HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/17/2022 - SECOND READING OF ORDINANCE NO. 057, 2022, APPROPR Agenda Item 11
Item # 11 Page 1
AGENDA ITEM SUMMARY May 17, 2022
City Council
STAFF
Kirk Longstein, Project Manager
Caryn Champine, Director of PDT
Jackie Kozak-Thiel, Chief Sustainability Officer
Aaron Guin, Legal
SUBJECT
Second 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
This Ordinance, adopted on First Reading on May 3, 2022 by a vote of 6-1 (Nay: Peel), requests 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 currently in the City’s development review process may apply for building
permits during 2022.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, May 3, 2022 (w/o attachments) (PDF)
2. Ordinance No. 057, 2022 (PDF)
Agenda Item 19
Item # 19 Page 1
AGENDA ITEM SUMMARY May 3, 2022
City Council
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 currently 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 This Ordinance repealed the 2018 International Building Code and adopted the 2021 International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 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.
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
ATTACHMENT 1
COPY
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 set 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 requirements 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
PROGRAM ADMINISTRATION
COPY
Agenda Item 19
Item # 19 Page 3
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 Infrastructure 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 developer 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 plans 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 amounts 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.
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 COPY
Agenda Item 19
Item # 19 Page 4
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 program 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 affordable 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 include 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) COPY
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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
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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
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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