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Home My WebLink About09/30/2021 - Building Review Commission - AGENDA - Regular MeetingPage 1 Alan Cram, Chair Location: Tim Johnson, Vice Chair This meeting will be held Brad Massey remotely via Zoom Katharine Penning Eric Richards Staff Liaison: Justin Robinson Russ Hovland Mark Teplitsky Interim Chief Building Official AGENDA September 30, 2021 9:00 AM Building Review Commission Pursuant to City Council Ordinance 079, 2020, a determination has been made by the Chair after consultation with the City staff liaison that conducting the hearing using remote technology would be prudent. This remote Building Review Commission meeting will be available online via Zoom or by phone. No Board members will attend in person. The meeting will be available to join beginning at 8:30 a.m. Participants should try to join at least 15 minutes prior to the 9:00 a.m.. start time. ONLINE PUBLIC PARTICIPATION:  You will need an internet connection on a laptop, computer, or smartphone, and may join the meeting through Zoom at https://zoom.us/j/92080227997. (Using earphones with a microphone will greatly improve your audio). Keep yourself on muted status.  For public comments, the Chair will ask participants to click the “Raise Hand” button to indicate you would like to speak at that time. Staff will moderate the Zoom session to ensure all participants have an opportunity to comment. PUBLIC PARTICIPATION BY PHONE:  Please dial 253-215-8782 and enter Webinar ID 920 8022 7997. Keep yourself on muted status.  For public comments, when the Chair asks participants to click the “Raise Hand” button if they wish to speak, phone participants will need to hit *9 to do this. Staff will be moderating the Zoom session to ensure all participants have an opportunity to address the Board. When you are called, hit *6 to unmute yourself. IF YOU ARE UNABLE TO PARTICIPATE ONLINE OR BY PHONE: Individuals who are uncomfortable or unable to access the Zoom platform or participate by phone may: 1) Email comments to abrennan@fcgov.com at least 24 hours prior to the meeting. If your comments are specific to any of the discussion items on the agenda, please indicate that in the subject line of your email. Staff will ensure your comments are provided to the Board. 2) Come in person to 281 N. College Avenue to utilize City technology to participate in the meeting. Please arrive 15 minutes prior to the meeting and ring the doorbell at the north entrance so that staff may escort you into the building. Masks and social distancing may be required. To participate this way, it is strongly recommended that you contact us at least 24 hours prior to the meeting so that arrangements for proper social distancing and appropriate technology can be put in place to protect the health and safety of the public and staff. Contact Aubrie Brennan at abrennan@fcgov.com or 970-416-4390. Documents to Share: Any document or presentation a member of the public wishes to provide to the Board for its consideration must be emailed to abrennan@fcgov.com at least 24 hours before the meeting. Packet Pg. 1 Page 2 The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224-6001) for assistance. CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA DISCUSSION AGENDA 1. MINUTES OF AUGUST 26, 2021 The purpose of this item is to consider approval of the minutes from the August 26, 2021 regular meeting of the Building Review Commission. 2. AFFINITY REMODELING, INC. REQUEST FOR REINSTATEMENT OF LICENSE WITHOUT PROVIDING REQUIRED TESTING DESCRIPTION: The purpose of this item is to seek a determination from the Building Reivew Commission to whether or not a license and supervisor’s certificate should be reinstated to Affinity Remodeling, Inc. and Gary York without required testing. STAFF: Sharlene Manno, Admin Services Manager 3. PROPOSED CHANGES TO THE WATER SUPPLY REQUIREMENT CASH IN LIEU FEE DESCRIPTION: The purpose of this item is to present proposed changes to the Water Supply Requirement Cash in Lieu Fee to the Board for informational purposes. STAFF: Donnie Dustin, Water Resources Manager 4. PROPOSED ADOPTION OF THE 2021 INTERNATIONAL CODES DESCRIPTION: The purpose of this item is to present proposed Building Code Changes based upon the 2021 International Building Codes to the Board for informational purposes. STAFF: Russ Hovland, Interim Chief Building Official OTHER BUSINESS ADJOURNMENT Packet Pg. 2 Date:Roll CallJohnson Massey Penning Richards Robinson TeplitskyCram VoteAbsent Present Present Present Absent Present Present5 Present, 2 Absent1 – Minutes of August 26, 2021 BRC HearingRichards Massey Johnson Teplitsky Penning RobinsonCramYes Yes - Yes Yes - Yes5-02 - Affinity Remodeling Request for Reinstatement Without Required Testing With Demotion to D LicenseMassey Johnson Teplitsky Penning Robinson RichardsCramYes - Yes Yes - Yes Yes5-03 - Proposed Changes to CIL Fee: Informational Only, NO VOTEJohnson Teplitsky Penning Robinson Richards MasseyCramN/A N/A N/A N/A N/A N/A N/A4 - Proposed Adoption of 2021 International Codes With ConditionsTeplitsky Penning Robinson Richards Massey JohnsonCramYes Yes - Yes Yes - Yes5-0Roll Call & Voting RecordBuilding Review Commission9/30/2021 Building Review Commission Hearing Date: 9/30/21 Document Log (Any written comments or documents received since the agenda packet was published.) DISCUSSION AGENDA: 1. Draft Minutes for the BRC August 26, 2021 Hearing 2. Affinity Remodeling, Inc. Request for Reinstatement of Licensure Without Providing Required Testing • None 3. Proposed Changes to the Water Supply Requirement Cash in Lieu Fee • None 4. Proposed Adoption of the 2021 International Codes • Attachment 1 – Staff Report (updated and added to the Packet 9/30/21) GENERAL CITIZEN EMAILS/LETTERS: • None EXHIBITS RECEIVED DURING HEARING: Item # Exhibit # Description: None None None Agenda Item 1 Item 1, Page 1 AGENDA ITEM SUMMARY September 30, 2021 Building Review Commission STAFF Aubrie Brennan, Administrative Assistant SUBJECT CONSIDERATION AND APPROVAL OF THE MINUTES OF THE AUGST 26, 2021 BRC MEETING EXECUTIVE SUMMARY The purpose of this item is to approve the minutes of the August 26, 2021 meeting of the Building Review Commission. ATTACHMENTS 1. BRC August 26, 2021 Minutes – DRAFT Packet Pg. 3 DRAFTCity of Fort Collins Page 1 August 26, 2021 Alan Cram, Chair Tim Johnson, Vice Chair Brad Massey Katharine Penning Eric Richards Justin Robinson Staff Liaison: Mark Teplitsky Marcus Coldiron Chief Building Official Meeting Minutes August 26, 2021 A regular meeting of the Building Review Commission was held on Thursday, August 26, 2021, at 9:00 a.m. in the Colorado River Room of the Fort Collins Utilities Building at 222 Laporte Avenue, Fort Collins, Colorado. CALL TO ORDER Chair Cram called the meeting to order at 9:01 a.m. ROLL CALL PRESENT: Cram, Johnson, Massey, Richards, Teplitsky ABSENT: Penning, Robinson STAFF: Coldiron, Manno, Guin, Neel, Katsimpalis, Brennan PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA None. DISCUSSION AGENDA [Timestamp: 9:03 a.m.] 1. CONSIDERATION AND APPROVAL OF THE MINUTES OF THE APRIL 29, 2021 MEETING. Member Richards requested the name “Roberts” be changed to Richards in the minutes. Vice Chair Johnson moved to approve the minutes of the April 29, 2021 meeting with the suggested amendments. Member Teplitsky seconded. The motion passed 5-0. [Timestamp: 9:06 a.m.] Building Review Commission ITEM 1, ATTACHMENT 1 Packet Pg. 4 DRAFTCity of Fort Collins Page 2 August 26, 2021 2. INTRODUCTION OF COUNCIL LIAISON SHIRLEY PEEL DESCRIPTION: The purpose of this item is to introduce Councilmember Shirley Peel to the Commission as the Council Liaison. Introduction and Remarks The Chair introduced Councilwoman Peel and she made some brief remarks about the importance of the role of this Commission in the forthcoming growth of Fort Collins. She stated she would be willing to come to every meeting if desired and asked the members to contact her with requests about what they need from her. Chair Cram noted Councilmember Peel should not be present for appeal hearings such as the items on the agenda today; however, he stated she will be provided minutes from every meeting. Public Input None. Board Questions and Discussion None. [Timestamp: 9:09 a.m.] 3. RDALE CONSTRUCTION, LLC REQUEST FOR LICENSURE WITHOUT PROVIDING REQUIRED TESTING DESCRIPTION: The purpose of this item is to seek a determination from the Building Review Commission on whether or not a license and supervisor’s certificate should be issued to RDALE Construction, LLC and Casey Reeves without required testing. Staff Report Ms. Manno presented the staff report as provided in the packet and noted this request is for a new license and supervisor’s certificate for RDALE Construction, LLC, without completing the required ICC testing. She stated the staff recommendation is for denial as no exceptional hardship has been found. She stated the request is for an MM license, which is a residential-only license, to work on single-family detached dwellings Applicant Presentation Mr. Casey Reeves stated he has been a builder for 25 years, half of which for other companies and half on his own. He stated he has never had a reason to pursue a license because he has owned all the projects he has completed on his own. He commented on recent projects and the referral to Governor’s Park Apartments to build carports. He stated the permits for the project have been completely approved and have addressed wind and snow loads. He stated he has never been a good test-taker and commented on the exam not being about knowledge of the Code but about finding exact Code language segments quickly. He stated he took the exam last week and got a 69; however, a passing score is 70. He stated he will retake the exam again in two weeks and asked if it would be possible to move forward on this project prior to that occurring. Staff Rebuttal Ms. Manno noted staff was not aware of Mr. Reeves having taken the exam and suggested the Commission may want to consider providing a temporary 30-day license pending the completion of the exam. Applicant Rebuttal Mr. Reeves stated a provisional license would be helpful as it would allow him to move forward with the garage project. ITEM 1, ATTACHMENT 1 Packet Pg. 5 DRAFTCity of Fort Collins Page 3 August 26, 2021 Public Input None. Board Questions and Discussion Member Johnson inquired about outstanding items, aside from testing. Ms. Manno replied staff still needs copies of permits and certificates of occupancy or final inspection for Mr. Reeves’ completed projects. Mr. Reeves stated he could provide them. Member Teplitsky asked what would occur if Mr. Reeves does not pass the exam in two weeks. Ms. Manno replied the project could start once the 30-day temporary license is granted; however, a stop work order would be issued for the project if he does not pass the exam. Mr. Reeves stated that is acceptable to him. Member Massey appreciated Mr. Reeves initiative in taking the exam and stated it makes it easier for the Commission to approve the 30-day temporary license. Board Deliberation Vice Chair Johnson made a motion to approve a 30-day temporary license once all other aspects of the licensure have been met, except for the exam, with the requirement the exam be passed within the 30-day period. Member Massey seconded. The motion passed 5-0. [Timestamp: 9:32 a.m.] (**Secretary’s Note: The Commission took a brief recess from 9:32 a.m. until 9:34 a.m. to allow Ms. Manno to converse with Mr. Reeves regarding his future temporary license.) 4. M-SQUARED HOME IMPROVEMENT REQUEST FOR REINSTATEMENT OF LICENSURE WITHOUT PROVIDING REQUIRED TESTING DESCRIPTION: The purpose of this item is to seek a determination from the Building Reivew Commission on whether or not a reinstatment should be issued to M-Squared Home Imporvements and Marty McVicker without required testing. Staff Report Ms. Manno presented the staff report as provided in the packet and noted this request is for a reinstated license and supervisor’s certificate for M-Squared Home Improvement, without completing the required ICC testing. She stated the license expired on November 14, 2019, and its renewal could have been completed up to 60 days after that date without additional testing. She stated staff is recommending denial of this request as there is no evidence of undue hardship. Applicant Presentation Mr. Marty McVicker stated he was unsure he was going to continue in the building industry when his license expired and stated he only pulls a few permits a year. Staff Rebuttal Ms. Manno reiterated the City’s position that Mr. McVicker should be denied license reinstatement without testing. Applicant Rebuttal Mr. McVicker stated he needed to leave the meeting for a prior appointment and will take the test. Chair Cram verified he was withdrawing his application, and Mr. McVicker replied in the affirmative. [Timestamp: 9:40 a.m.] ITEM 1, ATTACHMENT 1 Packet Pg. 6 DRAFTCity of Fort Collins Page 4 August 26, 2021 5. BOARD FOLLOW-UP: PROPOSED CHANGES TO WATER SUPPLY REQUIREMENT CALCULATIONS DESCRIPTION: The purpose of this item is to provide follow-up information to the March 25 presentation and receive additional feedback on the proposed changes to Water Supply Requirements Calculations, Chapter 26 of the Code of the City of Fort Colins, and the potential impacts they will have on the Building Review Process. Goals of this update include increasing accuracy and equity of the calculations and encouraging water efficient designs in development. Staff will provide an overview of the project, how the proposed calculations compare to the current system, impacts, and opportunities for future improvements. Staff Report Ms. Neel presented the staff report as provided in the packet and noted she will be seeking a motion for Council which will consider the item on September 21st. She discussed the three components relating to how new developments pay for water: the water supply requirement which covers the impact a development has on the City’s water supply, the plant investment fees which cover the impact of a development on the City’s water treatment and distribution system, and water meter fees which pay for the installation of the meter itself. She noted these proposed changes deal with the first component, and she provided additional details on the water supply requirement calculations. She stated the proposed updates to the calculations will help increase accuracy, improve equity, and promote water efficiency and innovation. Ms. Neel provided additional details on the proposed changes to the residential category, which most directly affects the building review process. The changes include an examination of the outdoor area on a lot, which is the parcel area less the impervious surfaces. She discussed the feedback received from builders and developers and stated it has generally been positive with some requests for alternative compliance options. She also discussed related future efforts including the update to cash- in-lieu costs and new residential alternative compliance options. Public Input None. Board Questions and Discussion Member Massey asked if this applies only to new construction moving forward. Ms. Neel replied in the affirmative and clarified the outdoor space calculations are derived from the provided site plans. Member Teplitsky asked about offsets for xeriscaping. Ms. Neel replied a separate irrigation tap will be required for commercial, multi-family, and business landscapes, and a water budget table is required on all landscape plans for commercial properties. She stated there are currently no landscape standards for single-family lots and provided additional details on the proposed requirements for commercial properties. Member Massey asked how speculative commercial developments will be treated. Ms. Neel replied developers will need to make a best guess on what is going into a space then adjustments will be made after it is completed. She also discussed the alternative compliance option. Chair Cram asked about the requirement for a separate water supply for sprinkler systems. Ms. Neel replied separate irrigation taps will only be required in commercial and multi-family developments. Member Teplitsky asked if Utilities revenue being lower will be offset by it paying less for water. Ms. Neel replied less future supply will result in less resources being needed to fund it. Board Deliberation Member Teplitsky made a motion that the Building Review Commission supports these changes and recommending that Chair Cram draft a letter in support for Council consideration, based on the staff report presented. Member Massey seconded. The motion passed 5-0. [Timestamp: 10:24 a.m.] ITEM 1, ATTACHMENT 1 Packet Pg. 7 DRAFTCity of Fort Collins Page 5 August 26, 2021  OTHER BUSINESS Chair Cram asked the Commission to review the time limit proposal he had provided to all members. Chief Building Officer Coldiron noted the 2021 International Code Adoption proposals will be presented at the next hearing. Chair Cram commented it will be an important meeting for members to attend.  ADJOURNMENT Chair Cram adjourned the meeting at 10:25 a.m. Minutes prepared by TriPoint Data and respectfully submitted by Aubrie Brennan. Minutes approved by a vote of the Board on _________________________________ ______________________________ Marcus Coldiron, Chief Building Official Alan Cram, Chair ITEM 1, ATTACHMENT 1 Packet Pg. 8 Agenda Item 2 Item 2, Page 1 STAFF REPORT September 30, 2021 Building Review Commission STAFF Sharlene Manno – Manager, Administration Services SUBJECT AFFINITY REMODELING, INC. REQUEST FOR REINSTATEMENT OF LICENSE WITHOUT PROVIDING REQUIRED TESTING EXECUTIVE SUMMARY The purpose of this item is to seek a determination from the Building Reivew Commission to whether or not a license and supervisor’s certificate should be reinstated to Affinity Remodeling, Inc. and Gary York without required testing. BACKGROUND Affinity Remodeling, Inc., Gary York is requesting that he be granted a license and supervisor’s certificate reinstatement without completing the required International Code Council (ICC) testing. The testing required for a Class C2 is the ICC National Standard Class B (G12). The following is what is recorded within the City’s licensing files: 3/6/1986 - Completed the 1982 UBC City of Fort Collins proctered exam with a passing score of 75% 12/6/2005 - Completed the City of Fort Collins class covering the 2003 IRC 4/8/2011 - Attened the City of Fort Collins 2009 recertification class 12/15/2011 - Attended the Green Code class through the City of Fort Collins Renewals: A courtesy renewal notice is typically sent 1-2 months prior to the scheduled expiration of any license or supervisor certificate, together with related forms. However, if the notice is not sent and/or received, it is the responsibility of the contractor to assure that the license is renewed and kept current. The license and/or supervisor certificate may be renewed provided that the biennial fee is paid and renewal occurs within sixty (60) days following the anniversary date. Once the sixty (60) days has passed, a new application must be submitted subject to the current licensing processes and procedures as outlined under the Expiration section below. If the adopted building code or other applicable code over which an examination was administered is no longer in effect or has been changed substantially, a renewing supervisor will be required to either pass a renewal examination for which no fee will be required, or provide proof of having successfully completed training covering the current adopted applicable code or the equivalent thereof as approved by the Building Official. It is imperative to keep address and other pertinent information current with the Building Services Department so that renewal notices and other information that may be sent throughout the year are received. Renewal notices are sent as a courtesy only. It is the responsibility of the license holder and/or supervisor certificate holder to track the date of expiration of his/her license or certificate. Any licenses or certificates not renewed Packet Pg. 9 Agenda Item 2 Item 2, Page 2 within the 60 day grace period will be expired and subject to the requirements listed below, whether or not a renewal notice was received. Expiration: Any license or supervisor certificate which is not renewed within sixty (60) days following the anniversary date of such license or certificate will be placed on inactive status and considered expired. A holder of an expired license or supervisor certificate may be reissued such license or certificate by submitting a new application and paying all applicable fees. Such applicant will not be required to pass a new examination if the adopted building code or other applicable code over which the same applicant passed an examination remains in effect at the time the renewed license or certificate is obtained. However, if the adopted building code or other applicable code is no longer in effect or has been substantially changed since the time the same applicant passed an exam, a new exam will be required. Staff is recommending denial of Mr. York’s request for reinstatement based on code section Chapter 15 Article V, Section 15-157(d) and Sction 15-160. RECOMMENDATION Staff recommendations are as follows: 1. The Commission may choose to approve Mr. York’s request for a license and supervisor’s certificate reinstatement without providing the required updated passing ICC testing certificate. 2. The Commission may choose to deny Mr. York’s request for a license and supervisor’s certificate reinstatement without providing an updated passing ICC testing certificate. ATTACHMENTS 1. Building Reivew Commission Appeal form 2. Mr. York’s written appeal Packet Pg. 10 Āø¼Áāòùď¢àÂ#þÓGď uď¤ď #G#ďćÅhď ©i§jď Rď}sď gÃďLýď;LIIÔîÿWď;¨ďt~y7ď ËnVď ª$#ď :*)(|v9(*85ď ½Rď:*6Z7(9x{8ď 1 Mď'ď ď¥çď ď ď wď @Sď P ď+õď ď ĈJď® ď ď ? ď Mď1 ďďFÉ'ď 4¾qď°ċfĂTâpČ £dã čUĎ[ďoď ď ? ďB ,&ď!$úď"±²³""ď´ < N ďEď&ö4óKďď$ď% ,Õ,ďF ďĉ ďH/ď Ìè.Öďrďé×'ď "ď AďÆďď ďêď &ďď 2ďØď 0 XďďDďď ď ÎĆďď Oďď ď-åďäďă 2ďďÏ&ď ïÄďÙď /ďÇďÐďû ď÷ďď Qď ď ëď .ď¿0kď +ďìðďď Ñ-ďEďď /ďAďÈď ďKďď)6ď3%3ď ď.ď ñ ď ÒíDďĄďz)5ď @Nďlď Qáď%ďďÊ ďďJď ÚďąďPď ď$ÛÍďďďOď mď !==ďB«ď!¦¡¯ď >ď<ďµ¶ďe\]^_`a >ď¬Ü%ďCď·ď +H0ďÀďC¸¹ºď»ď Ýď !ü Þ-ďb æYď ôďcĊďßď «# #ç¿#ď{tYďtuďZďćàď:ç :ttďhçh Marcus Coldiron Digitally signed by Marcus Coldiron Date: 2021.09.07 14:36:35 -06'00' ITEM 2, ATTACHMENT 1 Packet Pg. 11 ITEM 2, ATTACHMENT 2Packet Pg. 12 1 Utilities electric · stormwater · wastewater · water PO Box 580 Fort Collins, CO 80522 970.212.2900 V/TDD: 711 utilities@fcgov.com fcgov.com/utilities BUILDING REVIEW COMMISSION AGENDA ITEM SUMMARY STAFF: Donnie Dustin, Water Resources Manager DATE: September 14, 2021 SUBJECT: Proposed Changes to the Water Supply Requirements Cash-in-Lieu Fee EXECUTIVE SUMMARY: The Water Supply Requirements (“WSR”) and its associated Cash-in-Lieu (“CIL”) Fee generate the revenue used to ensure that adequate water supplies and associated infrastructure are available to reliably serve the water needs of development within the City of Fort Collins Utilities (“Utilities”) water service area. Starting in 2017, the CIL is being reviewed at least every 2 years. Staff is proposing significant changes to the WSR volume calculations to improve the precision of how we estimate the water demand of development, which were presented at the May 11 City Council work session and will be considered for adoption on September 21. In addition, there have been significant cost increases to the Halligan Water Supply Project and other water rights required for providing reliable water supplies as growth continues. Unlike most other fees, the CIL fee increase is a function of unprecedented inflation in costs. Staff proposes the CIL fee be increased approximately 60% to $68,200 per acre-foot of use at the tap to reflect these changes, which will be presented to City Council for action in November and become effective on January 1, 2022. GENERAL DIRECTION SOUGHT: •What questions or feedback does the Building Review Commission have regarding the proposed CIL fee change? BACKGROUND: Developing water supplies in Northern Colorado is complex, dynamic, and full of uncertainty. Climate change, increased competition, permitting issues, and changing growth make developing these supplies and assessing the cost to do so quite complex. The Utilities’ Water Supply and Demand Management Policy provides guidance for addressing these uncertainties through multiple means like developing additional supplies (e.g., Halligan Water Supply Project, etc.), continued water conservation efforts, and adjusting the WSR and associated CIL fee as needed to reflect changes in costs. The purpose of this agenda item is to describe the proposed changes to the CIL fee. ITEM 3 Packet Pg. 13 2 Water Service Providers in Fort Collins: Utilities water service area covers the central portion of Fort Collins. Utilities supplies water to approximately 75% of residents and businesses within the Fort Collins city limits. Water service in the surrounding areas is provided by other water providers, mainly the East Larimer County (ECLO) and Fort Collins-Loveland (FCLWD) water districts (see Attachment 1). Each water service provider has their own drivers (source of supply, development patterns) that determine their WSR calculations and CIL fee. The proposed CIL fee changes only apply to the Utilities water service area. Water Development Fees: There are three water-related development fees assessed on development in the Utilities water service area. The first is the WSR and associated CIL fee which assesses the cost to provide reliable water resources for the new water demand. The second is the water plant investment fee (“PIF”) which assesses the cost of the treatment and distribution infrastructure required to process and transport the treated water. Lastly is the tap fee, which assesses the cost of the meter and connection to the new development. The focus of this agenda item is on the WSR and CIL fee. Key Terms and Definitions: The following are definitions of the WSR and CIL fee. A complete list of terms and definitions can be found in Attachment 2. Developers, including greenfield development and redevelopment, must meet a Water Supply Requirement: • Water Supply Requirements (“WSR”): A requirement for water service from Utilities. A WSR accounts for the additional water demand, defined in gallons or acre-feet of water, brought into the Utilities water service area by a new development or redevelopment. The developer satisfies a WSR by dedicating water rights or paying cash- in-lieu of water rights to Utilities. This provides the revenue to develop reliable water resources for the development, including water rights and associated infrastructure. WSRs are in line with the City’s approach that development pays for itself. • Cash-in-lieu (“CIL”) Fee: A developer can meet a WSR by paying cash, instead of providing water rights. The CIL fee is based on the cost to meet future water needs and includes the expected cost to acquire water rights and associated infrastructure. The current cost is $42,518 per 325,851 gallons (1 acre-foot) of use at the tap and the CIL fee is updated at least every two years. Goals, Outcomes and Drivers: The WSR and CIL fee help Utilities follow the City’s strategic plan object ENV 4.4: Provide a reliable, high-quality water supply, as well as guidance from the City’s Water Supply and Demand Management Policy, by assuring cash is collected to pay for additional infrastructure or water rights needed to increase the reliable yield of the Utilities’ water supply system. Utilities is responsible for ensuring our customers have enough water today and into the future, while upholding the City approach that development and redevelopment pay their own way. As the costs of acquiring and developing water resources have increased, the cost to secure water for the ITEM 3 Packet Pg. 14 3 additional demand have increased too. Since 2018, there has been a significant increase in the costs to develop water supplies. This is not unique to Utilities – all water providers across the Front Range are facing a significant increase in costs. Most water providers are shifting to plan for populations much larger than previously expected, and at the same time, climate change is dramatically increasing the variability in water availability from year to year. Responsible water management is essential to meet the needs of Fort Collins today, and to maintain our quality of life into the future. Water Supply Requirements (“WSR”): Although not part of this agenda item, Staff is proposing significant changes to the WSR calculations to reflect water demands more granularly across varied types of development and to encourage efficient water use in new development. The key WSR changes include: • Commercial WSR being based on business type and size versus just tap size o Better reflects actual use (higher use pays more; lower use pays less) • Separating indoor and outdoor water needs o Incentivizes low water use landscapes • Elimination of the Water Supply Factor from the WSR calculations o Recognizes that elements of the factor are represented in updated yield modeling o Reduces confusion for customers who increase their water allotment The proposed WSR changes mentioned above were described in detail for the May 11, 2021 City Council Work Session (see link below for materials) and will be presented for action at the September 21, 2021 City Council regular meeting. https://citydocs.fcgov.com/?cmd=convert&vid=72&docid=3524135&dt=AGENDA+ITEM&doc _download_date=MAY-11-2021&ITEM_NUMBER=03 Cash-in-Lieu (“CIL”) Fee: Once the amount of water needed for a development is determined via the WSR calculations, the total cost can be calculated via the CIL fee (if the developer does not provide “wet” water rights, which most do not). In 2017, City Council adopted significant changes to the CIL fee methodology that became effective in 2018. Prior to that, the CIL fee had not been updated since 2001. With guidance from BBC Research & Consulting (specializing in utility fees and rates), the methodology adopted was a hybrid between incremental cost and equity buy-in approaches. An incremental cost approach only considers the additional costs needed to increase its water supply system capacity to serve new development. An equity buy-in approach places an overall value on both the existing and future water supply system to determine the CIL fee. A hybrid combination of both these methods was used since adding capacity to the water supply system depends on the addition of storage (incremental costs) and use of the existing portfolio of water supplies (buy-in portion) to make the additional capacity. Each utility determines its approach based on its own unique factors. For example, East Larimer County Water District’s (ELCO) has more of an incremental approach, Fort Collins-Loveland Water District (FCLWD) has a hybrid approach, and the City of Greeley has a full equity buy-in approach. ITEM 3 Packet Pg. 15 4 The current CIL fee method calculates the cost to increase reliable yield as the sum of: 1. Cost of future infrastructure (e.g., Halligan Water Supply Project, etc.) 2. Cost of future water rights (e.g., local ditch shares) 3. Buy-in to existing water supplies Using this methodology, the CIL fee was increased by 166% in 2017 (effective in 2018) after having not been updated since 2001. Staff committed to reviewing and updating the CIL at least every two years. A 24% increase was adopted in 2019 (effective in 2020). A standard inflationary 3% increase was adopted (with other Utility fees) in 2020 (effective in 2021). Over the last few years, there have been significant increases to the expected costs of the Halligan Water Supply Project (“Halligan”) and the cost of local water rights. Halligan costs have increased due to permitting length and complexity, rising construction costs, mitigation needs and access issues. Also, the cost of water rights has increased as much as 22 percent per year due to competition for these dwindling resources and booming development across the Front Range. The following presents the three components that go into the CIL fee methodology. 1. Cost of future infrastructure ($201.8M): Adding storage to the Utilities water supply system (via the Halligan project) will help meet a majority of the projected future needs by storing existing and future water rights at times of surplus (e.g., wet years) for use in drought years when other water supplies are diminished. The Halligan cost used in the 2019 CIL fee update was $74.1M. A Halligan cost update completed in late 2019 (after outreach on the updated CIL fee) projected a range of costs between $100M and $150M. A 30 percent design analysis of Halligan is currently being conducted (due for completion in early 2022). Early indications are that the costs will increase. Therefore, staff recommends using the upper portion of the 2019 cost analysis range ($150M). For comparison, alternatives described in the permitting for the Halligan Water Supply Project are up to 4.5 times more expensive. In addition to Halligan, there are about $5.2M of additional long-term infrastructure needs. Applying a standard 30% engineering contingency to these needs, the total estimated future infrastructure costs are $201.8M. 2. Cost of future water rights ($53.4M): Although the Halligan project is expected to address most of the Utilities water supply needs, additional water rights are required to meet projected future demands. Utilities currently plans to acquire about 150-200 additional shares in the North Poudre Irrigation Company (“NPIC”) and about 300 acre-feet of shares in other local ditch companies (referred to as the Southside Ditches or “SSD”). Costs for these shares have increased between 11-22% per year in recent years, roughly doubling their projected costs over the past five years. For example, North Poudre Irrigation Company shares have gone from $88,000 to $200,000 per share from 2017 to the present. Applying these market increases and a 30% contingency results in a total estimated future water right costs of $53.4M. 3. Buy-in to Existing Water Supplies ($264.7M): New development will be buying into and benefitting from the existing water supply portfolio that includes valuable and reliable senior direct Poudre flow rights, Colorado-Big Thompson ITEM 3 Packet Pg. 16 5 Project units and other Horsetooth Reservoir sources. Utilities’ plan for generating new water supplies requires two main components: infrastructure and wet water. Building a new or larger “bucket” isn’t valuable without water to store in that bucket. In some years our water rights yield more water than we use and therefore without storage we underutilize our portfolio. The majority of the ‘wet water’ used to generate additional supply to meet future demands will come from using the existing customers’ water supply portfolio in conjunction with the additional storage. We currently model and estimate the amount to be about 2,645 acre-feet. BBC Research & Consulting estimated that the Utilities’ water supply portfolio is worth about $3.17B, or about $100,100 per acre-foot of reliable yield. Applying this amount to the to 2,645 acre-feet of water used from existing customers water supply portfolio, the value of use of the existing portfolio is estimated to be $264.7M. Factor of Safety (20%): There are many uncertainties in developing water supplies and assessing future growth within the Utilities service area, including potential impacts of climate change, uncertainty in the ultimate costs of developing water supplies, the amount and type of development, etc. The current WSR calculations include a 1.92 water supply factor that among other things, included a 20 percent factor of safety that recognized these uncertainties. The 1.92 factor will be removed from the WSR calculations due to updated modeling that more accurately captures other variables included in the factor. This simplifies the calculation and makes it more transparent. Staff recommends the continuation of the 20 percent factor of safety by incorporating it into the CIL fee calculation instead of the WSR volume calculation. The continuation of this factor is justified considering the results of the 2019 Water Supply Vulnerability Study (“Study”) conducted by Utilities, which identified numerous risks and uncertainties that have not yet been incorporated into our water supply planning. For example, the Study indicated a 20-35 percent reduction in water supply reliability from projected temperature increases alone, which suggests this factor could even be higher than 20 % Proposed CIL fee: Combining the components of the CIL fee methodology mentioned above, the following is the calculation for the proposed CIL fee: $201.8M: Cost of future infrastructure $53.4M: Cost of future water rights $264.7M: Buy-in to existing water supplies $519.9M: Total cost to increase reliability ITEM 3 Packet Pg. 17 6 This results in about a 60 percent increase to the current cost per acre-foot of use (at the tap) of $42,518. The following table shows a comparison of the values used in the current and proposed CIL fee that briefly explains what is in the separate components and the rationale for the changes. Excess Water Use (“EWU”) Surcharge Rate: Some non-residential taps (only some commercial businesses and irrigation taps), specifically those installed after March 1984, have an allotment (annual volume of water in gallons) that is based upon the WSR that was satisfied at the time of development or redevelopment. Non- residential taps with allotments face the EWU surcharge if their annual water use exceeds their Component Includes Current Proposed Rationale 1. Cost of future infrastructure Halligan estimate + other minor needs $98.9M $201.8M Uses upper cost estimate for Halligan and increases contingency to correctly match the design phase 2. Cost of future water rights NPIC and SSD shares needed in addition to Halligan $28.2M $53.4M Reflect current market prices. NPIC shares have increased about 22% per year in recent years 3. Buy-in to existing portfolio Estimate of portfolio value, and how much future demand will utilize $40.5M $264.7M Corrects approach of basing value on least valuable water rights, and previous CIL fees. Total portfolio conservatively valued at $3.17B. Total $167.6M $519.9M Factor of Safety Considers the uncertainty in water supply planning 1.2 (in WSR calculation) 1.2 (in CIL fee calcuation) New modeling captures much of what used to be in the 1.92 factor in the WSR calculation. Retains the longstanding 20% “factor of safety”. Cost per acre-foot of use ~$42,500* ~$68,200 * - The current CIL fee includes a standard inflationary 3% increase that was adopted in 2020 (effective in 2021) without adjustments to the CIL fee components. ITEM 3 Packet Pg. 18 7 allotment, which is in addition to the standard water use rates. Customers can satisfy additional WSR to increase their allotments. The EWU surcharge provides revenue to purchase additional water supplies to account for the additional water demand over the allotment and therefore over the WSR satisfied for the property. As the EWU surcharge rate is based on the CIL fee, the EWU surcharge rate will also increase by about 60 percent from a rate of $10.39 to $16.67 per 1,000 gallons over the allotment. Utilities has programs to help customers mitigate the impact of these costs including facility audits, fixture rebates, the Landscape Water Budget program, the Xeriscape Incentive Program, and the Utilities’ Allotment Management Program, which provides eligible customers a temporary waiver from the EWU surcharges if they meet certain qualifications and submit an application detailing a project that demonstrates a long-term water reduction. Customers potentially impacted by the proposed CIL change have already been notified through outreach earlier this year. Development Impacts: The following graphs show a comparison of the current (in green) and proposed (in blue) costs for different types of development, along with a comparison with other regional water providers. Note that the other water provider amounts are only estimates and are based on 2021 rates, not any expected increases for 2022. The first two graphs compare costs for typical single-family homes and typical multifamily developments, respectively. The last two graphs compare costs for use from a ¾-inch tap for a low water use entity (office space) and a high water use commercial entity (restaurant). Under the current system, both ¾-inch tap customers would pay the same amount even though there are large differences in water use. The updated WSR calculations provide more accurate assessment of the different water uses. Although future higher water use development (like restaurants) will see a significant cost increase from the proposed changes, these changes should result in allotments that are correctly sized and avoid those future customers from being charged EWU surcharge fees each year because of an undersized tap. ITEM 3 Packet Pg. 19 8 $13,100 $21,100 $18,300 $18,400 $19,200 $29,000 $32,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Ft. Collins Utilities Current (Jan 2021) Ft. Collins Utilities Proposed (Jan 2022) Loveland (2021) Greeley (2021) Westminster (2021) East Larimer County (2021) Ft. Collins Loveland (2021) Cost, rounded to nearest $100 ($) Water Supply Costs for a Typical Single Family Home in Northern Colorado $215,700 $291,200 $240,823 $266,000 $426,400 $553,600 $873,700 $0 $250,000 $500,000 $750,000 $1,000,000 Ft. Collins Utilities Current (Jan 2021) Ft. Collins Utilities Proposed (Jan 2022) Westminster (2021) Greeley (2021) Loveland (2021) East Larimer County (2021) Ft. Collins Loveland (2021) Cost, rounded to nearest $100 ($) Water Supply Costs for Multi-Family Development in Northern Colorado ITEM 3 Packet Pg. 20 9 $38,300 $6,300 $3,600 $6,700 $39,400 $40,000 $40,200 $0 $25,000 $50,000 Ft. Collins Utilities Current (Jan 2021) Ft. Collins Utilities Proposed (Jan 2022) Westminster (2021) Greeley (2021) East Larimer County (2021) Ft. Collins Loveland (2021) Loveland (2021) Cost, rounded to nearest $100 ($) Water Supply Costs for 4,300 sqft Office or 3/4" Commercial Taps in Northern Colorado $38,300 $85,000 $39,400 $40,000 $40,200 $57,968 $59,000 $0 $25,000 $50,000 $75,000 $100,000 Ft. Collins Utilities Current (Jan 2021) Ft. Collins Utilities Proposed (Jan 2022) East Larimer County (2021) Ft. Collins Loveland (2021) Loveland (2021) Westminster (2021) Greeley (2021) Cost, rounded to nearest $100 ($) Water Supply Costs for 2,800 sqft Restaurant or 3/4" Commercial Taps in Northern Colorado ITEM 3 Packet Pg. 21 10 Summary: The proposed changes to the CIL fee reflect the unprecedented increasing costs of developing water supplies, while also addressing the uncertainty in doing so. This obtains the goal of generating adequate revenue to pay for developing reliable supplies for new development into the future, while assuring development pays its own way and avoids impacts to current customers. Although the CIL fee increase is significant, the WSR changes will help balance that out by being more reflective of actual water use and other changes will enable more opportunities for future development to lower their water use to minimize costs. NEXT STEPS: Staff will be conducting outreach to boards and commissions and stakeholders through October. Input from these entities will be shared when changes are proposed for adoption by City Council on November 2 and 16, 2021. Staff will continue to review and adjust the CIL fee as part of the City’s 2-year rates and fees adjustment cycle. Although the next update would be in 2023 (effective in 2024), staff may propose a mid-cycle adjustment depending on the outcome of the Halligan Water Supply Project 30 percent design analysis being conducted (due for completion in early 2022). Staff is planning to update the Water Supply and Demand Management Policy (“Policy”) in 2023-2024. This effort will integrate the potential impacts of climate change and other vulnerabilities (per the 2019 Water Supply Vulnerability Study) to determine new planning criteria around our water supply reliability (e.g., frequency of water restrictions, etc.). The Policy update will need to consider future water supply and conservation needs, which will likely result in revisions to the WSR and CIL fee. ATTACHMENTS: 1. Fort Collins Area Water Districts Map (PDF) 2. Definitions and Terms (PDF) ITEM 3 Packet Pg. 22 !!!!!! !!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!! !!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!! ! !!!!!!!!!!!!!! ! !!! !!!!!!!!!! !!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! ! !!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!HORSETOOTH MULBERRY SHIELDSLAPORTEUSHI GHWAY 28 7 STRAUSS CABINLAUREL MOUNTAIN DRAKE PROSPECT WILLOX TAFT HILLVINE COUNTRY C LU B SUNIGA VINE RICHARDS LAKE TURNBERRYTRILBY COUNTY ROAD 38 MULBERRY DOUGLAS ELIZABETH LEMAYMULBERRY COUNTYROAD3 8 E MOUNTAIN VISTA L I NCOLN HARMONY GR E G O RYKECHTER C OUNTYROAD 54G STATE HIGHWAY 392HARMONY VINE MASONMAINSUNIGA ZIEGLERLINCOLN COUNTY ROAD 3CARPENTERJOHNFKENNEDY COUNTY ROAD 30 HARMONY COUNTY ROAD 5COUNTY LINEINTERSTATE25COUNTY ROAD 5TAFT HILLCOUNTY ROAD 19GIDDINGSCOLLEGETIMBERLINELEMAYLEMAYLEMAYZIEGLERRIV E R SID E OVERLANDTERRYLAKEZI EGLERSHIELDSCOUNTYROAD5INTERSTATE 25TAFTHILL/ Fort Collins Area Water Districts 0 1 2 3 4 50.5 Miles Water Districts East Larimer County Water District Fort Collins Loveland Water District Fort Collins Utilities (Water) Sunset Water District West Fort Collins Water District GMA !!!!!!City Limits Major Streets Figure Updated: 10/23/2018 All boundaries are approximate ITEM 3, ATTACHMENT 1 Packet Pg. 23 Information current as of May 2021 Definitions and Terms related to Water Supply Requirements Update •Acre-foot: An acre-foot is equivalent to 325,851 gallons. One acre-foot can supply around three to four single family homes in Fort Collins per year. For comparison, the maximum volume of Horsetooth Reservoir is about 157,000 acre-feet. •Allotment: The volume of water a given tap can use per year before incurring Excess Water Use surcharges. Only non-residential taps installed after 1984 have water allotments. The allotment volume is based on the amount of Water Supply Requirement satisfied at the time of development plus any increases to the allotment paid for after development. A customer may increase their allotment at any time by paying cash or providing additional water rights. •Allotment Management Program: Provides eligible Utilities water customers with a temporary waiver from their Excess Water Use surcharges if they meet certain qualifications and submit an application detailing a project that demonstrates long-term water reductions. •Cash-in-lieu: The cash equivalent of the water supply required to meet the needs of development. The cash-in-lieu fee is based off the cost to meet future water needs and includes the expected cost to acquire water rights and associated infrastructure. The current cost is $42,518 per 325,851 gallons and is updated every two years. •Duplex: Residential buildings of two dwelling units. •Dwelling Unit: One or more rooms and a single kitchen designed for or occupied as a unit by one family for living and cooking purposes, located in a single-family or multifamily dwelling. •ELCO: East Larimer County Water District. Water district that generally serves the northeastern portion of the Fort Collins Growth Management Area. Map found here. •Excess Water Use (EWU) surcharge: A volumetric charge assessed on all water used through the remainder of the calendar year once a non-residential customer has exceeded their annual allotment. The EWU is applied in addition to the regular utility rates. This surcharge is tied to the cash-in-lieu fee for the Water Supply Requirements and is evaluated every two years. Revenue from the EWU surcharge goes toward acquiring, developing and improving Utilities’ water supplies to address the impact of customers exceeding their planned allotment. The current EWU surcharge is $10.39 per 1,000 gallons over the allotment. •FCLWD: Fort Collins-Loveland Water District. Water district that generally serves all areas south of Harmony Road in the Fort Collins Growth Management Area. Map found here. •Multifamily: Residential development with three or more dwelling units •Non-residential: All commercial, industrial, public entity, group housing, nursing homes, fraternities, hotels, motels, commonly owned areas, club houses, and pools, including HOA common spaces and irrigation accounts. •Plant Investment Fees: Water Impact Fee paid by the developer to cover the cost of transmission, treatment, and distribution of water to a new development. •Residential: Single-family, duplex, mobile / manufactured homes, and multi-family dwelling units, including fraternity and sorority multifamily housing. ITEM 3, ATTACHMENT 2 Packet Pg. 24 Information current as of May 2021 •Water Impact Fees: Fees met by developers to cover the costs of acquiring water supply, the transmission, treatment, and distribution of water, as well as installation of cost of the water meter. •Water Supply Factor (1.92): Factor historically included in Water Supply Requirement calculations to account for annual variation in water right yields, different sources of supplies, losses between water sources and the taps, and annual variations in water demands. •Water Supply Requirements (WSR): Water Supply Requirements (WSRs) are part of the Water Impact Fees met by developers to account for the additional demand created from new development. WSR is a requirement for water service from Utilities. A WSR accounts for the additional water demand, defined in gallons or acre-feet of water, brought into the Utilities water service area by a new development or redevelopment. The developer satisfies a WSR by dedicating water rights or paying cash-in-lieu to Utilities. This provides the revenue to develop reliable water resources for the development, including water rights and associated infrastructure. WSRs are in line with the approach that development pays for itself. ITEM 3, ATTACHMENT 2 Packet Pg. 25 Utilities Water Supply Requirements Cash-in- Lieu Fee Changes 09-30-2021 Building Review Commission Donnie Dustin, P.E., Utilities Water Resources Manager 1 2Purpose • What questions or feedback does the Building Review Commission have regarding these changes? Proposed changes to the Cash-in-Lieu Fee ITEM 3, ATTACHMENT 3 Packet Pg. 26 3Bottom Line Proposal • Increase Cash-in-Lieu (CIL) fee to $68,200 per acre-foot • Current fee is ~$42,500 per acre-foot Reasons • Significant water supply cost increases • Consider uncertainties in developing water 4Water Supply Planning Uncertainty in water supply development • Increased competition; permitting issues; changing growth; climate change Utilities plans for these uncertainties • Additional supplies (e.g., Halligan Water Supply Project) • Continued water conservation Proposed fee change address needs and changing conditions/information • Captures the cost to plan and manage our water ITEM 3, ATTACHMENT 3 Packet Pg. 27 Fort Collins Area Water Districts 5 Proposed changes would apply only to new development and re-development within Fort Collins Utilities water service area. 5 HORSETOOTH RESERVOIR How Development Pays for Water 6 PLANT INVESTMENT FEES (PIF) DISTRIBUTION WATER TREATMENTWATER TREATMENT TAP FEES (Water Meters)WATER METERS WATER SUPPLY REQUIREMENTS (WSR) Source of Supply, which includes water rights, storage and transmission CACHE LA POUDRE RIVERWATER SUPPLY WA SU HORSETOOTH RESERVOIR WWWWWWWWWATER SUPPLY REQUIREMENTS (WSR) Source of Supply, which includes water rights, storage and transmissisisisisisisisiononoooooo ITEM 3, ATTACHMENT 3 Packet Pg. 28 7What are Water Supply Requirements? Development Additional Water Demand Water Supply Requirements (WSR) Volume of water needed to meet additional demand Cost of water supplies (cash-in-lieu) Total WSR Cost Cost of water supplies (cash-in-lieu) 8What are Water Supply Requirements? Development Additional Water Demand Water Supply Requirements (WSR) Translated to water allotments for commercial and irrigation customers t ITEM 3, ATTACHMENT 3 Packet Pg. 29 Goals, Outcomes and Drivers Why? • Ensure adequate water supply for future customers • Avoid impacts to existing customers What has changed? • Significant water supply cost increases • Consider uncertainties in developing water 9 GOAL: assess development the cost of providing reliable water supplies “Development pays its own way” Water Supply Requirement (WSR)10 Volume of Water Required ITEM 3, ATTACHMENT 3 Packet Pg. 30 WSR Changes Significant outreach in 2020-21 to developers/other stakeholders Changes include: • Tap size-based to business type-based • Separate irrigation taps Elimination of water supply factor • Elements better represented in modeling • Avoids customer confusion 11 Cash-in-Lieu Fee (CIL) 12 Cost of the Water ITEM 3, ATTACHMENT 3 Packet Pg. 31 13CIL Fee Methodology $XXXM: Cost of future infrastructure $XXXM: Cost of future water rights +$XXXM: Buy-in to existing water supplies ______________________________________ $XXXM: Total cost to increase reliability How much will it cost to increase reliability? Future supplies do not provide adequate reliability without the existing portfolio. $g ++++++$$$$$$$XXXM: Buy-in to existing water supplies Cost of Future Infrastructure $150M: Halligan Water Supply Project costs + $5.2M: Costs of additional infrastructure needs + $46.6M: 30% standard engineering contingency __________________________________________ $201.8M: Total cost of future infrastructure 14 ITEM 3, ATTACHMENT 3 Packet Pg. 32 Cost of Future Water Rights $35.6M: North Poudre Irrigation Co. shares + $5.5M: Southside Ditch shares + $12.3M: 30% contingency ____________________________________ $53.4M: Total cost of future water rights 15 Buy-in to Existing Water Supplies New development benefits from use of existing portfolio • Valuable senior rights and Horsetooth Reservoir sources • Existing rights fill Halligan project Previously based on historic/long-term CIL fee (lesser value rights) Revised to include value of all existing water sources • Only a portion of a portfolio worth about $3.17B 16 ITEM 3, ATTACHMENT 3 Packet Pg. 33 Buy-in to Existing Water Supplies 2,645: use of existing water supplies (acre-feet) x $100,100: per acre-foot value of existing portfolio __________________________ $264.7M: Buy-in to existing water supplies 17 18Future Water Supply Needs $201.8M: Cost of future infrastructure $53.4M: Cost of future water rights +$264.7M: Buy-in to existing water supplies ______________________________________ $519.9M: Total cost to increase reliability How much will it cost to increase reliability? ITEM 3, ATTACHMENT 3 Packet Pg. 34 Factor of Safety Historic WSR included a 20% factor of safety in amount requested • Recognized uncertainties in water supply development Propose inclusion of this factor in the CIL fee • 2019 Water Supply Vulnerability Study • Identified many uncertainties not in planning yet 19 Factor of Safety = 1.2 Proposed Cash-in-Lieu Fee Current cost per acre-foot of use: $42,518 $16.67: Proposed Excess Water Use Surcharge per 1,000 gallons over allotment (current = $10.39) 20 Cost to Increase Reliability Increased Reliability xFactorofSafety =$519.9ܯ 9,150 ܣܨ ݔ 1.2 =̈́૟ૡ,૛૙૙ /ࢇࢉ࢘ࢋ െ ࢌ࢕࢕࢚ ITEM 3, ATTACHMENT 3 Packet Pg. 35 Cost Impacts 21 Development Impacts 22 $13,100 $21,100 $18,300 $18,400 $19,200 $29,000 $32,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Ft. Collins Utilities Current (Jan 2021) Ft. Collins Utilities Proposed (Jan 2022) Loveland (2021) Greeley (2021) Westminster (2021) East Larimer County (2021) Ft. Collins Loveland (2021) Cost, rounded to nearest $100 ($) Water Supply Costs for a Typical Single Family Home in Northern Colorado ITEM 3, ATTACHMENT 3 Packet Pg. 36 23 $215,700 $291,200 $240,823 $266,000 $426,400 $553,600 $873,700 $0 $250,000 $500,000 $750,000 $1,000,000 Ft. Collins Utilities Current (Jan 2021) Ft. Collins Utilities Proposed (Jan 2022) Westminster (2021) Greeley (2021) Loveland (2021) East Larimer County (2021) Ft. Collins Loveland (2021) Cost, rounded to nearest $100 ($) Water Supply Costs for Multi-Family Development in Northern Colorado 24 $38,300 $6,300 $3,600 $6,700 $39,400 $40,000 $40,200 $0 $25,000 $50,000 Ft. Collins Utilities Current (Jan 2021) Ft. Collins Utilities Proposed (Jan 2022) Westminster (2021) Greeley (2021) East Larimer County (2021) Ft. Collins Loveland (2021) Loveland (2021) Cost, rounded to nearest $100 ($) Water Supply Costs for 4,300 sqft Office or 3/4" Commercial Taps in Northern Colorado ITEM 3, ATTACHMENT 3 Packet Pg. 37 25 $38,300 $85,000 $39,400 $40,000 $40,200 $57,968 $59,000 $0 $25,000 $50,000 $75,000 $100,000 Ft. Collins Utilities Current (Jan 2021) Ft. Collins Utilities Proposed (Jan 2022) East Larimer County (2021) Ft. Collins Loveland (2021) Loveland (2021) Westminster (2021) Greeley (2021) Cost, rounded to nearest $100 ($) Water Supply Costs for 2,800 sqft Restaurant or 3/4" Commercial Taps in Northern Colorado Proposed CIL fee reflects cost to provide reliable supplies • Assures development pays its own way • Considers various uncertainties Revised WSR calculations reflect use more accurately • Data-driven approach • Higher use pays more; lower use pays less • Flexibility to lower use/costs (e.g., lower water use landscapes) Summary 26 ITEM 3, ATTACHMENT 3 Packet Pg. 38 Next Steps September 21 WSR changes to City Council September-October Stakeholder Outreach November 2 and 16 City Council 27 Timeline Next Steps Continue 2-year rate/fee change cycle • Consider increase after Halligan design milestone in 2022 (effective 2023) Water Supply & Demand Management Policy Update (Anticipated launch - 2023) • Integrate potential impacts of climate change • Determine planning criteria (e.g., reliability, frequency of water restrictions, etc.) • Consider future water supply and/or conservation needs • Revise WSR and CIL fee as needed 28 ITEM 3, ATTACHMENT 3 Packet Pg. 39 For Questions or Comments, Please Contact: THANK YOU! Donnie Dustin ddustin@fcgov.com, 970-416-2053 29 ITEM 3, ATTACHMENT 3 Packet Pg. 40 Agenda Item 4 Item 4, Page 1 STAFF REPORT September 30, 2021 Building Review Board STAFF Russ Hovland, Interim Chief Building Official SUBJECT Ordinances, including local amendments, relating to the adoption of the, 2021 International Building Code (IBC) 2021 International Residential Code (IRC) 2021 International Mechanical Code (IMC) 2021 International Fuel Gas Code (IFGC) 2021 International Energy Conservation Code (IECC) 2021 International Existing Building Code (IEBC) 2021 International Swimming Pool and Spa Code (ISPSC) 2021 International Property Maintenance Code (IPMC) Colorado Plumbing Code The most current edition of the IPC has been reviewed and adopted by the State of Colorado with their amendments and become the Colorado Plumbing Code. Fort Collins adopts and enforces this code with some local amendments as well. EXECUTIVE SUMMARY The 2021 International Codes (2021 I-Codes) represent the most up-to-date, comprehensive, and fully integrated body of codes regulating building construction and systems using prescriptive and performance-related provisions. The purpose of these codes is to establish the minimum construction requirements to safeguard the public health, safety, and general welfare by regulating structural strength and stability, sanitation, light and ventilation, energy conservation, and property protection from hazards attributed to the built environment within the City of Fort Collins. BACKGROUND Since 1924 the City of Fort Collins has periodically reviewed, amended, and adopted the latest nationally recognized building standards available for the times. The City has updated the minimum construction standards 16 times since 1924. The 2021 International Codes will replace the 2018 editions of the IBC, IRC, IMC, IFGC, IECC, IEBC, ISPSC, and CPC all of which were adopted on January 12, 2019. Building codes and standards are reviewed and voted on by code officials and construction industry professionals from across the country and published every three years under the oversight of the International Code Council (ICC). These core 2021 I-Codes represent the latest construction publications from ICC. Review process The implementation of new building standards can have a dramatic impact on the construction industry and the economy of the community. To better understand these impacts, a code review committee is convened to review the new codes and all local amendments. The code review committee represents a wide spectrum of volunteers Packet Pg. 41 Agenda Item 4 Item 4, Page 2 from across the local construction industry including private developers, residential and commercial builders, architects, engineers, representatives from the energy conservation sector and Poudre Fire Authority. The code review committee met regularly from May to September 2021 to discuss new code, proposed amendments, and current amendments. This committee will vote on support and move for adoption of the 2021 I-Codes and amendments in September or October. While this review process requires considerable time and resources, it produces enforceable and effective building codes and amendments that the community and construction industry support and create together. New code changes and proposed local amendments: A handful of new amendments are being proposed some of which support the City’s sustainability and Climate Action Plan goals. Also some current amendments are now in the new 2021 code as written (codes have caught up to us) and have been deleted, while other amendments that did not have the intended results or were shown to be ineffective and costly to the construction industry were deleted. Cost Impacts of adopting the new 2021 I-Codes: Energy code: • Residential house cost increase is projected to be $5056 for CZ 5 per DOE’s National Cost Effectiveness of the Residential Provisions of the 2021 IECC or $10,488 for CZ 5 per NAHB’s 2021 IECC Residential Cost Effective Analysis. • 2021 residential provisions of the energy code is projected to provide residential life cycle cost savings of $1034 per dwelling unit for CZ 5 per DOE’s National Cost Effectiveness of the Residential Provisions of the 2021 IECC and improve energy cost savings by 10.48% for CZ 5 per NAHB’s 2021 IECC Residential Cost Effective Analysis. • Commercial building incremental construction cost for Colorado is projected to decrease by $1.044 per sq/ft of building area as referenced in the DOE’s Cost-Effectiveness of ANSI/ASHRAE/IES Standard 90.1-2019 for Colorado. • 2021 commercial provisions of the energy code are projected to net life cycle cost savings for publicly and privately owned commercial buildings in Colorado by an average of $3.30 per sq sq/ft of building area as referenced in the DOE’s Cost-Effectiveness of ANSI/ASHRAE/IES Standard 90.1-2019 for Colorado. Other codes: IBC new code changes: • New mass wood construction type allows high-rise construction with engineered or mass wood members. No data available on construction costs. IBC proposed new amendments: • Fine for working without the required permit to raise from min of $50 to $500. The low $50 fine was not an effective deterrent. • Lower water consumption on new residential water closets (toilets) from 1.28 gallon per flush (gpf) to 1.1gpf. No cost increase – 1.1 GPF toilets are comparable to 1.28 GPF, they have a similar range in cost. 21 MG/year at full GMA build out is current annual estimated water savings. 372 models from 41 brands. • Faucets in public buildings (non-residential) will be required to be metered to reduce water consumption. Not cost increase for basic manual metered faucet. IRC new code changes: • Test radon reduction system. Short term test is $100 with 3-day turnaround. If test result above 4pc then fan installation required. IRC proposed new amendments: • Class I vapor retarder on frame walls no longer required. Will decrease cost of construction $300-$400. Packet Pg. 42 Agenda Item 4 Item 4, Page 3 • Visitable accessibility requirements in bathrooms in new dwelling units. A bathroom group or half bath must be of a size and door width to meet accessible needs. Also blocking installed in the walls that allow future installation of grab bars. IECC proposed new amendments (and IRC chap 11): • Window u-value will go change from .30 to .28 U-factor. Will increase cost of construction as much as $30- $70 per window. • Compactness of hot water distribution system. Will not increase and/or may decrease cost of construction. • Electric readiness $? IECC new code changes • The proposed prescriptive code path changes are estimated to improve energy efficiency in residential houses by 10%. • R-49 to R-60 attic insulation. Will increase cost of construction approximately $380-610. • R-30 wall insulation, R-20+5ci may increase cost of construction up to as much as $4970 (sq ft dependent). • Required air tightness testing of all duct systems an increase of $125-$257. • Floor cavity R-38. Will increase cost of construction $25-60. • Adoption of Solar Ready Appendix CB/RB. Will not increase or decrease cost of construction. Proposed code requirements or amendments that were rejected/denied by the committee: • Upgraded residential landscaping irrigation standards, review, and inspections. • Electric vehicle charging in multi-family & commercial parking lots. This was considered to be too costly to require and not sure city electric infrastructure can meet the need of increased electric usage. • Electric vehicle empty conduit change to wired-in ready in garage. Cost of material $100, cost of City utility service upgrade from 150amp to 200amp is approx. $400. Not all existing city residential lots can be provided with 200amp service. • Fire sprinkling new single family detached houses. See additional details. o PFA response time is excellent. Majority of PFA calls are not fire related. o Loss of life in house fires if very low, couple per year. o Fire affects 1 dwelling, not many. o Plumbers will not design so Uponor is monopoly. o 3 different water districts have different tap/meter requirements. o Added city staff time for plan review and inspections. o Adds approx. 2% to cost of house. o PFA has requested that all new homes be fire sprinkled as directed in the IRC. o Suggest we convene a committee of stakeholders in 2022 or 2023 to iron out these issues to prep for possible adding in fire sprinklers in the 2024 code. • ERV/HRV system requirement for all whole dwelling ventilation. Additional $300 to $3000 per dwelling. The cost assumptions above were determined using research by other jurisdictions. out to the tradespeople who would be involved with the code requirement such as electricians, plumbers, mechanical contractors, and fire- suppression contractors. Supply houses were contacted for an estimate of off-the-shelf materials. CITY FINANCIAL IMPACTS Alterations to, or new construction of City owned properties will have to comply with the provisions of the 2021 I-Codes. The scope of work to be performed will determine the financial impact to the City. In general, there are no Citywide financial impacts expected with the adoption of the 2021 I-Codes. Community Development and Neighborhood Services (CDNS) will purchase new building code books and staff training on the new codes is mostly accomplished in-house. When possible, staff will attend code classes that are offered at various times throughout the year. CDNS expects these costs to be absorbed into the current CDNS budget: Packet Pg. 43 Agenda Item 4 Item 4, Page 4 2021 BUILDING CODE ADOPTION REVIEW COMMITTEE Name Company Phone Alan Cram Cram Services; BRB Chair 303-588-8633 Sarah Carter Poudre Fire Authority 970-416-2871 Brad Smith City Staff, Utilities/Plan Review 970-416-4321 Brian Kelly Toll Bros. 970-305-0474 Ceri Jones Triton Communities 970-567-9717 Charlie Atwood Hartford Homes 970-556-5756 Jon Tschetter Hartford Homes Eric Fried CBO, Larimer County 970-4987705 Jeff Schneider Armstead Construction; P&Z Chair 970-566-9971 Stace McGee Equiterra Design/Green Insight 505-720-3680 Mike Doddridge Doddridge Construction 970-218-3210 Mike Missimer MGI Mechanical Services 970-310-9232 Paul Higman GS Services 970-449-1612 Marcus Coldiron City Staff, Interim CBO 970-416-2326 Russell Hovland City Staff, Interim CBO 970-416-2341 Everitt Pettit Wellington Fire Protection Dist Steve Steinbicker Architecture West 970-207-0424 Jim Meyers Southwest Energy Efficiency Project 303-974-7243 Greg Black Colorado Lic. PE 970-213-1824 BOARDS AND PUBLIC OUTREACH The 2021 I-Codes with proposed amendments have/will be presented to numerous boards and commissions: Board of Realtors Water Board Energy Board Commission on Disability Natural Resource Advisory Board Poudre Fire Authority Board Building Review Commission Affordable Housing Board Air Quality Advisory Board Northern Colorado Home Builder Association Chamber of Commerce STAFF RECOMMENDATION At this time Staff is not asking for an official vote or letter of support. This process is an informational update and outreach for feedback on adoption of the 2021 International Codes and local amendments. Packet Pg. 44 9/30/2021 1 2021 Building Code Update 09-30-2021 Russ Hovland Chief Building Official Kirk Longstein Energy Services Project Manager Brad Smith Energy Services Project Manager 2Building Codes and City Council Background • The International Code Council (ICC) generates a new International Building Code every three years through the ICC Code Development Process Bottom line • City Staff is recommending City Council update the current 2018 codes to the 2021 I-Codes • Staff also recommends City Council adopt local amendments in addition to the 2021 I-Codes consistent with City Plans and Policies (e.g. City Strategic Plan, Our Climate Future, Housing Strategic Plan, Water Efficiency Plan) 1 2 ITEM 4, ATTACHMENT 1 Packet Pg. 45 9/30/2021 2 3Purpose: 2021 I-Codes + Local Amendments The 2021 International Codes (I-Codes) represent the most up-to-date body of codes regulating building construction •Purpose: Safeguard public health, safety, and general welfare by regulating structural strength and stability, sanitation, light and ventilation, and energy conservation •Local Amendments are used to implement measures with strategic alignment to Citywide plans and policies above and beyond those in the I-Codes A family of nine codes •2021 International Building Code (IBC) •2021 International Residential Code (IRC) •2021 International Mechanical Code (IMC) •2021 International Fuel Gas Code (IFGC) •2021 International Energy Conservation Code (IECC) •2021 International Existing Building Code (IEBC) •2021 International Swimming Pool and Spa Code (ISPSC) •2021 International Property Maintenance Code (IPMC) •Colorado Plumbing Code 42021 Building code update approach Fort Collins steps to building code adoption Code review committee May-Sept 2021 Staff reviewICC code release 12 Boards & Commissions Sept & Oct 2021 Council Work Session Nov 9, 2021 3 4 ITEM 4, ATTACHMENT 1 Packet Pg. 46 9/30/2021 3 5Benefits: 2021 I-Codes + Local Amendments Benefits of adopting the recommendations • Stay on track with 3-year code cycle to maintain steady improvements • Adoption of more recent I-codes will maintain a high ISO insurance rating • Alignment with Citywide policies • Energy • Improves residential efficiency by 9.4% and commercial efficiency by 5.4% • Support grid responsive homes, businesses and electric vehicles • Facilitate adoption of efficient electric equipment • Health and resilience • Improved building requirements for indoor air quality and radon • Improved buildings that allow sheltering in place during climate events • Growth and modernization • Reduce water demands to ensure a resilient supply • Allow construction types for taller height mass timber buildings • Improved accessibility 62021 Building Code Changes and Code Committee Review 2021 I-Code package of nine codes (supported): • The Code Committee supports adopting these nine codes with some deletions and modifications Changes in the new 2021 codes: • Energy code changes such as improved insulation R-values and window U-values, increased equipment and lighting efficiencies are projected to increase energy efficiency by 9.4% for residential and 5.4% for commercial. • Adoption of solar ready code appendix for commercial and residential • Test radon reduction system. If test result above 4pCi/L then fan installation required Existing amendments: • Some current local amendments are now incorporated into the new 2021 codes as written, as a result, several amendments have been removed, as they are no longer necessary • Keep local amendment the deletes fire sprinkler system for new detached houses (supported) 5 6 ITEM 4, ATTACHMENT 1 Packet Pg. 47 9/30/2021 4 7Amendments and Code Committee Review New local amendments • Improvements to building envelope thermal performance such as duct testing (supported) • Electric readiness for space and water heating (supported) • Water conservation thru improved plumbing design & lower water usage in toilets & public faucets (supported) • Electric vehicle parking spaces required in new multi-family and commercial buildings (not supported) • Electric vehicle charging outlet required in new house garages (not supported) • EV charging retrofit required for existing building if renovated more than 50% (not supported) • Work without the required permit fine to change from $50 to $500 (supported) • Remove required vapor retarder in walls (supported) • Improved accessibility through visitability requirements in housing (not reviewed) 8I-Codes + Local Amendment Code Review Committee Feedback Council work session or adoption 8 Concerns…………………………….……………………………………SupportConcerns…………………………….……………………………………Support Uncertainty with Utility Light and Power capacity to meet EV and increased elec requirements Reduce Utility bill cost burden Undue cost burden on Builders housing affordability Uncertainty with Building Services capacity to meet requirement Concerns…………………………….……………………………………SupportConcerns…………………………….……………………………………Support More resilient building product and improved consumer choices 7 8 ITEM 4, ATTACHMENT 1 Packet Pg. 48 9/30/2021 5 92021 I-Code + Water & Energy Efficiency Local Amendments Tradeoffs Impacts the costs of living in the community by increasing the sale price of a new building Added costs put downward pressure on developer’s ability to provide housing opportunities Mitigations Impacts the economic conditions of underrepresented populations through Utility Cost savings Homeowners may receive a discounted insurance premium. e.g., ISO rating Key Alignment: • Alignment with Our Climate Future and Housing Strategic plans, including the community’s preparedness for climate change risks and other natural disasters Environmental Economic Social 102021 Building code update Question for Boards and Commissions: •Do you support the recommended updates to the 2021 I-Codes and Local Amendments as proposed? •Do you have additional questions about how they align with community objectives? 9 10 ITEM 4, ATTACHMENT 1 Packet Pg. 49 9/30/2021 6 Back up Slides 12Code Review Committee Code Review Committee Feedback Incremental Cost Impact Short Description Code Review Committee $50 to $500 Fine for working without the required permit to raise from min of $50 to $500. The low $50 fine was not an effective deterrent.Accept neutral Lower water consumption on new residential water closets (toilets) from 1.28 gallon per flush (gpf) to 1.1gpf.Accept neutral Faucets in public lavatories/buildings (non-residential) will be required to be metered to reduce water consumption.Accept ($300-$400) cost decrease Class I vapor retarder on frame walls no longer required.~ CFC amendment Accept $30-$70 per window Window u-value improvement from .30 U-factor to .28 U-factor.~ CFC amendment Accept neutral Compactness of hot water distribution system. Will not increase and/or may decrease cost of construction.~ CFC amendment Accept $380-$610 R-49 to R-60 attic insulation.Accept up to $4970 (sq ft dependent).R-30 wall insulation, R-20+5ci, R-26 to include R-3ci Accept $125-$257 Required air tightness testing of all duct systems Accept $25-60 Floor cavity R-38. ~ CFC amendment Accept neutral Adoption of Solar Ready Appendix CB/RB ~ CFC amendment Accept $10 (wider doors) "Visitable" first floor within dwellings - min 32" clear passage to first-floor bath or half bath, reinforced wall in half-bath or bath, accessible locations for lighting and environmental controls, lever handles on interior doors No comments from the CRC currently 11 12 ITEM 4, ATTACHMENT 1 Packet Pg. 50-1 9/30/2021 7 13Code Review Committee Code Review Committee Feedback Incremental Cost Impact Short Description Code Review Committee $100-$450 Radon test requirement and/or mitigation thru fan installation as result of failed test – revision of code thru amendment.Accept $2372 Construction cost increase to build new house from 2018 to 2021 energy code, DOE. $1316 Construction cost increase to build new multi-family per unit from 2018 to 2021 energy code, DOE. $8353 Construction cost increase to build new house from 2018 to 2021 energy code, NAHB. +2.37%Construction cost increase to build new house from 2018 to 2021, does not include energy code, Tallahassee FL. +0.47%Construction cost increase to build new commercial from 2018 to 2021, does not include energy code, Tallahassee FL. 14Code Review Committee Code Review Committee Feedback – Electric Vehicle Charging Infrastructure Incremental Cost Impact Short Description Code Review Committee $500 Single Family new construction - Electric vehicle ready with 200amp service to house. Not required if an upgrade of an existing transformer is required. Based on CRC feedback, staff is proposing alternatives - No comments from CRC at this time Average Capable= $300 EV ready=$1300 Chargers=$2500 per parking space. Existing bldg.: Capable=$2500 EV ready=$6300 Commercial New Construction: Multifamily/Industrial/Commercial new development must comply with the requirements below unless a transformer upgrade is required 5 percent (5%) of total parking spaces shall be EVSE-Installed Spaces 15 - 20percent (depending on Use type) of total parking spaces shall be EV-Ready Spaces, 15 - 40 precent (depending on Use type) of total parking spaces shall be EV-Capable Spaces. Commercial Existing Buildings that provide on-site parking and undergo a renovation or alteration in which the scope of work is more than 50% of the total building area shall provide at least one EVSE- installed space. (data from 2019 Denver EV bldg. code proposal). Based on CRC feedback, staff is proposing alternatives - No comments from CRC at this time 13 14 ITEM 4, ATTACHMENT 1 Packet Pg. 50-2 9/30/2021 8 15Life Safety Code Section proposals Life Safety 16 Keep local amendment to not require fire sprinkler systems in new single family detached houses. Continue to require in duplexes and attached townhouses. R313.2 One- and two-family dwellings automatic sprinkler systems. An automatic sprinkler system shall be installed in one- and two-family dwellings. • PFA response time is excellent. Majority of PFA calls are not fire related. • Loss of life in house fires if very low, couple per year. • Fire affects 1 dwelling, not multiple dwellings. • Plumbers will not design so Uponor is monopoly. • 3 different water districts have different tap/meter requirements. • Added city staff time for plan review and inspections. • Adds approx. 2% to cost of house. • PFA has requested that all new homes be fire sprinkled as directed in the IRC. • Suggest we convene a committee of stakeholders in 2022 or 2023 to iron out these issues to prep for possible adding in fire sprinklers in the 2024 code. 15 16 ITEM 4, ATTACHMENT 1 Packet Pg. 50-3 9/30/2021 9 17Visitability Code Section proposals Housing strategy - Visitablity 18 Application.An applicant for a permit to construct a new dwelling unit with habitable space on the first story shall designate at least one bathroom group or half bath on the first story that must be designed and constructed to meet visitability requirements of Section R320.1 . Visitability: Bathrooms within dwelling units.A bathroom group or half bath designated for visitability under Section R320.1 must have a minimum clear opening of 32 inches. Visitability: Wall reinforcement.A bathroom group or half bath designated for visitability under Section R320.1 must have reinforced walls that meet the following standards: 1. lateral two‐inch (51 mm) by six‐inch (152 mm) or larger nominal wood blocking must be installed flush with stud edges of bathroom walls; and 2. the centerline of the blocking must be 34 inches (836 mm) from and parallel to the interior floor level. Exception:Blocking is not required in the portion of the wall located directly behind the lavatory. Visitability: Lighting and environmental controls.Light switches, receptacles and other environmental controls located in a bathroom group or a half bath designated for visitability under Section R320.1 must be no higher than 48 inches above the interior floor level. Receptacles shall be a minimum of 15 inches above the interior floor level. Visitability: Routes within the dwelling unit.A bathroom group or half bath designated for visitability under Section R320.1 must be visit‐able by a route through the living room, dining room, and kitchen that provides a minimum clear width of 32 inches and any interior doors must have lever handles. 17 18 ITEM 4, ATTACHMENT 1 Packet Pg. 50-4 9/30/2021 10 Housing strategy - Visitablity 19 Visitability: Building Entrance.To the extent practicable, compliance with this section is required for a new dwelling unit with habitable space on the first floor if the unit is located within a subdivision submitted for review after [date]. An applicant for subdivision approval must identify those lots forwhich compliance with this section shall be required. For lots identified by a subdivision applicant under Subsection ‐‐‐‐‐‐‐‐,above, a new dwelling unit with habitable space on the first floor must include: a. a building entrance located at the front, side, or back of the dwelling that is served by a visit‐able route, including a walking surface from a garage, ramp, sidewalk, or public right‐of‐way that is within 200 feet of the building entrance and has a minimum net clear opening of 32 inches; and b. a no‐step entrance maximum distance between the interior floor level of the building entrance and the adjacent walking surface level may be no greater than one‐half inch. 202021 I-Codes + Local Amendments: Visitability The Local Amendments represent a strategic alignment with Citywide plans and policies. Purpose:Improve housing equity, increase accessibility, increase housing diversity/choice (Housing Strategic Plan, 2021) HSP Strategy #6: Evaluate implementation of a visitability policy. Allows easy visitation for residents with physical disabilities in new housing developments (one zero-step entrance, 32-inch doorways, and bathroom on the main floor that is wheelchair accessible). Visitable design has been shown to add minimal additional cost. Why Prioritized? Low-cost approach to leveraging additional resources and strategies to achieve City’s goal/vision. Acknowledges regional nature of housing challenges and addresses by regional/state framework. 19 20 ITEM 4, ATTACHMENT 1 Packet Pg. 50-5 9/30/2021 11 Energy Codes/IAQ 21 Code Section proposals 22Energy Code Energy Why the 2021 IECC is so important? • Lack of progress the previous two code cycles • Comprehensive improvements • Upgrades to building envelopes include improved window and insulation values • Improved mechanical equip and lighting efficiency • Adoption of solar ready code appendix for commercial and residential • Electric readiness for space and water heating • EV Infrastructure to support CFC EV Roadmap 2018 to 2021 energy code efficiency gains nearly 15% Commercial Residential 21 22 ITEM 4, ATTACHMENT 1 Packet Pg. 50-6 9/30/2021 12 23Code Updates ENERGY EFFICIENCY Prescriptive Code Path Analysis Cost % Energy Savings Annual Cost Savings Notes DOE Residential Cost Effectiveness analysis - CZ 5 Increase ~$2,400 for SF home 9.38% $173 International Energy Conservation Code (IECC) only NAHB Residential Cost Effectiveness Analysis – CZ 5 Increase ~$8,400 for SF home 10% $216 International Energy Conservation Code (IECC) only DOE Commercial Cost Effectiveness analysis - Colorado Decrease 5.4% $0.056/ft 2 ANSI/ASHRAE/IES 90.1 *closely mirrors IECC commercial Note: there are multiple prescriptive and performance-based compliance options that provide pathways with varying costs 24Water Code Section proposals 23 24 ITEM 4, ATTACHMENT 1 Packet Pg. 50-7 9/30/2021 13 Historical Plumbing Code Updates 25 2011 •Toilets: 1.28 GPF •Showerheads: 2.0 GPM •Bathroom sink: 0.5 GPM (non- residential), 1.5 GPM (residential) •Kitchen sink: 1.8 GPM 2018 •Toilets:MaP score of => 600 grams •Showerheads:1.8 GPM showerhead (down from 2.0) 2021 •Toilets:1.1 GPF toilets (down from 1.28) •Faucets:Metered in public restrooms (0.25 gallons per metering cycle) (no longer allowing non-metered 0.5 GPM) 2016 Colorado becomes a WaterSense state 26Code Updates Measure Cost Availability Water Savings Perfor- mance Exceptions Notes Residential, new construction 1.1 GPF Neutral 357 model, 41 brands - 854 gal/YR per HH - 25.6 MG/YR in GMA - 5.1 MG/YR in Utilities service area Neutral Comm. & existing res. construction still allowed 1.28 GPF wastewater flows Metered faucet for public restrooms Neutral 1786 models 25% reduction compared to non-metered Neutral Residential & Private, commercial wastewater flows Increase plumbing compactness Less n/a - 1,750 gallons/YR per HH - 52.5 MG/YR in GMA - 10.5 MG/YR for Utilities service area Positive Alternatives allowed Less design flexibility WATER EFFICIENCY 25 26 ITEM 4, ATTACHMENT 1 Packet Pg. 50-8 9/30/2021 14 EV Codes 27 Code Section proposals EV Charging Incentives Federal • 30% Tax credit for EV charger hardware and installation cost • Residential $1,000 max • Commercial $30,000 max State • Grants for Commercial and Multifamily Developers including installation and maintenance • $9,000 max Local • Annual Group Buy program - City of Fort Collins partnership with local car dealerships & non profits • discounts up to 50% MSRP 28 27 28 ITEM 4, ATTACHMENT 1 Packet Pg. 50-9 9/30/2021 15 Proposal – New Single Family Section R332 Electrical Vehicle Ready:All new single-family dwellings with an attached garage or carport shall be provided one continuous 40-amp, 208/240-Volt dedicated branch circuit for electric vehicle supply equipment that is terminated at a receptacle or electric vehicle supply equipment. 29 Proposal – New Multi-Family 3605.3 Buildings containing R1 or R2 occupancies: All new Building that include either an R- 1 or R-2 occupancies, or for buildings undergoing a change of use to an R-1 or R-2 occupancy classification that provide on-site parking shall provide electrical vehicle charging per the following: 1. 5 percent (5%) of total parking spaces shall be EVSE-Installed Spaces ($2500 each) 2. 15 percent (15%) of total parking spaces shall be EV-Ready Spaces ($1300 each), 3. 40 percent (40%) of total parking spaces shall be EV-Capable Spaces ($300 each) . 4. The total amount of required accessible parking spaces shall be removed from the total number of available spaces when calculating the required percentage of spaces for EV. 30 29 30 ITEM 4, ATTACHMENT 1 Packet Pg. 50-10 9/30/2021 16 Proposal – New Industrial/Commercial 3605.2: New Buildings:All new buildings or buildings undergoing a primary change of occupancy or use that provide on-site parking shall provide electrical vehicle charging per the following: 1. 5 percent (5%) of total parking spaces shall be EVSE-Installed Spaces 2. 20 percent (20%) of total parking spaces shall be EV-Ready Spaces. 3. 15 percent (15%) of total parking spaces shall be EV-Capable Spaces. 4. The total amount of required accessible parking spaces shall be removed from the total number of available spaces when calculating the required percentage of spaces for EV. 31 Proposal – Existing Buildings 3605.4 Existing Building: Existing Buildings that provide on-site parking and undergo a renovation or alteration in which the scope of work is more than 50% of the total building area shall provide at least one EVSE-installed space ($6300 to retrofit EV ready). Help with cost impacts for new and existing multi-family and industrial/commercial: 1. Charge Ahead Colorado, this grant program will fund 80% of project costs associated with electric vehicle charging stations, up to $9,000 for Level 2 and $30,000 for Level 3 chargers. 2. The federal government offers a tax credit for EV charger hardware and EV charger installation costs. It covers 30% of the costs with a maximum $1,000 credit for residents and $30,000 federal tax credit for commercial installs. Can still apply for installs made as early as 2017. 3. State bill SB 21-260 will provide EV charger cost assistance across Colorado (coming in 2022). 32 31 32 ITEM 4, ATTACHMENT 1 Packet Pg. 50-11 9/30/2021 17 EV Proposal – Exemptions Exemptions: 1. Type 2 Chargers reduced by up to five provided that the building includes not less than one parking space equipped with an electric vehicle fast charger and not less than one electric vehicle ready space. 2. Parking spaces associated with structures and tenant spaces intended for quick transactions, including takeout, pickup, and drop-off, having a public access area less than or equal to 300 sq.ft. shall be exempt. 3. All new and existing developments, where the EV-capacity requirements would result in the upgrade of an existing transformer, are exempt. 33 Proposal – ADA Compliance 3605.1.2 Accessibility: All Electric Vehicle Ready and Electric vehicle supply equipment (EVSE) installed spaces shall meet all requirements in Chapter 11 of this code. SECTION 1107 MOTOR-VEHICLE-RELATED FACILITIES 1107.2.1 Number of accessible vehicle spaces.(Existing language from the IBC): Not less than 5 percent of vehicle spaces on the site served by electrical vehicle charging stations, but not fewer than one for each type of electric vehicle charging stations, shall be accessible. 34 33 34 ITEM 4, ATTACHMENT 1 Packet Pg. 50-12 9/30/2021 18 Impacts on Affordable Housing 35 Cost Scenarios Impacts on Affordable Housing 36 Cost of No Action – IECC+ local amendments 35 36 ITEM 4, ATTACHMENT 1 Packet Pg. 50-13 9/30/2021 19 Impacts on Affordable Housing 37 Cost increase to an average buyer in Fort Collins will increase $16 per month Fort Collins Single Family Residential IECC Building Code update – Average Home Buyer Scenario 2018 IECC 2021 IECC National Avg Total Residential Construction Cost increase 2018 IECC to 2021 IECC (NHBA estimates)$-$ 8,326 Median Sale Price $ 515,000 $ 523,325 Down Payment (20%)$ 103,000 $ 104,665 Loan amount - 30 yr. fixed @ 3%$ 412,000 $ 418,660 Utilities cost - estimated monthly savings (DOE estimates)$-$ (18) Mortgage (P&I) - estimated monthly payment $ 2,142 $ 2,176 Average monthly residential Utility Costs $ 90.00 $ 72.00 Estimated Total Cost to Occupy - Mortgage plus Utilities $ 2,232.00 $ 2,248.00 Impacts on Commercial Real Estate 38 Reduced first costs and increased savings is due to the interaction between measures such as: • Improved building thermal envelopes reduce heating & cooling loads resulting in smaller HVAC equipment. • Fewer light fixtures are required with reduced lighting power measures. LED = reduced lighting costs and longer lamp lifespan (less replacements). • Improved mechanical equipment efficiencies result in longer equipment lifespan (ie: less cycling on/off). Fort Collins Commercial IECC Building Code update Incremental Commercial Construction Cost (CO)Avg % Energy Cost Savings Avg $ Energy Cost Savings -$1.04 / ft2 5%$0.07 / ft2 * Standard ANSI/ASHRAE/IES 90.1-2016 to Standard 90.1-2019 37 38 ITEM 4, ATTACHMENT 1 Packet Pg. 50-14 9/30/2021 20 Impacts on Commercial Real Estate 39 Multifamily developer – Real Estate Strategy EV local amendments – new construction Rebates (Charge ahead Colorado) Net Operating Income* ROI – simple payback $7,500 (3 chargers) $7,500 $1,620 <1 •*If the Building Owner includes the cost of charging a vehicle into a lease agreement, the cost of charging an EV could be considered income. •https://www.rclco.com/wp‐content/uploads/2020/03/Electric‐Vehicle‐Charging‐Station‐Strategy‐for‐Real‐Estate‐Implementation‐in‐the‐US.pdf •Rebates from Charge Ahead Colorado may also apply to maintenance costs – up to $9000 EV charging – new construction 2021 Code Adoption Review Committee 40 Name Company Phone Alan Cram Cram Services; BRB Chair 303-588-8633 Sarah Carter Poudre Fire Authority 970-416-2871 Brad Smith City Staff, Utilities/Plan Review 970-416-4321 Brian Kelly Toll Bros.970-305-0474 Ceri Jones Triton Communities 970-567-9717 Charlie Atwood Hartford Homes 970-556-5756 Jon Tschetter Hartford Homes Eric Fried CBO, Larimer County 970-4987705 Jeff Schneider Armstead Construction; P&Z Chair 970-566-9971 Stace McGee Equiterra Design/Green Insight 505-720-3680 Mike Doddridge Doddridge Construction 970-218-3210 Mike Missimer MGI Mechanical Services 970-310-9232 Paul Higman GS Services 970-449-1612 Marcus Coldiron City Staff, Interim CBO 970-416-2326 Russell Hovland City Staff, Interim CBO 970-416-2341 Everitt Pettit Wellington Fire Protection Dist Steve Steinbicker Architecture West 970-207-0424 Jim Meyers Southwest Energy Efficiency Project 303-974-7243 Greg Black Colorado Lic. PE 970-213-1824 39 40 ITEM 4, ATTACHMENT 1 Packet Pg. 50-15 9/30/2021 21 Scheduled Public Outreach and Feedback 41 The 2021 I-Codes with proposed amendments will be presented to numerous boards and commissions: Chamber of Commerce Building Review Commission Northern Colorado Home Builder Association Poudre Valley Fire Dist Board Poudre Fire Authority Board Affordable Housing Board Board of Realtors Energy Board Planning and Zoning Board Natural Resource Advisory Board Water Commission Commission on Disability 422021 Building code update Current Codes Adopted: 41 42 ITEM 4, ATTACHMENT 1 Packet Pg. 50-16 9/30/2021 22 432021 Building code update Codes under review: 43 ITEM 4, ATTACHMENT 1 Packet Pg. 50-17