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HomeMy WebLinkAboutBuilding Review Board - Minutes - 01/30/1997BUILDING REVIEW BOARD REGULAR MEETING January 30, 1997 1:OOPM Council Liaison: Ann Azari II Staff Liaison: Felix Lee Chairperson: Mike Sutton 490-2161(w) 221-5641(h) The regular meeting of the Building Review Board was held on Thursday, January 30, 1997 in the Council Chambers of the Fort Collins Municipal Building. The following members were present: Hansch, Fisher, Brown, Sutton, Meleski, Kreul-Froseth, Cotterman Members absent: none Staff members present: Felix Lee, Building & Zoning Director Elain Radford, Building & Zoning Admin. Support The meeting was called to order by Chairperson Sutton. The minutes of the November 1996 meeting were approved. No meeting was held December 1996. APPEALS: None OTHER BUSINESS: A. E-Star Builder Program Guest panel: Energy Rated Homes of Colorado (ERHC) Jay Luboff and Steve Andrews Home Builders Association of Northern Colorado, Inc. Kimberly Maevers Building & Zoning Director Lee introduced members of the guest panel. Lee stated he has met with Energy Rated Homes of Colorado for several months and, in particular, looking at a method of providing builders with an incentive for energy code compliance. The program has been in place for about two years. It is a voluntary rating system BRB January 30, 1997 Page 2 analogous to the energy score system already in place in Fort Collins. There are still some issues to resolve regarding criteria and methods used. Lee requested that the Board look at the energy program presented and make a recommendation to the Building & Zoning Department. Based on the BRB recommendation, Lee would like to initiate something in conjunction with the E-Star rating program which already provides education, outreach, and incentives for builders statewide. E-Star is a coalition of lenders, utilities, the Home Builders Association of Northern Colorado, and other businesses. Jay Luboff addressed the Board and explained that E-Star Builder Program works with the energy rated homes program of the Colorado Housing and Finance Authority. He stated the E-Star Program received funds a few years ago from the Office of Energy Conservation, out of the Governor's Office, to develop a program in which those builders who build energy efficient homes, and those consumers who either live in or wish to upgrade their energy efficient homes. might get some recognition for this in the mortgage process. He stated that Colorado is the pilot state for "Freddy Mac" and "Fanny Mae" to add energy efficiency into the mortgage process. The pilot developed in Colorado over the past 3-4 years has now expanded to five or six other states. He explained that the idea is for the energy rating, something similar to the MG Square program, be used as a common standard for voluntary compliance with energy codes around the state of Colorado. Luboff continued to explain that E-Star has partnerships with the Home Builders Associations of Colorado, Colorado Association of Realtors, Colorado Appraisal Institute, nine utility partners who serve about 85 percent of the residential customers in this state, The Real Estate Commission, and others - because everyone wants to make this work in Colorado as a voluntary program. He noted there is no statewide energy code in Colorado but the home builders and the realtors are very interested in putting together a market system that allows recognition for energy efficiency, allows appraisers to add value for energy efficient homes when they are sold, and allows consumers a third party analysis of a home - so everyone is not claiming their home is energy efficient without any analysis being done. Hence, the rating system was developed, according to Luboff. Luboff stated that E-Star has certified over 100 raters statewide with the idea to set up a credible system in Colorado that will allow the market to do its job. He went on to say that E-Star rates for energy efficiency, somewhat like an underwriter's laboratory. The difference, stated Luboff, is that a laboratory would take, for example, a refrigerator from the manufacturer, whereas, in this program the rater or evaluator goes to the house. He stated E-Star has a fairly extensive training program for doing this, which fits in exactly E BRB January 30, 1997 Page 3 out the same things and do quality control on the raters. Luboff explained that he facilitates an operations task force on a statewide basis that is co-chaired by members of Colorado mortgage lenders and Realtors, and Doug Swartz from Light & Power in City of Fort Collins. He explained the mission of this group is to make Colorado the leading state in the nation in a market -driven program to support energy efficiency. Luboff further stated that their reason for being at BRB today has to do with the Home Builders Association of Northern Colorado approaching them and asking for another way for builders to meet code requirements and reduce some of the code costs, etc. He offered handouts to the Board to show benefits for qualifying but emphasized that the simplest benefit is that mortgage lenders, like GMAC, are now willing to waive the appraisal fee and change a''/z point, instead of 1 point (up to $1200), origination fee for anyone financing a rated home. Luboff emphasized that because the E-Star Program is a statewide system and network where there are E-Star realtors, lenders, appraisers, affordable housing non -profits, and utilities, everyone is using the same system. He said the primary benefit is for the builders, who have to meet code requirements anyway, can market and pay for the rating with the mortgage. Luboff emphasized that their overall objective is to take the issue of energy efficiency, put it into the market, and make it one of the criteria people choose from and give them a good measurement tool. Kimberly Maevers, Home Builders Association of Northern Colorado, addressed the Board. She explained that she has been involved in conversations with Felix Lee, Jay Luboff, and the Fort Collins mayor since last October. Maevers stated her involvement originated from builders' and developers in trying to comply with the model energy code in Fort Collins. She stated they are looking for ways to develop a program to help builders better understand how to better achieve the goals of the City of Fort Collins in building more energy efficient homes. She pointed out the E-Star Program was brought in to develop HBA's approach and, they have developed a schedule of how they would like to promote the city's program, along with the Energy Score Program, and get more builders educated and involved in this. Maevers said the HBA desires to make this more of a community -wide issue rather than one just at the building department. She stated that Realtors and home buyers need to understand what an energy rated home is and where the value is. She stated that the E-Star energy rated program is extremely comprehensive and it makes sense for Home Builders Association to support this program and cooperate with the City because a required code is already in place. Maevers said a partnership has been formed where all can participate and make this a City of Fort Collins issue that everyone can embrace and promote whether they are a E BRB January 30, 1997 Page 4 home buyer, a home owner, a builder or developer, or a city staff person. Maevers emphasized that she recently met with the mayor who was pleased this partnership is continuing to develop and hasn't given up after four months. She continued the home Builders Association is committed to continue with these issues so better homes will be built and share information of why the home is better and more energy efficient. She concluded, noting this program is one example of how the Home Builders Association can work cooperatively with the local government and achieve the greater goal for everyone. Board member Meleski mentioned that BRB is a judicial body, not an administrative body. He noted Building & Zoning Director Lee had requested a formal vote and recommendation from BRB. Meleski stated his concern: that of BRB looking as if it is approving the existing 1996 Fort Collins energy code. Meleski asked the panel if they have determined how their energy code fits into the Fort Collins energy code. Luboff stated that an analysis has been completed. Meleski expressed concern regarding two issues. He stated the first issue is that the Building & Zoning Department made the statement to City Council that if basement walls are insulated, there is a three year payback period. He stated his concerns believing the Building & Zoning Department is refusing to test energy saved using insulation on basement walls. Meleski explained that a year ago he built a home, did not insulate his basement walls, and simply did not heat the basement which resulted in very minimal heat loss. He stated that by forcing the homeowner to insulate basement walls, whether they heat their basement or not, it is a loss to the homeowner. Meleski continued that his second issue is City Code which states that in order to avoid an extensive analysis of heat loss, one can simply follow the prescribed rules of minimum amounts of insulation in the wall. He said the City Code also sets a limit of twelve percent of the envelope wall area for glazing. He explained that in order to obtain more glazed area, a homeowner may put in 16 foot ceilings instead of 8 foot ceilings, in which case, not only is more heat lost through the walls but there would be twice as much glass. He stated that he will not go along with making a resolution to pass the proposed E-Star program if it is in any way connected with the Fort Collins model energy code. Luboff reiterated that they typically are not involved in code programs and that the intent of the E-Star Program is to establish a voluntary standard for builders, who build in different jurisdictions, eliminating the need to go through different code reviews on different energy codes. He stated the voluntary standard would be everyone's minimum, regardless of jurisdiction, and there would be market benefits for this. �J BRB January 30, 1997 Page 5 Board Chair Sutton stated that if the intent is to cross jurisdictional lines with this program, it would make it easier for builders. He, however, wondered would this be a problem satisfying local jurisdictions. He noted, for example, the needs of Crested Butte or Carbondale would be different than La Junta. Luboff explained that their perspective is more from the secondary mortgage market and this market has identified an 80 rating as what they require on new construction. He said the analysis in Fort Collins shows ratings under "80," and therefore, anything under an "80" rating would meet Fort Collins code. He went on to say that each jurisdiction may have different requirements, but to the extent they can, they hope to get the consumer to say they want an E-Star rating and gain the benefits from it. Luboff also stated the objective is for the appraiser to start looking at the difference between Energy Rated homes and others, and differentiate respective market values. Sutton asked if a homeowner achieves an 80 rating without insulating their basement, is this acceptable. Lee confirmed that this is acceptable and explained that it falls under the option of an entire building systems analysis. Steve Andrews, with ERHC E-Star Program, addressed the Board. He stated that it is possible to not insulate a basement and still achieve an 80 rating, but that might not be cost-effective. He pointed out that for a two-story home there are more options but still might not be cost-effective. He said it can be done by working on all the components that are in such a rating, i.e. improve windows, tightness, heating system and water heating efficiency. Board members further discussed with EHRC staff the pros and cons of basement insulation and components involved in achieving an 80 energy code rating. Sutton asked if E-Star is publicly funded and non-profit. Luboff replied that EHRC is quasi -governmental in that they are a part of the Colorado Housing and Finance Authority (CHAFA) which is a stand alone program created by the legislature for low and moderate income housing. He noted that E-Star is not limited to low income housing on the energy side. He explained that E-Star is not stand alone or non-profit. Luboff said that E- Star was placed in CHAFA because of its ability to do business in the marketplace yet still not be part of the government with its regulations, etc. - to give a neutral third parry view. E BRB January 30, 1997 Page 6 Sutton asked about the "Super -Rating" program. Luboff explained that E-Star has funds to allow builders to submit plans to E-Star, who will do a report on the house, how it rates, and cost-effective ways to get the rating up to an 80. He went on to say that if they desire, the applicant may become an E-Star builder by agreeing to build all their houses to an 80 rating, thereby getting some marketing benefits for this. According to Luboff, the "Super-Rating"can cost up to $1,000, but E-Star has a partnership with the state Home Builders Association to offer trainings and super -ratings around the state. Andrews pointed out that the Super -Rating is a demonstration rating for the builder and the builder's key personnel, insulator, and HVAC contractor are invited. He noted that some additional testing and analysis are done that include some safety features, in particular, i.e., the heating system is looked at as a system, not just a heating plant and the duct work is looked at to see how it is performing in a house on a pressure basis. He said they check to see if it is causing some pressure problems that could lead to safety problems and if the delivery system causes some comfort problems which could lead to "call backs." Andrews stated that on that one time, introductory basis, E-Star's objective is to provide the builder with extra information in that they test the house and duct work for tightness, locate problems, and propose solutions. Meleski asked for a definition of a "100%" rating. Andrews replied that a 100% rating would be from a home that consumes very little purchased energy, apart from the lights and appliances. He stated that on the high side of their rating scale, it is easier to get a fairly high score (94-95%) with a home that has some solar, south facing windows. He indicated that in about 6 months it will be more difficult to get this high score because E-Star will be in compliance with the national standard for all such rating systems. They want to recognize builders that build to that standard and customers who request that standard. Brown asked for clarification on how thorough the rating process is, how it is done, and the cost to the homeowner. Andrews explained that the rater would obtain a set of plans and will have worked with the builder in advance to project a "likely" score, called a "From -Plans Rating," which would be prior to even digging a hole. At this point, Andrews stated they rate the windows, the efficiency of the selected plants (water heater, space heating, etc.), attic walls, foundation insulation, etc., and generate a From -Plans Rating. He explained further, the rater then forwards to the builder the From -Plans Rating and a proposal of options and recommendations. Then, once the home is built, the rater goes on -site and evaluates the home in comparison to what was on the plans, and other things such as building orientation, access to the sun, tightness, and levels of attic BRB January 30, 1997 Page 7 insulation. He noted that a plan may be rated according to whether the rear of the home faces north or south. Finally, all components data are entered into the computer, sent to ERHC, and the official rating sent back to the rater. Andrews stated a builder can use a rolling average of homes, if they have built at least ten homes at the 80 rating or higher, an if a homeowner were to complain, a follow-up test would be made. Board discussed with EHRC staff tests used for rating, testing methods, rating specifications, etc. Meleski asked if the training E-Star offers is optional and whether builders can test on their own and still conform to code requirements without utilizing this program. Lee confirmed this is optional. Maevers, Home Builders Association, clarified that the objective is to create a mechanism for builders to have options to comply with codes and to go beyond through education. She said this program has been adopted throughout the state as something the Home Builders Association wants to make a priority and promote to, not only well educated builders, sub -contractors, and suppliers, but also to the homeowners so that the community knows what the options are and how to achieve the goals of the city. She stated E-Star is extremely good at putting together training programs and educational seminars for the builders, subs, and suppliers - all of whom are responsible for putting together that total package called "the home." Sutton asked the philosophy of E-Star regarding their potential for controlling the marketing by limiting or expanding the number of raters. He also asked if this becomes the standard, how E-Star plans to affect the availability of raters and the cost of the rating. Luboff replied that they will make sure they meet the demand for raters. Currently, he noted, there are three active raters in Fort Collins out of the 5-6 when this program started up. He told the Board that in Colorado Springs there are now 5-6 raters. Brown asked Lee what kind of rating is required to meet the Fort Collins energy code. Lee responded that the 80 rating is very close, but there are still some details to be worked out. Board member Cotterman asked what is the difference between the "Easy -Rater" and the actual energy consumed as shown on the graph handout. Andrews explained that the graph reflects an analysis of an Energy Score, already determined to meet code, to the Easy -Rater showing where the E-Star energy analysis tool compares to the Energy Score analysis tool. BRB January 30, 1997 Page 8 Board member Kreul-Froseth asked about the proposed $75 permit fee rebate if the energy code equivalency is used - which could be between $75 - $250. She also wondered whether this amount was adjustable and based on the cost of the permit. Lee stated this is not adjustable - would be too difficult to administer a floating rate. He noted the amount is based on an estimated average of staff time and overhead, and is an offset for a third party doing the inspection and compliance review. Meleski asked Lee if the rebate will be granted if BRB does not endorse this program. Lee responded that he probably would be. Kreul-Froseth inquired about the cost of an evaluation, if the systematic approach for the rating is used. Lee stated that if an approved third party performs the compliance review and inspections, the $75 is an average amount for the cost. Sutton asked for clarification that Lee has requested BRB to vote on recommending the E-Star Program to the Building Department. Board Discussion: Brown motioned to approve this in light of the energy code already in place, the fact that E-Star is already doing this job for others, and the Home Builders Association supports it. Kreul-Froseth seconded the motion. Meleski stated his concern for the way the present code was adopted by City Council and that he believes the City Council was furnished incorrect information - based on his own testing of his home. He said he was informed by the city attorney that Building & Zoning does not have to go to BRB for approval of ordinances and BRB has something to say if someone objects after the fact. Meleski encouraged BRB to not vote for approval because Building & Zoning does not need the Board's approval. Doug Swartz, City of Fort Collins Light & Power Department, addressed the Board. Swartz stated Light & Power has provided technical support to the residential energy code the past few years and operate the existing energy score home energy rating system that is one of the options BRB January 30, 1997 Page 9 for compliance with the current code. He stated Light & Power is very supportive of this new option coming into place. It is a good opportunity for builders, the state, and the city with potential benefits for all parties and is one more option for builders as a way to comply with the code. He noted the city has been looking at the state rating system for a long time and he has been on advisory bodies related to the state program for ten years. Swartz clarified that what BRB was presented with was a comparison between two different rating systems, however, what they need to care about is the comparison between the model energy code prescriptive requirements and the equivalent score that some number of homes achieve on that scale. He pointed out that on a scale of 1-100 it canbe seen where to peg the equivalency. Swartz said the need is to look more carefully at the results of a particular number of homes built to the model energy code standards and where they fall on a particular rating scale. He encouraged the Board to remember that it takes more than just meeting the score to comply with code. He explained the way the existing energy score system and compliance option works is that the initial rating is from the plans to show compliance score for issuing the permit. He also pointed out the assumptions that went into creating that score need to be documented because one can get a score from different ways and there needs to be a record of what was modeled. He went on to say that some sort of site inspection needs to be done to verify the house was built as planned or, as built, still meets that compliance score. Swartz concluded saying some prescriptive requirements, that aren't modeled with the scoring systems, still need to be met, i.e., insulation details. He continued explaining that the inspection requirements are still being figured out so that the appropriate requirements are met. Sutton asked if BRB is premature in voting on this recommendation, since details still need to be worked out. Lee responded that he is committed to working out the details as they come up and will submit these to BRB as they evolve and how they will be implemented. He explained that if the Board had serious reservations about this program, he would not proceed. Brown stated he feels Lee is requesting the support of the Board and his motion to approve this program still stands. Sutton clarified that the motion is to recommend to the Building Department the approval of the E-Star rating system as an option to meet the energy code requirements of the City of Fort Collins. 0 BRB January 30, 1997 Page 10 VOTE: Yeas: Hansch, Fisher, Brown, Sutton, Kreul-Froseth, Cotterman Nays: Meleski City Plan Technical Team representative, Clark Mapes, gave a thirty minute presentation on the final phase of City Plan and its implementation. Michael Sutton, Chairperson Q�A Felix Lee6lilding Administrator