon.

I'm Christian Korob, a low-income homeowner in Ward 12

who was outright given a solar system via our system here.

Though this is an outstanding proof of concept, I question the municipal finance is just.

I just don't know if it's just.

The monopoly negotiations proceed from a corrupting assumption that bargains with corporate rapists can be justified.

Minneapolis again faces a moral mirror it is very reluctant to see itself in.

But our centrist habits may cloud our North Star.

Let's fund a sustainable power for everyone in all of its dimensions.

Don't let the monopolists trickle down on us.

Thank you.

All right, next we'll recognize Michael Walker from Ward 13.

Chair Cashman, Vice Chair Kosky and members of the committee, my name is Michael Walker

and I live in Ward 13.

I'm here today to ask the council and mayor to approve the increase in the franchise fee

to support more clean energy home upgrades and alleviate the burden of high energy bills.

Increasing this fee is a vital way to make, as the mayor advocated for this summer, serious

progress toward our climate goals.

I want to live in a city that prioritizes healthy air, lower energy bills, and people over profit.

Having attended several clean energy partnership meetings the last few years,

I've observed that Excel and CenterPoint are more concerned with profit

and have made tepid progress toward the climate goals.

We, the people, need to act on our community's best interest because they have proven they will not.

If we want to see the block-by-block network geothermal that Council Member Rainville was rightly excited about in October,

we need to increase funding a less than 10 year 10 dollar a year utility increase for the average

homeowner to double the number of homes transition per year is well worth the investment and i do

want to publicly thank chair cashman and vice chair koski for their work on this and your

leadership will be sorely missed in the city thank you next we'll recognize leslie jackson

Welcome up Leslie Jackson.

Good morning, honorable members of City Council.

I'm Leslie Jackson, a proud Native Northsider and a strong voice for our green zones.

Our climate equity plan designed for the green zones as Minneapolis environmental justice communities.

This designation comes from a critical promise, the Federal Justice 40 commitment.

guaranteeing 40% of overall investments flow directly into these communities marginalized

by underinvestments and overburdened population.

In 2023, the Council committed to 40% reinvestment.

Simultaneously, you increased franchise fees collecting critical revenue directly from

the Green Zone's residents.

Yet the reality of the past two years shown a profound failure to honor that commitment.

You promised 40 percent, you delivered 11 percent.

The 40 percent was committed to justice.

11% is a crisis of consciousness.

The 29-point gap is not a rounding error.

It is a willful act of municipal neglect that denies our residents and the resources, promises for the health and stability.

When the disparity is dismissed as $1 for a household, I remind you, Dr. Martin Luther King,

words as an injustice and anywhere is an injustice everywhere. An injustice anywhere is an injustice

everywhere. You ask for a down payment for environmental justice and then you pocket the

change. The issue here is not about the dollar. It is the fundamental breach of trust. Out of

fairness, I'm going to ask you to submit the. And I did. I submitted my speech and my letter.

Please let me finish.

I'm sorry.

Okay, fix the problem, and then only consider increasing our burden.

Thank you for your time.

Looking forward to you making the right decision for the residents that live in the green zone

and giving them the justice they deserve, and it's overdue.

Thank you.

All right, next we'll recognize Bruce O'Brien from Ward 13.

Good afternoon.

Good afternoon.

Thank you, Council Committee, for having us speak.

I live in Ward 13 in Minneapolis,

and I'm very concerned about the climate,

which I consider fundamentally a global health crisis.

And, of course, that is affecting some communities more than others,

like people of color and poor, who are already paying a much greater price.

We don't have to accept the climate being torn apart, especially when we know what causes it.

This is a climate equity plan, meaning equality.

It is thinking globally, acting locally, and it's a prescription for this moment in our lives.

It takes vision for clean energy homes.

we need to increase the climate equity funding.

It takes courage to bravely step out of the easy way,

the comfortable way, and to do the right thing.

Thank you.

Thank you.

Next we'll recognize Solveig Nielsen from Ward 8.

My name is Solveig Nielsen.

I'm a citizen of Ward 8.

I would like to cut to the chase so I can get in my main point.

When I heard about the clean energy home upgrades that would result in savings on my monthly energy bill, I decided to apply.

I applied, and I got a free home energy audit as part of the application process,

which was a great thing because I found out for the first time that I had no insulation in my walls.

I found out also that I was actually eligible.

But before I got the formal notification of that, and I waited for that and was hopeful because they said I qualified,

then I received a message saying that they were out of funds for the year.

And I applied again this year.

And the same thing happened.

out of funds for the program.

Very disheartening.

This is why people are cynical about government programs.

If you don't fund them, it seems like you're doing nothing.

Thank you.

Thank you.

Next we'll recognize Ken Englehart from Ward 12.

Thank you for the opportunity to speak.

I would like to stand in support of the increase in the franchise fee.

I reviewed the climate equity plan this morning, and I noticed that in December of 2021,

this council, the Minneapolis City Council, and the mayor passed a resolution declaring that we have a climate emergency.

When we have an emergency, I think we need to step up and meet the demands that that emergency calls for.

2024 was the hottest year on record globally, and we've seen the effects of that.

Wildfires in California, the tragic flooding of the girls' camp in Texas,

consecutive years of drought in Minnesota, flooding in Minnesota in our disappearing winter,

and even a hurricane affecting Asheville, North Carolina.

We need to meet the demands of this emergency, and I support this resolution.

Thank you for the opportunity to speak.

Thank you so much.

Next up is Michelle Hensley.

Good afternoon, everyone.

When the Minneapolis City Council passed the Climate Equity Plan over two years ago,

part of me knew that it was too good to be true.

Part of me worried that certain council members and perhaps the mayor would succumb to intense

lobbying from the biggest polluters and would make up some kind of palatable cover story

to cover their change of heart.

Well, that seems to be exactly what's happening.

The excuse now being presented is that increasing fees, franchise fees, by as much as $10 a

year would be too much of a burden for poorer residents, which it certainly would be a big

but it ignores the fact that the fees paid by the largest polluters will give them hundreds of dollars of savings every year by insulating homes and electrifying heat sources.

We are exhausted by politicians speaking out of both sides of their mouth, especially when it comes to climate change.

I thank the council members who truly support the goals of the Climate Equity Plan, and I ask everyone else to dig deeper into your conscience.

and ask the big polluters to dig deeper into their pockets.

Thank you.

Next, I'll recognize Jill Waite, followed by Ann Hogan.

I'm here to ask you to up the franchise fee because this is a matter of survival.

It's a matter of economic survival.

It's a matter of political survival, and it's a matter of physical survival.

What could be more important?

It's a matter of economic survival because we have free energy underground that we can tap into with heat pumps that are five times more efficient than natural gas.

Why wouldn't we want to do that?

It saves us money.

It saves us politically because it levels the playing field.

Right now, people like my brother, who 20 years ago invested in geothermal, can save money by doing that.

But people like others who don't have that kind of money have to go to the back of the line and stay with natural gas because they can't afford the initial cost of geothermal.

We can level that playing field.

Thank you.

Thank you.

Next is Ian Hogan, 5th Ward.

Jordan neighborhood and

and Hogan all right we if and comes we'll add you later in the list so next

is Doug Johnson from word for all right

Welcome.

Good afternoon, everyone.

My name is Ann Hogan.

I live in the Fifth Ward in the Green Zone,

and I also work in the Fifth Ward at St. Olaf Lutheran Church,

and we do quite a bit of community work there at St. Olaf.

And what I'm getting in our community,

a lot of people are living in homes that needs repair.

repair they have quite a weatherization needs to be done the utility bills are very high

and same as another person spoke when you sign up there's no funds i have seen

the benefits of getting a healthy home through my daughter who got her home done and it

her asthma went down and all of these breathing diseases that's in our

communities due to not having healthy homes a lot of them have mold in the

basements and I I would like for you to approve to approve this franchise fee

for especially the people who just can't afford to repair these things like I

I said on a daily basis, I speak to my community

in the fifth ward and the most things they need

is just to weatherize their homes and make them livable.

Thank you so much.

Appreciate your time today.

Next is Doug Johnson followed by Erin Thompson.

Madam Chair and Honorable Council Members, my name is Doug Johnson.

I live in the Fourth Ward.

I'm speaking in favor of increasing the franchise fee.

Excuse me, and here's why.

My home was built in 1938.

Some years back, I decided to upgrade my wall insulation

with some popular, at the time, urea formaldehyde foam insulation.

A few years later, stories came out about people getting sick

from this outgassing insulation.

Not wanting to expose my family to the possible dangers,

I decided to remove the blown-in insulation myself.

I had to remove the siding and the sheathing to get at the insulation.

When I got the insulation removed, I found out that it was one-inch baths of newspaper

was the original insulation in my house.

And, of course, that's a good way to use newspapers when you don't have anything else to do with them,

but back then, that's all they had.

Now that's a very bad way to insulate a house.

thank you so much for your comments doug unfortunately the minute is up thank you so

much i just wanted to say that a lot of houses now in the green zone don't even have an installation

and so there's a danger of people using space heaters to uh to make their homes comfortable

and the uh the danger is that you can have an electrical fire thank you so much all right next

we'll recognize we'll welcome aaron thompson followed by megan reich and then michelle shaw

Good afternoon.

Erin Thompson, Ward 11.

I would love for you to increase the franchise fee to at least 15 million this year.

We need to be bold, to take risks, and to think abundantly instead of out of scarcity.

I care deeply about the histories in our city of racism, environmental racism, and inequality.

We know that in our low income and in communities of color, the rates of asthma and respiratory

illnesses are staggering.

A Stanford University researcher has studied the ways exposure to air pollution ripples

across generations.

Toxic air particles make their way into the bloodstream, affecting a developing fetus.

They also can affect both male and female reproductive organs, altering genetics and

affecting future generations ongoingly.

This is happening to our neighbors who live near industrial pollution.

Enabling home energy upgrades and across the city is a first step.

We need to keep the franchise fee increases moving upward to ensure that our city is doing

the best that we can right now.

Thank you so much.

Thank you.

Next is Megan Reich followed by Michelle Shaw and Carter Davis.

Hello council members.

My name is Megan Reich and I live in Ward 2.

I'm here to voice my support for increasing the franchise fee ordinance rates to expand

energy efficiency programs starting in Minneapolis green zones.

I'm speaking today for younger millennials and Gen Z renters and homeowners.

My generation and those younger than me largely cannot afford to decarbonize our homes.

We are wondering what our future will look like.

Many of us worry about the future of our children and some are choosing not to have children

at all because of where the climate is heading.

Climate action has to start locally, but right now Minneapolis is not on track to reach its

climate equity plan goals funding as others said runs out halfway through the year for clean energy

programs even as resident demand continues to grow weatherization is not abstract it means lower

energy bills healthier homes and cleaner airs it means that families can live in comfort and dignity

while also protecting our shared climate these programs create options for action and empowerment

especially for people who feel like they've been left without a way to contribute we know city

leaders are being pressured by the biggest polluters to say no to increase funding for

energy upgrades but what is more important our polluters or our people let's give the next

generation something to stand on thank you thank you next is michelle shaw followed by carter davis

and then todd bartholomew hello council members michelle shaw word one i'm all for funding this

program however i think it'd be helpful for people to see the breakdown of what neighborhoods are

receiving the funding as there's misinformation out there about who is and

who isn't getting funding. I don't understand why the money is running out

in August and how the program is being run. Should people who can afford to pay

for energy upgrades without a loan be eligible for the funding and what about

those of us who fall through the cracks like people with disabilities, students,

recent grads and young families? If those on the City Advisory Councils like the

green zones are supposed to make program recommendations for this franchise fee.

Please listen and follow through on our recommendations.

Thank you for your time.

Wonderful.

Next is Carter Davis, followed by Todd Bartholomew.

Hi.

My name is Carter Davis.

I live in Ward 2.

I'm 30 years old, and everyone around my age talks about climate change like it's an

imminent, unavoidable apocalypse. People my age aren't starting families or buying homes or saving

for retirement out of a belief that there won't be a future. It's easy to see why. We only have

five years to dramatically reduce our reliance on carbon to avoid ecological collapse, and our

executive branch is ideologically committed to making the problem worse. But this is not an all

or nothing situation. Every way we can reduce our carbon emissions will help make this planet more

livable for future generations. Climate pessimism is not an option. We have a chance to make

a difference and join the rest of the world in tackling this existential threat. That's

why I support raising the franchise fee, so we can better meet the goals of the Minneapolis

2040 plan and ensure a more equitable future for all.

Thank you. Next, we'll hear from Todd Bartholomew, followed by Lee Samuelson.

Good afternoon, esteemed council members.

My name's Todd Bartholomew, I live in South Minneapolis

with my wife and my 13-year-old daughter

who is on the green team at Justice Page School

and with whom we have nearly nightly conversations

about conservation in the future.

I'm also grandfather of two grandkids

and an older daughter's family

who live in the green zone in South Minneapolis.

I support the ordinance urgently

and I challenge you to demonstrate your leadership

in this moment by passing it.

The excellent plan we established in 2023

is nothing if not executed.

The $10 million fund, as you've heard,

has run out mid-year so far,

leaving thousands of homeowners waiting for weatherization.

The ordinance is affordable.

What's not affordable is abandoning our path

on the clean energy goal.

The cost of gas and electric and the existential cost

to our planet makes the ordinances investment

almost inconsequential by comparison.

I implore you, dear council representatives,

to step up to this moment and pass this important ordinance.

Thank you so much.

Next, we'll recognize Lee Samuelson

followed by Lorenzo Lean and then Arlene Matheson.

Yeah, Chair Cashman, members of the committee, the message from community power has been

clear and consistent all along.

We value initiatives that link a climate vision with a pathway to affordability and as a supplement

to our organizational comments that my colleague will submit to the clerk, I have an additional

graph to reference that shows the number of city-backed weatherization and deep energy

efficiency retrofits suddenly tripled when the climate legacy initiative went to effect in 2024,

indicating a strong correlation. So it is best for the community that the proposals get approved

so that we don't have another year of funding running out in August at the same level of demand.

And the chart also shows that 54 percent of the funds are going toward those in need and will

continue to follow the implementation of the climate legacy initiative roundtable to make

sure that's the case and I do want to lastly thank you for your October 22nd Star Tribune commentary

on the ideas thank you thank you next we'll have Lorenzo Lean followed by Arlene Matheson and then

Kat Knudsen.

Hello, I'm Lorenzo Leen from Ward 12.

I strongly support the raising of the franchise fees.

Earlier this year I was volunteering

with the foster grandparent program at Howe School.

They were excited and looking forward to a day

at Riverview Theater a block away

because the air quality was so bad that day,

it got canceled and it was not reinstituted.

I would like our kids to be able to look forward to things

and not be disappointed, thank you.

Thank you, next we'll have Arlene Matheson.

Welcome.

Thank you, my name's Arlene Matheson, I live in Ward 11.

I'd like to thank my council member, Vice Chair Kosky

and chair cashman for your leadership and support of climate equity programs i urge the council to

pass these two franchise fee ordinances as part of a ramp up to at least 118 million a year by 2030

besides the essential and urgent benefit of reducing emissions clean energy home upgrades

provide immediate savings for residents as you've heard they create good local jobs and they improve

residents health the city's investments and weatherizing homes so far has

resulted in 380 million dollars in lifetime savings we can't afford not to

do this thank you thank you next we'll welcome Kat Knudsen from Centerpoint

followed by Adam Dunning from the downtown council and then Justin Joe

Justice Jones from Ward 7 hi I'm Kat Knudsen with Centerpoint Energy

Centerpoint provides the city's homes, businesses, hospitals, nonprofits, and

others with safe, reliable, cost-effective energy. Franchise fees are paid 100% by

our customers, who are the city's residents in standalone homes,

multifamily properties, schools, hospitals, businesses, and places of

worship, to name just a few. Two years ago when the city increased fees it did so

after a data-driven, months-long engagement process

that involves significant analysis,

including understanding the customer impacts

and consideration of unintended consequences,

that process seems to have been abandoned this year.

Because of this, CenterPoint cannot support this gas franchise fee increase.

Thank you.

All right, next to welcome Adam Dunnink from Downtown Council.

Okay.

Thank you.

Next we'll recognize or welcome Justice Jones from Ward 7, followed by Jay Lieberman, followed

by Catherine Gilbertson.

Hello.

My name is Justice Jones, and as she said, I'm from Ward 7.

and I, well I'm not from Ward 7, I live in Ward 7, but I'm from the Northside.

And I work for a Northside-based organization called CMEJ that's connected to various EJ communities and groups in various different ways.

My previous mentor and CMEJ's founder, Roxanne O'Brien, always told me that if you want to know the truth, you need to ask at least five people.

Initially, I believed that increasing these franchise fees would serve as a stepping stone to achieve our goals

with the knowledge that every cent of these fees would be spent on the weatherization of homes

and EJ initiatives within the green zones.

However, when I arrived here today, I was shown data that was brought to elders

from Ed Haramiel, the mayor's senior policy aid on climate and public health,

that shows that these fees aren't being used appropriately

or within true energy burden communities.

I was also shown data by city staff that contradicted what was shown to elders

at the most recent green zone meeting that says the money is being used correctly.

I find it deeply concerning that city staff and city officials are sharing contradicting

information with community members.

It is a clear violation of the rights constituents have to make decisions about what happens

in the communities that we live in.

And if we choose to increase these franchise fees, I urge you to get your house in order.

It is your job to ensure that the money from these fees goes directly into weatherization,

green zones, and the initiatives that are on the ground doing the work because we are

the ones footing the bill.

Thank you.

Next, we'll have Jay Lieberman followed by Catherine Gilbertson and then Joe Hessler.

Jay Lieberman, Word 12.

Thanks for the opportunity to speak in favor of the franchise fee increase.

For the last two years, I've had the opportunity to have extended discussions with dozens of neighbors about doing clean energy upgrades in their homes.

And the problems that people run into, like what is the best thing for me to do for the home,

what kind of products or process do I need, who should I hire to help me do that work,

and how do I pay for it are common to everybody.

The programs that are funded by the Clean Energy Initiative provide the answers.

People who can answer those questions, and they provide the financial aid that's critical

grants and loans that should be going to the people that need that funding the most.

This increase, while relatively small, will fund hundreds of projects in people's homes.

So I hope you will approve it. Thank you.

Next I'll recognize Catherine Gilbertson followed by Joe Hesla and then Bonnie Beckel.

Good afternoon. My name is Catherine Gilbertson. I am here on behalf of the Sheridan downtown,

Ambridge Hospitality, as well as Hospitality Minnesota. It's been very enlightening sitting

here. I have to listen to what people are saying. I have to look at the items that have been shown

today and wonder where this money is going because I can see the increase in franchise fees that

have occurred at the companies that I work for, and yet you're running out of money each year.

A little bit concerning. I know that we've spent $336,000 on utilities alone this year,

and that's with being closed from January 1st through May 20th. So utilities are a little bit

out of control at this point. We are a larger operation, and we can absorb the cost. However,

small businesses will be hit hard as they operate with less financial flexibility and cannot easily

PASS THE ADDED EXPENSES ALONG WITHOUT LOSING COMPETITIVENESS.

I SEE THIS BEING AS AN OPPORTUNITY FOR THE CITY TO GET SOME SHORT-TURN REVENUE GAINS

WITH LONG-TERM CONSEQUENCES. THANK YOU FOR YOUR TIME.

OKAY. NEXT WE'LL HAVE JOE HESLAW, FOLLOWED BY BONNIE BECKEL, AND THEN

CATHERINE RINGHAM. CHAIR CASHMAN, COUNCIL MEMBERS,

Asthma is on the rise in Minneapolis, and why is that?

One reason is gas stoves and gas furnaces.

Gas stoves cause asthma at a similar rate

to secondhand smoke, and that's just gas stoves.

Asthma is preventable.

We can put electric stoves in everyone's homes,

starting with the poorest neighborhoods.

This will cost money, and yes, that money

should come from all of us, but the greatest contribution

should come from the biggest energy users and biggest polluters. That's only fair. That's

why we're here today to ask you to raise the franchise fee to $15 million. The mayor will

tell you that we can't burden our big corporations like that or inconvenience our energy monopolies,

Excel, and Centerpoint Energy. But I'm here to tell you that we cannot burden our precious

as children and our vibrant health of our neighbors

like that, particularly our lowest income neighbors.

I cannot think of a morally defensible reason

not to do this.

Please vote for this increase.

Next we'll welcome Bonnie Heckle,

followed by Katherine Ringham and then Maddie Fisher.

That's Bonnie Beckle.

Apologies.

All right, I want you to increase the franchise fees

to continue to help residents who have low incomes

and who live in the green zones

to get their homes made energy efficient.

When I first heard about the climate crisis,

I learned that it, along with habitat loss,

has caused the extinction of hundreds of animal species.

So, and also that the populations

of thousands more species are plummeting.

It struck me as the epitome of the arrogance

of the human species that we think

we are so much more important that it's okay

to destroy the very existence of other creatures

that we share this planet with.

And we know that the greed of this capitalist system

is killing human beings also.

So we can do something about this

right here in Minneapolis about this upside-down world.

We can bring down the carbon pollution from our homes and buildings.

Thank you.

Thank you, Bonnie.

Next, we'll welcome Catherine Ringham, followed by Maddie Fisher and then Alice Madden.

Good afternoon, Cashman Chair and other council members.

My name is Catherine Ringham.

live in Ward 13, current leader of Elders Climate Action in the Twin Cities, and a Unidos Champion.

We've lived in Minneapolis for a long time, raising children,

and now I'm lucky enough to watch our grandchildren grow up here, too.

And like so many of my neighbors, I care deeply about what kind of world we are leaving them.

Not just the planet, but the day-to-day life right here, right now.

That's why I'm here today to ask you to increase the climate equity funding.

We now know that these programs really work by cutting energy bills,

they make homes warmer in the winter, cooler in the summer, and safer to breathe in.

And what I love about this fund is that it's supported mainly by fees from big polluters, not from taxpayers.

It's a fair way to turn the damage of pollution into something positive,

healthier homes, lower costs, and a stronger, more resilient community.

So I'm asking you, please keep moving forward.

strengthen the Climate Equity Fund.

Let's make clean energy homes for all a reality in our city.

That would be a legacy worth leaving.

So thank you so much for listening and for all of your good leadership.

Thank you.

Next we'll recognize Maddie Fisher, followed by Alice Madden, and then Jera Elhassan.

Good afternoon.

My name is Maddie Fisher and I'm here on behalf of the Minneapolis Regional Chamber of Commerce

and the Minneapolis Downtown Council.

Thank you for the opportunity to comment on the proposed franchise fee ordinances.

Of the Chamber's 700 member businesses across the Twin Cities, nearly 40% of them are based

here in the City of Minneapolis.

And as an organization focused on advocating for business, we're disappointed to see a

pass-through tax on both residents and corporations on the table before this committee again.

We understand the city's need to address budget shortfalls during this time of uncertainty,

but any increase should come with a greater degree of transparency and public input.

It is unfair to the companies that choose to be in the city of Minneapolis and to ask them to pay the biggest price,

and it places a monetary burden during a time of soaring costs for businesses.

We hope you'll consider leaving franchise fees where they are and not increasing them for the second time in as many years.

Thank you.

Next is Alice Madden from Community Power.

Hi, council members. My name is Alice Madden. I work with Community Power, but

I'm also on the Climate Legacy Initiative Roundtable, which is the

Community Advisory Board to the Climate Legacy Initiative. I just want to ground

us first that we are in this room here, but of all of our global peers, we have

the biggest responsibility in the US, among other wealthy nations, to address this climate

crisis.

While the federal government is not attending the Paris climate, the COP convenings right

now, mayors and governors are.

It is the local level that is holding the water for this issue right now.

We have to keep it there.

But also that all of these costs of climate change will affect public works, it will affect

roads, it will affect insurance costs for people's homes.

But those costs are being absorbed.

Residents and businesses are paying them.

And the green cost share program

and the climate legacy initiative

is available for everyone.

The return on investment is four to nine dollars

for every dollar that the city invests.

That's huge.

Nine dollars is for businesses.

So for the folks who are representing business here,

I hope you reach out and take advantage of it.

I just wanna close my comments here by saying,

if the utilities care about cost increases,

they should not be asking for 20% rate increases

or raises to their 10% return on investment.

And please, you have lots of lobbying time other places.

If that's what you want to do, please do it there.

And lastly, the information about what is happening with these fees should come from city staff.

Because it can't come from multiple sources.

And it's really got to come from the staff who know what they're talking about circulating to green zones, SEAC, EBAC, etc.

Thanks, Alice.

If you have more comments, please submit them to writing.

Thank you for your time.

Next we'll welcome Jera Elhassan followed by Bill Adamski and then Erin Bax.

My name is Jera Elhassan. I am a Ward 5 resident. I'm also a recipient of some of these grants and loans that this ordinance or this franchise fee pays for.

pays for it. I would just like to advocate that the process to get these grants and fees is very

hard. People have dropped the ball. It took me three years to get in for the services. And what

I was allowed to have as far as like insulation wasn't necessarily the best choice for my home.

For instance, I would have chosen radiant barrier insulation versus the spray foam

insulation that I got that now is voiding my homeowner's policy because that type of insulation

makes us you cannot see the floor joists when they do inspections and lowers your property value.

Also, I was not approved to get a new AC unit because I do not have central air and was told

to use three different air conditioners to keep my home cool in the summertime, which is a greater

a cost of from $300 to $600 a month in utility costs.

So my utilities have not gone down because of these programs.

So I would like the homeowners to be able to have better choices to be able to make

their homes more efficient.

And the Northside residents are in favor of this franchise tax.

Despite the fact that we are low income, we still need this.

Our community would greatly benefit from these resources.

Thank you.

Thank you for those insights and feedback.

Next, we'll have Bill Adamski, followed by Aaron Bax, and then Abby Guthman.

My name is Bill Adamski of Ward 8.

Thank you for this opportunity to speak.

I urge you to approve the proposed increase in the franchise fees,

which are still woefully inadequate to funding the goals of the Clean Energy Initiative,

which is increased efficiency renewables and reduced emissions and affordability.

The necessary home upgrades are too costly for most residents, especially those living in the green zones.

We need to put people ahead of profits in striving to meet the CLI objectives.

Let's have the polluter pay for most of the home energy upgrades.

Thank you.

Thanks.

Next is Aaron Bax from Ward 7.

Good afternoon.

My name is Aaron Bax and I live in Ward 7.

I believe the council should vote in favor of this funding increase.

I've been considering my comments in context of the SNAP food affordability program crisis

crisis that has affected many individuals and families

in our city, and as a former SNAP enrollee

and someone who has helped many Minnesotans navigate

the primary energy burden reduction program

we have in this country, energy assistance,

there's a common thread.

While energy assistance is a powerful tool

to make energy more affordable,

it cannot change any of the things

that makes energy unaffordable to begin with.

And it's a program that requires a social security number.

Home weatherization, on the other hand,

is an upstream solution.

It enables participants to save hundreds of dollars a year

in the winter and in the summer on their energy bills

because the cheapest kilowatt hour

is the one that is never used.

In addition, LIHEAP can never realize safety

and comfort improvements in the home.

Weatherization is the only tool that can ensure

that your bedroom isn't windy

even when the windows are closed.

And lastly, this is a local solution,

one that can't be swept up in federal assistance cuts

and savings will never be delayed by two months

because the government is shut down.

Thank you for your consideration.

Thank you.

Next is Abby Guthman, followed by Lauren Davis,

and then Byron Richard.

Hello, my name is Dr. Abby Guthman.

I live in Ward 6.

I am an ecological research scientist,

and I would like you to please support

the franchise fee increase.

I'm sure you all are well aware of the idea

of social costs of carbon,

things like costs and damages to human society and to human health, increased heat stress,

increase in tropical communicable diseases, costs in agriculture, many, many things.

A 2022 Nature article estimated about $185 of a cost per metric ton of carbon admitted into the atmosphere.

A more recent article accounting for inflation estimated about $525 per metric ton of carbon emitted into the atmosphere.

That is costs that we as average everyday citizens incur.

What we are asking currently with this franchise fee is about $5.

That's about 1% of what we are actually paying for in our day-to-day societies.

This is not a radical thing we're asking for.

It's not even moderate.

Frankly, it's mild.

And gosh, do I wish we had started 50 years ago.

But we can start today.

Thank you for your time.

Thank you.

Next we'll welcome up Lauren Davis, followed by Byron Richard.

Hi, my name is Lauren Davis.

I live in Ward 2.

And I guess I just want to say, after hearing everybody,

that i'm coming here as a community member and a citizen and i just urge the council members to

listen to the people that have talked and not the corporate interest that is in the room um i would

like the council members to increase the franchise fee which would directly support clean energy

homes for neighbors who need the most support low-income families and households in the green

zone i hope that there i know there are a lot of fires to put out in this current moment but

increasing the franchise fee is an opportunity to make homes safer and healthier for our most

in-need neighbors and to let that work be funded by the polluters in the city.

And I would like Minneapolis to be an example of a city that takes a climate crisis seriously

even when this current moment feels really hard.

Thank you.

Thank you.

So next we have Byron Richard followed by Mike Rowland and Mark Schultz.

okay we'll have Mike Rowland followed by Mark Schultz and Amy Blumenschein

thank you my name is Mike Rowland I live in Ward 8 thank you chair Cashman and committee members

I'm here in support of increasing the franchise fee to 20 million dollars yearly

I want to thank all the council members for their support in 2023, the 13-0 vote to start the climate legacy funding.

And really think about what you've heard today about how are we doing.

That we are running out of funds every year.

That we've reduced our goals from how many homes we want to weatherize in the city from 100% to 25%.

All that with our electricity rates are still going up.

Our weather is still getting more extreme, and the demand is only getting worse.

And so this is no time to pull back on our climate or our equity goals.

And so I urge you to vote to support this increase in the franchise fee so that everyone in Minneapolis can have clean air, more affordable and clean energy homes, no matter our income, our race, or our neighborhood.

Thank you.

Thank you.

Next is Mark Schultz, followed by Amy Blumenschein, and then Dale Howey.

Hello, my name is Mark Schultz.

I live in Powderhorn Park neighborhood,

and I'm here with Unidos today.

Now is the time for you to pass this increase in funding

for the Climate and Equity Plan.

You know, as somebody mentioned, we are still in,

in fact, we are in a worsening climate crisis.

So now is not the time to delay or to give it short shrift.

Now is the time for you all to pass this.

In addition to myself and my wife, my daughter and her husband and their two young girls

also live in Powderhorn Park neighborhood and I'm concerned about them.

Strong action is needed on climate and our city can do it.

I'm also concerned about the continued racial disparities in Minneapolis on many fronts.

I encourage you to allocate $20 million this year.

here, focus on the work in the designated green zones, and tackle this as the real solution

it is.

Thank you.

Thank you.

Amy, next is Amy Blumenschein.

What Mark said.

Honorable Council Members, I am Amy Blumenschein, and I will make the economic argument for

why we should support this resolution and listen and heed the smoke alarms going off.

40 years ago, I recall being urged to minimize our fossil fuel use by weatherizing our home.

The argument, which still has merit today, is to keep the money that we use to heat our homes as local as possible,

circulating and boosting locally. All the money we pay for monthly fossil fuel bills leaks away from here to other places.

Now, other Minneapolis councils have known about the need, but never invested seriously enough to make impact.

we've got to do better you could stop kicking the gas can down the road I

urge you to plug the leaks and plug in the green electricity you've already

heard about the great return on investment for every dollar invested in

in these decarbonizing efforts in generated energy and non-energy

benefits I'll be submitting a study and there's another one global climate no

No more kicking the gas count down the road.

As we say in third act, no time to waste.

Thank you.

Next is Dale Howie, followed by Abdi Fata Abdi,

and Randall Smith.

Very excited to be here.

Thank you for letting me talk.

My name is Dale Howie, AKA Crazy Green Landlord.

That's my YouTube channel.

I have no electric bills.

Sorry, Excel.

Exxon could kiss my assets goodbye.

I haven't burned gas in my car since 2011.

I'm so done with fossil fuels.

We put up a quarter million watts of solar

at Green Rock Apartments.

We have 12 locations in Minneapolis.

I self-run 185 units because I'm too cheap to pay a manager.

So I work 80 hours a week fighting climate change.

I found out about the existential threat of climate change

during the 2000 election,

and I've been busting my tail ever since.

So I urge you to increase the fees.

If businesses want to retain their profits,

then put up solar panels.

If you want to harden yourself and be resilient

against future increases in your utility costs,

I think they left the room,

put up solar panels on your roof.

So I can keep my rents low.

I've utilized the Minneapolis cost share, Excel rebates.

I'm involved with the 4D program in Minneapolis.

And yeah, thank you for your time.

Next is Abdi Fata Abdi.

I believe maybe he was here for the prior,

one of the prior public hearings.

Okay, so next we'll have Randall Smith followed by Mary Cosseth and then Robert Reed.

Randall Smith, Ward 2.

Nice to meet you, Council Members.

Nice to be able to talk to you.

I rise to ask you to approve the increase in the franchise fees.

Weatherization is the most cost-effective method of reducing energy use.

What that means is increased affordability and reduced pressure on climate change.

I think we've heard today that there is some imperfection in the implementation of the climate equity program.

We've also heard, I think, in spades that it's equally obvious that there just isn't enough money in the program,

and that's the primary problem with implementation.

let's fund the program at the best level we can.

This increase in franchise fees at least is a step in the right direction.

Thank you.

Thanks, Randall.

Next is Mary Kossuth, followed by Robert Reed and Mitchell Hansen.

Hello, Mary Kossuth, Ward 8.

Please raise the franchise fee.

In 2004, I rented a 400-square-foot efficiency in Loring Park.

It was so small, yet I was paying $30 a month for electricity.

I called the electric company to investigate, and they were like,

do you own a hydroponics garden?

Do you have a 3,000-gallon heated fish tank?

No. I did not have a TV, a microwave, a coffee maker, and my stove was gas.

But my fridge was very old, so I told the management about that, and they ignored me.

I'm a scientist, so I did an experiment.

It was winter, so I unplugged my fridge

and put all of my food and beer in the windowsill.

My bill went down to $5.

I brought this evidence to management,

and they had to buy me a new refrigerator

that brought my bill down to $12.

That means I could have saved $200 that year.

We need efficiency.

Thank you.

All right.

Next is Robert Reed, followed by Mitchell Hansen,

and then Adam Schneider.

Good afternoon, Council Members. My name is Robert Reed. I live in Ward 11. I would like

to express my gratitude for your foresight in passing the Climate Equity Plan in 2023.

It both reduces fossil fuel use and redresses historic inequities by investing in the neediest

neighborhoods. Yes, we need to raise the franchise fees, but we also need to look beyond that.

Other cities are using tools such as green bonds.

St. Paul has been using them since 2015.

Pay as you save programs and making the largest polluters and utility companies pay their

fair share.

Minneapolis has a history of visionary leaders.

We owe our amazing park system to the foresight of leaders who in 1883 knew the value of

green spaces.

What will be your legacy?

The federal government has abandoned us, so state and local leaders, like yourself, are

now the only front lines we have.

We are living through an existential climate crisis.

Leaders are known by the difficult choices they make, not the easy ones.

Please continue to be the visionary leaders that make tough choices that protect future

generations just as our city leaders did in 1883.

Thank you.

Thank you so much.

All right, next we'll hear from Mitchell Hansen from Ward 4, followed by Adam Schneider,

and then Joshua.

Hello.

Thank you.

So I've been a grateful participant with the City of Minneapolis Sustainability Department

as one of their partners.

And it is obvious that you need money to save money for energy efficiency and solar.

I think the people at the department are good, but honestly they're just basically throwing

their hands up a lot of times saying the money is gone.

So who is this really benefiting?

I'm just urging you to look deeper into your budget

and scrutinize where this money's going

before voting on anything.

I've been working with a woman in Harrison for years

to get financial support so she can make essential health

and safety fixes to her home.

Instead of a Healthy Homes Grant

that could help her stay in her home,

she just sold her life insurance policy

in order to get health insurance, pay her property taxes,

and start making a dent in her utility debt,

which on her recently reduced SSI payments

have put her in a catastrophic financial situation.

Those that need this money the most and support

are being left in the dust as we watch money

intended to benefit public health

wash into cosmetic upgrades for too big to feel affordable-ish housing developers.

We match costs for entities that realistically don't need it and celebrate them slapping

a few dimmable LEDs, some green formaldehyde-laden cabinets, low-flow shower heads,

some Energy Star hopper windows, and a smart energy thermostat.

Just thank you for your time. I'm not going to say one thing or the other.

I really would appreciate just attention to where this money is going. Thank you.

Thank you for those comments. Next is Adam Schneider

from Ward 10, followed by Joshua K.

Thank you, Chair Cashman and Council Members.

My name is Adam Schneider.

I'm a Ward 10 Uptown resident,

and I'm here to speak in favor of the franchise fee increase.

These franchise agreements effectively provide XL

and CenterPoint Energy with state-sanctioned monopolies

and thus forth state-sanctioned profits.

So these corporations must be better partners with the city,

and we must hold them responsible.

At a presentation to the Community Environmental Advisory Commission, Center Point had no projection to become carbon neutral by 2050, which is the bare minimum we can ask for at this point in the climate crisis.

Additionally, they and XL oppose further transparency on the Clean Energy Partnership without providing us with a reason.

We need to demand more from these massive corporations as we address the climate crisis, the emergency of my generation.

As we have a backlog of weatherization work, increased demand for renewable energy and urban agriculture opportunities, and communities like the green zones demanding a cleaner environment, we cannot be too ambitious in our efforts for a more sustainable and equitable Minneapolis.

Thank you.

Thank you for those comments.

Next is Joshua Kay from Ward 8, followed by Jay Adams.

Hi, Chair Cashman, members of the committee.

My name is Josh Kirk.

I live in Ward 8.

I'm a lifelong Minneapolis resident and love this city immensely.

I want to speak in support of increasing the franchise fee to bolster climate equity funding

in the city.

Specifically, I see the urgent need to decarbonize in the face of the climate crisis, together

with the city lagging behind on climate goals.

And I'm deeply troubled.

Increasing the franchise fee is a step in the right direction towards meeting these

goals, most importantly, achieving carbon neutrality by 2050.

So often it feels like the world's problems are so big and overwhelming that solutions

are impossible. For me, the climate crisis is the number one issue that provokes that fear and sense

of powerlessness. These ordinances are a real tangible way that we can push back and achieve

something together as a city to undermine that feeling of helplessness. Again, I just want to

say to not pursue this increase right now would be to turn a blind eye to both the climate and the

cost of living crises. Therefore, I implore all council members to vote to improve these franchise

fee ordinances. Thank you for your time. Thank you, Josh. Next is Jay Adams followed by Maggie R.

and then Satish. Hey, thanks for having this public hearing and letting folks talk. Jay Adams,

Ward 12. I enjoyed this nice warm November day thanks to climate change, but then I thought

about my friend up in Brimson, Minnesota. The Camp House fire ripped through a corner

of his property and his neighbors weren't so lucky. A lot of people lost their homes

and cabins. And when we look at the federal situation, climate change policies being dismantled,

are we supposed to feel helpless? Well, we've got something here we can do. Rather than tear

things down, we can build them up. And I'd suggest different reasons to support increasing

the franchise fee, depending on your philosophy. Maybe for some is to help low-income people pay

their bills, others to be a model for other cities, and for some look at the return on

investment if you're more entrepreneurial. So when you vote, picture the installer who's got work,

a proud mom or dad who's providing for their children and their children's children. Thanks

very much thank you Jay next is Maggie R followed by Satish Desai and then

Casimera Maggie R from Ward 9

all right next we'll rep we'll welcome Satish Desai from Ward 8

Good afternoon.

My name is Satish Asai from Ward 8.

When I reflect on how I spent this past summer, I'm really struck by how little time I spent outside.

And that was because more often than not, it was either brutally hot or it was pouring rain, or even worse, it was so smoky that I got a headache almost as soon as I came outside.

It seems that this kind of thing is becoming more and more typical of our summers

as the climate crisis drives our weather patterns to ever greater extremes.

As the Trump administration tries to put climate policy in reverse,

cities like Minneapolis need to take the lead and set an example for others to follow.

Bold climate action would have other benefits besides that climate action, of course.

As energy prices skyrocket, it would keep our energy bills affordable and predictable,

We can clean up our air inside and out, reducing asthma, heart disease, and so many other health problems.

Of course, this is going to take a lot of money.

I think there was a Star Tribune article a couple of years ago.

I'm urging you to support the franchise-free agreement.

Thanks for being here.

All right, so we have 10 speakers left, and then we have about 30, 40 minutes left of the room,

so we'll have a discussion after that and we'll recognize casimira z from ward 7.

hello council members my name is casimira i live in ward 7 and i hope that you guys support the

increase in the franchise fee i personally know what it feels like to struggle and i think that

the people in these green zones deserve better i have family in wards four and wards five one of

them has weatherized their home and their energy cost is zero whereas the other family members

that live in ward four they pay on average 200 to 300 a month and they deserve better than that

Thank you.

Thank you for your comments.

Next is Akeisha Everett followed by Sean G. and Ula Nilsen.

Hello.

My name is Akeisha Everett.

I'm a homeowner in Hawthorne neighborhood, 5th Ward, Northside Green Zone resident, executive

Director of Minneapolis Climate Action that manages the Regional Apprenticeship Training

Center at 1200 Plymouth Avenue North.

I don't know most of you, because I really don't do politics, but this coming to knowledge

has impacted me.

My home has received energy efficiency updates and retrogrades.

My organization, Minneapolis Climate Action, has also received dollars that provide clean

career workforce training for residents.

More than 200 have went through our solar PV training this year while providing stipends

and other support services.

We've added solar panels to the training center and continue to develop community solar gardens

for low-income energy subscribers.

and so I notice a lot of the manipulation

that the utilities are doing with the data.

I would just urge you guys to support this franchise fee.

Thank you.

Thank you for your testimony.

Next we'll recognize Sean.

I'm sorry, I can't pronounce your last name.

Sean Gershewski here from Ward 9

and I'm with Resilient Cities and Communities

in our Minneapolis Neighborhood Green Teams Coalition

and we've been working with neighborhood groups

across the city to help more people use the green cost share funds.

So it's important that we keep the green cost share funds going all year

and not run out in August.

If people are worried about rate increases,

let's work with Frank Hornstein, our new lobbyist,

to push back against Excel, trying to increase their rate so much.

There's key things that we can also do.

Council Member Payne would like to use some of the new franchise fee dollars

to actually pay the debt on bonds

because we could get some other bonds.

We need $100,000 a year, according to Center for Energy Environment,

to get this work done.

So we're working with neighbors in Corcoran to get home retrofits.

These air source heat pumps will be very critical when it's so hot out.

I'm working with Hiawatha Lake to get new net zero development there.

And the multifamily efficiency is also a great program.

So it gets from $10 million to $15 million.

Thank you so much.

Next is Ula Nilsen followed by Mark Arneson and Lisa Rudolph.

Hi, my name is Ula Nilsen.

I'm going to read a statement from Ottoway Pugh who is the Executive Director of the

Jordan Area Community Council.

In favor of the franchise fee, she says, I am here in favor of the franchise fee increase

and urged the City to allocate all of the additional funds to clean energy homes programs

with a priority for low-income residents.

I recently learned that the Mayor's staff has been naming Jordan Neighborhood as a reason

not to increase funding.

They are saying that because Jordan is the neighborhood with the highest energy burden

where people pay the highest energy bills, the franchise fee will hurt residents.

Nothing could be further from the truth.

The burden we are facing is already here.

My neighbors and I pay very high bills right now.

We need these programs to reduce them.

I don't have money sitting around to pay a contractor to insulate my home and then wait

for a rebate.

I can only make the improvements to lower my energy bill with programs like the sustainable

homes program that don't require any money down.

The mayor's team is also saying that we should not raise the franchise fee because the green

zones are not getting enough funding.

Green zones are not getting enough funding because the city is not putting the effort

into letting people know about these programs.

The Sustainable Homes Program is not even on their website.

Instead, they are spending their energy trying to turn the people

who can benefit most from this investment against it.

Thank you.

All right, thanks.

Next, we'll welcome Mark Arneson followed by Lisa Rudolph

and then Ken Fritzmeed.

Hello, I am Mark Arneson.

I live in Ward 6 in the Seward neighborhood.

And during this past year, I became acquainted with the climate equity plan,

funded by the franchise fee on carbon usage.

And I was immediately so impressed by a really good piece of policy,

a policy crafted to decrease our use of carbon

and a policy crafted to decrease residents' energy use costs.

So at our national night outgathering last August,

I shared this smart policy with my neighbors.

I informed them of this clean energy homes program available to them

to make the most cost-effective investments

into weatherizing their homes

and other strategies to use less carbon.

And then my neighbors shared my enthusiasm.

Many of my neighbors continued this conversation

over this last fall.

However, when it came time to actually act,

I had to share with them that the funding

for the year was already exhausted.

I could feel the frustration

almost mixed with a little cynicism.

It's like, okay, it's good policy,

but it's not actually funded in a way to be useful,

to meet the interests of our demand of our cities.

So as you make choices for next year's funding for this initiative,

know that the city's residents are very interested in decreasing

other carbon usage and in saving money.

There is demand for this program.

Thank you.

Next we'll welcome Lisa Rudolph followed by Kent Fritzmead

and then Marie Franchette.

Hi, welcome.

Thank you all for being here.

I am here on behalf of my mother, who is 95, and she lives in a senior complex near

Elliott Park, and they have no chance where they are with the last three owners of making

any clean energy upgrade as a renter on a fixed income in a ginormous complex with four

or five buildings.

She was talking to the most recent owners

about possibilities for the green cost share program.

Things, simple things, insulation, windows,

air quality, outdated electrical,

and she was hopeful, and they were hopeful,

but again, as you heard over and over again,

out of funding in big red letters here.

So I am encouraging you all to be advocates

for people who are on fixed incomes,

for seniors who have no hope of clean energy

without the council.

vote on December 11th along with those of the rest

of the council members, I encourage you to encourage them

to have a positive vote to increase the franchise fee

for everybody in Minneapolis.

Thanks for those comments.

Lisa, so we have four speakers left.

Kent Fritzmead followed by Marie Franchett,

then Lisa Franchett and then Carla Irwin.

Hi council members, Kent Fritzmead, Ward 2.

I'm here in support of increasing the franchise fees.

Clearly, as you've been hearing,

and if you pay any attention to the media,

we're in a huge climate crisis.

There's no doubt about it.

And I know that the council members have been motivated

to commit some resource to that in the past.

Clearly, two, this is an equity issue.

People most affected are those having fewer resources

to protect themselves, their families, and communities.

This involves lower income, older homes,

and many of them are renters.

So I'm asking you to vote to continue

and increase the work for climate resilience

to protect human life and well-being.

Reduce utility bills, increase comfort,

and decarbonize homes,

in particular with electric pumps and stoves.

Lastly, I'd like to counter the representative

from Centerpoint.

they have been spending millions of dollars upgrading meters and lines into

the homes they've torn up streets in Seward neighborhood over in Ward Ward 10

and in southeast Minneapolis thank you if you have additional comments you can

submit them in writing thank you appreciate your testimony next to welcome

Marie Franchette followed by Lisa Franchette and Carla Irwin and then Peter

Jordan good afternoon chair Cashman and members of the committee my name is

Marie Franchette and I'm from Ward 11 and would like to thank you all for your

leadership in passing the initial $10 million franchise fee and the Climate

Legacy Initiative program that's been rolled out by the city and especially

wanted to thank Councilmember Cashman and Kosky for your strong leadership in

moving this forward and I would like to ask all of you to support the $15 million

franchise fee increase for this year and we're gonna need more in future years

to get to all the homes in Minneapolis. And I also would like to ask that the

funds be targeted in the green zones and to clean energy home upgrades and

weatherization that really benefit low-income homes the most. And this is

important to me because I love the natural environment in Minneapolis and

Minnesota and the world and the biodiversity of this planet and climate change is destroying

all that.

You know, we've seen all record temperatures.

So we can make a huge impact in Minneapolis and be a leader.

So I encourage you to support the increase in the franchise fee.

Thank you.

Next is Lisa Franchette and then Carla and Peter.

Good afternoon committee members.

My name is Lisa Franchette.

I'm from Ward 8, and I want to encourage you to pass this ordinance to increase the franchise fees.

I came downtown today because I am worried about how a climate crisis will affect the lives of my children,

their generation, and future generations, not to mention animals and plants who aren't here to express their needs today.

My concern about the climate crisis motivated me to have solar panels installed on my roof.

Financially, I was in a situation that enabled me to do that.

I currently have negative electric bills, and we receive money back from Excel on many months.

I also had my house weatherized two years ago, and I have been impressed at how much longer it can retain the temperature, regardless of the temperature outside.

Unfortunately, many homeowners in Minneapolis do not have the means to play for clean energy upgrades.

In addition, whoops.

Thanks so much.

We appreciate your written comments being submitted too.

And then we'll welcome Carla Irwin from Ward 9

followed by Peter from Jordan.

Hello council committee members.

I'm happy to be here.

I gave up work at public school where they really need me

and I came down here, gave up pay

because I have important things to say.

I'm glad that they passed the bill to help people,

and I know people from UNITO's

who have been recipients of that,

but I still haven't gotten any help.

I'm low income, I don't sub all the time

because I'm also the caretaker for my wonderful parents,

and I have broken windows,

and I have new property tax assessments

for redoing Cedar Avenue,

and one of the reasons I work so hard is to live a good life

and so I really wanna support the franchise fee

but also ask that polluters pay

and that the corporations don't get these big cuts

because if they look within themselves,

we all do better when everyone does better.

And so I made these signs and have to go.

has released the Red Roof Depot to Epney

because I fought on that since 2008

for the Epney funds and then also give the funding needed

to UNITO's goals. Thank you so much. Thank you so much for taking the time

to be here today. So our last speaker is Peter from Jordan.

Good afternoon. First of all,

any type of franchise fee or however you want to say it,

I relate it as a tax.

So with that in mind, I want to say the following.

I fully support funding for solar panels.

Solar energy is clean, renewable,

and reduces our dependent authorization in Minneapolis,

Minnesota, Minneapolis, encouraging...

I certainly have received...

Whoops.

Sorry about that.

I flipped the page, and so I'm off script.

Anyway, solar panels reduces bills.

I would appreciate it if the Minneapolis public schools would put solar panels on the roofs

because, quite frankly, the roofs aren't doing anything.

And for the schools to reduce their electrical bills will reduce our taxes as citizens.

Thank you.

Thank you everyone who came to speak today.

I'll just do a last call if anyone did not sign up

but wishes to speak during the public hearing today.

All right, so I'm going to close the public hearing

and just thank everyone for taking time out of their day

to come and communicate and share your feedback

and your thoughts on these ordinances,

but also the rollout of these programs.

It's really important that we hear from you,

your feedback on how to improve,

to improve our communications our data collection the distribution of these new programs our progress

towards our climate equity plan so your your voice in this is very very important to us

and i want to give the opportunity here to city staff if you're willing to come up and answer

some questions about a few of the pieces of information we heard about so i do understand

that with the climate legacy initiative money that we currently have we are dedicating over 40 percent

to environmental justice areas which encompasses green zones but also low income properties and

eligible non-profits and i want to hear from you how we are quantifying that so we can really make

sure that we're being as transparent as possible and then hopefully improve on how much we're

distributing of this money in the years to come chair cashman uh thank you for the question i'd

I'd like to recognize Deputy Commissioner Patrick Hanlon

to provide some more insight on that.

Okay, welcome Deputy Commissioner Hanlon.

We may have a few slides to help.

Okay, that's great.

We have heard some updates about this in this committee

in the last few sessions and I know there's also,

you know, the SEAC and the Northside Green Zone Task Force

and the Climate Legacy Initiative Roundtable,

so there's a lot of people who have heard this information

but I think it's great if we can set some baselines here.

Sure, Chair Cashman, Council Members,

Luke is gonna help me load up a couple slides here

that I'm just gonna talk about some of our program results

that we had in our Q3 updates that we brought to Council.

This was a,

this was, sorry, if I didn't introduce myself,

Deputy Commissioner, Mayor,

or Deputy Commissioner Patrick Hamlin, not Mayor today.

And mayor of Hopkins.

This is one of the slides that we had in our Q3 update.

This is the 2025 year to date.

These are the residential investments.

And again, this is a snapshot.

That was on 1016.

So the numbers that we have now are actually a little bit more than this.

In this map of where it shows the investments, mainly in Ward 4 and 5, and then also Ward 8, in South Minneapolis,

is really if we run the numbers for all of our programs

or for using commercial and residential,

this map kind of looks the same.

And that map looks that way

because of the intentional investments,

incentives that we have in the Northside Green Zones

in low-income properties, as you mentioned,

any organizations that are serving folks in non-profits

serving folks in low-income situations.

and so it was 218 projects in green zones

or low income qualified properties.

At that point it was about 54% of funding.

I think we're up a little bit higher than that.

And again, we looked, if you add in multi-family

on this slide, on the other side of that map

looks pretty much the same.

And if I were to add commercial, it would look very similar.

And a lot of that has to do not only with the incentives

that we have, but with the intentional relationships

that we've built with folks in these communities

to get the word out.

And I would say we are far from perfect

in being able to solve this,

but that is the priority that we put

is on those relationships, on incentives,

and making it as easy as possible.

In environmental justice investments,

and again, from the beginning

of when we started this programming,

we've defined those environmental justice investments

as north side green zone, south side green zone,

and recommendations that came from the green zones

and from the Energy Visioning Advisory Committee

that was assigned to examine this issue

is to include low income, so there's folks

that are outside of those green zone areas

that also need help, and perhaps some of the folks

that came up here are some of the folks

that you heard from.

So number of EJ projects year to date for 2025 is 268.

The dollars that went towards EJ projects

are around 1.8 million.

The percentage that go to EJ projects is 60%,

And this is where you may see some of the different ways

that people are talking about the environmental justice

investments.

So 13% went to the Northside Green Zone.

And just to remind, or just to say again,

I think I said this in the Q3 update,

is that the Northside Green Zones is about 3.7%

of Minneapolis properties.

So that's far outperforming.

Those properties are far more likely to receive funding

at 13% and then 8% in the Southside Green Zones.

And again, we would love to have those numbers improve

and I think some of the tools that we're developing

for 2026 around having, with Cooperative Energy Futures

is around having no upfront cost in financing.

So to be able to, for them to deliver projects

and then folks don't have any money

that they have to pay upfront

to limit some of those barriers.

And then to continue to build on those relationships

that we've built in the north and south side green zones

to deliver those projects.

We've 38% or almost 40% has been to low income properties

and then also between 2024 and 2025

we've had 2,464 low income households benefit

from these programs.

And I wanna also just clarify,

I know today is on the franchise fees

and I'm up here just clarifying information.

This is not a budget ask.

We are clarifying the information that was put out.

We also have an email that we sent

to our Northside Green Zone.

I know that there was a comment up here

about some information that was presented

to a community member and they thought

our information was different.

The email puts into context that information

that was shared with that community member

that we're both speaking about the same thing

from different perspectives.

So I can share that as well.

and just to clarify that comment that was made.

Yeah, so I can stand for questions after all that.

Okay, thank you so much for that clarification.

I just wanna add that seven of the 10

most energy burdened neighborhoods in the city

are not actually in green zones,

and the Northside Green Zone doesn't include neighborhoods

like Jordan, Cleveland, Falwell, Harrison, et cetera.

And so there is maybe a conversation that needs to be had

about expanding the Northside Green Zone

to cover more neighborhoods,

but that's something I'll leave to the other committees

and council members who do represent that area.

So I will recognize Council Member Rainville.

Thank you.

So I have some questions that I don't expect to answer today,

but I would like to have it before the council meeting

so it'll influence my vote.

So I'm just curious, the total amount of money

that this increase would give to the commercial

and industrial users,

as well as how much this proposed increase

would be with the commercial industrial

versus the residential.

Trying to look for who's paying what.

Do you want to answer now

or would you like to have a follow up for that?

I don't have the numbers on me.

And I don't expect it.

I'm asking for this information

before the full council vote.

Yeah, I think we'd be happy to provide that.

that is provided in a memo that has been, I think,

uploaded to not this legislative file,

but the last legislative file,

and we can make sure to point you to that memo,

because I believe the numbers you're looking for

are in that memo.

Great, thank you very much.

I'll ask Clerk Michael to note that.

If it's already in the memo,

then let's just distribute that to all committee members.

Understood, I'll follow up with staff.

Thank you.

All right.

I just got in queue as well to share that there's a lot more than we need to be doing with this funding.

And one of my budget amendments this year, assuming that we pass this increase,

will be to dedicate the additional $5 million that we're expecting from it towards the sustainable homes programs

so that it's all going towards the programs that have the highest demand

that we're hearing from residents here today

is the best way to lower their energy bills.

And so that is where I'm intending for this money to go

so that next year we can deliver even more of these upgrades

to the families who need it.

And like we heard, that money ran out this year in August

and there is high demand.

And so I believe that these ordinances

are a matter of climate denial

or acknowledgement of the climate crisis.

So if we really are acknowledging the climate crisis

that we're in, we need to be funding the work

that it will take to manage it and to live through it.

So we will be continuing this item for the sake of honoring

the timelines that we have with the utilities.

So we'll not be taking a vote on this in committee today,

but rather at the Climate Infrastructure Committee

on December 4th and then the full council meeting

on December 11th.

So with that, oh, I'll recognize Council Member Osmond.

Thank you, Chair, and just wanna thank the residents

who show up and really speak the truth

on what's happening.

Thank you so much for continuing to educate us

and to be the voice that really raised this

and made this possible, this ordinance.

I do support this, and we have to continue

to make sure that we are investing

you know, green, friendly,

so people's lives can be saved.

I live one of the most polluted neighborhoods in Minnesota,

which is Phillips area,

and this kind of investment is much needed.

And thank you, Director, for coming to my community

and hosting that information session

where people are able to get in that program.

So, again, thank you, President 4-6.

I see Lisa there and many others who continue to come and advocate and speak.

Today you definitely spoke the truth, and I'm sure many people are listening,

including the energy providers in this state of Minnesota.

So thanks a lot.

And I guess we don't have to take any action.

We'll just – we're not taking action.

We're not taking action today.

Sound good.

Next, I'll recognize Councilman Chavez.

Thank you, Chair Cashman.

I'll keep it brief.

I just want to thank everybody that came and testified

in support of both of these ordinances, particularly

the Ward 9 residents who always show up

to advocate for climate justice,

to address environmental racism that

impacts the green zones here and folks that live in Minneapolis.

So I can't wait to vote for this next cycle.

I'm excited to vote for it.

Thank you so much.

So with that, I will ask Deputy Commissioner

if you can share that email with the council,

or at least with me to share out with committee members

about the Northside Green Zone information.

And with that, we'll continue this item to December 4th.

I'm seeing no further business before.

What's that?

We have to make a motion to continue.

Do we need to vote to continue it?

You can do a voice vote or a roll call.

Okay.

So on the motion to continue this to December 4th,

all those in favor, say aye.

Aye.

Those opposed say nay.

Any abstentions?

That motion carries.

Thank you.

And with that, we've concluded all business to come before the committee.

So without objection, we are adjourned.

Thank you.