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HomeMy WebLinkAboutNatural Resources Advisory Board - Minutes - 10/20/2021 NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR October 20, 2021 6:00 – 8:30 pm Via Zoom 8/18/21 – MINUTES Page 1 1. CALL TO ORDER 6:03 pm 2. ROLL CALL • List of Board Members Present - − Danielle Buttke – chair − Kevin Krause – vice-chair − Barry Noon − John Skogman − Drew Derderian − Dawson Metcalf − Samantha Williams − Hillary Mizia • List of Board Members Absent – Excused or Unexcused; if no contact with Chair has been made − N/A • List of Staff Members Present − Lindsay Ex, Staff Liaison − Honore Depew, Climate Program Manager − Donnie Dustin, Water Resources Manager − Kirk Longstein, Energy Services Project Manager − Russ Hovland, Interim chief Building Official − Brad Smith, Energy Code -Compliance Officer • List of Guests − Sydney Ziegler 3. AGENDA REVIEW • No changes 4. PUBLIC PARTICIPATION • N/A NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 10/20 /21 – MINUTES Page 2 5. APPROVAL OF MINUTES • September minutes approved unanimously 6. NEW BUSINESS a. Utilities Water Supply Requirements Cash-in-Lieu Fee Changes - Donnie Dustin − The proposal is to increase the Water Supply Requirements Cash-in-Lieu (CIL) fee to $68,200 per acre-foot from the current cost of ~$42,500 per acre-foot at the tap. The reasons for this increase are because of significant water supply cost increases and future uncertainties in developing water. − Water supply planning has many uncertainties such as increased competition, permitting issues, changing growth, and climate change. These uncertainties will require additional water supply (e.g., Halligan Water Supply Project) and continued water conservation to address the cost to plan and manage our water. − There are several water districts in the Fort Collins area. The proposed changes would only apply to new development and re-development within Fort Collins Utilities water service area. − Development within the City pays for water through Fort Collins Water Supply Requirements (WSR) that includes source of supply (Horsetooth Reservoir and Cache La Poudre River), water rights, storage and transmission, and Plant Investment Fees (water treatment and distribution). − Development requires additional water demand. The water supply requirements to meet that additional water demand is the Total Water Supply Cost. It is designed to ensure adequate water and that developers pay their own way. − City Council adopted water supply requirement changes on October 5, to change from a tap size-based to a business type based-assessment of water, and to require separate irrigation taps based on landscape use. − The cost of the water supply (Cash-in-Lieu Fee) would apply to new development but would also translate to water allotments for commercial and irrigation customers. − The proposed $519.9 million ($68,200/acre foot) cost (a 60% increase to current cost of at the tap demand) to increase water reliability consists of: − The cost of future infrastructure and water rights − Including building Halligan Water Supply Project. additional NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 10/20 /21 – MINUTES Page 3 infrastructure needs, and engineering contingency fees. Other costs would include increasing costs of current water shares and contingency − The proportional buy-in to existing water supplies. This portfolio is being updated to reevaluate all water sources − A 20% factor of safety of the reliability of the system due to uncertainties including climate change. − The Excess Water Use Surcharge per 1,000 gallons over allotment will also go up 60% from $10.39 to $16.67. − Summary: − The proposed CIL fee reflects cost to provide reliable supplies, assures development pays its own way, and considers various uncertainties − The revised WSR calculations more accurately reflect use through a data- driven approach, (higher use pays more, lower use pays less), and flexibility to lower use/costs. − Next steps: − Outreach in September-October and Council consideration November 2 and 16. − This is part of a two-year rate/fee change cycle − The Water Supply & Demand Management Policy to be updated in 2023 to reflect potential impacts of climate change − Discussion − Danielle - Q - Regarding the drought impact on the river and climate change, is a 20% uncertainty factor enough? A - The 20% in this report reflects a traditional factor as part of this package. When the Water Supply and Demand Management Policy is updated, this factor will be carefully evaluated and integrated into the policy. − Barry - Q - Suggested the City consider that water will set the limit to growth and needs to considered. The availability of water is not static with increased demand, but the availability of water is decreasing with increased demand. When will the City realize there should be an end to growth? A - Climate change is impacting water supplies. However, this question would need to be discussed and evaluated at a higher level. − Barry - Q - The city needs a planning horizon with projections of future conditions and the City should work towards those projections. A - We NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 10/20 /21 – MINUTES Page 4 have seen lower water use over time. The City's Water Resources group is using that trend to project future water needs. − Kevin - Agreed that a 20% uncertainty factor may be too low and suggested water issues are too important to underestimate the unknowns to help give citizens more confidence in water protections. − Danielle - Q - Seeing how Fort Collins' rates compare to other cities in the region, it seems there is room to safely increase the protective uncertainty factor. She suggests preparing for the time when conservation will no longer provide any benefit to demand for water. A - Our current planning criteria under the current policy is to prepare for a 1/50 drought. There is still a lot of opportunity for conservation of outdoor water usage. − Danielle - Q - When was the policy last updated? What is the timeline ask of the NRAB? A - The policy was last updated in 2012 and it is anticipated to update it again in 2023-2025. However, there are ongoing studies on various things in anticipation of that update. The presentation is informational, but if the NRAB wants to give feedback it would need to be soon. First reading by Council will be November 2. − Drew moved and Kevin seconded a motion to support an increase in the Water Supply Requirements Cash-in-Lieu (CIL) fee. In addition, the board expressed that this step is important for future water sustainability. Motion passed unanimously 8-0-0 b. 2021 Building Code Update − Background − The International Building Code (ICC or I-Codes) is updated every 3 years. City staff is recommending City Council update the current 2018 codes to the 2021 I-codes to be consistent with City Plans and Policies (e.g. City strategic Plan, Our Climate Future, Housing Strategic Plan, and Water Efficiency Plan. − The I-Codes is a family of 9 codes: Building Code, Residential Code, Mechanical Code, Fuel gas Code, Energy Conservation Code, Existing Building Code, Swimming Pool and Spa Code, Property Maintenance Code, and Plumbing Code. − The adoption process − The ICC Code is reviewed by a technical review committee, staff then does outreach to 12 boards and commissions, and will present to Council at their NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 10/20 /21 – MINUTES Page 5 November 9 work session. − Benefits of adopting the recommendations − We will stay on track with code cycle to maintain steady improvements − Alignment with Citywide polices for energy, health and resilience, and growth and modernization − New codes increase energy efficiency − Proposals to Council by the technical review committee − Support I-Code package of nine codes − Support Change in the new 2021 building codes for the City − Includes improved insulation, lighting, solar-ready code, initial radon test − Support existing amendments − Some current local amendments are now incorporated into the new 2021 codes so they will be deleted with adoption of the new code − New local amendments include improving building envelope, electric readiness for space and water heating, water conservation, electric vehicle charging, increased fines for no permit, remove vapor retarder in walls and improved accessibility to new housing. − Impacts on building industry − No studies have been done in our market for the overall cost of construction increases for the 9 codes, but staff has estimated it would be approximately 1% - 2% that would likely be passed on to the consumer. − The National Association of Homebuilders estimates an increase of $8,326 for energy efficiency upgrades which would add an average of $16/month to mortgages. − Review Committee feedback − Concerns - increased first year construction costs, Utilities Light and Power's ability to meet EV and increased electricity requirements, and housing affordability − Support - Alignment with City Plans and policies, more resilient building product and avoided retrofit costs, and reduce utility bill cost burden − The local amendments were also reviewed relative to the triple bottom line: Environmental, Social and Economic direct and indirect impacts to the NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 10/20 /21 – MINUTES Page 6 community. − Discussion − Dawson - Q - Can you expand on the concern around EV infrastructure in homes? A - Making a single-family home EV ready would be an incremental construction cost. Making a commercial facility EV ready would be determined by the size of the parking lot. Retrofits would be more expensive than initial infrastructure installation. − Kevin - Q - Can you expand on electric baseboard heat. Are the additional envelope measures still required? A - Part of the larger changes to electric readiness is so Utilities can plan for future appliance fuel switching from fuel fired appliances to electric. If electric heat is to be used it has to be a cold climate heat pump or ground source heat pump. Electric resistance heat is only allowed on very low energy use homes. − Kevin - Q - Can you expand on whether or not the increased R values for electric heat will still be required or not? A – With the increased envelope provisions in the new code and with a requirement that electric heat now be heat pump technology we’ve removed the electric resistance heat envelope requirements. − Kevin Q - Comparing this conversation to our previous conversation about the increasing cost of water, he is concerned the City is being too conservative about addressing future energy needs and trends and should not recommend energy uses like natural gas that will decline in availability in the future. The proposed incremental changes need to pay their way and they are not getting us to our goal of emissions-free. He thinks the City should push for tighter buildings. A - The City is planning for adaption but there is some hesitation because the technology isn't there yet. There are some issues with manufacturing not being ready to accept electric appliances to be the future. It should become more mainstream in the next several years. − Kevin - Q - What about remodels? Are these requirements like what are in Boulder County? A - Included as a proposal to the International Energy Conservation Code is a requirement for increased efficiency requirements to homes that add additions. Boulder has different requirements that are more like renewable energy mandates that considerably drive up the price of homes. Fort Collins is considering remodels to have increased efficiency. − Danielle - It would be nice to be able to reduce the public health impacts of fossil fuel emissions through the building code. Affordability of homes in NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR 10/20 /21 – MINUTES Page 7 this community is very important, however, new construction homes are not affordable to many who can't afford them. We need to understand these policies apply to a different audience. Q - Do Colorado plumbing standards include gray water? A - We currently do have gray water standards in the proposed code. However, current City ordinance do not allow the use of gray water. Moving forward, the City needs to first approve the use of gray water, and then we can use the current provisions in the building code to use gray water for toilet flushing. However, that system will be expensive, compared to the amount of water it will save. − Kevin moved and Danielle seconded a motion to support the full set of proposed building code amendments as presented. In addition, the board expresses that these codes are important minimal standards for future progress. Motion passed unanimously 8-0-0 c. 2022 City Manager's Recommended Budget Recommendation d. NRAB 2022 Work Plan 7. OTHER BUSINESS/UPDATES a. 8. BOARD MEMBER AND STAFF REPORTS STAFF • BOARD • • 9. OTHER BUSINESS a. 6-month Calendar review • N/A b. Agenda planning 10. ADJOURNMENT