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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/03/2022 - FIRST READING OF ORDINANCE NO. 057, 2022, APPROPRI Agenda Item 19 Item # 19 Page 1 AGENDA ITEM SUMMARY May 3, 2022 CDNS-Building Code Services STAFF Meaghan Overton, Housing Manager Caryn Champine, Director of PDT Jackie Kozak-Thiel, Chief Sustainability Officer Aaron Guin, Legal SUBJECT First Reading of Ordinance No. 057, 2022, Appropriating Prior Year Reserves in the General Fund to Provide Cost-Sharing Related to Electric Vehicle Charging Infrastructure at Affordable Housing Developments. EXECUTIVE SUMMARY The purpose of this item is to request an off-cycle appropriation from General Fund Reserves in the amount of $238,000 to provide cost-sharing related to Electric Vehicle (EV) charging infrastructure required at Affordable Housing (AH) developments in 2022. Staff estimates that 237 affordable homes current ly in the City’s development review process may apply for building permits during 2022. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION At its regular meeting on April 5, 2022, Council unanimously adopted Ordinance No. 021, 2022, on Second Reading. This Ordinance repealed the 2018 International Building Code and adopted the 2021 International Building Code, with local amendments. The adoption of updated building codes on a regular cadence is in tended to safeguard the public health, safety, and general welfare by regulating structural strength and stability in construction, sanitation, light and ventilation, energy conservation, and property protection from hazards attributed to the built environ ment within the City of Fort Collins. As part of building code adoption, Council also adopted local amendments to the International Building Code. Local amendments establish new requirements for installing EV charging infrastructure (1) for all new development, (2) where a building undergoes a primary or partial change of occupancy or use in which more than 50% of the total building area is changing, or (3) where existing buildings that provide on -site parking undergo a renovation or alteration in which the scope of work is more than 50% of the total building area. Recognizing the unique challenges of building and financing deed -restricted affordable housing, Council considered a range of options for EV charging infrastructure in multi-unit Affordable Housing (AH) developments: • Option 1 - 10% EV-Capable • Option 2 - 10% EV-Capable + 10% EV-Ready (Current CHFA requirement) • Option 3 - 10% EV-Capable + 10% EV-Ready + One EVSE-Installed • Option 4 - 20% EV-Capable + 15% EV-Ready Agenda Item 19 Item # 19 Page 2 After consideration, Council adopted a fifth option for local EV charging infrastructure requirements for AH developments (Option 5) of 20% EV-Capable Spaces, 15% EV-Ready Spaces, and a minimum of one EVSE- Installed Space, which reflects an increase beyond the standards currently se t by the Colorado Housing Finance Authority (“CHFA”)(“Option 2”). The three distinct types of EV parking space are outlined below for reference: • EV-Capable Spaces - Installation of panel space and conduit (“raceway”) to accommodate the future build-out of EV charging with 208/240 V, 40-amp circuits EV Infrastructure. • EV-Ready Spaces - Full circuit installations including 208/240V, 40-amp panel capacity, raceway, wiring, receptacle, and overprotection devices similar to a dryer circuit. • EVSE-Installed Spaces – Type 2 (minimum) charging stations, installed during construction The requested appropriation in this agenda item responds to Council’s direction provided at the April 5, 2022, regular meeting, for an appropriation that would fund the incremental cost between the EV charging infrastructure requirements that were proposed under Option 2, and those that were adopted by Council (Option 5). Calculating Incremental Cost The amount of the requested appropriation was calculated using per -parking-space cost ranges previously presented to Council during its work session on March 8 and at its regular meeting on April 5. EV Charging Infrastructure Cost per Space Type* Low High EVSE-INSTALLED $3,200 $10,550 EV READY $2,800 $4,050 EV CAPABLE $1,400 $2,000 * Note: Cost estimates include electric capacity fees Staff then collected information about AH projects currently in the City’s development review process that feasibly could be ready for building permits in 2022. Using the parking requir ements for each project as required in the Land Use Code and the estimated cost per EV parking space type for both “Option 2” and the actual requirements adopted by Council (Option 5), staff estimates that the total incremental cost between these two is approximately between $145,000 - $238,000 for AH projects in the development review process in 2022. Option 2 Estimated Cost Option 5 Estimated Cost Total Estimated Incremental Cost Project Developer Units Parking spaces Low High Low High Low High Heartside Hill CARE Housing 72 158 $67,200 $96,800 $115,200 $171,750 $48,000 $74,950 PlanetScale living PlanetScale LTD 1 2 $0 $0 $3,200 $10,550 $3,200 $10,550 2908 S Timberline CSU 18 31 $12,600 $18,150 $25,600 $42,800 $13,000 $24,650 Northfield Commons Mercy Housing 84 164 $71,400 $102,850 $119,400 $177,800 $48,000 $74,950 Impala Housing Catalyst 62 108 $46,200 $66,550 $78,800 $119,350 $32,600 $52,800 Total 237 463 $197,400 $284,350 $342,200 $522,250 $144,800 $237,900 Agenda Item 19 Item # 19 Page 3 PROGRAM ADMINISTRATION Staff have consulted with the Utilities, Social Sustainability, and the Planning, Development and Transportation departments about the most effective and efficient administration of a cost -sharing program for EV Charging infrastructure at AH developments (the “EV Infrastructure Credit”). To administer a cost -sharing program, staff proposes a structure like the City’s existing program that provides fee credits for qualifying AH units. Staff proposes that the EV Infrastructure Credit program be administrative in nature and operate pursuant to requirements and regulations established by the City Manager, contingent on the availability of funding appropriated for this purpose. Funding requests that exceed Council’s appropriated funding for this program will require additional Council consideration and appropriation of funds. Staff will review the EV Infrastructure Credit program authorized and implemented by the City Manager pursuant to the Ordinance and consider proposing language to codify the program in the Fort Collins Municipal Code for Council’s consideration in early 2023. Upon application for a building permit, AH developers will be eligible to submit a written request to the City Manager or their designee (i.e., Housing Manager) for an EV Infrastruct ure Credit based on the number and type of EV parking spaces provided. The City Manager, or delegee, will determine eligibility of the project based on whether it meets the City’s definition of Affordable Housing and will calculate the total amount of the credit based on the EV parking infrastructure required. Staff proposes a fixed credit for each EV parking space type based on the cost estimates provided at the March 8 work session. One EVSE -Installed space will be eligible for a credit of up to $10,500, ten percent of EV-Ready spaces would be eligible for a credit of up to $4,000 each, and five percent of EV-Capable spaces would be eligible for a credit of up to $2,000 each. Any EV charging infrastructure installed by the affordable housing project develo per in excess of the adopted 2021 International Building Code EV charging infrastructure requirements will be ineligible for an EV Infrastructure Credit. EV Infrastructure Credits for AH Development Type of Space and % of Total Parking Required Percentage of Spaces Eligible (Difference Between “Option 3” and “Option 5”) Proposed Credit per Space EVSE-INSTALLED (1) 1 EVSE Installed $10,500 EV READY (20%) 10% $4,000 EV CAPABLE (15%) 5% $2,000 Staff propose that this program be administered at the Building Services counter to provide efficient customer service and consistent application of both the existing fee credit program and the proposed EV Infrastructure Credit program. Upon completion of the 2022 “pilot” year of the program, staff pla ns to compare the actual cost of EV charging infrastructure with the credits provided, which will help calibrate the program for future years. Other Considerations Funding beyond 2022: The current request for an off-cycle appropriation will meet the needs of AH development in 2022. Staff is prepared to submit a Budgeting for Outcomes (“BFO”) offer to fund EV cost - sharing for the 2023-2024 budget years. Staff will estimate the maximum budget offer amount for the 2023- 2024 BFO process based on the credit a mounts above and the City’s adopted AH production goals. When data from the 2022 pilot year is available, staff will further calibrate the EV Infrastructure Credit amounts if needed. Changes to the amount of credits provided will require Council approval. Utilities capacity fees and transformer upgrades: Electric capacity fee typical costs are included in the EV charging parking space costs and recommended fee credits described above. Any necessary Utilities -owned transformer changes would be managed per Utilities rules and relevant codes. Because Utilities retains ownership of distribution transformers, the building site charges for such work are only labor with a typical cost of $1,500. This potential charge is eligible to be covered by the fee credit program. Agenda Item 19 Item # 19 Page 4 EV charging and electricity bills: The configuration of the EV charging will determine how Utilities bills customers for EV charging electricity use based on the applicable rate structure. Utilities does not prescribe how a building owner approaches recouping electricity costs for EV charging. The options range from simple monthly or annual fees for typical EV charging use to established EVSE and/or software -based solutions. Utilities is prepared to support commercial building owners to navigate this rapidly evolving landscape. CITY FINANCIAL IMPACTS This request of $238,000 to be appropriated into the General Fund from General Fund Reserves is based on the high end of the range of cost estimate for each parking space type. The total cost of the pr ogram is dependent on how many units request building permits in 2022. The appropriation is not anticipated to negatively impact the financial health of the City. Further, submission of a 2023-2024 budget offer will ensure fiscal responsibility by including this program in the BFO process. BOARD / COMMISSION AND PUBLIC ENGAGEMENT Between First and Second Reading for adoption of the International Building Codes, staff engaged with several groups to gather additional input about EV requirements for afford able housing developments: • Affordable Housing Providers Focus Group - 2/18/2022 • Housing Catalyst - 2/24/2022 and 3/8/2022 • Affordable Housing Board - 3/3/2022 (Attachment 1) • Downtown Development Authority - 3/25/2022 Overall, suggestions from these groups encouraged staff to provide an option for affordable housing that was aligned with the current requirements of the Colorado Housing Finance Authority (CHFA). It also was communicated to staff that requirements above and beyond Option 2 should incl ude a mechanism to offset the additional cost for affordable housing developments. Staff also conducted informal consultation with several affordable housing developers who will likely apply for EV Infrastructure Credits. All supported the process outlined above. ATTACHMENTS 1. Affordable Housing Board Minutes (PDF) 2. Powerpoint Presentation (PDF) AFFORDABLE HOUSING BOARD REGULAR MEETING 3 /3/202 2 – MINUTES - Excerpt Page 1 March 3, 2022, 4:00-6:00pm Remote/Online via Zoom due to COVID-19 DRAFT CALL TO ORDER At 4:02 the meeting was called to order by Tatiana Zentner 1.ROLL CALL •Board Members Present: Tatiana Zentner, John Singleton, Kristin Fritz, Bob Pawlikowski, Seth Forwood and Stefanie Berganini joined in progress. •Board Members Absent: Jennifer Bray •Staff Members Present: ▪Sue Beck-Ferkiss, Staff Liaison – City of Fort Collins ▪Taylor Reynolds, Minutes – City of Fort Collins •Guests Present: ▪Ryan Jones – RCH Jones Consulting ▪Michele Christensen & Traci McGraw – Housing Catalyst *******Excerpt Related to this Resolution Begins Below******* 5.NEW BUSINESS b.Housing Strategic Plan – Sue Beck-Ferkiss •Building Code Update •Sue presented an overview of the building code updates adopted by City Council on first reading February 15, 2022. The updates were based on the 2021 International Building Code and Energy Conservation Code (IBC). At that time, City Council also requested additional information specifically about how electric vehicle (EV) charging requirements would affect affordable housing and City staff provided three alternative options to the IBC code. ATTACHMENT 1 AFFORDABLE HOUSING BOARD REGULAR MEETING 3 /3/202 2 – MINUTES - Excerpt Page 2 • 2021 IBC Reference: 10% EV installed, 20% EV ready, 40% EV capable • Alternative Options for Affordable Housing: • Option 1 – 10% EV Capable • Option 2 – 10% EV Capable + 10% EV Ready • Option 3 – 10% EV Capable + 10% EV Ready + One EVSE Installed • Board members engaged in a thoughtful discussion regarding the upfront costs of installations and higher costs of retrofitting for charging stations in the future at affordable housing developments. • The Affordable Housing Board thanks City Council for considering alternatives to the IBC 2021 EV requirements in order to facilitate the development of more affordable housing units. Providing lower standards for affordable housing projects, which each of the staff options represented, removes a potential barrier to creating more affordable housing. Motion by Stefanie Berganini. Seconded by Seth Forwood. Approved 6-0. First Reading: Appropriating Funds to Provide Cost-Sharing for Electric Vehicle Charging Infrastructure at Affordable Housing Developments 5-3-2022Meaghan Overton, John Phelan, Kirk Longstein 2Adoption Consideration Does Council wish to adopt the Ordinance which allocates $290,000 in prior year reserves for Phase 1 of the Land Use Code (LUC)update,on First Reading? Does Council wish to adopt the Ordinance which allocates $238,000 in prior year reserves to provide cost-sharing related to Electric Vehicle (EV)charging infrastructure required at Affordable Housing (AH)developments in 2022? 3Staff Recommendation Background •Work Session to discuss Electric Vehicle (EV) charging requirements for Affordable Housing on March 8 •Nine ordinances adopted on Second Reading April 5 •Adoption of EV Charging Building Code aligns with Our Climate Future Big Move # 12 Recommendation •Staff recommends adoption of the Ordinance on First Reading and preparation of a Budgeting for Outcomes (BFO) offer to request funding for 2023-2024 4Background -Council Adopted Building Codes •EV Capable –Installation of panel space and conduit only. •EV Ready -Full circuit installation. •EVSE Installed –Installed Level II Charger Key cost considerations: •Building electric components defined by National Electric Code •Utility needs based on submitted building designs 5Background -Council Adopted Building Codes •Council considered a range of options and adopted specific requirements for EV charging infrastructure in multi-unit Affordable Housing (AH) developments: •Option 1 –10% EV Capable •Option 2 –10% EV Capable + 10% EV Ready (Current CHFA requirement) •Option 3 –10% EV Capable + 10% EV Ready + One EVSE Installed •Option 4 –20% EV Capable + 15% EV Ready •Option 5 –20% EV Capable + 15% EV Ready + One EVSE Installed (ADOPTED OPTION) •Council directed staff to prepare an appropriation that would fund the incremental cost between “Option 2” EV requirements and Council’s adopted “Option 5” EV requirements. 6Calculating Incremental Cost •237 affordable units currently in development review process and could feasibly be ready for building permits in 2022 •Total incremental cost for AH projects in development for 2022 is about $145,000-$238,000 EV Charging Infrastructure Cost per Space Type* Low High EVSE- INSTALLED $3,200 $10,550 EV READY $2,800 $4,050 EV CAPABLE $1,400 $2,000 *Note:Cost estimates include electric capacity fees 7Program Structure and Administration EV Infrastructure Credits for AH Development Type of Space and % of Total Parking Required Percentage of Spaces Eligible (Difference Between “Option 2” and “Option 5”) Proposed Credit per Space EVSE-INSTALLED (1)1 EVSE Installed $10,500 EV READY (20%)10% $4,000 EV CAPABLE (15%)5% $2,000 •Staff proposes a program structure like the existing Fee Credit program for affordable housing •Administrative in nature, processed at the building counter •Flat credit based on the number and type of EV charging infrastructure: 8Next Steps If funds are appropriated During 2022 2023-2024 1.Second Reading of Appropriation Ordinance 2.Coordination with Building Department on administration details 3.Funds disbursed into a City-owned account 4.Developers can request EV Infrastructure Credit at building permit 1.“Pilot” of EV Infrastructure Credit program 2.Prepare 2023-2024 budget offer for continued funding 3.Monitor and collect data 1.If funded, continue providing EV Infrastructure Credits 2.When 2022 data is available, evaluate whether adjustments to credit amounts are needed 3.Future Council approval of changes to credit amounts if necessary -1- ORDINANCE NO. 057, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND TO PROVIDE COST-SHARING RELATED TO ELECTRIC VEHICLE CHARGING INFRASTRUCTURE AT AFFORDABLE HOUSING DEVELOPMENTS WHEREAS, at its regular meeting on April 5, 2022, City Council unanimously adopted on second reading Ordinance No. 021, 2022, which repealed the 2018 International Building Code and adopted the 2021 International Building Code, with local amendments; and WHEREAS, the adoption of updated building codes on a regular cadence is intended to safeguard the public health, safety, and general welfare by regulating structural strength and stability in construction, sanitation, light and ventilation, energy conservation, and property protection from hazards attributed to the built environment within the City of Fort Collins; and WHEREAS, as part of the City’s adoption of the International Building Codes, City Council also adopted local amendments to the International Building Code (“IBC”) that establish new requirements for installing Electric Vehicle (“EV”) charging infrastructure (1) for all new development, (2) where a building undergoes a primary or partial change of occupancy or use in which more than 50% of the total building area is changing, or (3) where existing buildings that provide on-site parking undergo a renovation or alteration in which the scope of work is more than 50% of the total building area; and WHEREAS, after consideration of several options, Council adopted EV charging infrastructure requirements for Affordable Housing developments of 20% EV-Capable Spaces, 15% EV-Ready Spaces, and a minimum of one Electric Vehicle Supply Equipment (“EVSE”)- Installed Space (all as defined in the local amendments to the IBC); and WHEREAS, at the April 5, 2022, regular meeting, City Council directed City staff to propose an appropriation for 2022 that would fund the incremental cost between the EV charging infrastructure requirements that are currently established by the Colorado Housing Finance Authority (presented as “Option 2” at the meeting), and the standards that actually were adopted by Council; and WHEREAS, City staff has developed a cost-sharing program structure, similar to the City’s existing program that provides fee credits for qualifying affordable housing units, by which affordable housing developers, at the time of application for a building permit, will be eligible to submit a written request to the City Manager, or their designee, for an EV Infrastructure Credit under the program based on the number and type of EV parking spaces provided (the “EV Infrastructure Credit Program”); and WHEREAS, the EV Infrastructure Credit Program shall be administrative in nature and operate pursuant to the provisions of this Ordinance and any guidelines and regulations established by the City Manager for the EV Infrastructure Credit Program, provided such guidelines and regulations are consistent with the provisions of this Ordinance, and contingent on the availability of funding being appropriated by City Council for this purpose; and -2- WHEREAS, the City Manager, or their designee, will determine the eligibility of the affordable housing project for EV Infrastructure Credits based on whether the project meets the City’s definition of Affordable Housing; and WHEREAS, the credits granted in the EV Infrastructure Credit Program shall be in amounts established by the City Manager but such amounts shall not exceed a maximum flat credit for each EV parking space type as follows: an EVSE-Installed space will be eligible for a credit of up to $10,500; ten percent of EV-Ready spaces will be eligible for a credit of up to $4,000 each; and five percent of EV-Capable spaces will be eligible for a credit of up to $2,000 each; and WHEREAS, any EV charging infrastructure installed by the affordable housing project developer in excess of the adopted 2021 International Building Code EV charging infrastructure requirements will be ineligible for an EV Infrastructure Credit; and WHEREAS, subject to and in accordance with any guidelines and regulations established by the City Manager for the EV Infrastructure Credit Program, EV Infrastructure Credits shall be administered by Building Services department staff at its customer counter to provide efficient customer service and consistent application of both the existing fee credit programs and the proposed EV Infrastructure Credit Program and the total amount of the EV Infrastructure Credit shall be based on the EV parking infrastructure required under the IBC; and WHEREAS, there are five affordable housing projects (consisting of a total of 237 units) currently in the City’s development review process that may apply for building permits during 2022; and WHEREAS, based on this number of affordable housing projects that may apply for a building permit this year, the number of parking spaces that would be required to be constructed for these projects under the City’s Land Use Code, and the per-parking-space cost ranges previously presented to Council during its consideration of the EV charging infrastructure requirements for affordable housing, a total appropriation of $238,000 is needed to fund the EV Infrastructure Credit Program to address the incremental cost between the EV charging infrastructure requirements for affordable housing that were proposed to City Council under Option 2, and those that were adopted by Council on April 5, 2022; and WHEREAS, this appropriation benefits the public health, safety and welfare of the residents of Fort Collins and serves the public purposes of supporting the development of affordable housing and promoting the use of renewable energy, while also supporting the goals of the City’s Electric Vehicle Readiness Roadmap; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and -3- WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the General Fund and will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations, requirements, limitations, standards, and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from prior year reserves in the General Fund the sum of TWO HUNDRED THIRTY-EIGHT THOUSAND DOLLARS ($238,000) to be expended in the General Fund for the EV Infrastructure Credit program. Section 3. That the City Manager shall administer the EV Infrastructure Credit Program in accordance with and subject to the requirements, limitations, and standards set forth in this Ordinance and may adopt guidelines and regulations for the Program that are consistent with such requirements, limitations, and standards as the City Manager determines are necessary for the proper administration of the EV Infrastructure Credit Program. Introduced, considered favorably on first reading, and ordered published this 3rd day of May, A.D. 2022, and to be presented for final passage on the 17th day of May, A.D. 2022. ____________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of May, A.D. 2022. ____________________________________ Mayor ATTEST: _____________________________ City Clerk